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Introduction To Business Strategy Flashcards

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1
Q

The 3 levels of strategy?

A

Corporate
Business
Functional (operational)

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2
Q

What 6 things does strategy consider?

A

{Long-term Swear}

Long term

Sustainable competitive advantage
Whole organisation
External environment
All stakeholders
Resources

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3
Q

What is corporate strategy?

A

Strategy determined at board level for whole business

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4
Q

What is business strategy?

A

Strategy for:
Strategic business units (SBUs)
Individual markets

E.g. gaining sustainable competitive advantage.

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5
Q

What is functional strategy?

A

Strategy focusing on:
Main functions within each SBU.

E.g. operations, finance, HRM and marketing.

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6
Q

What is a strategic plan?

A

Statement of:

  1. Long-term GOALS
  2. STRATEGIES to get there.
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7
Q

4 stages of (formal/traditional/rational) strategic planning per Johnson and Scholes)?

A

Strategic analysis (Where are we now?)
Strategic choice (Select plan)
Strategy implementation
Review and control

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8
Q

What is external analysis?

A

Evaluating opportunities and threats outside the business.

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9
Q

What 4 types of factors are analysed in external analysis?

A

{P.G. T.B.}

Physical
General
Task
Business

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10
Q

The 4 S’s of static environments?

A

Static
Single product/market
Simple technology
Safe environment

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11
Q

The 4 D’s of dynamic (future) environments?

A

Dynamic changes
Diverse product/market
Difficult environment
Dangerous to stand still

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12
Q

Factors in PESTEL analysis?

A

Political
Economic
Social and demographic
Technological
Ecological/Environmental
Legal

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13
Q

Porter’s five forces analysis of competition in an industry?

A

{TBC}

Threat of new entrants
Threat of substitutes

Bargaining power of customers
Bargaining power of suppliers

Competitive rivalry

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14
Q

Kotler’s 3 types of competitor for competitor analysis?

A

{BIF}

Brand
Industry
Form

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15
Q

Kotler’s brand competitor

A

Similar size + product

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16
Q

Kotler’s industry competitor

A

Similar product different market/distribution

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17
Q

Kotler’s form competitor

A

Different product same need

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18
Q

Kotler’s generic competitor?

A

Different product but same disposable income

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19
Q

Kotler’s four competitor reactions for competitor analysis?

A

Laid back
Tiger
Selective
Stochastic

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20
Q

Kotler’s laid back competitor reaction

A

No response when competitor moves

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21
Q

Kotler’s tiger competitor reaction

A

Aggressive response to all competitor moves

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22
Q

Kotler’s selective competitor reaction

A

Reacts to threats in some MARKETS but not others

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23
Q

Kotler’s stochastic competitor reaction

A

Unpredictable

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24
Q

Resource audit

A

Analyses TANGIBLE AND INTANGIBLE resources available

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25
9Ms model of resources available to businesses?
Men Machines Money Material Markets Make up Management Methods MIS
26
Porter’s value chain analysis
Assess how each business activity adds value by measuring cost and sales revenue of each activity. Activities that don’t add value can be identified and reduced/removed.
27
Porter’s value chain 5 primary activities?
{moosi} Marketing and sales Operations Outbound logistics Services Inbound logistics
28
Porter’s value chain 4 support activities?
PHaT Fuck Procurement Human resource management Technology development Firm infrastructure
29
Product life cycle (PLC) analysis?
Application of life cycle theory to products/services Usually plotted on a graph of sales and cash flow v amount. Showing introduction, growth, maturity and decline.
30
BCG matrix: High market growth high market share
Star
31
BCG matrix: High market growth low market share
Question mark
32
BCG matrix: High market share low market growth
Cash cow
33
BCG matrix: Low market share low market growth
Dog
34
BCG analysis: Star
High market share but threat from new entrants. So requirement to build. Cash neutral position.
35
BCG analysis: Question mark
Business must decide to harvest or build Build = inject more finance so negative cash flow
36
BCG analysis: Cash cow
Low risk of new entrants. So hold pistol. and harvest. Positive cash flow.
37
BCG analysis: Dog
Must decide to divest or hold. Hold if modest cash flows.
38
SWOT: Sections from internal analysis
Strengths and weaknesses
39
SWOT: Sections from external analysis
Opportunities and threats.
40
Mendlow’s power-interest stakeholder matrix: low interest and low power
Minimal effort can be directed
41
Mendlow’s power-interest stakeholder matrix: High interest low power
Keep informed
42
Mendlow’s power-interest stakeholder matrix: low interest high power
Keep satisfied
43
Mendlow’s power-interest stakeholder matrix: High interest high power
Key players - need participation
44
What is used to decide how to compete?
Porter’s generic strategies (position competitors find hard to replicate)
45
What is used to decide how to grow?
Ansoff’s matrix
46
Porter’s generic strategies: Competition: Lower cost Competitive scope: Broad target
Cost Leadership
47
Porter’s generic strategies: Basis of competition: Differentiation Competitive scope: Broad target
Differentiation
48
Porter’s generic strategies: Basis of competition: Lower cost Competitive scope: Narrow target
Cost focus
49
Porter’s generic strategies: Basis of competition: Differentiation Competitive scope: Narrow target
Differentiation focus
50
Porter: Cost leadership
Lower cost base than rivals so reduce prices Through: Economies of scale Cheaper supply Reduced labour cost
51
Porter: Differentiation
Stand out though features/perception Through: Branding Innovation Quality Performance
52
Porter: Focus strategy
Specialise on clear market segment(s) Through: Identifying segment with similar needs Picking differentiation or cost focus Developing marketing mix to meet segment needs
53
Ansoff’s matrix: Products: Existing Markets: Existing
Market penetration More sales of existing products to existing markets. E.g. price cuts, advertising
54
Ansoff’s matrix: Products: New Markets: Existing
Product development Develop new products for existing markets E.g. r&d
55
Ansoff’s matrix: Products: Existing Markets: New
Market development Find new markets for existing products E.g. new customer segments or geographical locations
56
Ansoff’s matrix: Product development: New Markets: New
Diversification Develop new products for new markets 1. Related diversification (same type of product) 2. Unrelated diversification (completely different type of product)
57
Johnson, Scholes and Whittington’s 3 tests for strategy evaluation?
{S.trategy F.ucking A.ce} Suitability Feasibility Acceptability
58
Johnson, Scholes and Whittington’s 3 tests for strategy evaluation: Suitability
Is it consistent internally and externally? Exploit strengths? Mitigate weaknesses? Take advantage of opportunities? Minimise threats?
59
Johnson, Scholes and Whittington’s 3 tests for strategy evaluation: Feasibility
Within resources and capability? Finance, time-scale, other resources, internal competencies
60
Johnson, Scholes and Whittington’s 3 tests for strategy evaluation: Acceptability
Will key stakeholders be happy? Risk/return
61
4 key functions of a business (for functional strategy)
{Functions Help Our Mum} Finance Human resource management Operations Marketing

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