4: Introduction to buiness strategy Flashcards
Strategy is the direction and scope of an organisation over the short term.
Strategy considers the whole organisation
Strategy considers the external environment
Strategy consider all external stakeholders
Strategy looks at how to gain a sustainable competitive advantage
Which two statements from the above are correct?
Strategy considers the whole organisation
Strategy looks at how to gain a sustainable competitive advantage
There are three levels of strategy. What are each of these levels called?
Corporate strategy
Business strategy
Functional strategy
Which level of strategy is determined at main board level and discusses the overall mission and objectives, expansion strategies and divestments?
Corporate strategy
Is “Review and Control” one of the main stages (per Johnson & Scholes) to strategic planning?
Yes, it is the final stage
External analysis looks at factors outside the business which can present _____ or _____
Opportunities or threats
A business needs to think about how static or dynamic its future environment is likely to be. For which environment is there value in studying the business’s historic environment to help predict the future?
Static, as change is only slow, so it can help predict the future.
In dynamic environments the past is often a poor guide to the future
“Diverse product/market” is the characteristic of which environment - static or dynamic?
Dynamic
External analysis can be analysed using PESTLE analysis
What does PESTLE analysis stand for?
Political
Economic
Social and demographic
Technological
Legal
Ecological (Environment)
Star, Cash cow, Dog and Question mark are all product positions of the ___ Matrix
BCG
In value chain analysis, the value is measured by the difference between the selling price of the activies and sales revenue created by sales to customers
True or false
False,
In value chain analysis, the value is measured by the difference between the cost of the activies and sales revenue created by sales to customers
Issues identified from internal analysis and external analysis can be combined using the SWOT technique. This stands for…
Strength, Weaknesses, Opportunities and Threats
Referring to the BCG matrix which position would result in a negative cash flow
Question Mark - Low market share, high growth
What is one way that a lower cost base can be achieved
Economies of scale
Seek cheaper sources of supply
Reduced labour costs
Within the home computers category, are laptops and desktop computers are both what?
Product class
Product form
Generic products
Product form
Is Ansoff’s Matrix for internal or external analysis?
Neither, it is for growth strategy analysis
