Business Studies – Objectives And Strategies - Business Stra

HideShow resource information
  • Created by: Emma Rudd
  • Created on: 25-03-08 16:29
Preview of Business Studies – Objectives And Strategies - Business Stra

First 467 words of the document:

Business Studies Steve Emma Rudd BMA
Business Studies ­ Objectives and Strategies Business Strategy Notes
Objective and Strategies
A strategy is a longterm plan showing how a firm will achieve its objectives. So the
objective is the desired destination and the strategy is the means of getting there.
For example the objective may to be increase profits the strategy may be to reduce
costs or increase revenue. If the objective is to boost sales, the strategy may be
to launch more products or to sell more of the existing products overseas.
The strategy a firm's chooses is absolutely crucial to its success. If the firm
chooses the wrong route it will struggle to be successful. The choice of strategy
depends on the objectives and the firm's resources. It will also change as the
market conditions change.
Different Kinds of Strategy
When deciding its strategy the firm has to consider the scope of its activities:
How many markets will it compete in?
Will it offer products just in the UK or in other countries as well?
What range of products and services will it offer?
Niche Strategy
One option is to choose a Niche Strategy this focuses on one small segment of the
market. When competing in a niche, a firm specialises on one area of the market
this could be a way of avoiding the major producers who may not be interested in a
relatively small segment.
Mass Market Strategy
A mass market strategy on the other hand, aims at the market as a whole.
Which Strategy?
The strategy a firm's chooses depends on a range of factors.
The skills and assets of the firm ­ a strategy should build on a firms
strengths ­ and minimise the impact of its weaknesses.
The market itself an effective strategy will aim to exploit market
opportunities ­ and to avoid or tackle market threats.
The competition ­ the best strategy will depend on what competitors are
doing and will aim to outperform them.
SWOT Analysis
To decide on the best strategy to follow, firms usually undertake a SWOT analysis.
This means that a firm examines its strengths, weaknesses, opportunities and
Common Strengths
A firms strengths and weaknesses are internal factors. Strengths work in its favour
and weaknesses leave it vulnerable to competitors. For example a business could
have a number of strengths:
Brand name ­ a firm may have a wellknown name which could make it easier
to launch new products or could mean it has brand loyalty. This would help
protect it against actions by competitors.

Other pages in this set

Page 2

Preview of page 2

Here's a taster:

Business Studies Steve Emma Rudd BMA
Distribution networks ­ a widespread and effective network can make it
easier to get products to the market.
Employees ­ a firm may have welltrained employees who are more productive
than their colleagues in competing firms.
Common Weaknesses
For many businesses their strengths are balanced by their weaknesses. Some
common weaknesses are:
A lack of new products ­ a firm may be relying on old products for its sales.
This may make it vulnerable in the long run.…read more

Page 3

Preview of page 3

Here's a taster:

Business Studies Steve Emma Rudd BMA
the present situation of a firm and the future possibilities with in its markets. It is
up to management to interpret this information correctly and decide exactly what
the firm has to do. Even if the right plan is chosen, it still has to be implemented
correctly. Implementation is one of the most difficult stages in the whole planning
process people resist change, perhaps the required finance cannot be raised or
certain activities take longer than expected.…read more


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all resources »