Introduction To Business Strategy Flashcards
What is strategy?
The direction and scope of an organisation over the long-term
What does strategy consider?
The longer term
The whole organisation
Resources and environment.
Stakeholders
Sustainable competitive advantage
What are the levels of strategy?
Corporate strategy – at main board level
Business strategy – strategic business units, S B,U
Functional or operational strategy – main functions within each SBU
What are the stages of strategic planning?
Strategic analysis – where are we now?
Strategic choice – selection of strategic option.
Strategy implementation – convert into plans/objectives.
Review in control – monitor targets and budgets.
What is external analysis?
Factors outside the business, which can present opportunities or threats.
Physical, general, task, business.
Can be analysed using a PESTEL analysis
Environmental uncertainty can be divided into two types of environments, what are they?
Static environments – slow, change, single product, market, simple technology, safe environment. – The past can help to predict the future
Dynamic environment – dynamic changes, diverse product, market, difficult environment, dangerous to stand still – The past is often a poor guide to the future
What is PESTEL analysis?
Political – taxation, government spending, foreign trade regulations
Economic – external growth, exchange/interest rates, inflation,
Social demographic – attitudes, Taison fashions, population, demographics, income distribution.
Technological – new products, improve, production, methods, rate of obsolescence
Ecological – sustainability, pollution, climate change
Legal – industrial regulation, competition, legislation, employment law
What are porters five forces analysis?
Threat of new entrance?
Bargaining power of suppliers.
Threat of substitutes
Bargaining power of customers.
Competitive rivalry.
Kotler lists, four types of competitor, what are they?
Brand – Similar size firms with similar products
Industry.– Similar products for different markets or distribution methods
Form.– Distinctly different products that satisfy the same need
Generic– Different products, but compete for the same disposable income
Kotler lists 4 reaction profiles what are they?
Laid-back – no response.
Tiger – responds aggressively.
Selective – reacts to some threat, but not to others
Stochastic – difficult to predict 
What are the 9 am is that could be used in a resource audit?
Men/women
Machines
Money
Material
Markets.
Make up
Management.
Methods.
MIS
The BCG matrix has four positions, what are they?
Star – market share is high, but is under constant threat from new entrance. Market growth is high
? Market growth is high. Market share is lower – the business must decide whether to harvest or build.
Cash cow, market share is high. Market growth is no – reduce threat from new entrants, makes it easier for the business to hold their position.
Dog market growth is low. Market share is lower. The business must decide whether to divest or hold position in the short term. 
What is swot analysis?
Strengths, Weaknesses – internal analysis.
Opportunities, threats – external analysis 
