Key Terms in
Strategic
Management
Key Terms in 1-2
Strategic
Management
Long-Term Objectives
specific results that an organization seeks
to achieve in pursuing its basic mission
long-term means more than one year
should be challenging, measurable,
consistent, reasonable, and clear
the means by which long-term objectives
will be achieved
may include geographic expansion,
diversification, acquisition, product
development, market penetration,
retrenchment, divestiture, liquidation,
and joint ventures
Key Terms in Strategic 1-11
Management
Annual objectives
short-term milestones that organizations must
achieve to reach long-term objectives
should be measurable, quantitative,
challenging, realistic, consistent, and prioritized
should be established at the corporate,
divisional, and functional levels in a large
organization
Policies
the means by which annual objectives will be
achieved
Competitive Advantage
❖any activity a firm does
especially well compared to
Key Terms in activities done by rival firms,
or
Strategic ❖any resource a firm possesses
Management that rival firms desire.
❖ A firm must strive to achieve
sustained competitive advantage
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Key Terms in Strategic Management
Strategists
❖Individuals most responsible for the success or failure of an
organization
❖Help an organization gather, analyze, and organize information
Vision and Mission Statements
❖A vision statement answers the question “What do we want to
become?”
❖A mission statement answers the question “What is our
business?”
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External Opportunities and Threats
❖ economic, social, cultural,
demographic, environmental,
political, legal, governmental,
technological, and competitive
Key Terms in trends and events that could
significantly benefit or harm an
Strategic organization
Internal Strengths and Internal
Management Weaknesses
❖ an organization’s controllable
activities that are performed
especially well or poorly
❖ determined relative to competitors
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❖ Availability of capital can no longer
be taken for granted.
❖ Consumers expect green
Some operations and products.
❖ Marketing is moving rapidly to the
Opportunities Internet.
and Threats ❖ Commodity food prices are
increasing.
❖ An oversupply of oil is driving oil
and gas prices down.
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Long-Term Objectives
❖specific results that an
organization seeks to achieve in
Key Terms in pursuing its basic mission
Strategic ❖long-term means more than one
year
Management ❖should be challenging,
measurable, consistent,
reasonable, and clear
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Strategies
❖the means by which long-term
objectives will be achieved
Key Terms in ❖may include geographic
expansion, diversification,
Strategic acquisition, product
Management development, market
penetration, retrenchment,
divestiture, liquidation, and joint
ventures
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Key Terms in Strategic Management
Annual objectives
❖short-term milestones that organizations must achieve to reach
long-term objectives
❖should be measurable, quantitative, challenging, realistic,
consistent, and prioritized
❖should be established at the corporate, divisional, and
functional levels in a large organization
Policies
❖the means by which annual objectives will be achieved
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