6.1 how to use business decision making tools

What is an internal organisational audit?

This identifies the key strengths and weaknesses of a business before decisions are made

What could an internal organisational audit include?

A businesses attitude to risk, it’s core competencies, Boston matrix, information gathered from market research and SWOT analysis

What is an external business environment audit

This involves examining all the external factors that might have an impact on a business.

Example of external business environmental audit

Legal, ethical, economic, political, social, environmental and technological factors

What is competitor analysis

A competitor analysis is a study on a businesses competitors by investigation of issues.

Examples of competitor analysis

Strength of competition, market share of a business and its competitors, competitor behaviour and position in market.

What is the purpose of competitor analysis

To find out the strengths and weaknesses of a businesses competitors so that strategies can be formed to improve the businesses competitive advantage.

What is stakeholder analysis

The information gained from studying stakeholder interests and potential conflict between stakeholder groups, especially between the business owners and customers, can be used to create strategies that will enable businesses to better meet different stakeholder needs.

is stakeholder analysis good for short term, medium term or long term survival?

Long term survival

What is Ansoff’s matrix

A marketing tool used to determine a businesses long term strategy by deciding whether to sell current or new products in existing or new markets.