Business objectives and strategy Flashcards

1
Q

What is a mission statement?

A

A brief statement written by the business describing its purpose and objectives to encapsulate its present operations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Who is the statement for and why?

A
  • Society (explain purpose)
  • Employees (shared purpose)
  • Customers (make a commitment)
  • Investors (attract)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the criticisms of a mission statement?

A
  • just PR?
  • too vague and general
  • actions may not support claims
  • everyone needs to buy in to make it effective
  • regarded cynically by staff
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a corporate objective?

A

Objectives of a medium to large sized business as a whole. Should be specific to the company and its mission statement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the components of porters modal of generic strategies?

A
  • Cost leadership (broad market, cost advantage)
  • Cost focus (narrow market, cost advantage)
  • Differentiation leadership (broad market, differentiation advantage)
  • differentiation focus (narrow market, differentiation advantage)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the features of cost leadership?

A
  • standard products
  • enjoy best profits
  • exploit economies of scale
  • lowest cost producer in the industry
  • high capacity utilisation
  • lean production methods
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the characteristics of differentiation focus?

A
  • Differentiates within a small target market segments
  • Needs to make sure customers actually have different wants and needs
  • niche market strategy
  • high prices (value added)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the characteristics of differentiation leadership?

A
  • Competitive advantage
  • premium prices (reflects high production costs - value added)
  • branding
  • superior product quality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the components in Ansoff’s Matrix?

A
  • Market penetration (existing product, existing market)
  • Market development (existing product, new market)
  • Product development (new product, existing market)
  • Diversification (new product, new market)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the characteristics of market penetration?

A
  • High market share (promotional strategies)
  • Doesn’t need much investment
  • Drives out competition (pricing strategies)
  • High loyalty in consumer base
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the characteristics of market development?

A
  • New geographical markets
  • New product dimensions
  • New distribution channels
  • New market segment.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the characteristics of product development?

A
  • Being first in the market
  • Research and development + innovation
  • Detailed insights into consumer demand
  • development of new competencies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is kay’s distinctive capabilities?

A

A form of competitive advantage that sustainable because it cannot easily be replicated by a competitor.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the three types of distinctive capabilities made by Kay?

A
  • Architecture (contracts and relationships within and around the organisation)
  • Reputation (quality and brand image)
  • Innovation (research, low costs, development)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What does SWOT analysis stand for?

A
  • Strengths (internal)
  • Weaknesses (internal)
  • Opportunities (external)
  • Threats (external)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are external influences that may impact a business?

A
  • Political
  • Economic
  • Social
  • Technological
  • Legal
  • Environmental
17
Q

What are porters five forces?

A

‘The nature of competition within the market’

  1. power of customers
  2. power of suppliers
  3. intensity of rivalry
  4. threats from substitutes
  5. threats of market entry
18
Q

What characteristics, according to porters five forces, do high profits industries have?

A
  • low power of customers
  • low power of suppliers
  • low intensity of rivalry
  • low threat from substitutes
  • low threats of market entry (high barriers to entry)