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QLDBusiness StudiesQuick questions
Unit 3: Business diversification
Quick questions on Growth and diversification strategies (QCE Business Unit 3)
7short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is the Ansoff matrix?Show answer
The Ansoff matrix maps growth strategies against two questions: is the product existing or new, and is the market existing or new? The four cells rise in risk.
What is organic v inorganic growth?Show answer
Inorganic growth is faster and can buy market share, capability or a new market instantly, but it is riskier (integration problems, culture clash, overpaying) and more costly.
What is risk-return profile?Show answer
The general pattern: strategies that stay close to what the business already knows (penetration, related/organic growth) are lower risk but offer steadier, smaller returns; strategies that move into the unknown (diversification, unrelated/inorganic growth) carry higher risk but can deliver larger returns and spread risk across activities. A business should usually exhaust lower-risk options first and diversify only where it has the capability or capital to manage the risk.
What is plan?Show answer
Run the four quadrants, pick one, justify on risk and capability.
What is q1?Show answer
State the four strategies of the Ansoff matrix and rank them from lowest to highest risk. [3 marks]
What is q2?Show answer
Distinguish between horizontal, vertical and conglomerate integration, giving one purpose of each. [3 marks]
What is q3?Show answer
An established business is choosing between organic growth and acquiring a competitor. Recommend an option and justify it using speed, risk and control. [4 marks]
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