objectives definition
statement of specific outcomes that are able to be achieved
hierarchy of business objectives
- mission
- corporate
- functional
- team
- individuals
purposes of corporate objectives
- provide strategic focus
- inform decision making
- measure the performance of the firm as a whole
- set the scene for more functional objectives
smart acronym
specific
measurable
accurate
relevant/ realistic
time
purpose of mission statements
- strategic perspective
- vision for the future
good mission statement has
- a clear sense of purpose
- easy to understand
- differentiates business form competitors
- motivates and guides
what is Ansoff’s matrix
marketing panning model that helps a business determine its product and market strategy
market penetration
- existing products
- existing markets
product development
- new product
- existing market
market development
- existing product
- new market
diversification
- new product
- new market
market penetration aims:
- Maintain/ increase the market share
- Secure dominance of growth markets
- Restructure a mature market by driving out competitors
- Increase usage by existing customers
product development aims
- differentiated products to remain competitive
- Research & development and innovation
- Detailed insights into customer needs
- Being first to market
market development
- New geographical markets
- New product dimensions or packaging
- New distribution channels
- Different pricing policies to attract different customers or create new market segments
diversification
- clear idea about what it expects to gain from the strategy and an
- honest assessment of the risks
Porter’s two factors to strategic positioning
- differentiaiton
- low cost
porters matrix
- cost leadership
- cost focus
- differentiation leadership
- differentiation focus
the problem that porter found?
need to specialise in one of the 4 areas, with no drifting to the middle
features of low-cost operations
- high levels of productivity & efficiency
- exploit economies of scale
- high capacity utilisaiton
- lean production
- bargaining power to negotiate prices with suppliers
ways to achieve differentiation
- superior product quality
- branding
- wie distribution across all major channels
- sustained promotion
what is a SWOT analysis
helps a business assess its competitive strength and the nature of its external environment
what parts of SWOT are internal and external
strengths, weakness - internal
opportunities, threats - external
Assessing strengths and weaknesses:
- market share %
- profitability %
- brand recognition and loyalty
- can weaknesses be overcome?
- how sustainable are strengths
- reliable judgment
Assessing opportunities and threats:
- taking advantage of opportunities
- protect against threats
- role of risk management
- PESTLE
