strategy and implementation Flashcards
what is an objective?
something set by a business in the attempt to reach a particular goal - main business objectives include survival and breakeven
what is a strategy?
an action plan put in place in order for a business to achieve it’s objectives.
what is a tactic?
it is a step that a business may take to achieve that strategy.
what is porter’s five force model?
a system for analysing the level of competition in an industry/market. it looks at the forces that determine level of competitive intensity and profitability of that market.
what are porters five forces?
- threat of substitute products
- threat of new entrants - how easy is it to get in that market
- bargaining power of suppliers
- bargaining power of buyers/
what is porter’s generic strategies?
shows how a company can gain a competitive advantage.
what are the three strategies?
cost leadership
differentiation
focus or niche
what is cost leadership?
the aim is to be the lowest cost producer in the field. To achieve this a firm will need to benefit from economies of scale. - and then they will be able to put down prices.
what is differentiation?
this involves the firm producing a range of goods that is either different or perceived to be different from competitors.
what is focus of niche strategy?
this involves producing for a particular sector of the market who will be prepared to pay a premium price due to the short supply for example - mulberry clothing.
what is the fourth strategy that would not benefit a business.
“stuck in the middle” if a business tries to adopt all three it is unlikely to achieve success.
