Flashcards: Strategic Management Fundamentals — 23 cards

Strategy — definition?

Long-term direction guiding success.

Operational decisions — focus?

Routine tasks, not overall strategy.

Effectiveness — goal?

Choosing the right objectives.

Efficiency — aim?

Optimal resource use.

Competitive advantage — what?

Superior performance over rivals.

Sustainable advantage — duration?

Long-lasting competitive edge.

Operational effectiveness — focus?

Better execution today.

Strategy vs operations — difference?

Long-term direction vs daily execution.

Capabilities — what?

Unique strengths and resources.

Goals — define?

Desired organizational outcomes.

External analysis — purpose?

Identify opportunities and threats.

PESTEL — components?

Political, Economic, Social, Technological, Environmental, Legal.

Internal analysis tools?

RBV and VRIO.

VRIO — tests?

Valuable, Rare, Imitation costly, Organized.

Value chain — purpose?

Identify key activities for value.

Benchmarking — aim?

Compare performance to peers.

SWOT — combines?

Internal strengths/weaknesses with external opportunities/threats.

TOWS matrix — use?

Generate strategic options from SWOT.

Industry analysis tools?

Porter’s Five Forces, PESTEL.

Vertical integration — define?

Expanding control along supply chain.

Outsourcing — purpose?

Delegating activities externally.

Diversification — goal?

Expand scope across markets/products.

Portfolio management — task?

Allocate resources among SBUs.