Managing Strategic implementation

• Market Growth 


  New market%-Old market size/old market size x 100
• Market Share 


  sales/market share x100
• Sales Growth 


  sales this year-sales last year/sales this year x100
• Market Mapping 


  Helps businesses spot a gap in the market and identify close competitors.
• Sales growth 


  used to analyse market trends, helps to see where is gaining sales and loosing sales
• Marketing Objectives 


  market share, sales growth, sales volume and value, market growth and market size.
• Elasticity of Demand 


  %change in demand / %change in price
• Price Elastic 


  More than 1, ignoring the minus. Change Demand is greater than change in price
• Price Inelastic 


  Less than 1, ignoring the minus.
• Extrapolation


  Used to predict future sales. Trends in previous years will be extrapolated (continued)to forecast future sales.Relies on past trends remaining true.
• Aim


  Main goal of business
• Objectives

  Clear focused goal to achieve aim of business
• Changing aims and objectives

  SPEW. Survival, Product Range, Exit market, workforces. Business main change aims and objectives because of:Economy[e], Level of competition[e], technology [e], performance [int],influence of stakeholder [int]
• Mission Statement

  Description of organisation . Aims, vales and beliefs. Purpose
• Business Ethics

  Higher ethics = lower profits. For Examples; marketing towards children maybe inappropriate but may generate profit
• Stakeholders

  Anyone with interest in business
• Financial objectives 


  Profit Maximisation, Capital structure, cash flow objectives Return on investment, debt.
• Return on investment 


  Profit from investment / costs from investment x 100
• Market Research


  Can be primary or secondary, needs to avoid bias, can be qualitative or quantitative .
• Factors of production


  Land , labour , capital and enterprise {THINK CELL}
• Capital {CELL]


  Refers to tools and machinary,used in producution.
• Enterprise {CELL]


  Risk taking that drives product production
• Primary Sector

  Extracting raw materials {fishing , mining, agriculture}
• Secondly sector

  Converting raw materials into goods {manufacturing}
• Tertiary Sector 


  Provision of services
• Business Environment

  {THINK TELE} Technology, Economy, Legislation, Environment.
• Percentage change

  TIP-NOO New- old / old x100
• contribution 


  Difference between sales an variable costs of production
• Contribution Formula

  Total sales - variable costs
• Sole traders 


  businesses owned by one individual who retains all profits generated by business
• Sole trader {cons}


  unlimited liability [personal assets at risk],fewer sources of finance, can't take holidays [no income]
• Sole trader {pros}


  no need to publish accounts, retain all profit, decision making.
• Partnerships

  2-20 partners, everyone signs a deed stating: 1. how profit is distributed and 2. how control is distributed
• Economies of scale


  Cost advantages companies experience when production becomes efficient.[producing more product lowers costs]
• Innovation 


  Introduction of new process for making or supplying a product, improved products, spending in research linked to innovative ideas.