Theories of Corporate Strategy (3.1.2)

Question 1

What are the four theories of corporate strategy?

Answer 1

-Ansoff’s Matrix
-Porter’s Strategy Mix
-Boston Matrix
-John Kay’s Distinctive capabilities

Question 2

What is a Corporate Strategy?

Answer 2

Long-term plan to help the business achieve its Corporate Objectives

Question 3

What are tactics?

Answer 3

Short-term plans to help the business achieve its strategic objectives

Question 4

Example of Corporate objective, strategy and tactic?

Answer 4

CO- Increase market share by 10%
CS- Market penetration
T- Design a new advertising campaign

Question 5

What does Ansoff’s Matrix focus on? What does it factor and not factor in?

Answer 5

-Focuses on Products and Markets
-Factors in Risk
-Doesn’t factor in differentiation or cost leadership

Question 6

What does Ansoff’s Matrix look like?

Answer 6

Look in word doc

Question 7

What does Porter’s Strategic Mix focus on? What does it factor and not factor in?

Answer 7

-Focuses on Differentiation and Cost leadership
-Factors in Market Size
-Doesn’t factor in Market Development

Question 8

What does Porter’s Strategic Mix look like?

Answer 8

Look in word doc

Question 9

What does the Boston Matrix focus on? What does it factor and not factor in?

Answer 9

-Focuses on Portfolio
-Factors in Product Life Cycle
-Doesn’t factor in how products achieve success, markets or competition

Question 10

What are the four sections of the Boston matrix and what do they mean?

Answer 10

*= High Market Share + Growth Rate
Cash Cows= High MS + Low MGR
?= Low MS + High MGR
Dogs= Low MS +Low MGR

Question 11

What does the Boston Matrix look like?

Answer 11

Look in word doc

Question 12

What does the Boston Matrix have similarities to?

Answer 12

The Product Life cycle

Question 13

What do each parts of the Boston Matrix correspond to in the Product Life Cycle?

Answer 13

?= Introduction
*=Growth
Cash cows= Maturity
Dogs=Decline

Question 14

What does John Kay’s Distinctive Capabilities focus on? What does it factor and not factor in?

Answer 14

-Focuses on Performance
-Looks at Competitive advantage
-Doesn’t factor in how products achieve success, markets or competition

Question 15

What does John Kay’s Distinctive Capabilities look like?

Answer 15

Look in word doc

Question 16

What does the Architecture section mean?

Answer 16

The relationship between management and employees and external stakeholders

Question 17

What does the Reputation section mean?

Answer 17

The brand image of the business and its products

Question 18

What does the Innovation section mean?

Answer 18

The ability to use tech to create new products or raise productivity