Theme 3

• Mission statements:

  • declares the businesses overriding purpose.
  • can reflect its goals and values
  • help to guide the decision making of the firm
  • forms a promise to customers
  • can create a brand/image
• Strategic decisions: important decisions that may have a big impact on a business.
• Mission statemen:

  overall reason for existence

  corporate aims:

  long term targets and plans to fulfil mission statement

  corporate objectives:

  medium to long term targets to fulfil missions statement

  function objectives
• Smart targets:

  specific

  measurable

  agreeable

  realistic

  time specific
• Objectives that are common in business:

  • break even
  • improve liquidity
  • increase market share
  • take on new employees
  • reduce energy consumption
• Critical appraisal of mission statements:

  • must be constantly assessed
  • must be relevant
  • must be believed and followed by employees
  • must be fit for purpose for its intended purpose
• Critical appraisal - systematic evaluation
• Theories Of corporate strategies:

  • Ansoffs matrix
  • Porters strategic matrix
  • Boston matrix
• Market penetration:

  • existing product into existing market
  • low risk
  • how?

  takeover

  encourage people to buy more

  changes to marketing mix

  extension strategies
• Product development:

  • new products to existing markets
  • risk comes from now knowing the products, high research and development costs, competitors reaction
  • how?
• Market development:

  • existing products to new markets
  • risk associated with lack of knowledge of customers
  • how?

  enter new international market

  new distribution channels

  new market segment