RAG sheet gaps n Flashcards
why do businesses exist?
- make profit
- for personal gain/prestige
- wealth
- create products
- enhance country’s reputation
reasons for changing business forms?
- liability
- shares/dividends
- capital
what is the role of a shareholder?
they own the company, have a say in how the business runs, and receive some profit
what is the effect of ownership on mission and objectives?
Gaining expertise from shareholders which will force objectives and mission to change
why consider stakeholders’ needs when decision making?
because they help the business in its development, providing support, ideas and resources, and they have a common interest in the businesses success
what is extrapolation?
estimating or concluding something by assuming that existing trends will continue or a current method will remain applicable.
what is positioning?
the place you want your brand or product to have within a particular target market
what are the 4 stages of the product life cycle?
launch, growth, maturity, decline
penetration pricing
starts at a low price, increases once sales increase, short term
cost- plus pricing
add all costs, add a % to ensure profit is made
price skimming pricing
setting high initial price, once competition is increased, lower prices to beat competitiors
SMART?
Specific
Measurable
Achievable
Relevant
Time bound
