THEME 3 - SECTION 1 (CORPORATE OBJECTIVES) Flashcards
Define MISSION STATEMENT
A written statement of a businesses aims, values, standards and how they plan to achieve them.
DRAWBACKS of the MISSION STATEMENT
- Does not go into detail
- Can be unrealistic and can unmotivated employees
- It can be bad practise if a business does not at least try to fulfil there mission statement.
ADVANTAGES of the MISSION STATEMENT
- Give clues as to the beliefs of the business
- Shows ethical stance and principles
- Can attract employees and customers who agree with their statements
Define CORPORATE OBJECTIVES
Objectives that relate to the business as a whole. They are set to achieve points made in the mission statement and turn corporate aim to a specific goal.
Define DEPARTMENT OBJECTIVES (functional objectives)
More detailed than corporate objectives and are specific to each department. Set to meet the overall corporate objective through each department.
To be effective, what should an objective be?
SMART.
- SPECIFIC : vague objectives aren’t helpful
- MEASURABLE : i.e. “ should improve by 5%”
- AGREED: those deciding objectives should have agreed on it
- REASONABLE: being too ambitious :can be unmotivating and lead to failure
- TIMELY: i.e. “ should be completed within 12 months “
What is Ansoff’s matrix and what are the features in it?
- Ansoff matrix= a marketing planning model that helps determine a product and markets growth.
- market penetration = increasing market share of current market/product
- market development= an existing product in a new market through repositioning
- product development = a new product an existing market
- diversification = new product in a new market
ADVANTAGES of Ansoff’s matrix for choosing the right corporate strategy?
- weighs most to least risk and shows the expected outcomes of each
- classify your strategic choices
DISADVANTAGES of Ansoff’s matrix for choosing the right corporate strategy?
- oversimplifies options
- Doesn’t take competitors into account
What are porters generic strategies?
competitive strategies a business could use and how it can benefit them
- Cost leadership = lowest cost producer
- cost, focus = lowest cost in a niche market
- Differentiation leadership = offering unique products
- differentiation focus =unique products in a niche market
What are the two types of portfolio analysis?
- Products life cycle = where their product is in its life cycle to plan around cash flow issues, promotions and whether they should be developing new products to be innovative and keep on track with the current market.
- Boston matrix= It allows the business to see where their products/services sit on the matrix and create strategies for them based on it. (whether its a star, cash cow, question mark or a dog)
what are distinctive capabilities?
- something a business is good at that other businesses don’t do, it sets them apart from others. 3 main types
- architecture: relationship with stakeholders (brand transparency etc)
- reputation: keeping customers satisfies through communication/quality
- innovation: continuous market research and development
what should a businesses distinctive capabilities be?
- Sustainable = maintaining the advantage after achieving at least one
- Aproppriable =not copying another business
What are strategies and tactics?
- strategy = a long term plan of action to achieve an objective
- Tactic = short-term plans that a business will use to achieve the overall strategy
What is SWOT analysis?
Examines the strengths, weaknesses, opportunities and threats a business may face
