3.1

Question 1

Corporates aims

Answer 1

Broad long term ideas as to how the business should develop

Question 2

Corporate objectives

Answer 2

A goal that a business strives to achieve in order to meet its long term aim

Question 3

Critical appraisal

Answer 3

Assesses if corporate aims and mission statements continue to reflect the current corporate vision

Question 4

Mission statement

Answer 4

A set of guiding principles that is used to steer stakeholders in order to achieve business aims and objectives

Question 5

Ansoff Matrix

Answer 5

Strategic tool to help business analyse growth

Question 6

Architecture

Answer 6

Refers to the contracts and relationships within and around the organisation

Question 7

Cost leadership

Answer 7

Strategy of seeking lower cost to allow a business to reduce prices and therefore increase sales and revenue

Question 8

Distinctive capabilities

Answer 8

A skill or attribute possessed by a business

Question 9

Diversification

Answer 9

New products in a new market
Ansoff said more risky but can be more rewarding as can sell to greater range of markets

Question 10

Financial resources

Answer 10

Recourses used to finance a business strategy can include cash , current assets , finance borrowed

Question 11

Innovation

Answer 11

Developing a new product or process in the production of a product

Question 12

Market development

Answer 12

Marketing of an existing product in new markets

Question 13

Market penetration

Answer 13

Selling existing products in existing market which is considered least risky by Ansoff

Question 14

Porters strategic matrix

Answer 14

Identifies sources of competitive advantage that business might achieve in a market

Question 15

Product development

Answer 15

Marketing new or modified products in existing markets

Question 16

Reputation

Answer 16

Operational factors concerned with premisis , equipment to meet customer needs

Question 17

Strategic decisions

Answer 17

Long term and relates to achieving an overalll goal

Question 18

Tactical decisions

Answer 18

Short term actions that help achieve a strategy

Question 19

SWOT analysis

Answer 19

Strategic planning technique used to help a business identify its internal strengths , weaknesses and its external opportunities and threats

Question 20

Economic factors

Answer 20

Economic variables that can affect a business such as exchange rates , inflation , interest rates

Question 21

Environnemental factors

Answer 21

Businesses have a general obligation to the environment and some businesses are closely monitored

Question 22

Legal factors

Answer 22

Legal requirements that a business must follow when operating in a country

Question 23

PESTLE factors

Answer 23

Political , environmental, social , technical , legal , economic influences that can effect business strategies

Question 24

Political factors

Answer 24

Regional, national , international laws and government policies that could effect a business such as regulations and subsidies

Question 25

Porters 5 forces

Answer 25

A framework for analysing the nature of competition within an industry Threat of substitutes , threat of new entrants , bargaining power of buyers , bargaining power of suppliers , competitive rivalry

Question 26

Social factors

Answer 26

Demographic changes such as ageing population, changing lifestyles tastes and fashions

Question 27

Technological factors

Answer 27

Adaptation of technologies that could effect a business such as new production processes , mobile technology

Question 28

Threat of competition

Answer 28

The behaviour of competitors that may lead to loss of market share