Strategic Options Flashcards Preview

BST > Strategic Options > Flashcards

Flashcards in Strategic Options Deck (20)
Loading flashcards...
1
Q

Gap Analysis

A

comparison between co objective and expected performance

2
Q

Three types of strategic options

A

~ Competitive strategy
~ Product/market strategy
~ Development strategy

3
Q

Competitive strategy

A

firm seeks to win customers and secure profit against rivals (using generic strategies)

4
Q

Product/market strategy

A

what products to offer and markets to serve (using Ansoff + product-market growth matrix)

5
Q

Development strategy

A

how to gain access to chosen products and markets

6
Q

Generic strategies

A

~ cost leadership
~ cost focus
~ differentiation
~ differentiation focus

7
Q

Cost Leadership

A

~ low cost

~ broad competitive scope

8
Q

Cost Focus

A

~ low cost

~ narrow competitive scope

9
Q

Differentiation

A

~ differentiation

~ broad competitive scope

10
Q

Differentiation Focus

A

~ differentiation

~ narrow competitive scope

11
Q

Ansoff’s Product-Market Growth Matrix

A

~ market penetration
~ product development
~ market development
~ diversification (related or unrelated)

12
Q

Market penetration

A

Current market

Current product

13
Q

Product development

A

Current market

New product

14
Q

Market development

A

New market

Current product

15
Q

Diversification

A

New market
New product
~ related or unrelated

16
Q

Related diversification

A

vertical or horizontal integration

e.g. buy similar companies or suppliers

17
Q

Unrelated diversification

A

conglomerate diversification

e.g. successful business buys football club

18
Q

Withdrawal may be appropriate if…

A

~ products disappear at end of life cycle
~ weed out underperforming products
~ sale of sub/asset to raise finance

19
Q

Exit barriers to withdrawal are…

A

~ Cost barriers: redundancy, termination penalties (leases)
~ government attitudes
~ managers hate to admit failure
~ people might wrongly assume carrying on is a low risk strategy

20
Q

Reasons to divest and dismerge

A

~ free up management time
~ sell of sub at a profit
~ raise funds
~ satisfy investors