Chapter 1

1. Strategic Management: The process consisting of analysis, decisions, and

actions an organization undertakes to create and sustain competitive
advantages.
2. Competitive Advantage: A position of strength that an organization holds
over its competitors, allowing it to achieve better performance.
3. Key Attributes of Strategic Management:
o Concern with overall objectives
o Involvement of multiple stakeholders
o Incorporation of short- and long-term perspectives
o Recognition of trade-offs between effectiveness and efficiency
4. Ambidextrous Behaviors: The ability to balance alignment with adaptability,
being proactive in seizing future opportunities while exploiting existing
resources.
5. Strategic Management Process: The interconnected activities of strategy
analysis, strategy formulation, and strategy implementation.
6. Intended Strategy: The plan or course of action an organization intends to
follow.
7. Realized Strategy: The strategy that is actually implemented and executed.
8. Corporate Governance: The system of rules, practices, and processes by
which a firm is directed and controlled, involving shareholders, management,
and the board of directors.
9. Stakeholder Management: The process of balancing the interests of various
stakeholders, including shareholders, employees, customers, suppliers, and the
community.
10. Symbiosis: A state where stakeholders are interdependent and can achieve
their interests simultaneously.
11. Social Responsibility: The expectation that businesses will strive to improve
the overall welfare of society.
12. Environmental Sustainability: The practice of managing resources
sustainably for long-term environmental health and economic viability.
13. Organizational Vision: A broad, aspirational goal that is massively inspiring,
overarching, and long-term.
14. Mission Statements: A statement of the organization's purpose, its reason for
existence, and the unique angle it brings to its competitive environment.
 15. Strategic Objectives: Specific, measurable goals that an organization aims to
achieve in order to implement its mission and realize its vision.
16. Strategy Formulation: The development of strategies at different levels,
including business-level, corporate-level, international-level, and
entrepreneurial strategies.
17. Strategy Implementation: The execution of strategies through strategic
controls, organizational designs, coordination, integration, and leadership.
18. Strategy Analysis: The examination of an organization's internal and external
environment, as well as its goals, to inform strategy formulation.

Chapter 2

1. External Environment Analysis: The process of evaluating a firm's external

environment to identify opportunities and threats.
2. Competitive Advantage: A condition that provides a company with an edge over its
competitors in the market.
3. Environmental Scanning: Monitoring and interpreting events and trends outside an
organization to detect opportunities and threats.
4. Monitoring: Keeping track of the firm's external environment on an ongoing basis.
5. Competitive Intelligence: Gathering, analyzing, and using information about
competitors to improve a firm's competitiveness.
6. Forecasting: Predicting future events and trends based on current data and historical
patterns.
7. SWOT Analysis: A strategic planning tool used to identify a firm's Strengths,
Weaknesses, Opportunities, and Threats.
8. General Environment: The broad context within which an industry and its firms
operate, including demographic, sociocultural, political/legal, technological,
economic, and global segments.
9. Demographic Segment: Population statistics and trends that can affect a firm's
strategies and operations.
10. Sociocultural Segment: Cultural and societal factors, such as values, beliefs, and
lifestyles, that influence consumer behavior and market trends.
11. Political/Legal Segment: Government policies, regulations, and legal issues that can
impact business operations and strategies.
12. Technological Segment: Technological developments and innovations that can
create new opportunities or threats for businesses.
13. Economic Segment: Economic factors such as interest rates, inflation, and economic
growth that affect business conditions.
14. Global Segment: International factors such as currency exchange rates, trade
policies, and global market trends.
15. Porter’s Five Forces Model: A framework for industry analysis that includes the
threat of new entrants, bargaining power of buyers, bargaining power of suppliers,
threat of substitute products or services, and intensity of competitive rivalry.
16. Strategic Groups: Divisions within an industry based on similar strategic approaches
or positions in the market.
17. Digital Economy: The economic and social activities that result from digital
technologies, such as e-commerce and online services.
18. Value Net: A concept that extends the five forces model to include complementors,
which are firms that produce complementary products or services.
19. Complements: Products or services that are used in conjunction with a firm's product
or service to enhance its value.
20. Complementors: Firms that produce complementary products or services that
enhance the value of a firm's offerings.
21. Zero-Sum Perspective: The idea that one party's gain is exactly balanced by
another's loss, implying a fixed total.
22. Mobility Barriers: Obstacles that make it difficult for firms to move between
strategic groups.
23. Industry Analysis: The examination of an industry's structure and dynamics to
assess its attractiveness and competitive intensity.
24. Economies of Scale: Cost advantages that a firm obtains due to expansion, allowing
it to produce goods or services at a lower per-unit cost.
25. Product Differentiation: The process of making a product unique to gain a
competitive advantage in the market.
26. Capital Requirements: The amount of money needed to start or expand a business.
27. Switching Costs: One-time costs that a buyer incurs when changing from one
product or service to another.
28. Access to Distribution Channels: The ability of a firm to get its products or services
into the hands of consumers.
29. Cost Disadvantages Independent of Scale: Costs that a firm incurs that are not
related to the scale of production, such as proprietary product costs or unfavorable
access to raw materials.
Chapter 3

1. Value-Chain Analysis: A framework for analyzing the activities that firms perform
through the production and delivery of its products and services.
2. Primary Activities: The basic activities involved in the production and sale of a
product or service, including inbound logistics, operations, outbound logistics,
marketing and sales, and service.
3. Support Activities: Activities that support the primary activities, including
procurement, technology development, human resource management, and general
administration.
4. Resource-Based View (RBV) of the Firm: A perspective that focuses on a firm's
internal resources and capabilities as the source of its competitive advantage.
5. Firm Resources: The tangible and intangible assets that a firm uses to conduct its
operations.
6. Sustainable Competitive Advantage: A competitive edge that a firm can maintain
over a long period due to resources that are valuable, rare, costly to imitate, and not
substitutable.
7. Financial Ratio Analysis: The use of financial ratios to evaluate a firm's
performance, liquidity, solvency, profitability, and market value.
8. Balanced Scorecard: A performance measurement framework that provides a
comprehensive view of a firm's performance by including financial and non-financial
metrics across four perspectives: customer, internal business, innovation and learning,
and financial.
9. Stakeholder Perspectives: The consideration of the interests and views of all parties
with a stake in the firm, including customers, employees, suppliers, and shareholders.
10. Internal Environment: The internal factors within a firm that can affect its
performance, such as its culture, management, and operations.
11. Competitive Advantage: The ability to outperform competitors in the market,
typically through offering better value to customers or achieving lower costs.
12. Value Creation: The process by which a firm enhances the worth of its products or
services to customers, leading to higher willingness to pay.
13. Interrelationships among Value-Chain Activities: The connections and interactions
between different activities within the value chain that can affect overall performance
and value creation.
14. Service Organizations: Businesses that primarily offer intangible services rather
than physical products.
 15. Human Capital: The skills, knowledge, and experience of a firm's workforce, which
can be a source of competitive advantage.
16. Procurement: The process of acquiring goods and services from suppliers.
17. Technology Development: The activities related to creating and managing
technological advancements within a firm.
18. General Administration: The overarching management and administrative functions
that support the entire value chain.
19. Inbound Logistics: Activities related to the receiving, storing, and distribution of
inputs to the production process.
20. Operations: Activities involved in the transformation of inputs into the final product
or service.
21. Outbound Logistics: Activities associated with the collection, storage, and
distribution of the finished product to customers.
22. Marketing and Sales: Activities aimed at promoting and selling a firm's products or
services.
23. Customer Perspective (Balanced Scorecard): The viewpoint of the customer,
focusing on customer satisfaction, loyalty, and retention.
24. Internal Business Perspective (Balanced Scorecard): The internal processes and
operations of a firm that directly affect customer satisfaction.
25. Innovation and Learning Perspective (Balanced Scorecard): The capacity of a
firm to innovate and improve, which is crucial for adapting to changes in the market
and technology.
26. Financial Perspective (Balanced Scorecard): The financial outcomes of a firm's
strategy and operations, including profitability and shareholder value.

Chapter 4

1. Intellectual Assets: Intangible resources like knowledge, patents, and brands that
contribute to a firm's value.
2. Human Capital: The skills, knowledge, and experience of a company's employees,
which are foundational to intellectual capital.
3. Attracting Human Capital: Strategies to recruit talented individuals, including the
use of social networks and emphasizing company culture.
4. Developing Human Capital: Processes to enhance the skills and capabilities of
employees, such as training programs and mentorship.
5. Retaining Human Capital: Efforts to keep top talent, such as providing challenging
work, a stimulating environment, and competitive financial and non-financial
incentives.
6. Enhancing Human Capital: Redefining jobs to optimize the use of expertise and
managing diversity to leverage different perspectives and experiences.
7. Social Capital: The network of relationships among individuals within and across
organizations, which can help attract and retain talent.
8. Knowledge Management: The practice of capturing, sharing, and utilizing the
knowledge and expertise of an organization's employees.
9. Technology Leverage: The use of technology to enhance collaboration, share
information, and manage knowledge within and beyond the organization.
10. Intellectual Property (IP): Legal protections for creations of the mind, such as
patents, copyrights, trademarks, and trade secrets.
11. Dynamic Capabilities: The ability of a firm to continuously adapt and innovate to
maintain a competitive advantage, including sensing, seizing, and transforming
opportunities.
12. Non-compete Clauses: Legal agreements that restrict former employees from joining
or starting a competing business.
13. Golden Handcuffs: Retention strategies that offer financial incentives to employees
to stay with the company.
14. Groupthink: A psychological phenomenon where group members strive for
consensus at the expense of critical evaluation of ideas.
15. Diversity: The variety of characteristics among employees, including race, gender,
age, and cultural background, which can enhance creativity and problem-solving.
16. Virtual Teams: Teams that collaborate using technology, often across different
geographic locations.
17. Codified Knowledge: Knowledge that is documented and easily shared, as opposed
to tacit knowledge, which is personal and hard to communicate.
18. Knowledge Management Systems: Systems that allow organizations to collect,
organize, and make available the knowledge of their employees.
19. Electronic Teams (E-teams): Groups that use electronic communication to
collaborate and make decisions.
20. Non-Disclosure Agreements (NDAs): Legal contracts that require individuals not to
disclose confidential information.