Decision Making Flashcards
What is decision making?
Choosing the best option while having an opportunity cost
Whats a short term decision?
Making best sue of resources in short term eh what batch to make
Whats a medium term decision?
Will affect business over 6 months to a year eg choosing finance
Whats a long term decision?
The overall goals of the business set 4 or 5 ears in the future eg building new factory
Whats a strategic decision?
Long term decision concerning the whole environment the business operates in eg expansion
Whats a tactical decision?
Concerns the more detailed implementation of the directs general strategy
Whats an operational decision?
These concern and affect the day to day running of the business
What is Ansoffs matrix?
A marketing planning model that is used to assess the risk of different growth strategies
What do the arrows represent on the left and top of Ansoff’s matrix?
Increasing risk
What goes down the left of Ansoff’s matrix?
Existing markets and new markets
What goes on the top of Ansoff’s matrix?
Existing product and new product
What are the four circles in clockwise order in Ansoff’s matrix?
Market penetration, product development, market development, diversification
What is market penetration?
The extent to which a product is recognised and bought by customers in a particular market. Selling existing product into existing market. Lowest risk strategy trying to inc market share
What is product development?
A growth strategy where a business aims to introduce new products into existing markets.
What is market development?
A growth strategy where the business seeks to sell its existing products into new markets.
