The Balanced Scorecard (BSC) is a strategic planning and management system used by organizations to align business activities with the vision and strategy of the organization. It enhances internal and external communications and monitors organizational performance against strategic goals.
The BCG Matrix, also known as the Boston Consulting Group Matrix, is a tool that helps companies prioritize their product portfolio based on market growth and market share. It provides a visual representation to identify which products or business units to invest in, develop, or divest.
The Chartered Institute of Management Accountants (CIMA) is a leading professional body in the field of management accountancy. It provides support, education, and certification for accounting professionals globally, emphasizing the integration of accounting skills with strategic business management.
Executive Information Systems (EIS) are specialized, online strategic management systems that utilize central databases to fulfill organizational information analysis requirements, assisting in strategic decision-making processes.
A fallback option is a pre-designed alternative plan or reserved position that management keeps in place to ensure continuity and stability if the primary option or strategy fails.
The Learning and Growth Perspective of the Balanced Scorecard focuses on the intangible assets like human capital, information capital, and organizational capital that drive continuous improvement and growth in an organization’s strategy.
Long-range planning involves strategizing for periods exceeding five years, taking into account the future impacts of present, short-range, and intermediate-range events. It is a crucial aspect of strategic management and organizational development.
Management by Objectives (MBO) is a strategic management approach wherein performance goals are jointly determined by both management and employees, fostering alignment and mutual agreement on objectives and performance standards.
Organizational planning refers to the process of transforming organizational objectives into specific management strategies and tactics designed to achieve these objectives. It is one of the most crucial management responsibilities.
Porter's Five Forces is a powerful framework for analyzing the competitive forces that shape every industry, and it helps determine an industry's weaknesses and strengths. Developed by Michael E. Porter, it provides insights into the five forces that drive competition within an industry and influence its overall profitability.
A real option is an investment embedded within a project or a business activity that provides the firm with the flexibility to make decisions that can have significant financial implications.
Reorientation refers to the strategic redirection or adjustment of a property or business to appeal to a new target market. This process involves rebranding, altering the product or service offerings, and sometimes restructuring the business model to better align with the preferences and demands of a different customer base.
Synergy describes the added value created by merging two separate firms, leading to a greater return than the sum of their individual contributions. This enhanced return is typically anticipated during merger or takeover activities.
Identifying and managing value drivers is crucial for forecasting future cash flows and ensuring the long-term viability of a business.
