ICAB AL Strategic Business Management key terms

A structured scan of the political, economic, social, technological, legal and environmental forces surrounding an organisation, used to identify shifts that may create opportunities or threats before competitors respond.

A model judging industry attractiveness through rivalry among existing firms, threat of new entrants, threat of substitutes, bargaining power of buyers and bargaining power of suppliers.

A set of firms within an industry that compete on similar dimensions and target comparable customers, so that movements between groups signal competitive repositioning.

Building several plausible, internally consistent pictures of the future so that strategy can be tested against uncertainty rather than a single forecast.

A bundle of skills and technologies that customers value, that is hard for rivals to imitate, and that can be applied across several products or markets.

The argument that sustained advantage comes from resources that are valuable, rare, difficult to copy and supported by the organisation's routines and structures.

A test asking whether a resource is valuable, rare, costly to imitate and supported by organisation, with each answer indicating competitive parity, temporary advantage or sustained advantage.

The sequence of primary and support activities through which an organisation converts inputs into customer value, analysed to locate cost drivers and sources of differentiation.

The wider web of partners, suppliers, distributors and complementors whose combined contributions deliver value to the end customer, extending analysis beyond a single firm's chain.

Systematically comparing processes, costs or performance against internal units, competitors or best-in-class organisations to identify gaps and improvement targets.

A grid combining existing and new products with existing and new markets to produce market penetration, product development, market development and diversification options.

A portfolio tool plotting business units by market growth and relative market share, labelling them stars, cash cows, question marks or dogs to guide investment priorities.

Entering products or markets new to the firm, which may be related through shared capabilities or unrelated, each carrying different risk and management demands.

The extra value a corporate centre adds to its business units that exceeds what alternative owners would create, justifying multi-business ownership.

A test of a strategic option for suitability (does it fit the analysis), acceptability (does it satisfy stakeholder returns and risk limits) and feasibility (can it be resourced and delivered).

Treating investment decisions as staged choices that can be deferred, expanded or abandoned as uncertainty resolves, giving flexibility a calculable value.

A gradual divergence between an organisation's strategy and a changing environment, often because past success entrenches assumptions and change is delayed.

A sequenced change method: create urgency, build a coalition, form a vision, communicate it, remove obstacles, secure short-term wins, consolidate gains and embed change in culture.

A framework mapping an organisation's paradigm through stories, rituals, symbols, power structures, organisational structures, control systems and routines.

A typology of organisational forms, such as simple structure, machine bureaucracy, professional bureaucracy, divisionalised form and adhocracy, each suited to different conditions.

A design in which staff report along two dimensions, typically function and project or product, trading clear accountability for resource flexibility and cross-functional coordination.

The analysis of conflicts between principals who delegate work and agents who act for them, and of incentive and monitoring mechanisms that align those interests.

A view that managers are motivated to serve the organisation's long-term interests, so governance should enable judgement rather than assume self-interest.

A set of principles and provisions on board composition, independence, committees, audit and remuneration, usually applied on a comply-or-explain basis.

A board subcommittee of independent directors overseeing financial reporting, external audit and internal control, providing a channel for auditors to raise concerns.

The degree to which managers prioritise a stakeholder, based on that party's power, legitimacy and urgency of its claim.

Reporting and managing performance against economic, social and environmental outcomes rather than profit alone, supporting sustainability claims to stakeholders.

A concise corporate report explaining how strategy, governance, performance and prospects create value over time across multiple capitals.

A widely used model of internal control built on control environment, risk assessment, control activities, information and communication, and monitoring activities.

The amount and type of risk an organisation is willing to accept in pursuing its objectives, expressed in statements or limits that guide decisions.

A log recording identified risks with their likelihood, impact, owner and mitigation actions, used to monitor and prioritise risk treatment.

A performance system measuring financial, customer, internal process and learning perspectives, linking measures to objectives through cause-and-effect assumptions.

A small number of areas in which satisfactory results are essential for an organisation to achieve its mission, forming the basis for key performance indicators.

A quantified measure chosen to track progress on a critical success factor, ideally specific, measurable, achievable, relevant and time-bound.

A one-page map of how an organisation creates, delivers and captures value, covering customer segments, value propositions, channels, relationships, resources, activities, partners, costs and revenues.

An offering that starts simpler or cheaper in a neglected segment and improves until it displaces established competitors, often ignored by incumbents focused on demanding customers.

The organisation-wide use of digital technology to change operating processes, customer experience and business models, not merely the automation of existing tasks.