3.1 - Business Objectives and Strategy Flashcards
(19 cards)
Corporate aims
Broad, LT ideas as to how the b should dev
Corp objective
Goal that a b strives to achieve in order to meet its LT aim
Critical appraisal
Assesses if the corp aims and MS continue to reflect the current corporate vision
Mission statement
A set of guiding principles which is often used to steer stakeholders in order to achieve a b’s aims and objectives
Ansoff’s matrix
Strategic tool to help a b analyse business growth
Cost leadership
A strategy of seeking lower cost to allow a business to reduce prices and therefore increase sales and revenue
Distinctive capabilities
Skill or attribute possessed by a b
Diversification
New prod, new m. More risky than market pen BUT potentially more rewarding as offers greater opportunities
Financial resources
Resources used to finance a business strategy inc: cash, current assets and the ability to borrow finance for future operations
Market dev
Exist prod, new m
Market penetration
Exist prod, exist m. Least risky
Porters Strategic Mix
Identifies the sources of comp +ve that a business might achieve in a market
Prod dev
New prod, exist m
Tactical decisions
ST actions that help to achieve the strategy
SWOT analysis
Strategic planning technique used to help a b identify ^
Political factors
Regional, national and international laws and government policies that could affect a b such as regulations and subsidies
Porter’s five forces model and use
A framework for analysing the nature of competition within an industry. Looks at: threat of substitutes, threat of new entrants, bargaining power of buyers, bargaining power of suppliers and competitive rivalry. Used to id potential profitability of …
Social factors
Demographic changes such as an aging population, changing lifestyles and tastes and fashion
Threat of competition
Behaviour of competitors —> loss of market share
