Chapter 2 - Strategy & Environment

Question 1

What is the PESTEL model?

Answer 1

A model looking into the macro-economic environment of the business. It tries to analyse and give a landscape of the external environment and influences from the outside:

Political
Economic
Social
Technological
Ecological
Lega

Question 2

What is Porter’s five forces model?

Answer 2

A model to evaluate the influences/forces in a sector. Used to assess and prioritise key factors.

1. Potential entrants
2. Client power
3. Substitutional product or services
4. Suppliers power
5. Public authorities

Question 3

What is the BCG Matrix?

Answer 3

A model used to evaluate products into four categories based on market share and potential growth rate.

1. Cash cows - big market share, low growth
2. Stars - big market share, high growth
3. Dog - low market share, low growth
4. Question marks - low market share, high growth

Question 4

What is the A.D. little matrix?

Answer 4

A matrix, based on the PLC curve, that evaluates choices (hold/push/abandon) of a product based on maturity (embryonic - ageing) and position on the market (weak - dominant).