BST Theory

Question 1

PESTEL

Answer 1

Political 
Economic 
Social / Demographic 
Technological 
Ecological
Legal 

These factors all affect the level of competition in an industry

Question 2

Porters Five Forces

Answer 2

Industry Competitors / Rivalry 
Potential entrants 
Customers 
Substitutes 
Suppliers

Analyses forces within an industry, gives an indication of level of profit and competition.

Question 3

BCG Matrix

Answer 3

High market share, high market growth = star
High market share, low market growth = cash cow
Low market share, high market growth = question mark
Low market share, low market growth = dog

When considering product portfolio.
Want a balanced portfolio.

Question 4

SWOT Analysis

Answer 4

Strengths / weaknesses internal to the company
Opportunities & threats - external to the company

Want to match strengths to opportunities

Question 5

Porter’s three generic strategies

Answer 5

2x2 matrix
Competitive basis
Competitive scope
Broad scope, low cost = cost leadership
Narrow scope, low cost = cost focus
High differentiation, broad scope = differentiation
High differentiation, narrow scope = differentiation focus

Question 6

Ansoff’s Product-Market Growth Matrix

Answer 6

2x2 Growth Matrix
Market & Product
Strategies;
Present market, present product = market penetration
Present market, new prouduct = product development
New market, present product = market development
New market, new product = diversification

Question 7

Reason’s for acquiring companies

Answer 7

Marketing 
Production advantages
Finance management 
Risk-spreading
Retain independence
Overcome barriers to entry 
Outplay rivals

Question 8

Balanced Scorecard Approach

Answer 8

Customer
Internal business
Innovation & learning
Financial

Question 9

Marketing Mix (4 P’s)

Answer 9

Product
Price
Place (distribution)
Promotion

Question 10

Lewin’s iceberg model

Answer 10

Unfreeze
Change
Refreeze