2. Buisness Strategy

Question 1

Strategic thinking has 2 main coponents

Answer 1

insight about the present and foresight about the future.

Question 2

Customer information- what do should you know?

Answer 2

Who:

• uses your product
• buys from a competitor

Where:

• is your product available
• do customers find information \
• are customers located.

What:

• benefits do customers want
• is the basis of comparision with other products or services
• is the rate usage
• price will customers pay?
• is the potential market for your product or service.

Question 3

Strategic tools and techniques

3 stages:

Answer 3

1. Analyse the external environment
2. establish objectives
3. formulate the strategic plan

Question 4

What are the things we must consider when analysing competitive rivalry?

Answer 4

1. Threat of new entry
   -time and cost of entry, specialist knowledge, cost advantage. barriers to entry.
2. Supplier power (number of suppliers, will it cost you to change or substitute)
3. Buyer power: differences between competitors
   meh

Question 5

Strategic Tools and Techniques ‘

SWOT analysis

Answer 5

-the traditional approach is based on a dual scanning of both the external environment and the internal aspects of the organisation, and is often referred to as SWOT analysis:

Strengths and weaknesses are identified internally
Opportunities and Threats which may confront the organisation externally

Question 6

SWOT analysis:

Strengths: characteristics of our business that give it an advantage over others

Answer 6

• What advantages does our organization have?
• What do we do better than anyone else?
• what unique or lowest cost resources can we draw apon that others cant?
• what doe people in our market see as our strengths?
• what factors mean that we’ get the sale’
• what people skills do we have?

Question 7

SWOT analysis:

Weaknesses:

Answer 7

• what could we improve
• what should we avoid
• what are people in our market likely to see as our weaknesses?
• what factors lose us sale?
• what people skill do we lack?

Question 8

SWOT

Oppertunities?

Answer 8

Elements in our environment that we could use to our advantage.

• emerging trends in consumer tastes
• changes in technology and growth of new market oversease
• changes in government policy related to our field of operations.
• changes in social patterns, population profile and lifestyles.

Question 9

SWOT

Answer 9

Threats: elements in environment that could cause us trouble.

• what obstacles do we face
• what are our competitors doing
• is changing technology threatening our position?
• Do we have ongoing g bad debt or cash-flow problems?