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BTF > Introduction To Business Strategy > Flashcards

Introduction To Business Strategy Flashcards

1
Q

The 3 levels of strategy?

A

Corporate
Business
Functional (operational)

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2
Q

What 6 things does strategy consider?

A

{Long-term Swear}

Long term

Sustainable competitive advantage
Whole organisation
External environment
All stakeholders
Resources

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3
Q

What is corporate strategy?

A

Strategy determined at board level for whole business

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4
Q

What is business strategy?

A

Strategy for:
Strategic business units (SBUs)
Individual markets

E.g. gaining sustainable competitive advantage.

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5
Q

What is functional strategy?

A

Strategy focusing on:
Main functions within each SBU.

E.g. operations, finance, HRM and marketing.

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6
Q

What is a strategic plan?

A

Statement of:

  1. Long-term GOALS
  2. STRATEGIES to get there.
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7
Q

4 stages of (formal/traditional/rational) strategic planning per Johnson and Scholes)?

A

Strategic analysis (Where are we now?)
Strategic choice (Select plan)
Strategy implementation
Review and control

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8
Q

What is external analysis?

A

Evaluating opportunities and threats outside the business.

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9
Q

What 4 types of factors are analysed in external analysis?

A

{P.G. T.B.}

Physical
General
Task
Business

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10
Q

The 4 S’s of static environments?

A

Static
Single product/market
Simple technology
Safe environment

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11
Q

The 4 D’s of dynamic (future) environments?

A

Dynamic changes
Diverse product/market
Difficult environment
Dangerous to stand still

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12
Q

Factors in PESTEL analysis?

A

Political
Economic
Social and demographic
Technological
Ecological/Environmental
Legal

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13
Q

Porter’s five forces analysis of competition in an industry?

A

{TBC}

Threat of new entrants
Threat of substitutes

Bargaining power of customers
Bargaining power of suppliers

Competitive rivalry

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14
Q

Kotler’s 3 types of competitor for competitor analysis?

A

{BIF}

Brand
Industry
Form

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15
Q

Kotler’s brand competitor

A

Similar size + product

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16
Q

Kotler’s industry competitor

A

Similar product different market/distribution

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17
Q

Kotler’s form competitor

A

Different product same need

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18
Q

Kotler’s generic competitor?

A

Different product but same disposable income

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19
Q

Kotler’s four competitor reactions for competitor analysis?

A

Laid back
Tiger
Selective
Stochastic

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20
Q

Kotler’s laid back competitor reaction

A

No response when competitor moves

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21
Q

Kotler’s tiger competitor reaction

A

Aggressive response to all competitor moves

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22
Q

Kotler’s selective competitor reaction

A

Reacts to threats in some MARKETS but not others

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23
Q

Kotler’s stochastic competitor reaction

A

Unpredictable

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24
Q

Resource audit

A

Analyses TANGIBLE AND INTANGIBLE resources available

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25
Q

9Ms model of resources available to businesses?

A

Men
Machines
Money
Material
Markets
Make up
Management
Methods
MIS

26
Q

Porter’s value chain analysis

A

Assess how each business activity adds value by measuring cost and sales revenue of each activity. Activities that don’t add value can be identified and reduced/removed.

27
Q

Porter’s value chain 5 primary activities?

A

{moosi}

Marketing and sales
Operations
Outbound logistics
Services
Inbound logistics

28
Q

Porter’s value chain 4 support activities?

A

PHaT Fuck

Procurement
Human resource management
Technology development

Firm infrastructure

29
Q

Product life cycle (PLC) analysis?

A

Application of life cycle theory to products/services
Usually plotted on a graph of sales and cash flow v amount. Showing introduction, growth, maturity and decline.

30
Q

BCG matrix: High market growth high market share

A

Star

31
Q

BCG matrix: High market growth low market share

A

Question mark

32
Q

BCG matrix: High market share low market growth

A

Cash cow

33
Q

BCG matrix: Low market share low market growth

A

Dog

34
Q

BCG analysis: Star

A

High market share but threat from new entrants. So requirement to build.
Cash neutral position.

35
Q

BCG analysis: Question mark

A

Business must decide to harvest or build
Build = inject more finance so negative cash flow

36
Q

BCG analysis: Cash cow

A

Low risk of new entrants. So hold pistol. and harvest.
Positive cash flow.

37
Q

BCG analysis: Dog

A

Must decide to divest or hold.
Hold if modest cash flows.

38
Q

SWOT: Sections from internal analysis

A

Strengths and weaknesses

39
Q

SWOT: Sections from external analysis

A

Opportunities and threats.

40
Q

Mendlow’s power-interest stakeholder matrix: low interest and low power

A

Minimal effort can be directed

41
Q

Mendlow’s power-interest stakeholder matrix: High interest low power

A

Keep informed

42
Q

Mendlow’s power-interest stakeholder matrix: low interest high power

A

Keep satisfied

43
Q

Mendlow’s power-interest stakeholder matrix: High interest high power

A

Key players - need participation

44
Q

What is used to decide how to compete?

A

Porter’s generic strategies
(position competitors find hard to replicate)

45
Q

What is used to decide how to grow?

A

Ansoff’s matrix

46
Q

Porter’s generic strategies:

Competition: Lower cost
Competitive scope: Broad target

A

Cost Leadership

47
Q

Porter’s generic strategies:

Basis of competition: Differentiation
Competitive scope: Broad target

A

Differentiation

48
Q

Porter’s generic strategies:

Basis of competition: Lower cost
Competitive scope: Narrow target

A

Cost focus

49
Q

Porter’s generic strategies:

Basis of competition: Differentiation
Competitive scope: Narrow target

A

Differentiation focus

50
Q

Porter: Cost leadership

A

Lower cost base than rivals so reduce prices

Through:
Economies of scale
Cheaper supply
Reduced labour cost

51
Q

Porter: Differentiation

A

Stand out though features/perception

Through:
Branding
Innovation
Quality
Performance

52
Q

Porter: Focus strategy

A

Specialise on clear market segment(s)

Through:
Identifying segment with similar needs
Picking differentiation or cost focus
Developing marketing mix to meet segment needs

53
Q

Ansoff’s matrix:

Products: Existing
Markets: Existing

A

Market penetration

More sales of existing products to existing markets.
E.g. price cuts, advertising

54
Q

Ansoff’s matrix:
Products: New
Markets: Existing

A

Product development

Develop new products for existing markets
E.g. r&d

55
Q

Ansoff’s matrix:
Products: Existing
Markets: New

A

Market development

Find new markets for existing products
E.g. new customer segments or geographical locations

56
Q

Ansoff’s matrix:
Product development: New
Markets: New

A

Diversification

Develop new products for new markets
1. Related diversification (same type of product)
2. Unrelated diversification (completely different type of product)

57
Q

Johnson, Scholes and Whittington’s 3 tests for strategy evaluation?

A

{S.trategy F.ucking A.ce}

Suitability
Feasibility
Acceptability

58
Q

Johnson, Scholes and Whittington’s 3 tests for strategy evaluation: Suitability

A

Is it consistent internally and externally?
Exploit strengths?
Mitigate weaknesses?
Take advantage of opportunities?
Minimise threats?

59
Q

Johnson, Scholes and Whittington’s 3 tests for strategy evaluation: Feasibility

A

Within resources and capability?
Finance, time-scale, other resources, internal competencies

60
Q

Johnson, Scholes and Whittington’s 3 tests for strategy evaluation: Acceptability

A

Will key stakeholders be happy?

Risk/return

61
Q

4 key functions of a business (for functional strategy)

A

{Functions Help Our Mum}

Finance
Human resource management
Operations
Marketing

BTF (14 decks)

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