Aims, objectives and strategy Flashcards
What is a vision statement?
A roadmap for a business, guiding them through values and giving direction in the long term.
What is a mission statement?
Saying or idea that defines the core ethos and purpose of a business.
What is the difference between strategy and tactic?
Strategy is long-term and complex whilst tactic is short term and quickly seen.
What are the four different types of strategy?
1) Corporate strategy = general plan for whole business
2) Strategic direction = how to reach certain aims
3) Divisional strategy = different departments strategy
4) Functional strategy = FMOP strategies
What is a corporate plan?
A statement of an organisation’s goals using SWOT.
What is Porter’s 5 forces?
A framework for analysing a company’s competitive environment. Looks at the number and power of competition, suppliers, new entrants, substitutes and customers.
What is the Ansoff Matrix?
A tool used to assess the level of risk and reward in a certain decision.
What is the difference between horizontal and vertical integration?
Horizontal is the coming together of two businesses in the same production sector, whilst vertical may be any two no matter the stage of production.
What is a merger?
Two businesses coming together and becoming one conjoined business?
What is a takeover?
One business taking over the identity and ownership of another.
What is franchising?
The process of a franchisor allowing franchisees to open and managed by independent entrepreneurs.
What is rationalisation?
Limiting unnecessary resources and reorganising a business to improve efficiency.
What is meant by outsourcing produciton?
Someone external to the business being hired to produce a product / part of a product.
What acronym is used to remember what objevtives should be based around ?
PEGSS (profit, ethics, growth, survival, shareholders)
