business models Flashcards
what is Ansoff’s Matrix?
a strategy tool to help businesses achieve growth
what does Ansoff’s Matrix allow owners to consider? (4)
- level of investment in new and existing products
- the exploitation of different markets
- growth strategy for the business
- level of risk the business is willing to accept
what are the 4 strategies Ansoff’s Matrix analyses?
- market penetration
- product development
- market development
- diversification
what is market penetration?
using tactics e.g. marketing mix to increase the growth of existing products in an existing market
what is diversification?
developing new products in new markets
what is product development?
marketing new or modified products in existing markets
what is market development?
the marketing of existing products in new markets
what is PESTLE analysis?
a model that identifies eternal factors that may influence business activity and performance
what does an internal audit do/consider (5) in a SWOT analysis?
identifies the strengths and weaknesses of a business’ operations.
it will consider:
-product cost, quality, and development
-finance-profit,assets,cash flow
-production-stock management, utilisation,efficiency
-internal organisation- departmental structures
-human resources-training,recruitment,skill
what does an external audit do/analyse (7) in a SWOT analysis?
an analysis of the environment in which the business operates it will analyse: -size and growth potential of the market -characteristics of the consumers in the market -the products on offer -pricing structure -how products are distributed -how products are promoted -industry practices -structure of the industry -finance
what is the purpose of a SWOT analysis?
to look at internal strengths and weaknesses and external opportunities and threats
what factors do PESTLE analysis identify?
Political Economic Social Technological Legal Environmental
what is market mapping?
a visual representation of market research conducted measuring against 2 attributes
