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BTF > Chapter 4 - Intro to business strategy > Flashcards

Chapter 4 - Intro to business strategy Flashcards

1
Q

What is a strategy?

A

A course of action, including specification of the resources required to achieve a specific objective

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2
Q

What is a corporate strategy?

A

Determined at board level for the business as a whole

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3
Q

What is a business strategy?

A

Form in strategic business units (SBU) Relates to how a particular market is appraoched

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4
Q

What is a functional/operational strategy?

A

Main functions within each SBU and how they effectively deliver strategies determined at corporate and business levels

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5
Q

What does strategic management involve?

A

Businesses’ scope
Long term direction
Allocation of resources

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6
Q

What characteristics of strategic decisions do Scholes and Johnson outline?

A

Scope of activities
Capabilities and the environment
Allocation of resources
Set off a chain of lesser operational decisions
Based on values and expectation of seniors
Dictate long term direction

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7
Q

What is a competitive strategy?

A

Generic strategies for competitive advantage

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8
Q

What is a product market strategy?

A

Determine where it competes and direction of growth

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9
Q

What is an institutional strategy?

A

Determines method of growth

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10
Q

What is strategy implementation?

A

Conversion of chosen strategies into detailed plans/objectives for operating units

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11
Q

What factors are considered when analysing the general environment? (PESTEL)

A

Political
Economic
Social/demographic
Technological
Ecological
Legal

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12
Q

How is the competitive environment analysed (Porter’s 5 forces)

A

Bargaining power of suppliers
Threat to entry
Threat of substitutes
Bargaining power of buyers
Rivalry amongst existing competitors

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13
Q

What are the 4 types of competitor named by Kotler?

A

Brand
Industry
Generic
Form

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14
Q

What are Kotler’s 4 reaction profiles?

A

Laid back - no response
Tiger - aggressive response to all
Selective - reacts to some
Stochastic - unpredictable

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15
Q

What aspects of a business should be analysed?

A

Resources and competencies
Value chain
Supply chain
Products and markets

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16
Q

What is a position audit?

A

Part of the planning process, examines the current state of the entity in respect of:
Resources
Products
Operating systems
Internal organisation
Current results
Shareholder returns

17
Q

What factors should be reviewed in a resource audit (9 Ms model)?

A

Machinery
Make-up
Management
Management info
Markets
Materials
Men and women
Methods
Money

18
Q

What is Porter’s value chain model?

A

Offers bird’s eye view of the business

Competitive advantage arises from how businesses organise and perform activities

19
Q

What are value drivers?

A

Elements of a product/service and activities that increase the amount of value customers place on it

Means of differentiation

20
Q

What is a cost driver?

A

Any activity that affects the cost of a product/service

21
Q

What is supply chain management (SCM)?

A

Optimising the activities of businesses working together

Can involve:
Reduction in number of suppliers
Reduction in customers for focus
Easier supplier involvement
Joint problem solving

22
Q

What is the product life cycle?

A

How a product demonstrates different characteristics of profit and investment over time

Stages:
Product development
Intro
Growth
Maturity
Decline

22
Q

What is the BCG matrix?

A

Assesses business’s products in term of potential cash generation and cash expenditure requirements.

Businesses are either:
Stars
Cash cows
?
Dogs

23
Q

What is relative market share?

A

Calculated by dividing an entity’s sales of a product or service in a specified market by the sales of the biggest competitor in that market.

24
Q

What is a corporate appraisal?

A

SWOT analysis in relation to internal and environmental factors

25
Q

What is internal analysis?

A

Appraisal of a businesses SW

26
Q

What is external analysis?

A

Appraisal of a businesses OT

27
Q

What do business objectives follow?

A

Wishes of the most dominant stakeholders

28
Q

What is Mendelow’s power/interest matrix?

A

Cat A (Low power and interest) - min effort
Cat B (High interest Low power) - keep informed
Cat C (High power low interest) - keep satisfied
Cat D (High power and interest) - Key player

29
Q

What are Porter’s 3 generic competitive strategies?

A

Cost leadership
Differentiation
Focus

30
Q

What is Ansoff’s matrix?

A

Existing markets and products - Protect/build
Existing markets New products - Product dev
New markets Existing products - Market dev
New markets and products - Diversification

31
Q

What is Johnson and Scholes’ SAF analysis?

A

Suitability
Acceptability
Feasibility

32
Q

What do functional strategies affect?

A

Marketing function
Production function
HR function
Finance function

BTF (11 decks)

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