Business Environments

Question 1

Developing a management strategy

Answer 1

Define vmg and corporate objectives

Analyze environments

Identify possible issues

Identify different strategic options available

Evaluate viability and analyze options+prioritize

Plan implementations

Implement strategy

Monitor + control

Question 2

Micro environment components

Answer 2

PPP HAM GF

Question 3

Techniques to identify challenges in micro

Answer 3

SWOT

Resource based approach ( valuable rare unique non-substitutable > value creating strategy )

Value chain analysis ( costs )

BALANCED SCORECARD - overall performance

• financial perspective
• customer perspective
• internal (business) process perspective ( operations + social )
• Learning + growth perspective ( assets + improvements/ opportunities)

Question 4

Porters 6 force

Answer 4

Threat of new entrants 
Level or rivalry 
Power of buyers 
Power of suppliers 
Threat/ availability of substitute products 
Complementary products

Question 5

Advantages of strategies

Answer 5

Gives direction and aims

Consistency in decisions

Differentiates responsibility areas of management

Puts business role into broader economy

Anticipates internal + external changes ( links environments and aligns resources with changes )

Question 6

Types of strategies

Answer 6

CORPORATE
growth
( internal - emphasizing aspect of existing & external adjusting surroundings etc )
Decline - diversiture ( selling ) - harvest ( withdrawing cash/assets) - liquidation ( termination )

CORPORATE COMBINATION 
Joint venture ( maintain identity ) 

Merger ( growth - new identity )

Takeover ( shares > ownership )

Competition
Bigger player
Finance / resources

GENERIC
low-cost ( reducing costs - increasing profits / increasing market share ) - financial stability

Differentiation

Focus strategy - segment , specification

INTENSIVE STRATEGIES 
market penetration ( gain m share > pricing marketing strategies ) 

Product development ( new product , existing market )

Market development ( new market existing product )

Diversification ( new product for new market / complimentary / unrelated products to exiting market / creating market / invention ) - less risk

OTHER STRATEGIES
Revise mission

Revise / establish new objectives

Allocate resources more effectively