terminology

Question 1

Market Share

Answer 1

% market a company controls in terms of revenue or # of customers
↑ by gaining new customers

Question 2

Share of Wallet

Answer 2

$ amount a specific customer spends on a company relative to its competitors ↑ by getting existing customers to pay more

Question 3

Churn

Answer 3

rate at which customers stop doing business with a company over a given period of time

Question 4

Net Promoter Score

Answer 4

measures company loyalty; based on a single survey question asking respondents to rate the likelihood that they would recommend a company’s product or service

Question 5

What to Look for in External Analysis (Data Sources)

Answer 5

• Understand the Present - current situations
• Watch Trends - evolutionary changes, anticipate
• Anticipate Quick Change - predictable/surprising, anticipate & plan contingency strategies

Question 6

PEST(LE):

Answer 6

evaluate external environment; conditions that don’t discriminate!
- Political/Legal
- Economic
- Social/Environmental
- Technological

Question 7

Political/Legal

Answer 7

laws (e.g. int. trade), regulations
- Expansion
- Barriers
- Competition

Question 8

Economic

Answer 8

GDP, inflation, employment, exchange rate, interest rates, aggregate output
- Costs
- Demand
- Funding
- Competitive Pricing

Question 9

Social

Answer 9

values/attitudes, customs, habits, demographics
- Customers
- Employees
- Corporate Social Responsibility (CSR)

Question 10

Technological

Answer 10

info technology, internet, materials & equipment; always moving forward
- Barriers
- Innovation
- Strategy
- Research & Development

Question 11

Question: How would a change in the economic environment affect resources?

Answer 11

Economy (high rate of unemployment) → availability of human resources & worth