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SQA - Coggle Diagram
SQA
Decision making
Strategic
Made on a
Long term
basis
Set out the companies objectives
Made by top management (Directors or owners)
Affect the entire business
Tend to lack the specific detail
Often proactive in order to stay ahead of the competition
Operational
Tactical
Made on a yearly or monthly basis (
Medium term
)
Made by middle management
Vertical and horizontal integration
Vertical integration
Backward vertical integration
When a company merges with its suppliers
Advantages -
Guarantees the quality of inputs and supply of stock
Cuts out the middle man leading to increased profits
More limit of suppliers to competitors
Disadvantages
Entering into new markets may affect core activities as resources and expertise need to be shared
Forward vertical integration
When a company buys out or merges with their customers
Advantages -
Guarantees an outlet to see products
Cuts out the middle man - leading to increased profits
More control over pricing and product display
Disadvantages -
Entering into new markets may affect core activities as resources and expertise need to be shared
Horizontal integration
When 2 businesses operating in the same stage of production - two supermarkets.
One firm might merge in with another to -
Eliminate competition and increase market share
Acquire the assets of the other firm
Become stronger and therefore more secure from hostile take-over bids
Achieve greater economies of scale, such as greater discounts as a result of now being able to buy inputs in large quantities
Advantages -
Removes a competitor from the market
Opportunity for greater economies of scale
Business gains a greater market
Disadvantages -
Hostility and job losses may occur
Changes within the company could impact negatively on customer loyalty
Can be expensive to purchase another company
Channels of distribution
Delayering
PESTEC
Technology
Motivational theories
Product life cycle
Pricing strategies
Field and desk research
Employment legislation
Quality standards
Multinational