89%(19)17 out of 19 people found this document helpful
This preview shows page 3 - 5 out of 14 pages.
Strategy Formulation:The process of choosing among different strategies and altering them to best fit the organization's need. Strategic Implementation:The implementation of strategic plan.Strategic Control:Monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed.6.4 DefinitionsCompetitive Intelligence:Gaining information about one's competitors' activities so that one can anticipate their moves and react appropriately.Environmental Scanning: Careful monitoring of an organization's internal and external environments to detect early signs of opportunities and threats that may influence the firm's plans.SWOT Analysis:Also known as a situational analysis, the search for the Strengths, Weaknesses, Opportunities, and Threats affecting the organization:a)S-Strength (Inside Matters)b)W-Weakness (Inside Matters)c)O-Opportunities (Outside Matters)d)T-Threats (Outside Matters)Organizational Strengths: The skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission.Organizational Weaknesses:The drawbacks that hinder an organization in executing strategies in pursuitof its mission.Organizational Opportunities:Environmental factors that the organization may exploit for competitive advantage.Organizational Threats:Environmental factors that hinder an organization's achieving a competitive advantage.Forecast:A vision or projection of the future.Trend Analysis:A hypothetical extension of a past series of events into the future.Contingency Planning:Also known as scenario planning and scenario analysis; the creation of alternativehypothetical but equally likely future condition.Scenario Analysis: Also known as scenario planning and contingency planning; the creation of alternativehypothetical but equally likely future conditions.Benchmarking:A process by which a company compares its performance with that of high-performing organizations
Porter’s Model for Industry: Model proposes that business-level strategies originate in five primary competitive forces in the firm's environment: (1) threats of new entrants, (2) bargaining power of suppliers, (3) bargaining power of buyers, (4) threats of substitute products or services, and (5) rivalry among competitors.6.5 DefinitionsGrowth Strategy:One of three grand strategies, this strategy involves expansion—as in sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served.Stability Strategy:One of three grand strategies, this strategy involves little or no significant change.Defensive Strategy:Also called retrenchment strategy, one of three grand strategies, this strategy involves reduction in the organization's efforts.