Strategic Choices Flashcards
What is corporate strategy?
It is about the overall scope of the organization and how value is added to the business
Explain Ansoff’s classic corporate strategy matrix?
Market penetration: increase market share of existing products
Product Development: create new products for existing market
Market development : expand into new markets with existing products
Diversification: entering completely new markets with new products
What are strategic business units?
Strategic business unit (SBU)
A standalone division of a larger conglomerate, with its own profit-and-loss responsibility
What are key characteristics of Strategic Business units
Separate management teams
Own distinct markets and competitors
Independent business objectives
Autonomy over resource allocation
What are the three business strategy models?
- Generic strategies
- Interactive strategies
- Business models
What are the generic strategies?
Cost leadership
Differentiation
Focus
Hybrid
What are the two interactive strategies?
Hyper competitive
Game theory
What are the 3 business models?
Value creation
Value configuration
Value capture
