miss duddigan-cooperate objectives Flashcards
mission statement
written desciption of aims
intended to make shareholders aware of what business does
helps encourage employees to work towards aim
tell you purpose of business and aims
can give staff a sense of shared purpose
advanatgs of mission statment
gives employees feel of shared purpose encourages them to aim towards common goal
disadvantages of mission statements
they can lie, dont have to prove what they put on mission statement as accurate
can say what they feel customes want to hear
business reputation damaged if customers figure out that actions dont reflect
limited doesnt go into much detail
what does a mission ststement need to be
CLEAR/STRAIGHT TO THE POINT
what are the two types of objective departments
cooperate objective
departmental objectives
cooperate objectives
goals of the business as a whole
e.g small new business goal may be to surive
large business aim may be to grow bigger
why are objecgtives set
way to achieve your mission
departmental objectives
objectives for each department
more detailed and more specific
first cooperate objective set then boss of each depatement thinks how they can input and reach this aim by setting departmental objectives which are more specific
advantages of objectives
motivating for employees as have somethig to aim for
coordicnation increase within departments
objectives should be SMART
what does SMART stand for
specific
measurable
agreed
realistic
time bound
specific
havig objectives that are specific are more liekly to be acheived
e.g imporve qulaity is not specific enough
measurable
if not measurable business wont know if achieved or not
e.g imporve profit by 5%
agreed
everyone apart of objective needs to know it and agree to it
realistic
dont set objectives which are too ambitious as wont be met then demotivate staff
timely
should be specific timeframe
if no time limit, staff wont feel an urge
ainsoff matrix
Market penetration
product development
market development
diversification
market penetration
trying to increase market share in existing market
e.g. business achieving 25% market share but wants to achieve 30% market share
may use sales promotion, advertising etc
new product development
selling new products in existing market
maket has high market share good potential growth
market development
selling existing products in new market
done by repostioning-business focuses on a different segment of market
needs to research and find out how it can adpat ts product to match needs of another segment
may use different channels of distribution e.g ecommerance
can also be done by changing georgriphical loactions
diversification
selling new products in new markets
most risk
advantage of ainsoff matrix
makes managers think of level of risk when going in a new direction
disadvnatge of ainsoff matrix
doesnt show the singificant chnage these would make to everyday working
porter genetic strategies
are competitive strategies
Cost leadership
Differnetiation
Focus
what is cost leadership
calls for lowest cost of production for given quality
good for businesses who are efficent and achieve economies of scale
where business has low costs
beneficial if prices decline, firm can stay profitable
what is differentiation
provides product with unique attributes that consumers value
belive its better then rival products
unique allows businesses to charge higher premium prices
risks-imitation from competitiors, changes in consumer tastes
focus
concentrates on niche markets
focuses on either minimising costs or showing differentiation