The Strategic Management Process
This is the first step of the strategic management process, where a company defines its purpose.
What is the Mission Statement
A strategy where an organization expands the number of markets served or products offered.
What is a Growth Strategy?
Michael Porter identified this as an organization’s "edge" over its rivals.
What is Competitive Advantage?
These are an organization’s assets—financial, physical, human, and intangible.
What are Resources?
This term describes a company’s ability to change and adapt its strategies quickly in response to a volatile environment.
What is Strategic Flexibility?
These are the positive internal attributes of an organization in a SWOT analysis.
What are Strengths?
When a company stays in the same business and continues to do what it is currently doing.
What is a Stability Strategy?
A strategy where a firm seeks to be the lowest-cost producer in its industry.
What is Cost Leadership?
A company’s skills and abilities in doing the work activities needed in its business.
What are Capabilities?
This term refers to the "O" and "T" in SWOT, which represent factors outside of the company's control.
What is the External Environment (Opportunities and Threats)?
This strategy is used when an organization is in trouble and needs to address declining performance.
What is a Renewal (or Retrenchment) Strategy?
A strategy where a company offers unique products that are widely valued by customers.
What is Differentiation?
The major value-creating capabilities of an organization.
What are Core Competencies?
After formulating strategies, managers must do this step to put the strategies into action.
What is Implementation?
This tool helps managers plot business units based on market share and growth rate (Stars, Cash Cows, Dogs, Question Marks).
What is the BCG Matrix?
This strategy targets a specific narrow segment or "niche" of the market.
What is a Focus Strategy?
One of Porter's Five Forces; it measures how easy it is for new companies to start competing in the industry.
What is the Threat of New Entrants?
This is the final step of the process to see if the chosen strategies worked.
What is Evaluation?
This specific growth strategy involves a company buying its suppliers (going "backward") or its distributors (going "forward").
What is Vertical Integration?
Porter’s model that analyzes industry attractiveness is known as the Five ________ Model.
What is the Five Forces Model?
One of Porter's Five Forces; it measures how much power customers have to drive prices down.
What is the Bargaining Power of Buyers?