Straight Salary Plan – A sales force compensation plan that relies exclusively on salary as a financial reward for salespeople. A salary is a fixed sum of money paid at regular intervals. the amount paid to the salespeople is a function of the amount of time worked rather than any specific performance. Two sets of conditions favor the use of straight salary compensation plan. These are (1) when management wishes to motivate people to achieve objectives other than short-run sales volume, and (2) when the individual salesperson’s impact on sales volume is difficult to measure in a reasonable time.
Strategic Alliances – Cooperation strategy between companies to jointly purchase a common goal. They are also referred to as collaborative agreements or global strategic partnerships.
Strategic Business Unit (SBU) – From a strategy formulation point of view, diversified companies are best thought of as being composed of a number of businesses (or SBU’s). These organizational entities are large enough and homogenous enough to exercise control over most strategic factors affecting their performance. They are managed as self contained planning units for which discrete business strategies can be developed.
Strategic Fit – The degree to which the growth strategy that allows the business to achieve its performance objectives can be implemented within the constraints imposed by past strategic commitments, resource availability, and other historical rigidities. Often, trade offs and changes are required in the growth strategy prior to implementation.
Strategic Intent – An ambitious organizational goal that is not proportional to current resources and capabilities and remains stable overtime. To ensure long-term success, management envisions a desired leadership position and then establishes the criterion that the organization will use to chart its progress. The concept encompasses an active management process that includes focusing the organization’s attention on the essence of winning; motivating people by communicating the value of the target; leaving room for individual and team contributions; sustaining enthusiasm by providing new operational definitions as circumstances change; and using intent consistently to guide resource allocations.
Strategic Management Process – An approach to management that incorporates the following elements: (1) focusing planning process on the search for competitive advantage; (2) the integration of strategic planning with operational and functional level; (3) orientation toward funding and implementing strategies rather than discrete projects; and (4) greater emphasis and continued focus on strategic issues.
Strategic Market Planning – The planning process that yields decision in how a business unit can best compete in the markets it elects to serve. Strategic market decisions are based on assessments of product market and pertain to the basis for advantage in the market. The plan that is the output of the process serves as blueprint for the development of the skills and resources of a business unit and specifies the results to be expected. In many companies these are called strategic business plans.
Strategic Planning – The consideration of current decision alternatives in light of their probable consequences over time. The practice of strategic planning incorporates four distinguishing features: (1) an external orientation; 92) a process for formulating strategies; (3) methods for analysis of strategic situations and alternatives; and (4) A commitment to action.
Strategic Sales Program – A program that organizes and plans the company’s overall personal selling efforts and integrates these with the other elements of the firm’s marketing strategy. The strategic sales program should take into account the environmental factors faced by the firm.
Strategic Thrust – A compelling theme that knits together otherwise independent activities focuses the energies of functional groups on things that matter in the market. The essence of this theme is a shared understanding of why the business is better than the competition and what has to be done to keep it in front.
Strategic Window – The limited time period in which the fit between the factors critical to success in a market and the distinctive competences of a business competing in that market is at an optimum. The implication is that business should prepare for the respond appropriately to the “opening” and “closing” of strategic windows.
Strategy – This describes the direction the business will pursue within its chosen environment and guides the allocation of resources and effort. It also provides the logic that integrates the perspectives of functional departments and operating units, and points them all in the same direction. The strategy statement for a strategic business unit is composed of three elements: (1) a business definition that specifies the area in which the business will compete; (2) a strategic thrust that describes whether a competitive advantage is to be gained by focusing the scope or by exploiting an asymmetry in the position of the business; and (3) supporting functional strategies that are activities designed for consistency and comparability with other activities and the strategic thrust.
Stratified Sample – A probability sample that is distinguished by the two-step procedure in which (1) the parent population is divided into mutually exclusive and exhaustive subsets and (2) a simple random sample of elements is chosen independently from each group or subset.
STRATPORT – A decision support system for the allocation of a firm’s financial resources across its strategic business units (SBUs). The approach models the impact of general marketing expenditures on both market share and on the firm’s cost structure. Given a specific portfolio strategy, the system can evaluate the profit and cash and cash flow implications of following the strategy overtime. Alternately, the approach can determine the optimal allocation of marketing expenditures across SBUs in order to maximize net present value over a specified time horizon.
Strict Liability – 1. (legislation definition) A doctrine under which a seller is held liable for injury caused by a defective product even though the seller exercised all possible care in the preparation and sale of the product and the user had not bought the product from or entered into any contractual relation with the seller. 2. (product development definition) An extreme variant of product liability 9in common practice today) in which the producer is held responsible for putting a defective product on the market. Under strict liability, there need to be no negligence, sale no longer has to be direct from a producer to user (privity of contact), and no disclaimer statement relieves the producer of this responsibility.