Business Strategy Flashcards
strategic management
analysis of the current business situation, setting long - term objectives, deciding on business strategies to achieve them and then implementing these strategies
strategic analysis
the process of conducting research into the business environment and into the business itself, in order to help identify future strategies
strategic choice
the process that leads to a decision to choose a particular strategy from various alternatives and the techniques used to help make the choice
strategic implementation
the process of planning, allocating and controlling resources to support the chosen strategy
blue - ocean strategy
one that exploits uncontested market space through product differentiation and low cost
red ocean strategy
one that competes with rivals in existing markets
scenario planning
identifying possible future situation and how the business might respond to them
SWOT analysis
a form of strategic analysis that identifies and analyses the main internal strengths and weaknesses, and external opportunities and threats, that will influence the future direction and success of a business
PEST analysis
the strategic analysis of a firm’s macro environment, including political, economic, social and technological factors
Porter’s five forces model
a technique for analysing competitive forces within an industry
core competence
an important business capability that gives a firm competitive advantage
core product
product based on a business’s core competencies, but not necessarily for the final consumer or end user
Ansoff matrix
a model used to show the degree of risk associated with the four growth strategies of market penetration, market development, product development and diversification
market penetration
achieving higher market shares in existing markets with existing products
product development
the development and sale of new products or new developments of existing products in existing markets
market development
the strategy of selling existing products in new market
diversification
the process of selling different, unrelated goods or services in new markets
Force field analysis
A technique for identifying and analysing the positive factors that support a decision (driving forces) and negative factors that constrain it (restraining forces)
decision tree
a diagram that sets out the options connected with a decision and the outcomes and economic returns that may result
expected value
the likely financial result of an outcome obtained by multiplying the probability of an event occurring by the forecast economic return if it does occur
