CH 4 -Business strategy Flashcards Preview

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Flashcards in CH 4 -Business strategy Deck (16):

  1. What is strategy?
  2. What are the 4 factors to consider with strategy?

  1. The direction and scope of an organisation long term
  2. Long term direction / objectives
  • environmnet
  • return for stakeholders
  • resources


  1. Define corporate strategy
  2. Define business strategy
  3. Define Funtional strategy

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  1. What is resourced based strategic planning?
  2. What are the risks of this?

  1. The focus on developing internal resources and exploiting strengths
  2. Businesses may not react to long term indutrial trends lossing the interest of customers


  1. What is positioning strategic planning?
  2. What are the risks of this?

  1. Focusing on the external environment to cater for customer needs
  2. Organisation can consistantly be required to change


  1. What is a task business environment?
  2. What is a general business enviroment?

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The 'PESTEL' analysis is used to identify opportunities and threats from the gernal environment. Explain 'PESTEL'

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  1. What is Porter's principle?
  2. What are these 5 forces?

  1. That there are 5 competitive forces that determine competition and therfore influence the profit potential of an industry.
  • Threats of new competition
  • Threats of existing competition
  • Bargaining power of suppliers  → increase to price of supplies
  • Bargaining power of customers → decrease to selling price
  • Threats of subsitutes → a similar product/service that satisfies customer needs


How can threats of new competition be reduced?

  • Economies of scale
  • Capital requirments
  • Brand loyalty
  • Patents
  • Access to distribution


What does Philip Kotler's list as the 4 type of competitors in Porter's model? 

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How does Philip Kolter suggest that these types of competitives can be profiled

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  1. In the Chain value analysis what are primary activities?
  2. The following are primary activities. Explain how
  • Inbound logistics
  • Operations
  • Outbound logistics
  • Marketing and sales
  • services

  1. Activities thar provide value and are directly linked to providing goods and services.

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  1. In the Chain value analysis what are supporting activities?
  2. The following are support activites, explain how
  • Procurement
  • Technology development
  • Human resource management
  • Infrastructure

  1. Activities that do not create direct value but allow primary activities to take place with maximum efficiency.

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Show the product life cycle analysis with a graph.

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  1. What is the BCG Matrix?
  2. Explain....

  1. It allows an organisation to assess the balance of the product portfolio based on the rate of market growth and share.

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Manelow's power / interst matrix defines the type of relationship a business shoould seek with its stakeholders. Show based on power and level of interest if stakeholders.

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