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Flashcards in Business Objectives Deck (15)
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1
Q

Mission statement

A
  • Gives a general idea of what the business exists to do

- purpose is to set this down for the benefit of all stakeholders

2
Q

3 advantages of having a mission statement

A
  • provides direction
  • helps with decision making
  • helps to resolve conflicts
3
Q

3 disadvantages of mission statements

A
  • can be ambiguous on its own
  • may be unrealistic
  • focused more on short term issues
4
Q

Forecasting is

A

the use of existing date to predict future trends

5
Q

Use of forecasting

A

can predict future revenue and costs to improve overall performance

6
Q

Forecasting does not take into account the

A

changing of objectives in a business

7
Q

If past data is inaccurate, the forecasting

A

will be inaccurate too

8
Q

3 qualitative forecasting methods

A
  • staff
  • consumer expectations
  • opinions of experts/academics
9
Q

Quantitative forecasting method

A

TSA

10
Q

The four components TSA wants to find

A

1- the trend
2- cyclical variations
3- seasonal variations
4- random fluctuations

11
Q

What does the Delphi technique rely on?

A

Information from experts

12
Q

Three qualitative forecasting methods e.g Delphi

A
  • delphi technique (structured)
  • brainstorming (unstructured)
  • intuition (unstructured)
13
Q

What are the 5 forces in Porter’s Five Force Model?

A
1- threat of new entrants to the market 
2- bargaining power of suppliers
3- bargaining power of consumers
4- threat of substitute products
5- degree of existing rivalry
14
Q

What are Porter’s generic strategies?

A

1- cost leadership
2- differentiation
3- focus or niche
4- stuck in the middle

15
Q

one disadvantage of differentiation

A

if there isn’t a patent, the product can be copied