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Theories of corporate
strategy
“I couldn’t repair your brakes, so I
made your horn louder”
Syllabus
Candidates should be able to:
• define corporate strategy, give examples of factors
influencing strategy
• Assess Ansoff’s matrix and Porter’s strategic matrix
• Describe the aim of portfolio analysis
• Evaluate how a business may achieve competitive
advantage through distinctive capabilities
• Assess the effect of strategic and tactical decisions
on human, physical and financial resources
Definitions
A corporate strategy is
The _______ in which an
_______________
intends to achieve its
___________ objectives.
corporate, organisation,
way,
What factors influence corporate strategy?
Research - Ansoff’s Matrix
Research - Porter’s strategic matrix
What is the aim of portfolio analysis?
Portfolio analysis involves analysing the
________________ of a businesses’
___________ range to ensure that a business
uses its ______________ most effectively.
elements, product, resources
Competitive advantage through distinctive
capabilities
• On your syllabus it says you must “Evaluate
how a business may achieve competitive
advantage through distinctive capabilities”
• What does this mean? Research examples.
Effect of decision on resources
• What resources do businesses possess?
• Why might strategic or tactical decisions
affect: (a) human resources, (b) physical
resources (c) financial resources?