3.7 Strategic Positioning

Question 1

SWOT analysis (E)

Answer 1

Pros
Encourages analysis of external environment
Logical structure

Cons
Bias
Costly to work out
Environment ever changing

Question 2

Core competencies

Answer 2

Where a business excels , helps fork competitve advantage

Question 3

Kaplan and nortons balanced scorecard

Answer 3

Assessment in achievement of financial and non financial objectives

Learning and growth
Financial perspective
Customer perspective
Internal process - e.g good capacity utilisation

Question 4

Elkingtons triple bottom line

Answer 4

Assessing business on three areas

Profit
People
Planet

Question 5

Globalisation why a business may become global

Answer 5

New markets - exposure

Cost saving

Increase efficiency

Question 6

Importance of emerging economies for businesses

Answer 6

High rates of exportation , cheaper due to lower ER normally

Econ growth increasing income and increasing demand for goods and services

Suitable place for production

Question 7

Changes in social and demographic

Answer 7

Urbanisation
Migration
Consumer lifestyle and buying behaviour
Online world

Question 8

Porters five forces

Answer 8

Framework to analyse nature of competition in an industry

Threat of new entrants
Supplier power
Buyer power
Substitutes
Rivalry

Question 9

Sensitivity analysis

Answer 9

Challenges Assumptions made in business forecasts

E.g in break even we assume the selling price of the products