PESTEL

The Macro Environment

Porters Diamond

The competition position (Nations)

Porters Five Forces

The competition position (Industry)

BCG Matrix

Portfolio of Product

Product Life CyclePLC

Ashridge/BCG

Portfolio of Companies

Process-Strategy Matrix

Outsourcing

Mendelow s Matrix

Stakeholders

Type of Changes,

Changing Management

Balogun; Hope Hailey 8 context

Lewin Forces Field
Value Chain

Making Profit

Porters 3 Generic Srategies

Strategy Clock
Benchmarking
Value Chain(Based on IT)

Use of IT

6Is(E-marketing )
Culture Web

Culture

Strategy Clock

Srategies of Price and Value Added

Ansoffs Matrix

Marketing and Product Strategies

4P/7P

Marketing

Mintzbergs Stuctural Configurations

Type of Organization

Strategy Lenses

Stategies

SWOT SW OT
ACCA

Core Competence
1. Core Competence Value
2.Value to buyers / Rarity / Robustness (Hard to imitate) / Non-substitutable
3. CSFCritical Success Factors KPIKey Performance Indicator
Strategic CapacityThreshold +Unique
1.Threshold
2.UniqueCompetence / Resources / Knowledge / Cost Efficiency
Parent **U
1.Portfolio
2.Synergy **U
3.Parental add value to **U
Methods of Development
1.Internal Growth/Organic Growth
2.Mergers ; Acquisition
3.Franchising
4.Strategic Alliance

*****Strategy****
Different models for strategic planning process:
- Rational Planning model strategic choice, strategic option, strategy in action
- Johnson & Scholes- 3 levels of strategy > corporate strategy, business strategy, operational
strategy
- Johnson & Scholes- 3 lenses > experience, ideas, design.
- Mintzbergs emergent strategies

*****Stakeholders, ethics and culture****

- Mendelow matrix mapping (to identify stakeholders)
- Johnson & Scholes- ethical position of company
- Charles Handy types of culture (power, role, task, people).
- Miles & Snow- strategic cultures (defenders, prospectors, analysers, reactors).
- Cultural web whether a particular strategy is acceptable to employees. (CORPPS)

***** Environment*****
- Johnson & Scholes- key drivers of change (why do things change?) > (market globalization,
cost globalization, global competition, economic, environmental, legal).
- PESTEL- analysis of external environment
- Porters national diamond- reasons why some companies in a particular country have
competitive advantage than companies from other countries.

*****Competition and markets****

- Industry life cycle
- Porters 5 forces

***** Strategic capability****

- Mckinseys 7S
- Porters value chain -appraise internal aspects of org.
- porters value network extends the idea of value chain to include customers and suppliers
- Product life cycle
- TARA framework dealing with risks

*****strategic options****
- Ansoff matrix used to generate strategic options
- BCG matrix (under product development).
- Porters generic strategy (under market penetration). > cost leadership, product
differentiation, focus group.
- Strategic clock look at price and added value

*****Strategic choice****
- Johnson & Scholes- strategic rationale ways head office can create value in each business
they own > portfolio managers, synergy, parental developers.
- Ahsdrige portfolio model > use BCG matrix instead. (Which divisions to keep or get rid of)
- Tows analysis
- Johnson & Scholes- SFA test

*****Finance*****
- Limiting factors
- Make or buy

- Closure or continuing decisions

- Special contracts
- ratio analysis
- Regression, time series analysis

***** Marketing******
- Marketing mix (7 Ps)
- CSF and KPIs

*****Business process****
- Rummler and Brache- Gaps and disconnecting
- Harmons process- strategy mix

*****E business*****
- 6 stages of using IT (initiation, contagion, control, integration, data administration, maturity).
- Supply chain: upstream, downstream
- 6Is for e-marketing
- customer life cycle

*****People in organization*****
- Organizational structure (functional, divisional, matrix)
- Mintzberg structural configuration (ideology, strategic apex, middle line etc)

*****Project management*****
- Project gateways- method to run a project
- Wards & Daniels types of benefits (how benefits can be measured)
- tuckmans stages of formation stages before starting the project
- Belbins personality mix- personalities in the group

******Change and development*****

- Balogun & Hope Hailey contextual features for stakeholders to consider before accepting
change
- Lewins force field analysis forces at work whenever a change is considered
- Lewins 3 step process- stages necessary for something to change (unfreeze, freeze, refreeze)

Model # 1 PESTEL Macro environment, strategic position analysis (evaluation)

Political - tax policy, labour law, environmental law, trade restrictions, tariffs, and political
stability
Economic - economic growth, interest rates, exchange rates and the inflation rate
Social - health, population growth rate, age distribution, career attitudes and emphasis on safety
Technological - R&D activity, automation, technology incentives and the rate of technological
change
Environmental - weather, climate, and climate change
Legal - discrimination law, consumer law, antitrust law, employment law, and health and safety
law.
Two important questions: 1. What? 2. Why it is important (significant)?
When PESTEL model was examined in P3 past exam papers?
1. Pilot paper, Q1, a) 15 marks
Evaluate the macro-environment of NMS using a PESTEL analysis
2. Dec 2008, Q1, a) 20 marks
Analyse the macro-environment of the National Museum using a PESTEL analysis
3. Jun 2010, Q1, a) 21+4 prof. marks
Undertake the assessment, required by Sheila Jenkins, of the strategic position of WET
4. Dec 2010, Q1, a) 15 marks
In the context of Shoal plcs corporate-level strategy, assess the contribution and performance of
ShoalFish, ShoalPro and ShoalFarm. Your assessment should include an analysis of the position
of each company in the Shoal plc portfolio
5. Jun 2011, Q1, a) 16+4 prof.marks
Analyse the external macro-environment and marketplace (industry) environment of EcoCar.
6. Dec 2011, Q1, a) 20 marks
Using appropriate models and frameworks, analyse GETs current strategic position from both
an internal and external perspective
7. Dec 2012, Q2, a) 15 marks
Evaluate the strategic position of the estate with specific reference to the expectations of
stakeholders, to the external environmental factors beyond the control of the estate and to the
strategic capabilities of the estate itself.
Model #2 Porter's Five Forces
CCCSS
C - Competitors existing (threat from competitive rivalry) - # and size of competitors, quality and
other differencies, customer loyality
C - Competitors new (threat from potential entrants) - cost and time of entry, building a brand,
knowledge required, economies on scales, barriers like patents, design rights
C - Customers (customers' bargaining power) - # of customers, size of each order, product and
price differences, price sensitivity
S - Suppliers (supliers' bargaining power) - # and size of suppliers, uniqueness of service, cost of
switiching to other suppliers
S - Substitutes (direct, indirect and monetary) (threats from substitutes) - the existence of
substitutes, the performance of substitute products, relative price, fashion trend

When Porter's Five Forces was examined in P3 past exam papers?

1. Pilot paper, Q1, b) 16 + 4 prof. marks
Analyse the industry or marketplace environment that NMS is competing in
2. June 2008, Q1, a) 18 + 2 prof. marks
Using an appropriate model or models, analyse the competitive environment of AutoFones retail
shops division.
3. Dec 2009, Q1, a) 20 marks
Using Porters framework, analyse the business analysis certification industry (BACTI) in
Erewhon and assess whether it is an attractive market for ABCL to enter
4. Jun 2010, Q1, a) 21+4 prof. marks
Undertake the assessment, required by Sheila Jenkins, of the strategic position of WET
5. Dec 2010, Q1, a) 15 marks
In the context of Shoal plcs corporate-level strategy, assess the contribution and performance of
ShoalFish, ShoalPro and ShoalFarm. Your assessment should include an analysis of the position
of each company in the Shoal plc portfolio
6. Jun 2011, Q1, a) 16+4 prof.marks
Analyse the external macro-environment and marketplace (industry) environment of EcoCar.
7. Dec 2011, Q1, a) 20 marks
Using appropriate models and frameworks, analyse GETs current strategic position from both
an internal and external perspective
8. June 2013, Q2, a) 15 marks
Use Porters five forces framework to assess the attractiveness, to NESTA, of entering the
discount fixed-price retail market in Eurobia
Model #3 Project initiation document (PID)
Title
Objectives
Scope
Constraints (time &costs)
Authority (Sponsor - make decisions, provide resources, agree changes)
Resources (available for project material, labour, finance resources)
When PID was examined in P3 past exam papers?
1. Dec 2007, Q2 a) 15 marks
Explain how a business case and a project initiation document would have helped prevent some
of the problems that emerged during the conduct of the website re-design project.
2. June 2012, Q3 a) 15 marks
Analyse how a formal terms of reference (project initiation document) would have helped
address problems encountered in the project to construct the community centre and lead to
improved project management in future projects
3. June 2013, Q1 a) 18+2 prof. marks
Identify and analyse mistakes made by the CEO in the project management process (initiation,
conduct and termination) in his attempt to introduce strategic planning, and an associated
information system, at MidShire Health

Model #4 ANSOFF's growth vector matrix

Existing Markets * Existing Products = Market Penetration
Existing Markets * New Products = Product Development
New Markets * Existing Products = Market Development
New Markets * New Products = Diversification: Direct + Indirect
When ANSOFF was examined in P3 past exam papers?
1. Dec 2007, Q1 c) 10 marks
Identify and evaluate other strategic options ONA could consider to address the airlines current
financial and operational weaknesses.
2. June 2008, Q4, a) 10 marks
The proposal to develop and sell a software package for the retail industry represents a major
change in strategy for PSI. Analyse the nature, scope and type of this proposed strategic change
for PSI
3. June 2009, Q1, b) 18+2 prof. marks
The panel selected the proposal of Professor Ag Wan as the winning proposal.
Write a briefing paper evaluating the three proposals and justifying the selection of the proposal
of Professor Ag Wan as the best strategic option for greenTech to pursue.
Model #5 Porter's Value Chain
IL O OL M&S S
IL - Inbound logisitics - e.g. JIT system
O - Operations - manufacturing the products
OL - Outbound logistics - getting the products to the customers
M&S - Marketing and sales
S - Service- after sales service
When Value Chain was examined in P3 past exam papers?
1. Dec 2007, Q3 a) 5 marks
Describe the primary activities of the value chain of Perfect Shopper
2. Dec 2009, Q 2 a) and b) 25 marks
Analyse the primary activities of the value chain for the product range at IL
Evaluate what changes IL might consider to the primary activities in the value chain to improve
their competitiveness, whilst continuing to meet their charitable objectives.
3. June 2012, Q4 a)
Analyse the existing value chain, using it to highlight areas of weakness at Jayne Cox Direct
Model #6 Harmon's Process Strategy Matrix
Is the process strategically important? (does it tie up with SWOT?)
Is the process complex?
High importance * Complex process = focusing on STAFF (make sure they are able to do it)
High importance * Simple process = use a bespoke ERP soution

Low importance * Complex process = Outsource (Marketing, IT, Legal service)

Low importance * Simple process = Automate (off-the-shelf system)
When Harmon's process was examined in P3 past exam papers?
1. June 2008, Q 2 a) 15 marks
The Business Architecture Committee (BAC) has been asked to make recommendations on the
sourcing of activities (in-house or outsourced). The BAC has also been asked to identify
technological implications or opportunities for the activities that they recommend should remain
in-house.
Suggest and justify recommendations to the BAC for each of the following major process areas:
(i) Attendance of repair staff at breakdowns;
(ii) Membership renewal;
(iii) Vehicle insurance services;
(iv) Membership queries; and
(v) Vehicle history checks.
2. Dec 2009, Q 3 b) 15 marks
Explain, using Harmons process-strategy matrix, how the complexity and strategic importance
of process initiatives can be classified. (4 marks)
Recommend and justify a solution option for each of the three process initiatives (9 marks)
3. Dec 2011, Q 2 b) 15 marks
iCompute is currently re-considering three high level processes:
(i) Advice on legal issues (currently outsourced)
(ii) Software support (currently outsourced)
(iii) Time recording (in-house, bespoke software development)
Evaluate, using an appropriate framework or model, the suitability of iComputes current
approach to EACH of these high level processes.
4. June 2013, Q3 a) 15 marks
Three significant business process areas have been identified in the scenario: (1) payroll, (2)
legal advice and (3) an enhanced web service allowing wholesalers to request and track
deliveries.
Required:
Use Harmons process-strategy matrix to analyse the characteristics of each of the three process
areas defined above and suggest how each should be sourced and implemented at CT.
Model #7 Cultural Web - seven elements
Rituals and routines - what procedures are emphasized?
Symbols - Are status symbols are used for rewards? What are rewards given for?
Control systems - What is most closely monitored?
Organisation structure - How tall/flat?
Power structure - How much centralization is there?
Stories - Does news in the company focuses on success or failures?
The Paradigm - What assumption are taken for granted?
When Cultural Web was examined in P3 past exam papers?
1. Dec 2008, Q1 b) 18+2 prof. marks

The failure of the Director Generals strategy has been explained by one of the trustees as a
failure to understand our organisational culture; the way we do things around here.
Assess the underlying organisational cultural issues that would explain the failure of the Director
Generals strategy at the National Museum.
2. Dec 2010, Q3 a) 15 marks
Analyse Frigate Ltd using the cultural web or any other appropriate framework for understanding
organisational culture
3. Dec 2011, Q 2 a) 13 marks
Analyse the culture of iCompute, and assess the implications of your analysis for the companys
future performance
4. June 2013, Q1 a) ii) 18+2 prof. marks
Explain how an understanding of organisational culture and organisational configuration would
have helped the CEO anticipate the problems encountered in introducing a strategic planning
system, and an associated information system, at MidShire Health.
Model #8 Contextual features - Balogun and Hope Hailey Acceptance of Strategic Change
Fundamental change is likely to be resisted unless there are good reasons for stakeholders to
accept it.
Balogun and Hope Haley list the contextual features which stakeholders will consider:
Time is the organization in a crisis or is there time for gradual change?
Scope will many people/divisions/depts. be affected or just a few?
Preservation are there processes, competences and staff that will need to be retained?
Diversity different parts of the business may have their own culture and interests. Will the
proposed change impact on these?
Capability do senior mgt. have the knowledge and experience to deal with change?
Capacity does the organization have the resources required to undertake the change?
Readiness are the key stakeholders aware of why change is needed and are they likely to accept
it?
Power can senior managers force change even if it is against the wishes of other stakeholders?
When Contextual Features was examined in P3 past exam papers?
1. June 2008, Q4 b) 15 marks
The success of any attempt at managing change will be dependent on the context in which that
change takes place. Identify and analyse, using an appropriate model, the internal contextual
features that could influence the success or failure of the chief executives proposed strategic
change for PSI.
2. Dec 2010, Q1 b) 13+2 prof.marks
Identify and analyse, using an appropriate model, the contextual factors that will in uence how
strategic change should be managed at Captain Haddock.
3. Dec 2012, Q1 b) 12 marks
Time, scope, capability and readiness for change are four contextual factors that affect strategic
change. Evaluate the potential influence of these four factors at Steeltown Information
Technology on any strategic change proposed by the EA Group.

Model # 9 SFA test - evaluation of strategic options

S Suitable? - for circumstances in which the company operates - its strategic position (SWOT,
Porter's generic strategy)
F Feasible? - available resources, competencies, times
A Acceptable? - by key stakeholders
When SFA test was examined in P3 past exam papers?
1. June 2010, Q2 a) 15 marks
Assess, using both nancial and non-nancial measures, the attractiveness, from Swifts
perspective, of EVM as an acquisition target.
2. Dec 2011, Q1 b) 16+4prof.marks
GETs proposed strategy is firstly to acquire SOFR and then the franchise to run the rail network
of Raziackstan. You have been asked to provide an independent assessment of this proposed
strategy. Write a report evaluating GETs proposed strategy.
Model #10 Software selection - 5 stages by Skidmore and Eva
When a company decides to purchase a bespoke software it goes through these 5 stages:
1. Obtain tenders
2. First pass selection
3. Second pass selection
4. Implementation
5. Managing long-term relationships
When Software selection was examined in P3 past exam papers?
1. June 2009, Q3 b) 12 marks
Examine FOUR ways in which OneEnergy failed to follow a proper evaluation procedure in the
selection of the RitePay software package. Include in your examination a discussion of the
implication of each failing.
2. June 2011, Q3 b) 10 marks
Explain the advantages of fulfilling users requirements using a software package solution and
discuss the implications of this solution for process re-design at IAA.
3. Dec 2011, Q3 b) 12 marks
Evaluate the problems and the lessons that should be learned from a post-project review and a
post-implementation review of the electronic ordering system at HomeDeliver