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StrategyMatrix / portfolioAnsoff’s matrix and product market gridHow can ansoff’s matrix and product market grid support strategic choice or positioning?The appropriate route to corporate growth depends on the risk the organisation can accept, its current portfolio of products and markets, and whether it intends to build around existing or new offers and customers. Systematic planning begins with a clear view of the distance between today’s position and the desired future one. The product/market grid and the later Ansoff cube help managers describe that gap and identify possible growth directions.IntermediateStrategicFigures
OperationsFramework / modelSix sigmaHow can six sigma support strategic choice or positioning?Use six sigma when an organisation needs to identify the causes of poor operational performance, improve process reliability and translate fewer defects into customer or financial value. A project should have a defined business case, but the claim that management should reject any initiative without at least $175 000 in savings is a legacy rule of thumb, not a universal threshold. Scale the expected benefit to the process, organisation and risk involved.AccessibleStrategicFigures
FinanceFramework / modelCapital asset pricing model (CAPM)How can capital asset pricing model (capm) support strategic choice or positioning?Use CAPM when a decision requires a transparent estimate of the return appropriate to market risk. Owners and external investors can use it to assess whether a prospective equity return compensates for that risk. Corporate finance teams use it to estimate the cost of equity, while banks, pension funds and other institutional investors use its logic in portfolio and valuation work.AccessibleStrategicFigures