Practice Flashcards
Flip to reveal answersFive steps to apply Ansoff in exams?
Track your progress — Sign up free to save your progress and get smart review reminders based on spaced repetition.
All 20 Flashcards — Applying the Ansoff matrix
Sign up free to track progress and get spaced-repetition review schedules.
Question
Five steps to apply Ansoff in exams?
Answer
1) ID product (existing/new) 2) ID market (existing/new) 3) Place in quadrant 4) Explain risk 5) Evaluate suitability.
💡 Hint
Product → Market → Quadrant → Risk → Evaluate
Question
Worked example: food company buys same-snack company abroad. Quadrant?
Answer
Market development — existing product (same snacks), new market (different country).
💡 Hint
Market development
Question
Name three limitations of the Ansoff matrix
Answer
Only considers products/markets (ignores finance, competition); oversimplifies; doesn't show HOW to implement.
💡 Hint
Products only + simple + no 'how'
Question
Apply Ansoff: identify product/market → place in ___ → explain ___
Answer
Quadrant; risk level.
💡 Hint
Quadrant + risk
Question
Ansoff assumes risk increases equally, but ___
Answer
Some diversifications are less risky than others — it depends on context.
💡 Hint
Context matters
Question
The takeover gives instant ___ to the new market, reducing risk vs ___
Answer
Access; starting from scratch.
💡 Hint
Access vs starting fresh
Question
Exam questions want you to ___ Ansoff, not just ___
Answer
Apply it to the specific scenario; describe it.
💡 Hint
Apply, not describe
Question
Always link to the specific ___ — don't just describe the model
Answer
Business in the case study.
💡 Hint
Business
Question
Real decisions are rarely neatly in ___
Answer
One quadrant — reality is more complex than a 2×2 grid.
💡 Hint
One quadrant
Question
Limitations: oversimplifies, ignores ___, no implementation guide
Answer
Finance and competition.
💡 Hint
Finance + competition
Question
Always explain BOTH the knowledge (which ___) AND the application (why ___)
Answer
Quadrant; it fits this specific business.
💡 Hint
Quadrant + why it fits
Question
Step 1: Is the product ___?
Answer
Existing or new — what is the business selling?
💡 Hint
Existing or new
Question
Risk of market development = medium because ___
Answer
Product is proven but the new market is unfamiliar — customer preferences may differ.
💡 Hint
Proven product, unknown market
Question
Ansoff is best used alongside ___
Answer
SWOT, STEEPLE and financial analysis — it's a starting point, not the whole answer.
💡 Hint
Other tools
Question
Best used alongside ___, ___ and financial data
Answer
SWOT and STEEPLE.
💡 Hint
SWOT + STEEPLE
Question
Step 2: Is the market ___?
Answer
Existing or new — who are they selling to?
💡 Hint
Existing or new
Question
Quick: New product + existing market = ___
Answer
Product development.
💡 Hint
Product development
Question
Ansoff doesn't show ___
Answer
How to implement the strategy — just identifies which type of growth it is.
💡 Hint
Implementation
Question
Step 5: Evaluate whether the strategy ___
Answer
Suits this specific business — consider its strengths, resources and risk tolerance.
💡 Hint
Suits THIS business
Question
A takeover can reduce market development risk by ___
Answer
Providing instant access, local knowledge and existing customer base in the new market.
💡 Hint
Instant access + local knowledge
Read the notes
Full study notes for Applying the Ansoff matrix
Topic 6.2 hub
Ansoff matrix
More from Topic 6.2
All flashcards in this topic
BM exam skills
Paper structures & tips
Track your progress with spaced repetition
Sign up free — Aimnova tells you exactly which cards to review and when, so you remember everything before your IB exam.
Start Free