3.1.2- corporate strategy Flashcards
What is a corporate strategy?
Overall scope and direction of a business and the way in which its various business operations work together to achieve particular goals
What are 3 uses of a mission statement?
1) focus= helps focus and involve all employees
2) profitability= helps to motivate employees
3) identity= helps to create an identity in a competitive marketplace
What are 4 limitations of a mission statement?
- unrealistic and over optimistic
- waste of resources
- leads to conflict
- can be ambiguous
What are 2 uses of ansoffs matrix?
- businesses can identify all their current products or services, then consider their future opportunities
- helps identify new markets
What are 2 cons of ansoffs matrix?
- only shows part of the picture
- oversimplifies the market
What is porters strategic matrix?
He suggested there were 3 generic business strategies:
1) cost leadership- making products at lowest cost
2) differentiation- product is unique
3) focus- product will serve a specific niche
What are the four parts of Ansoffs matrix?
-market penetration
-market development
-product development
-diversification
What is market penetration and how can a business achieve it?
Existing products in existing markets
-encourage customers to use the product more
-adopting loyalty schemes
What is product development and what is a con of it?
Target existing markets but with new products
-need to do market research
What is market development and what do business need to think about when doing it?
New market but existing product (usually moving internationally)
think bout:
-cultural issues
-market research
What is diversification and what do business need to think about?
New products in new markets
Think about:
-market research and development=high costs
- high risk
