business decisions and strategy Flashcards
(22 cards)
the hierarchy of objectives from bottom to top
individual unit/team functional corporate mission
mission statement is
short statement of values and objectives of a business
smart stands for
specific measurable achievable realistic time specific
ansoffs matrix is
a strategic marketing planning tool
aids the business in deciding the product and market growth strategy
indicates level of risk
ansoffs matrix 4 strategies
market penetration
market development
product development
diversification
market penetration is
focusing on selling existing products to existing markets
to secure a dominant market position
market development is
deciding to sell existing products in a new market
use new distribution channels
product development is
introduce new products into existing market
may need to develop new skills
diversification is
market new products in new markets
high risk and no experience
portfolio analysis
method of analysing a business according to their potential based on Boston matrix
used to prioritise resources
distinctive capability is
special quality of a business that is the product of the people who are employed there
swot analysis stands for
strengths
weaknesses
opportunities
threats
3 internal strengths and weaknesses
brand image
sales and revenue figures
capacity utilisation
3 external opportunities and threats
new legislation
technological changes
economic factors
external factors on a business
pestle
what does porters 5 forces analyse
the nature of competition within a market
5 parts of porters 5 forces
threat of new entrants
bargaining power of buyers
bargaining power of suppliers
threat of substitute products or services
middle one - rivalry among existing competitors
threat of new entrants is
new entry presuming they will take market share
threat of substitute products is
depends on customers willingness to switch, customer loyalty
bargaining power of suppliers is
how much power, if in a dominant position then prices go up so profits decrease
bargaining power of customers is
volume of orders, number of rivals and ease of switching
rivalry among existing competitors
number of competitors, potential for market growth
