Business Studies Unit 8: Strategic Direction

A series of flashcards summarizing key concepts and strategies from Business Studies Unit 8, focusing on strategic direction and competitive advantage.

What does strategic direction describe in a business context?

It describes how a business plans to reach its long-term goals.

Who was Igor Ansoff?

A business professor known for his theory on how companies can choose growth marketing strategies.

What are the four strategies in the Ansoff Matrix?

Market penetration, market development, new product development, and diversification.

What is market penetration?

Increasing sales to the existing market, focusing on the same customers.

What is market development in the context of the Ansoff Matrix?

Taking existing products and finding new markets for them.

What does new product development entail?

Researching and developing new products to sell to existing customers.

What is diversification in business strategy?

Developing completely new products for completely new markets.

What are Porter's generic strategies?

Strategies for achieving competitive advantages through low costs or differentiation.

What is the focus of a low-cost strategy?

To become the lowest cost operator by achieving economies of scale.

What characterizes a differentiation strategy?

Offering a product that is significantly different from competitors, valued by customers.

What is strategic positioning?

The process of choosing strategies that allow a business to differentiate itself from competitors.

What does SWOT stand for?

Strengths, Weaknesses, Opportunities, Threats.

What are PESTLE factors?

Political, Economic, Social, Technological, Legal, and Environmental factors impacting business strategy.

What is competitive advantage?

Unique characteristics of a business that differentiate it from competitors and enable profitability.

What challenges can arise in maintaining a competitive advantage?

Negative publicity, market competition, and changes in customer perception.

Why is customer service critical in maintaining competitive advantage?

Bad reviews can significantly impact a business's reputation, especially in hospitality and entertainment.