models Flashcards
What is the Ansoff Matrix used for?
The Ansoff Matrix is used for identifying and evaluating growth strategies for a business.
True or False: The Ansoff Matrix includes four growth strategies.
True
Fill in the blank: The two dimensions of the Ansoff Matrix are __________ and __________.
Products, Markets
What are the four strategies outlined in the Ansoff Matrix?
Market Penetration, Market Development, Product Development, Diversification
Which strategy involves selling more of existing products to the current market?
Market Penetration
What is Market Development in the context of the Ansoff Matrix?
Market Development involves introducing existing products to new markets.
Short Answer: What is Product Development?
Product Development is the strategy of creating new products for the existing market.
Multiple Choice: Which of the following is NOT a strategy in the Ansoff Matrix? A) Market Penetration B) Market Analysis C) Product Development D) Diversification
B) Market Analysis
True or False: Diversification involves introducing new products to new markets.
True
What is the main risk associated with the Diversification strategy?
The main risk is entering an unknown market with an untested product.
Fill in the blank: The Ansoff Matrix helps businesses assess the __________ of their growth strategies.
Risk
Short Answer: What is the primary objective of using the Ansoff Matrix?
The primary objective is to evaluate and choose the best growth strategy.
Multiple Choice: Which strategy is considered the least risky? A) Market Penetration B) Product Development C) Diversification D) Market Development
A) Market Penetration
True or False: The Ansoff Matrix is also known as the Product/Market Expansion Grid.
True
What does a business need to consider when using the Ansoff Matrix?
A business needs to consider its market position, product capabilities, and competitive landscape.
What are Porter’s Five Forces?
A framework for analyzing the competitive forces within an industry.
Name the five forces in Porter’s model.
- Threat of new entrants 2. Bargaining power of suppliers 3. Bargaining power of buyers 4. Threat of substitute products or services 5. Industry rivalry.
True or False: The threat of new entrants decreases competition in an industry.
False.
Fill in the blank: The ________ of suppliers refers to their ability to influence the price of inputs.
bargaining power.
Multiple Choice: Which force examines how easily customers can switch to competitors? A) Threat of new entrants B) Bargaining power of buyers C) Industry rivalry D) Threat of substitutes
B) Bargaining power of buyers.
What does the threat of substitute products indicate?
The likelihood that customers will switch to alternative products or services.
True or False: High industry rivalry leads to higher prices for consumers.
False.
Short Answer: How can barriers to entry affect new entrants in an industry?
High barriers to entry reduce the likelihood of new entrants, thus decreasing competition.
Multiple Choice: Which factor is NOT a barrier to entry? A) Economies of scale B) Government regulations C) Customer loyalty D) Product innovation
D) Product innovation.
What is the impact of high bargaining power of buyers on suppliers?
It can drive prices down and reduce supplier profitability.
Fill in the blank: The ________ force assesses the intensity of competition among existing firms.
industry rivalry.
True or False: A low threat of substitutes is beneficial for industry profitability.
True.
What role do brand loyalty and differentiation play in Porter’s Five Forces?
They can create barriers to entry and reduce the threat of substitutes.
Multiple Choice: Which of the following is a factor that can increase the threat of new entrants? A) High capital requirements B) Strong brand loyalty C) Low economies of scale D) Strict government regulations
C) Low economies of scale.
Short Answer: How does the threat of new entrants affect established companies?
It pressures them to maintain competitive pricing and improve services to retain market share.
What does SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats
True or False: SWOT analysis is only used for large corporations.
False
Fill in the blank: A SWOT analysis helps organizations identify their internal __________ and __________.
strengths, weaknesses
What type of analysis is a SWOT analysis considered?
Strategic planning tool
Multiple choice: Which of the following is NOT a component of SWOT analysis? A) Strengths B) Opportunities C) Risks D) Threats
C) Risks
What is the purpose of identifying ‘opportunities’ in a SWOT analysis?
To recognize external factors that could be leveraged for growth or advantage.
True or False: Weaknesses in a SWOT analysis are internal factors that can hinder an organization’s performance.
True
List two examples of ‘strengths’ in a SWOT analysis.
Strong brand reputation, skilled workforce
What is the significance of analyzing ‘threats’ in a SWOT analysis?
To identify external challenges that could negatively impact the organization.
Fill in the blank: SWOT analysis is often used in __________ planning.
strategic
Multiple choice: Which of the following best describes a ‘weakness’? A) A competitive advantage B) A resource limitation C) A market opportunity D) A potential risk
B) A resource limitation
What is the first step in conducting a SWOT analysis?
Gather relevant information about the organization and its environment.
True or False: Opportunities in a SWOT analysis are always guaranteed to improve an organization’s performance.
False
What is one common use of SWOT analysis in business?
To inform strategic decision-making and planning.
Fill in the blank: The SWOT matrix is typically represented in a __________ format.
grid
