Strategy and Implementation Flashcards
Corporate plan
A plan containing details of a business’s objectives and how it intends to achieve them.
Impact of a corporate plan on stakeholders
Potential investors when a share sale is considered
Major lenders to the business
Communication with staff keeps up motivation
Important that employees are aware of direction of business
SWOT
Strengths
Weaknesses
Opportunities
Threats
Strengths and Weaknesses
Internal aspects of the business:
What the business is good at
What is holding back the development of the business
Opportunities and Threats
External aspects of the organisation:
What is happening in the market
What could potentially constrain the business
Differentiation
Showcases the differences between products.
Porter’s Five Forces
Bargaining power of suppliers
Cost of switching to alternative suppliers
Number and size of firms supplying
Competition for the output from other industries
Bargaining power of buyers
Number of customers
Range of suppliers
Cost of switching to alternative suppliers
Ansoff Matrix
Aims to increase market share.
Horizontal integration
When two business in the same industry and stage of production merge.
Conglomerate integration
When businesses from different industries merge.
Vertical backward integration
When a business merges with a company in the same industry but they are a supplier.
Vertical forward integration
When a business merges with a company in the same industry but they are a customer of the business.
Internal growth
Expansion by means of opening new shops or factories.