Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Strategy > Strategy Theory > Flashcards

Strategy Theory Flashcards

1
Q

How do you do TSA?

A
  • Plot real data on graph
  • Work out 3/4/8 moving average
  • Use this to plot on graph
  • Extend the line and move prediction
  • Work out variation and adjust the figure
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the uses of TSA?

A 
To predict future sales based on trend
Shows changes in market size
Business planning-marketing
Decision making tool
Stock Control
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the drawbacks of TSA?

A

It is descriptive
Doesn’t take external factors in to account
Smooths out figures so prediction is less accurate
Flexible meaning you could not include data

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What four categories are presented on the Ansoff Matrix?

A

Market penetration-present present
Product Development- new product, existing market
Market Development-existing product, new market
Product/market diversification-new new

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is critical path analysis?

A

Critical path analysis is a technique that identifies the cheapest and fastest way to complete an operation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the advantages of critical path?

A

Can allow the business to plan appropriately for their operations
It isn’t too difficult to calculate the total float
Can make decisions based on delay time available
Used to help ordering
Detailed visualisation of operation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the disadvantages of critical path?

A

The diagram can be confusing if their are lots of activities involved
Does not account for external factors
Only deals with what the business controls
Doesn’t work if you don’t have the timings right initially

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How do you calculate ROCE? (Both ways)

A

Profit before tax and interest/Long term capital employed x100
Profit before taxation/ Equity shareholders funds and loans x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How do you calculate Gross Profit Margin?

A

Gross Profit/Turnover x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

How do you calculate Net Profit Margin?

A

Net profit/Turnover x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How do you calculate return on equity? (both ways)

A

Net profit/Equity x100

Net Profit/Share Capital x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How do you calculate Gearing Ratio?

A

Fixed Cost capital/Long term Capital x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is liquidity?

A

The ability to pay off short term debt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How do you calculate Working capital?

Working capital same as net current assets

A

Current assets-current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How do you calculate current ratio?

A

Current assets/current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

How do you calculate Acid Test ratio?

A

Current assets-stock/current liabilties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How do you calculate asset turnover?

A

Turnover/Net Assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

How do you calculate Stock Turnover?

A

Cost of sales/Stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

How do you calculate Debtor collection period?

A

Debtors/turnover x365

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

How do you calculate Creditor Payment?

A

Creditors/Cost of Sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are the advantages of decision tree?

A

May make a business consider possible course of action not previously considered
Results are fairly accurate due to placing numerical values on the tree
Help separate important and unimportant risks
Shows opportunity costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are the disadvantages of decision trees?

A

Much of it is based on probabilities which are not often estimated
Time lags occur in decision making so some numerical data may become out of date
Process is time consuming using valuable business resources
Don’t take in to account dynamic nature of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is incremental change?

A

Bit by bit, people have chance to get used to it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is catastrophic change?

A

Massive change, takes effect immediately

25
Q

How can change effect a business?

A 
Effect their objectives
Reputation
May have positive or negative affect on sales
Financial impacts
Loss or gain of economies of scale
Staff
26
Q

What is a proactive method of change?

A

Businesses create the change themselves

27
Q

What is a reactive method of change?

A

Business have to take effect to external factors. Change as the business world changes.

28
Q

What would firms do in standard procedure to accommodate change?

A 
Training
Machinery
Communication
Business Plan
Finance 
R+D
29
Q

Why are businesses resistant to change?

A 
Used to a product how it is
Waste of time and money if the product fails
Risk
Creates uncertainty
Potential unemployment
30
Q

What is the hierarchy of objectives? (top to bottom)

A

Corporate objectives -the whole company
Business objectives
Functional objectives-marketing, finance etc
Employee objectives

31
Q

What is functional/operational strategy?

A

To improve the business operation e.g. lean production

32
Q

What are business level strategies?

A

Used to gain complete advantage e.g. Ansoff matrix

33
Q

What is corporate strategy?

A

Effects the longer term position of the company e.g. joint ventures

34
Q

What is international strategy?

A

Transfer of resources because of competition

35
Q

What is multi strategy?

A

Where you adapt the product for different markets

36
Q

What is global strategy?

A

Where production os concentrated in favourable locations

37
Q

What is transnational strategy?

A

Firms will have different strategies according to different markets

38
Q

What is a financial control system?

A

Has to be in budget

39
Q

What is a production control system?

A

What they can produce

40
Q

What other two control systems should businesses consider wen implementing a strategy? (Not financial or production)

A

Appropriate management and leadership style

Management of change

41
Q

How would you quantify success?

A 
Profit
Labour turnover
Expansion
Market Share
Productivity
ROCE
42
Q

What is the role of management in change?

A 
Overcome fear-communication
Be prepared for risk
Clear plan-objectives
Incentive
Training
43
Q

As employee and employer relationships become more important, what helps achieve this?

A

Regular meetings
Clear Targets
Appropriate leadership style
There can’t be an autocratic leadership style
Involvement from a their party representing workers trade

44
Q

What is the role of a trade union?

A

An organisation that represents your interests

45
Q

Why did the role of trade unions decline?

A

Legislation-reduced their need and power

46
Q

What sorts of legislation reduced the needs of trade unions?

A

The equality act-2010

Minimum wage

47
Q

How was the power of trade unions reduced?

A

Removal of closed shops-You couldn’t get a job unless you were in a trade union
Secondary picketing became illegal
More females in the workplace-they were less likely to join trade unions
Decline in primary and secondary sectors

48
Q

What are single union deals?

A

Only want to work with one- businesses encourage their employees to all join the same trade union

49
Q

What is the role of the state (Government)?

A 
Legislation (national)
EU directives (minimum wage)
Government spending
Consumer and employee protection
Environmental legislation
50
Q

What does ACAS stand for?

A

Advisory
Conciliatory
Arbitration
Service

51
Q

What is A CAS?

A

Political body not assigned to any political party. Will intervene as requested to overcome industrial disputes

52
Q

What is pendulum arbitration?

A

The decision may swing accordingly to different circumstances between both sides

53
Q

The other area the Government is involved with changes, is working practices, name some of these?

A

Education until 18
Encouraging more people to go to university
Training
Empowerment
Flexibility in the workplace-opportunities
Technology

54
Q

What is a strategic objective?

A

A long term objective

55
Q

What is a tactical objective?

A

A long term objective

56
Q

What is a mission statement?

A

The place the business wants to end up, shows a clear plan

57
Q

What is the purpose of a mission statement?

A

It motivates staff
Encourages custom
Helps with business planning
Sets business ethics

58
Q

What is market failure?

A

When the market fails to work effectively (clears itself)

59
Q

What are the benefits of immigration?

A 
They do jobs that we don't want to do
Businesses can recruit more and make more profit 
Lower wage rate
Increase of economic growth
Enriches Culture

Business Strategy (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions