3.1

Question 1

objectives definition

Answer 1

statement of specific outcomes that are able to be achieved

Question 2

hierarchy of business objectives

Answer 2

• mission
• corporate
• functional
• team
• individuals

Question 3

purposes of corporate objectives

Answer 3

• provide strategic focus
• inform decision making
• measure the performance of the firm as a whole
• set the scene for more functional objectives

Question 4

smart acronym

Answer 4

specific
measurable
accurate
relevant/ realistic
time

Question 5

purpose of mission statements

Answer 5

• strategic perspective
• vision for the future

Question 6

good mission statement has

Answer 6

• a clear sense of purpose
• easy to understand
• differentiates business form competitors
• motivates and guides

Question 7

what is Ansoff’s matrix

Answer 7

marketing panning model that helps a business determine its product and market strategy

Question 8

market penetration

Answer 8

• existing products
• existing markets

Question 9

product development

Answer 9

• new product
• existing market

Question 10

market development

Answer 10

• existing product
• new market

Question 11

diversification

Answer 11

• new product
• new market

Question 12

market penetration aims:

Answer 12

• Maintain/ increase the market share
• Secure dominance of growth markets
• Restructure a mature market by driving out competitors
• Increase usage by existing customers

Question 13

product development aims

Answer 13

• differentiated products to remain competitive
• Research & development and innovation
• Detailed insights into customer needs
• Being first to market

Question 14

market development

Answer 14

• New geographical markets
• New product dimensions or packaging
• New distribution channels
• Different pricing policies to attract different customers or create new market segments

Question 15

diversification

Answer 15

• clear idea about what it expects to gain from the strategy and an
• honest assessment of the risks

Question 16

Porter’s two factors to strategic positioning

Answer 16

• differentiaiton
• low cost

Question 17

porters matrix

Answer 17

• cost leadership
• cost focus
• differentiation leadership
• differentiation focus

Question 18

the problem that porter found?

Answer 18

need to specialise in one of the 4 areas, with no drifting to the middle

Question 19

features of low-cost operations

Answer 19

• high levels of productivity & efficiency
• exploit economies of scale
• high capacity utilisaiton
• lean production
• bargaining power to negotiate prices with suppliers

Question 20

ways to achieve differentiation

Answer 20

• superior product quality
• branding
• wie distribution across all major channels
• sustained promotion

Question 21

what is a SWOT analysis

Answer 21

helps a business assess its competitive strength and the nature of its external environment

Question 22

what parts of SWOT are internal and external

Answer 22

strengths, weakness - internal
opportunities, threats - external

Question 23

Assessing strengths and weaknesses:

Answer 23

• market share %
• profitability %
• brand recognition and loyalty
• can weaknesses be overcome?
• how sustainable are strengths
• reliable judgment

Question 24

Assessing opportunities and threats:

Answer 24

• taking advantage of opportunities
• protect against threats
• role of risk management
• PESTLE

Question 25

what is pestle analysis?

Answer 25

framework for assessing the key features of the external environments facing a business

Question 26

disadvantages of SWOT analysis

Answer 26

- too often lacks focus - independent - can quickly come out of date

Question 27

Advantages of SWOT analysis

Answer 27

- logical structure - focuses on strategic issues - encourages analysis of the external environment

Question 28

porters five forces

Answer 28

- threat of new entrants - bargaining power of suppliers - bargaining power of buyers - threat of substitutes - rivalry among existing productions

Question 29

what is the bargaining power of customers

Answer 29

when the firms sells to a small number of customers so they have significant power, so they can negotiate lower prices

Question 30

high industry profits associated with

Answer 30

- strong suppliers - strong customers - low entry barriers - increase rivalry - many opportunities for substitutes

Question 31

low industry profits associated with

Answer 31

- weak suppliers - weak customers - high entry barriers - little rivalry - few opportunities for substitutes

Question 32

What is a distinctive capability

Answer 32

When a business has a particular strength that is very difficult for competitors to copy. this determines the strategies the firm will pursue to achieve its aims and objectives

Question 33

what is a strategic decision on resources

Answer 33

invovles medium-to lnog temr plannig to achieve its goals. it will have an impact on a business's human, financial and production resources

Question 34

What is a tactical decision on resources

Answer 34

made to support the overall strategy and are short-term. they have an impact on a business's human, financial and production resources

Question 35

what leads to changes in market structure

Answer 35

- firms leaving, entering, integrating in the market - change in tastes - so short product life cycles, firms need to innovation - growth of the internet - globalisation - laws changing - fewer barriers to entry