Business Strategy (AL)

Question 1

Strategic management

Answer 1

Analysing cures business situation, setting long term objectives and deciding on strategy to achieve them

Question 2

Strategic analysis

Answer 2

process of conducting research in business environment to identify strategies

Question 3

Factors of business strategy

Answer 3

-Strengths of business
-Resources available
-Competitive environment
-Objectives

Question 4

Strategic choice

Answer 4

Decisions taken to choose a strategy from alternatives and techniques used to make choice

Question 5

Strategic implementation

Answer 5

Process of planning, allocating and controlling resources for a strategy

Question 6

Strategic decisions VS Tactical decisions

Answer 6

Strategic
-Long term
-Hard to reverse once committed
-Taken by senior mangers
-Cross functional

Tactical
-Short- medium term
-Easily reversible
-Taken by subordinates with delegated authority
-In one department

Question 7

Blue ocean and Red ocean

Answer 7

Blue ocean- exploits uncontested markets with product differentiation and low cost

Red ocean- competes with rivals in existing market

Question 8

Red VS Blue ocean

Answer 8

Red
-Existing market
-High value to customer = high cost to business
-Product differentiation or low cost

Blue
-Uncontested market
-High value to customer and low cost to business
-Product differentiation and low cost

Question 9

Scenario planning

Answer 9

Identifying possible future situations and how business can respond to them

Question 9

Scenario planning benefit and limitations

Answer 9

Benefit
-Considers main risks
-Develop range of strategies for different scenarios
-Flexible approach for different scenarios

Limitations
-Confusing as too many uncertainties
-May focus too much on one and be unprepared for other
-Less effective if only short term considered

Question 10

SWOT analysis

Answer 10

Strategic analysis that identifies the SWOT to influence future direction of business

S-Strength
W-Weakness
O-Opportunities
T-Threats

Question 11

PEST analysis

Answer 11

Strategic analysis of business’s macro environment

P-Politcal
E-Economic
S-Social
T-Technology

Question 12

Porter’s five forces model

Answer 12

Technique to analyse compétitive forces in a industry

1-Barriers to entry
2-Power of buyers
3-Power of sellers
4-Threat of substitutes
5-Competitive rivalry

Question 13

Porters five forces used to decide

Answer 13

-Enter a industry or not?
-Stay in the market in the future?
-To improve competitive position

Question 14

Core competence

Answer 14

Business capability that gives competitive advantage

Question 15

Core product

Answer 15

Based on core competence but not for final consumer

Question 16

Ansoff matrix

Answer 16

Model used to show the risks associated with growth strategies

-Market penetration-Existing product, existing market
-Market development-existing product, new market
-Product development-New product, existing market
-Diversification- new product new market

Question 17

Force field analysis

Answer 17

Identifying positive factors that support a decision and negative factors that constrain decisions

Question 18

Decision trees

Answer 18

Diagram that sets out the options connected with a decision and the outcomes and economics returns that may result

Check tb fro diagram

Question 19

Expected value

Answer 19

Likely financial result of an outcome obtained by multiplying probability of occurring by the forecast return