Business Objectives and Strategy

Question 1

what is a stakeholder?

Answer 1

a person/party with an interest in the success of a business

Question 2

Give 3 stakeholders/stakeholder groups of Tesco.

Answer 2

employees, customers, suppliers

Question 3

Name the 6 steps of the business plan.

Answer 3

(1)idea, (2) research/target (3)marketing plan, (4) operations plan (5) financial plan (6) risk analysis

Question 4

Why set a business plan?

Answer 4

• set targets
• cash control
• stays on track

Question 5

What are the 5 forces on porters 5 forces model?

Answer 5

• degree of rivalry
• threat of new entrants
• threat of substitutes
• bargaining power of suppliers
• bargaining power of customers

Question 6

explain degree of rivalry.

Answer 6

rivalry decreases attration of industry

Question 7

explain bargaining power of suppliers

Answer 7

smaller have less power than larger suppliers, who can control price more easily

Question 8

Define opportunity cost.

Answer 8

best alternative given up

Question 9

define reward

Answer 9

the possible return that particular activity may make

Question 10

define risk/uncertainty

Answer 10

the inability to calculate the cost and benefits of a decision precisley

Question 11

Give an example of an external risk

Answer 11

competitors

Question 12

what is an ethical business?

Answer 12

a business seen to be doing what is morally right

Question 13

Give advantages of being ethical.

Answer 13

improves image
more sales & profit
morally right
many customers care about it

Question 14

Give drawbacks of being ethical.

Answer 14

competitors may be cheaper
many customers don’t care
don’t stand out as much

Question 15

Define sustainability

Answer 15

meeting today’s needs without compromising the resources of the future

Question 16

Give 2 roles of local government.

Answer 16

• road maintenance

- waste management

Question 17

What is the bank of england responsible for?

Answer 17

interest rates

Question 18

Give 2 roles of the national government.

Answer 18

healthcare
education
major roads

Question 19

What does the single market allow us to do?

Answer 19

• free movement of goods and services
• free movement of people
• free movement of workers
• cohesion fund

Question 20

what is a mission statement?

Answer 20

formal summary of the aims and values of a business

Question 21

what is an objective?

Answer 21

detailed picture of the steps needed to be taken to achieve an aim

Question 22

what are the two types of objectives?

Answer 22

strategic and tactical

Question 23

explain what is meant by strategical objectives.

Answer 23

overall plan involving what the next move is

Question 24

explain what is meant by tactical objectives.

Answer 24

carrying out the plan physically

Question 25

What does SMART objectives stand for?

Answer 25

s - specific
m - measurable
a - achievable/attainable
r - realistic
t - time

Question 26

What is the difference between financial and non financial measures of performance?

Answer 26

financial - concerned with money

non-financial - omits monetary value

Question 27

why might a business forecast?

Answer 27

to predict expenditure etc. and be able to consider what to do to expand