Business Objectives Flashcards
(57 cards)
Ansoff Matrix
Marketing planning model that helps a business determine its product and market
Market penetration
Existing product in an existing market. Eg new apple phone
Forecasting
Use of existing data to predict future trends
Qualitative forecasting
Based upon views and opinions
Delphi technique
Exports asked their opinions on likely outcomes of particular situations
CSR (corporate social responsibility)
The responsibilities of an organisation to put initiatives in place to benefit society
+ improved brand image
+ increased sales
+ climate change
- higher costs
- prices rise
- difficult for small businesses
Internal audit
Allows business to assess its strengths and weaknesses in relation to competitors
Business plan
Written document, describes the business, its objectives, strategies, the market, financial forecast.
Includes - business idea, target market, cost and price, finance required
+ - business plan
+ provides focus
+ sense of direction
+ useful when asking bank for loans
- time consuming
- useless unless followed
- rigid
Plan-Do-Review Cycle
Planning and preparing
Gathering evidence
Taking action
Reviewing and improving
+ methodical
+ clear
+ allows evaluation
- limited value
- lengthy process
- needs all staff on board
Contingency planning
Preparing for predictable and quantifiable problems
Preparing for unexpected and unwelcome events
Uncertainty
Inability to calculate the costs and benefits of a decision precisely
Crisis management
Dealing with an event that threatens harm to the business and its stakeholders
Management Response
Assess crisis severity, contact senior execs, oversee implementation
Operational response
Implement contingency plan, minimise impact on stakeholders
Communication response
Contact key stakeholders, media briefing
Porters 5 forces model
Analyses nature of competition and industry profitability
- threat of new entrants
- degree of rivalry
- bargaining power of buyer
- bargaining power of suppliers
- threat of substitutes
Diversification
New product in new market
Product development
New product existing market
Porters generic strategies
- cost leadership (lowest cost producer)
- cost focus (cost advantage in market segment/s)
- differentiation (differ in market segment/s)
Corporate strategy
Overall purpose and scope of business to meet stakeholder expectations
Business unit strategy
How a business competes successfully in a particular market
Examples of contingency planning
Marketing - avoid over reliance on customers and producers
Operations - hold spare capacity
Finance - insurance against and debt
People - selection procedures
Management response
Assess crisis severity, contact senior executives, oversee implementation
