Strategic Management

4/5/21

Prepared by:

Dr. Fershie D. Yap

College of Accountancy and Business Administration
Key Terms in Strategic Management

• Competitive advantage
• Strategists
• Vision and mission statements
• External opportunities and threats
• Internal strengths and weaknesses
• Long-term objective
• Strategies
• Annual objectives
• Policies
Key Terms in Strategic Management

• Competitive Advantage
• Strategic Management is Gaining and Maintaining Competitive
Advantage
- Anything that a firm does especially well compared to rival
firms
Key Terms in Strategic Management

• Competitive Advantage
• Achieving Sustained Competitive Advantage
- Continually adapting to changes in external trends and
events and internal capabilities, competencies, and resources
- Effectively formulating, implementing, and evaluating
strategies that capitalize on those factors
Key Terms in Strategic Management

• Strategists
- Most responsible for success or failure of an organization
- Various job titles:
• Chief executive officer
• President
• Owner
• Chair of the Board
• Executive Director
• Entrepreneur
Key Terms in Strategic Management

• Vision and Mission Statements

• Vision Statement
- What do we want to become?

• Mission Statement
- What is our business?
Key Terms in Strategic Management
• External Opportunities and Threats
- Significantly benefit or harm the organization in the future
- Largely beyond the control of a single organization
Key Terms in Strategic Management
• External Opportunities and Threats
- Include the following trends:
- Economic
- Social
- Cultural
- Demographic/Environmental
- Political, Legal, Government’
- Technological
- competitors
Key Terms in Strategic Management
• External Opportunities and Threats
- Basic Tenet of Strategic Management

- Industry Analysis – process of conducting research and gathering

and assimilating external information
Key Terms in Strategic Management

• Internal Strengths and Weaknesses

- Controllable activities performed especially well or poorly
- Determined relative to competitors
Key Terms in Strategic Management

• Internal Strengths and Weaknesses

- Typically located in functional areas of the firm
• Management
• Marketing
• Finance/Accounting
• Production/Operations
• Research & Development
• Management Information Systems
Key Terms in Strategic Management

• Internal Strengths and Weaknesses

- Assessing the Internal Environment
Key Terms in Strategic Management

• Long-term Objective
- Specific results that an organization seeks to achieve in
pursuing its basic mission
- Mission-driven pursuit of specific results ,ore than one-year
out
Key Terms in Strategic Management

• Long-term Objective
- Essential for ensuring the firm’s success
• Provide direction
• Aid in evaluation
• Create synergy
• Reveal priorities
• Focus coordination
• Provide basis for planning, organizing, motivating, and controlling
Key Terms in Strategic Management
• Strategies
- Means by which long-term objectives are achieved
- Includes:
Geographic expansion
Diversification
Acquisition
Product development
Market penetration
Retrenchment
Divestiture
Liquidation
Joint venture
Key Terms in Strategic Management

• Annual Objectives
- Short-term milestones that firms must achieve to reach long
term objectives
Key Terms in Strategic Management

• Policies
- Means by which annual objectives will be achieved