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A2 Business Specification Cards > 2 - objectives and strategy > Flashcards

2 - objectives and strategy Flashcards

1
Q

whats the hierarchy of objectives?

A 
Aim 
Corporate Objectives 
Business Objectives 
Department Objectives 
Employee Objectives
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2
Q

Factors effecting the setting of objectives?

A 
size of business 
trends
economy 
finances 
competition 
government 
personnell 
stakeholders 
nature of product
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3
Q

strategy is used to achieve objectives

outline how strategy works?

A 
Objective
Internal/External analysis e.g. SWOT and PESTELE 
(Contingency plans incase things change)
Strategies
Implement 
Evaluate and review
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4
Q

a successful strategy will have/be …

A
  • clear purpose
  • step by step methods
  • contingency plans
  • flexibility and dynamic
  • user friendly
  • communicated
  • customer orientated
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5
Q

4 types of strategy:

A

functional
business
corporate
global

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6
Q

parts to porters ‘five forces analysis’

A

threat of new entrants
bargaining power of suppliers
bargaining power of buyers
threat of substitutes
middle - intensity of rivalry in the industry
(all leads to rivalry among existing competitors)

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7
Q

how would you evaluate a strategy?

A

seeing if objectives have been achieved

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8
Q

what is a contingency plan?

A

worst case scenario plan - procedures in place for these situations

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9
Q

contingency plan by function

A

HR - labour (zero hour contracts)
Marketing - alternative services
Financial - contingency budgets
Production - backup technology

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10
Q

crisis management

A

where the situation is so adverse it has huge negative impacts on the business

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11
Q

stakeholder

A

a person with an interest in the success of a business

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12
Q

internal stakeholders?

A

employees and owners etc

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13
Q

external stakeholders?

A

suppliers and community etc

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14
Q

what will the owner want?

A
  • a satisfactory return on their investment
  • profits
  • good reputation
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15
Q

what will the employees want?

A
  • good and fair wage
  • job security
  • job satisfaction
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16
Q

what will the suppliers want?

A
  • regular orders

- prompt payment

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17
Q

what will the local community want?

A
  • jobs
  • involvement
  • respect
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18
Q

what do the customers want?

A
  • good quality
  • low prices
  • innovation
  • customer service
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19
Q

what do the shareholders want?

A
  • good return on their investments
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20
Q

the government are not direct stakeholders.. but why do they have an interest in the business?

A

they want it to be a success as if more people are employed as a result the business will pay out less social security benefits etc

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21
Q

what is a mission statement?

A

a mission statement gives a general idea of what the business plans to do and its purpose to write this down is for the benefit of the stakeholders

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22
Q

aims of most businesses include?

A

survival
breaking even
gain a share of the market
profit

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23
Q

what does setting objectives provide?

A

a sense of direction
motivational force
greater control over business functions

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24
Q

strategic objectives

A

long term objectives

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25
Q

tactical objectives

A

short term objectives (day to day)

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26
Q

what are smart objectives?

A 
specific 
measurable 
achievable 
realistic 
timed
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27
Q

what do some internal business constraints include?

A
  • lack of finance
  • poor communication
  • conflict between departments
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28
Q

what do some external business constraints include?

A
  • changes in the law
  • state of the economy
  • behaviour of competitors
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29
Q

what is SWAT analysis?

A

strengths, weaknesses - internal audit

opportunities, threats - external audit

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30
Q

whats the point of porters 5 forces model?

A

a system for analysing the level of competition in an industry. looks at the forces that determine the level of competitive intensity and the attractiveness of the industry

31
Q

bargaining power of suppliers

A

suppliers who can force up the price of their products through a strong power to bargain, will cut profits at the firm

32
Q

bargaining power of consumers

A

forces prices down and reduce profitability

33
Q

threat of new entrants

A

firm enters the market and takes a share of that market and increases the competitive intensity

34
Q

threat of substitutes

A

substitute products entering the market increases competition: a business who fails to notice and respond to this will loose market share

35
Q

degree of competitive intensity

A

where this is high it is likely that the results will be innovation, prices wars and more promotion - reducing the level of profitability which can be achieved

36
Q

using the model…

A

when a business is moving into a new market sector the model can be used to dress the potential issues
however, porters is not always able to obtain all required information about the threats that exist

37
Q

business plan?

A

a formal written document which outlines how a business is going to achieve its objectives

38
Q

what does strategic review enable?

A
  • analysis of SWOT and PEST to be undertaken
  • analysis of key performance areas/ indicators to be identified
  • identification of good/bad practice in the firm
39
Q

advantages of business plans?

A
  • gives the business a sense of direction
  • forces evaluation of current objectives and strategies
  • sets out of role/goal for each department
  • encourages communication and cooperation
40
Q

what questions must a business plan answer? (W)

A 
what are we aiming to achieve? 
why?
what needs to be done?
who?
when?
what resources?
41
Q

disadvantages of a business plan?

A

-

42
Q

opportunity cost:

A

the cost of the next best alternative foregone. the time etc spent on one activity which could have been spent on another

43
Q

what is the plan,do,review process?

A

Plan: establish objectives and the course of action as well as resources necessary

Do: implement the plan ensuring that all areas of the business understand their part

Review: there will need to be a formal ongoing evaluation process and then a final review at the end

44
Q

advantages of plan do review

A
  • approach is methodical forcing a strategic approach
  • encourages continuous improvements of the business
  • employees more focused so likely to be motivated and efficient
45
Q

disadvantages of plan do review

A
  • lengthy process so considerable opportunity cost
  • cycle can be inflexible
  • some employees may not like ongoing review
46
Q

contingency planning?

A

Planning for what will happen if things go wrong. Agreed course of action is in place and is ready to be used if necessary

47
Q

‘firefighting’?

A

When a manager spends time trying to fix unforeseen problems/emergencies

48
Q

crisis management?

A

-

49
Q

uncertainty:

A

The inability to calculate the costs and benefits of a decision accurately

50
Q

risk:

A

The chance/possibility of an adverse occurrence

51
Q

reward:

A

The possible return that an activity may make

52
Q

Unquantifiable risk:

A

-

53
Q

Quantifiable risk:

A

-

54
Q

Personal risk:

A

-

55
Q

Economic risk could be managed by?

A

-

56
Q

Political risk could be managed by:

A

-

57
Q

Competitive risk could be managed by:

A

-

58
Q

Organisational risk could be managed by:

A

-

59
Q

Stakeholder risk could be managed by:

A

-

60
Q

Methods of forecasting?

A

-

61
Q

Qualitative forecasting?

A

-

62
Q

Methods of qualitative forecasting:

A

-

63
Q

Quantitive methods of forecasting:

A

-

64
Q

Limitations of forecasting?

A

-

65
Q

Decision making tools?

A

-

66
Q

Ansoffs matrix?

A

-

67
Q

Market penetration:

A

-

68
Q

Market development:

A

-

69
Q

Product development:

A

-

70
Q

Diversification:

A

-

71
Q

Conflicts in decision making?

A

-

72
Q

Decision trees:

A

-

73
Q

Benefits of decision trees?

A

-

74
Q

Limitations of decision trees?

A

-

A2 Business Specification Cards (10 decks)

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