semester 1 final: part 2 Flashcards
SWOT
strengths, weaknesses, opportunities, and threats. - Advantages: helps develop a better understanding of an business’ position in the market. Disadvantages: SWOT does not guarantee the strategy will be successful, only provides a snapshot of the current situation for an organization
Market penetration
existing products, existing market
Market development
existing products, new market
Product development
new products, existing market
Diversification
new products, new market
Employees
are internal stakeholders that have a direct impact on the performance of the business they work for based on their work ethic
Managers
are internal stakeholders that are hired to oversee certain functions within an business
Shareholders
are internal stakeholders that buy shares in the company and therefore, own a part of the business
Customers
are external stakeholders that pay for the goods and/or services of the business
Suppliers
are external stakeholders that provide the goods for businesses
Local community
are external stakeholders that are the general public that have a direct interest in the activities of the business
Pressure groups
are external stakeholders that are people who come together for a common cause or concern
The government
are external stakeholders that make sure businesses operate in a legal way
STEEPLE (aka PESTLE)
Social, technological, economic, ethical, political, legal, environmental. Advantages: enables the business to identify opportunities and threats
Economies of scale
enable a business to benefit from lower average costs by increasing the size of its operations
Diseconomies of scale
causes the firm’s average costs of production to rise and occurs if the firm grows beyond its ability to operate efficiently
Internal (organic) growth
occurs when a business expands without the help of an external partner firm and uses its own resources to do so
External (inorganic) growth
occurs when a business needs the help of a partner organization for growth
Acquisitions
is external growth that involves 1 company buying a majority stake in another company, leading to a change in ownership
Merger
is external growth that involves 2 companies agreeing to form a single company and benefiting from operating on a larger scale
Joint ventures
is external growth that involves 2+ businesses agreeing to create a business entity, typically for a set period of time… typically funded by their parent companies
Strategic alliances
is external growth where 2+ businesses join together to benefit from external growth
Franchising
is external growth that involves the franchisor giving the legal rights to a franchisee to own, buy, and sell goods/services using the franchisor’s brand
Internal finance
sources of finance that come from within the organization from its own resources without the help of a third party…. includes personal funds, sales of assets
External finance
sources of finance that come from outside the business, usually with the help of a third party provider, includes loan capital, grants, business angels, etc.
CUEGIS
Change, culture, ethics, growth, innovation, strategy
Change
involves a business accommodating for the external business environment
Culture
describes a business’ traditions and the way things are done within the business depending on the region they’re in
Innovation
process of improving business through introducing new or adapting existing products/services
Strategy
long term decisions that allow business to reach a goal
