Theme 3 Flashcards
(12 cards)
Mission Statement Def
Is a short way of a business expressing their main intent. It should also be memorable and inspiring
Objective Heirarchy
1) Mission Statement
2) Coperate Objective
3) Departmental Objective
Coperate Objectives
Should flow from the mission statement and coperate vision
Usually set by senior management for the whole company
Aimed at satisfying the shareholders
Departmental Obj’s
Work is divided up into departments
Each department will set their own obj’s which should flow with the coperate obj’s
Why are mission statements useful
Focus - create a high lvl of focus and involvement from ppl working within the business
Identity - create an identity and help establish a position in the market
Profitability - can make employees more motivated and efficient attracting more customers due to strong coperate values
Limitations of Mission Statements
1) Waste of time
2) Maybe overlooked
3) They only work in theory
4) Misunderstood
5) May he unrealistic and over optimistic
6) As a business grows and changes the message may become obsolete
Examples of StakeHolders
1) Owners
2) Managers
3) Employees
4) Pressure Groups
5) Customers
6) Competition
Limitations of Porters Matrix
Not relevant in dynamic markets
Doesn’t look at economic problems or consumer behaviour
Over simplifies the market structure
Cost Leadership Strategy
Useful in highly competitive market where there is similar products
Customers may switch brands it get the best value
New entrants to the market will use a low process to build a customer base
Cost Focus
Useful strategy when the business wants to offer very low prices to a small market segment
Differentiation
Highly Technological dynamic markets all following the same strategy
Customer needs are very diverse
Differentiation Focus
When a business wants to offer products and services to a small market segment
Products or services aimed at niche markets
