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Business objectives and strategy (SWOT analysis (Strategic tool (Strength…
Business objectives and strategy
Corporate objectives
Mission statement
Inspirational statements of purpose / values / goals
Motivate
Sense of purpose
Differentiate
Waste time
Unrealistic
Conflict
Ambiguous
Obsolete
Corporate aim
Statement about what trying to achieve
Corporate strategy
How objectives are to be achieved
Company objectives
Goals
SMART
Same goal
Improve performance
Motivate
Measure progress
Difficult to accomplish
Counter - productive
Theories of corporate strategy
Ansoff's matrix
Market penetration (existing M / existing P)
Market development (existing P / new M)
Product development (existing M / new P)
Diversification (new M / new P)
Compare strategies
Oversimplifying options
Framework
Not be put off by riskier strategies
Need to investigate
Porter's strategic matrix
Generic strategy
Strategic position that provides a competitive advantage in every market
Cost leadership
Production costs low as possible
Competitive advantage
Need - higher capacity, productivity / bargaining power / lean production / effective technology, distribution channels
Focus
Niche market
Higher production costs passed onto customer
Cost
Lower cost advantage in one smaller market segment
Basic product
No substitutes
Differentiation
Particular segment within the market
Focuses on satisfying needs
Niche markets
Distinctive nature
Need - customers clearly identified / able to meet needs / be experienced / expertise / degree of exclusivity
Differentiation
USP
Need - superior quality, features / strong brand, customer recognition / promotional support / industry wide distribution channels
Effect of strategical and tactical decisions
Tactical
Short term
Disruption in short term
Unlikely long term consequences
Reactive
Strategic
Hard to reverse
Long term impact
Proactive
SWOT analysis
Strengths = Internal - help achieve
Weaknesses = internal - prevent achieving
Opportunities = external - help achieve
Threats = external - prevent achieving
Strategic tool
Strength = Opportunities - formulate strategy of growth and attack
Strength = Threat - compete and defend
Weakness = opportunities - improve and attack new markets / products
Weakness = threats - identify when to change / retreat
Tactical tool
Planning process
Attract investors / funding
Low cost / straight forward
Helps managers think in structures way / focus on internal operations and external environment
Asess / manage risk
Cannot provide solutions
Quality depends on interpretation
Subjective
Impact of external influences
PESTLE
Porter's five forces
Competitive rivalry
Threat of new entrants
Threat of substitute products
Bargaining power of suppliers