Business Diversification: IA1 Study Guide Review

Practice flashcards covering Unit 3 Business Diversification topics for the IA1 examination, including business environments, expansion strategies, risk management, and competitive HR and financing strategies.

What are the two major focus areas covered under Unit 3 Topic 1: Competitive markets?

Domestic and global expansion, and competitive strategies: Human resources and finance.

What three aspects of the Business Life Cycle (BLC) Maturity Stage are required for study?

Characteristics, challenges, and strategies.

Which four components constitute the internal business environment?

Owner/s and management, employees, organisational culture, and organisational structure.

Which four groups make up the external operating environment?

Customers, competitors, suppliers, and interest groups.

What framework is used to examine the external macro environment?

STEEPLE analysis.

What are the four criteria used to evaluate business strategies and practices?

Competitiveness, effectiveness, efficiency, and stakeholder satisfaction.

What two approaches to planning for growth are identified under Domestic and Global Expansion?

Vertical and horizontal planning.

What three types of new markets are targeted for expansion?

Domestic, global, and emerging markets.

What four expansion strategies are outlined for business growth?

Niche, innovation, R&D, and new and emerging technologies.

What modes of entry are available for domestic and global expansion?

Importing/exporting, international agents, licensing, strategic alliances, overseas manufacturing (outsourcing, offshoring), and sales subsidiary.

How many steps comprise the risk management process outlined in the study guide?

7 steps.

Which model is specified for contingency planning under risk management?

The PPRR model.

Which motivation theories and theorists must be studied for human resources strategies?

Maslow, Locke, Herzberg, positive psychology, and Seligman.

What four Human Resource strategies are listed for competitive advantage?

Employer of choice, diverse workforces, fostering intrapreneurship, and leaders and managers.

What financing strategies are identified under competitive strategies?

Private equity, going public, capital markets, dividends, and government (gvt) grants and incentives.

What two methods or frameworks are listed for evaluating finance options?

Triple bottom line and cost-benefit analysis.