Strategy as Choice Flashcards
1
Q
Environmental analysis
A
consider micro and macro environment
2
Q
Porter’s 5 forces - Micro environment
A
- the lower each force, the more attractive the industry
1. Industry competitors
2. Suppliers bargaining powers
3. Buyers bargaining powers
4. Potential entrants
5. Threat of substitute goods in alternative market
3
Q
PESTEL model - macro environment
A
- Political
- Economic
- Social
- Technological
- Environmental
- Legal
4
Q
Scenario planning
A
- In event of uncertainty, consider all scenarios and outcomes
- Map these outcomes on a graph
- they will produce a ‘shell’ shape
5
Q
‘outside in’ - porter
A
- create a strategy based on structure of the market
- strategy rests on creating something unique
6
Q
Porter’s Generic Strategies
A
- Cost Leader ( low cost - high profit - low price)
- Differentiator (high costs - high profit - high price)
You don’t want to be in the middle
- high cost - low profit - low price
7
Q
How would you achieve cost leader strategy?
A
- economies of scale
- input costs
- process innovation
8
Q
How would you achieve differentiation strategy?
A
- features
- quality
- brand image
- customer needs
9
Q
Value change
A
- once you’ve decided you position, create a value change
- consists of primary activities (directly adds value) and support activities (indirectly adds value)
10
Q
Primary activities
A
-
11
Q
Support activities
A
-
