Strategy & Planning Glossary
Welcome to our Business Strategy and Planning Glossary, tailored for small and medium-sized business owner, leaders, and entrepreneurs. In the today’s fast-paced business environment, comprehending strategic terminology is crucial for devising successful plans and steering your organization towards its goals.
Our glossary is an essential resource, offering clear and straightforward definitions of vital business strategy and planning terms and concepts. Whether you're analyzing competitive landscapes, crafting strategic initiatives, or fostering innovation and growth, our glossary is your guide through the complexities of business strategy. Delve into a wealth of knowledge, encompassing everything from strategic analysis techniques to operational tactics and leadership principles, all crucial for modern businesses.
With this comprehensive glossary, you can build a robust foundation of strategic understanding, enhancing your ability to navigate and succeed in today's competitive business environment.
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Growth and Innovation
Definition: A form of financing where wealthy individuals provide capital for business start-ups, usually in exchange for convertible debt or ownership equity; angel investors are often retired entrepreneurs or executives who may be interested in angel investing for reasons that go beyond pure monetary return
Definition: A market strategy that involves creating a new, uncontested market space ("blue ocean"), thereby avoiding competition in overcrowded industries ("red oceans")
Definition: Starting a business without external capital injections, using personal finances and revenue from the business to support and grow the company
Definition: The practice of using an existing brand name to enter a different product class or industry; this can be a powerful growth strategy if the brand carries strong customer loyalty and awareness
Definition: An organization or program that provides startup companies with mentorship, resources, and often capital, in exchange for equity, to speed up their growth and success
Definition: An economic community supported by interacting organizations and individuals—such as suppliers, producers, competitors, and customers—that produce goods and services of value to customers
Definition: The process of changing a company's approach to revenue generation and value-creating activities to improve its prospects for growth and competitiveness
Definition: The capability of a company to maintain or improve profit margins while sales volume increases; scalability is essential for businesses to expand and manage growth effectively
Definition: A process of making fundamental changes in how a business or organization runs; this often involves rethinking existing business models, processes, and strategies to address emerging market trends
Definition: Expanding the ways through which a business sells and markets its products; this could include online marketplaces, physical stores, or third-party resellers
Definition: A group of people with different functional expertise working toward a common goal; it may include people from finance, marketing, operations, and human resources departments
Definition: The practice of selling additional products or services to an existing customer; it is one of the easiest and most effective methods of marketing
Definition: The practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet
Definition: The methods a business uses to attract new customers; this can involve a mix of marketing, sales, special offers, and outreach strategies
Definition: A metric that represents the total net profit a company makes from any given customer; CLV is a projection of the revenue attributed to the entire future relationship with a customer
Definition: The ability of a business to retain its customers over a period of time; high customer retention means customers of the product or business tend to return to, continue to buy or in some other way not defect to another product or business
Definition: A non-linear, iterative process that teams use to understand users, challenge assumptions, redefine problems, and create innovative solutions to prototype and test
Definition: The integration of digital technology into all areas of a business, fundamentally changing how businesses operate and deliver value to customers
Definition: An innovation that significantly alters the way that consumers, industries, or businesses operate, often by displacing old technologies or practices
Definition: A corporate strategy to enter into a new market or industry which the business is not currently in, whilst also creating a new product for that new market
Definition: A business approach focused on the interactions between a company and its surrounding ecosystem, including partners, suppliers, customers, and even competitors, to create mutual value
Definition: A strategic plan to sell or liquidate a business after achieving certain criteria or reaching a particular age, providing a way to reduce or liquidate a stake in a business and, if the business is successful, make a substantial profit
Definition: A business expansion strategy where a company (franchisor) allows individuals (franchisees) to start and operate a business using its brand, model, and processes
Definition: A process of rapid experimentation across marketing, product development, sales segments, and other areas to identify the most effective and efficient ways to grow a business
Definition: A plan of action designed to achieve a higher level of market share than the company currently holds
Definition: A smarter approach to web design that eliminates all of the headaches and drives optimal results using data; it's a methodology that shortens the time to launch, focusing on real impact and continuous learning and improvement
Definition: A type of acquisition strategy of a company by another in the same industry; horizontal integration is pursued to increase the acquiring company's size, diversify its product offerings or markets, achieve economies of scale, reduce competition, or access new customers
Definition: A dedicated unit established by a company to focus on innovation and new project development; it operates with a degree of autonomy to explore and develop new business models, technologies, and start-up partnerships
Definition: A situation in which a company cannot adopt a new technology or business model because it would hurt their existing business, even though this new technology could bring huge benefits
Definition: Expansion of a business resulting from mergers or acquisitions, rather than an increase in the company’s own business activity; it provides a quick way to scale up, diversify, and increase market share
Definition: Growing a business beyond its domestic borders into new geographic markets; this strategy requires significant market research and regulatory understanding
Definition: A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task; this task can be a new project or any other business activity; in a joint venture, each of the participants is responsible for profits, losses, and costs associated with it
Definition: A set of quantifiable measures that a company uses to gauge or compare performance in terms of meeting their strategic and operational goals
Definition: The process of creating, sharing, using, and managing the knowledge and information of an organization; it refers to a multidisciplinary approach to achieve organizational objectives by making the best use of knowledge
Definition: A business approach that favors experimentation over elaborate planning, customer feedback over intuition, and iterative design over traditional “big design upfront” development
Definition: The acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition; often, the assets of the company being acquired are used as collateral for the loans in addition to the assets of the acquiring company
Definition: A growth strategy that involves selling existing products or services into new markets to attract new customer segments
Definition: A measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service; it is also a strategy to increase market share within an existing industry
Definition: The process of dividing a target market into smaller, more defined categories; it segments customers and potential customers into groups with similar characteristics and needs
Definition: The version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort
Definition: The act of interacting with others to exchange information and develop professional or social contacts, especially as it relates to business opportunities and ventures
Definition: A business model that encourages the use of external as well as internal ideas and collaborations when devising strategies and technologies, as opposed to relying solely on internal resources and capabilities
Definition: Business growth achieved through internal processes, such as increasing output, expanding customer base, or new product development, as opposed to mergers and acquisitions
Definition: Quantifiable measures used to track and assess the status of a specific business process; these are crucial for understanding growth patterns and making informed decisions
Definition: The strategic decision to shift a business model or product offering to adapt to market needs or leverage new opportunities, often based on learnings from initial market reactions
Definition: The process of distinguishing a product or service from others, to make it more attractive to a particular target market
Definition: The process of managing the entire lifecycle of a product from inception, through engineering design and manufacture, to service and disposal
Definition: The speedy creation of a full-scale model that is often used for product testing and development; this process allows for quick iterations and adjustments based on user feedback
Definition: The process of identifying and implementing new ways for a business to generate income, reducing reliance on single or traditional income sources
Definition: The ability of a startup's business model to cope and perform under an increased or expanding workload or scope
Definition: The initial capital used to start a business; seed funding helps a company to finance its first steps, including market research and product development
Definition: The development and implementation of new, effective solutions to social and environmental challenges, with an emphasis on the needs of the population affected by these challenges
Definition: An agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations
Definition: Investments made in key areas of a business to drive growth and are often aligned with long-term business goals
Definition: The potential financial benefit achieved through the combining of companies, operating units, or product lines, often seen in mergers and acquisitions
Definition: Innovation that meets the needs of the present without compromising the ability of future generations to meet their own needs, often focusing on environmental and social sustainability
Definition: A sales technique where a seller induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale
Definition: A design process that focuses on the users and their needs at each phase of the design process; user interface and user experience are paramount in this approach
Definition: The series of activities that a company performs in order to deliver a valuable product or service to its customers
Definition: An innovation, service, or feature intended to make a company or product attractive to customers
Definition: A form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential
Definition: A leadership style characterized by a leader’s ability to create and articulate a realistic, credible, and attractive vision of the future that improves upon the present situation
Leadership and Management
The systematic management of an organization's assets, including physical, financial, and intellectual assets, to maximize their value and utility
A leadership style where the leader makes decisions unilaterally, without much input from team members
The process of planning and implementing measures to ensure that essential business functions can continue in the event of a disaster or unexpected disruption
A formal document outlining a business's goals, strategies, and financial projections, often used to secure funding or guide decision-making
The radical redesign of an organization's business processes to achieve dramatic improvements in performance, efficiency, and quality
Leadership during times of crisis or emergency, involving quick decision-making and communication
A leadership style where the leader inspires and influences others through their charisma, personality, and enthusiasm
A leadership approach that involves guiding and developing employees to help them reach their full potential
The practice of identifying, addressing, and resolving conflicts or disputes within the organization in a constructive and productive manner
A leadership style where the leader uses threats and punishments to control and direct their team
The act of assigning tasks and responsibilities to employees or team members to achieve specific goals
An organizational commitment to embracing differences and creating an inclusive environment where all individuals are valued and respected
The level of commitment, enthusiasm, and dedication employees have toward their work and the organization
Granting employees the autonomy and authority to make decisions and take ownership of their work
Leadership characterized by moral and principled behavior, setting an example for ethical conduct within an organization
A continuous process of collecting, analyzing, and acting upon feedback to improve products, services, or processes
Leadership that motivates and inspires team members by articulating a compelling vision and instilling a sense of purpose
The process of creating, sharing, using, and managing the knowledge and information of an organization to achieve its objectives
The responsibility of leaders to answer for their actions, decisions, and outcomes related to their leadership role
The ability of leaders to quickly adapt and respond to changing circumstances, emerging opportunities, and dynamic environments
The specific skills, knowledge, and attributes that effective leaders possess and continually develop
Initiatives and programs aimed at enhancing leadership skills and capabilities among current and future leaders
A personalized roadmap outlining a leader's goals, strengths, weaknesses, and strategies for enhancing their leadership skills
Constructive input and assessments provided to leaders by peers, subordinates, mentors, or stakeholders to aid in self-improvement
Consistency between a leader's words, actions, and values, demonstrating honesty and authenticity
The lasting impact and contributions a leader leaves behind in terms of their influence on people, culture, and the organization
The ability of a leader to command attention, inspire confidence, and make a positive impact when present
The capacity of leaders to adapt, recover, and thrive in the face of adversity, setbacks, or challenges
Different approaches or behaviors that leaders adopt to influence and guide their teams or organizations
Frameworks and models that explain the principles and practices of effective leadership
A clear and inspiring picture of the future that a leader envisions for their team or organization, guiding strategic decisions and actions
A management approach that emphasizes setting specific, measurable, achievable, relevant, and time-bound (SMART) objectives to align individual and team goals with organizational objectives
A relationship where an experienced individual (mentor) provides guidance and advice to a less experienced person (mentee)
The shared values, beliefs, and behaviors within a company, influencing how employees interact and work together
A planned and systematic approach to improving an organization's capacity to solve problems, manage change, and achieve its objectives
The process of setting performance expectations, measuring progress, providing feedback, and addressing performance issues to improve individual and organizational effectiveness
Quantifiable measures used to assess the effectiveness, efficiency, and performance of individuals, teams, and the organization as a whole
The process of distributing and assigning resources, such as budget, personnel, and equipment, to projects, tasks, or activities within an organization
The efficient allocation and utilization of an organization's resources, including human resources, financial resources, and technology
The identification, assessment, and mitigation of potential risks and uncertainties that could impact an organization's objectives
A leadership philosophy where leaders prioritize serving and supporting their team members' needs and goals
The process of identifying, engaging with, and satisfying the needs and expectations of various stakeholders, including employees, customers, investors, and communities
The ability to set a clear vision, make strategic decisions, and guide an organization toward its long-term goals
The process of defining an organization's long-term vision, mission, goals, and strategies to achieve a competitive advantage in the market
Activities and strategies aimed at improving teamwork, collaboration, and communication among team members
The role of a leader in guiding and motivating a group of individuals working together to achieve common goals and objectives
A leadership style where an individual or organization is recognized as an authority and influencer in a particular industry or field
The practice of planning and organizing tasks and activities to make the most efficient use of time and meet deadlines
An organization-wide approach to quality improvement that involves all employees in a continuous effort to improve quality at every level
A leadership style that inspires and motivates team members to achieve beyond their expected capabilities
A leadership style that focuses on managing tasks and processes through clear instructions and rewards or punishments based on performance
Maintaining equilibrium between professional responsibilities and personal life to promote well-being and reduce burnout
Organizational Structure
The systematic management of an organization's assets, including physical, financial, and intellectual assets, to maximize their value and utility
Small, cross-functional teams that work together in an agile organization to achieve objectives quickly and adapt to changing conditions
A semi-autonomous division or segment within an organization responsible for its own operations, often used for strategic purposes
The choice between concentrating decision-making authority at the top of the organization (centralization) or distributing it across various levels (decentralization)
Concentrating decision-making authority at the top levels of an organization, often seen in highly regulated industries
The formal line of authority and communication within an organization, specifying who reports to whom
An individual or group within an organization responsible for driving and facilitating organizational change initiatives
The structured approach to planning and implementing organizational change to minimize resistance and maximize successful adoption
Teams composed of individuals from different departments or functional areas working together on specific projects or tasks
The delegation of decision-making authority and responsibility to lower levels within the organization, reducing the concentration of power at the top
The leader or manager responsible for overseeing a specific department within an organization
The process of grouping employees and tasks into departments based on common functions, products, or markets
An organizational commitment to embracing diversity, promoting equity, and fostering inclusivity among employees
Granting employees the authority and autonomy to make decisions and take ownership of their work
A structured survey conducted within an organization to measure employees' level of engagement, satisfaction, and feedback
A document that outlines an organization's policies, procedures, expectations, and benefits, serving as a reference for employees
The process of integrating new employees into an organization, including orientation, training, and introduction to the company culture
The rate at which employees leave an organization and are replaced, often measured as a percentage
An organizational structure with few levels of management and a broader span of control, promoting open communication and faster decision-making
An organizational structure where employees are grouped based on their specialized functions, such as marketing, finance, or operations
An organizational structure characterized by clear levels of authority and decision-making, with power flowing from the top down
Encouraging employees to take on entrepreneurial roles within the organization, fostering innovation and creativity
The process of structuring and organizing individual job roles within an organization, including task assignments and responsibilities
A talent development strategy where employees periodically change roles or departments within an organization to gain diverse experience and skills
The level of contentment and fulfillment employees experience in their roles within an organization
The practice of sharing information, expertise, and experiences among employees to enhance learning and improve decision-making
The process of capturing, sharing, and transferring critical knowledge and expertise from experienced employees to new hires or other team members
An organization that focuses on eliminating waste and inefficiency in its processes to optimize resource utilization
An approach used by startups and SMBs that emphasizes rapid experimentation, iterative development, and customer feedback to build sustainable businesses
An organizational structure where employees have dual reporting relationships, typically functional and project-based, allowing for flexibility in team assignments
An organizational structure that relies on external networks, partnerships, and collaborations to achieve business objectives
Ensuring that the goals, strategies, and actions of an organization's various departments and teams are in harmony and support its overall objectives
A visual representation of an organization's structure, showing hierarchical relationships, reporting lines, and key positions
The shared values, beliefs, norms, and behaviors that shape the work environment and influence employee behavior and attitudes
A systematic assessment of an organization's culture to identify strengths, weaknesses, and areas for improvement
A planned effort to improve the overall effectiveness and efficiency of an organization, often involving changes in structure, culture, and processes
The structure that defines the levels of authority and decision-making within an organization, often represented as a pyramid
The ability of an organization to adapt and recover from disruptions, challenges, or crises while maintaining continuity
A deliberate reorganization of an organization's structure, often aimed at improving efficiency, reducing costs, or responding to changing market conditions
The framework of roles, responsibilities, hierarchies, and relationships within an organization that defines how tasks are divided, coordinated, and controlled
The core beliefs and principles that guide an organization's actions, decisions, and culture
A systematic process of evaluating and providing feedback on an employee's job performance, often conducted annually
A set of guidelines and procedures that govern employees' ability to work from locations other than the company's office, such as from home
Limitations on an organization's available resources, such as budget, personnel, or time, that impact its ability to pursue initiatives
The ability of an organization to grow and expand while maintaining or improving its efficiency and effectiveness
The number of subordinates or employees directly supervised by a manager or leader within the organizational hierarchy
The process of identifying and developing internal talent to fill key leadership positions in the organization in the future
The use of technology and software to streamline and automate repetitive tasks and processes within an organization
A temporary group formed within an organization to address specific issues or challenges, often disbanded after achieving its objectives
Collaborative efforts among employees to achieve common goals, often involving shared responsibilities and mutual support
An organization that operates primarily through remote work arrangements, with employees located in various geographic locations
A group of employees who collaborate on projects and tasks from different geographic locations, often using digital communication tools
The inclusion of individuals from various backgrounds, including race, gender, age, and cultural differences, within the organization
The strategic process of forecasting future workforce needs and ensuring that an organization has the right talent and skills to meet its objectives
Strategic Planning
A detailed plan outlining actions needed to reach one or more goals
A strategic planning and management system used for aligning business activities with the vision statement of an organization
A process of measuring the performance of a company's products, services, or processes
A marketing theory suggesting companies should seek uncontested market space
Starting a business without external help or capital. It involves funding your startup through personal finances or the operating revenues of the new company
The value premium from a recognizable product name
Creating a system of prevention and recovery from potential threats
An economic community supported by interacting organizations and individuals
A strategic management template for developing new or documenting existing business models; it is a visual chart with elements describing a firm's value proposition, infrastructure, customers, and finances
Changes to how a business creates and captures value
The radical redesign of core business processes for improvement
Determining the production capacity needed by an organization
A systematic approach to dealing with organizational transitions
A condition that puts a company in a favorable business position
A long-term plan to gain advantage over industry competitors
The primary area or activity of a company
Main strengths or strategic advantages of a business
The system of rules, practices, and processes directing a firm
Making plans for the corporate whole
A business model for being socially accountable
Analyzing decisions by summing benefits and subtracting costs
A strategy to achieve competitive advantage with a low-cost model
The composition of fixed and variable costs that a business incurs during the operation
Managing a company's relationships and interactions with customers
Offering unique products or services to stand out from competitors
An innovation that significantly alters consumer and industry operations
Mixing a variety of investments within a portfolio for risk management
A sustainable competitive advantage over competitors
The cost advantage achieved when there is a higher level of production of a product; it arises due to the inverse relationship between the quantity produced and per-unit fixed costs
Gathering, analyzing, and dispensing information for strategic purposes
A planned approach to exiting a situation
Licensing business trademarks and methods for a recurring fee
Assessing performance differences to meet business requirements
Strategies focused solely on growth
Strategies for winning larger market share
Increasing production of goods or services at the same part of the supply chain
A plan to grow market share or profits through innovation
A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task; this task can be a new project or any other business activity
Quantifiable measures for gauging performance against goals
Elements necessary for an organization to achieve its objectives
A methodology for developing businesses and products that aim to shorten product development cycles and rapidly discover if a proposed business model is viable
Improving performance by defining objectives agreed upon by management and employees
Research on the condition, size, and trends of a market
A strategy to sell existing products in new markets
A strategy focusing on selling existing products in existing markets
Establishing a unique image for a product or service in the customer's mind
A situation where a product is distributed to the fullest extent in a market
The process of dividing a market of potential customers into groups, or segments, based on different characteristics
The buying, selling, dividing, and combining of different companies
Consistently and reliably executing the business strategy better than the competition
Shared assumptions, values, and beliefs governing behavior in organizations
The construction of interrelated groups within an organization
The business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff
A tool to analyze and monitor macro-environmental factors including political, economic, social, technological, environmental, and legal factors
A model that identifies and analyzes five competitive forces that shape every industry including the threat of new entrants, barganing power of suppliers, barganing power of consumers, threat of substitutes, and competitive rivalry in the industry
A process where managers study the portfolio of products or services in a business unit
The method companies use to price their products or services. It involves considering costs, competition, and customer demand
A growth strategy where a business aims to introduce new products into existing markets
The process of assigning and managing assets in a manner that supports an organization's strategic goals
A method of analyzing and identifying a firm's strategic advantages
The various sources from which a business earns money from the sale of goods or provision of services
The forecasting and evaluation of financial risks
A tool used to analyze possible future events by considering alternative possible outcomes
A strategic planning method that some organizations use to make flexible long term plans
A systematic collection and evaluation of past and present data
The process of identifying and analyzing stakeholders and their interests
The ability of an organization to stay flexible and adapt quickly to new market conditions
An agreement between two or more parties to pursue a set of agreed upon objectives
A method used by organizations to track the execution of their strategies
The process of identifying areas where an organization will concentrate its efforts
The process of predicting future trends in business, technology, and societal changes
The process of executing a strategy or plan to achieve organizational goals
A comprehensive plan that takes a holistic approach to tackle major objectives in an organization
Specific goals that are created from a company's mission statement
The method by which leaders of an organization determine its future direction
The process of establishing a distinct image for a product or service
The risk that failed business decisions may pose to a company
The management of the flow of goods and services
A strategic planning technique used to help a person or organization identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning
The concept that the value and performance of two companies combined will be greater than the sum of the individual parts
An approach to managing companies to maximize their value, typically measured by total shareholder return
A process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation
A statement that explains why a customer would choose a company's product or service over competitors
A strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer owns its supplier and/or distributor
A company's roadmap, indicating what the company wants to become by setting a defined direction for the company's growth