business definitions

• What is an industry?

  Groups of firms producing similar products/services
• What is a sector?

  A broader grouping including industries or markets
• What does the PESTEL Framework analyze?

  External macro-environmental factors influencing industries
• What defines a market?

  A group of customers with specific needs
• What does demand refer to in business?

  Buyers' willingness and ability to purchase
• What is supply in a business context?

  The quantity of a product sellers provide
• What does Porter’s Five Forces framework analyze?

  The competitive dynamics of an industry
• What is the Value Net framework used for?

  Mapping relationships to explore value-creating cooperation
• What are resources in a business context?

  Tangible and intangible assets an organization possesses
• What are capabilities in an organization?

  The ability to integrate and deploy resources
• What are core competencies?

  Unique capabilities providing significant value
• What are dynamic capabilities?

  Ability to adapt resources to changing conditions
• What are threshold capabilities?

  Essential capabilities needed to compete
• What are distinctive capabilities?

  Capabilities that differentiate a business from competitors
• What is organizational knowledge?

  Unique, collective intelligence specific to an organization
• What is SWOT Analysis used for?

  Evaluating internal strengths and weaknesses
• What does the TOWS Matrix link?

  Internal and external factors to generate strategies
• What does the VRIN Framework focus on?

  Criteria for core competencies: Value, Rarity, Inimitability, Non-substitutability
• What does the Ansoff Matrix identify?

  Growth directions based on product and market dimensions
• What does the BCG Matrix categorize?

  Strategic Business Units based on market share and growth
• What does the McKinsey Matrix evaluate?

  Strategic Business Units using industry attractiveness and strength
• What does the Parenting Matrix assess?

  The fit between SBUs and corporate capabilities
• What is strategy in a business context?

  The direction and scope to achieve advantage
• What is competitive advantage?

  The ability to outperform competitors by delivering value
• What is cost leadership?

  A strategy focusing on being the lowest-cost producer
• What is differentiation in business strategy?

  Offering unique products justifying a price premium
• What is a focus/niche strategy?

  Targeting specific market segments with tailored offerings
• What are trade-offs in strategy?

  Deliberate decisions to prioritize certain capabilities
• What is marketing?

  The process of creating value and building relationships
• What is Customer Perceived Value (CPV)?

  Evaluation of benefits and costs relative to alternatives
• What is a Unique Selling Proposition (USP)?

  The feature that makes a product unique
• What does Segmentation, Targeting, and Positioning (STP) involve?

  Dividing the market, selecting targets, positioning products
• What is the Marketing Mix (4Ps)?

  A framework including Product, Price, Promotion, Place
• What is innovation in a business context?

  The commercial application of an invention
• What is creative destruction?

  Replacement of old processes with newer ones
• What is product innovation?

  Innovation focusing on product features
• What is process innovation?

  Improving production and distribution methods
• What is open innovation?

  Leveraging external knowledge for innovation
• What is closed innovation?

  Relying solely on internal resources for innovation
• What is management in a business context?

  The process of planning, organizing, leading, and controlling