Qualitative Frameworks Flashcards
(29 cards)
What does SWOT stand for?
Strengths, weaknesses, opportunities, threats
What does PESTE stand for?
Political, economical, social, technological, environmental
What are the two axes of the BCG (Boston Consulting Group) matrix?
Market share, market growth
What are the characteristics of a cash cow on the BCG matrix?
High market share, low market growth
What are the characteristics of a rising star on the BCG matrix?
High market share, high market growth
What are the characteristics of a dog on the BCG matrix?
Low market share, low market growth
What are the characteristics of a problem child on the BCG matrix?
Low market share, high market growth
What are Porter’s 5 Forces?
- Threat of new entry
- Threat of substitution
- Buyer power
- Supplier power
- Competitive rivalry
Which model would be useful to assess the attractiveness of a sector?
- Porters Five Forces
- SWOT
- PESTE
- BCG Matrix
Porters Five Forces
Which of the following is a strategy for gaining competitive advantage?
- Price Optimisation
- Value added
- Supplier Management
- Buyer Management
Value added
Which one of the following is one of the external forces categorised in PESTE?
- Suppliers
- Threat of new entrants
- Social Developments
- Emerging Markets
Social Developments
Which of the following is a description of the benefit of using the PESTE model?
- Determines the stage a business is at in its lifecycle
- Examines the current state of an individual business
- Focuses on the current position and factors that can change an industries dynamics
- Assesses the attractiveness of a sector
Focuses on the current position and factors that can change an industries dynamics
Which of the following would normally be a key business strategy during the start-up stage of market development?
- Cost reduction
- Asset reduction
- Investment
- Product/Market refocusing
Investment
The PESTE framework is designed to help you:-
- Access the extent of suppliers bargaining power in a sector
- Analyse the rivalry between existing businesses within a sector
- Determine at what stage a specific business is in its life cycle
- Identify and react to the potential impact of technological developments
Identify and react to the potential impact of technological developments
As a business moves through the BCG Matrix it changes from being a consumer of cash to a generator of cash. At which stage does this normally occur?
- Problem Child to Rising Star
- Rising Star to Cash Cow
- Dog to Cash Cow
- Cash Cow to Problem Child
Rising Star to Cash Cow
Which of the following are two of the three generic strategies identified by Porter for gaining competitive advantage?
- Value added and niche player
- Cost differentiation and supplier management
- Niche player and price optimisation
- Value added and buyer management
Value added and niche player
A Company has just launched an innovative new product. According to the BCG Matrix, what stage of the business lifecycle has it reached?
- Dog
- Cash Cow
- Rising Star
- Problem Child
Problem Child
Which one of the following is the best example of where it is likely to be acceptable to support a business at the Dog stage of the BCG Matrix?
- Business in slow decline, but market still substantial and ongoing financing likely to be minimal
- Business in rapid decline and profits under threat however good security cover is held
- Business has ceased developing new products so it can focus on generating sales from a market that has been in decline for the last few years
- Business is in decline however various competitors have ceased trading and new management believe there is potential to generate additional sales
Business in slow decline, but market still substantial and ongoing financing likely to be minimal
Sustaining competitive advantage is a major challenge for any business. Which one of the statements about competitive advantage is NOT true?
- Fundamental cost advantage may arise through an innovative production process
- A strategy based solely on meeting needs better and cheaper is highly likely to be successful in the long term
- For a competitive advantage to be sustainable it must be based on a fundamental advantage in cost or skill
- Operating in a niche market allows a business to achieve an advantage through being precise in its strategic target
A strategy based solely on meeting needs better and cheaper is highly likely to be successful in the long term
In which phase of the BCG Matrix will a business primarily expect competition in the shape of new entrants to the market?
- Dog
- Cash Cow
- Rising Star
- Problem Child
Rising Star
Which two qualitative frameworks identify and assess the key success factors of leading businesses operating in an industry?
- BCG Matrix and PESTE
- BCG Matrix and SWOT
- PESTE and Porters Five Forces
- Porters Five Forces and SWOT
PESTE and Porters Five Forces
According to the BCG Matrix which stage of the business lifecycle has been reached by a business with high market share in a low growth market?
- Dog
- Cash Cow
- Rising Star
- Problem Child
Cash Cow
Which one of the following is best used to summarise the findings of all four qualitative frameworks?
- BCG Matrix
- PESTE
- Porters Five Forces
- SWOT
SWOT
Which qualitative framework evaluates the power of buyers and sellers in a business sector?
- BCG Matrix
- PESTE
- Porters Five Forces
- SWOT
Porters Five Forces
