What do AQA sections 3.7 to 3.10 cover?

These sections pull the whole course together into strategy. They cover analysing the strategic position (core competences, financial data and Porter's five forces), SWOT analysis, choosing strategic direction with Porter's three generic strategies, the Ansoff matrix of growth strategies, strategic methods and growth (organic and external growth, mergers and takeovers, economies and diseconomies of scale, retrenchment and globalisation), and managing strategic change including culture, resistance and contingency planning.

What are Porter's five forces and generic strategies?

Porter's five forces assess the competitive pressure in an industry: competitive rivalry, the threat of new entrants, the threat of substitutes, and the bargaining power of buyers and of suppliers. His three generic strategies are routes to competitive advantage: cost leadership (lowest-cost producer), differentiation (distinctive product at a premium) and focus (a narrow niche). He warned firms not to be stuck in the middle.

What is the Ansoff matrix?

The Ansoff matrix plots growth strategies by product (existing or new) and market (existing or new). The four strategies are market penetration (existing products, existing markets, lowest risk), market development (existing products, new markets), product development (new products, existing markets) and diversification (new products, new markets, highest risk). Risk rises as a firm moves away from what it knows.

What is the difference between economies and diseconomies of scale?

Economies of scale are the cost advantages of producing on a larger scale, such as purchasing, technical, financial and managerial economies, which lower unit costs as output rises. Diseconomies of scale arise when a firm grows too large and unit costs start to rise again, usually through poor communication, coordination and motivation. So bigger is not always cheaper.

How should I revise sections 3.7 to 3.10?

Learn the strategic models precisely (the five forces, the generic strategies, SWOT, the Ansoff matrix, economies of scale) and be ready to apply them to a single case study, since Paper 3 is built around one. Practise high-mark evaluative answers that recommend a strategy and justify it with a balanced, context-driven conclusion, which is exactly where the marks are concentrated.

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AQA A-Level Business 3.7-3.10 Strategic position and direction: analysis, Porter, Ansoff, growth and change

A deep-dive AQA A-Level Business guide to sections 3.7 to 3.10 Strategic position and direction. Covers analysing the strategic position with core competences and Porter's five forces, SWOT analysis, choosing strategic direction with Porter's generic strategies, the Ansoff matrix, strategic methods and growth including economies of scale and globalisation, and managing strategic change.

Generated by Claude Opus 4.815 min read3.7Updated 2026-06-02

Reviewed by: AI editorial process; not yet individually human-reviewed

Jump to a section

What sections 3.7 to 3.10 actually demand
Analysing the position: SWOT and Porter
Choosing direction: Porter and Ansoff
Methods, growth and change
How this module is examined
Check your knowledge

What sections 3.7 to 3.10 actually demand

The strategic sections pull the entire course together. They ask where a business stands, where it should head, how it should get there, and how it should manage the change involved. On this site sections 3.7 to 3.10 are grouped into one module so the strategy tools sit together. These topics dominate Paper 3, the single case study, where the highest-mark evaluative answers live, so application and judgement matter far more than recall.

This guide walks through the six dot points of the module, then sets out the exam patterns AQA repeats.

Analysing the position: SWOT and Porter

A firm analyses its strategic position internally (core competences, resources, financial data) and externally with Porter's five forces (competitive rivalry, threat of new entrants, threat of substitutes, and the bargaining power of buyers and suppliers). SWOT analysis summarises this in four boxes: internal Strengths and Weaknesses, external Opportunities and Threats. SWOT informs strategic choice but is a subjective snapshot that does not decide strategy on its own.

Choosing direction: Porter and Ansoff

Choosing strategic direction means deciding which markets and products to compete in. Porter's generic strategies offer three routes to advantage: cost leadership, differentiation and focus, with a warning against being stuck in the middle. The Ansoff matrix plots growth strategies by product and market: market penetration, market development, product development and diversification, with risk rising as the firm moves away from what it knows.

Methods, growth and change

Strategic methods and growth cover organic and external growth (mergers and takeovers), economies and diseconomies of scale, retrenchment, and the impact of globalisation and multinationals. Managing strategic change examines the causes and effects of change, overcoming resistance, the role of organisational culture, and scenario and contingency planning to build resilience.

How this module is examined

A typical AQA profile for strategy:

Definitions and short answers. The five forces, the generic strategies, the Ansoff strategies, and economies of scale.
Application. Using a model to analyse the named business in the case study.
Analysis. How a threat of new entrants affects profitability, or why diversification is risky.
Evaluation. Recommending a strategic direction or growth method with a justified, balanced conclusion, the heart of Paper 3.

Check your knowledge

A mix of recall, analysis and evaluation questions covering sections 3.7 to 3.10. Attempt them under timed conditions, then check against the solutions.

State the five forces in Porter's model. (3 marks)
State Porter's three generic strategies. (3 marks)
State the four strategies of the Ansoff matrix. (2 marks)
Which two SWOT headings refer to internal factors? (2 marks)
Define economies of scale. (2 marks)
Explain what is meant by being "stuck in the middle". (4 marks)
Explain why diversification is the riskiest Ansoff strategy. (4 marks)
Explain one way a manager could reduce resistance to change. (4 marks)

Solutions

Q1: Competitive rivalry, threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers.
Q2: Cost leadership, differentiation, focus.
Q3: Market penetration, market development, product development, diversification.
Q4: Strengths and weaknesses.
Q5: The fall in unit (average) costs as a firm increases its scale of output.
Q6: A firm that is neither the lowest-cost producer nor clearly differentiated, so it is undercut by cost leaders and out-classed by differentiators and struggles to build advantage.
Q7: Both the product and the market are new to the firm, so it has no experience of either, making failure more likely than for the other strategies.
Q8: Any one of: clear communication of the case for change, involvement and consultation of staff, training and support, phased introduction, or strong leadership with a clear vision.

Sources & how we know this

AQA A-level Business (7132) specification — AQA (2015)