Chapter 38: Strategic Analysis

Question 1

Define strategic analysis

Answer 1

Strategic analysis: the process of conducting research into the business environment within which an organisation operates, and into the organisation itself, to help form future strategies.

Question 2

Define SWOT analysis

Answer 2

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.

Question 3

Define PEST analysis

Answer 3

PEST analysis: the strategic analysis of a firm’s macro- environment, including political, economic, social and technological factors.

Question 4

Define mission statement

Answer 4

Mission statement: a statement of the business’s core purpose and focus, phrased in a way to motivate employees and to stimulate interest by outside groups.

Question 5

Define vision statement

Answer 5

Vision statement: a statement of what the organisation would like to achieve or accomplish in the long term.

Question 6

Define Boston Matrix

Answer 6

Boston Matrix: a method of analysing the product portfolio of a business in terms of market share and market growth.

Question 7

Define core competence

Answer 7

Core competence: an important business capability that gives a firm competitive advantage.

Question 8

Define core product

Answer 8

Core product: product based on a business’s core competences, but not necessarily for final consumer or end user.