WorksheetsTheories of corporate strategy
Total questions: 13
Worksheet time: 8mins
Diversification =
A growth strategy where the business seeks to sell its existing products into new markets - e.g. exporting (from Ansoff matrix)
The strategy of trying to enter new markets with new products (from Ansoff matrix)
A relatively low-risk growth strategy where a business focuses on selling existing products into existing markets (from Ansoff matrix)
A growth strategy where a business aims to introduce new products into existing markets (from Ansoff matrix)
Ansoff's Matrix =
Specific amounts that are allocated to activities in the marketing plan
The proportion of a market revenue or sales volume that is captured by a business or brand
The use of trends established by historical data to make predictions about future values
A strategic model for helping a business analyse the relationship between general strategic direction and suitable marketing strategies
Diseconomies of scale =
Cost advantages that a business can exploit as a result of expanding its scale of production.
Factors which result in higher unit costs as production output reaches too high a level
Project management tool that uses network analysis to help manage complex and time-sensitive operations
Techniques for estimating the likely demand (revenue and volume) for a product in future periods
Mission statement =
How a business attempts to compete successfully in a particular market
A statement of the overall purpose of the business
Putting an new idea or approach into action – the commercial exploitation of ideas
A business which owns operations in more than one country
Strategic objectives are
beliefs or principles
precise measurable outcomes of strategy: sales, profits, share price, customer satisfaction scores and so on
way to move towards vision
generic, undefined and impossible
Digital camera inventor Kodak, continued to promote photo film to world, even though there was strong customer trend towards consumers buying digital cameras. This led to collapse or their core organization.
Yes, they failed to promote new technology. Kodak moved too slowly and failed to keep pace with changing environment.
No, digitalization of cameras and film did not affect Kodak. They made fast strategic decisions and let go of historical influences.
These are quantifiable and measurable targets, that answer the question of "how much, by when".
Tactics
Strategies
Objectives
Strategic Themes
It bridges the gap between "where we are" and "where we want to be".
Goals
Objectives
Tactics
Strategy
One limitation of the Boston Mix is ... ?
A Cash Cow will not be profitable
It is easy to measure market share
Firms cannot invest in Dogs
High market share might not mean high profits
Products in which two categories of the Boston Matrix are most likely to generate positive cash flows?
Stars and Cash Cows
Cash Cows and Dogs
Dogs and Stars
Problem Children and Stars
The Boston Matrix is used to help a firm manage its ... ?
Cash Flow
Product Portfolio
Organisational structure
Share Price
What are the two dimensions that are used to determine the position of a product or brand in the Boston Matrix?
Share price & market share
Selling price & market demand
Market share & Market growth
Sales & Profits
