2

Question 1

Components of a corporate strategy

Answer 1

1. Define company vision and mission
2. Set company objectives (convert strategic mission into specific performance targets. Should be SMART. E.g. maximise profits.
3. Design the business (business portfolio analysis - specific, tailored, market based, SWOT, portfolio model (BCG and GE), value based planning).
4. Make SBU/functional plans. Obj strategies and tactics need to be set for SBUs.

Question 2

BCG

Answer 2

Market growth on y axis, relative market share on x axis.

Star, cash cow, q mark, dog

Kodak: film camera = cash cow. Digital camera came out. Therefore have something to support just in case CC dies out

Question 3

GE

Answer 3

Industry attractiveness (vertical) 
Business strength (horizontal)

Question 4

SBU

Answer 4

Homogenous set of markets to serve wth limited number of technologies, unique set of product marketing s, control over factors necessary for successful performance, responsible for their own profitability

Question 5

Sources of synergy

Answer 5

Brand (virgin - space ship), resource, knowledge/intellectual