What is a business objective
A specific measurable target a business aims to achieve within a given period of time. To aid decision making e.g increase market share.
Difference between aims and objectives
Aims-broad long term goals e.g becoming market leader
Objectives- specific targets that are quantitative and measurable e.g obtaining 30% market share
What is a corporate strategy
A long term plan that determines the overall direction and growth of of a business e.g diversifying into new markets
The Ansoff Matrix Strategies
Market penetration-EXISTING MARKET>EXISTING PRODUCT
Product Development-EXISTING MARKET>NEW PRODUCT
Market Development-NEW MARKET>EXISTING PRODUCT
Diversification-NEW MARKET>NEW PRODUCT
What is Ansoffs Matrix used for
Identifying grow strategies. Based of a business’s products and market
Why is diversification high risk
Due to a business’s lack of experience in both new product and market
What is a decision tree
A visual tool used to map, choices, profitability and the expected outcome while qualifying risks
What is stakeholder conflict
When a group of stakeholders compete for objectives e.g staff want higher wages, share holder higher profits
What is Expected Value (EV)
Profitability X Outcome
What is tactical decision making
Short term decisions focused on the implementation of strategy e.g adjusting price or promotional campaigns
What is a mission statement
A qualitative statements that outlines a business’s core ourpose and value e.g to organize the worlds information
What is a coporate plan
A plan that outlines objectives, strategies and resources allocating e.g expansion, staffing,marketing and finance
Difference between strategy and tactics
Strategy- long term direction
Tactics-short term actions that implment strategy
