2 - objectives and strategy Flashcards by Alicia Chown

whats the hierarchy of objectives?

Aim 
Corporate Objectives 
Business Objectives 
Department Objectives 
Employee Objectives

How well did you know this?

Not at all

Perfectly

Factors effecting the setting of objectives?

size of business 
trends
economy 
finances 
competition 
government 
personnell 
stakeholders 
nature of product

How well did you know this?

Not at all

Perfectly

strategy is used to achieve objectives

outline how strategy works?

Objective
Internal/External analysis e.g. SWOT and PESTELE 
(Contingency plans incase things change)
Strategies
Implement 
Evaluate and review

How well did you know this?

Not at all

Perfectly

a successful strategy will have/be …

clear purpose
step by step methods
contingency plans
flexibility and dynamic
user friendly
communicated
customer orientated

How well did you know this?

Not at all

Perfectly

4 types of strategy:

functional
business
corporate
global

How well did you know this?

Not at all

Perfectly

parts to porters ‘five forces analysis’

threat of new entrants
bargaining power of suppliers
bargaining power of buyers
threat of substitutes
middle - intensity of rivalry in the industry
(all leads to rivalry among existing competitors)

How well did you know this?

Not at all

Perfectly

how would you evaluate a strategy?

seeing if objectives have been achieved

How well did you know this?

Not at all

Perfectly

what is a contingency plan?

worst case scenario plan - procedures in place for these situations

How well did you know this?

Not at all

Perfectly

contingency plan by function

HR - labour (zero hour contracts)
Marketing - alternative services
Financial - contingency budgets
Production - backup technology

How well did you know this?

Not at all

Perfectly

crisis management

where the situation is so adverse it has huge negative impacts on the business

How well did you know this?

Not at all

Perfectly

stakeholder

a person with an interest in the success of a business

How well did you know this?

Not at all

Perfectly

internal stakeholders?

employees and owners etc

How well did you know this?

Not at all

Perfectly

external stakeholders?

suppliers and community etc

How well did you know this?

Not at all

Perfectly

what will the owner want?

a satisfactory return on their investment
profits
good reputation

How well did you know this?

Not at all

Perfectly

what will the employees want?

good and fair wage
job security
job satisfaction

How well did you know this?

Not at all

Perfectly

what will the suppliers want?

regular orders

- prompt payment

How well did you know this?

Not at all

Perfectly

what will the local community want?

jobs
involvement
respect

How well did you know this?

Not at all

Perfectly

what do the customers want?

good quality
low prices
innovation
customer service

How well did you know this?

Not at all

Perfectly

what do the shareholders want?

good return on their investments

How well did you know this?

Not at all

Perfectly

the government are not direct stakeholders.. but why do they have an interest in the business?

they want it to be a success as if more people are employed as a result the business will pay out less social security benefits etc

How well did you know this?

Not at all

Perfectly

what is a mission statement?

a mission statement gives a general idea of what the business plans to do and its purpose to write this down is for the benefit of the stakeholders

How well did you know this?

Not at all

Perfectly

aims of most businesses include?

survival
breaking even
gain a share of the market
profit

How well did you know this?

Not at all

Perfectly

what does setting objectives provide?

a sense of direction
motivational force
greater control over business functions

How well did you know this?

Not at all

Perfectly

strategic objectives

long term objectives

How well did you know this?

Not at all

Perfectly

tactical objectives

short term objectives (day to day)

what are smart objectives?

``` specific measurable achievable realistic timed ```

what do some internal business constraints include?

- lack of finance - poor communication - conflict between departments

what do some external business constraints include?

- changes in the law - state of the economy - behaviour of competitors

what is SWAT analysis?

strengths, weaknesses - internal audit | opportunities, threats - external audit

whats the point of porters 5 forces model?

a system for analysing the level of competition in an industry. looks at the forces that determine the level of competitive intensity and the attractiveness of the industry

bargaining power of suppliers

suppliers who can force up the price of their products through a strong power to bargain, will cut profits at the firm

bargaining power of consumers

forces prices down and reduce profitability

threat of new entrants

firm enters the market and takes a share of that market and increases the competitive intensity

threat of substitutes

substitute products entering the market increases competition: a business who fails to notice and respond to this will loose market share

degree of competitive intensity

where this is high it is likely that the results will be innovation, prices wars and more promotion - reducing the level of profitability which can be achieved

using the model...

when a business is moving into a new market sector the model can be used to dress the potential issues however, porters is not always able to obtain all required information about the threats that exist

business plan?

a formal written document which outlines how a business is going to achieve its objectives

what does strategic review enable?

- analysis of SWOT and PEST to be undertaken - analysis of key performance areas/ indicators to be identified - identification of good/bad practice in the firm

advantages of business plans?

- gives the business a sense of direction - forces evaluation of current objectives and strategies - sets out of role/goal for each department - encourages communication and cooperation

what questions must a business plan answer? (W)

``` what are we aiming to achieve? why? what needs to be done? who? when? what resources? ```

disadvantages of a business plan?

opportunity cost:

the cost of the next best alternative foregone. the time etc spent on one activity which could have been spent on another

what is the plan,do,review process?

Plan: establish objectives and the course of action as well as resources necessary Do: implement the plan ensuring that all areas of the business understand their part Review: there will need to be a formal ongoing evaluation process and then a final review at the end

advantages of plan do review

- approach is methodical forcing a strategic approach - encourages continuous improvements of the business - employees more focused so likely to be motivated and efficient

disadvantages of plan do review

- lengthy process so considerable opportunity cost - cycle can be inflexible - some employees may not like ongoing review

contingency planning?

Planning for what will happen if things go wrong. Agreed course of action is in place and is ready to be used if necessary

'firefighting'?

When a manager spends time trying to fix unforeseen problems/emergencies

crisis management?

uncertainty:

The inability to calculate the costs and benefits of a decision accurately

risk:

The chance/possibility of an adverse occurrence

reward:

The possible return that an activity may make

Unquantifiable risk:

Quantifiable risk:

Personal risk:

Economic risk could be managed by?

Political risk could be managed by:

Competitive risk could be managed by:

Organisational risk could be managed by:

Stakeholder risk could be managed by:

Methods of forecasting?

Qualitative forecasting?

Methods of qualitative forecasting:

Quantitive methods of forecasting:

Limitations of forecasting?

Decision making tools?

Ansoffs matrix?

Market penetration:

Market development:

Product development:

Diversification:

Conflicts in decision making?

Decision trees:

Benefits of decision trees?

Limitations of decision trees?

2 - objectives and strategy Flashcards

(74 cards)