3.1 Business Objectives

Question 1

What is ansoffs matrix?

Answer 1

Ansoffs matrix is a tool for a business with a growth objective it is used to identify an appropriate corporate strategy and identify the level of risk associated with it

Question 2

What does ansoffs matrix look like?

Answer 2

https://cdn.savemyexams.com/cdn-cgi/image/f=auto,width=1920,w=1280/uploads/2023/05/3-1-2-ansoffs-strategic-matrix.png

Question 3

What is porters generic strategic matrix?

Answer 3

Porters generic strategic matrix identifies a range of stratgies a business might adopt considering
- its source of competitive advantage
- the scope of the market

Question 4

What does porters generic strategic matrix look like?

Answer 4

https://cdn.savemyexams.com/cdn-cgi/image/f=auto,width=1920,w=1280/uploads/2023/05/3-1-2-the-boston-matrix.png

Question 5

What is portfolio analysis?

Answer 5

Portfolio analysis involves a business carrying out a detailed evaluation of its full range of products in order that appropriate strategies may be identifies and pursued

Question 6

What is the Boston matrix?

Answer 6

The Boston matrix is a portfolio analysis tool that considers the relative market share of a firms products and the rate of growth within the market

Question 7

What does the Boston matrix look like?

Answer 7

https://cdn.savemyexams.com/cdn-cgi/image/f=auto,width=1920,w=1280/uploads/2023/05/3-1-2-the-impact-of-the-tactical-decision-1-2.png

Question 8

How could you evaluate the competitive advantage gained from operational skills and expertise within a business?

Answer 8

• A business may have an outstanding and committed design team
• This may mean that product development is a suitable strategy

Question 9

How could you evaluate the competitive advantage gained from relationships and networks within the business?

Answer 9

• A business may have developed close trading relationships with key suppliers
• This may mean that a low cost strategy is possible

Question 10

How could you evaluate the competitive advantage gained from reputation and image of the business?

Answer 10

• A business may develop an excellent reputation for quality
• A differentiation strategy is likely to be appropriate

Question 11

How could you evaluate the competitive advantage gained from innovation and the ability to change ?

Answer 11

• A business may be particularly effective at responding to external change
• A market development strategy is likely to be suitable

Question 12

What are the 3 distinctive capabilities?

Answer 12

Architecture, reputation, innovation

Question 13

What is a tactical decision?

Answer 13

Tactical decisions are made to support the overall strategy and are usually short term

Question 14

What is strategic decision making?

Answer 14

Strategic decision making involves medium to long term palming to achieve corporate objectives

Question 15

What does the hierarchy of objectives include?

Answer 15

1. Aims
2. Mission statement
3. Corporate objectives
4. Functional objectives

Question 16

What does SMART objectives stand for?

Answer 16

Specific
Measureable
Agreed
Realistic
Time-bound

Question 17

What is SWOT analysis?

Answer 17

SWOT analysis is an analytical tool used by businesses to identify internal strengths and weaknesses and external opportunities and strengths

Question 18

What does PESTLE stand for?

Answer 18

Political
Economic
Social
Technological
Legal
Environmental

Question 19

What are the reasons for changes in the structure of markets over time?

Answer 19

Businesses leave and enter the market integration
Changes in the regulatory framework
Globalisation
Changes in consumer tastes and preferences
Growth of the internet

Question 20

What are porters 5 forces?

Answer 20

1. Industry rivalry
2. Buyer power
3. Threat of substitution
4. Supplier power
5. Threat of new entry

Question 21

What does porters 5 forces identify?

Answer 21

Identify the key pressures on an industry that impact the ability of a business to compete with rivals