10.3 Driving the business forward Flashcards
Company secretaries need to recognise the individual aspirations of people within an organisation, but must also consider and challenge the impact of choices on the whole b______
business
What is strategic direction?
The direction in which an organisation sees its future development and growth.
What are the four quadrants of Ansoff’s “product/market grid”?
- Market penetration
- Product development
- Market development
- Diversification
What is meant by market penetration?
Growth through the increase of the market share of the current product or mix of products.
The two main factors that may restrict an organisation’s ability to achieve market penetration are:
- retaliation from c_______
- l____ restriction (such as by the Competition and Markets Authority)
competition
legal
What is the difference between “product development” and “market development”?
Product development is the creation of new or evolved products or services. Market development is taking existing products or services into new markets.
There are four types of product diversification:
- h__________ (e.g. macbook to iPad)
- v________ (e.g. buying a supplier)
- c_________ (introduction of complementary products, e.g. PepsiCo buying fast food franchises.)
- c___________ (new and unrelated products introduced, e.g. Virgin Group)
horizontal
vertical
concentric
conglomerate
What is horizontal diversification?
Development of a new or variant product and market to competitors.
What is vertical diversification?
Acquisition of a supplier or customer
What is concentric diversification?
A subtype of horizontal diversification. Introducing a similar product that complements existing products.
What is conglomerate diversification?
A subtype of horizonal diversification. Introducing an entirely new and related product
