Analyse Strategi Position Of B Flashcards

Question

Open trade v protectionism

Answer 1

Open trade- no restrictions placed on transactions between 2 countries Protectionism - protecting domestic countries

Answer 2

Additional taxes on imports- making them more expensive

Answer 3

Limit on how many things allowed to be imported

Answer 4

Gov gives me only to domestic to help protect , export oversea

Answer 5

More international trade Falling transport costs allow this Tech advancements Reduction in protectionism Rising world incomes and living standards Emergence or global supply chain- import from all over the world

Answer 6

Finance - increase revenue from ability to sell overseas Fall in cost of imported raw materials/increases in competition in the supply chain Marketing- emergence of global brands Cost of ad Promotional campaigns -social media Operations - falling transport costs, global supply chains People- Reduced communication costs Increased labour opp

Answer 7

Specialisation- leading to USP Increase comp and choice Lower prices, more innovation, improved service and quality Economies for scale, cost competitive More efficient suppliers Opp for internatial expansion

Answer 8

More comp from cheaper producers Diseconomies for scale Unemployment in domestic markets Increased environmental impact Unethical— bad rep- CSR

Answer 9

Large young populations, increasingly wealthy • Emergence of a 'middle class' • Demand for foreign goods • Removal of protectionist barriers • Potential 'first mover advantage' • Outsourcing opportunities cutting costs of production

Answer 10

Protectionist measures on imports Cancel ••• Card 34 of 34 Done Competition from low cost / high quality producers Threat for emerging economies + Legal protection - i.e. breach of copyright laws [Answer] Lower production standards than in developed markets • Volatile economies spreading

Answer 11

Philanthropic responsibilities Ethical responsibilities Legal responsibilities Economic responsibilities

Answer 12

Need a profitable base in order to survive and therefore benefit society in the long term Want to do more than just make a profit, want to make a contribution towards society Eg cant invest in solutions like climate change, if not profitable

Answer 13

Minimum requirement, have to adhere to laws and regulations Treat customers, employees and society to at least the lowest acceptable standards

Answer 14

Optional - but may attract ethical customers Ie - workers in developing countries are being treated well, not working in bad conditions

Answer 15

Giving time, resources, effort, money to society at large

Answer 16

Engaging with Philantrhropic responsibilities- could take cash away from profit of the business But Better rep Attract more ethical customers Growing trend to be more ethical

Answer 17

Ie - electronic payment systems, reduce of carrying cash Instant payment Ie- accounting systems and computer software, reduced human error , easier analysis, better record keeping

Answer 18

Websites- increased data on individuals, more personalised ads Lower cost advertising Conduct market research Ie -social media, real time promotion

Answer 19

Stock management systems- reduced cost of holding raw materials Introduction of JIT methods Closer relationships with supplier Mass customisation- do online then send through to business Improved machinery- capital intensive Increase output and labour productivity But impact on creativity

Answer 20

Job training in building, online- reduce costs and better skilled Laptops Flexible working practices, working from home

Answer 21

Lower costs through fewer mistakes Increase customer satisfaction through consistency and quality of production Better communication it’s workforce- online Improve knowledge of customers through collection fo big data

Answer 22

Costs of initial machine instalments Impact on ability to customise / hand make products High cost of investment in new tech Training cost to use the tech Labour feel disvalued, less motivated

Answer 23

Shareholders- dont want bad rep, could lower share price General public- protest, want Customer- prepared to pay premium price, ie fair trade chocolate, creates USP, improve brand image, create positive PR But Increased cost, raw materials, renewable energy Cost of monitoring and managing

Answer 24

Entry threat (barriers to entry) Buyer power Supplier power Rivalry Substitute threat In competitive markets - analysis of this comp environment - can form a strategy

Answer 25

Impact on overall level of competitiveness - depends on the number of suppliers available for your product you need If you need specific raw material for your production process , and there are very few suppliers who can provide this, they will have power to raise price, If they’re late with delivery, cant do anything about it, unsatisfied customers Suppliers have less power if- many of them, lots of choice - get discounts, better credit terms

Answer 26

Not very threat if large market with customers who buy small amounts But Industries with only one or two buyers, then power of buyers will be high - ie company that makes army uniforms, and they decide they dont want your products anymore , threat to your business

Answer 27

Determined by barriers to entry Costs - stop new business from coming into market Ie- high start up costs - economies of scale, cost advantages of getting bigger, employee more specialised people- cuts average cost of production - negotiate special deals with suppliers -legislation, health and safety ie starting up airline , takes time and money -existing brand loyalty -specialist knowledge, need

Answer 28

- if elastic, more likely to switch

Answer 29

Strategy: create high barriers to entry by - MARKETING -create price Inelastic product, dont have to cut prices, compete on prices when new entrants into market Creation of USP and strong brand image FINANCE - allocate lots fo budget to marketing and R and D, make more difficult for new entrants OPERATIONS- automate productions, gain economies of scale and specialist knowledge , position as handmade tailored product to create Barrie to entry PEOPLE/ HR- investment in training and building skills Impact on profit- low barriers to entry=low profits , have to cut prices to compete with new entrants High barriers to entry=higher profit, less choice, more premium pricing

Answer 30

Reduce power of individual buyers by increasing ales to a greater number of customers MARKETING - promote products more, advertising FINANCE_ offering credit/ favourable terms for new customers OPERATIONS - mass customisation to appeal to more customers PEOPLE/ HR- increase training from sales team Impact on profit Fewer customers = lower profits (can negotiate favourable credit terms, econ of scale) More customers= higher profits (less reliant on one customers, dont need to cut prices for them)

Answer 31

Reduce proportion of inputs to the production process provided by a single supplier - not reliant on one supplier MARKETING - diversify product range , introduce new products that need different raw materials, can use other suppliers if ours puts up their pricing, help spread risk FINANCE- increase gearing (borrowing) to reduce need to buy on credit , more cash , not looking for supplier that will offer credit terms, can rather go to any supplier OPERATIONS- build relationships with new suppliers, increase amount of buffer stock so not reliant on particular suppler to hold stock for us - give more cost though Impact on profits Fewer suppliers = lower profits More suppliers = higher profits

Answer 32

Socialise in order to fulfil a particular need - gain brand loyalty, USP, so desirable that there are not many substitutes available - or price competitive, but will have to lower cost MARKETING- increase market research into customer needs , develop product with particular USP FINANCE-OPERATIONS - invest in specialist equipment HR- train employees with key skills and unique attributes, customer service Impact on profits Fewer substitutes=lower profits More suppliers=higher profits

Answer 33

Diversify into new areas and a USP MARKETING- r and d, product development and creating strong brand image FINANCE- reinvest profit into new product and market development, instead of short term to shareholders OPERATIONS- mass customisation to create USP HR- recruit and train staff to develop strong creativity and product development skills

Answer 34

Length for time it takes for the initials cost of investment is retuned to the business

Answer 35

Shorter pay back period= preferred, once payback occurs, this is when business scan strat making a profit Longe payback means = more risk, more difficult to predict condition further into future Assumes cash flow is consistent throughout year +easy, more accurate as simply -not calculate profitability, doesn’t account for seasonality

Answer 36

Higher rate is better - higher return than interest rate is better

Answer 37

Technique managers use to assess the attractiveness of potential investments that compares to the expected cash outflows to the expected cash inflows

Answer 38

If cash inflows and cash outflows are accurate for investment appraisal Best case scenario Expected outcome Worst case Shows if investment is risky, How confident they are Assess of external environment

Answer 39

Net cash flow - initial cost total net return/ no. of years Average annual return / initial cost x 100

Answer 40

Net cash flow x Discount factor Add together

Answer 41

NPV/ initial cost x100