BCG matrix A method of evaluating businesses relative to the growth rate of their market and the organization's share of the market

business-level strategy The set of strategic alternatives from which an organization chooses as it conducts business in a particular industry or market

contingency planning The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate

corporate-level strategy The set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets

differentiation strategy A strategy in which an organization seeks to distinguish itself from competitors through the quality of its products or services

distinctive competence An organizational strength possessed by only a small number of competing firms

diversification The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another

effective strategy A strategy that promotes a superior alignment between the organization and its environment and the achievement of strategic goals

focus strategy A strategy in which an organization concentrates on a specific regional market, product line, or group of buyers

GE Business Screen A method of evaluating businesses along two dimensions: (1) industry attractiveness and (2) competitive position; in general, the more attractive the industry and the more competitive the position, the more an organization should invest in a business

mission A statement of an organization's fundamental purpose

operational goal A goal set by and for lower-level managers of the organization

operational plan Focuses on carrying out tactical plans to achieve operational goals

organizational opportunity An area in the environment that, if exploited, may generate high performance

organizational strength A skill or capability that enables an organization to conceive of and implement its strategies

organizational threat An area in the environment that increases the difficulty of an organization’s achieving high performance

organizational weakness A skill or capability that does not enable an organization to choose and implement strategies that support its mission

overall cost leadership strategy A strategy in which an organization attempts to gain a competitive advantage by reducing its costs below the costs of competing firms

policy A standing plan that specifies the organization's general response to a designated problem or situation

portfolio management technique A method that diversified organizations use to determine which businesses to engage in and how to manage these businesses to maximize corporate performance

product life cycle A model that portrays how sales volume for products changes over the life of products

program A single-use plan for a large set of activities

project A single-use plan of less scope and complexity than a program

related diversification A strategy in which an organization operates in several businesses that are somehow linked with one another

resource deployment How an organization distributes its resources across the areas in which it competes

rules and regulations Describe exactly how specific activities are to be carried out

scope When applied to strategy, it specifies the range of markets in which an organization will compete

single-product strategy A strategy in which an organization manufactures just one product or service and sells it in a single geographic market

single-use plan Developed to carry out a course of action that is not likely to be repeated in the future

standard operating procedure (SOP) A standing plan that outlines the steps to be followed in a particular circumstance

standing plan Developed for activities that recur regularly over a period of time

strategic business unit (SBU) A single business or set of businesses within a larger organization

strategic goal A goal set by and for top management of the organization

strategic management A comprehensive and ongoing management process aimed at formulating and implementing effective strategies; a way of approaching business opportunities and challenges

strategic plan A general plan outlining decisions of resource allocation, priorities, and action steps necessary to reach strategic goals

strategy A comprehensive plan for accomplishing an organization's goals

strategy formulation The set of processes involved in creating or determining the strategies of the organization; focuses on the content of strategies

strategy implementation The methods by which strategies are operationalized or executed within the organization; focuses on the processes through which strategies are achieved

SWOT An acronym that stands for strengths, weaknesses, opportunities, and threats

synergy Exists among a set of businesses when their economic value together is greater than the sum of their economic values separately

tactical goal A goal set by and for middle managers of the organization

tactical plan A plan aimed at achieving tactical goals and developed to implement parts of a strategic plan

tactical plan A plan aimed at achieving tactical goals which is developed to implement parts of a strategic plan

unrelated diversification A strategy in which an organization operates in several businesses that are not related to one another