Unit 1

A plan of action to achieve long-term goals by allocating resources and responding to the environment.

The environment in which a business operates, including factors like competitors, customers, and regulations.

The process of examining the business environment to understand opportunities and threats.

A company's ability to outperform its competitors.

Decisions made by a company to shape its long-term direction, often related to core aspects like markets, products, and resources.

The actions that a company takes to implement its chosen strategy.

A company's ability to respond to changes in the environment, adapting to new threats and opportunities.

The rivals that compete with a company for resources, customers, or profitability.

Individuals, groups, or organizations affected by a company's actions.

The long-term roadmap for a company, taking into account a changing environment.

A company's ability to create and use its resources and capabilities to generate profit.

The specific industries and markets a company chooses to compete in.

Decisions made under uncertainty, requiring analysis and assumptions.

Strategic decisions are complex, influenced by many factors constantly changing.

A strategic approach considering the whole company and its various parts working together.

The combined strength of different parts of the company working together effectively.

Examining a company's internal factors to identify its strengths and weaknesses. It helps understand what a company does well and where it needs improvement.

The process of setting clear objectives and developing a plan to achieve them. It involves integrating insights from various departments and aligning strategies with the company's mission and vision.

The act of putting a strategic plan into action. It involves taking concrete steps to implement the chosen strategies and monitoring their progress.

A distinct part of a company that has its own customers, competitors, and mission. It operates independently within the larger organization.

Strategies that define a company's overall direction and growth, including expansion, diversification, and internationalization.

The process of analyzing the external environment to identify opportunities and threats that could impact the company.

The alignment of the elements within the strategy itself, such as the chosen goals, methods, and resources used to achieve them.

A dedicated team of specialists who collect, analyze, and interpret information to inform strategic decisions.

The match between the environment the strategy is designed for and the strategy itself, considering the company's resources, capabilities, and goals.

A high-level executive responsible for guiding the strategic direction of the organization and advising top management.

The process by which a strategy is developed, taking into account internal and external factors, analyzing opportunities and threats, and formulating the plan of action.

The allocation of responsibility for strategy implementation across different levels of the organization, involving line managers and employees.

A company chooses a strategy that doesn't match its resources or abilities.

The alignment between a company's strategy and its internal characteristics, like culture, structure, and people.

A significant change in a company's strategy, involving a shift in direction.

Changes made to a company's internal aspects to support a new strategy.

The study of strategic management emerged in the 1960s.

A model highlighting the three sources of knowledge in strategic management: academics, business practices, and consultants.

Theories and approaches that explain how firms achieve success in a competitive business environment.

A prescriptive approach to strategic management that focuses on how strategies should be formulated based on economic logic. It emphasizes planning and analysis to make rational decisions.

The study of how companies make decisions and manage resources to achieve their goals, taking into account the competitive landscape.

A branch of economics that deals with the relationship between principals (owners) and agents (managers) who act on their behalf. It explores conflicts of interest and incentive alignment.

A theory in economics that analyzes the costs associated with transactions between different parties. It helps understand when firms should perform tasks internally or outsource them.

A field of study that examines how industry structure influences firm behavior and competitive outcomes. It helps understand the factors that shape competition within a specific industry.

A discipline that explores the structure, behavior, and processes of organizations. It helps understand how organizational design, culture, and leadership impact strategic management.