Strategic Management F297 OCR Revision Notes

Hi everyone, I made some notes for the F297 OCR Business Studies Exam covering the entire spec. Hope it helps anyone :)

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  • Created on: 02-04-14 08:23
Preview of Strategic Management F297 OCR Revision Notes

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Business studies revision ­ Strategic management
Business objectives and strategy:
Objectives: Distinguishing between Tactical and Strategic objectives:
Mission statements: What is their significance?
Stakeholder-main interests
Shareholders Profit growth, Share price growth, dividends
Creditors Interest and principal to be repaid, maintain
credit ratings
Directors and managers Salary, share options, job satisfaction and status
Employees Salaries and wages, job security, job satisfaction
and motivation
Suppliers Long term contracts, prompt payment and
growth of purchasing
Customers Reliable quality, value for money, product
availability and good customer service
Community Environment, local jobs, local impact
Government Operate legally, tax, receipts, laws and
regulations taxation and jobs
Impacts of the decision to grow elsewhere (open another firm)

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Shareholders Want to see their profit rise however will still be
worried about risk in the business (not gaining
return through dividends)
Creditors Creditors may be weary. May not want to give
the loan to a business because of the risk
Directors and managers Concerned about location, will it be the right
move? However, eager to see the business
grow in order to gain larger wages
Employees Concerned about their job. May not want to
move outside of their home.…read more

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Easy to be over optimistic in a business plan
-Competitor response is often aggressive
-Easy to underestimate the effort and persistence is required for success
Insufficient customer demand
-Poor market research and unrealistic plan
-Competitor response e.g. price cuts or extra promotions
Good idea but poor execution
-wrong people; poor management
-growth is too quick (overtrading) or too slow
-failure to manage cash flow
External factors
-economic change (e.…read more

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Advantages of a SWOT analysis Disadvantages of using a SWOT analysis
Little or no costs Doesn't prioritise issues
Understand your business better The business may not have the means
(financially) in order to address threats or
expand on opportunities
Deter threats Doesn't provide solutions of offer alternative
Capitalise on opportunities Can generate many ideas but not help the
business choose which one is most effective
Take advantage and maintain strengths Can produce lots of information- not all may be
Develop business goals and…read more

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Macro environment
Political = The effects of privatisation, workers' rights, rising competition, government influence,
political parties, pressure groups and legislation.
Environmental = Demographic or population changes, how ethics change demand for goods and
services, and reactions due to social behaviour. Geological and ecological issues include a scarcity of
raw materials, what to do with waste, climate change and public views from pressure groups.
Social or socio-cultural = Customers' shared beliefs and attitudes slowly change the company's
culture, exasperated by feedback and customer expectations.…read more

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Customers/consumers Force firms to adopt a more customer
orientated approach: lead to `customer care'
departments/ may influence a firms pricing
strategy and therefore businesses may adopt
more affordable prices to suit the needs of
Suppliers Want profit/ timely pay.
Government Stable economic growth, low inflation, low
unemployment and a healthy balance of
Community The local community concern themselves with
the environmental conditions. May not want
more firms opening due to pollution.…read more

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Figures fluctuate over time, especially for seasonal products and services. The trend will
smooth out these fluctuations. Establishing whether the trend is upwards or downwards will
allow the business to respond accordingly
-Cyclical fluctuations: variations related to the business cycle/economic cycle such as the recession
that has led to a fall in demand.
-Seasonal: changes in figures during any given year. How much a business is affected is dependent
on the nature of the product or service e.…read more

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Limitations of forecasting:
Forecasting is only as reliable as the data
Past data will not necessarily reflect future figures, and circumstances change
This technique cannot distinguish between old and new data (the latest being most reliable
The objectives of the business are not considered hence you will need to think carefully about
objectives when using the data.
It is a long winded and complex process, particularly if four period moving averages are used.…read more

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East activity is labelled with its name eg `print brochure', or it may be given a label, such as
`D', below.…read more

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What is the significance of data analysis?
Data analysis can offer the following benefits:
-Structuring the findings from a survey reearch or other means of a data: form a plan after statistics
are found
-Break a macro picture into a micro one
-Acquiring meaningful insights from the data
-Basing critical decisions from the findings
-Ruling human bias through proper statistical treatment
Ansoff's matrix
Advantages of the Ansoff Matrix:
- Increasing the brand loyalty, this will encourage customers to buy
their brand instead of some other.…read more



Today I have come across your blog, a post you made on the student forum, and this without meaning to. I don't mind though because what you have uploaded on this and your blog is so helpful - thank you!

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