Business planning and managment

What is a vision statment

A statement of what the business aspires to be LONG TERM, OVERARCHING CONCEPT. Inspiration

What is a mission statement

This is a statement of how the business will achieve its vision (Words such as by or through)

Objectives- What is a strategic goal? (OTS)

• long term picture

• 10+ years

Objectives- What is a Tactical goal? (OTS)

• Middle term goal

• 3-5 years

• leads into strategic

Objectives- What is a Operational goal? (OTS)

Day to day everyday goals

What is the M in MSGPSE ( Business Goals)

Market Share

What is the S MSGPSE ( Business Goals)

Share Price

What is the G in MSGPSE ( Business Goals)

Growth

What is the P in MSGPSE ( Business Goals)

Profit

What is the S in MSGPSE ( Business Goals)

Social

What is the E in MSGPSE ( Business Goals)

Environmental

What is market share (MSG PSE)

The percentage of total industry sales made by a business

• Common goal of a business to increase this as it creates a greater share of customers

• Can be expensive to market or campagin

What is Share Price (MSG PSE)

A share price is the cost to buy a single unit of stock in a company. It constantly changes during trading hours based on what buyers are willing to pay and sellers are willing to accept

• Supply and demand

What is Growth (MSG PSE)

Refers to the increasing size of a business which comes from

• Opening a new location

• Increasing size of factory

• Investing in technology

• hiring. new staff

• selling online to allow overseas business

Has NEG impact on short term profits as its expensive

What is profit in terms of MSG PSE

P=R-E

Managers must look at both long and short term profitability

What are Social Goals (MSG PSE)

Businesses are interested in Corporate Social Responsibility

• Involves actions that benefit the wider community

• Such as supporting charities or events which can have a strong short term cost but improve business reputation

What are environmental goals (MSG PSE)

As a part of CSR, businesses can take actions with benefit the environment such as

• using recyclable packaging

• changing production methods

What are the operations of a business

Refers to the series of steps taken by a business to turn inputs into outputs

(outputs= g&s’s)

Whats the order of the operations process

Inputs > transformation process> outputs

What are the INPUTS and the two types of Inputs in the operations proccess

Resources that are used to make the product

• Transformed

• Transforming

What are the transformed Inputs (Operations)

Inputs adapted in some way to become part of the final product

1. Materials

2. Information

3. Customers

What are the transforming inputs (operations)

Inputs that do not become part of the final product and dont change, however they play a role in changing transformed inputs

1. HR

2. Facilities

What is the transformation process? (Operations)

The steps involved in turning inputs into outputs

(eg: customer service or delivery options)

Whats involved in the outputs (operations)

Final output involves tangible goods and intangible services (product pretty much)

why is business layout important

ensures a flow of work, materials, and information through a system that maximises the effectiveness of the production process and the needs of employees.

What is quality management and the three stages

• Quality Assurance

• Total Quality Managment

• Quality Control

What is Quality assurance

Before the production process starts, the business puts steps in place to ensure the quality will meet standards

• eg processes or methods

What is quality control?

The product is checked at the end of the production process to ensure the product meets standards

( tests for bugs/issues)

What is total quality managment

Looking at every step of the production process and deciding if it could be done a better way.

(Often used to see what can be imporved)

What is market and industry research

Helps a business understand its place in the market/industry, and how it can reach consumers

Capitalise opportunities

What is target market

Part of the population most likely to buy a business’ products

based on demographics (groups of people who share common characteristics)

What is a mass market?

No defining feature or limited characteristics (eg kamrt)

What is quantitive research? ( customer research)

What, when and how often they will buy (consumer patterns)

What is qualitative insights (customer research)

Why they make their decisions (human behaviuor)

What is Product (4P’s)

Goods or services

What is branding under under product (4P’s)

A brand portrays a unique identity, personality and values of a business which are also often showcased through visual features of the business such as logo

• Aligns with the vision and mission

What is price (4P’s)

Price is the amount for a product consumers are willing to pay

low price= value for money thats low

What is price positioning (4P's)

Refers to the relative perception of a product when compared to its competitors
( eg ferrari>ford>kia)

What are the three pricing methods ( Price 4P’s)

• Cost based

• Competition based

• Market based

What is cost based pricing as a method ( Price 4P’s)

Based on the cost of the products and how much profit is wanted

What is competition based pricing as a method ( Price 4P’s)

Businesses try to beat the price of competitors

What is market based pricing as a method ( Price 4P’s)

Consumers/demand influence the cost (eg auctions)

What are the 4 pricing strategies (4P’s)

Change based on grown and market etc

1. Loss leader

2. Price Skimming

3. Price Points

4. Psychological Pricing

What is Loss leader as a strategy ( Price 4P’s)

A business sells a product at below cost of production, entising ciustomers into a store to be inclined to purchase other things

What is Price Skimming as a strategy ( Price 4P’s)

Product is released at a very high price bought by early adopters who are willing to spend that much

• maximises early revenue and keeps sales consistent

What is Price Points as a strategy ( Price 4P’s)

A business sells a range of products at different levels ( eg packages, small medium large)

What is Psychological Pricing as a strategy ( Price 4P’s)

Gives people the impression they are spending less than they are

eg $15.99 instead of 16

What is promotion? (4P’s)

The range of strategys a business uses to inform and draw attention to their products

What are the 7 types of promotion strategys

1. Advertising

2. Personal selling

3. Sales promotion

4. Relationship Marketing

5. Public Relations

6. Publicity

7. Social media

What is advertising (Promotion 4P’s)

Paid non personal message communicated through media

• Important to weigh up the cost and potetnial benefit (short them cost expensive)

What is Personal Selling (Promotion 4P’s)

When a sales person is used to deliver a message specifically catering to an individual potential cusotmer

What is Sales Promotion (Promotion 4P’s)

When customers are offered an incentive in exchange for a purchase

• lowers the sale barrier for price senstive customers

• may cheapen a brand if always on sale

What is Relationship Marketing (Promotion 4P’s)

When a business is able to form a long term relationship with repeat customers

• decreases the need to spend on advertisment

• Creates loyalty for the brand

• Rewards give insights and data to the brand

What is Public Relations (Promotion 4P’s)

When a business generates positive attention often using the media to create interest in the business

• Greater control over the message

What is Publicity (Promotion 4P’s)

When media does a free story/commentary on the business

• doesnt have control over the message so reviews can be positive or negative

What is Social Media (Promotion 4P’s)

Business can use free social media accounts to promote their business

• Has interactivity as feedback

• collaborate with trends

• good exposure

• cant control negative commentry

• highly saturated market