THEME 3 Flashcards
(27 cards)
Business growth
the increase in company size, revenue, market share and profitblity over time.
Econimies of scale
cost advatage that occours when a company increases their scale of production and becomes more effecaint, resulting in deacreased cost per unit.
Corporate aim
realate to the business as a whole. They are usally set by the top manegment of the bussines and provide the focus for setting more deatailed objectives for the main functional adectives of the business,
Mission statement
– the overriding goal of the bussnes and the reson for it existance. It provides a strategic perspective for the business and a vision for the futer.
Corporate objectives
realate to the business as a whole and are set by the sma of the business. The types of objective are often aimed to satisfy shareholder and act as a frame work for setting more deatailed objectives for the fuction objectives.
Department/functional objectives
go into more deatail of the spesifics to how the corpaate aims will be met.
Niche market
a small segment of a market with distinctive specilised requirements.
Mass markets
where a bussnes sells into the larges part of the market, where there are many similar products on offer
Competitive advantage
an advantage over the competitors gained by offering consumers greater value either by means of lower prices or by providing greater benefits and service that justifys higher price.
Market share
the proportion of the market held by one company or product mesased by value of volume.
Strateigic descion
a long term plan of action to achive business aims and objectives
Tatical descion
a short term response by a business to opportunities and threats
Competivtanis
the ability of a bussines to deliver better value t customers than competittios.
Stake holder
anyone or group with an intrest in a compie e.g share holders staff suppliers banks
Share holders
owns shares in the bussines e.g owner of the bussines.
Mission statement
the misson state ment of the bussines is the overifeing goal of the bussines and the reason for its esitance.
Corporate objectives
are those that relate to the business as a whole. They are usually set by the top management of the business and they provide the focus for setting more detailed objectives for the main functional activities of the business.
what should corporate objectives be
smart
Short term objectives and long term objectives may focus on what
- financial position, market position, economic conditions, government policy, bad publicity and social change.
Common objectives
profit growth social considerations employee welfare.
growth versus profit
to grow in size a business will need to spend more money which will reduce profit.
profit versus employee welfare
it is often expensive for a business to ensure that its workers are well looked after.
stakeholder interests
stakeholders often have conflicting interests. example is shareholders he aims is to make a profit this may conflict with employees who want to have a stable job and training.
shareholders want
profit
