Mission Statement, Corporate Aims & Objectives and Strategy, Porter, Ansoff, SWOT

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  • Created by: natlorenc
  • Created on: 20-10-16 11:53
What is the pyramid made out of. Going from up to down?
1- Mission Statement, 2-Corporate Aims, 3-Corporate objectives, 4-Corporate Strategy
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What is a mission statement?
It states the overall purpose of the business as well as its values, standards and behaviours expected of employees as well as the vision of the future.
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What are corporate aims?
Those are long term goals set by a company and include things like ; profit maximisation, growth, diversification
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What is a corporate objectives?
Targets business sets in order to achieve its aims
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Examples of corporate objectives?
Profit and return maximisation, survival, growth, increase in market share by 12%, increase sales, reduce costs
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What are funcional objectives?
Objectives set by a finance, operations, HM, marketing department about their particular department
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Definition of Distinctive Capability?
Ways in which firm operates which cannot be easily copied by its rivals
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Example of a company with a distinctive capability?
Ryan-air due to it obsession with cost minimalisation
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What did Peter Drucker suggest?
Comapny is at risk when managers focus on profits as they make sure profit is made but with little regard on ow its going to be made tomorrow.
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What did Peter Drucker came up with?
8 areas
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What are those 8 areas?
1. Market standing (market share.product range) 2.Innovation(new products) 3.Productivity 4. Physical and Financial Resources(buildings,) 5. Profitability(level of profit,ROCE)6. Management 7.Employees 8.Public Relations(social and ethical behaviour)
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Why does Smart objectives help?
Becase acronym helps managment set effective objectives
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What does SMART stands for?
S-Specific, M-Measurable, A-Achievable, R-Relevant, T-TimeBound
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What does Relevant mean?
Objective must be relevant to those that must achieve it
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What does TimeBound mean?
Objective must be set within a realistic time frame
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Examples of theories that can be used in corporate strategy ?
Ansoff Matrix, Porter's Generic Stategy, Portfolio analysis
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Importan challenge is for business to?
Achieve a sustainable competitive advantage over other products/firms in a market
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What did Porter suggested in its Generic Strategy?
He suggested that for a business to have the competitive advantage there are 2 options low cost or differentiation
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In broad market what is the source of competitve advantage?
Cost or Differentiation leadership
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In narrow market what is the source of competitive advantage?
Cost or Differentiation focus
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Definition of a competitive advantage?
Advantage gained over competitors when a business offers a product that have either a greater value for a lower price or when high price it contains extra benefits to re compensate for higher pricing
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What is a low cost strategy?
Its being a lowest cot operator that have a production on a massive scale and thats why large economies of scale
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What is a source of competitive advantage for low cost
When in mass market many operators have low prices the one with the lowest price will enjoy the highest proftss
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Feautues of low cost operastor
High production and Efficiency, Large economies of scale, High Capacity Utilisation, Wide distribution, Bargaining power for low prices from suppliers, Lean production
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Differentiation strategy is?
Offering a product which is distinctively different from competitors and is perceived as usually better where customers especially value that differentiation
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Ways in which business can achieve differentiation?
Offering superior quality e.g. performance, reliability, no wear and tear or Branding( customer recognition) Wide distribution (all major channels) Sustained promotion (advertising/sponsorship)
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What are functional objectives?
Objective set for an area/department of a business which contributes to the overall corporate objectives. Examples of functional marketing objectives might include: • To build customer database of at least 250,000
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In ansoff matrix what is a strategy for a existing product in an existing market
Market penetration
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In ansoff matrix what is a strategy for new product in a existing market?
Product development
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In ansoff matrix what is a strategy for existing product in a new market?
Market development
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In ansoff matrix what is a strategy for new product in a new market?
Diversification
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What does market penetration involves?
Increasing the usage by either taking competitors customers or finding a new ones
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What does product development involves?
Developing a new product or changing the existing one
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What does market development involves?
Development of new segment or new global market like China or India
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What does diversification involves?
Launching a new product in a new market
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Exampls of successful differenation stategies are?
Dyson, Costa Coffee, Apple, Premier inn
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Examples of companies who are STUCK IN THE MIDDLE
Morrisons, WHSmith, Mcdonalds, Sony
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What is a surge pricing?
It's when prices are changed accordingly to the demand e.g. on a Friday night the fares for Uber high than usually due to higher demand
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Purpose of SWOT analysis?
It provides a sufficient insight into the current and potential position of the busines so thar senior executives can make sound decisions based on evidence
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What does SWOT stands for?
S- Strengths, W-Weaknesses, O-Opportunities, T-Threats
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Which ones are external>
Opportunities and Threats - business doesn't have a control over them
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Which ones are interal?
Strengths and Weaknesses - business have control over them
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What acronym can you used for Opportunities and Threats?
PEST - P-political, E- economic, S-social, T-technological
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Examples of strengths?
Strong brand, high turnover, high standard of service, positivie brand recognition, cost advantages, skilled workforce, high financial resources, intellectual property
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Examples of weaknesses?
Privacy concerns e.g. due to app getting location, low profit margin for drivers, low customer loyalty, negative brand recognition, expiring intellectual property, unskilled workforce, lack of financial resources
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Examples of opportunities?
New tchnology, relaxing government regulation, elimination of international trade barriers, changing customer preference
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Examples of threats?
Legisalation, emergence of new competitors, higher cost due to government e.g. TAX, increased trade barriers, new technology, loss of market share to price discounters-ALDI
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What is SWOT Analysis
Its a tool used by a business to complete an objective analysis. It helps identify both sources of competititve advantages and potential liabilities
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By who can be SWOT used? WHY?
Investors, in order to find out the likelihood of business doing well
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Other cards in this set

Card 2

Front

What is a mission statement?

Back

It states the overall purpose of the business as well as its values, standards and behaviours expected of employees as well as the vision of the future.

Card 3

Front

What are corporate aims?

Back

Preview of the front of card 3

Card 4

Front

What is a corporate objectives?

Back

Preview of the front of card 4

Card 5

Front

Examples of corporate objectives?

Back

Preview of the front of card 5
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