Unit 8-choosing strategic direction Flashcards Preview

Business A-level > Unit 8-choosing strategic direction > Flashcards

Flashcards in Unit 8-choosing strategic direction Deck (9)
Loading flashcards...
1
Q

What is strategic direction?

A

Deciding which markets to compete in and what products to offer

2
Q

What is Ansoff’s Matrix?

A

A tool that managers can use to get an overview and compare the strategies they could use

3
Q

What are the 4 categories on Ansoff’s’ Matrix?

A

Market penetration - existing, existing
Market development - new market, existing product
Product development - new product, existing market
Diversification - new market, new product

4
Q

Name 6 factors that must be considered before choosing strategic direction

A
How much money the firm has
PEST factors
Competition
Regulation in markets
R and D capacity
Cost of developing new products
The expertise the firm has in new markets
Objectives
The risk involved
Attitude to risk
5
Q

What is strategic positioning?

A

This is how the firm is going to carry out positioning itself in a market

6
Q

What are the two strategies that Porter identified for strategic positioning?

A

Cost leadership and differentiation

7
Q

What is Bowman’s strategic clock?

A

This shows the different strategic positioning options available to firms in terms of price and value for the customer

8
Q

What is competitive advantage?

A

This is when a firm has an edge over its rivals

9
Q

How can a firm sustain competitive advantage?

A

Use legal protection, e.g. Patents
Gain control of suppliers
Careful management of links with customers, e.g. Relationship marketing