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Define these terms and provide an example for each term - VCE - SSCE Business Management - Question 5 - 2002 - Paper 1
Question 5
Define these terms and provide an example for each term. a. market share b. strategic plan
Worked Solution & Example Answer:Define these terms and provide an example for each term - VCE - SSCE Business Management - Question 5 - 2002 - Paper 1
Step 1
a. market share
Answer
Market share refers to the proportion (usually expressed as a percentage) of the total market that a business has compared to its competitors. For instance, if a company has a 30% market share in the car industry, it means it sells 30% of all the cars in that industry.
Example: Ford Motor Company has approximately 30% market share of the car industry in Australia.
Step 2
b. strategic plan
Answer
A strategic plan is a long-term plan that outlines an organization's direction and the steps needed to achieve its goals. It typically spans a time frame of three to five years and involves managing resources effectively to direct the company towards its objectives.
Example: An organization may develop a strategic plan to enhance its market position by identifying key areas for growth and outlining the necessary actions to take in the coming years.