Unit 8-choosing strategic direction

Question 1

what does the term ‘strategic direction’ refer to?

Answer 1

a course of action or plan that is hoped will lead to the achievement of long-term goals

Question 2

what is the ansoff matrix?

Answer 2

a strategic or marketing planning tool that links a business’s marketing strategy with its general strategic direction.
-market penetration (existing products, existing markets)
-market development (existing products, new market)
-new product development (new products, existing market)
-diversification (new products, new market)

Question 3

what factors are likely to have an impact on the choice of strategic direction?

Answer 3

-objectives and attitude to risk
-cost
-barriers to entry
-competitor’s actions
-ethics involved

Question 4

what are porter’s generic strategies?

Answer 4

-low cost strategy
-differentiation strategy
-focus strategy

Question 5

what are the 8 sections of Bowman’s strategic clock?

Answer 5

1: low price/low added value
2:low price
3: hybrid
4: differentiation
5: focused differentiation
6: increased price/ standard product
7: high price/ low value
8: low value/ standard price

Question 6

what are some influences on the choice of a positioning strategy?

Answer 6

-the business itself
-the competition
-customers
-external environment

Question 7

what is the message that comes from Bowman’s clock and Porter’s generic strategies?

Answer 7

that any business needs to treat positioning seriously, ensuring that the strategy chosen fits clearly with its mission and objectives and with how consumers perceive the organisation and their expectations of it

Question 8

what are the benefits of having a competitive advantage?

Answer 8

-sales
-brand loyalty
-profit
-shareholder value

Question 9

what are the difficulties of maintaining a competitive advantage?

Answer 9

-developments in technology
-investment
-HR
-financial constraints
-short-termism