Syllabus: OCR - A and AS Level Business
Module: Business Objectives and Strategy
Lesson: Models of Strategic Choice

Introduction

The “Models of Strategic Choice” section within the OCR A Level Business specification introduces students to analytical frameworks that support effective decision-making at the strategic level. These models form part of the broader unit on “Business Objectives and Strategy” and are key in developing higher-order thinking skills like analysis, evaluation, and judgement—core components of A Level assessment.

For teachers, this topic offers a bridge between theoretical understanding and real-world decision-making, aligning with OCR’s emphasis on applying knowledge in contemporary business contexts. It also lays a strong foundation for exam success, especially in extended response questions that require weighing strategic alternatives.

Key Concepts

The OCR A Level Business syllabus outlines the following models under “Models of Strategic Choice”:

• Ansoff’s Matrix: A tool for assessing growth strategies via existing/new products and markets.

• Porter’s Generic Strategies: Framework to choose between cost leadership, differentiation, or focus strategy.

• Investment Appraisal Techniques:

  • Payback period

  • Average rate of return (ARR)

  • Net present value (NPV)

• Decision Trees: A graphical method to assess the risks and rewards of various strategic paths.

• Critical Path Analysis (CPA): Used to identify the sequence of critical and non-critical tasks in projects, helping to optimise time and resources.

Each of these models requires students to apply quantitative and qualitative analysis, often drawing on case-based scenarios and supporting calculations.

Real-World Relevance

These strategic models are not just textbook theories—they’re widely used across industries:

• Ansoff’s Matrix was famously applied by Netflix when expanding from DVD rentals to streaming (product development), then globally (market development).

• Porter’s Strategies can be seen in Aldi’s focus on cost leadership versus Apple’s differentiation strategy.

• Investment Appraisal tools are used by firms evaluating capital projects—like whether to automate production or invest in a new factory.

• Decision Trees are embedded in risk analysis within sectors like pharmaceuticals or retail expansion.

• Critical Path Analysis is key in project management fields such as construction, tech deployment, or event planning.

Using these examples helps students understand that strategic decision-making is grounded in frameworks that support, rather than replace, managerial judgement.

How It’s Assessed

Students will encounter these models across different exam styles in OCR A Level Business:

• Calculation tasks: Especially for investment appraisal or CPA. Accuracy and working must be shown.

• Case study analysis: Apply one or more models to a given business situation and evaluate the best course of action.

• Extended essays: 20-mark questions may ask students to assess the usefulness or limitations of a model in a specific scenario.

Key command words include:

• Analyse – build logical chains of reasoning using the model

• Evaluate – consider the strengths and weaknesses of using the model

• Recommend – justify a decision using quantitative and qualitative evidence.

Enterprise Skills Integration

This topic is tailor-made for building real-world thinking and employability:

• Problem-solving: Students weigh strategic risks and rewards under uncertainty.

• Decision-making: Frameworks like decision trees and investment appraisal require clarity under pressure.

• Numeracy and commercial awareness: NPV or ARR demands confidence with data and financial implications.

• Strategic thinking: Understanding models like Porter’s gives insight into how firms position themselves in competitive markets.

Enterprise Skills’ Business Simulations are directly aligned to this content. During simulation events, students apply these models in live scenarios—choosing market strategies, allocating budgets, forecasting returns, and managing timelines. It’s the difference between studying strategy and doing strategy.

Careers Links

This topic links strongly to career education goals, particularly:

• Gatsby Benchmark 4 (Curriculum links to careers): Students explore decision-making as practiced by marketing managers, project leaders, financial analysts, and entrepreneurs.

• Gatsby Benchmark 5 & 6: Through tools like Enterprise Skills simulations, students experience workplace decision-making first-hand.

Typical roles that use these frameworks include:

• Strategic Analysts

• Project Managers

• Financial Planners

• Business Consultants

• Entrepreneurs and Start-up Founders

Highlighting this helps bring lessons to life, especially for students unsure how theory connects to real jobs.

Teaching Notes

Time-saving Tips:

• Use plug-and-play tools like Skills Hub for pre-built case studies and scaffolded model applications.

• Model answers and partial frameworks can help students practise structured application before attempting full essays.

Common Pitfalls:

• Students often misapply models or forget the assumptions each one makes.

• Quantitative errors in investment appraisal or CPA can undermine otherwise strong responses.

Extension Activities:

• Pair students to roleplay boardroom decisions using a model of their choice.

• Run a mini-strategy sprint using Enterprise Skills’ Business Simulation to test decisions under time pressure.

• Compare strategic choices in a real company before and after a major disruption (e.g. COVID-19 or Brexit).