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Business Strategy
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1
Question
What is business strategy?
Answer
a long-term plan of action for the whole organisation, to achieve a particular goal.
2
Question
What is the primary purpose of a business strategy?
Page 3
Answer
To provide integration, direction, and focus for the whole organization to achieve long-term goals.
3
Question
What big questions does business strategy address?
Page 3
Answer
Which markets and products to enter, and whether to expand into new areas like retailing from manufacturing.
4
Question
What factors influence the development of a business strategy?
Page 4
Answer
Strengths of the business, resources available, competitive environment, and objectives.
5
Question
What categorized as resources?
Answer
People and money
6
Question
What is strategic management?
Page 5
Answer
The process of setting long-term goals and implementing decisions to achieve them.
7
Question
What are the three key stages of strategic management?
Page 6
Answer
Strategic analysis, strategic choice, and strategic implementation.
8
Question
What does strategic analysis involve?
Page 6
Answer
Analyse the company's current position relative to its market, competitors, and external environment.
9
Question
What is the role of strategic choice in management?
Page 6
Answer
Taking long-term decisions that push the business toward set objectives.
10
Question
What is the role of strategic implementation?
Answer
Planning, allocating, and controlling resources to support the chosen strategy
11
Question
Why is strategic management necessary for a business?
Page 7
Answer
To plan for the future, respond to changing environments, and make effective long-term decisions based on objectives.
12
Question
How do strategic decisions differ from tactical ones in terms of time frame?
Page 8
Answer
Strategic decisions are long-term; tactical decisions are short to medium term.
13
Question
Who typically makes strategic decisions?
Page 8
Answer
Directors and/or senior managers.
14
Question
What makes strategic decisions difficult to reverse?
Page 8
Answer
Departments commit resources to them.
15
Question
What are some approaches to developing business strategy?
Page 9
Answer
Blue Ocean Strategy, SWOT analysis, PEST analysis, Porter's five forces, core competencies, Ansoff matrix, force-field analysis, decision trees.
16
Question
What is Blue Ocean Strategy?
Page 13
Answer
A marketing approach to create uncontested markets rather than competing in saturated ones.
17
Question
What is value innovation in Blue Ocean Strategy?
Page 14
Answer
Simultaneously achieving differentiation and low cost by focusing on what consumers truly value.
18
Question
What does redrawing industry boundaries mean in Blue Ocean Strategy?
Page 14
Answer
Seeking unexplored growing markets to reduce risks, increase profits, and serve customers innovatively.
19
Question
What is the first action in the Four Actions Framework for Blue Ocean?
Page 15
Answer
Raise factors like quality or customer service above industry standards.
20
Question
What is the second action in the Four Actions Framework?
Page 15
Answer
Reduce factors like costly advertising that result from competition.
21
Question
What is the third action in the Four Actions Framework?
Page 15
Answer
Eliminate factors used to compete against rivals.
22
Question
What is the fourth action in the Four Actions Framework?
Page 15
Answer
Create factors the industry has never offered before.
23
Question
How does Red Ocean Strategy differ from Blue Ocean Strategy?
Page 19
Answer
Red Ocean competes in existing markets by out-competing rivals; Blue Ocean creates uncontested markets making competition irrelevant.
24
Question
What is a benefit of Blue Ocean Strategy?
Page 25
Answer
No or minimum competition, leading to first-mover advantages like maximum market share and profit; price flexibility; innovation & creativity
25
Question
What is a drawback of Blue Ocean Strategy?
Page 26
Answer
Difficulty in finding the right blue ocean and risks of market uncertainty.
26
Question
What is scenario planning in strategic management?
Page 28
Answer
Identifying possible future scenarios based on key risks like social, economic, technological, or competition factors, and developing strategies for each.
27
Question
What is a benefit of scenario planning?
Page 29
Answer
Forces managers to consider risks, develop flexible strategies, and adopt adaptable approaches.
28
Question
What is a limitation of scenario planning?
Page 29
Answer
Managers may consider too many uncertainties, leading to confusion, or focus on one scenario, ignoring others.
29
Question
What does SWOT analysis evaluate?
Page 32
Answer
Internal strengths and weaknesses, and external opportunities and threats.
30
Question
What are examples of strengths in SWOT?
Page 33
Answer
Experienced management, product patents, loyal workforce, specialist marketing expertise.