Strategic Management Glossary

This is a comprehensive curated list of Strategic Management Glossary for the enefit of management students, professionals and business bloggers. A Action PlanThe action plan lists the specific actions that must be taken, by whom and by when in order to achieve an overall goal or implement a strategy. Some people include the costs of each action in the action plans, resulting in budget information being included in the action plans, as well. Action plans together are sometimes referred to as the Implementation Plan. AcquisitionWhen one company, the acquirer, purchases and absorbs the operations of another, the acquired. Alignment model of strategic planningFocuses especially on aligning internal operations to most effectively and efficiently work toward the mission of the organization. Activity Ratios Inventory turnover and average collection period measure how effectively a firm is using its resources. Advantage A way to evaluate strategies; to determine if a particular strategy creates or extends a firm’s competitive superiority in a selected area of activity. Aggressive Quadrant In a SPACE matrix analysis, when the firm’s directional vector points in the upper-right quadrant, the firm should pursue aggressive strategies. Annual Objectives Short-term milestones that organizations must achieve Autonomy Whether an individual or team of individuals within an organization has the freedom to develop an entrepreneurial idea and then see it through to completion. B Balanced ScorecardA framework for categorising your strategy into four interdependent balanced areas- financial, customer, internal business process, and employee learning & growth. Baseline Base level of previous or current performance that can be used to set improvement goals and provide a basis for assessing future progress. Bench marking A process of compiling and comparing data on business performance of your organization with that of competitors or industry averages to understand where you sit in comparison, identify best practices, and measure progress. Budget A description of the monetary amount that will be allocated to a given project or action. Business Plan A formal guide outlining your business goals and plans to achieve the goals. It may also include background information on the organisation attempting to achieve these goals. Board of Directors A Board is the group of people who are legally charged to oversee the operations of a corporation, whether for-profit or nonprofit. Board Insiders Members of the board of directors that are generally employed inside of the organization. Board Outsiders Members of the board of directors that are generally employed outside of the organization. Buy-in Obtaining agreement from key stakeholders that the proposed plan is acceptable. Business Model Canvas The Business Model Canvas is a strategic management and lean startup template for developing new or documenting existing business models. It is a visual chart with elements describing a firm’s or product’s value proposition, infrastructure, customers, and finances. Backward Vertical Integration Moving back along the value chain and entering a supplier’s business. Behavioral Control Focuses on controlling the actions of individuals through rules and procedures. Best-Cost A strategy where the firm attempts to offer a hybrid of both lower cost and differentiated products or services, combining the two basic strategies. Blue Ocean Strategy Creating a new, untapped market rather than competing with rivals in an existing market. Broad Cost Leadership A strategy that offers the lowest price in the market for that product or service. Broad Differentiation A strategy that offers something unique that differentiates their product or service from others. C Capacity Building Capacity building is the process of creating, improving and retaining core skills, knowledge and capabilities of an organization’s people and processes. Capital Capital refers to the assets that are owned by an entity and are available for use. Capital is usually described in terms of money,...