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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 is defined as the proportion (usually expressed as a percentage) of the total market that a business has compared to its competitors. For example, if the Ford Motor Company has approximately 30% market share in the car industry in Australia, this means that 30% of all cars sold in Australia are Ford vehicles.
Step 2
b. strategic plan
Answer
A strategic plan outlines an organization's long-term direction, typically over a period of 3 to 5 years. It involves high-level management and guides the future direction of an organization. For instance, a company may develop a strategic plan to enter a new market, focusing on how to allocate resources effectively to achieve this goal.