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Acceptability is concerned with the expected performance outcomes of a strategy (p. 361)

Acquisition is where strategies are developed by taking over ownership of another organisation (p. 349). See key concepts

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Backward integration is development into activities concerned with the inputs into the company's current business (p. 285)

Balanced scorecards combine both qualitative and quantitative measures, acknowledge the expectations of different stakeholders and relate an assessment of performance to choice of strategy (p. 418)

Barriers to entry are factors that need to be overcome by new entrants if they are to compete successfully (p. 81). See key concepts

Black holes are subsidiaries located in countries that are crucial for competitive success but with low-level resources or capabilities (p. 327)

The Bower–Burgelman explanation of strategy development is that strategy develops as the outcome of resource allocation routines in organisations (p. 580)

Business-level strategy is about how to compete successfully in particular markets (p. 11)

A business model describes the structure of product, service and information flows and the roles of the participating parties (p. 462). See key concepts

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A cash cow is a business unit with a high market share in a mature market (p. 316)

A change agent is the individual or group that effects strategic change in an organisation (p. 519)

Coercion is the imposition of change or the issuing of edicts about change (p. 517)

Collaboration or participation in the change process is the involvement of those who will be affected by strategic change in the change agenda (p. 515)

Competences are the activities and processes through which an organisation deploys its resources effectively (p. 119)

Competitive rivals are organisations with similar products and services aimed at the same customer group (p. 85). See key concepts

Competitive strategy is concerned with the basis on which a business unit might achieve competitive advantage in its market (p. 242)

An organisation's configuration consists of the structures, processes and relationships through which the organisation operates (p. 396). See key concepts

Consolidation is where organisations protect and strengthen their position in their current markets with current products (p. 342). See key concepts

Contributors are subsidiaries with valuable internal resources but located in countries of lesser strategic significance, which nonetheless play key roles in a multinational organisation's competitive success (p. 326)

Convergence is where previously separate industries begin to overlap in terms of activities, technologies, products and customers (p. 77). See key concepts

Core competences are the activities and processes through which resources are deployed in such a way as to achieve competitive advantage in ways that others cannot imitate or obtain (p. 121). See key concepts

Core values are the principles that guide an organisation's actions (p. 207)

Corporate-level strategy is concerned with the overall purpose and scope of an organisation and how value will be added to the different parts (business units) of the organisation (p. 11)

Corporate parent refers to the levels of management above that of the business units and therefore without direct interaction with buyers and competitors (p. 281)

Corporate social responsibility is concerned with the ways in which an organisation exceeds the minimum obligations to stakeholders specified through regulation and corporate governance (p. 191). See key concepts

Critical success factors (CSFs) are those product features that are particularly valued by a group of customers and, therefore, where the organisation must excel to outperform competition (p. 96). See key concepts

A cultural explanation of strategy development is that it occurs as the outcome of the taken-for-granted assumptions and behaviours in organisations (p. 581)

Cultural processes are concerned with organisational culture and the standardisation of norms (p. 416). See key concepts

The cultural web is a representation of the taken-for-granted assumptions, or paradigm, of an organisation and the physical manifestations of organisational culture (p. 201). See key concepts

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Data mining is the process of finding trends, patterns and connections in data in order to inform and improve competitive performance (p. 459)

The design lens views strategy development as the deliberate positioning of the organisation through a rational, analytic, structured and directive process (p. 41)

Development directions are the strategic options available to an organisation, in terms of products and market coverage (p. 340). See key concepts

A development method is the means by which any strategic direction will be pursued (p. 348). See key concepts

Devolution concerns the extent to which the centre of an organisation delegates decision making to units and managers lower down in the hierarchy (p. 421).See key concepts

A differentiation strategy seeks to provide product or service benefits that are different from those of competitors and that are widely valued by buyers (p. 246). See key concepts

Diffusion is the extent and pace at which a market is likely to adopt new products (p. 481). See key concepts

Direct supervision is the direct control of strategic decisions by one or a few individuals (p. 411). See key concepts

Direction involves the use of personal managerial authority to establish a clear future strategy and how change will occur (p. 516)

The directional policy matrix positions SBUs according to (a) how attractive the relevant market is in which they are operating, and (b) the competitive strength of the SBU in that market (p. 319)

Diversification is a strategy that takes the organisation into both new markets and products or services (pp. 282, 346). See key concepts

Dogs are business units with a low share in static or declining markets (p. 316)

A dominant strategy is one that outperforms all other strategies whatever rivals choose (p. 266)

A dominated strategy is a competitive strategy that, if pursued by a competitor, is bound to outperform the company (p. 266)

Dynamic capabilities are an organisation's abilities to develop and change competences to meet the needs of rapidly changing environments (p. 132). See key concepts

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Education and communication involve the explanation of the reasons for and means of strategic change (p. 515)

Emergent strategy comes about through everyday routines, activities and processes in organisations (p. 566). See key concepts

Enabling success is concerned with the two-way relationship between overall business strategies and strategies in separate resource areas such as people, information, finance and technology (p. 446). See key concepts

In game theory, equilibrium is a situation where each competitor contrives to get the best possible strategic solution for themselves given the response from the other (p. 266)

The ethical stance is the extent to which an organisation will exceed its minimum obligations to stakeholders and society at large (p. 189). See key concepts

The experience lens views strategy development as the outcome of individual and collective experience of individuals and their taken-for-granted assumptions (p. 45)

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A failure strategy is one that does not provide perceived value-for-money in terms of product features, price or both (p. 252). See key concepts

Feasibility is concerned with whether an organisation has the resources and competences to deliver a strategy (p. 371)

In financial control the role of the centre is confined to setting financial targets, allocating resources, appraising performance and intervening to avert or correct poor performance (p. 424). See key concepts

The five forces framework helps identify the sources of competition in an industry or sector (p. 78). See key concepts

A focused differentiation strategy seeks to provide high perceived product/service benefits justifying a substantial price premium, usually to a selected market segment (niche) (p. 251). See key concepts

A forcefield analysis provides a view of change problems that need to be tackled, by identifying forces for and against change (p. 514). See key concepts

Forward integration is development into activities which are concerned with a company's outputs (p. 285)

A functional structure is based on the primary activities that have to be undertaken by an organisation such as production, finance and accounting, marketing, human resources and research and development (p. 398)

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Game theory is concerned with the interrelationships between the competitive moves of a set of competitors (p. 264). See key concepts

Gatekeepers are individuals or groups who gain power from their control of information (p. 466)

The global–local dilemma relates to the extent to which products and services may be standardised across national boundaries or need to be adapted to meet the requirements of specific national markets (p. 300)

Global sourcing: purchasing services and components from the most appropriate suppliers around the world regardless of their location (p. 297)

In a global strategy standardised products exploiting economies of scale and value-adding activities are typically concentrated in a limited set of locations (p. 300)

The governance framework describes whom the organisation is there to serve and how the purposes and priorities of the organisation should be decided (p. 165). See key concepts

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A holding company is an investment company consisting of shareholdings in a variety of separate business operations (p. 402)

Horizontal integration is development into activities which are complementary to present activities (p. 285)

A hybrid strategy seeks simultaneously to achieve differentiation and a price lower than that of competitors (p. 248). See key concepts

Hypercompetition occurs where the frequency, boldness and aggressiveness of dynamic moves by competitors accelerate to create a condition of constant disequilibrium and change (p. 89). See key concepts

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The ideas lens sees strategy as the emergence of order and innovation from the variety and diversity which exist in and around organisations (p. 49)

Individual experience is the mental (or cognitive) models people build over time to help make sense of their situation (p. 46)

An industry is a group of firms producing the same principal product (p. 77). See key concepts

Intangible resources are non-physical assets such as information, reputation and knowledge (p. 118)

Intended strategy is an expression of desired strategic direction deliberately formulated or planned by managers (p. 565). See key concepts

Internal development is where strategies are developed by building on and developing an organisation's own capabilities (p. 348). See key concepts

Intervention is the coordination of and authority over processes of change by a change agent who delegates elements of the change process (p. 516)

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Key drivers of change are forces likely to affect the structure of an industry, sector or market (p. 69)

Key value and cost drivers are the factors that have most influence on the cash generation cabability of an organisation (p. 469)

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Leadership is the process of influencing an organisation (or group within an organisation) in its efforts towards achieving an aim or goal (p. 519). See key concepts

The learning organisation is capable of continual regeneration from the variety of knowledge, experience and skills of individuals within a culture which encourages mutual questioning and challenge around a shared purpose or vision (p. 589). See key concepts

Legitimacy is concerned with meeting the expectations within an organisational field in terms of assumptions, behaviours and strategies (p. 199)

Lock-in is where an organisation achieves a proprietary position in its industry; it becomes an industry standard (p. 256). See key concepts

Logical incrementalism is the deliberate development of strategy by experimentation and learning from partial commitments (p. 578). See key concepts

A low-price strategy seeks to achieve a lower price than competitors whilst trying to maintain similar perceived product or service benefits to those offered by competitors (p. 246). See key concepts

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Managing for value is concerned with maximising the long-term cash-generating capability of an organisation (p. 466). See key concepts

Market development is where existing products are offered in new markets (p. 346). See key concepts

Market penetration is where an organisation gains market share (p. 344). See key concepts

Market processes involve some formalised system of ‘contracting' for resources (p. 418). See key concepts

A market segment is a group of customers who have similar needs that are different from customer needs in other parts of the market (p. 91). See key concepts

A matrix structure is a combination of structures which could take the form of product and geographical divisions or functional and divisional structures operating in tandem (p. 402)

A mission statement is a statement of the overriding direction and purpose of an organisation (p. 209). See key concepts

A multidivisional structure is built up of separate divisions on the basis of products, services or geographical areas (p. 399)

In a multi-domestic strategy value-adding activities are located in individual national markets served by the organisation and products and/or services are adapted to the unique local requirements (p. 300)

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A ‘no frills' strategy combines a low price, low perceived product/service benefits and a focus on a price-sensitive market segment (p. 245). See key concepts

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Objectives are statements of specific outcomes that are to be achieved (p. 209)

Operational strategies are concerned with how the component parts of an organisation deliver effectively the corporate- and business-level strategies in terms of resources, processes and people (p. 12)

Organisational culture is the ‘basic assumptions and beliefs that are shared by members of an organisation, that operate unconsciously and define in a basic taken-for-granted fashion an organisation's view of itself and its environment' (pp. 47, 196). See key concepts

An organisational field is a community of organisations that partake of a common meaning system and whose participants interact more frequently with one another than with those outside the field (p. 197). See key concepts

Organisational knowledge is the collective and shared experience accumulated through systems, routines and activities of sharing across the organisation (p. 133). See key concepts

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A paradigm is the set of assumptions held relatively in common and taken for granted in an organisation (p. 200). See key concepts

The parental developer: a corporate parent seeking to employ its own competences as a parent to add value to its businesses and build parenting skills that are appropriate for their portfolio of business units (p. 311). See key concepts

Performance targets relate to the outputs of an organisation (or part of an organisation), such as product quality, prices or profit (p. 417). See key concepts

The PESTEL framework categorises environmental influences into six main types: political, economic, social, technological, environmental and legal (p. 65). See key concepts

Planning processes plan and control the allocation of resources and monitor their utilisation (p. 412). See key concepts

The political view of strategy development is that strategies develop as the outcome of processes of bargaining and negotiation among powerful internal or external interest groups (or stakeholders) (p. 584)

Porter's Diamond suggests that there are inherent reasons why some nations are more competitive than others, and why some industries within nations are more competitive than others (p. 71). See key concepts

A portfolio manager is a corporate parent acting as an agent on behalf of financial markets and shareholders (p. 308). See key concepts

Power is the ability of individuals or groups to persuade, induce or coerce others into following certain courses of action (p. 185). See key concepts

Primary activities are directly concerned with the creation or delivery of a product or service (p. 136)

Product development is where organisations deliver modified or new products to existing markets (p. 344). See key concepts

Profit pools are the potential profits at different parts of the value network (p. 141)

A project-based structure is one where teams are created, undertake the work and are then dissolved (p. 408)

Punctuated equilibrium is the tendency of strategies to develop incrementally with periodic transformational change (p. 28)

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A question mark (or problem child) is a business unit in a growing market, but without a high market share (p. 315)

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Realised strategy: the strategy actually being followed by an organisation in practice (p. 566)

A recipe is a set of assumptions held in common within an organisational field about organisational purposes and a ‘shared wisdom' on how to manage organisations (p. 199)

Reinforcing cycles are created by the dynamic interaction between the various factors of environment, configuration and elements of strategy; they tend to preserve the status quo (p. 433). See key concepts

Related diversification is strategy development beyond current products and markets, but within the capabilities or value network of the organisation (p. 285)

The resource-based view of strategy: the competitive advantage of an organisation is explained by the distinctiveness of its capabilities (p. 116)

Returns are the benefits which stakeholders are expected to receive from a strategy (p. 361)

Risk concerns the probability and consequences of the failure of a strategy (p. 369)

Routines are the organisationally specific ‘ways we do things around here' which tend to persist over time and guide people's behaviour (p. 527)

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Scenarios are detailed and plausible views of how the business environment of an organisation might develop in the future based on groupings of key environmental influences and drivers of change about which there is a high level of uncertainty (p. 76). See key concepts

Processes of self-control achieve the integration of knowledge and coordination of activities by the direct interaction of individuals without supervision (p. 413). See key concepts

Staged international expansion: firms initially use entry modes that allow them to maximise knowledge acquisition whilst minimising the exposure of their assets (p. 297)

A stage-gate process is a structured review process to assess progress on meeting product performance characteristics during the product development process and ensuring that they are matched with market data (p. 488)

Stakeholder mapping identifies stakeholder expectations and power and helps in understanding political priorities (p. 181). See key concepts

Stakeholders are those individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn, the organisation depends (p. 179). See key concepts

A star is a business unit which has a high market share in a growing market (p. 315)

A strategic alliance is where two or more organisations share resources and activities to pursue a strategy (p. 353). See key concepts

A strategic business unit is a part of an organisation for which there is a distinct external market for goods or services that is different from another SBU (pp. 11, 241). See key concepts

Strategic capability is the adequacy and suitability of the resources and competences of an organisation for it to survive and prosper (p. 117)

Strategic choices involve understanding the underlying bases for future strategy at both the business unit and corporate levels and the options for developing strategy in terms of both the directions and methods of development (p. 18). See key concepts

Strategic control is concerned with shaping the behaviour in business units and with shaping the context within which managers are operating (p. 425). See key concepts

The strategic customer is the person(s) at whom the strategy is primarily addressed because they have the most influence over which goods or services are purchased (p. 96). See key concepts

Strategic drift is where strategies progressively fail to address the strategic position of the organisation and performance deteriorates (pp. 27, 582). See key concepts

A strategic gap is an opportunity in the competitive environment that is not being fully exploited by competitors (p. 99). See key concepts

Strategic groups are organisations within an industry with similar strategic characteristics, following similar strategies or competing on similar bases (p. 89). See key concepts

Strategic leaders (in the context of international strategy) are subsidiaries that not only hold valuable resources and capabilities but are also located in countries that are crucial for competitive success (p. 326)

Strategic management includes understanding the strategic position of an organisation, strategic choices for the future and turning strategy into action (p. 16)

Strategic planning may take the form of systematised, step-by-step, chronological procedures to develop or coordinate an organisation's strategy (p. 568). See key concepts

In a strategic planning style of control, the relationship between the centre and the business units is one of a parent who is the master planner prescribing detailed roles for departments and business units (p. 423). See key concepts

The strategic position is concerned with the impact on strategy of the external environment, an organisation's strategic capability (resources and competences) and the expectations and influence of stakeholders (p. 17). See key concepts

Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations (p. 9). See key concepts

Strategy development processes are the ways in which strategy develops in organisations (p. 19)

Strategy into action is concerned with ensuring that strategies are working in practice (p. 19). See key concepts

The strategy lenses are three different ways of looking at the issues of strategy development for an organisation (p. 32). See key concepts

Substitution reduces demand for a particular ‘class' of products as customers switch to the alternatives (p. 82). See key concepts

Success criteria are used to assess the likely success of a strategic option (p. 357). See key concepts

Suitability is concerned with whether a strategy addresses the circumstances in which an organisation is operating – the strategic position (p. 358)

Support activities help to improve the effectiveness or efficiency of primary activities (p. 137)

A SWOT analysis summarises the key issues from the business environment and the strategic capability of an organisation that are most likely to impact on strategy development (pp. 102, 148). See key concepts

Symbols are objects, events, acts or people which express more than their intrinsic content (p. 528)

Synergy refers to the benefits that might be gained where activities or processes complement each other such that their combined effect is greater than the sum of the parts (p. 282). See key concepts

The synergy manager a corporate parent seeking to enhance value across business units by managing synergies across business units (p. 310)

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Tangible resources are the physical assets of an organisation such as plant, labour and finance (p. 117)

A team-based structure attempts to combine both horizontal and vertical coordination through structuring people into cross-functional teams (p. 406)

A technological path identifies the major factors that are influencing technological developments (p. 478). See key concepts

Threshold capabilities are those capabilities essential for the organisation to be able to compete in a given market (p. 119)

A tipping point is where demand for a product or service suddenly takes off or declines – sometimes dramatically (p. 482). See key concepts

A transnational structure combines the local responsiveness of the international subsidiary with the coordination advantages found in global product companies (p. 404)

In a turnaround strategy the emphasis is on speed of change and rapid cost reduction and/or revenue generation (p. 523). See key concepts

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Unique resources are those resources that critically underpin competitive advantage and that others cannot easily imitate or obtain (p. 121)

Unrelated diversification is the development of products or services beyond the current capabilities or value network (p. 288)

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The value network is the set of inter-organisational links and relationships that are necessary to create a product or service (p. 140). See key concepts

Vertical integration is backward or forward integration into adjacent activities in the value network (p. 285)

Virtual organisations are held together not through formal structure and physical proximity of people, but by partnership, collaboration and networking (p. 430)

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