BS EXAM RELEVANT

Question 1

Explain in your own words Ansoffs Matrix:

Explain: Market Penetration

Market Development

Product Development

Diversification

Answer 1

Market Penetration:

• Existing Market & existing products
• Intensify strategy

1. Current customer (Using rate)
2. Customers of competitors
3. Non Users

Market Development:

• New Market & Existing Products
• Expanding markets by:

1. Specific target groups
2. Geographic area

Product Development:

• Existing Market & New Product
• New Products determined by innovation level.

1. Real Innovations
2. Quasi new products

Diversification:
New Markets & New Products
1.Related Diversification
2.Vertical Diversification
3.Unrelated Diversification

Question 2

Explain Porter’s Five Forces.

Answer 2

Question 3

Acquisition, Internal Start Up & Joint Ventures / Strategic Partnerships are forms of entering new businesses, please define and explain.

Answer 3

• Acquisition

1. Most popular to diversify into another industry.
2. Decision challenge of buying a strugglin company at a low price, or a premium price for a successful business.
3. Cost of entry test requires should provide an overview of

• Internal Start-Up

1. Building a new subsidiary business from scratch.
2. Biggest disadvantage: Extra costs & time

• Joint Ventures/Strategic Partnerships (Alliances)

1. Joint Ventures typically forming a new corperate owned by both or more partners.
2. Strategic Partnerships when one of the partners chooses to partnership together.

a. To pursue an opportunity that is too complex, uneconomical, or risky for a single organization to pursue alone
b. When the opportunities in a new industry require a broader range of competencies and know-how than any one organization can marshal
c. To gain entry into a desirable foreign market especially when the foreign government requires companies wishing to enter the market to secure a local partner