Introduction to Business Strategy Flashcards
What is strategy
It is the direction and scope of an organisation over the long term
What are the three levels of strategy
Corporate
Business
Finance
What are the four main stages of strategic planning
Strategic analysis
Strategic choice
Strategy implementation
Review and control
What does PESTLE stand for
Political Economic Social and Demographic Technological Legal Environmental
What are the four types of competition
Brand - similar size, similar products
Industry - similar products, different markets
Form - different products, same need
Generic - different products, same disposable income
What are the four competitor reaction profiles
Laid back - no response
Tiger - aggressive response to all threats
Selective - reacts to some threats
Stochastic - unpredictable
What are the 9Ms of internal analysis
Machines Money Material Markets Make up Management Methods MIS Men/Women
What are the fives stages of a product life cycle
Development - Negative cash flow Introduction Growth Maturity - Highest sales and cash flow Decline
What is a star in BCGs market matrix
High market growth, high market share
Requires capital expenditure to maintain
Under threat from new entrants
Usually cash neutral
What is a question mark in BCGs market matrix
High market growth, low market share
Should it be left to die or invest in more
Negative cash flow
What is a cash cow in BCGs market matrix?
Low market growth, high market share
Low expenditure, high income
Hold position and return positive cash flow
Used to fund stars
What is a dog in BCGs market matrix
Low market growth, low market share
Ties up funds with poor returns
Either divest or hold depending on returns
What is a SWOT analysis and what does SWOT stand for
Strengths
Weaknesses
Opportunities
Threats
Used to identify strategic position
Explain Mendelow’s stakeholder mapping matrix
Low power, low interest - unimportant
Low power, high interest - keep informed
High power, low interest - keep satisfied
High power, high interest - top priority
How does Porter’s generic strategies detail competition
Competitive scope - broad or narrow target
Basis of competition - lower cost or differentiation
Low cost Differentiation Broad | Cost leadership | Differentiation | Narrow | Cost focus | Differentiation focus |
