unit 7- strategic position Flashcards
(53 cards)
what does the mission and corporate objectives set out
what the business aims to achieve
what does a mission statement set out
the purpose of a business existing
what are the 5 things the mission statements tend to focus on
- values of the business
- long term aim of the business
- impact the business tends to have on society
- importance of different stakeholder groups
- scope of the business (the areas in which it operates)
what are the 5 influences on missions
- the values of the founders
- the industry the business is in
- the views of society
- the size of the business and the type of ownership
- the culture of the business
what do the corporate objectives quantify
the mission of a business and set specific and measurable targets for the whole organisation
what are the 7 focuses of the corporate objectives
- growth
- shareholder value
- social responsibility
- profitability
- market standing
- innovation
- sustainability
what are the 5 external factors that affect corporate objectives
- economic conditions
- social change
- technological change
- global prices
- actions of competitors
what are the 5 internal factors that affect corporate objectives
- poor performance
- new leadership
- business ownership
- business culture
- business growth
what is short termism
the pressure on achieving short term gains over long term sucess.
what is a strategy
long term plan (A) or approach that a business will take to achieve its objectives (B)
what do strategies involve
a major commitment to resources
what are tactics
day to day decisions taken by middle managers
what is SWOT analysis
a strategic tool that a business can use to analyse its current position and the external factors that might affect it
what does the S in SWOT stand for
strengths
what does the W in SWOT stand for
weaknesses
what does the O in SWOT stand for
opportunities
what does the T in SWOT stand for
threats
what are the 3 benefits of SWOT analysis
- assists strategic thinking in a structural way
- low cost, simple approach
- can be combined with other decision making models
what are 3 limitations of SWOT analysis
- subjective- depends on opinions of manager
- does not offer clear solutions
- classification may depends on perspective
what does an income statement communicate
the revenue generated by a business and then the profit at various levels
what are the costs of goods sold
the direct costs associated with the production and sale of the product or service
what is gross profit
the profit after direct costs have been deducted. gives a broad indication of the success of a business’ trading activity
what is admin/rent/ salaries
operating costs are then deducted from gross profit
what is operating profit
the profit left after other indirect operating costs have been deducted
