Chapter 3: The Strategic Context for Business Analysis (7.5%)

Question 1

forces identified in Porter’s 5 Forces Model

Answer 1

Industry Competitors (centre)

Bargaining power of suppliers

Bargaining power of buyers

Threat of new entrants

Threat of substitute products or services

Question 2

benefits for BA to be aware and apply knowledge of strategic context

Answer 2

• analyse and discuss strategic approaches and priorities
• build credibility with stakeholders
• question appropriateness
• analyse effectiveness
• provide leadership and influence to delivery

Question 3

when may linear strategy development be adopted?

Answer 3

where environmental conditions are stable

immediate market feedback not deemed valuable

Question 4

what is adaptive strategy development

Answer 4

iterative development based on market and stakeholder feedback

Question 5

advantages of adaptive strategy development

Answer 5

• objective decision making
• continuous improvement
• valuing of knowledge

associated with non-hierarchical organisations (high employee ownership/empowerment)

Question 6

disadvantages of adaptive strategy development

Answer 6

• unlikely to be accepted in organisations that are risk-averse
• obtaining market feedback not perceived as helpful (e.g. government)
• constant adaptation may lead to difficulties when communicating strategy

Question 7

what questions to ask when understanding the strategic context

Answer 7

what is the current state

what is the target state

what is the strategy execution (plan to move between current and target state)

Question 8

what techniques are used for internal environment analysis of current state?

Answer 8

VMOST

Resource audit

Balanced scorecard (BSC)

Performance measurement

Growth Share Matrix

Question 9

what techniques are used for external environment analysis of current state?

Answer 9

PEST;E
Porter’s Five Forces analysis

Question 10

describe elements of VMOST analysis

Answer 10

Vision (target state)

Mission (what organisation does/will do)

Objectives (specific objectives to achieve)

Strategy (long-term approach to achieve V,M,O)

Tactics (specific/ detailed way strategy will be executed)

Question 12

4 performance areas measured within BSC

Answer 12

Financial

Internal business process

Learning and growth (innovation)

Customer

Question 13

purpose of a Business Model Canvas

Answer 13

help align the work of the organisation with desired outcomes

used to assess the current and target state and to identify and plan changes