3.1

Question 1

what is a mission statement?

Answer 1

sets out the purpose of the business (why it exists)

Question 2

what are corporate objectives?

Answer 2

quantify the mission of a business and set measurable targets for the whole organisation

Question 3

what are internal factors affecting corporate objectives?

Answer 3

• poor performance
• new leadership
• business ownership
• business culture
• business growth

Question 4

what are external factors affecting corporate objectives?

Answer 4

• economic conditions
• social change
• actions of competitors
• global prices
• technological change

Question 5

what are strategies?

Answer 5

medium to long term plans made by a business to meet its corporate objectives

Question 6

what is meant by corporate strategy?

Answer 6

the course or route that a business has chosen to follow in order to achieve its corporate objectives

Question 7

what does the Ansoff matrix look into?

Answer 7

the degree of risk and potential for reward from different strategic options

Question 8

what are the 4 potential strategies in the Ansoff matrix?

Answer 8

• market penetration
• market development
• new product development
• diversification

Question 9

what is market penetration?

Answer 9

trying to sell more of an existing product to the existing market

Question 10

what is market development?

Answer 10

attracting new customers to buy existing products

Question 11

what is product development?

Answer 11

selling new and better products to existing customers

Question 12

what is diversification?

Answer 12

selling new products to new markets

Question 13

what is porters strategic matrix?

Answer 13

a matrix that categorises the marketing strategies a business can adopt to try and achieve a competitive advantage

Question 14

what are the four strategies of the generic strategy?

Answer 14

• cost leadership
• differentiation
• focused cost leadership
• focused differentiation

Question 15

what does a product portfolio analysis do?

Answer 15

looks at the range of products and brands that a business has under its control

Question 16

what does ‘SWOT’ stand for?

Answer 16

strengths, weaknesses, opportunities, threats

Question 17

are the strengths and weaknesses internal considerations?

Answer 17

yes

Question 18

are the opportunities and threats external considerations?

Answer 18

yes

Question 19

what is SWOT analysis?

Answer 19

a diagnostic tool used to identify the internal strengths and weaknesses and the external opportunities and threats to a business

Question 20

what does ‘PESTLE’ stand for?

Answer 20

Political, Economic, Social, Technological, Legal, Environment

Question 21

What is ‘PESTLE’?

Answer 21

a way of identifying the potential external influences on a business

Question 22

what is regulation?

Answer 22

something undertaken by the government to create competitive markets

Question 23

what is de-regulation?

Answer 23

the opening up of markets to new competition through the removal of rules and regulations that created barriers to entry

Question 24

what are porters five forces?

Answer 24

• rivalry within the market
• bargaining power of suppliers
• bargaining power of buyers
• threat of new entrants
• threat of substitutes

Question 25

what does the porters five forces model do?

Answer 25

analyses the key issues facing a business

Question 26

what is rivalry within the business?

Answer 26

the level of competition and rivalry between businesses within the market

Question 27

what is bargaining power of suppliers?

Answer 27

the power suppliers have to negotiate terms and prices

Question 28

what is bargaining power of buyers?

Answer 28

the power buyers have to negotiate terms and prices

Question 29

what is threat of substitutes?

Answer 29

the threat of new alternative products that deliver the same benefits to the customers

Question 30

what are barriers to entry?

Answer 30

the factors that stop a firm from entering the market