BHAG is a term introduced into management practice by Jim Collins and Jerry Porras in their book “Built to Last: Successful Habits of Visionary Companies”; it defines pursuing a long-term challenge for 10 to 25 years, while being guided by the core values and purpose of your company.

The company’s mission/vision is a formalised declaration expressing the management’s ambitions regarding the company future and directions of its development. At the same time, these messages constitute some sort of a promise and describe the norms and values that the company adheres to.

Corporate strategy, often referred to as the portfolio strategy as well, defines general directions of the organisation’s development from the point of view of its activity portfolio.

Cost leadership strategy consists in achieving a privileged cost position in relation to competitors and attracting customers with a lower product price.

Differentiation strategy, also known as the diversification strategy or quality leadership strategy, consists in equipping products with some unique features that the customers perceive as exceptional and original.

Diversification strategy leads to the transformation of a single-business enterprise into a multi-business enterprise composed of many separate SBUs operating under common management and using common strategic resources of the corporation.

Focus strategy assumes conscious and deliberate narrowing the size of activity to a specific market segment and thus avoiding confrontation with strong competitors from the entire sector.

Functional strategies are long-term assumptions of operation in individual functions of the company. Therefore, at this level, we can talk about the following strategies: marketing, financial, personnel, logistics, information, product, etc.

Horizontal integration , as opposed to vertical (technological) integration, means expanding the company’s activity through business combinations within the same industry, usually the current competitors or producers of substitute goods.

Incremental strategy – an emergent (flowing, emerging) strategy, describing a general direction of development and leaving a considerable freedom for decisions about the future under conditions of a high operational efficiency.

Integration (business combination) transactions consist typically of acquisitions or mergers of companies in order to achieve specific strategic and financial goals.

M&A (mergers and acquisitions) are integration (business combination) transactions that consist typically of acquisitions or mergers of companies in order to achieve specific strategic and financial goals. Acquisition (purchase) transactions usually occur in two basic forms, namely: mergers and acquisitions. In the commonly used business terminology, these transactions are abbreviated as M&A.

There are basically two forms of acquisition (purchase) transactions:  mergers and acquisitions. In the commonly used business terminology, these transactions are abbreviated as M&A.

SBU-level strategy or business strategy is a strategy for a specific business line, business unit, industry or area of strategic activity. It can also be referred to as competitive strategy.

Single-business strategy , i.e. focusing on the main business, means directing the enterprise’s operations towards one, specialised business, which allows for the expansion of the strategic potential in a given field, being the company’s strategic domain.

Synoptic strategy – a structured, specific strategy that sets out measurable and time-bound strategic goals and tasks together with their measures and the monitoring system.

Vertical integration refers to expansion into the areas of activity that are a backlink in the process chain – whenever the connection process involves purchasing companies, suppliers of raw materials, suppliers of semi-finished products, etc.