A2 Business Paper 4 Definitions

Strategic management

analysis of the current business situation, setting long term objectives, deciding on business strategies to achieve them and then implementing these strategies

Blue-ocean strategy

one that exploits uncontested market space through product differentiation and low cost

Scenario planning

identifying possible future situations and how the business might respond to them

SWOT analysis

a form of strategic analysis that identifies and analyses the main internal strengths and weaknesses, and external opportunities and threats, that will influence the future direction and success of a business

PEST analysis

the strategic analysis of a firm’s macro environment, including political, economic, social and technological factors

Porter’s five forces model

a technique for analysing competitive forces within an industry

Core competence

an important business capability that gives a firm competitive advantage

Ansoff matrix

a model used to show the degree of risk associated with the four growth strategies of market penetration, market development, product development and diversification

Force-field analysis

a technique for identifying and analysing the positive factors that support a decision (driving forces) and negative factors that constrain it (restraining factors)

Decision tree

a diagram that sets out the options connected with a decision and the outcomes and economic returns that may result

Corporate planning

the process used by companies to set long term plans to meet certain objectives

Leadership

the art of motivating a group of people towards achieving a common objective

HRM strategy

a long-term plan for the management of an organisation’s human resources

Marketing strategy

a long-term plan for a business to achieve its marketing objectives

Operations strategy

a long-term plan for managing production and operations to ensure efficiency, quality and alignment with overall business objectives

Finance and Accounting Strategy

a long-term plan for allocating and controlling financial resources to achieve corporate objectives