3.1 Flashcards
Corporates aims
Broad long term ideas as to how the business should develop
Corporate objectives
A goal that a business strives to achieve in order to meet its long term aim
Critical appraisal
Assesses if corporate aims and mission statements continue to reflect the current corporate vision
Mission statement
A set of guiding principles that is used to steer stakeholders in order to achieve business aims and objectives
Ansoff Matrix
Strategic tool to help business analyse growth
Architecture
Refers to the contracts and relationships within and around the organisation
Cost leadership
Strategy of seeking lower cost to allow a business to reduce prices and therefore increase sales and revenue
Distinctive capabilities
A skill or attribute possessed by a business
Diversification
New products in a new market
Ansoff said more risky but can be more rewarding as can sell to greater range of markets
Financial resources
Recourses used to finance a business strategy can include cash , current assets , finance borrowed
Innovation
Developing a new product or process in the production of a product
Market development
Marketing of an existing product in new markets
Market penetration
Selling existing products in existing market which is considered least risky by Ansoff
Porters strategic matrix
Identifies sources of competitive advantage that business might achieve in a market
Product development
Marketing new or modified products in existing markets
Reputation
Operational factors concerned with premisis , equipment to meet customer needs
Strategic decisions
Long term and relates to achieving an overalll goal
Tactical decisions
Short term actions that help achieve a strategy
SWOT analysis
Strategic planning technique used to help a business identify its internal strengths , weaknesses and its external opportunities and threats
Economic factors
Economic variables that can affect a business such as exchange rates , inflation , interest rates
Environnemental factors
Businesses have a general obligation to the environment and some businesses are closely monitored
Legal factors
Legal requirements that a business must follow when operating in a country
PESTLE factors
Political , environmental, social , technical , legal , economic influences that can effect business strategies
Political factors
Regional, national , international laws and government policies that could effect a business such as regulations and subsidies
Porters 5 forces
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
Social factors
Demographic changes such as ageing population, changing lifestyles tastes and fashions
Technological factors
Adaptation of technologies that could effect a business such as new production processes , mobile technology
Threat of competition
The behaviour of competitors that may lead to loss of market share
