Strategy

Question 1

Define Ansoff Theory

Answer 1

Relates to how a company looking for growth can choose their marketing strategy

Question 2

What are the four Ansoff strategies?

Answer 2

Market penetration
Product or service development
Market development
Diversification

Question 3

Define market penetration?

Answer 3

AT: When a business markets in an existing market with an existing product/service
Not much MR needed
Info on competitors and customers

Question 4

Define product or service development

Answer 4

AT: When a business markets into an existing market with a new product/service
May require new skills
Products need to be different
R and D neceserry

Question 5

Define market development

Answer 5

AT: When a business markets into a new market with an existing product/service
Ways to do it include:
new geographical markets
New usp
Different pricing policies

Question 6

Define Diversification

Answer 6

When a business markets into a new market with a new product/service

Risky because their is no experience

Question 7

Define Mission Statement

Answer 7

A short way of a business expressing their main intent

Question 8

What elements should a mission statement have

Answer 8

Memorable
Inspiring
Timeless

Question 9

Define coorporate objectives

Answer 9

Targets that relate to the business as a whole

Question 10

What elements should coorporate objectives have?

Answer 10

Should flow from the vision statement
Relates to the business
Usually set by senior management

Question 11

Mission statements should be

Answer 11

Specific
Measureable
Achieveable
Realistic
Time related

Question 12

What are some limitations of a mission statement?

Answer 12

Can be unrealistic
Can be a waste of time
Legal issues
Leads to conflicts

Question 13

Define competitive advantage

Answer 13

An advantage over competitors gained by offering consumers greater value, either by means of lower prices or greater benefits

Question 14

What is porters generic strategies?

Answer 14

A strategy to create a competitive advantage

Question 15

What are the four Porters Generic Strategies?

Answer 15

Cost leadership
Narrow
Differentiation leadership
Differentiation focus

Question 16

What is cost leadership?

Answer 16

PGS: When selling prices are broadly similar, the lowest cost producer will enjoy the highest profits

Effective use of technology
Lean production methods

Question 17

What is cost focus?

Answer 17

PGS: When a lower cost advantage is seeken in a small number of market segments

E.G. Tesco value ketchup

Question 18

What is differentiation focus?

Answer 18

PGS: Classic niche market strategy

Business aims to differentiate within just one or a few number of goods

Question 19

What is differentiation leadership?

Answer 19

PGS: business targets larger markets and aims to achieve comp adv all over the market
Pp products

Question 20

What is the boston matrix?

Answer 20

A marketing planning took which helps managers have a good product portfolio

Question 21

What are the four elements of the boston matrix?

Answer 21

cash cow
Dog
Star
Question mark

Question 22

What is the star in the BMX?

Answer 22

High market share and high growth

E.G. Iphone X

Question 23

What is the ? Mark in the BMX?

Answer 23

High market growth low share

E.G. Iphone 11

Question 24

What is the cash cow in the BMX?

Answer 24

High market share but low market growth

Maturity

Question 25

What is the Dog in the BMX?

Answer 25

Low market share and growth | Decline

Question 26

What are some limitations of the BMX?

Answer 26

Doesnt support all business models Market isn’t defined High ms doesnt always mean high profits

Question 27

How can we create value?

Answer 27

Architecture Reputation Innovation

Question 28

What is a strategy?

Answer 28

Long-term direction of the business What the business does the meet aims and objectives Proactive

Question 29

What is tactics?

Answer 29

Short or medium term decisions How the business implement a strategy Reactive

Question 30

What do we use for external influences?

Answer 30

PESTEL

Question 31

What does PESTEL stand for?

Answer 31

``` Political Economical Social Technological Environmental Legal ```

Question 32

How does politics affect external influences?

Answer 32

Businesses should check how they may be affected by a change in govt Govt intervention policies Influence of the EU and Brexit

Question 33

How those economics affect external influences?

Answer 33

A business should focus on the economy Look at inflation Check unemployment rates SOTEC

Question 34

How does social affect external influences?

Answer 34

Demographics: Segments Cultural mix Social trends

Question 35

How does technological affect external influences?

Answer 35

``` Automation Innovation R and D in the industry New computer systems Trading online ```

Question 36

How does law affect external influences?

Answer 36

Health and safety at work Data protection No discrimination

Question 37

How does environmental affect external influences?

Answer 37

Weather Wildlife Scarce resources

Question 38

What are porters 5 forces?

Answer 38

Theory that 5 forces determine profitability

Question 39

What are Porters 5 forces?

Answer 39

``` Bargaining of suppliers Bargaining of customers New entrants Threats of subsides Competition ```