A strategy in a business context refers to a comprehensive plan designed to achieve long-term goals and objectives. It involves the allocation of resources and the implementation of actions to gain a competitive advantage.
Sub-optimization refers to the process of utilizing resources or strategies to less than their maximum potential, which results in achieving less than the optimal output or outcome.
Performance targets established by middle management for achieving specific organizational outcomes. Also called tactical plans.
A takeover represents a change in the controlling interest of a corporation. This can occur through friendly acquisition and merger, or via an unfriendly bid that might be contested by the target company's management employing defensive strategies known as shark repellent techniques.
A trade area, also known as a market area, is the geographic region from which a business draws its customers. Understanding trade areas helps businesses determine the potential demand for their products or services and informs decisions on location and marketing strategies.
A trade secret is any formula, pattern, machine, or process of manufacturing used in a business that may provide a competitive advantage; it includes plans, processes, tools, mechanisms, or compounds known only to its owner and necessary employees.
A trade-off involves giving up one benefit or advantage to gain another that seems more favorable. This concept is prevalent in various decision-making processes where resources such as time, money, and effort are limited. Trade-offs are a fundamental aspect of economics, business strategy, and personal decision-making. For example, investing in education might involve a financial loss in the short term but yield higher earning potential in the future.
Unbundling refers to the separation of a business or its assets into distinct entities, generally achieved by selling off certain subsidiaries, business lines, or parts of a security. This strategic action can enable businesses to focus on core operations, optimize performance, and better realize underlying value.
Goods or services sold at the full established price without allowances or discounts.
Vertical integration refers to a strategy where a firm takes control over several production or distribution steps involved in the creation of its product or service. This can include owning the suppliers of raw materials, the manufacturing process, and the distribution channels.
Vertical integration involves the combination of companies operating at different stages within the same industry's supply chain. It strengthens control over production, distribution, and other critical steps, often resulting in increased efficiency and cost savings.
