3.7 Analysing the strategic position of a business

Question 1

Influences on the mission of a business

Question 2

Internal and external influences on corporate objectives and decisions

Answer 2

Influences on corporate objectives should include the pressures for short termism, business ownership, the external and internal environment.

Question 3

Internal and external influences on corporate objectives and decisions

Answer 3

Influences on corporate objectives should include the pressures for short termism, business ownership, the external and internal environment.

Question 4

The distinction between strategy and tactics

Question 5

The links between mission, corporate objectives and strategy

Question 6

The impact of strategic decision making on functional decision making

Question 7

The value of SWOT analysis

Question 8

How to assess the financial performance of a business using balance sheets, income statements and financial ratios

Question 9

The value of financial ratios when assessing performance

Answer 9

Data may be analysed over time or in comparison with other businesses.

Question 10

How to analyse data other than financial statements to assess the strengths and weaknesses of a business

Answer 10

Data other than financial statements should include operations, human resource and marketing data.

Data may be analysed over time or in comparison with other businesses

Question 11

The importance of core competences

Question 12

Assessing short- and long-term performance

Question 13

The value of different measures of assessing business performance

Question 14

Kaplan and Norton’s Balanced Scorecard model

Question 15

Elkington’s Triple Bottom Line (Profit, People, Planet).

Question 16

The impact of changes in the political and legal environment on strategic and functional decision making

Answer 16

The political and legal environment should include a broad understanding of the scope and effects of UK and EU law related to competition, the labour market and environmental legislation.

The impact of UK and EU Government policy related to enterprise, the role of regulators, infrastructure, the environment and international trade

Question 17

The impact of changes in the UK and the global economic environment on strategic and functional decision making

Answer 17

Economic factors to include:

GDP
taxation
exchange rates
inflation
fiscal and monetary policy
more open trade v protectionism

Question 18

Reasons for greater globalisation of business

Question 19

The importance of globalisation for business

Question 20

The importance of emerging economies for business

Question 21

The impact of the social and technological environment on strategic and functional decision making

Question 22

urbanisation and migration

Question 23

changes in consumer lifestyle and buying behaviour

Question 24

the growth of online businesses.

Question 25

the reasons for and against (CSR)

Question 26

the difference between the stakeholder v shareholder concept

Question 27

Carroll’s Corporate Social Responsibility pyramid.

Question 28

Technological change should include the impact of technological change on functional areas and strategy.

Question 29

Porter’s five forces, how and why these might change, and the implications of these forces for strategic and functional decision making and profits

Answer 29

An understanding of the five forces to include: entry threat (barriers to entry) buyer power supplier power rivalry substitute threat. Students should consider how the five forces shape competitive strategy.

Question 30

Financial methods of assessing an investment

Answer 30

Investment appraisal should include the calculation and interpretation of payback, average rate of return and net present value.

Question 31

Financial methods of assessing an investment

Answer 31

Investment appraisal should include the calculation and interpretation of payback, average rate of return and net present value.

Question 32

Factors influencing investment decisions

Answer 32

Factors to include investment criteria, non-financial factors, risk and uncertainty

Question 33

The value of sensitivity analysis