Micro environment- Refers to environment of business, such as its &

Macro environment- Refers to factors of business’s control, such as , , & environments

Strategic drift occurs when of business is no longer given its strengths & weaknesses & in which it operates

Strategy- plan that sets out how will achieve its

Strategic planning- Process that is used to decide on . When undertaking strategic planning, managers will consider factors such as , & of & finally

Three main features of strategic decisions are it will require investment of resources, involve making that cannot easily
be & include level of risk

Strategy of business depends largely on four factors: internal & of business & external & that exist

Strategic planning needs to take account of environment
in which it operates. This is because these open up new & create new

Micro environment can be analysed using & macro environment can be analysed using

Once business has chosen which market(s) to in, it will want to decide where it wants to itself. Decision on where to your business will depend on of your organisation & environment, including economic factors

Strategy determines in which business is headed. Strategic decisions are taken by of business & determine success of organisation

Planned strategy refers to what you to do to achieve your . However, what you actually end up doing may be from what you . Changes in , events, or events may lead to slightly course of action. This is known as emergent strategy

There are two forms of business growth. occurs when business sells more of its . For example, effective increases demand & sales. occurs when one business with another; this is known as ‘’

One form of external growth is . This occurs when one business together with another to form

Another form of external growth is . This occurs when one business gains of another business. To take over another company you might offer for their , or you might offer some in your own (paper offer), or combination of both

Forward vertical integration is when business buys one of its or . Backward vertical integration is when business buys one of its

Franchising occurs when one business sells to other businesses to produce their or provide their . Seller of franchise is called ; buyer of franchise is called

One advantage of selling franchise is that can earn revenue from original of franchise & from of franchisee. Another advantage is that can benefit from ideas being & of different franchises

One disadvantage of selling franchise is lose some . Another disadvantage is that there is to if one franchisee performs badly

One advantage of buying franchise is would already have an name & reputation. Another advantage is that can benefit from experience of . Third advantage is that franchisee can benefit from experience of other

One disadvantage of buying franchise is that there is an . Another disadvantage is that there is to pay franchisors. Third disadvantage is franchisee may be at from of other franchisees