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Business Theme 3 > 3.1 Theories of cooperate strategy > Flashcards

3.1 Theories of cooperate strategy Flashcards

1
Q

Ansoff’s Matrix

A

A marketing planning model that helps a business determine its product and market strategy.

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2
Q

Market penetration

A

A growth strategy where a business aims to sell existing products into existing markets.

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3
Q

Market penetration aim

A

To increase market share by getting existing customers to buy more.

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4
Q

Market penetration evaluate

A

Focuses on products and markets it knows
Exploit insights

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5
Q

Examples of market penetration

A

McDonalds promotions
Aldi opening new stores

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6
Q

Product development

A

A growth strategy where a business aims to introduce new products into existing markets.

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7
Q

Product development evaluate

A

Plays to strengths of established businesses
Idea of being the first to the market.

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8
Q

Examples of product development

A

iPhone
Nike shoes

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9
Q

Market development

A

A growth strategy where business seeks to sell existing products into new markets.

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10
Q

Examples of Market development

A

New geographical markets
New Distribution matters
Different pricing strategies

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11
Q

Diversification

A

A growth strategy where business seeks to sell new products into new markets.

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12
Q

What risk does market penetration have?

A

Least risk

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13
Q

Disadvantage of the method of market penetration

A

Least potential for growth

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14
Q

What risk does product development have?

A

Moderate risk

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15
Q

Why does product development have risk?

A

Expenses with research and development.

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16
Q

What risk does market development have?

A

Moderate risk

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17
Q

Why does market development have risk?

A

market research is needed

18
Q

What risk does diversification have?

A

Most risk

19
Q

Why does diversification have risk?

A

Research and development costs
Market research costs

20
Q

Whats an advantage of diversification?

A

Stimulates growth potential

21
Q

Porter’s strategic matrix

A

Theory about the strategic positioning of a business.

22
Q

Low cost producer

A

Being the cheapest consumers can buy.

23
Q

How is a low cost producer achieved

A

Economies of scale
Finding cheapest suppliers
Unique innovation

24
Q

Differentiation

A

Something unique about business that consumers will pay for.

25
Q

How is differentiation achieved

A

High performance and quality
Unique distribution
High customer service

26
Q

What does a successful Corporate strategy do?

A

Help provide a competitive advantage.

27
Q

Aim of portfolio analysis

A

A detailed evaluation of its full range of products so appropriate strategies may be identified and pursued.

28
Q

Boston Matrix

A

Considers the relative market share of a firm’s products and the rate of growth within the market in which each product is sold.

29
Q

Stars

A

High market growth and high market share

30
Q

What can be used for star products?

A

Market penetration

31
Q

Cash cows

A

Low market growth and high market share

32
Q

What can be done for cash cows?

A

seeking a new market

33
Q

Question marks

A

High market growth and low market share

34
Q

What does a question mark product risk?

A

Becoming a dog.

35
Q

Dogs

A

Low growth market and low market share.

36
Q

What should happen to a dog?

A

Should be divested.

37
Q

Distinctive capabilities

A

A particular strength that is very difficult for competitors to copy.

38
Q

Distinctive capabilities examples

A

Operational skills and expertise
Relationship and network
Reputation and image

39
Q

Strategic decision making

A

Medium to long term planning to achieve corporate and functional objectives.

40
Q

Examples of strategic decision making

A

Entering a new overseas market
Withdrawing a product from sale
Merge with competitor

41
Q

What does strategic decision making have an impact on?

A

HR, Finance and Production

Business Theme 3 (17 decks)

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