THEME 3

Question 1

Business growth

Answer 1

the increase in company size, revenue, market share and profitblity over time.

Question 2

Econimies of scale

Answer 2

cost advatage that occours when a company increases their scale of production and becomes more effecaint, resulting in deacreased cost per unit.

Question 3

Corporate aim

Answer 3

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,

Question 4

Mission statement

Answer 4

– 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.

Question 5

Corporate objectives

Answer 5

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.

Question 6

Department/functional objectives

Answer 6

go into more deatail of the spesifics to how the corpaate aims will be met.

Question 7

Niche market

Answer 7

a small segment of a market with distinctive specilised requirements.

Question 8

Mass markets

Answer 8

where a bussnes sells into the larges part of the market, where there are many similar products on offer

Question 9

Competitive advantage

Answer 9

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.

Question 10

Market share

Answer 10

the proportion of the market held by one company or product mesased by value of volume.

Question 11

Strateigic descion

Answer 11

a long term plan of action to achive business aims and objectives

Question 12

Tatical descion

Answer 12

a short term response by a business to opportunities and threats

Question 13

Competivtanis

Answer 13

the ability of a bussines to deliver better value t customers than competittios.

Question 14

Stake holder

Answer 14

anyone or group with an intrest in a compie e.g share holders staff suppliers banks

Question 15

Share holders

Answer 15

owns shares in the bussines e.g owner of the bussines.

Question 16

Mission statement

Answer 16

the misson state ment of the bussines is the overifeing goal of the bussines and the reason for its esitance.

Question 17

Corporate objectives

Answer 17

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.

Question 18

what should corporate objectives be

Answer 18

smart

Question 19

Short term objectives and long term objectives may focus on what

Answer 19

• financial position, market position, economic conditions, government policy, bad publicity and social change.

Question 20

Common objectives

Answer 20

profit growth social considerations employee welfare.

Question 21

growth versus profit

Answer 21

to grow in size a business will need to spend more money which will reduce profit.

Question 22

profit versus employee welfare

Answer 22

it is often expensive for a business to ensure that its workers are well looked after.

Question 23

stakeholder interests

Answer 23

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.

Question 24

shareholders want

Answer 24

profit

Question 25

stakeholders want

Answer 25

more costs

Question 26

development of corporate strategy

Answer 26

business strategy is about the choices of business makes about how to achieve the objectives the direction and scope of an organisation over the long term which achieves advantages for the organisation through its use of resources within a challenging environment to meet the needs of market and fulfil stakeholders expectations.

Question 27

Strategy

Answer 27

is where the business trying to get to in the long term.