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Flashcards in Business strategy Deck (11):
1

Business strategy

A long-term plan of action for the whole organisation designed to meet the needs of the markets and to fulfill stakeholder expectations

2

Strategic management

The role of management in setting up long-term goals and implementing cross functional decisions that should enable the firm to reach this goals

3

Tactic

Short-term policy or decision aimed at resolving a particular problem or meeting a specific part of the overall strategy

4

Strategic analysis

The process of conducting research on the business environment within which a firm operates and on the firm itself in order to develop strategies

5

Core competence

An important business capability that gives it a competitive advantage
- provide recognisable benefits to customers
- difficult to copy (patents)
- applicable for products or markets

6

Core product

A Product made from a business's core competencies, but not or final user

7

Strategic choice

Identifying strategic options, evaluating them and then choosing between them
- decision-making
- forecasting future market changes
- evaluating future options
- target setting and benchmarking

8

Corporate plan

A methodical plan containing details of the organisation`s central objectives and the strategies to be followed to achieve them
- overall objectives with time frame
- strategies to achieve objectives
- objectives for key departments

9

Benefits and limitations of corporate plans

Benefits:
- clear focus and sense of purpose
- control and review
- planning = thinking

Limitations:
- external changes
- needs to be flexible

10

Factors of a corporate plan

Internal: Financial resources, operating capacity, managerial skills and experience, staff number and skills, culture of organisation

External: Macro-economic decisions, economic policies, technological changes, competitors actions

11

Strategic implementation

The process of allocating and controlling resources to support the chosen strategies