2020-SC1-ORG10001-Management

Strategic management

1.        Strategic management

• “The actions and decisions used to develop and implement strategies that will give a competitively greater fit between the business and its environment to realize organizational goals” (Samson, Donnet & Daft 2017, p. 322).
• “Strategic management entails the formulation and implementation of strategies” (Schermerhorn et al. 2014, p. 205).

2.        Synergy

• “The state that occurs when the parts of an organization interact to give a joint effect that exceeds the sum of individual parts when they act alone” (Samson, Donnet & Daft 2017, p. 324).
• “Synergy implies that joined parts are greater than the sum of individual parts. Thus, it is mandatory to manage the organization as a whole” (Daft & Marcic 2014, pp. 40-43).

3.        Value

• “Value refers to the combination of expenses incurred, and benefits received. To create value, a company should devise strategies that utilize its core competencies and achieve synergy” (Samson, Donnet & Daft 2017, p. 324).
• “The commitment of the organization toward the identification, capture, and provision of the maximum value to clients” (Robbins, Bergman & Coulter 2017, p. 364).

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4.        Core competence

• “A business activity done exceptionally well by an organization when compared to competitors” (Samson, Danny & Daft 2014, p. 861).
• “Core competencies are unique strengths that offer a competitive advantage to organizations” (Schermerhorn et al. 2014, p. 537).

5.        Competitive advantage

• “A competitive advantage enables a firm to deal with environmental and market forces better than its rivals” (Schermerhorn et al. 2014, p. 537).
• “What gives the organization a competitive edge over its competitors in the market” (Samson, Donnet & Daft 2017, p. 890).

6.        Strategy Formulation

• “Strategy formulation the stage of strategic management that involves the planning and decision making that lead to the establishment of the organization’s goals and a specific strategic plan” (Samson, Donnet & Daft 2017, p. 332).
• “Strategy formulation is the process of creating strategies” (Schermerhorn et al. 2014, p. 225).

7.        SWOT analysis

• “A tool that analyzes the strengths, weaknesses, opportunities and threats (SWOT) that affect the performance of an organization” (Samson, Donnet & Daft 2017, p. 333).
• “A tool that analyzes the strengths, weaknesses, opportunities and threats of an organization” (Robbins, Bergman & Coulter 2017, p. 286).

8.        Strategy Implementation

• “The strategic management phase where organizational and managerial tools are applied in directing resources toward realizing strategic outcomes” (Samson, Donnet & Daft 2017, p.332).
• “The Strategy implementation process involves putting the identified strategies into action” (Schermerhorn et al. 2014, p. 209)

9.        Corporate-level strategy

• “The strategy level that determines the specific business segment of the organization. It concerns the entire organization and the combination of product lines and business units that constitute it” (Samson, Donnet & Daft 2017, p.326).
• “The strategy of an organization that specifies the businesses that the company runs, or intends to run, and the specific business activities” (Robbins, Bergman & Coulter 2017, p.288)

10. BCG matrix

• “BCG matrix is a concept that the Boston Consulting Group developed to evaluate strategic business units regarding the rate of business growth and market share” (Samson, Donnet & Daft 2017, p. 889).
• “A concept that the Boston Consulting Group developed to evaluate the strategic business units of an organization with regards to its market share and growth rate” (Samson & Daft 2012, p. 611)

11.    Diversification

• “Diversification occurs when an organization acquires or invests in new and diverse business areas” (Schermerhorn et al. 2014, p.216)
• “When an organization grows through mergers and acquisitions in diverse but related sectors” (Robbins, Bergman & Coulter 2017, p.290)

12.    Strategic Business Unit (SBUs)

• “An organization segment having a specific business mission, markets, competitors, and product line that is different but related to other strategic business units in the organization” (Samson, Donnet & Daft 2017, p.898)
• “A strategic business unit (SBU) is a major business segment that is given some autonomy to operate by the parent organization” (Schermerhorn et al. 2014, p. 215)

13.    Business-level strategy

• “The level of strategy that outlines the specific competitive strategies of the business. It relates to individual product lines and business units in the organization” (Samson, Donnet & Daft 2017, p.889)
• “Identifies the specific competitive strategies of the business unit or division that will allow it to position its product or service in the market” (Schermerhorn et al. 2014, p. 215)

14.    Function-level strategy

• “A strategy used by an organization’s different functional departments to support its core competitive strategy” (Robbins, Bergman & Coulter 2017, p.297)
• “The strategy level that specifies how the functional unit of the organization supports the business-level strategy. It concerns all the major departments of the organization” (Samson, Donnet & Daft 2017, p.892)