| Term | Definition |
| Strategy Implementation | Strategy Implementation is a process by which strategies and policies are put into action through the development of programs, budgets, and procedures. |
| Program | A program is a statement of the activities or steps needed to accomplish a single-use plan. It makes a strategy action oriented. It may involve restructuring the corporation, changing the company’s internal culture, or beginning a new research effort. |
| Budget | A budget is a statement of a corporation’s programs in terms of dollars. Used in planning and control, a budget lists the detailed cost of each program. |
| Procedures | Procedures, sometimes termed Standard Operating Procedures (SOP), are a system of sequential steps or techniques that describe how a particular task or job is to be done. They typically detail the various activities that must be carried out in order to complete the corporation’s program. |
| Marketing strategy | Marketing strategy deals with pricing, selling, and distributing a product. |
| Market development strategy | Using a market development strategy, a company or business unit can (1) capture a larger share of an existing market for current products through market saturation and market penetration or (2) develop new markets for current products. |
| Product development strategy | Using the product development strategy, a company or unit can (1) develop new products for existing markets or (2) develop new products for new markets. |
| Line extension | Using a successful brand name to market other products is called line extension and it is a good way to appeal to a company’s current customers. |
| ‘’Push’’ and ‘’Pull’’ marketing strategies | A push strategy by spending a large amount of money on trade promotion in order to gain or hold shelf space in retail outlets. Trade promotion includes discounts, in-store special offers. And advertising allowances designed to ‘’push’’ products through the distribution system. A pull strategy, in which advertising ‘’pulls’’ the products through the distribution channels. |
| Skim pricing | For new-product pioneers, skim pricing offers the opportunity ‘’skim the cream’’ from the top of the demand curve with a high price while the product is novel and competitors are few. |
| Penetration pricing | Penetration pricing in contrast, attempts to hasten market development and offers the pioneer the opportunity to use the experience curve to gain market share with a low price and then dominate the industry. |
| Financial strategy | Financial strategy examines the financial implications of corporate and business-level strategic options and identifies the best financial course of action. It can also provide competitive advantage through a lower cost of funds and flexible ability to raise capital to support a business strategy. Financial strategy usually attempts to maximize the financial value of a firm. |
| Research and Development (R&D) Strategy | R&D Strategy deals with product and process innovation and improvement. It also deals with the appropriate mix of different types of R&D (basic, product, or process) and with the question of how new technology should be accessed- through internal development, external acquisition, or strategic alliances. |
| Technological leader technological follower | One of the R&D choices is to be either a technological leader, pioneering an innovation, or a technological follower, imitating the products of competitors. |
| Operation strategy | Operation strategy determines how and where a product or service is to be manufactured. It deals with the level of vertical integration in the deployment of physical resources, and relationships with suppliers. It should also deal with the optimum level of technology the firm should use in its operations processes. |
| Information technology strategy | Corporations are increasingly using Information technology strategy to provide business units with competitive advantage. When FedEx first provided its customers with Power Ship computer software to store addresses, print shipping labels, and track package location, its sales jumped significantly. |