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Flashcards in Business Objectives Deck (15)
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1

Mission statement

-Gives a general idea of what the business exists to do
-purpose is to set this down for the benefit of all stakeholders

2

3 advantages of having a mission statement

-provides direction
-helps with decision making
-helps to resolve conflicts

3

3 disadvantages of mission statements

-can be ambiguous on its own
-may be unrealistic
-focused more on short term issues

4

Forecasting is

the use of existing date to predict future trends

5

Use of forecasting

can predict future revenue and costs to improve overall performance

6

Forecasting does not take into account the

changing of objectives in a business

7

If past data is inaccurate, the forecasting

will be inaccurate too

8

3 qualitative forecasting methods

-staff
-consumer expectations
-opinions of experts/academics

9

Quantitative forecasting method

TSA

10

The four components TSA wants to find

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

11

What does the Delphi technique rely on?

Information from experts

12

Three qualitative forecasting methods e.g Delphi

-delphi technique (structured)
-brainstorming (unstructured)
-intuition (unstructured)

13

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

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

What are Porter's generic strategies?

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

15

one disadvantage of differentiation

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