what is a mission statement
a summary of the aims and values of an organisation about what they do and how they do it
what are the benefits of a mission statement
communicates the nature of the organisation to stakeholders
drawbacks to a mission statement
customers are unaware of what it actually is. sometimes made unrealistic by firms
what are corporate objectives
measurable specific goal set by a business at a corporate level, (more detailed than a mission statement)
what are the uses of mission statements
increase motivation
business identity
what is ansoffs matrix
A strategic planning tool that helps companies decide on a growth strategy
uses of ansoffs matrix
businesses can identify their current position, and understand their market opportunities and potential expansion
limitations of ansoffs matrix
only shows part of the picture, over simplifies the market, e.g dynamic market or MNC’s who operate globally
what is porters strategic matrix
3 business strategies that would get competitive advantage
- cost leadership
- differentiation
- focus
what is the Boston matrix
marketing planning tool helping firms to plan for a product portfolio
4 sections of Boston matrix
cash cow, star, dog, question mark
characteristics of star
high MS , high growth
characteristics of cash cow
high MS, low growth, maturity in product life cycle phase
characteristics of dog
low ms, low growth, declining phase of product life cycle
uses of Boston matrix
Long term planning, used to help consider growth opportunities, help with investment
limitations of Boston matrix
high market share dosent always mean high profits so could be misleading at times
what are strategic decisions
A strategic decision relates to the identification of long-term or
overall aims of the business and the means of achieving them.
what are tactical decisions
decisions and plans that concern the more
detailed implementation of the strategy, usually with a short or
medium-term impact on a company.
what does SWOT stand for
strengths
weaknesses
opportunities
threats
what are strengths
internal factors within a business that help achieve its objectives e.g usp
what are weaknesses
internal factors within a business that may prevent objectives being met e.g information failure
what are opportunities
external business circumstances that may help objectives get met e.g reduced min wage
what are threats
external problems a business may face reducing chances of objectives being met e.g PESTLE
what does PESTLE stand for
political
environmental
social
technological
legal
economic
