A story of how the firm will create value for customers and do so profitably. Contribution margins: the difference between what you charge for you product and the variable costs of the product (i. e. contribute to your ability to cover your fixed costs. ) Gross margin: total amount of margin you made and is calculated as the number of units sold times the contribution margin. What is strategic management: strategic management: process that addresses the organization"s competitive challenges which results in the organizational strategy (outcome) Intended strategies vs. emergent strategies o: generic vs. Describes the consistent way the company positions itself. Miles & snow: prospector, defender, analyzer, or reactor: example of aligning hr and organizational. Phase 1 strategy formulation: strategic direction decided upon by defining the company"s mission and goals, its external opportunities and threats and its internal strengths and weaknesses (swot). Phase 2 strategy implementation: follow through on the chosen strategy.