Theme 3

Question 1

What is Business Objectives

Answer 1

They are found in the mission statement and gives us the idea of the company’s overall objectives and corporate aims

Question 2

Business objectives - SMART acronym

Answer 2

S - specific
M - measurable
A - agreed
R - realistic
T - timely

Question 3

Ansoff’s matrix

Answer 3

Tells you how to grow and dominate any given vertical
- market penetration (existing market, existing product)
- product development (new product, existing market)
- market development or extension (new market, existing product)
- diversification (new product, new market)

Question 4

Porter’s Forces

Answer 4

Cost Leadership - lowest price available for customers
Differentiation - unique attributes, strong branding
Focus - niche markets, minimising costs or showing differentiation

Question 5

Porter’s generic strategies

Answer 5

Cost leadership
Differentiation
Cost, focus
Differentiation, focus

Question 6

Boston Matrix

Answer 6

Comparing your product portfolio against a competitor

Question 7

Boston Matrix - four segments

Answer 7

• cash cow: high market share, low growth
• question mark: low market share, high growth
• stars: high growth, high market share
• dogs: low growth, low market share

Question 8

SMART

Answer 8

S - smart
M - Measurable
A - Agreed
R - Realistic
T - Timely

Question 9

Porters 5 forces

Answer 9

Barriers to entry - how easy is it for new firms to enter the market

Buyer power - buyers want products at as low a price as possible

Supplier power - suppliers want to get as high a price as possible

Threat of substitutes - how likely customers are to buy an alternative

Rivalry with in the industry- how much competition there is