1.3 Flashcards
Vision statement
organisations long term ambitions that it hopes to achieve in the future
Mission statement
A mission statement is a statement of a business’s core value/aim and it is phrased in a way that will motivate the employees and attract the interest of
external stakeholders
Advantages of vision and mission statements
- helps with decision making
- motivation
Aims and objectives + its advantages
Aims: long term goals of an organisation
Objectives: short-to-medium term specific targets that help an organisation achieve its aims
strategic objectives: long term goals of a business
tactical objectives: short term goals
operational objectives: day to day goals
Advantages:
- motivating
- measure+ control business performance
- sense of direction/purpose
Strategy
plan which helps achieve aim/objective, longer term
tactics
plan to help achieve aim/objective. Shorter term
The need for changing objectives
Internal
- age of business
- finance available
- change in leadership
- change in type/size
External
- state of economy
- pressure groups
- new tech provides new opportunities
Benefits and draw backs of ethical objectives + ethics
Ethics: moral values and believes that shape decision making and business activity
Advantages:
- customer loyalty
- brand image
- motivation
Disadvantages:
- higher costs
- stakeholder conflict
- may need to provide training
Corporate social responsibility (CSR)
concept that business has an obligation to operate in a way that will have a positive impact on society, leads to more sustainable business model
csr is evolving, what mightve seen acceptable b4 may not be acceptable now
SWOT analysis use and what it is
decision making tool - strengths, weaknesses, opportunities, threats. Evaluates organisation and its external environment.
Advantages of SWOT and disadvantages
- simple and quick
- reduces risk of decision making
- can see external threats
disadvantages:
- not detailed
- external environment is always changing
different strategies by SWOT
growth strategies: achieved by combining strengths with opportunities
defensive strategies: adopted when threats and weaknesses exist in combination
re-orientation strategies: focuses on addressing weakness where there is an opportunity
Defusing strategies: designed to eliminate threats by focusing on strengths
Ansoff matrix
Looks at growth potential in terms of market and product
- market penetration
- product development
- market development
- diversification
Market penetration
- low risk: existing product for existing market
- need to do promotion and build loyalty to drive out competitors
- no need to do as much market research
- better if market has growth potential
Product development
- new product for existing market
- need to do research and development, spend time and resources
- failure if unable to meet customer demand
