Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Theme 3 > 3.1 > Flashcards

3.1 Flashcards

1
Q

What is a mission statement?

A

Reason for existence

- overriding goal, the reason for a businesses existence and it’s vision for the future

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Who is the mission statement for?

A
  • Investor: reassure them about investing in a good company

- Customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Features of a good mission statement

A
  • clear sense of business purpose
  • excites, inspires, motivates and guides
  • easy to understand and remember
  • differentiates business from competitors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Issues with mission statements

A
  • not always supported by actions of the business
  • often too vague and general
  • often merely statements of the obvious
  • are they just PR?
  • to be effective, everyone in the business has to “buy it”
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are objectives?

A

Statements of specific outcomes that are to be achieved

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are corporate objectives?

A

Those that relate to a business as a whole

- more precise and detailed statements of aims/ goals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Main purposes of corporate objectives

A
  • provide strategic focus
  • measure performance as a whole
  • inform decision- making
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Features of a good corporate aim

A 
Specific 
Measurable 
Achievable
Realistic 
Time stamped
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Functional objectives?

A

How each department supports the corporate aim

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Examples of functional objectives

A

Marketing: advertise
R&D: develop new products
Customer service: improve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is an aim?

A

A generalised statement of where a business is heading, from which objectives can be set

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is short-termism?

A

Business priorities short term rather than long term performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Short-termism features

A
  • low investment in R&D
  • high dividend payments rather than reinvesting profits
  • overuse of takeovers rather than internal growth
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the Ansoff Matrix?

A

Marketing planning model that helps businesses determine its product and market strategy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

4 sections of Ansoff’s matrix

A
  • market penetration
  • market development
  • product development
  • diversification
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Ansoffs matrix: Market penetration

A

Growth strategy where a business aims to sell existing products into existing markets

  • aim: increase market share
  • get existing customers to buy more
  • Woden range of existing products
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Evaluation of market penetration

A

+ business focuses on markets and products it knows well
+ can exploit insights on what customers want
+ unlikely to need significant new market research

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Ansoffs matrix: Product development

A

Growth strategy where a business aims to introduce new products into existing markets

  • driven by investment in new product development
  • requires consistent, long term investment in R&D
  • technological innovation provides significant opportunities for product development strategies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Evaluating product development

A

+ strong emphasis on effective market research and successful innovation
+ great way of exploring the existing customer base who may respond positively to new products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Ansoffs matrix: market development

A

Involves a business seeking to sell its existing products into new markets

  • new geographical markets
  • new distribution channels
  • different pricing polices
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Evaluation of market development

A

+ logical strategy where existing markets are saturated or in decline

  • often railed than product development- particularly expansion into international markets
  • existing products may not suite new markets
22
Q

Ansoffs matrix: diversification

A

Growth strategy where a business markets new products in new markets

  • innovation and R&D
  • acquire an existing business in market
  • extend an existing brand into the new market
23
Q

Evaluation of product development

A
  • inherently risked strategy
  • no direct experience of the product or market
  • few EOS
  • overall risk is spread if successful
24
Q

What is a competitive advantage?

A

An advantage over competitors gained by offering consumers greater value, either by lower prices or greater benefits and service that justifies higher prices

25
Q

Distinctive capabilities?

A

Form of competitive advantage that is sustainable as it is difficult for other firms to replicate this

26
Q

Types of distinctive capabilities

A
  • architecture
  • reputation
  • innovation
27
Q

Distinctive capability: architecture

A

Strength of relationships within an organisation between employees but also with suppliers

28
Q

Distinctive capability: reputation

A

Building strong brand image

29
Q

Distinctive capability: innovation

A

Developing new products or processes

30
Q

Porters generic strategy

A

Suggested two strategies that could be followed in order to gain competitive advantage

  • differentiation
  • low cost
31
Q

Low cost strategy

A

Objective: become the lowest- cost operator in a market

  • involves production or operations on a large scale which leads to EOS- reduce unit costs
  • offer low prices (gain market share)
32
Q

Features of low cost strategy

A
  • high levels of productivity and efficiency
  • high capacity utilisation
  • large scale= EOS
  • bargaining power to negotiate lowest prices from suppliers
33
Q

Differentiation strategy

A

Aim to offer a product that is distinctively different rim the competition and where the customer values that differentiation

34
Q

Features of differentiation strategy

A
  • superior product quality
  • branding
  • wide distribution across all major channels
  • sustained promotion
35
Q

SWOT

A

Analysis of the internal strengths and weaknesses of the business and the opportunities and threats presented by its external environment

36
Q

What does SWOT state?

A
  • where you are now

- achievable corporate objectives

37
Q

What is “SW” in SWOT

A

Internal to business e.g marketing, HR, finance
Strengths
Weaknesses

38
Q

What is “OT” in SWOT?

A

External to business e.g PESTLE
Opportunities
Threats

39
Q

Advantages of SWOT

A
  • understand business better
  • helps focus on strategic issues
  • develop business goals and strategies for achieving them
40
Q

Limitations of SWOT

A
  • doesn’t prioritise issues
  • can generate too many ideas but not help man where choose which one is best
  • may be out of date
41
Q

What is PESTLE?

A 
Political 
Economic
Social 
Technological 
Legal 
Ethical
42
Q

Definition for PESTLE analysis

A

A framework for assessing the key features of the external environment facing a business

43
Q

PESTLE- political

A
  • competition policy
  • industry regulation
  • govnt spending
  • business policies
44
Q

PESTLE- economic

A
  • interest rates
  • consumer spending and income
  • exchange rates
  • business cycle
45
Q

PESTLE- social

A
  • demographic change
  • impact of pressure groups
  • consumer tastes and fashions
  • changing lifestyles
46
Q

PESTLE- technological

A
  • disruptive technologies
  • mobile technology
  • new production processes
  • big data and dynamic pricing
47
Q

PESTLE- legal

A
  • employment law
  • minimum/ living wage
  • health and safety laws
  • environment legislation
48
Q

PESTLE- ethical

A
  • sustainability
  • tax practices
  • ethical sourcing
  • pollution and carbon emissions
49
Q

Features of competitive market

A
  • high number of firms
  • low market share per firm
  • low profit margins
  • high degree of price competitiveness
  • low brand loyalty
50
Q

Determinants of intensity of rivalry

A
  • number of competitors in the market
  • market size and growth prospects
  • product differentiation and brand loyalty
51
Q

Definition for Porter’s 5 forces

A

Framework for analysing the nature of competition within an industry
- helps understand and assess industry profitability and attractiveness

52
Q

Porters 5 forces?

A
  • threat of new substitute
  • bargaining power of buyers
  • threat of new entrants
  • bargaining power of suppliers

Business Theme 3 (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions