Chapter 3 - Strategy Analysis

Question 1

What issues should be considered during strategy analysis?

Answer 1

Long-term direction
Scope of activities

Advantage over competition
Fit with business environment

Resources and competencies

Values and expectations

Question 2

What is corporate strategy concerned with?

Answer 2

Overall purpose and scope

Question 3

What is corporate strategy influenced by?

Answer 3

Government
Investors
Global Competition

Question 4

What is business unit strategy concerned with?

Answer 4

Pricing
Products

Customer satisfaction
Competitive advantage

Question 5

What are the five sources of power within a business?

Answer 5

Dependency

Financial Resources

Position

Uniqueness

Uncertainty

Question 6

What is PESTLE used to assess?

Answer 6

External business environment

Question 7

What is Porter’s Five Forces used to analyse?

Answer 7

Industry profitability

Key competitive forces

Question 8

What is MOST analysis used to understand?

Answer 8

Current business position

Question 9

What is a Resource Audit used to identify?

Answer 9

Core competences or lack of them.

Question 10

What five areas are examined in Resource Audit?

Answer 10

Physical resources
Financial resources
Human Resources
Know-how 
Reputation

Question 11

What are the four stages of a Boston Box?

Answer 11

Wild Cat (Problem Child)
Star
Cash Cow
Dog

Question 12

What is a Boston Box used for?

Answer 12

Portfolio analysis based on Market share and growth

Question 13

What is a Wild Cat?

Answer 13

Unprofitable product but investment for the future

Question 14

What is a Star?

Answer 14

Product that strengthens its position in a growth industry becoming big profit earner

Question 15

What is a Cash Cow?

Answer 15

Mature products with little growth

Question 16

What is a Dog?

Answer 16

Product with low market share and low growth

Question 17

What is SWOT Analysis used for?

Answer 17

Summarise major internal and external factors

Question 18

What techniques could you use to uncover strengths and weaknesses of your organisation?

Answer 18

Resource Audit

Boston Matrix

Question 19

What techniques could you use to uncover the opportunities and threats facing an organisation?

Answer 19

PESTLE

Porter’s Five Forces

Question 20

What five contextual issues need to be considered when executing strategy?

Answer 20

Time

Scope

Capability

Readiness

Strategic leadership

Question 21

How is McKinsey’s 7-S model used?

Answer 21

The seven components all need attention if a strategy is to be executed successfully because a changing one will affect others

Question 22

What is Balanced Business Scorecard used to assess?

Answer 22

Financial and non-financial components of strategy.

This helps define Critical Success Factors and Key Performance Indicators

Question 23

What are the five components of BBS

Answer 23

Vision and Strategy

Financial

Learning and Growth

Internal Business Process

Customer

Question 24

What are Critical Success Factors?

Answer 24

The few key areas where things must go right for a business to flourish and manager’s goals to be attained.

Question 25

What are Key Performance Indicators?

Answer 25

Measures that show whether progress is being made towards the achievement of a CSF

Question 26

What are the components of McKinsey 7-S Model?

Answer 26

Structure
Strategy
Systems

Shared Values
Skills
Style
Staff