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Flashcards in Business strategy Deck (11):

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


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



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


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


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


Core product

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


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


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


Benefits and limitations of corporate plans

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

- external changes
- needs to be flexible


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


Strategic implementation

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