Theme 3 - Terms and concepts

Inorganic growth =

• The way in which a business meets its responsibilities to society as a key external stakeholder

• A business growth strategy that involves 2 or more businesses joining together to form one much larger one

• A business growth strategy that involves a business growing gradually using its own resources

• A statement of the overall purpose of the business

Organic growth =

• A business growth strategy that involves a business growing gradually using its own resources

• A business that is viable and able to continue in business for the foreseeable future

• A business growth strategy that involves 2 or more businesses joining together to form one much larger one

• The strategy of trying to enter new markets with new products

Ansoff's Matrix =

• Specific amounts that are allocated to activities in the marketing plan

• The proportion of a market revenue or sales volume that is captured by a business or brand

• The use of trends established by historical data to make predictions about future values

• A strategic model for helping a business analyse the relationship between general strategic direction and suitable marketing strategies

Diversification =

• A growth strategy where the business seeks to sell its existing products into new markets - e.g. exporting (from Ansoff matrix)

• The strategy of trying to enter new markets with new products (from Ansoff matrix)

• A relatively low-risk growth strategy where a business focuses on selling existing products into existing markets (from Ansoff matrix)

• A growth strategy where a business aims to introduce new products into existing markets (from Ansoff matrix)

Market share =

• Specific amounts that are allocated to activities in the marketing plan

• The process of analysing the size, structure and growth of a market in order to support marketing decisions

• The proportion of a market revenue or sales volume that is captured by a business or brand

• Skills, competences, resources and other advantages that enable a business to out-perform its competition

Competitive advantage =

• The process of analysing the size, structure and growth of a market in order to support marketing decisions

• Techniques for estimating the likely demand (revenue and volume) for a product in future periods

• The actions that management intend to take via the marketing mix in order to achieve marketing objectives

• Skills, competences, resources and other advantages that enable a business to out-perform its competition

Target market =

• Changing the marketing mix for a product to appeal to a different market segment

• Specific amounts that are allocated to activities in the marketing plan

• The market segment or segments which a business is attempting to enter with the chosen marketing mix

• The proportion of a market revenue or sales volume that is captured by a business or brand

Repositioning =

• A business which owns operations in more than one country

• Putting an new idea or approach into action – the commercial exploitation of ideas

• Factors which result in higher unit costs as production output reaches too high a level

• Changing the marketing mix for a product to appeal to a different market segment

Outsourcing =

• Putting an new idea or approach into action – the commercial exploitation of ideas

• A business which owns operations in more than one country

• Where a business has work done for it by someone else

• The size or output of a business, best measured relative to that of direct competitors

Diseconomies of scale =

• Cost advantages that a business can exploit as a result of expanding its scale of production.

• Factors which result in higher unit costs as production output reaches too high a level

• Project management tool that uses network analysis to help manage complex and time-sensitive operations

• Techniques for estimating the likely demand (revenue and volume) for a product in future periods