Fundamentals of Management, 8th ed

effective strategy

A strategy that

promotes a superior

alignment between

the organization and

its environment and

the achievement of

strategic goals

strategy

A comprehensive plan

for accomplishing

an organization’s

goals

strategic

management

A comprehensive

and ongoing

management

process aimed at

formulating and

implementing

effective strategies; a

way of approaching

business

opportunities and

challenges

distinctive

competence

An organizational

strength possessed

by only a small

number of

competing firms

scope

When applied to

strategy, it specifies

the range of markets

in which an

organization will

compete

Chapter 3: Planning and Strategic Management

7 1

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with a few related activities in other food-processing areas. In contrast, its biggest com-

petitor, Mars, has adopted a broader scope by competing in the pet food business and

the electronics industry, among others. Some organizations, called conglomerates, com-

pete in dozens or even hundreds of markets.

A strategy should also include an outline of the organization’s projected