Stratergy and Implementation Flashcards
Why is Planning important for a business?
- It ensures the future success of a business
What tools does planning involve?
- Decision trees
- Critical Path Analysis
- Investment Appraisal
What must a business consider when planning?
- New products
- Changes in their markets
- Cashflow
- Investment decisions
What usually happens to a business that doesn’t plan?
- Taken over by competitors
- Profits are affected
What are OBJECTIVES?
- Is set by a business in an attempt to reach a particular goal
What is a STRATERGY?
- Is an action plan that a business puts in place to reach its objectives
What is a TACTIC?
- Is a particular step a business takes to reach its stratergy
In order to create a strategy plan, what information must be taken?
- An internal and external audit of the business
When taking information for a strategy plan, what must the INTERNAL audit look at?
- Strengths and Weaknesses
When taking information for a strategy plan, What must the EXTERNAL audit look at?
- Opportunities and Threats
Example of what an internal audit will look at.
- People (labor turnover & Motivation)
- Marketing (Sales)
- Operations Management (Productivity)
- Financial (Profitability)
What is the purpose of an internal audit?
- Is to provide accurate information about each department, and is curated using statistical data.
Give 3 External Factors which may affect a business?
- Competition
- Law
- Economic Issues
What factors can have an impact on how a business operates?
- Political
- Economic
- Social
- Technological
P.E.S.T
What examples of Political factors impact a business?
- Legislation on employment
- Health & Safety
- Taxation
- Government subsidies for being environmentally friendly and ethical
What examples of Economic factors impact a business?
- Inflation
- Interest Rates
- Value of currency unemployment
- Economic cycle
How does Social Factors impact a business?
- Consumer spending habits are constantly changing, making it vital that businesses are aware of these changes
How do Technological Factors impact a business?
- Changes in technology offer businesses new opportunities but also new risks.
How does Competition affect a business?
- The threat competition poses can have a considerable impact on the success of a business
- Businesses may change prices and product ranges
How does Culture affect a business?
- Businesses need to take into account the local community and their shopping habits
How does Ethics affect a business?
- Businesses must be aware of the demand for ethical trading and its affects on consumer demand.
How does Pressure Groups affect a business?
- Pressure groups can exert pressure onto a business to make a certain decision.
- Such as Animal Welfare Groups
How does the Environment affect a business?
- High price for fuels and increased awareness of global warming has led to the demand for environmentally friendly products increasing.
How are these audits presented?
In a S.W.O.T analysis
