Strategic Management Overview

The process of adapting a company's actions, plans, and goals to the ever-changing external environment to achieve success and gain a competitive advantage.

Decisions that determine a company's long-term direction and resource allocation, shaping its competitive landscape.

A comprehensive plan that outlines a company's goals, objectives, and actions to achieve those goals in a competitive environment.

A company's core identity, defining its purpose, values, and aspirations. It guides strategic choices and shapes its competitive advantage.

The external forces that can impact a company's decisions and performance, such as economic conditions, industry trends, and competitor actions.

The ability to outperform competitors by offering superior products, services, or value propositions.

Companies that directly vie for resources, customers, or market share. They are a key factor in shaping a company's strategic choices.

The goal of any strategic decision, aiming to enhance the company's performance and competitiveness by achieving sustainable success.

A group of specialists who gather data, analyze it, and suggest strategies to the top management for major decisions.

The alignment between the strategy chosen and the environment, resources, and goals of the company.

The process of ensuring that the various elements of a strategy work together effectively to achieve the desired outcomes.

The group of specialists responsible for advising the top management and board of directors on strategic decisions.

The process of putting a strategy into action. It involves mobilizing resources, assigning responsibilities, and monitoring progress.

The Chief Strategy Officer is responsible for internal consulting and providing advice during strategy formulation. They may also lead the implementation of specific strategies like mergers or acquisitions.

The process of continuously evaluating and adapting the strategy to changing circumstances and ensure its effectiveness.

The internal group of specialists responsible for gathering data, providing analysis, and suggesting strategies to the top management.

A company's long-term plan for success, outlining how it aims to achieve its goals in a competitive market.

A statement that defines the company's overall goal and purpose. It answers the question: 'Why does this company exist?'

A vision describes the company's aspirational future state. It's a picture of what the company wants to achieve in the long run.

Values are the guiding principles that shape a company's culture and behavior. They define what's important to the company and how it interacts with stakeholders.

A strategy that fits the company's context, is distinct from competitors', and is sustainable over time.

A situation where a company fails to adapt to changes in its environment, leading to stagnation and potential decline.

A strategic failure occurs when a company makes a wrong diagnosis of its challenges, leading to ineffective decisions.

A clear and specific direction is essential for focusing efforts and achieving goals.

This approach focuses on analyzing how strategic decisions are made within organizations, highlighting the processes and factors influencing strategy development.

It assumes managers can act rationally, analyze situations comprehensively, and make choices that optimize firm performance based on environmental opportunities and company capabilities.

This approach aims to combine the best insights from both the economic and organizational perspectives, considering both strategy formulation and implementation.

This approach advocates for a thorough process of data collection, alternative generation, and objective assessment to select the most effective strategy.

It highlights the importance of examining the role of rationality in strategic decision-making, acknowledging that not all decisions are perfectly rational.

A strategy that is consciously and intentionally planned by company leaders, often based on detailed analysis and strategic objectives.

Emergent strategy arises spontaneously from the actions and interactions within a company. It emerges organically based on day-to-day decisions and adapting to changing circumstances.

When a company attempts to build strong relationships with influential stakeholders, such as suppliers, customers, or government agencies, to gain advantages beyond normal market transactions.

When the core values and beliefs of an organization deeply influence its actions, decision-making, and overall approach to business, creating a distinctive culture.

The systematic process of analyzing and evaluating various strategic options to determine the most suitable course of action for a firm, considering factors like feasibility, risk, and potential impact on stakeholders.

The process of actively managing how an organization adjusts to new circumstances, challenges, or opportunities. It involves making necessary changes to processes, structures, and behaviors to adapt and thrive.

The ability of an organization to effectively manage and resolve conflicts that may arise among different stakeholders, such as employees, investors, customers, or the community.

The process of making strategic decisions within an organization, influenced by factors like the company's environment, top management's characteristics, and the nature of the decision itself.

A threat posed by competitors that seriously challenges the company's existing position or future success.

The level of uncertainty surrounding the outcomes of a strategic decision, making it more difficult to predict the future.

A holistic view of strategic management considers both deliberate and emergent strategies, recognizing the complex interplay between rational planning and organizational realities.

An approach to strategic management that emphasizes the importance of a company's organizational context, including its culture, leadership, and internal processes.

An approach to strategic management that focuses on rational analysis, using data and logic to identify opportunities and make informed decisions.