Theories

Question 1

Ansoff Matrix Definition

Answer 1

New or existing products in new or existing markets, suggested growth strategies

Question 2

Ansoff Matrix Diagram

Answer 2

Question 3

Balance Scorecard Definition

Answer 3

Help firms measure business performance with both financial and non-financial methods

Question 4

Balance Scorecard Diagram

Answer 4

Question 5

Bartlett and Ghoshal Model of International Strategy Definition

Answer 5

The strategic options for businesses wanting to manage their international operations based on two pressures: pressure of local responsibility and global intergration.

Question 6

Bartlett and Ghoshal Model of Internation Strategy Diagram

Answer 6

Question 7

Key Features of a Global Strategy

Answer 7

1. Highly centralised
2. Focus on efficiency
3. Little sharing of expertise locally
4. Standardised products

Question 8

Key Features of an Transnational Strategy

Answer 8

1. Complex to achieve
2. Aims to maximise local responsiveness but also gain benefits from global intergration
   
   1. Wide sharing of expertise

Question 9

Key Features of an Internation Strategy

Answer 9

1. Aims to achieve efficiency by focusing on domestic activities
2. Largely managed centrally
3. Relatively little adaption of products to local needs

Question 10

Key Features of a Multi-Domestic Strategy

Answer 10

1. Aims to maximise benefits of meeting local needs through customisation
2. Decision-making decentralised
3. Local business treated as a seperate business
4. Strategies for each country

Question 11

Blake Mouton Grid Definition

Answer 11

Map of different managerial styles

Question 12

Blake Mouton Diagram

Answer 12

Question 13

Boston Matrix Definition

Answer 13

A model which helps businesses analyse their portfolio or businesses and brands.

Question 14

Boston Matrix Diagram

Answer 14

Question 15

What are Stars in Boston Matrix

Answer 15

1. High growth products
2. Need heavy investment
3. Become cash cows
4. Competitive

Question 16

What are cash cows?

Answer 16

1. Low-growth products
2. Mature successful products
3. Little investment
4. Managed for continued profit

Question 17

What are question marks?

Answer 17

1. Low market share operating in high growth markets
2. Have potential but need huge amounts of investment
3. Managers choose which have potential

Question 18

What are dogs?

Answer 18

1. Low market share in unattractive markets
2. May break-even
3. Not worth investing in
4. Sold or closed

Question 19

Bowmans Clock Definition

Answer 19

Explores options for strategic positioning, a business has a variety of options to position a product

Question 20

Bowmans Clock Diagram

Answer 20

Question 21

Bowman’s Clock Position 1

Answer 21

Low Price, Low Added Value

• Not competitive for a business
• No product differentiation
• Bargain strategy

Question 22

Bowman’s Clock Position 2

Answer 22

Low Price

• Low cost-leaders in a market
• Cost minimisation is required
• Profit margins are low but high output can still generate high profits
• Price wars

Question 23

Bowman’s Clock Position 3

Answer 23

Hybrid

• Low price, product differentiation
• Persuade customers that reasonable price can have good added value
• Can be very effective if added value is consistent

Question 24

Bowman’s Clock Position 4

Answer 24

Differentiation

• Highest level of perceived added value
• Branding is key
• Customer loyalty can make this the most effective

Question 25

Bowman's Clock Position 5

Answer 25

Focus Differentiation * Highest price with high added value * Luxury brands * Highly targetting segmentation, promotion and distribution * Can lead to very high profit margins * Sustainable long term strategy

Question 26

Bowman's Clock Position 6

Answer 26

Risky High Margins * Doomed to failure * High prices with no extra percieved added value * Long term is an uncompetitive strategy * Customers will find a cheaper alternative

Question 27

Bowman's Clock Position 7

Answer 27

Monopoly Pricing * Only business in market * No alternatives so high pricing * Regulation stops this

Question 28

Bowman's Clock Position 8

Answer 28

Loss of Market Share * Recipie for failure in a competitive market * Standard price with low added value * Much better alternatives for the same price

Question 29

Carroll's CSR Pyramid Definition

Answer 29

Simple framework that helps argue how and why organisations should meet their socail resposibilities

Question 30

Carroll's CSR Pyramid Diagram

Answer 30

Question 31

Strengths of CSR Pyramid

Answer 31

* Easy to understand * Simple message * Emphasises importance of profit

Question 32

Weaknesses of CRS Pyramid

Answer 32

* Too simplistic * Should ethics be at the top * Businesses don't always claim what they do

Question 33

Core Competetencies Definition

Answer 33

Capabilities critical to businesses achieving competitive advantages

Question 34

3 Factors for Core Competencies

Answer 34

1. Provides potential access to a wide variety of markets 2. Makes a significant contribution to the perceived customer benefits of the end product 3. Difficult for competitiors to imitate

Question 35

Economies of Scale

Answer 35

When costs fall as output rises

Question 36

Diseconomies of Scale

Answer 36

When businesses grow too large that their unit costs increase

Question 37

Reasons for Diseconomies of Scale

Answer 37

* **Lack of Motivation**, employees feel more isloated in a large business. Harder for managers to stay in constant contact and build up relationships * **Poor Communication,** Chain of command becomes harder to communicate through, wide span of control and hierarchy mean messages can get mixed up. * **Loss of Direction and Co-ordination,** Hard to ensure all workers are working to the same goal, harder to supervise. More delegation means less control

Question 38

Types of EOS

Answer 38

* **Technical** as businesses can afford to invest in specialist capital. * **Specialisation of the workforce**, Split complex production processes into smaller tasks to boost productivity. * **Marketing**, spread large advertising and marketing budget over a large output (bulk buying)