The Strategist's Lexicon: 10 Advanced Terms for Business Planning

Effective business planning and strategy require a specific vocabulary. Using the right terms not only ensures clarity but also signals a deep understanding of business principles. For professionals looking to contribute to strategic discussions, mastering this lexicon is key. This guide breaks down 10 advanced but essential terms used in business planning.

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10 Advanced Business Planning Terms

• Due Diligence

  The research and analysis of a company or organization done in preparation for a business transaction (like a merger, acquisition, or investment).

  Before acquiring the startup, the venture capital firm conducted extensive due diligence on its financials and technology.
• Synergies

  The concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts. Often cited as a reason for a merger or acquisition.

  The merger is expected to create significant cost synergies by combining our sales and marketing teams.
• Business Moat

  A distinct, sustainable competitive advantage that a company has over its rivals, making it difficult for other companies to enter its market.

  Apple's strong brand loyalty and ecosystem of products create a powerful business moat.
• Scalability

  The capability of a system, network, or process to handle a growing amount of work, or its potential to be enlarged to accommodate that growth.

  Our cloud-based business model offers excellent scalability, allowing us to serve more customers with minimal additional cost.
• Blue-sky thinking

  Creative thinking that is not limited by current beliefs, assumptions, or structures. It's about brainstorming with no constraints.

  The R&D department's blue-sky thinking session generated several innovative ideas for future products.
• Core Competency

  A harmonized combination of multiple resources and skills that distinguish a firm in the marketplace; the fundamental strength of a business.

  Our company's core competency is our expertise in data analytics and machine learning.
• Benchmarking

  The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.

  Through benchmarking, we discovered our customer service response times are slower than the industry average.
• Value Proposition

  A promise of value to be delivered, communicated, and acknowledged. It is also a belief from the customer about how value will be delivered, experienced, and acquired.

  Our value proposition is to provide the highest quality materials at a mid-market price point.
• Go-to-Market (GTM) Strategy

  An action plan that specifies how a company will reach target customers and achieve competitive advantage.

  Our go-to-market strategy for the new software includes a combination of content marketing and direct sales outreach.
• Contingency Planning

  The process of preparing an organization to respond coherently to an unplanned event. It involves identifying potential risks and creating a plan to address them.

  Our contingency planning for supply chain disruptions saved us from major delays during the port strike.

Plan and Communicate with Precision

These terms are the language of modern business strategy. Understanding and using them correctly will empower you to think more strategically and communicate your plans with greater clarity and impact.

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