CHAPTER 9

Question 1

what is a corporation

Answer 1

a very big organisation

Question 2

what is a corporate objective?

Answer 2

a objective that applies to everyone in a business

Question 3

what are the corporate objectives at PLCs

Answer 3

Growth
Diversification
Satisfying eg to satisfy everyone, distribute 15% dividends and 15% reinvested

Question 4

what are the internal influences on corporate objectives?

Answer 4

Ambitions of the business leader
Financial influences
Human resource influences-eg. Need experienced staff for a new market

Question 5

what are the external influences on corporate objectives?

Answer 5

Tastes/Fashions
Changing legislation
Survival- new businesses

Question 6

what are corporate strategies?

Answer 6

A medium to long term plan about how to achieve the objectives

Question 7

what is the difference between tactics and strategy?

Answer 7

tactics are day to day decisions decided on the functional level eg marketing

Question 8

what is the main business tool that a business uses to choose what products to produce and which markets to sell in

Answer 8

Ansoff’s Matrix

Question 9

what is the risk and reward to a business which stays in the same market with the same product?

Answer 9

Low

Question 10

what is the the most risky and rewarding strategy a business can implement?

Answer 10

Diversification

Question 11

what is the Ansoffs matrix?

Answer 11

a strategic or marketing planning model that can be used to help a business decide its strategic direction

Question 12

give an example of a business that can relate to Ansoffs matrix?

Answer 12

stage coach

Question 13

how did stage coach undergo market development?

Answer 13

• In the Early 1990s it bought bus operations in Malawi, New Zealand, Portugal, Hong Kong, Sweden
• Bought coach USA, the largest bus bus and coach operator in the USA

Question 14

how has stagecoach diversified?

Answer 14

• Stagecoach took over south west trains in 1995
• 1996 they bought porterbrook, a company that leases trains to rail franchises and then sold it for 100 mill profit
• they bought sheffields supertram in 1997
• bought prestwick international airport in 1998

Question 15

how has stage coach under gone product development?

Answer 15

• Introduced the uks first low cost inter city travel service in Mega bus
• Focused on trying to introduce biodiseal buses fueled by cooking oil

Question 16

where has stage coach decided to use withdrawal strategies?

Answer 16

• Sold its new zealand operations in 2005 leaving north america as its only overseas activity
• sold prestwick airport