3.1 Flashcards
Mission statement definition
A brief statement written by a business describing its purpose and objectives , designed to cover its current performance
Reasons for a mission statement
gives the business a purpose and direction by reflecting their goals and values
make commitment to customers
bring workforce together
Aim definition
The large longer term goal of a business
Objective definition
Smaller shorter term goals which work towards the business’ aim
What does SMART stand for
Specific
Measurable
Agreed
Realistic
Time bound
Corporate objectives definition
Objectives set for the whole business to achieve
Departmental and functional objectives
The objectives of a department within a business
What are corporate strategies
Strategies used to achieve corporate objectives
Examples of corporate strategies
Ansoff’s matrix
Porter’s Strategic matrix
What does the Ansoff matrix consist of
Market penetration strategy - existing product , existing market
Product development strategy - new product , existing market
Market development strategy - existing product , new market
Diversification strategy - new product , new market
What does Ansoff matrix allow a business to consider
Level of investment in enw and existing products
Exploitation of different markets
Growth strategies for the business
Level of risk the business is willing to accept
What does Porter’s strategic model consist of
Cost leadership - focus on having the lowest cost in the market - total market
Cost focus - aim to have lower cost but not going for the lowest cost in the market - total market
Differentiation - aim to have the most unique product possible - niche market
Differentiation focus - aim to make the product stand from competitors but not be completely different - niche market
What does Porter’s strategic model allow
Gives a business an opportunity to adopt a srategies in order to gain a competitive advantage
What does the Boston matrix consist of
Star - high market share , high market growth
Question mark / problem child - low market share , high market growth
Cash cow - high market share , low market growth
Dog - low market share , low market growth
What does the Boston matrix allow
For businesses to analysis the products in their portfolio to see how much revenue and profit they are likely to be generating and to help making decisions about which product should be invested in
