business theme 3 - business decisions and strategy

mission statement

A formal summary of the aims and values of a company, outlining its purpose and primary objectives.

corporate objectives

The specific goals that a company seeks to achieve in the short and long term, guiding its strategic planning and decision-making processes.

internal audit

analysis of the business itself and how it operates. This helps identify strengths and weaknesses

external audit

an external analysis of the environment in which the business operates and over which it has little control over

SWOT analysis

strengths, weaknesses, opportunities, threats

PESTLE

political, economic, social, technological, legal and environmental

growth

is the point at which a business needs to expand and seeks options to generate more profits

merger

is a legal deal to bring two businesses together under one board of directors

takeover

this is a legal deal where one larger business purchases a smaller one

unhostile takeover

if the deal is unwanted by the management or board of directs

horizontal integration

business operating in the same sector merge or takeover another business in the same market

vertical integration

when one business in one sector takeover or mergers with a business in another sector or party of the supply chain

organic growth

Is where the business has grown from winith (internal growth) through increasing the product, new markets, franchising and new customer segments

inorganic growth

when a business grows by acquiring other companies to increase its size

organisational culture

the values, beliefs and norms that shape how things are done within an organisation

risk assessment

systematic process used to identify, evaluate and prioritise potential risk that could negatively impact an organisation or project. The goal is to understand and manage these risks to minimise their impact or likelihood

business continuity planning

involves preparing for and managing incidents that could disrupt business operations. Goal is to ensure that critical functions and processes can continue after disruption

succession planning

involves preparing for the transition of key roles within an organisation. It ensures that there are qualified individuals ready to step into critical positions when needed.

scenario planning

identifying and developing individuals to fill key roles in the future

risk mitigation plans

strategies to manage and reduce the impact of identified risks.