Leocario, Melvette T.

BSMA - 2B

STRATEGIC MANAGEMENT

1. Risk Capital - Risk capital refers to funds allocated to speculative activity and used for high-risk, high-reward
investments.

2. Shareholder value - Shareholder value is the value delivered to the equity owners of a corporation due to management's
ability to increase sales, earnings, and free cash flow, which leads to an increase in dividends and capital gains for the
shareholders.

3. Profitability - Profitability is ability of a company to use its resources to generate revenues in excess of its expenses. In
other words, this is a company's capability of generating profits from its operations.

4. Profit Growth - Profitable Growth is the combination of profitability and growth, more precisely the combination of
Economic Profitability and Growth of Free cash flows.

5. Competitive Advantage - Competitive advantage is the favorable position an organization seeks in order to be more
profitable than its rivals.

6. Sustained Competitive Advantage - Sustainable competitive advantages are company assets, attributes, or abilities that
are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors.

7. Business Model - business model describes the rationale of how an organization creates, delivers, and captures value,
in economic, social, cultural or other contexts. The process of business model construction and modification is also called
business model innovation and forms a part of business strategy.

8. General Managers - general model is designed to estimate the cost of anything,without making reference to any product
family, even if they require, from some of them, the knowledge of a “reference product” to which the product to be
estimated can be compared.

9. Functional Managers - functional manager is a person who has management authority over an organizational unit—
such as a department—within a business, company, or other organization.

10. R and D - Research and development (R&D) includes activities that companies undertake to innovate and introduce
new products and services.

11. Multi - Divisional Company - Multi-divisional form refers to an organizational structure by which the firm is
separated into several semi autonomous units which are guided and controlled by targets from the center.

12. Business Unit - A logical element or segment of a company (such as accounting, production, marketing) representing
a specific business function, and a definite place on the organizational chart, under the domain of a manager. Also called
department, division, or a functional area.

13. Corporate Mission - Corporate Mission is the whole of the main idea, corporate purpose and drivers behind a
corporation, which sends the company, it's executives and employees along its way in a particular direction.

14. Major Corporate Mission - A mission statement defines what an organization is, why it exists, its reason for being. At
a minimum, your mission statement should define who your primary customers are, identify the products and services
you produce, and describe the geographical location in which you operate.

15. External Competitive Environment - A competitive environment is the dynamic external system in which a business
competes and functions. The more sellers of a similar product or service, the more competitive the environment in which
you compete.
16. Internal operating Environment - The internal environment generally consists of those elements that exist within or
inside the organization such as physical resources, financial resources, human resources, information resources,
technological resources, organization's goodwill, corporate culture and the like.

17. Mission - Mission Statement defines the company's business, its objectives and its approach to reach those objectives.

18. Customer Oriented Approach - The customer-oriented approach is a commercial development approach based on the
strategy that puts the customer at the heart of your business development.

19. Product Orrient Approach - Product orientation is defined as the orientation of the company's sole focus on products
alone. Hence, a product oriented company put in maximum effort on producing quality product and fixing them at the
right price so that consumer differentiates the company's products and purchase it.

20. Vision - A Vision Statement describes the desired future position of the company.

21. Values - value denotes the degree of importance of some thing or action, with the aim of determining what actions are
best to do or what way is best to live, or to describe the significance of different actions.

22. Goal - is an idea of the future or desired result that a person or a group of people envision, plan and commit to
achieve.

23. Functional Level Strategies - Functional level strategies are the actions and goals assigned to various departments that
support your business level strategy and corporate level strategy. These strategies specify the outcomes you want to see
achieved from the daily operations of specific departments (or functions) of your business.

24. Business Level Strategies - Business-Level Strategy theory states that there are essentially three strategies you as an
organization can use to win in the marketplace: cost leadership, focus, or differentiation. Which one you choose with
depend on market conditions and your unique set of core competencies.

25. Global Strategies Address - The concept of global strategic management emerges from a combination of globalization
and its implications on the corporate world. ... The mixed set of economies – Global strategic management requires
companies operating in a mixed set of economies to design a business strategy that encompasses all of them.

26. Corporate Level Strategies - A corporate-level strategy is when a business makes a decision that affects the whole
company. A corporate-level strategy affects a company's finances, management, human resources, and where the products
are sold.