Business Objectives And Stratedy Flashcards
Mission
An aim expressed in a particularly inspiring way
Mission statement
A short passage of texts that sums up an organization’s mission, this may get displayed on walls, throughout the business and placed prominently on websites
Distinctive capabilities
Ways a firm operates that cannot be easily copied by rivals eg. ryanair’s cost minimisation
Economies of scale
Factors that cause average costs to fall when output increases
Generic strategy
A strategic position that will prove effective in every market, ie. generically
Product differentiation
The extent to which consumers view one product as being distinct from its rivals
Stock units
The number of different brands and pack sizes stocked by a company
Diversification
When a company expands its activities outside its normal range-reduce risk or expand possible markets
Repositioning
Changing a product or its promotion to appeal to a different market segment
Benchmarking
Comparing your own performance with that of rivals to try to identify and learn from best practice
Demography
Factors relating to the population such as changes in the number of older people or level of immigration
Lobbying
Where electors came to talk to their local MP
Disruptive
Technology would shift a whole sector towards a new way of doing things, this may be painful for those left behind
What if questions
Hypothetical-used to test out different possibilities or theories
Competitive advantages
The factors that enable a business to sustain a profitable position in a competitive market
Substitutes
Similar products that consumers are happy to substitute with eachother
Aims
A generalised statement of where a business is heading
