Glossary on Strategic Management:
1. Concept of Strategy :Strategy is the direction and scope of an organization over that long term which achieve
advantages in a changing environment through its configuration of resources and competencies
with the aim of fulfilling stakeholder’s expectations.
2. Elements of Strategic Management:Strategic position, Strategic choice and Strategic action
3. Levels of Strategy :Corporate level
a. Determine overall scope of the organization
b. Add value to the different business units
c. Meet expectations of stakeholders
Business level (SBU)
d. How to compete successfully in particular markets
Operational
e. How different parts of organization deliver strategy
4. Resource based view of Strategy:According to this concept competitive advantage can be achieved only by the resources and the
competencies of the organization resources can be financial, technical and HR resources
5. Vision and Mission
Vision- What do we want to become?
Vision is an intention that is broad all inclusive and forward thinking
Mission- Makes vision more tangible, verbalize the beliefs and directions in which a visionary
wants to lead an organization.
6. Planned and Realized strategy:The strategy actually being followed by an organization in practice
7. Strategic Position :Before planning and structuring any strategy a firm should analyze its internal as well as
external positioning firm needs to do PESTEL analysis
8. Competitive Advantage :It’s an edge that a firm can get over other competitors by three different strategies
- Differentiation, Cost leadership, focus
9. Core Competence :A specific practice or a quality that a firm attains for getting competitive advantage over its
competitors
10. Competences :It is a unique practice or quality that a firm attains that can be initiated by other firms
Attain that can be initiated by other firms.
11. Industry Structure
12. Five Forces Analysis :Competitive Rivalry is likely to be high when:
• competitors are in balance
• there is slow market growth (product life cycle)
• there are high fixed costs in an industry
• there are high exit barriers
• markets are undifferentiated
13. PEST /PESTEL Analysis
Political Economic Social Technological Environmental Legal
14. Ratio Analysis :This analysis exemplifies complexity of relationships among functional areas of the business
15. Concept of Value Chain :-
16. External Analysis:Looking outside the organization at two levels
-General environment
-The competitive advantage
17. Internal Analysis:Positive and negative for particular firm. Understanding strength and weakness
18. Competitive Rivalry :Competitive rivals are organisations with similar products and services aimed at the same
customer group = direct competitors
19. Strategic Groups :Strategic groups are organizations within an industry with similar strategic characteristics
following similar strategies are competing on similar bases

Porters generic strategies:
Porter's generic strategies describe how a company pursues competitive advantage across its chosen
market scope. There are three generic strategies, either lower cost, differentiated, or focus. A company
chooses to pursue one of two types of competitive advantage, either via lower costs than its
competition or by differentiating itself along dimensions valued by customers to command a higher
price. A company also chooses one of two types of scope, either focus (offering its products to
selected segments of the market) or industry-wide, offering its product across many market segments.
The generic strategy reflects the choices made regarding both the type of competitive advantage and
the scope. The concept was described by Michael Porter in 1980’s.
20. Strategic Business Unit :SBU is a profit center which focuses on product offering and market segment. SBUs typically
have a discrete marketing plan, analysis of competition, and marketing campaign, even though
they may be part of a larger business entity.
21. Blue Ocean Strategy :When a firm starts a business with innovative and new ideas and where there is no competition
in the market then this type of strategy is called Blue Ocean Strategy. Example,
Telecommunication