Lesson 6 Flashcards
(32 cards)
What are the core enterprise skills that support business growth?
Risk taking, innovation, resilience, problem solving, strategic development, market analysis, commercial awareness, decision making, prioritisation.
Why is risk taking important for enterprise?
It involves being prepared to try something new, which can lead to growth and innovation.
What role does resilience play in enterprise?
It allows a business to adapt and flex to new circumstances and challenges
How does strategic development support growth?
It provides a roadmap for long-term success and helps align resources and efforts
What is business growth?
The continuous effort to make a business bigger to increase success and profits.
What are some ways a business can grow?
Increasing profitability, market share, size, sales revenue, entering new markets, or creating new products/services.
What happens to a business that is not growing?
It is said to be dying.
What are the four growth strategies in Ansoff’s Matrix?
Product/service development, market development, market penetration, diversification.
What does product and service development focus on?
Creating or improving products/services for existing customers.
Why do businesses use product/service development?
To meet changing needs, adapt to technology, and introduce new features.
Give an example of product/service development
Apple releases new versions of its products with improved features.
What is market development?
Expanding into new markets or targeting new customer segments.
Why use a market development strategy?
To address market saturation and find new growth opportunities.
Give an example of market development.
Airbnb expanded from room rentals to experiences and tours.
What is market penetration?
Selling more existing products to current customers
What are methods of market penetration?
Promotions, pricing adjustments, advertising, and product improvements.
Example of market penetration?
Coca-Cola’s Christmas campaigns and iconic red-suited Santa.
What is diversification in business growth?
Entering new markets or introducing entirely new products
Why do businesses diversify?
To reduce risk and dependence on one product or customer group.
Example of diversification?
Kraft Foods buying Cadbury and forming Mondelez International.
What is horizontal diversification?
Adding related products/services to appeal to different segments.
What is vertical diversification?
Gaining control over more stages of the supply chain (production or distribution).
What is organic growth?
Growth from within via new products, tech, or resource reallocation
What is inorganic growth?
Rapid growth through acquisitions, mergers, or aggressive expansion.
