Key Terms and Concepts in Strategic Management PDF

KEY TERM AND CONCEPTS TO REMEMBER strategic management - includes all the decisions and actions set by the managers and provides a gauge on the performance of a particular organization strategic management process - the step-by-step flow of activities toward the implementation of a strategy to achi...

KEY TERM AND CONCEPTS TO REMEMBER strategic management - includes all the decisions and actions set by the managers and provides a gauge on the performance of a particular organization strategic management process - the step-by-step flow of activities toward the implementation of a strategy to achieve company goals situation analysis - also called environmental scanning. It also provides the information necessary to formulate the company's vision/mission statements. strategy formulation - the development of company strategies strategy implementation - the development of procedures, programs, and activities to put the strategies into practice operational strategies - short-term strategies and are associated with the various operational departments of the company such as human resources, finance, marketing, and production competitive strategies - the techniques in competing in a certain industry corporate strategies - long-term strategies and are involved in providing directions for the organization strategy evaluation - the appraisal of the company's performance globalization - the internationalization of markets and corporations global brands - the world's top brands associated with quality, reasonable price and reflect the manufacturers' social and environmental consciousness electronic age - the period of vast electronic transactions using the Internet organizational adaptation - the ability of the company to be updated on what is in store in all facets of the business environment. · institution theory - proposes that a company adapts to changing conditions by bench- marking and imitating successful companies. strategic choice - explains that an organization not only adapts to a changing environment but also tries to reshape its environment. Power of suppliers - ability of suppliers to control an organization by making their prices higher Power of buyers - ability of the buyers to drive the company's prices down Rivalry of competitors - ability of each company to counter the strategies offered by its strongest competitor Threat of substitutes - the challenge offered by a company with similar features but at lower rates, and can substitute products or services of existing companies Threat of new entrants - the challenge offered by new companies that offer same products or services through product quality, uniqueness, added features, competitive pricing, and the like Competitive intelligence - the art of gathering, analyzing, and distributing vast information coined as intelligence about anything that would help in competing in the market Strategic intelligence - being able to understand the competitors' future prospects and goals Tactical intelligence - a small-scale intelligence and operational in the short run Counter intelligence - knowing how to defend company secrets SWOT analysis - a basic straightforward model in environmental scanning which helps the company in identifying four key elements: strengths, weaknesses, opportunities, and threats Market concentration- the degree by which a small number of companies dominate the market Product differentiation - refers to the degree by which a company is able to distinguish its product or service to other players in the market as valued by consumers Entry barriers - refer to the difficulties and challenges experienced by potential new entrants Atomistic - refers to the structure of the market where there are many small sellers with a low level of interaction to one another Oligopolistic-refers to the structure of the market where there are few large sellers with a high level of interaction to one another Monopolistic-refers to the market with a single player Homogeneous products - refer to the products that are highly similar or identical in features Differentiated products-products differentiated by design, quality, branding, etc. Ease of entry - refers to the point where there are no difficulties in entering the market Moderately difficult - refers to the point where there are barriers but not too difficult for sellers to monopolize the market specifically on pricing Blockaded entry - refers to the point where barriers are too high that potential players cannot enter and present companies monopolize the prices