Partial 2 Flashcards
Aim
The long-term goals of a business, often expressed in the firm’s mission statement. They are a general statement of a firm’s purpose or intentions and tend to be qualitative in nature.
Ansoff matrix
(1957) An analytical tool to devise various product and market growth strategies, depending on whether businesses want to market new or existing products in their new or existing markets.
Corporate Social Responsibility
The conscientious consideration of ethical and environmental practices related to business activity.
Code of ethics
The documented beliefs and philosophies of an organization.
Ethics
The moral principles that guide decision-making and strategy. Morals are concerned with what is considered to be right or wrong, from society’s point of view.
SMART objectives
Targets that are specific, measurable, achievable, realistic and time constrained.
SWOT analysis
Is an analytical tool used to assess the internal strengths and weaknesses and the external opportunities and threats of a business decision, issue or problem.
Joint venture
A growth strategy that combines the contributions and responsibilities of two different organizations in a shared project by forming a separate legal enterprise.
Lateral integration
Unit not yet reviewed.
Merger
Unit not yet reviewed.
Multinational company
An organization that operates in two or more countries, with its head office usually based in the home country.
Optimal level of output
The most efficient scale of operation for a business which occurs at the level of output where average costs of production are minimized.
Backward vertical integration
Unit not yet reviewed.
Conglomerates
Unit not yet reviewed.
Diseconomies of scale
Are the costs disadvantages of growth. Unit costs are likely to eventually rise as a firm grows due to a lack of control, coordination and communication.
