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L4 ME - Business Understanding and Commercial Awareness > Month 3 > Flashcards

Month 3 Flashcards

4 The characteristics and plans of the business and sector they work within, including their vision and values 5 How marketing contributes to achieving wider business objectives (67 cards)

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1
Q

What is the purpose of corporate planning in an organization?

A

To define an overall plan for long-term survival and growth.

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2
Q

What does strategic planning involve?

A

Developing and maintaining a fit between the organization’s goals and capabilities and its changing market opportunities.

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3
Q

What are the components of strategic planning?

A

Organizational Mission & Goals, Organizational Resources, Corporate Strategy, Organizational Opportunities, Marketing Objectives, Marketing Strategies and Programmes.

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4
Q

What is a mission statement?

A

A summary of what the company does for its customers, employees, and owners, explaining how and why the company operates.

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5
Q

What is a vision statement?

A

A description of where the company aspires to be upon achieving its mission.

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6
Q

Give an example of a mission statement.

A

IKEA: To create a better everyday life for the many people.

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7
Q

Give an example of a vision statement.

A

Cancer Research: To bring forward the day when all cancers are cured.

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8
Q

What are the benefits of a mission statement?

A

Provides clear purpose and direction, differentiates from competitors, focuses on customer needs, guides management, and unites the organization.

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9
Q

What are corporate objectives?

A

Objectives that relate to the business as a whole, enabling strategic focus and performance measurement.

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10
Q

What is the hierarchy of objectives?

A

Corporate Objectives, Marketing Objectives, Channel Objectives, Campaign Objectives.

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11
Q

What is an example of a corporate objective?

A

Grow revenues by 15% per year in each of the next 5 years.

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12
Q

What is an example of a marketing objective?

A

Increase UK market share to 17% by 2024.

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13
Q

What does SMART stand for in the context of objectives?

A

Specific, Measurable, Achievable, Relevant, Time-bound.

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14
Q

What is an organizational strategy?

A

Defines where the organization is trying to get in the long-term and the markets it should compete in.

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15
Q

What is a business portfolio?

A

The collection of businesses, products, or services that make up the company.

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16
Q

What is the BCG Growth-Share Matrix used for?

A

Analyzing the business portfolio based on market growth and relative market share.

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17
Q

What are the four categories in the BCG Growth-Share Matrix?

A

Stars, Question Marks (Problem Children), Cash Cows, Dogs.

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18
Q

How can marketing support achieving business objectives?

A

By aligning marketing strategies with the overall goals of the organization.

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19
Q

What is the role of corporate objectives in decision-making?

A

They support informed decision-making and help set objectives for other business functions.

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20
Q

What does the GE Matrix analyze?

A

The business portfolio based on industry attractiveness and business strength.

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21
Q

What is the significance of the organizational mission statement?

A

It guides the organization’s strategy and decision-making processes.

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22
Q

Who are the authors cited for the principles of marketing?

A

Brassington and Pettitt (2006), Dibb et al (2006).

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23
Q

What are the learning outcomes of the session on the Nature of Organisations?

A

Students will understand the characteristics and plans of the business and sector they work within, including their vision and values.

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24
Q

What are some common characteristics of organisations?

A

A framework or written rules, a decision-making hierarchy, a record of proceedings, and a means of coordinating efforts and resources.

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25
How can organisations be classified based on ownership?
They can be classified as private or public sector.
26
What are the two main categories of organisational types?
Private Sector and Public Sector.
27
What are some examples of private sector organisations?
Sole traders, partnerships, franchises, private limited companies, and public limited companies.
28
What are some examples of public sector organisations?
Nationalised industries, local authorities, central government departments, QUANGOs, public corporations like the BBC and NHS.
29
What is a QUANGO?
A Quasi-Autonomous National Government Organisation that operates independently from the government, providing technical management in public services.
30
What are the benefits of the public sector?
Provides essential services, avoids wasteful duplication, raises funds through taxation, allows fair resource allocation, and can provide services where a free market fails.
31
What are some drawbacks of the public sector?
Can ignore waste at taxpayers' expense, political interference may affect decision-making, over-accountability may limit entrepreneurship, and there can be conflicts between cost-effectiveness and service level.
32
What are the strengths of the private sector?
Enhanced initiative, strong motivation to use resources well, efficient fund usage, quick response to market signals, and performance-based employee compensation.
33
What are the weaknesses of the private sector?
Potential for ruthless exploitation, ignoring societal costs, risk of over-investment, and the notion that everything has a price.
34
What distinguishes not-for-profit organisations from profit-making organisations?
They do not have external shareholders, do not distribute dividends, and have objectives other than profit.
35
What are some objectives of not-for-profit organisations?
To provide cultural enrichment, protect animals, educate and inspire, and provide research and care.
36
What is the role of local authority services in the public sector?
They provide public services such as education, recreation, and protection (policing).
37
What is the function of central government departments?
To manage various aspects of government operations, including finance and social services.
38
What is the significance of the Bank of England in the public sector?
It serves as a public corporation and central bank, managing monetary policy and financial stability.
39
What is the impact of political interference in public sector organisations?
It can affect decision-making and operational effectiveness.
40
How does the public sector ensure a fair allocation of resources?
Through taxation and government funding mechanisms.
41
What is the relationship between B2B and B2C in the context of organisations?
B2B and B2C organisations differ in their target markets and operational strategies.
42
What are the implications of over-accountability in the public sector?
It may limit entrepreneurship and innovation within organisations.
43
What does it mean for an organisation to have a commercial objective?
It means the organisation aims to generate profit or financial returns.
44
What is the significance of economies of scale in the public sector?
They help avoid wasteful duplication of resources, leading to more efficient service delivery.
45
What is a Sole Trader?
A business owned and run by one individual, where business and personal affairs are considered one entity for legal and tax purposes.
46
What are the benefits of being a Sole Trader?
No set-up procedures, minimal formalities, independence, close customer relationships, flexibility, personal supervision, and low cost.
47
What are the limitations of being a Sole Trader?
Unlimited liability, lack of economies of scale, difficulty raising capital, dependence on the individual, lack of all-round skills, and a narrow outlook.
48
What defines a Partnership?
An arrangement between two or more individuals (up to 20) to conduct an agreed business, governed by the Partnership Act 1890.
49
What are the benefits of Partnerships?
Expanded capital, shared responsibilities, no corporation tax, and a wider range of skills.
50
What are the limitations of Partnerships?
Unlimited liability, joint liability, tied-up capital, potential disputes, need for consultation, no separate legal identity.
51
What is a Limited Company?
A business with a separate legal identity from its owners, where liability is limited to the amount of capital invested.
52
What are the benefits of Limited Companies?
Separate legal identity, ease of ownership transfer, professionalism, more resources, and limited liability.
53
What are the limitations of Limited Companies?
Greater regulations, possible double taxation, slower responsiveness, and higher overheads.
54
What distinguishes Public Limited Companies (plc) from Limited Companies?
Public companies can sell shares to the public, must have £50k share capital, and at least two directors.
55
What is a Co-operative?
A business owned and operated by members for mutual benefit, often in retail or farming sectors.
56
What are the key features of Co-operatives?
Limited liability, one vote per member, and shared dividends.
57
What is a Franchise?
A license allowing a franchisee to use a franchisor’s brand and system to sell a product or service.
58
What are the benefits of Franchises?
Easier access to capital, strong brand support, reduced risk, and shared marketing resources.
59
What are the limitations of Franchises?
Operational restrictions, franchisor dependency, reputational risk, and need for strong communication.
60
What is the significance of the Partnership Act 1890?
It governs how partnerships are formed and operated in the UK.
61
How does a Limited Company differ in terms of ownership transfer compared to Sole Traders?
Limited Companies have a separate legal identity, allowing easier transfer of ownership.
62
What is the role of shareholders in a Limited Company?
They invest capital and are only liable for debts up to their investment.
63
What is the importance of the Memorandum and Articles of Association for Limited Companies?
These documents define the company's governance and must be submitted to the Registrar.
64
What are the implications of unlimited liability in Sole Traders and Partnerships?
Owners are personally liable for business debts, risking personal assets.
65
What is the typical maximum number of partners allowed in a Partnership?
Up to 20 individuals.
66
What are the common sectors where Co-operatives are prevalent?
Retail and farming.
67
What is a key characteristic of Franchise operations?
Franchisees operate under the franchisor’s brand and business model.

L4 ME - Business Understanding and Commercial Awareness (2 decks)

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