Management Chapter 4

Front 1

Strategic Planning

Back 1

The process by which an organization makes decisions and takes actions that affect its long-run performance.

Strategic Plan: the output of strategic planning.

Front 2

Competitive Advantage

Back 2

Central concept of strategic planning.

Sustained only if an organization continues to out innovate competitors.

Front 3

Four Stages of Strategic Management/Strategic Planning Process

Back 3

Strategic Analysis
Strategy Formula
Strategy Implementation
Strategic Evaluation & Control

Front 4

Strategic Management

Back 4

Overall, long-run management.

Front 5

Strategic Planning

Back 5

The process of making plans and decisions that are focused on long-run performance.

Front 6

Strategic Plan

Back 6

A comprehensive plan that provides overall direction for the organization.

Front 7

SWOT Analysis

Back 7

The combined internal and external strategic analysis.

Strengths
Weaknesses
Opportunities
Threats

Front 8

Assessing the Mission of an Organization

Back 8

Mission: Should reflect the fundamental reasons for an organization's existence

Every mission statement should describe three primary aspects of an organization:

1. The Organization's primary products or services.
2. The organization's primary target markets.
3. The organization's overall strategy for ensuring long-term success.

Front 9

External Analysis

Back 9

To identify aspects of the external environment that represent either an opportunity for or a threat to the organization.

Opportunities: environmental trends on which the organization can capitalize.

Threats: Conditions that jeopardize the organization's ability to prosper and its competitive position.

Front 10

Evaluating Competitive Environment

Back 10

Five Forces Model (Michael Porter) - A widely used tool for evaluation of external factors in the external environment.

Rivalry among competitors
Bargaining power of customers
Threat of substitute products or services
Bargaining power of suppliers
The threat of new entrants

Front 11

Internal Analysis


Distinctive Competencies

Back 11

To identify the assets, resources, skills, and process that represent either strengths or weaknesses for the organization.

Strengths: represent potential competitive advantages or distinctive competencies.

Distinctive Competencies: a unique skill that an organization can use to accomplish something better than a competitor.

Weaknesses: Areas that are in need of improvement.

Front 12

Setting Strategic Goals

Back 12

very broad statements of the results that an organization wishes to achieve in the long run

SMART goals are: Specific...Measurable...Achievable...Results-oriented...Time line.