Corporate strategy

Question 1

Corporate strategy

Answer 1

Concerned with the decisions of a parent company about how to add value to its divisions

Question 2

Organisational scope

Answer 2

Range of products offered and markets operating in by an organisation

Question 3

4 components of Ansoff’s growth strategy matrix

Answer 3

• Market penetration
• Product development
• Market development strategy
• Conglomerate diversification

Question 4

2 forms of vertical integration

Answer 4

Backward
Forward

Question 5

Purpose of BCG growth/ share matrix

Answer 5

Companies can prioritise their different businesses by their degree of profitability

Question 6

Purpose GE-McKinsey’s directional policy matrix

Answer 6

Recognise growth opportunities and cut dead end strategies

Question 7

5 areas of a parenting matrix

Answer 7

Heartland
Edge of heartland
Ballast
Value trap
Alien territory

Question 8

(Ansoff growth matrix) Product development risks

Answer 8

Expensive and high risk
Require new strategic capabilities
Project management risks

Question 9

(Ansoff growth matrix) Market penetration risks

Answer 9

Retaliation from competitors
Economic restraints

Question 10

(Ansoff growth matrix) Market development strategy risks

Answer 10

May require new strategic capabilities

Question 11

Related diversification

Answer 11

Development beyond current products and market but within the current scope of the organisation