CHAPTER 9 Flashcards
what is a corporation
a very big organisation
what is a corporate objective?
a objective that applies to everyone in a business
what are the corporate objectives at PLCs
Growth
Diversification
Satisfying eg to satisfy everyone, distribute 15% dividends and 15% reinvested
what are the internal influences on corporate objectives?
Ambitions of the business leader
Financial influences
Human resource influences-eg. Need experienced staff for a new market
what are the external influences on corporate objectives?
Tastes/Fashions
Changing legislation
Survival- new businesses
what are corporate strategies?
A medium to long term plan about how to achieve the objectives
what is the difference between tactics and strategy?
tactics are day to day decisions decided on the functional level eg marketing
what is the main business tool that a business uses to choose what products to produce and which markets to sell in
Ansoff’s Matrix
what is the risk and reward to a business which stays in the same market with the same product?
Low
what is the the most risky and rewarding strategy a business can implement?
Diversification
what is the Ansoffs matrix?
a strategic or marketing planning model that can be used to help a business decide its strategic direction
give an example of a business that can relate to Ansoffs matrix?
stage coach
how did stage coach undergo market development?
- In the Early 1990s it bought bus operations in Malawi, New Zealand, Portugal, Hong Kong, Sweden
- Bought coach USA, the largest bus bus and coach operator in the USA
how has stagecoach diversified?
- Stagecoach took over south west trains in 1995
- 1996 they bought porterbrook, a company that leases trains to rail franchises and then sold it for 100 mill profit
- they bought sheffields supertram in 1997
- bought prestwick international airport in 1998
how has stage coach under gone product development?
- Introduced the uks first low cost inter city travel service in Mega bus
- Focused on trying to introduce biodiseal buses fueled by cooking oil