Strategic choice Techniques Flashcards
1
Q
Ansoff matrix
A
Considers the risk of growth strategies with reference to product and market
2
Q
Evaluation of Ansoff Matrix
A
- It only considers two main factors in the strategic analysis of a business’s options.
- Recommendations purely on the Ansoff matrix would lack important environmental evidence.
3
Q
Force-field analysis
A
- Involves looking at all of the forces for and against a decision.
4
Q
Benefits of force-field analysis
A
- The technique gives managers an insight that will allow them to strengthen the forces supporting a decision.
- Awareness of relevant forces increases the chances of making a good decision and ensuring that implementation is effective.
- Encourages managers to consider different aspects of a decision. By identifying restraining forces action can be taken to mitigate the negative effects of those forces.
5
Q
Evaluation of force-field analysis
A
- The allocation of values is subjective. Two managers could arrive at different values and propose very different decisions based on their assessments.
- If you’re making an important decision use it alongside other decision making tools such as Decision trees.
- Unskilled or inexperienced managers could fail to identify all of the relevant forces involved in the change process.
6
Q
Decision trees
A
- A diagram that sets out the options connected with a decision and the outcomes and economic returns that may result.
7
Q
Benefits of decision tree analysis
A
- Better decision making by considering the quantitive aspects of the choices
- Decision trees considers risk of decisions being successful and therefore takes into account uncertainty. Therefore make better informed decisions in terms of profitability.
8
Q
Evaluate of decision trees
A
- Accuracy of the data used, without experience from similar decisions it may lead to inaccuracy. The possible inaccuracy of data no longer makes decision trees useful
- Probabilities of events occurring may be based on past data, but circumstances may change.
