theme 3

Question 1

Business aim and objectives

Answer 1

Aim-is the overland goal or target
Objective- the steps a business takes to achieve their goal.

Question 2

Mission statement

Answer 2

Is a formal summery of the aims and values of an organisation, often about what the business does, how and why they do it.
Coca Cola- refresh the world and make a difference.

Question 3

Corporate objectives

Answer 3

Objectives set by top management relating to the business as a whole, SMART (specific,measurable,achievable, realistic and time bound.)

Question 4

Heirachy of business objectives

Answer 4

Mission statement and general aims , cooperate objectives , department objectives.

Question 5

Benefits and negatives of mission statements

Answer 5

+ convince customers to shop w you over rivals.
+aimed at shareholders setting a clear goal, leadership.
-can be biased used as a marketing tool.

Question 6

What is a ansoffs matrix

Answer 6

Used to examine a company’s product range through four options, market penetration, product development, market development and diversification.

Question 7

Four options in ansoffs matrix for coke

Answer 7

Penetration strategy- existing product in an existing market (coca cola share size)
Product development- existing product in new market(Diet Coke)
Market development-new product in existing market (Vanilla Coke)
Diversification- new product in new market (Powerade)

Question 8

Benefits and cons to ansoff matrix

Answer 8

+ easy to analys the level of risk for each strategy
-too simple, more detail needed like market research or position e.g competitors

Question 9

Porters strategic matrix

Answer 9

All markets segmented into 2 ways niche vs mass market and low cost vs high differentiation.

Question 10

Aim of portfolio analysis

Answer 10

Helps with the decision making, what are the priorities and how mich cash to put behind.

Question 11

What are distinctive capabilities

Answer 11

Knowledge and skills ina. Workforce

Question 12

Achieving competitive advantage through distinct capabilities

Answer 12

If a workforce can learn from mistakes and success , no blame culture encourage to take risks.

Question 13

Tactical decisions and strategic

Answer 13

Short term responses to ppportunites or threats e.g Waitrose selling own brand for half the price in January (a quiet time easily reversible)
Strategic long term, Morrisons 700 head office redundancies to employ more shop floor , impact on carrers , tactical unlikely to threaten careers.
Strategic decisions may affect finance but they have to be signed off by head office so if it’s unaffordable it won’t go ahead.

Question 14

Swot analysis

Answer 14

Internal - strength and weakness, what are we good at?, using key permanence indicators , like for like sales.
External - opportunities and threats what’s happening outside the business.
Demographics , population change

Question 15

Pestle analysing external factors

Answer 15

Political - cut of corporation tax in 2010-2015 28-20%
economic - gdp 2008-9 recession
Social - cigarette
Technological - time space compression - travel - trains HS2
Legal - minimum wage
Environmental - global warming co2 petrol

Question 16

Factors leading to a ch age in competitive environment

Answer 16

Rapid changes in consumer taste - free from
Globalisation

Question 17

Porters 5 forces

Answer 17

How to achieve and sustain competitive advantage
Threat of new entrants
Bargaining power of buyers
Barging g power of suppliers
Threat of subside products or services

Question 18

+ - of porters 5 forces

Answer 18

Analytical tool used with swot
+M&S threat of subsidies from John Lewis online sales were better found their weakness.
-risk company uses once and never updates findings , re do every year

Question 19

Objectives for growth

Answer 19

Increase profit -Netflix to Indian market
Achieve economies of scale-cost per unit decreases
Increased market power - over customers Colgate cover all segments - over suppliers -
Increased market share and recognition
Increased profitability .

Question 20

Problems from growth

Answer 20

Diseconomies of scale - age cost per unit increases due to poor communication , motivation and manegment.
Over trading -by trying to grow to quickly so has cash flow problems

Question 21

Reasons for mergers and take overs

Answer 21

Growth
Cost savings
Diversification- entering diff markets
Market power - same market

Question 22

Integration

Answer 22

Vertical- take over or merge with a firm in same industry but at different stages in production process .
Horizontal - same industry same stage

Question 23

Problems of rapid growth

Answer 23

Takeover -
Managers become too busy , staff with good ideas feel frustrated and leave , more leave, impact on customers , as staff are worried on who gets which job not them.

Question 24

Organic and inorganic growth

Answer 24

Inorganic - outside a business e.g Facebook buying WhatsApp.instead of innovation just bought .
Organic - inside the business , safer slower. Methods , staff motivation good work environment google .

Question 25

Reasons to stay small

Answer 25

Product differentiation - avoid direct competition from a mass market .
Flexibility responding to customer needs- consumer taste change analyse shop floor behaviour communicate to managers.
Customer service - staff feel more appreciated in a. Small business and offer a better service .

Question 26

Problems of quantitative sales forecast techniques

Answer 26

Some future factors are certain like Christmas in December however some aren’t like - new entrants, social media support from a celeb ,pandemic

Question 27

Decision trees

Answer 27

0.7 x final figure = expected value
Added both expected values = net gain.
+allows for a range in possible outcomes not just one.
-easily manipulated for a biased answer

Question 28

Critical path

Answer 28

Determine the length of whole project and the quickest way .
+allow stakeholders to know timings and multitask .
-quicker to just get on and do it.

Question 29

Short terminism vs lonf

Answer 29

S- immediate gains at a higher risk(financial incentives)
L- success over time

Question 30

Evidence based vs subjective decision making

Answer 30

E- making decisions after analysing evidence e.g quantitative sales forecasting may be used.- time consuming and costly but based on data.
S- based on initiation or a gut feeling +quicker decisions -dominant leader may push certain decisions .

Question 31

Strong vs weak cultures

Answer 31

S - staff show real feeling for customers e.g refund whereas weak cultures follow a script.
S-staff stick together through a time of crisis whereas a weak culture qualified staff look for other jobs.

Question 32

Company cultures

Answer 32

Power - boss is power holder and everything goes through or around them. +quick decisions - have to have trust in boss as quality of decisions made based on them. E.g Alan sugar
Role -employees are expected to conform to the rules and procedures .heriscju e.g Microsoft key thing to preserve huge share of software market.
+good in a large business for each employee to know where they stand . - may lead to lack of communication.
Task -no single power source teams formed around projects +best output -low morale or own objectives
Person - each individual valued for skills. +highmotivatikn - difficulties in aligning skills.

Question 33

Internal and external stakeholders

Answer 33

Internal - employees manager owners
External - customers suppliers government shareholder

Question 34

Stakeholder objectives

Answer 34

Customers - quality of product
Share holders - rising profits

Question 35

Ethics in a. Business

Answer 35

Dealing honestly and fairly with customers
Protecting environment
No discrimination

Question 36

For and against corporate social reliability

Answer 36

Marketing advantages - morally correct
Lush

Against
Costs - cheap labour outsourcing

Question 37

Balance sheet

Answer 37

Current assets are short term as they change daily - inventories (stock) receivables (sums owed by customers) and cash.
Non current assets are long term - land , property or machinery.

Question 38

Stammer of comprehensive income

Answer 38

Includes all financial incomes and expenses of a business - public limited companies have to publish.

Question 39

Human resource strategies to improve productivity and retention and reduce turnover and absenteeism

Answer 39

Financial rewards - price rate , commission
Employee share ownership - give a stake in business feel apart .
Consultation strategies
Empowerment strategies - delegate ,junior staff to set own objectives .

Question 40

Causes of change

Answer 40

Change in organisational size - time of growth create new horizontal layers.
Poor business performance
New ownership
Transformational leader
Or external factors a like )new entrants in market or economic change.)