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Flashcards in 3.1 business objectives and strategy Deck (27)
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1

corporate objective-

- outline what a business wants to achieve
- quantify the mission statement of a business and set measurable targets

2

mission statement-

- sets out what a business wants to achieve

3

what are the focuses of corporate objectives?

- innovation
- sustainability
- shareholder value
- social responsibility
- profitability
- market standing

4

what is short termism?

- the pressure of achieving short term gains over long term success

5

what is Ansofs Matrix?

- a strategic tool that businesses can use to help choose the market they wish to operate in

6

what are the 4 sections of Ansofs Matrix?

- market penetration (TL)
- product development (TR)
- market development (BL)
- diversification (BR)

7

what is the impact of external influences?

- PESTLE analysis

8

what is PESTLE?

P- political
E- environmental
S- social
T- technological
L- legal
E- economic

9

what does Porters five forces do?

- provides a framework for analysing the competitive environment

10

what are Porters five forces?

- bargaining power of suppliers
- barriers to entry
- threat of substitutes
- bargaining power of buyers
- intensity of rivalry

11

what is a product porfolio?

- categorise a companies products with specific characteristics in order to make strategic decisions about them

12

what is on the X and Y axis on the product portfolio?

Y= market growth rate
X= relative market share

13

what are the 4 categories in the product portfolio?

- star
- question mark
- cash cow
- Dog

14

what is the star in the product portfolio?

- high market share
- high market growth
- possibly a leading brand in the market

15

what is the question mark in the product portfolio?

- low market share
- high market growth
- fast growing market, not yet established
- requires lots of investment

16

what is the cash cow in the product portfolio?

- high market share
- low market growth
- successful products in mature markets, generate high revenue, little promotion needed

17

what is the dog in the product portfolio?

- low market share
- low market growth
- invest to revitalise or discontinue product

18

what is Porters corporate strategy?

- a business should follow one of 3 positioning strategies in order to compete

19

what are the 3 position strategies according to Porter?

- segmentation (narrow market scope)
- differentiation (broad, uniqueness)
- cost leadership (broad, low cost)

20

what is competitive advantage?

- where a business creates unique value for its customers that is greater than that offered by competitors

21

what is strategy?

- a long term plan or approach that a business will take to achieve its objective

22

what is tactics?

the day to day decisions taken by middle managers

23

what is the objective hierarchy?
(top to bottom)

- aims
- mission statement
- corporate objectives
- functional objectives

24

what is SWOT analysis?

- a strategic planning tool that a business can use to analyse its current position and the external factors that might affect it

25

what is shown in SWOT analysis?

internal: -strengths -weaknesses
external: opportunities - threats

26

benefits of SWOT analysis?

- assists strategic thinking in a structural way
- low cost, simple
- can be combined with other models

27

limitations of SWOT analysis?

- subjective
- doesn't offer clear solutions
- depends on perspective