Strategic choice

Question 1

Ansoff’s matrix

Answer 1

a model used to show the degree of risk associated with the four growth strategies of market penetration, market development, product development and diversification.

Question 2

Market penetration

Answer 2

achieving higher market shares in existing markets with existing products.

Question 3

Product development

Answer 3

the development and sale of new products or new developments of existing products in existing markets.

Question 4

Market development

Answer 4

the strategy of selling existing products in new markets.

Question 5

Diversification

Answer 5

the process of selling different, unrelated goods or services in new markets.

Question 6

Force-field analysis

Answer 6

technique for identifying and analysing the positive factors that support a decision (‘driving forces’) and negative factors that constrain it (‘restraining forces’).

Question 7

Decision tree

Answer 7

a diagram that sets out the options connected with a decision and the outcomes and economic returns that may result.