3.1

Question 1

Definition of an Aim

Answer 1

What the business is looking to achieve long term, expressed as an overall vision

Question 2

Definition of a Mission Statement

Answer 2

An expression of a businesses overall aim as well as its core value and context

Question 3

What is the purpose of a Mission Statement

Answer 3

To provide direction and a common purpose for employees

Question 4

Definition of a Corporate Objective

Answer 4

The specific performance goals for the business to achieve, set by upper management

Question 5

Definition of a Functional Objective

Answer 5

The day to day goals of departments derived from corporate objectives

Question 6

What must objectives be

Answer 6

Specific
Measurable
Achievable
Realistic
Time-bound

Question 7

What is Ansoff’s Matrix used for

Answer 7

Used to identify an appropriate corporate strategy and identify the level of risk associated

Question 8

Existing Market, Existing Product

Answer 8

Market Penetration

Question 9

Existing Market, New Product

Answer 9

Product Development

Question 10

New Market, Existing Product

Answer 10

Market Development

Question 11

New Market, New Product

Answer 11

Diversification

Question 12

3 Ways to use Market Penetration

Answer 12

-More regular use of the product
-Increased usage of the product
-Brand loyalty

Question 13

3 ways to use Market Development

Answer 13

-Entering new markets abroad
-Repositioning to different customers
-Seeking complementary locations

Question 14

3 ways to use Product Development

Answer 14

-Develop new versions of product
-Redesign packaging
-Relaunch heritage products

Question 15

How to use Diversification

Answer 15

Target new customers with entirely new or redesigned products

Question 16

What is Porters Generic Strategic Matrix

Answer 16

Identifies a range of strategies a business might adopt for a source of competitive advantage or scope of market

Question 17

What is a concern with Porters

Answer 17

If stuck in the middle, then business is unable to compete successfully with rivals

Question 18

Mass Market, Cost

Answer 18

Cost Leadership

Question 19

Mass Market, Differentiation

Answer 19

Differentiation

Question 20

Niche Market, Cost

Answer 20

Cost Focus

Question 21

Niche Market, Differentiation

Answer 21

Differentiation Focus

Question 22

Definition of Portfolio Analysis

Answer 22

Carrying out a detailed evaluation of its full range of products to identify an appropriate strategy

Question 23

Features of Star

Answer 23

-Positive cash flow
-Needs minimal resources
-Focus on building recognition

Question 24

Features of a Question Mark

Answer 24

-Often negative cash flow
-Needs investment
-Focus on increasing market share

Question 25

Features of a Cow

Answer 25

-Positive cash flow -Needs minimal resources -Focus on maintaining market share

Question 26

Features of a Dog

Answer 26

-Negative cash flow -Would need heavy investment -Focus would be to divest

Question 27

What is Reputation

Answer 27

-A business will gain a competitive advantage through excellent reputation for quality -A differentiation strategy is likely

Question 28

What is Innovation

Answer 28

-A Business may be particularly effective at responding to external change -A Market Development strategy is likely

Question 29

What is Architecture

Answer 29

-A businesses relationships with its main stakeholders -Low cost or Product Development strategy is likely

Question 30

Effect of Strategic and Tactical Decisions on Human Resources

Answer 30

-Staff may face redundancies or relocation -More training may be needed

Question 31

Effect of Strategic and Tactical Decisions on Physical Resources

Answer 31

-More capital investment is needed -Changes to production processes

Question 32

Effect of Strategic and Tactical Decisions on Financial Resources

Answer 32

-More finance may need to be sourced -Marketing budgets will need to increase

Question 33

How should SWOT be used

Answer 33

-Strengths = Harnessed -Weaknesses = Eliminated -Opportunities = Seized -Threats = Mitigated

Question 34

What is a Strength

Answer 34

-What the business is good at -Internal resources

Question 35

What is Weaknesses

Answer 35

-What the business does poorly -Lack of Competitive Advantage

Question 36

What is an Opportunity

Answer 36

-Option a business may exploit for further success -Favourable economic factors

Question 37

What is a Threat

Answer 37

Hazards that have the potential to damage business performance

Question 38

What is Political

Answer 38

The extent to which local and national government is expected to influence the business

Question 39

4 Examples of Political

Answer 39

-Trade restrictions -Political ideology -Government stability -Tax regulations

Question 40

What is Economic

Answer 40

The extent wo which economic indicators directly impact business performance

Question 41

4 Examples of Economic

Answer 41

-Inflation -Exchange rates -Unemployment -Business cycle

Question 42

What is Social

Answer 42

The extent to which personal attitudes, values, culture and demographic change are expected to affect business

Question 43

4 Examples of Social

Answer 43

-Education -Ethics -Health -Social Mobility

Question 44

What is Technological

Answer 44

The extent to which technological change and innovation are expected to impact business

Question 45

4 Examples of Technological

Answer 45

-R+D -Quality -Online Presence -Production and Distribution

Question 46

What is Legal

Answer 46

The extent to which changes in law and regulations are expected to impact the business

Question 47

4 Examples of Legal

Answer 47

-Taxation -Employment -Health and Safety -Advertising

Question 48

What is Environmental

Answer 48

The extent to which changes in attitudes and governmental policy towards environmental protection

Question 49

4 Examples of Environmental

Answer 49

-Air -Energy -Disposal of materials -Changing infrastructure

Question 50

5 Changes in Market Structure

Answer 50

-Growth of Internet -Changes in consumer tastes -Changes in regulatory framework -Businesses enter/leave market -Globalisation

Question 51

What is Porters 5 Forces

Answer 51

Key pressures that impact the ability of a business to compete with rivals

Question 52

Name Porters 5 Forces

Answer 52

-Threat of New Entry -Threat of Substitution -Supplier power -Buyer power -Industry Rivalry