Chap glossary for Certo's Modern Management, 9ed.

1
Operating environment
Business portfolio analysis
Organizational mission
Commitment principle
Retrenchment
Cost leadership
Social values
Critical question analysis
Stability
Demographics
Strategic business unit
Differentiation
Strategic control
Divestiture
Strategic planning
Economics
Strategy
Environmental analysis
Strategy formulation
Focus
Strategy implementation
General environment
Strategy management
Growth
Suppliers
Internal environment
SWOT analysis
Tactical planning
Mission statement
2
Business portfolio analysis is the development of
business-related strategy based primarily on the
market share of businesses and the growth of
markets in which businesses exist.
3
The commitment principle is a management
guideline that advises managers to commit funds
for planning only if they can anticipate, in the
foreseeable future, a return on planning expenses
as a result of the long-range planning analysis.
4
Cost leadership is a strategy that focuses on
making an organization more competitive by
producing products more cheaply than competitors
can.
5
Critical question analysis is a strategy
development tool that consists of answering basic
questions about the present purposes and
objectives of the organization, its present
direction and environment, and actions that can
be taken to achieve organizational objectives in
the future.
6
Demographics are the statistical characteristics
of a population. Organizational strategy should
reflect demographics.
7
Differentiation is a strategy that focuses on
making an organization more competitive by
developing a product or products that customers
perceive as being different from products offered
by competitors.
8
Divestiture is a strategy adopted to eliminate a
strategic business unit that is not generating a
satisfactory amount of business and has little
hope of doing so in the future.
9
Economics is the science that focuses on
understanding how people of a particular
community or nation produce, distribute, and use
various goods and services.
10
Environmental analysis is the study of the
organizational environment to pinpoint
environmental factors that can significantly
influence organizational operations.
11
Focus is a strategy that emphasizes making an
organization more competitive by targeting a
particular customer.
12
The general environment is the level of an
organizations external environment that contains
components normally having broad long-term
implications for managing the organization its
components are economic, social, political,
legal, and technological.
13
Growth is a strategy adopted by management to
increase the amount of business that a strategic
business unit is currently generating.
14
The internal environment is the level of an
organizations environment that exists inside the
organization and normally has immediate and
specific implications for managing the
organization.
15
A mission statement is a written document
developed by management, normally based on input
by managers as well as nonmanagers, that
describes and explains the organizations mission.
16
The operating environment is the level of the
organizations external environment that contains
components normally having relatively specific
and immediate implications for managing the
organization.
17
The organizational mission is the purpose for
which, or the reason why, an organization exists.
18
Retrenchment is a strategy adopted by management
to strengthen or protect the amount of business a
strategic business unit is currently generating.
19
Social values are the relative degrees of worth
society places on the manner in which it exists
and functions.
20
Stability is a strategy adopted by management to
maintain or slightly improve the amount of
business a strategic business unit is generating.
21
A strategic business unit (SBU) is, in business
portfolio analysis, a significant organizational
segment that is analyzed to develop
organizational strategy aimed at generating
future business or revenue. SBUs vary in form,
but all are a single business (or collection of
businesses), have their own competitors and a
manager accountable for operations, and can be
independently planned for.
22
Strategic control, the last step of the strategy
management process, consists of monitoring and
evaluating the strategy management process as a
whole to ensure that it is operating properly.
23
Strategic planning is long-range planning that
focuses on the organization as a whole.
24
Strategy is a broad and general plan developed to
reach long-term organizational objectives it is
the end result of strategic planning.
25
Strategy formulation is the process of
determining appropriate courses of action for
achieving organizational objectives and thereby
accomplishing organizational purpose. Strategy
development tools include critical question
analysis, SWOT analysis, business portfolio
analysis, and Porters Model for Industry
Analysis.
26
Strategy implementation, the fourth step of the
strategy management process, is putting
formulated strategy into action.
27
Strategy management is the process of ensuring
that an organization possesses and benefits from
the use of an appropriate organizational strategy.
28
Suppliers are individuals or agencies that
provide organizations with the resources they
need to produce goods and services.
29
SWOT analysis is a strategy development tool that
matches internal organizational strengths and
weaknesses with external opportunities and
threats.
30
Tactical planning is short-range planning that
emphasizes the current operations of various
parts of the organization.