Business Objectives and Stategies

Question 1

What is Ansoff’s Matrix

Answer 1

A strategic tool to help achieve growth by presenting the product and market choices available to a business.

Question 2

What are the 4 different strategies involved in Ansoff’s Matrix

Answer 2

• Market Penetration
• Product Development
• Market Development
• Diversification (Related and Unrelated)

Question 3

Do the 4 strategies in Ansoff’s Matrix have new customers/product or existing customers/products.

Answer 3

Market penetration - Same product & Same customers.
Product development - New product & Same customers.
Market development - Same product & New customers.
Diversification - New product & New customers.

Question 4

What is Porter’s Strategic Matrix

Answer 4

A model that looks at strategies that can be adopted by a business to gain competitve advantage.

Question 5

What are the 4 strategies of Porter’s Strategic Matrix

Answer 5

• Cost leadership
• Differentiation
• Cost Focus
• Differentiation Focus

Question 6

What do the 4 strategies in Porter’s Matrix mean

Answer 6

Cost Leadership - Be the most competitve company in cost in the entire market.
Differentiation - A distinctive company recognised for its uniqueness, quality or personality.
Cost Focus - Be very competitive in cost in a particular product or niche.
Differentiation Focus - Have a differentiated product or market niche.

Question 7

What is the Boston Matrix

Answer 7

A model which helps businesses analyse the market positions of their portfolio of products/brands.

Question 8

What do the four categories to the Boston Matrix each mean

Answer 8

Stars - high growth products, high market share, competing in markets where they are strong compared to competition.
Question Marks - low market share, operating in high growth markets, they have potential but will need a lot of investment to grow.
Cash Cows - low growth products, high market share, successful products so don’t need much more investment.
Dogs - low market share, low growth markets, may generate some profits but has little potential to do well in future.

Question 9

What is Kay’s Distinctive Capabilities

Answer 9

A form of competitive advantage that is difficult for competitors to imitate. As it cannot be easily copied. Which makes it a sustainable competitive advantage.

Question 10

What are the 3 types of distinctive capabilities

Answer 10

Architecture - contracts and relationships within and around the business.
Innovation - Investing in new products or services to create a sustained competitive advantage.
Reputation - Excellent brand image, built over time.

Question 11

What is the difference between strategic and tactical decisions

Answer 11

Strategical is long term (relates to overall goal) and Tactical is short term (responding to current business conditions).