Key Terms in Strategic Management

Topics: Strategic management, Management, Strategic planning Pages: 3 (465 words) Published: August 21, 2013
Key Terms in Strategic Management
Competitive Advantage
* Anything that a firm does especially well compared to rival firms.

* A firm must strive to achieve competitive advantage by: 1) Continually adapting to changes in external trends and events and internal capabilities, competencies and resources. 2) Effectively formulating, implementing and evaluating strategies that capitalize on those factors. Strategists

* Usually found in high levels of management (CEO)
* Help organization gather, analyze, and organize information * Track industry and competitive trends
* Develop forecasting model
* Evaluate corporate and divisional performance
Vision and Mission
Vision
* Answers the question “What do we want to become”
Example: “Happiest customers and employees” – Globe Telecom Mission
* A mission statement identifies the scope of a firm’s operations in product and market terms. It answers the question “What is our business?”. Example: “Transform the lives of people, businesses and communities through innovative solutions” – Globe Telecom

External Opportunities and Threats
* Largely beyond the control of a single organization.
* Significantly benefit or harm the organization in the future. * A basic principle of Strategic Management is that firms should formulate strategies that take advantage of external opportunities and to avoid or reduce the impact of external threats. * Identify, monitor and evaluate the external opportunities and threats.

* Environmental Scanning
* Is the process of conducting research and gathering and assimilating external information.

Internal Strengths and Weaknesses
* Organization’s controllable activities that are performed especially well or poorly. * Strengths and weaknesses are determined relative to competitors and relative to the firm’s objectives. * Organizations strive to pursue strategies that capitalize on strengths and...
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