Chapter 8 - Business Stategy

Question 1

Strategic Management

Answer 1

Analysis of the current business situation, setting long-term objectives, deciding on business strategies to achieve them and then implementing these strategies.

Question 2

Strategic Analysis

Answer 2

The process of conducting research into the business environment and into the business itself, in order to help identify future strategies.

Question 3

Strategic Choice

Answer 3

The process that leads to a decision to choose a particular strategy from various alternatives and the techniques used to help make the choice.

Question 4

Strategic Implementation

Answer 4

The process of planning, allocating and controlling resources to support the chosen strategy.

Question 5

Analysis

Answer 5

1) Blue Ocean - Red Ocean
2) Situational Analysis ( Scenario Planning )
3) SWOT
4) PEST
5) Porters Five Force
6) Boston Matrix
7) Core Competencies

Question 6

Blue Ocean And Red Ocean

Answer 6

**Blue - **
1) Untapped
2) Entrepreneurs Find Market Gap
3) Not a lot of competition
4) Risks are high
5) Price Skimming
**Red - **
1) Saturated
2) USP of products
3) High competition
4) Copyrights
5) Penetration Pricing, Slow Profits

Question 7

Situational Analysis / Scenario Planning

Answer 7

• Business Creates Scenarios
• Possible External Factors
• Contingency Planning

Question 8

SWOT

Answer 8

S - Strength
W - Weakness
O - Opportunity
T - Threat

• Strength Overcomes Weakness
• Opportunity Overcomes Threats

Question 9

PEST

Answer 9

P - Political And Legal Factors - Cash Withdrawals
E - Economic Factors - GDP, Appreciation and Depreciation, Inflation
S - Social Factors - CSR, Raw Materials, Surrounding community
T - Technological Factors - New Tech - Competitors get better tech

Question 10

Boston Matrix

Answer 10

Star - High Market Share : High Market Growth ( Ideal Situation )
Cash Cow - Low Market Growth : High Market Share ( Not sustainable in long run )
Problem Child - High Market Growth : Low Market Share ( Has Potential to become star )
Dog - Low Market Share : Low Market Growth ( Bad for business and risk )

Question 11

Porters Five Force

Answer 11

1) Threats From Substitutes
2) Threats From Entry
3) Bargaining Power Of Buyers
4) Bargaining Power Of Suppliers
5) Industry Rivalry

Question 12

Core Competency

Answer 12

Core Product of business

Question 13

Choice

Answer 13

1) Ansoffs Matrix
2) Force Field Analysis
3) Decision Tree

Question 14

Ansoffs Matrix

Answer 14

1) Market Development - Existing Product : New Market
2) Market Penetration - Existing Product : Existing Market
3) Product Development - New Product : Existng Market
4) Diversification - New Product : New Market

Question 15

Force Field

Answer 15

• Agenda In the middle
• For on one side
• Against on another sid
• which ever is better is chosen

Question 16

Decision Tree

Answer 16

• Money Aspect
• Hard to explain so assume you know it

Question 17

Implementation ( If u don’t know if fucking stupid )

Answer 17

1) Business Plan
2) SMART Objectives
3) Corporate Analysis
4) For and Against the existing plan

Question 18

Expected Value

Answer 18

The likely financial result of an outcome obtained by multiplying the probability of an event occurring by the forcaste economic return if any.