Topic 5: Strategic management process and industrial analysis tools Flashcards
1
Q
What is a strategy?
A
- Long term plan of action to achive a spesific goal
- Specific plan of action to solve a problem
- Enhances the ability of the business to achive its vision
2
Q
Strategic management process?
A
- Review the mission statement
- Conduct enviromental analyis using SWOT analysis ect
- Formulate a strategy
- Impliment a strategy
- Monitor the implimented strategy
- Take corrective action
3
Q
SWOT analysis?
A
Internal factors
-Strengths: asppects that do well
- Weakneses: aspects that dont do well
External factors
- Oppertunities: New trends in the market
- Threats: Aggresive competition
4
Q
Porters five force model?
A
- Bargaining power of suppliers
- Bargaining power of buyers
- Threats of new entrants to the market
- Competitive rivalry
- Threat of substitution
5
Q
Bargaining power of suppliers?
A
- Suppliers that have a high quality product may have power over the business
- More powerfull the suppliers,the less powerfull the business
- Suplliers have great power when they sell a unique product
6
Q
Bargaining power of buyers?
A
- Assess how easy it is for coustomers to drive down prices
- Buyers buying in bulk can negotiate for better prices
- Conduct market research
7
Q
Threars of new entrants to the market?
A
- If the barriers to enter a market is low then it is easy for new entrants
- If the business is profitable it can attract new competitors
- New businesses can easily enter the market if it takes little resources
8
Q
PESTLE Analysis?
A
- Political
- Economic
- Social
- Technological
- Legal
- Envoromental
9
Q
Political challenges?
A
- Government policies that affect business
- Trade agreements may prevent imports
- Consumer rights organisations may prevent businesses from selling certain products that do not meet certain requirements
10
Q
Political recomendations?
A
- Research recent government policies
- Lobby with consumer rights organisations
- Trade only with countries that have favourable trade agreements
11
Q
Economic challenges?
A
- High inflation rates may negatively impact the business
- Loans may be expensive because of high intrest rates
- Fluctuations in foregin currency may restrict imports
12
Q
Economic recomendations?
A
- Consider decreasing profit margins rater than increasing prices
- Borrow money with low intrest rates
- Consider exchang rates trading with other countries
13
Q
Social challenges?
A
- Coustomers may not be able to afford products
- Business may not be conversant in the local language
- High crime might affect trading hours of the business
14
Q
Social recomendations?
A
- Sell subsitute product at a lower
- Learn local languages or hire conversant employees
- Work together with community police
15
Q
Technological challenges?
A
- Business may not be up to date on new technology
- Employees may not be skilled to operate new equiptment
- Business may not be able to afford new tecnology
16
Q
Tecnological recomendations?
A
- Conduct regualar research on new equiptment
- Train employees to use equiptment
- Compare prices for new equiptment
17
Q
Legal challenges?
A
- Consider the implications of various acts that may have a direct impact
- Legal requirements for certain types of businesses are time consuming
- High legal coats involved in obtaining a licence may prevent some establishments
18
Q
Legal requirements?
A
- Comply with all relevant legislation
- Comply with the legal requirements for operating businesses
- Budget for start-up costs
19
Q
Enviromental challenges?
A
- Chemicals may be harmfull to consumers
- Mesures to dispose of waste may be expensive
- Packaging of some producta may not be enviromentally friendly
20
Q
Enviromental recomendations?
A
- Indicate it on the packaging
- Impliment cost effective waste diaposal methods
- Impliment recycling measures
