Chapter 2 Flashcards
business planning
an ongoing process of making decisions that guides the firm both in the short term and for the long term
business plan
a plan that includes the decisions that guide the entire organization
business ethics
rules of conduct for an organization
code of ethics
written standards of behavior to which everyone in the organization must subscribe
strategic planning
a managerial decision process that matches an organization’s resources and capabilities to its market opportunities for long term growth and survival
strategic business units (sbu’s)
individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors
functional planning
a decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organization’s long term strategic pln
operational planning
a decision process that focuses on developing detailed plans for day to day activities that carry out an organization’s functional plans
mission statement
a formal statement in an organization’s strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources
situation analysis
an assessment of a firm’s internal and external environments
internal environment
the controllable elements inside an organization, including its people its facilities, and how it does things that influence the operations of the organization
external environment
the uncontrollable elements outside an organization that may affect its performance either positively or negatively
SWOT analysis
an analysis of an organization’s strengths and weaknesses and the opportunities and threats in its external environment
business portfolio
the group of different products or brands owned by an organization and characterized by different income generating and growth capabilities
portfolio analysis
a management tool for evaluating a firm’s business mix and assessing the potential of an organization’s strategic business units
BCG growth market share matrix
a portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products
stars
SBUs with products that have a dominant market share in high growth markets
cash cows
SBUs with a dominant market share in a low growth potential market
question marks
SBUs with low market shares in fast growth markets
dogs
SBUs with a small share of a slow growth market. they are businesses that offer specialized products in limited markets that are not likely to grow quickly
market penetration strategies
growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets
market development strategies
growth strategies that introduce existing products to new markets
product development strategies
growth strategies that focus on selling new products in existing markets
diversification strategies
growth strategies that emphasize both new products and new markets
control
process that entails measuring actual performance, comparing this performance to the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis
return on marketing investment (ROMI)
quantifying just how an investment in marketing has an impact on the firm’s success, financially and otherwise
action plans
individual support plans included in a marketing plan that provide the guidance for implementation and control of the various marketing strategies within the plan. sometimes referred to as marketing programs
operational plans
plans that focus on the day to day execution of the marketing plan. include detailed directions for the specific activities to be carried out, who will be responsible for them, and time lines for accomplishing the tasks
