1.1 Corporate objectives
Aim: A generalised statement of where a business is heading
Mission: An aim expressed in a particularly inspiring way.
Mission statement: A statement that sums up a firm's mission that is shared throughout the organisation
1.2 Corporate Strategy
Corporate strategy : a medium-to-long term plan for meeting company-wide objectives
Porter's Generic Competitive Strategies (ways of competing): Porter called the generic strategies "Cost Leadership" (no frills), "Differentiation" (creating uniquely desirable products and services) and "Focus" (offering a specialized service in a niche market).
He then subdivided the Focus strategy into two parts: "Cost Focus" and "Differentiation Focus."
1.2 Corporate strategy 2
Distinctive Capabilities: Ways a firm operates that cannot easily be copied by rivals.
Economies of Scale: Factors that cause average costs to fall as output increases.
Generic Strategy: A strategy position that will prove effective in every market (e.g. lowest cost, high differentiation) .
Product Differentiation: The extent to which consumers perceive one product as being different from its rivals .
Stock Units:The number of different brands and pack sizes stocked by a company.
3.1 Ansoffs Matrix
The Ansoff Growth matrix is another marketing planning tool that helps a business determine its product and market growth strategy.
Market penetration - Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets.
Market development - Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets
Product development - Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets
Diversification - Diversification is the name given to the growth strategy where a business markets new products in new markets.
4.1 SWOT Analysis
5.1 Impact on External influences
External influnce is a factor beyond a firm's contol that can effect its performance. Examples include; changes in customer tastes, laws and regulations and economic factors such as the level of spending in the economy as a whole. We can use PESTLE, which stands for;
- Political - current and future legislations, govenrment funding/grants/policies, international pressure and wars and conflict.
- Economical - taxations, market/trade cycles, distribution trends, interest rates, exchange rates,international trade and monetary issues.
- Social - lifestyle trends, demographic, customer attitudes/opinions, media, ads, religious, brand,company and events.
- Technological - technologies, legislations, innovation
6.1 The Competive Environment
Competiveness measures the firms ability to shine in comparison with its rivals.
Threat of new entry;
- time and cost of entry
- specailst knowlegde
- economies of scale
- cost advantages
- techonology protection
- barriers to entry
- number of competitiors
- quality differences /other differences
- swithching costs
- customer loyalty
6.1 The competitive environment
- number of supilers /size of suppliers
- uniqueness of service
- your ability to subsitiutes
- cost of changing
- number of customers
- size of each order
- differences between competitiors
- price sensitivity
- ability to subustitutes / cost of changing
Threats of subtitution;
- subtititues performance
- cost of change.
Growth means expansion, either due to rising sales or by increasing the scale of an enterprise by means of a takeover.
Why firms grow; to increase..
- profits , market share, market power, profitablilty and to achieve economies of scale.
Economies of scale - factors that cause avaerage costs to fall as the scale of output increases.
Diseconomies of scale - factors that cause avaerage costs to rise as the scale of output increases.