Strategies

Question 1

Define strategy

Answer 1

The means by which we create and take control of the future. Vision combined with an action plan

Question 2

Strategic reflection

Answer 2

Understand:
What do you really want to do
What are your goals and current vision (realistic?)
Understand core competencies and core capabilities

Question 3

Define core competencies

Answer 3

A harmonised combination of multiple resources and skills that distinguish a firm in the marketplace and therefore are the foundation of companies competitiveness

• relevance to customer
• difficulty of imitation
• breadth of application

Question 4

Define core capabilities

Answer 4

The management ability to develop, out of the core competencies, core products and new business

• ability to build/maintain relationships
• manage rep
• innovate
• operate and deliver

Question 5

Strategic vision

Answer 5

Ideas for direction and activities of business development 
Who are you?
What you do
Where you want to go
What you want to be

Question 6

Value proposition

Answer 6

An innovation, service, or feature intended to make a company or product attractive to customer

Question 7

How to convince someone you have a good business

Answer 7

-past sales
-ability to put it together and deliver (business model)
-value proposition (unique/stand out)
(Marketing strat, will you expand?, good track record)

Question 8

Key imperatives for managing your vp

Answer 8

• clearly explain what you are and what you offer and the benefits and value you provide
• enhance and highlight key vp strength
• be consistent and clear in communication and delivery
• ensure consistency with organisational priorities and purpose
• link to core values (brand)

Question 9

Ways to reduce risk of business failure

Answer 9

Write business plan
Save rather than borrow
Carry out market research
Choose a limited company (only lose what is invested)
Start a franchise
Get advice
Find a partner

Question 10

Entrepreneur

Answer 10

A person who has an idea for a new business and is prepared to take risks to make a business work
Willing to take risks
Hardworking
Persistent

Question 11

Reasons for starting a business

Answer 11

Making sure you're employed
Keep all profits
Own boss - own decisions
Flexible hours
Interest/hobby
Allows you to take advantage of a gap in the market

Question 12

Benefits of finding a gap in the market

Answer 12

Charge higher prices - less competition
Increased sales - less competition
More customers- unique product or service

Question 13

Business sectors

Answer 13

Primary:
First stage production- raw materials, land used to grow
Secondary:
Second stage production- primary sources used to manufacture products
Tertiary:
Made up of organisations that sell products and services

Question 14

Advantages of a franchise

Answer 14

• good chance of success, name already well known
• advice and assistance given, training and marketing
• reduced marketing costs, franchisor is responsible

Question 15

Disadvantages of a franchise

Answer 15

• franchise cannot make decisions
• never feel like business is their own
• costly way to run a business, fees, royalties and expensive stock must be paid by the franchise

Question 16

What is a business plan

Answer 16

A document setting out what the business does at present, plus what it intends to achieve in the future and how it will be accomplished

Question 17

Benefits of business plan

Answer 17

Helps business get a bank loan
Helps keep business organised
Allows success to be monitored and improvements made
A business can plan contingencies

Question 18

Difficulties of a business plan

Answer 18

Lack of experience, people starting do not have skills to plan ahead
Uncertainty, not easy to look ahead and predict the market

Question 19

How to get a competitive advantage

Answer 19

Sell at same value for lower price or charge higher providing greater value
Quality, price, location, selection, service, speed, turnaround
Focus on service