Untitled Deck

Question 1

What is a Business Strategy?

Answer 1

A long-term plan used by a business to achieve its goals/objectives, manage and use resources effectively, and focus on future growth and success.

Question 2

What are the steps in the Strategic Management Process?

Answer 2

1. Review vision/mission. 2. Analyze environment (SWOT, PESTLE, Porter’s Five Forces). 3. Formulate a strategy (e.g., defensive, retrenchment). 4. Implement the strategy (e.g., action plan). 5. Control/Evaluate the strategy. 6. Take corrective action if needed.

Question 3

What is SWOT Analysis?

Answer 3

A tool to analyze internal and external factors: Strengths (internal positives), Weaknesses (internal negatives), Opportunities (external chances to grow), Threats (external dangers).

Question 4

What are the components of Porter’s Five Forces?

Answer 4

1. Power of Suppliers – Do they control prices? 2. Power of Buyers – Can customers force lower prices? 3. Threat of Competitors – How strong is the competition? 4. Threat of Substitutes – Can customers easily switch to other products? 5. Threat of New Entrants – How easy is it for new businesses to enter?

Question 5

What does PESTLE Analysis evaluate?

Answer 5

Analyzes external environment factors: Political, Economic, Social, Technological, Legal, Environmental.

Question 6

What are Integration Strategies?

Answer 6

1. Forward: Business takes over its distributors. 2. Backward: Takes over its suppliers. 3. Horizontal: Takes over competitors.

Question 7

What are Intensive Strategies?

Answer 7

1. Market Penetration: Sell more existing products in current markets. 2. Market Development: Sell existing products in new markets. 3. Product Development: Create new products for current markets.

Question 8

What are the types of Diversification Strategies?

Answer 8

1. Concentric: New but related products. 2. Horizontal: New unrelated products for same customers. 3. Conglomerate: New products for new customers/industries.

Question 9

What are Defensive Strategies?

Answer 9

1. Divestiture: Sell off unproductive assets. 2. Retrenchment: Cut costs, lay off workers. 3. Liquidation: Close business, sell everything to pay debts.

Question 10

How do you evaluate a strategy?

Answer 10

Check if the strategy works, compare actual vs expected results, analyze deviations and reasons, take corrective action, set dates to monitor progress, make a table of pros and cons, and look at internal and external impacts.

Question 11

What are the advantages of Diversification Strategies?

Answer 11

1. Increases sales, income, and business growth. 2. Improves the business brand and image. 3. Reduces the risk of relying on one product. 4. Expands into new markets and attracts new customers. 5. Gains new technology and innovation. 6. Creates balance during economic changes. 7. Increases production efficiency. 8. Keeps the business relevant in a changing environment. 9. Retains competitive advantage.