Intro to business strategy Flashcards
Name for strategies determined at main board level for the business as a whole
Corporate strategy
What is the name for strategies for strategic business units and individual markets
Business strategies
name for strategies for the main functions within each strategic business unit
functional/operational strategies
Is PESTEL analysis internal or external?
External
What does PESTEL stand for?
Political Economic Social and demographic Technological Ecological (environmental) Legal
Is Porter’s five forces analysis internal or external?
External
What are Porter’s five forces?
Competitive rivalry Threat of new entrants Threat of substitutes Bargaining power of customers Bargaining power of suppliers
What type of competitor is:
similar size firms with similar products
brand
What type of competitor is:
similar products but different markets or distribution methods
Industry
What type of competitor is:
distinctly different products that satisfy the same need
Form
What type of competitor is:
Different products but compete for the same disposable income
Generic
What type of competitor reaction is:
No response to competitor moves
Laid back
What type of competitor reaction is:
responds aggressively to all competitor moves
Tiger
What type of competitor reaction is:
reacts to some threat in some markets but not to others
selective
What type of competitor reaction is:
difficult to predict when or how they will react
stochastic
Is the 9 Ms model internal or external analysis?
Internal
Is Porter’s value chain internal or external analysis?
internal
Is product life cycle analysis internal or external analysis?
Internal
What are the five stages in the product life cycle?
Development Introduction Growth Maturity Decline
Is the BCG matrix used in internal or external analysis?
Internal
What type of product has:
High market share in high market growth
Star
What type of product has:
High market share in low market growth
Cash cow
What type of product has:
Low market share in high market growth
Question mark
What type of product has:
low market share in low market growth
Dog
What is the strategy for a star?
Build
What is the strategy for a cash cow?
Hold or Harvest
What is the strategy for a question mark?
Build or harvest
What is the strategy for a dog?
Hold or divest
What does SWOT analysis stand for?
Strengths
Weaknesses
Opportunities
Threats
how to deal with stakeholders with:
low power and low interest
minimal effort
how to deal with stakeholders with:
low power and high interest
keep informed
how to deal with stakeholders with:
high power and low interest
keep satisfied
how to deal with stakeholders with:
high power and high interest
key players, need participation
According to Ansoff’s matrix, what is market penetration
More sales of existing products to existing markets
According to Ansoff’s matrix, what is product development?
Developing new products for existing markets
According to Ansoff’s matrix, what is market development?
Finding new markets for existing products
According to Ansoff’s matrix, what is diversification?
Developing new products for new markets
According to Ansoff’s matrix, what are the two types of diversification?
Related (e.g. honda motorbikes and cars)
Unrelated (e.g. yamaha motorbikes and pianos)
What are the three characteristics to evaluate strategy?
Suitability
Feasibility
Acceptability
