Strategic management is the set of managerial decisions and actions that
determines the short-term performance of an organization.
“Strategic model” is a term that is often used in conjunction with
strategic management and strategies.
The first step in the strategic management process is analyzing the external
Within an industry, an environment can present opportunities to one
organization and pose threats to another.
Evaluating an organization’s intangible assets is part of doing an internal
analysis in the strategic management process.
Activities that an organization does well or resources that it has available
are called capabilities.
Exceptional or unique organizational resources are known as core capabilities.
SWOT analysis includes an analysis of an organization’s environmental
opportunities and threats.
The final step in the strategic management process is implementing the objectives.
Corporate-level strategies are developed for organizations that run more than
one type of business.
A trucking company that grows by purchasing a chain of gasoline stations is
engaged in horizontal integration.
Diversification is an example of a corporate retrenchment strategy.
If Burger King were to buy out Mom and Pop’s Burgers, Burger King would be
growing by vertical consolidation.
A stability strategy is developed when management decides it will remain profitable
by maintaining the status quo in a rapidly changing external environment.
A retrenchment strategy is a shortrun renewal strategy designed to address
organizational weaknesses that are leading to performance declines.
Turnaround is one type of renewal strategy.
The BCG matrix evaluates an organization’s various businesses to identify which
ones offer high potential and which drain organizational resources.
Stars, one of the four business groups in the corporate portfolio matrix, are
characterized by low growth and low market share.
When managers “manage strategically” by following the strategic
management process, the chosen strategies will always lead to positive