Fo

Front 1

Acceptability

Back 1

expected performance outcomes of a proposed strategy to meet the expectation of the stakeholders

Front 2

Acquisition

Back 2

when one firm takes over the ownership (‘equity’) of another; hence the alternative term ‘takeover’

Front 3

Backward integration

Back 3

develop activities that involve the inputs into a company’s current business

Front 4

Balanced scorecards

Back 4

performance targets set according to a range of perspectives, not only financial

Front 5

Barriers to entry

Back 5

factors that need to be overcome by new entrants if they are to compete inan industry

Front 6

Blue Oceans

Back 6

new market spaces where competition is minimised

Front 7

Boston Consulting Group (BCG) matrix

Back 7

uses market share and market growth criteria to determine the attractiveness and balance of a business portfolio

Front 8

Business case

Back 8

provides the data and argument in support of a particular strategy proposal, e.g. investment in new equipment

Front 9

Business-level strategy

Back 9

the plan of how an individual business should compete in its particular market(s)

Front 10

Business model

Back 10

describes how an organisation manages incomes and costs through the structural arrangement of its activities

Front 11

Buyers

Back 11

the organisation’s immediate customers, not necessarily the ultimate consumers

Front 12

CAGE framework

Back 12

emphasises the importance of cultural, administrative, geographical and economic distance

Front 13

Cash cow

Back 13

a business unit within a portfolio that has a high market share in a mature market

Front 14

Coercion

Back 14

the imposition of change or the issuing of edicts about change

Front 15

Collaboration

Back 15

all those affected by strategic changes are active in setting the change agenda

Front 16

Collaborative

Back 16

advantage the benefits received when a company achieves more by collaborating with other organisations than it would when operating alone

Front 17

Collective strategy

Back 17

how the whole network of an alliance, of which an organisation is a member, competes against rival networks of alliances

Front 18

Complementor (i)

Back 18

customers value your product more when they have another organisation’sproduct than if they have your product alone; (ii) it’s more attractive to suppliers to provideresources to you when they are also supplying another organisation than if they are supplyingyou alone

Front 19

Competences

Back 19

the ways in which an organisation may deploy its assets effectively

Front 20

Competitive advantage

Back 20

how a strategic business unit creates value for its users which is both greater than the costs of supplying them and superior to that of rival SBUs

Front 21

Competitve strategy

Back 21

how a strategic business unit achieves competitive advantage in its domain of activity

Front 22

Configurations

Back 22

the set of organisational design elements that interlink together in order to support the intended strategy

Front 23

Conglomerate (unrelated) diversification

Back 23

diversifying into products or services that are not related to the existing business

Front 24

Control systems

Back 24

the formal and informal ways of monitoring and supporting people within and around an organisation

Front 25

Core competences

Back 25

the linked set of skillls, activities and resources that, together, deliver customer value, differentiate a business from its competitors and, potentially, can be extendedand developed

Front 26

Corporate entrepreneurship

Back 26

refers to radical change in an organisation’s business, driven principally by the organisation’s own capabilities

Front 27

Corporate governance

Back 27

concerned with the structures and systems of control by which managers are held accountable to those who have a legitimate stake in an organisation

Front 28

Corporate-level strategy

Back 28

concerned with the overall scope of an organisation and how value is added to the constituent businesses of the organisation as a whole

Front 29

Corporate social responsibility (CSR)

Back 29

the commitment by organisations to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large

Front 30

Cost-leadership strategy

Back 30

this involves becoming the lowest-cost organisation in a domain of activity

Front 31

Critical success factors (CSF)

Back 31

those factors that are either particularly valued by customersor which provide a significant advantage in terms of costs. [Sometimes called key success factors (KSF)])

Front 32

Cultural systems

Back 32

these aim to standardise norms of behaviour within an organisation in line with particular objectives

Front 33

Cultural web

Back 33

shows the behavioural, physical and symbolic manifestations of a culture

Front 34

Differentiation

Back 34

involves uniqueness in some dimension that is sufficiently valued by customers to allow a price premium

Front 35

Diffusion

Back 35

the process by which innovations spread amongst users

Front 36

Direction

Back 36

the use of personal managerial authority to establish a clear strategy and how change will occur )

Front 37

Direct supervision

Back 37

direct control of strategic decisions by one or a few individuals, typically focused on the effort put into the business by the employees

Front 38

Disruptive innovation

Back 38

this creates substantial growth by offering a new performancetrajectory that, even if initially inferior to the performance of existing technologies, has the potential to become markedly superior

Front 39

Diversification

Back 39

increasing the range of products or markets served by an organisation

Front 40

Dogs

Back 40

business units within a portfolio that have a low share in static or declining markets

Front 41

Dominant logic

Back 41

the set of corporate-level managerial competences applied across the portfolio of businesses

Front 42

Dynamic capabilities

Back 42

an organisation’s ability to renew and re-create its strategic capabilities to meet the needs of changing environments

Front 43

Economies of scope

Back 43

efficiency gains made through applying the organisation’s existing resources or competences to new markets or services

Front 44

Education

Back 44

involves persuading others of the need for, and means of, strategic change

Front 45

Emergent strategy

Back 45

a strategy that develops as a result of a series of decisions, in a pattern that becomes clear over time, rather than as a deliberate result of a ‘grand plan’

Front 46

Entrepreneurial life cycle

Back 46

this progresses through start-up, growth, maturity and exit

Front 47

Exploring Strategy Model

Back 47

this includes understanding the strategic position of an organisation (context); assessing strategic choices for the future (content); and managing strategy in action (process)

Front 48

Feasibility

Back 48

whether a strategy can work in practice

Front 49

First-mover advantage

Back 49

where an organisation is better off than its competitors as a result of being first to market with a new product, process or service

Front 50

Five forces framework

Back 50

see Porter’s five forces framework

Front 51

Focus strategy

Back 51

this targets a narrow segment of domain of activity and tailors its products or services to the needs of that specific segment to the exclusion of others

Front 52

Forcefield analysis

Back 52

this provides an initial view of change problems that need to be tackled by identifying forces for and against change

Front 53

Forward integration

Back 53

developing activities concerned with the output of a company’s current business

Front 54

Functional structure

Back 54

this divides responsibilities according to the organisation’s primary specialist roles such as production, research and sales

Front 55

Game theory

Back 55

this encourages an organisation to consider competitors’ likely moves and the implications of these moves for its own strategy

Front 56

Global–local dilemma

Back 56

the extent to which products and services may be standardised across national boundaries or need to be adapted to meet the requirements of specific national markets

Front 57

Global sourcing

Back 57

purchasing services and components from the most appropriate suppliers around the world, regardless of their location

Front 58

Global strategy

Back 58

this involves high coordination of extensive activities dispersed geographically in many countries around the world

Front 59

Governance chain

Back 59

this shows the roles and relationships of different groups involved in the governance of an organisation

Front 60

Hypercompetition

Back 60

this occurs where frequency, boldness and aggression of competitor interactions accelerate to create a condition of constant disequilibrium and change

Front 61

Hypothesis

Back 61

testing a methodology used particularly in strategy projects for setting priorities in investigating issues and options; widely used by strategy consulting firms and members of strategy project teams

Front 62

Industry

Back 62

a group of firms producing products and services that are essentially the same

Front 63

Inimitable capabilities

Back 63

those capabilities that competitors find difficult to imitate or obtain

Front 64

Innovation

Back 64

the conversion of new knowledge into a new product, process or service and the putting of this new product, process or service into actual use

Front 65

Intended strategy

Back 65

a strategy that is deliberately formulated or planned by managers

Front 66

International strategy

Back 66

a range of options for operating outside an organisation’s country of origin

Front 67

Key drivers for change

Back 67

the environmental factors likely to have a high impact on the success or failure of strategy

Front 68

Leadership

Back 68

the process of influencing an organisation (or group within an organisation) in its efforts towards achieving an aim or goal

Front 69

Learning organisation

Back 69

an organisation that is capable of continual regeneration due to a variety of knowledge, experience and skills within a culture that encourages questioning and challenge

Front 70

Legitimacy

Back 70

this is concerned with meeting the expectations within an organisational field in terms of assumptions, behaviours and strategies

Front 71

Logical incrementalism

Back 71

the development of strategy by experimentation and learning

Front 72

Managing strategy in action

Back 72

this is about how strategies are formed and how they are implemented

Front 73

Market

Back 73

a group of customers for specific products or services that are essentially the same (for example, a particular geographical market)

Front 74

Market development

Back 74

this offers existing products to new markets

Front 75

Market penetration

Back 75

this implies increasing share of the current markets with the current product range

Front 76

Market segment

Back 76

a group of customers who have similar needs that are different from customer needs in other parts of the market

Front 77

Market systems

Back 77

these typically involve some formalised system of ‘contracting’ for resources or inputs from other parts of an organisation and for supplying outputs to other parts of an organisation

Front 78

Matrix structure

Back 78

this combines different structural dimensions simultaneously, for example product divisions and geographical territories or product divisions and functional specialisms

Front 79

McKinsey 7-S framework

Back 79

this highlights the importance of fit between strategy, structure, systems, staff, style, skills and superordinate goals

Front 80

Merger

Back 80

the combination of two previously separate organisations, typically as more or less equal partners

Front 81

Mission statement

Back 81

this aims to provide the employees and stakeholders with clarity about the overriding purpose of the organisation

Front 82

Monopoly

Back 82

formally an industry with just one firm and therefore no competitive rivalry

Front 83

Multidivisional structure

Back 83

this is built up of separate divisions on the basis of products, services or geographical areas

Front 84

Objectives

Back 84

statements of specific outcomes that are to be achieved (often expressed in financial terms)

Front 85

Oligopoly

Back 85

a few firms dominate an industry, with the potential for limited rivalry and great power over buyers and suppliers

Front 86

Open innovation

Back 86

this involves the deliberate import and export of knowledge by an organisation in order to accelerate and enhance its innovation

Front 87

Operational strategies

Back 87

these are concerned with how the components of an organisation effectively deliver the corporate- and business-level strategies in terms of resources, processes and people

Front 88

Organic development

Back 88

this is where a strategy is pursued by building on and developing an organisation’s own capabilities

Front 89

Organisational culture

Back 89

the taken-for-granted assumptions and behaviours that make sense of people’s organisational context

Front 90

Organisational field

Back 90

a community of organisations that interact more frequently with one another than with those outside the field and that have developed a shared meaning system

Front 91

Organisational justice

Back 91

this refers to the perceived fairness of managerial actions, in terms of distribution, procedure and information

Front 92

Organisational knowledge

Back 92

the collective intelligence, specific to an organisation,accumulated through both formal systems and the shared experience of people in that organisation

Front 93

Organisational structures

Back 93

the roles, responsibilities and reporting relationships in organisations

Front 94

Outsourcing

Back 94

activities that were previously carried out internally are subcontracted to external suppliers

Front 95

Haffla

Back 95

Fest när den är som bäst

Front 96

Paradigm

Back 96

the set of assumptions held in common and taken for granted in an organisation

Front 97

Parental developer

Back 97

an organisation that seeks to use its own central capabilities to add value to its businesses

Front 98

Participation

Back 98

elements of the change process are delegated by a strategic leader, who still retains authority over, and coordinates, the processes of change

Front 99

Path

Back 99

dependency where early events and decisions establish ‘policy paths’ that have lasting effects on subsequent events and decisions

Front 100

Perfect competition

Back 100

this exists where barriers to entry are low, there are many equal rivals each with very similar products, and information about competitors is freely available

Front 101

Performance targets

Back 101

these focus on the outputs of an organisation (or part of an organisation), such as product quality, revenues or profits

Front 102

PESTEL framework

Back 102

this categorises environmental influences into six main types: political, economic, social, technological, environmental and legal

Front 103

Planning systems

Back 103

these plan and control the allocation of resources and monitor their utilisation

Front 104

Platform leadership

Back 104

this refers to how large firms consciously nurture independent companies through successive waves of innovation around their basic technological ‘platform’

Front 105

Political view of strategy development

Back 105

stategies develop as the outcome of bargaining and negotiation among powerful interest groups (or stakeholders)

Front 106

Porter’s Diamond

Back 106

this suggests that locational advantages may stem from local factor conditions; local demand conditions; local related and supporting industries; and from local firm strategy structure and rivalry

Front 107

Porter’s five forces

Back 107

framework this helps identify the attractiveness of an industry in terms of five competitive forces: the threat of entry; the threat of substitutes; the power of buyers; the power of suppliers; and the extent of rivalry between competitors

Front 108

Portfolio manager

Back 108

he or she operates as an active investor in a way that shareholders in the stock market are either too dispersed or too inexpert to be able to do so

Front 109

Power

Back 109

the ability of individuals or groups to persuade, induce or coerce others into following certain courses of action

Front 110

Project-based structure

Back 110

teams are created, undertake their work (e.g. internal or external contracts) and are then dissolved

Front 111

Problem child

Back 111

see Question mark

Front 112

Product development

Back 112

organisations deliver modified or new products, or services, to existing markets

Front 113

Profit

Back 113

pools the different levels of profit available at different parts of the value network

Front 114

Question mark

Back 114

a business unit within a portfolio that is in a growing market but does not yet have high market share (also called ‘problem child’)

Front 115

Rare capabilities

Back 115

those capabilities that are possessed uniquely by one organisation or by a few

Front 116

Recipe

Back 116

a set of assumptions, norms and routines held in common within an organisational field about the appropriate purposes and strategies of organisational field members

Front 117

Related diversification

Back 117

diversifying into products or services that are related to the existing business

Front 118

Resource-based view (RBV) of strategy

Back 118

this states that the competitive advantage and superior performance of an organisation is explained by the distinctiveness of its capabilities

Front 119

Resources

Back 119

assets possessed by an organisation, or that it can call upon (e.g. from partners or suppliers)

Front 120

Returns

Back 120

the financial benefits that stakeholders are expected to receive from a strategy

Front 121

Risk

Back 121

the extent to which the outcomes of a strategy can be predicted

Front 122

Rituals

Back 122

particular activities or special events that emphasise, highlight or reinforce what is important in the culture

Front 123

Rivals

Back 123

organisations with similar products and services aimed at the same customer group (NB not the same as substitutes)

Front 124

Routines

Back 124

‘the way we do things around here’ on a day-to-day basis

Front 125

Scope

Back 125

indicates how far an organisation should be diversified in terms of products and markets

Front 126

S-curve

Back 126

the shape of the curve reflects a process of initial slow adoption of an innovation, followed by a rapid acceleration in diffusion, leading to a plateau representing the limit to demand

Front 127

Situational leadership

Back 127

successful leaders are able to adjust their style of leadership to the context they face

Front 128

Social entrepreneurs

Back 128

individuals and groups who create independent organisations to mobilise ideas and resources to address social problems, typically earning revenues but on a not-for-profit basis

Front 129

Staged international expansion model

Back 129

this proposes a sequential process whereby companies gradually increase their commitment to newly entered markets as they build market knowledge and capabilities

Front 130

Stakeholder mapping

Back 130

this identifies stakeholder expectations and power, and helps in the understanding of political priorities

Front 131

Stakeholders

Back 131

those individuals or groups that depend on an organisation to fulfil their own goals and on whom, in turn, the organisation depends

Front 132

Star

Back 132

a business unit within a portfolio that has a high market share in a growing market

Front 133

Statements of corporate values

Back 133

these communicate the underlying and enduring core ‘principles’ that guide an organisation’s strategy and define the way that the organisation should operate

Front 134

Strategic alliance

Back 134

where two or more organisations share resources and activities to pursue a strategy

Front 135

Strategic business unit (SBU)

Back 135

this supplies goods or services for a distinct domain of activity

Front 136

Strategic capabilities

Back 136

the capabilities of an organisation that contribute to its long-term survival or competitive advantage

Front 137

Strategic choices

Back 137

these involve the options for strategy in terms of both the directions in strategy might move and the methods by which strategy might be pursued

Front 138

Strategic customer

Back 138

the person to whom the strategy is primarily addressed because they have the most influence over which goods or services are purchased

Front 139

Strategic drift

Back 139

the tendency for strategies to develop incrementally on the basis of historical and cultural influences, but fail to keep pace with a changing environment

Front 140

Strategic groups

Back 140

organisations within an industry or sector with similar strategic characteristics, following similar strategies or competing on similar bases

Front 141

Strategic issue-selling

Back 141

the process of gaining attention and support of top management and other important stakeholders for strategic issues

Front 142

Strategic lock-in

Back 142

this is where users become dependent on a supplier and are unable to use another supplier without substantial switching costs

Front 143

Strategic plan

Back 143

this provides the data and argument in support of a strategy for the whole organisation

Front 144

Strategic planners

Back 144

(also known as strategy directors or corporate managers): managers with a formal responsibility for coordinating the strategy process

Front 145

Strategic planning

Back 145

systemised, step-by-step procedures to develop an organisation’s strategy

Front 146

Strategic position

Back 146

this is concerned with the impact on strategy of the external environment, the organisation’s strategic capability (resources and competences), the organisation’s goals and the organisation’s culture

Front 147

Strategy

Back 147

the long-term direction of an organisation

Front 148

Strategy as design

Back 148

this views strategy development as a logical process of analysis and evaluation

Front 149

Strategy as discourse

Back 149

the view that the language is important as a means by which managers communicate and explain and change strategy, but by which they also gain influence and power and establish their legitimacy and identity

Front 150

Strategy as experience

Back 150

this views strategy development as the outcome of people’s (not least managers) taken-for-granted assumptions and ways of doing things

Front 151

Strategy as variety

Back 151

this is the view that strategy bubbles up from new ideas arising from the variety of people in and around organisations

Front 152

Strategy canvas

Back 152

this compares competitors according to their performance on key success factors in order to develop strategies based on creating new market spaces

Front 153

Strategy lenses

Back 153

ways of looking at strategy issues differently in order to generate many insights

Front 154

Strategy maps

Back 154

these link different performance targets into a mutually supportive causal chain supporting strategic objectives

Front 155

Strategy projects

Back 155

these involve teams of people assigned to work on particular strategic issues over a defined period of time

Front 156

Strategy statements

Back 156

these should have three main themes: the fundamental goals that the organisation seeks, which typically draw on the organisation’s stated mission, vision and objectives; the scope or domain of the organisation’s activities; and the particular advantages or capabilities it has to deliver all of these

Front 157

Strategy workshops

Back 157

(also called strategy away-days or off-sites): these involve groups of executives working intensively for one or two days, often away from the office, on organisational strategy

Front 158

Structures

Back 158

these give people formally defined roles, responsibilities and lines of reporting with regard to strategy

Front 159

Substitutes

Back 159

products or services that offer a similar benefit to an industry’s products or services but by a different process

Front 160

Suitability

Back 160

assessing which proposed strategies address the key opportunities and restraints an organisation faces

Front 161

Suppliers

Back 161

those who supply the organisation with what it needs to produce the product or service

Front 162

SWOT

Back 162

the strengths, weaknesses, opportunities and threats likely to impact on strategy development

Front 163

Symbols

Back 163

objects, events, acts or people that convey, maintain or create meaning over and above their functional purpose

Front 164

Synergy

Back 164

the benefits gained where activities or assets complement each other so that their combined effect is greater that the sum of parts

Front 165

Synergy manager

Back 165

a corporate parent seeking to enhance value for business units by managing synergies across business units

Front 166

Systems

Back 166

these support and control people as they carry out structurally defined roles and responsibilities

Front 167

Three horizons framework

Back 167

this suggests that every organization should think of itself as comprising three types of business or activity, defined by their ‘horizons’ in terms of years

Front 168

Threshold capabilities

Back 168

those capabilities that are needed for an organisation to meet the necessary requirements to compete in a given market and achieve parity with competitors in that market

Front 169

Tipping point

Back 169

this is here demand for a product or service suddenly takes off, with explosive growth

Front 170

Transnational structure

Back 170

combines local responsiveness with high global coordination

Front 171

Turnaround strategy

Back 171

here the emphasis is on speed of change and rapid cost reduction and/or revenue generation

Front 172

Value strategic capabilities

Back 172

are of value when they provide potential competitive advantage in a market at a cost that allows an organisation to realise acceptable levels of return

Front 173

Value chain

Back 173

the categories of activities within an organisation which, together, create a product or a service

Front 174

Value curves

Back 174

a graphic depiction of how customers perceive competitors’ relative performance across the critical success factors

Front 175

Value innovation

Back 175

the creation of new market space by excelling on established critical success factors on which competitors are performing badly and/or by creating new critical success factors representing previously unrecognised customer wants

Front 176

Value net

Back 176

a map of organisations in a business environment demonstrating opportunities for value-creating cooperation as well as competition

Front 177

Value network

Back 177

inter-organisational links and relationships that are necessary to create a product or service

Front 178

Vertical integration

Back 178

entering into activities where the organisation is its own supplier or customer

Front 179

Vision statement

Back 179

concerned with the desired future state of the organisation

Front 180

Yip’s globalisation framework

Back 180

this sees international strategy potential as determined by market drivers, cost drivers, government drivers and competitive drivers