Business Objectives and Strategy Flashcards
what is a stakeholder?
a person/party with an interest in the success of a business
Give 3 stakeholders/stakeholder groups of Tesco.
employees, customers, suppliers
Name the 6 steps of the business plan.
(1)idea, (2) research/target (3)marketing plan, (4) operations plan (5) financial plan (6) risk analysis
Why set a business plan?
- set targets
- cash control
- stays on track
What are the 5 forces on porters 5 forces model?
- degree of rivalry
- threat of new entrants
- threat of substitutes
- bargaining power of suppliers
- bargaining power of customers
explain degree of rivalry.
rivalry decreases attration of industry
explain bargaining power of suppliers
smaller have less power than larger suppliers, who can control price more easily
Define opportunity cost.
best alternative given up
define reward
the possible return that particular activity may make
define risk/uncertainty
the inability to calculate the cost and benefits of a decision precisley
Give an example of an external risk
competitors
what is an ethical business?
a business seen to be doing what is morally right
Give advantages of being ethical.
improves image
more sales & profit
morally right
many customers care about it
Give drawbacks of being ethical.
competitors may be cheaper
many customers don’t care
don’t stand out as much
Define sustainability
meeting today’s needs without compromising the resources of the future
Give 2 roles of local government.
- road maintenance
- waste management
What is the bank of england responsible for?
interest rates
Give 2 roles of the national government.
healthcare
education
major roads
What does the single market allow us to do?
- free movement of goods and services
- free movement of people
- free movement of workers
- cohesion fund
what is a mission statement?
formal summary of the aims and values of a business
what is an objective?
detailed picture of the steps needed to be taken to achieve an aim
what are the two types of objectives?
strategic and tactical
explain what is meant by strategical objectives.
overall plan involving what the next move is
explain what is meant by tactical objectives.
carrying out the plan physically
What does SMART objectives stand for?
s - specific m - measurable a - achievable/attainable r - realistic t - time
What is the difference between financial and non financial measures of performance?
financial - concerned with money
non-financial - omits monetary value
why might a business forecast?
to predict expenditure etc. and be able to consider what to do to expand
