Chapter 8 - Choosing And Strategy

Question 1

What is Ansoffs Matrix about

Answer 1

Selling new/ existing products in new/ existing markets

Question 2

What are the variables of Ansoffs Matrix

Answer 2

Products/Services AND Market

Question 3

Selling Existing Products/Services in Exisitng markets is

Answer 3

Market penetration - company can withdraw or consolidate if it wishes.

Question 4

Selling new Products/Services in Existing markets is

Answer 4

Product Development. Selling new products to existing customers. Slightly risky involves investment in new products and irs success depends on relationship with customers

Question 5

Selling Existing Products/Services in new markets is

Answer 5

Market Development. This means seeking ne customers for existing products via new distribution channels. Risk is reasonably low

Question 6

Selling new products/Services in new market is

Answer 6

Diversification. Selling new products to new customers may offer significant growth potential but is risky and it requires a lot of investment

Question 7

What is Product Development

Answer 7

Selling new Products/Services in Existing market/customers. Risk as investment involved.

Question 8

Market Penetration is

Answer 8

Selling Existing Products/Services in Exisitng markets. Via promotions reductions. Low risk.

Question 9

Diversification is

Answer 9

Selling new products to new customers

Question 10

Market Development is

Answer 10

Seeking new customers for existing products- perhaps via a new distribution channel

Question 11

Methods of Development

Answer 11

Internal Dev, Strategic alliances, Mergers and acquisitions AND Franchising

Question 12

What is internal development

Answer 12

Internal development is slow growth, using internal resources

Question 13

What is Franchising

Answer 13

Paying to use a company’s brand expertise support and services

Question 14

What is Strategic alliances

Answer 14

Cooperation where two or more organisations share resources to pursue same strategy and goals. Formal or informal - Joint Venture.

Question 15

Mergers and Acquisiton Benefits and Disadvantages

Answer 15

ADVANTAGES- Stronger together, share knowledge, market share increase, share price increases, econ of scale, removal of competitor. DISADVANTAGES- Increase of costs and restructuring, time consuming, loss of leaders, duplication of skills, expensive, integration and culture problems, control issues

Question 16

TOWS is

Answer 16

WT Weakness Threat (minimise threat), WO Weakness Opportunity ( Minimise weakness and maximises opportunities), ST Strength Threat (deal with threats), SO Strength Opportunity (exploit opportunities)

Question 17

What can be used to evaluate strategies?

Answer 17

SAF- Suitability, Acceptability, Feasibility. Is it SUITABLE does it grasp opportunities, does it combat threats, address weaknesses and exploit strength. Is it ACCEPTABLE by shareholders is it risky, will stakeholders be happy or not. It is FEASIBLE, can it be done, Time/£$/People