Theme 3 Key words Flashcards
What are Corporate Objectives?
Specific, measurable goals that a company aims to achieve, guiding its internal decision-making and strategy.
What is a Mission Statement?
A brief declaration that outlines a company’s purpose and core values, providing direction and inspiring stakeholders.
What is SWOT Analysis?
A strategic planning tool that evaluates a company’s internal Strengths and Weaknesses, and its external Opportunities and Threats.
What is PESTLE Analysis?
A framework used to analyze external factors affecting a business: Political, Economic, Social, Technological, Legal, and Environmental influences.
What is Porter’s Five Forces?
A model assessing the competitive forces within an industry: Threat of New Entrants, Bargaining Power of Suppliers, Bargaining Power of Buyers, Threat of Substitute Products or Services, and Industry Rivalry.
What are Economies of Scale?
Cost advantages that a business can achieve due to an increase in production, leading to a reduction in average costs per unit.
What are Diseconomies of Scale?
The point where a company grows so large that the costs per unit increase, leading to inefficiencies.
What is Organic Growth?
Expansion of a business through increasing output, customer base, or new product development, without mergers or acquisitions.
What is Inorganic Growth?
Business growth through mergers, acquisitions, or takeovers, rather than expanding existing operations.
What is Horizontal Integration?
The process of a company increasing production of goods or services at the same level of the supply chain, often through mergers or acquisitions.
What is Vertical Integration?
A company’s expansion into different stages of its supply chain, either backward (acquiring suppliers) or forward (acquiring distributors).
What is Diversification?
A strategy of increasing the range of products or markets served by a business to spread risk.
What is a Strategic Alliance?
An agreement between two or more companies to pursue a set of agreed objectives while remaining independent organizations.
What is Franchising?
Franchising is when one business (franchisee) buys the rights from another business (franchisor) to sell its products or use its brand.”
What is Benchmarking?
The practice of comparing business processes and performance metrics to industry bests or best practices from other industries.
What is Critical Path Analysis (CPA)?
A project management tool that outlines the sequence of crucial steps or tasks necessary to complete a project, identifying the longest path and potential bottlenecks.
What is Contingency Planning?
The process of preparing for unexpected events by developing plans to mitigate potential negative impacts on a business.
What is Corporate Culture?
The shared values, beliefs, and norms that influence the behavior and practices of a company’s employees.
Who are Stakeholders?
Individuals or groups that have an interest in the decisions and operations of a business, including employees, customers, suppliers, and shareholders.
What is Corporate Social Responsibility (CSR)?
A business approach that involves taking responsibility for the company’s effects on environmental and social well-being.
