3.1 Flashcards
corporate objectives
goals of the whole organisation, set to give a sense of direction and guide the actions of the organisation - usually of medium to large sized businesses
departmental and functional objectives
the objectives of a department within a business that relate to the specific functions of a business (e.g. marketing, operations, HRM, finance) and which are designed to support the achievement of corporate objectives
mission statement
a brief statement, written by the business, describing its purpose and objectives
designed to encapsulate its present operations
objective (goal)
a target of or outcome for a business that allows it to achieve its aims
SMART
acronyms for the attributes of a good objective;
Specific, Measurable, Agreed, Realistic and Time specific
corporate strategy
the plans and policies developed to meet a company’s objectives
it is concerned about two things:
1) range of activities the business needs to undertake in order to achieve its goals
2) the size of the business organisation which will make it capable of achieving the objectives set
distinctive capability
a form of competitive advantage that is sustainable because it cannot easily be replicated by a competitor
e.g. intellectual property
diversification
developing new products in new markets
penetration
a marketing strategy that uses tactics, such as the marketing mix, to increase growth of existing products in an existing market
portfolio analysis
a method of categorizing all the products and services of a firm to decide where each fits within the strategic plan
product development
a marketing strategy that involves the marketing of products with new or different characteristics (modified) into existing markets
external audit
an audit of the external environment in which a business finds itself - which it has little to no control over - such as the market which it operates in or government restrictions on its operations
internal audit
an analysis of the business itself and how it operates
SWOT analysis
an analysis of the internal strengths and weaknesses of the business, and the opportunities and threats presented by its external environment
trade association
an organisation whose members are all involved in the same industry or trade
