3.1 Business Objective and Strategy

Question 1

SMART objectives

Answer 1

Specific
Measurable
Agreed
Realistic
Time-bound

Question 2

Heirarchy of business objectives

Answer 2

Aims- long term
Mission statement- overall aim and core values
Corporate objectives- performance goals over a period of time
Functional objectives- day to day goals

Question 3

Ansoff Matrix 4 elements

Answer 3

Existing product existing market- market penetration

Existing product new market- market development

New product existing market- product development

new product new market- diversification

Question 4

Porters Generic Strategic Matrix (competitive advantage)

Answer 4

Mass market- either cost leadership or differentiation

Niche market- both

Question 5

Boston Matrix definition and categories

Answer 5

Shows a firms market growth and market share

High growth high share- stars
High growth low share- ?
Low growth high share- cash cow
Low growth low share- dogs

Question 6

SWOT Analysis

Answer 6

used to identify a firms strengths, weaknesses, opportunities and threats

Question 7

PESTLE Analysis acronym and use

Answer 7

external factors that impact a firms outcomes
Political
Economic
Social
Technological
Legal
Environmental

Question 8

Changes in the market structure 4

Answer 8

Internet
changing tastes/preferences
globalisation
regulation

Question 9

Porters 5 forces model factors (key pressures on an industry that impact the ability to compete) TTIBS

Answer 9

Industry rivals- lots of competitors
Threat of new entry
buyer power
supplier power
threat of substitutes