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Strategic Management > Ansoff > Flashcards

Ansoff Flashcards

1
Q

What are the 4 strategies within Ansoff?

A

Market penetration
Product Development
Market Development
Diversification

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2
Q

What is market penetration?

A

existing product existing market (low risk)

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3
Q

What is market development?

A

existing product new market (moderate risk)

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4
Q

What is product development?

A

existing market new product (moderate risk)

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5
Q

What is diversification?

A

new products in new markets (riskiest)

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6
Q

What are the types of diversification?

A

Product diversification
Geographic market diversification
Product-market diversification

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7
Q

What is product diversification?

A

operating in multiple industries

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8
Q

What is geographic market diversification

A

operating in multiplem geographic markets

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9
Q

what is product market diversification?

A

operating in multiple industries in multiple geographic markets

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10
Q

What are the two categories of diversification?

A

Related
unrelated

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11
Q

What is related diversification

A

expanding into products or services with relationships to the existing business

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12
Q

What is unrelated diversification?

A

diversifying into products or services with no relationship to existing businesses

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13
Q

What is conglomerate diversification

A

an extreme version with no operational or strategic linkages between businesses

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14
Q

what are the benefits of conglomerate diversification

A

gains from the reputation of the group and potentially lowers financing costs

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15
Q

what is a cost of conglomerate diversification

A

costs arise because there are no obvious ways to generate value

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16
Q

Reasons for diversification

A

Expectations of powerful stakeholders

Response to market decline

Risk sharing

Market power

17
Q

Reasons for integration

A

Control

Access to information

Cost reduction

Development of strategic capabilities

18
Q

What is divestment

A

When an organisation decides to pull out of one or more of its businesses

19
Q

Reasons for divestment

A

Poor performance

investor pressure

value of unit is more than value generated

20
Q

Types of divestment

A

Spin off
Sell off

21
Q

What is spin off divestment

A

SBU shares are distributed to parent company shareholders

22
Q

What is a sell off divestment

A

SBU sold to another company

23
Q

What is an equity carve out divestment

A

parent company sells a portion of shares to public but retains a significant portion to retain control of business

Strategic Management (3 decks)

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