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7 - Analysing the Strategic Position of a Business - Coggle Diagram
7 - Analysing the Strategic Position of a Business
Business Mission
culture of a business will influence overall mission
ethos & values
views of shareholders
values of stakeholders, community and employees
Business Ownership
private sector - place emphasis on maximum profit
public sector - emphasis on providing societal need
Strategy
long tern
difficult to reverse once implemented
many resources
Decisions
Strategic
Influence departmental
Functional
every function within a business must support overall organisation
Corporate objectives
short-term
focusses on short term gains at expense of long term gains - seek short term profit at expense of long term investment in R&D
Internal & External business environment
managers responding to changes
Tactics
short term
can be stopped/reversed if required
few resources
SWOT
Internal weakness
cash flow concern/ lower profit margins
low net profit margin
lack of new products under development
large amounts of long-term borrowing
External opportunities
expanding market nationally & internationally
growth in major market
rising income levels amongst target consumer groups
Internal strength
trusted & reputable brand
high level of cash
strong brand name
highly skilled a loyal staff
External threat
Increase competition/declining market
being taken over by a large competitor
new laws increasing business's cost of production
Management technique used to ientify a business's SWOT