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• Aim


  The overall direction the business wants to go in. This determines all of the actions for the entire organisation.
• Objective


  The medium/long term targets a business sets to help achieve their aim
• Strategy


  The medium/short term plans a business comes up with to work towards their objectives
• Tactic


  The day to day activities that take place to carry out strategies
• Corporate


  Objectives for the business as a whole
• Functional


  Objectives for different functional areas of a business
• SMART Target


  A target that is specific, measurable, achievable, relevant and time bound
• Mission Statement


  A marketed statement to show the overriding purpose of the business and the reason for its existence.
• Distinctive capability


  The capabilities a business has which other firms cannot replicate, this could be a design feature, brand or production method
• Competitive advantage


  An advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices
• High differentiation positioning


  A strategy where a business is able to distinguish its product or service in the minds of consumers as offering better value- perhaps through quality or branding
• Low cost provider positioning


  A strategy where a business is able to operate at the lowest unit cost in the market, enabling it to charge lower prices than the competition or earn higher profit margins
• Portfolio analysis


  Where a business uses tools to identify strengths and weaknesses among their range of products
• Strength


  Features within the control of a business that are a source of competitive advantage.
• Weakness


  Features within the control of a business that are a source of competitive disadvantage.
• Opportunity


  Features of the external environment that create opportunities for a business to leverage its strengths towards.
• Threat


  Features of the external environment that threaten the performance and position of a business if not addressed.
• External influence


  Influences from outside the business
• Political factor


  Government policy and its administration that has the potential to change or influence a business. e.g. competition policy
• Economic factor


  Changes such as costs and prices of goods, interest rates, wage rates, exchange rates and the rate of inflation that have the potential to change or influence a business.
• Social factor


  Changes that affect lifestyle, such as religion, wealth or family. It is important for businesses to be aware of these factors as they are very important for marketing purposes. E.g changes in taste and fashion
• Technological factor


  Changes in technology available to businesses or consumers that have an impact on either a business or consumers. This could be to change the way consumers and businesses interact, or a change in production technology available to a business, for example.
• Legal factor


  Law and changes in law that have an impact on either businesses or consumers. E.g. the minimum wage act.
• Environmental


  Changes in the way businesses or consumers look at and care for the environment, or changes to the environment that have an impact on business.
• Business growth


  Expansion of a business through increased sales volume, launching new product lines / branches
• Economies of scale


  Arising when unit costs decrease as output increases.
• Internal economies of scale

  Arise from the increased output of the business itself.
• External economies of scale

  Occur within an industry and arise from the way an industry operates as a whole.
• Diseconomies of scale


  Arising when unit costs increase as output increases.
• Overtrading


  When a business expands too quickly without having the financial resources to support such a quick expansion.
• Merger


  A new firm being created into which two existing businesses are merged.
• Takeover


  An existing business acquiring more than 50% of another business and gaining control of it.
• Organic (internal) growth


  Growth that comes from within the business, e.g. through the launch of a new product or opening new locations.
• Inorganic (external) growth


  Growth that comes from outside the business, e.g. through a takeover or joint venture.
• Horizontal integration


  Acquiring a business at the same stage of the supply chain.
• Vertical integration


  Acquiring a business at either an earlier or later stage of the supply chain.
• Joint venture


  A separate business entity created by two or more parties, involving shared ownership, returns and risks.
• Franchising


  Arises when a franchisor grants a license to another business (franchisee) to allow it trade using the brand/business format.
• Small business objectives


  Objectives such as survival and break-even are more likely to be...
• Large business objectives


  Objectives such as profit maximisation and market leadership are more likely to be...