Long-term Objectives Flashcards
What are the areas in which long-term objectives are commonly established?
Profitability
Competitive Relations
Employee Relations
Social Responsibility
Productivity
Employee Development
Technological Leadership
State the criteria used in preparing long-term objectives
Flexible
Measurable
Motivating
Suitable
Understandable
What is the balance scorecard?
It refers to a set of four measures that are directly linked to the company’s policy
What are the perspectives managers use in evaluating a company based on the scorecard
Financial performance
Customer knowledge
internal business processes
learning and growth
Define Generic Policies
It is a long-term policy that is based on a core idea about how the firm can best compete in the marketplace
What are the Generic policies
Striving for overall low-cost leadership in the industry
Striving to create and market unique products for varied customer groups through differentiation
Striving to have special appeal to one or more groups of consumers , focusing on their differentiation concerns
State the characteristics of low-cost leadership
They usually excel at cost reductions
They maximise economies of scale, implement cost cutting technologeies
A low cost leader is able to use its cost advantage to charge lower prices or to enjoy higher profit margins
State the characteristics of Differentiation
Strategies dependent on differentiation are designed to appeal to customers with a special sensitivity for a particular product
Produce products that are above other product qualities in an attempt to build customer loyalty
They are able to charge a premium price for their products as a result of the loyalty gained
State the characteristics of Focus
Attempts to amend to the needs of a particular market segment
willing to serve isolated geographic areas to satisfy needs of customers with special financing
willing to tailor products to the somewhat unique demands of the small-medium-sized customer
What is operational excellence
This policy attempts to lead the industry in price and convenience by pursuing a ficus on lean and efficient operations
What is customer intimacy
it means continually shaping products and services to fit an increasingly refined definition of the customer
Define product leadership
it involves striving to produce a continuous state of the art product and services
What is a grand policy?
It is a master long-term plan that provides basic direction for major actions for achieving long-term business objectives
What is concentrated growth?
It is the policy of the firm that directs its resources to the profitable growth of a dominant product, in a dominant market, with a dominant technology
What is Market Development?
It consists of marketing present products to customers in related marketing areas by adding channels of distribution or by changing the content of advertising or promotion
