Business Chapter 2

Question 1

Corporate strategy

Answer 1

The plans and policies developed to meet a company’s objectives. It is concerned with what range of activities the business needs to undertake in order to achieve its goals. It is also concerned with whether the size of the business organisation makes it capable of achieving the objectives set.

Question 2

Customer base

Answer 2

A group of customers that make continual repeat purchases from a business

Question 3

Diversification

Answer 3

Developing new products in new markets

Question 4

Market development

Answer 4

The marketing of existing products in new markets

Question 5

Market penetration

Answer 5

Using tactics such as the marketing mix to increase the growth of existing products in an existing market

Question 6

Portfolio analysis

Answer 6

A method of categorising all the products of the firm ( its portfolio ) to decide where each one fits within the strategic plans

Question 7

Product development

Answer 7

Marketing new or modified products in existing markets

Question 8

Theoretical model

Answer 8

A situation that could exist but doesn’t really