3.8 CHOOSING STRATEGIC DIRECTION Flashcards
What does ‘being competitive’ mean?
Desire to surpass other businesses
Name all sections of the ‘Ansoff’s Matrix’
- Market Penetration
- Market Development
- Product Development
- Diversification
How can businesses use the ‘Ansoff’s Matrix’ ?
If an organisation decides one of its objectives will be to grow the company, the ‘Ansoff’s Matrix’ will help them to devise strategies to grow the company.
GROWTH STRATEGIES
Explain the ‘market penetration’ strategy and its position on the ‘Ansoff’s Matrix’
Existing markets, existing products
- Ramp up marketing/ads for products, to drive out competition
- Already a well established product
Explain the ‘product development’ strategy and its position on the ‘Ansoff’s Matrix’
Existing market, new products
- Needs to be first/quick: before competition get in there
- Need to understand customer needs (R&D implementation)
Explain the ‘market development’ strategy and its position on the ‘Ansoff’s Matrix’
New market, existing product
- Selling via new channels
- Selling to new demographics
- New geographical areas
Explain the ‘diversification’ strategy and its position on the ‘Ansoff’s Matrix’
New market, new product
- Most risky
- R&D NEEDED
Give a contextual example of ‘market penetration’ (‘Ansoff’s Matrix’)
BigMac (through billboards)
Give a contextual example of ‘product development’ (‘Ansoff’s Matrix’)
Vegan burger (McPlant)
Give a contextual example of ‘market development’ (‘Ansoff’s Matrix’)
McDelivery = online market for McDonald’s
Selling online
Give a contextual example of ‘diversification’ (‘Ansoff’s Matrix’)
McCurry in India
Define the term ‘procurement’
Process of finding and agreeing to terms
e.g. procurement of suppliers (finding a supplier)
What factors may influence deciding on a supplier?
- Reliability
- Price
- Quality
- Lead time
- Logistics (JIT and TLC)
- Trade credit opportunities?
