Flashcards on Strategic Planning Matrices and Frameworks
Strategic Planning Matrices and Frameworks for Students
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Corporate Strategy
34 cards
Card 1
Question: What should firms in Quadrant II (rapid market growth but weak competitive position) evaluate about their approach to the marketplace?
Answer: They should seriously evaluate why their current approach is ineffective and determine how to change to improve competitiveness, considering intensive
Card 2
Question: What growth strategy is usually the first option for Quadrant II firms and why?
Answer: An intensive strategy, because they are in a rapid-market-growth industry and should try to grow within the industry before considering integrative or
Card 3
Question: When might horizontal integration be desirable for a Quadrant II firm?
Answer: When the firm lacks a distinctive competence or competitive advantage, horizontal integration can be a desirable alternative to build competitiveness.
Card 4
Question: What are the last-resort options for Quadrant II firms and what can divestiture provide?
Answer: Last-resort options are divestiture or liquidation. Divestiture can provide funds to acquire other businesses or to buy back shares of stock.
Card 5
Question: What characterizes Quadrant III organizations in terms of industry growth and competitive position?
Answer: Quadrant III organizations compete in slow-growth industries and have weak competitive positions.
Card 6
Question: What initial strategy should Quadrant III firms pursue to avoid further decline?
Answer: They should pursue extensive cost and asset reduction (retrenchment) first.
Card 7
Question: What alternative strategy can Quadrant III firms use if retrenchment is insufficient?
Answer: They can shift resources away from the current business into different areas (diversify). If that fails, divestiture or liquidation are final options.
Card 8
Question: What describes Quadrant IV businesses regarding competitive position and industry growth?
Answer: Quadrant IV businesses have a strong competitive position but operate in a slow-growth industry.
Card 9
Question: What strategic options are available to Quadrant IV firms given their strong position and cash flows?
Answer: They can launch diversified programs into more promising growth areas (related or unrelated diversification), pursue joint ventures, and use high cash
Card 10
Question: What must still be done even when using the Grand Strategy Matrix to generate strategies?
Answer: Alternative strategies must be stated in specific, actionable, and divisional terms to the extent possible.