Edexcel A Level Business Set 3.1

Front 1

Benchmarking

Back 1

Comparing your own performance with that of rivals, to try and identify and learn from best practice

Front 2

Competitive advantage

Back 2

The factors that enable a business to sustain a profitable position in a competitive market, when rival firms may not be able to do so

Front 3

Corporate objective

Back 3

A measurable goal a business wishes to achieve in the short to medium term

Front 4

Demography

Back 4

Factors relating to the population such as changes in average age, immigration trends, trends in incomes

Front 5

Distinctive capabilities

Back 5

ways a firm operates that cannot easily be copied by rivals e.g. Ryanair's obsession with cost minimisation

Front 6

Diversification

Back 6

When a company expands its activities outside its normal range. Whilst seen as risky, it can also reduce risk by expanding activities beyond just one market and product so that a firm is less reliant on one revenue stream.

Front 7

Economies of scale

Back 7

factors that cause average costs to fall as the level of output increases so that unit costs become lower

Front 8

Generic strategy

Back 8

A strategic position that will prove effective in every market/industry. Prof Michael Porter says lowest cost or highest differentiation are the best such strategies

Front 9

Lobbying

Back 9

A term derived from the part of the Houses of Parliament where electors could come to talk to their MP. Now a term used to describe attempts to influence government policy and decision making.

Front 10

Product differentiation

Back 10

The extent to which consumers perceive one product as being distinct from that of a rival firm.

Front 11

Repositioning

Back 11

Changing a product or the way in which it is promoted in order to appeal to a different market segment

Front 12

Tactics

Back 12

The more detailed ways in which a strategy is implemented by an organisation

Front 13

Mission statement

Back 13

a short passage of text that sums up an organisation's mission/reason for existing. Likely to be displayed around the workplace.

Front 14

Strategy

Back 14

The fundamental choices a business' directors make about what products to sell, what markets to operate in and how to position products in these markets