choosing strategic direction

Question 1

What is the strategic direction of a business

Answer 1

decisions regarding the market it competes in and the products it offers

Question 2

what is the model for strategic direction

Answer 2

Ansoff’s matrix

Question 3

Ansoff’s matrix: Existing products + Existing markets

Answer 3

market penetration

Question 4

Ansoff’s matrix: Existing products + New Markets

Answer 4

market development

Question 5

Ansoff’s matrix: New products + Existing markets

Answer 5

Product development

Question 6

Ansoff’s matrix: New products + New markets

Answer 6

diversification

Question 7

Ansoff’s matrix: if one part is new, what its section?

Answer 7

the new part’s development

Question 8

what influences a businesses strategy

Answer 8

expected costs
expected returns
opportunity costs
risk
available resources
impacts on stakeholders
potential ethical issues

Question 9

what is a businesses strategic positioning

Answer 9

perceived relative to other businesses within the industry

Question 10

what is the model for strategic positioning

Answer 10

Porter’s generic strategies and bowman’s clock

Question 11

what are the axis on porter’s generic

Answer 11

competitive advantage
competitive scope

Question 12

Porter’s generic: Lower cost + broad target

Answer 12

cost leadership

Question 13

Porter’s generic: Lower cost + narrow target

Answer 13

cost focus

Question 14

Porter’s generic: differentiation + narrow target

Answer 14

differentiation focus

Question 15

Porter’s generic: differentiation + broad target

Answer 15

differentiation

Question 16

what are the axis on bowman’s clock

Answer 16

perceived added value
price

Question 17

Bowman’s clock: which sections are uncompetitive

Answer 17

6 - risky high margins
7 - monopoly pricing
8 - loss of market share

Question 18

Bowman’s clock: what is position 2

Answer 18

low price

Question 19

Bowman’s clock: what is position 1

Answer 19

low price and low added value

Question 20

Bowman’s clock: what is position 3

Answer 20

hybrid

Question 21

Bowman’s clock: what is position 4

Answer 21

differentiation

Question 22

Bowman’s clock: what is position 5

Answer 22

focused differentiation

Question 23

influences on a positioning strategy

Answer 23

competitors
external environment
competencies of the business