Strategic Business

Leader (SBL)
March/
June 2023
Examiner’s report
The examining team share their observations from
the marking process to highlight strengths and
weaknesses in candidates’ performance, and to
offer constructive advice for those sitting the exam
in the future.

Contents
General comments ........................................................... 2
Format of the exam ...................................................... 2
Exam performance ....................................................... 3
Analysing the exhibits ................................................... 4
Planning ........................................................................ 5
Time management........................................................ 5
Reasons for failure ....................................................... 6
Technical marks ........................................................... 6
Professional skills marks .............................................. 7
Specific comments ........................................................... 8
Task 1 ........................................................................... 8
Task 2a ....................................................................... 13
Task 2b ....................................................................... 15
Task 3 ......................................................................... 17
Task 4 ......................................................................... 19

Examiner’s report – SBL March/June 2023 1

General comments
This examiner’s report should be used in conjunction with the published March/June
2023 sample exam which can be found on the ACCA Practice Platform.

In this report, the examining team provide constructive guidance on how to answer
the tasks whilst sharing their observations from the marking process, highlighting the
strengths and weaknesses of candidates who attempted these tasks. Future
candidates can use this examiner’s report as part of their exam preparation,
attempting question practice on the ACCA Practice Platform and reviewing the
published answers alongside this report.

Format of the exam

The examination consisted of a 4-hour Integrated case study exam, comprising four
main tasks, about a toy manufacturer called Nola Toys Ltd (NT). The candidate’s
role throughout the exam was an external advisor engaged to support a new CEO
and the other members of the board.

The marking scheme included 80 Technical marks for the correct use and
application of technical knowledge. For every element of technical content, answers
needed to be applied to the case. Repetition of rote learned knowledge attracted
few, if any, marks.

In addition, the marking scheme included 20 marks for Professional skills. The skill
being examined in the requirement should have been evident in how candidates
answered the task, although candidates should draw on other relevant skills when
answering. When awarding Professional skills marks, markers looked primarily at the

Examiner’s report – SBL March/June 2023 2

professional skill being tested in the task requirement, but also considered the
general professionalism that candidates demonstrated (which included whether
answers were logical and well-presented, avoided unnecessary repetition and
answered the task set). Markers also considered whether answers were presented in
an appropriate tone for the recipient.

As candidates take the exam on computer, they are strongly recommended to take
mocks on computer first, to gain experience of dealing with different types of exhibits
and to estimate how much they can write in the time allowed. It is strongly advised to
use and assimilate the guidance produced by ACCA for the Strategic Business
Leader CBE exam.

Exam performance
The following exhibits, were presented to candidates which provided information
relevant to the case study:

1. An overview – Nola Toys Ltd (NT).

2. NT website extracts – including background information about NT, its core
values, and its People Policy.
3. Intranet posts from June 20X3 – a sample of staff posts on NT’s intranet.
4. Computer games industry information – background and current issues,
prepared by a business development executive.
5. Financial appraisal – financial appraisal by a finance assistant of a move
into the computer games industry.
6. Value-adding activities – extract from the information provided to new staff
describing NT’s main value-adding business activities.
7. Potential use of big data – a report by an IT consultant on the potential use
of big data in the computer games industry.

Overall, the standard of answers for the June 2023 exam was in line with recent
sittings, although there was some evidence of positive developments in candidates’
performance:

• Candidates seemed to have a better understanding and made more use of

the information presented in the exhibits to support their answers than has
been the case in previous sittings.

• There was more application of the case materials in answers.

• Answers were presented in the appropriate formats as requested in the task

requirements.

Examiner’s report – SBL March/June 2023 3

 • There were fewer candidates answering the task they wish they had been set
rather than the task actually set.

The most competent candidates integrated and used information from the case study
materials throughout their answers, selecting relevant technical knowledge to
support the applied points they made. They also demonstrated sound professional
skills through analysis, evaluation and sound commercial judgement, and through
presenting well-structured answers.

The main weaknesses were a failure to consider the context of NT, repetition of case
material in answers with no real attempt to add further value and an inability to
develop points in support of arguments.

It was also apparent that some candidates had not used and assimilated the
guidance and resources produced by ACCA for Strategic Business Leader. It is
worth remembering that this is an important part of exam preparation.

Analysing the exhibits

Candidates must spend sufficient time reading and assimilating the information
within the exhibits which make up the case study materials. Often answers failed to
make sufficient reference to the exhibits or failed to make use of the full range of
material in the exhibits. However, in the June sitting, it was encouraging to see that
many candidates did make better use of the exhibits than in previous sittings.

Candidates need to read the exhibits carefully, whilst keeping the requirements of
each task in mind, as this will help them to identify which tasks will be drawing on the
material in each exhibit. Candidates need to remember that material from more than
one exhibit may be relevant when answering each task, as was the case in this
exam.

The exhibits:
• Provide the material which underpin the applied points that candidates should
be making.
• Include necessary background information and explanation to provide context
to candidates’ answers.
• Help candidates to decide how to structure their answers.
• Highlight the most important issues that answers should cover.
However, candidates must remember that merely reproducing material from the
exhibits without commenting on it or developing points further will not score marks.
This point will be discussed later in the report in relation to candidates’ performance
on a number of tasks.

Examiner’s report – SBL March/June 2023 4

Planning
Candidates must also spend sufficient time on planning, to ensure that their answers
are:
• Structured logically
• Balanced in terms of the depth of discussion required with the breadth of
points to be made
• Covering the most important points
• Not padded out with material that does not address the task requirements
• Not making the same point two (or more) times
• Not overlapping
When taking the exam on computer it may be useful to copy and paste the task
requirements into the word processor answer area. Candidates then do not need to
keep looking at the task tabs and it may help them to remain more focused on the
tasks as they answer them.

Time management
Most candidates answered all four tasks and there was no significant indication that
they had run out of time or stamina on this examination. This suggests that
candidates are continuing to improve their time management skills. Candidates are
strongly recommended to take mock exams under full exam conditions before the
actual exam, to get used to the demands on concentration, thinking and writing that
the SBL exam requires.

Candidates also need to be aware of how time can be poorly used in this exam:

• Wasting time by including material not relevant to the task requirements. For
example, there were explanations of the Vs of big data in answers to task 4
for which no marks were awarded.
• Writing elaborate and lengthy plans, resulting in too little time to produce
meaningful answers.
• Making the same point twice or more in slightly different ways. This was
particularly evident in Tasks 2a and 4 in this exam. Markers will not give
additional marks for points which are repeated or re-stated, even if they are
slightly reworded.

Examiner’s report – SBL March/June 2023 5

Reasons for failure
In most cases, those candidates who failed this exam did so because of:
• Lack of development of the points made (that is, not fully explaining why the
point was relevant/important in the context of the task requirements).
• Lack of application of the case scenario to points made.
• Wasting time by including irrelevant content.
• Lack of analysis skills (demonstrated through an inability to select, and then
appropriately use, relevant information to answer task requirements).
• Not answering the question that has been asked.
• Poor level of technical knowledge.
• Inappropriate use of models.
• Lack of commercial acumen.
• Failure to respond to the requirements in a professional manner.
• Failure to provide everything that the requirements specified.

Although there was evidence of some improvement compared with previous diets, it
was once again disappointing to see some candidates failing to read the task
requirements carefully enough, resulting in them not answering the question that had
been asked or not answering the whole requirement. This demonstrates poor
examination technique and a lack of professionalism, which then impacts on the
professional skills marks awarded.

Technical marks
Demonstration of technical knowledge alone or explanation of theory does not score
marks in the Strategic Business Leader exam. To gain each technical mark,
candidates needed to:
• Make points that addressed the requirements of the task, considering the
scope of answer required and what the task verb indicated should be
provided.
• Show the marker why the points being made were significant/relevant in the
context of NT.
• Consider issues that were specific to the decision or issue covered in the task
requirement.
Up to two marks were sometimes available for a well-developed point made.
However, candidates are reminded that two marks will only be awarded when a
relevant point has been successfully identified/explained AND has been developed
by:

Examiner’s report – SBL March/June 2023 6

 • Evaluating how significant the point is.
• Using the information provided that relates the point directly to NT.
• Explaining the consequences for NT.
• Supporting the point made with relevant examples from the case material.
A failure to develop points made was prevalent in this exam. This was particularly
notable in task 1a. Candidates were able to identify examples of NT’s culture in
Exhibits 2 and 3 but were unable to explain what those examples indicated about
NT’s culture.
In this sitting, as in previous sittings, candidates often reproduced or repeated
information taken from the exhibits with no attempt to add further value. Examples
included:
• Reproducing points that illustrated NT’s culture from Exhibits 2 and 3 without
explaining why they were cultural factors or influences (Task 1a).
• Reproducing extracts of Exhibit 4 without explaining what the actual risk was
that they were attempting to identify (Task 2b).
• Reproducing information from Exhibit 6 without making any evaluation of the
relevance of the activity to a computer games context (Task 3).
• Reproducing extracts from Exhibit 7 without making any reference to a
computer games context (Task 4).

Candidates who presented very generic answers were awarded limited marks. This
often happened in answers to Task 1b, where many candidates spent time
describing (sometimes many different) management styles and approaches rather
than recommending those suitable to NT, and therefore gained little credit.
Candidates must avoid presenting answers which merely repeat knowledge or
theory without any attempt to apply this to the case context.

Professional skills marks

It was good to see that many candidates had clearly thought about professional skills
marks and attempted to present their answers in an appropriate format, as requested
in each task requirement.

Whatever the format requested, the recipient will be helped by an answer which is
presented and structured clearly, with headers throughout the answer and which
avoids repetitive information. Candidates who used such an approach, in tasks 1a,
2a and 3 in particular provided better answers than those candidates who didn’t.
Candidates should remember that they are carrying out a professional task that has
a particular purpose(s) for a defined user or stakeholder(s).

Examiner’s report – SBL March/June 2023 7

It is important for candidates to read the technical and professional requirements
together, as this will assist them in formulating their answers in the correct style, tone
and with the correct level of professionalism.

Specific comments

Task 1

The NT board has been given a clear instruction by ZC, for immediate
implementation, to diversify. The board recognises that many existing staff are
uneasy about the appointment of the new CEO and are likely to react negatively
to any diversification. It has therefore asked for your advice on how to implement
change professionally and effectively.

Prepare a report for the board which:

(a) Analyses NT’s current culture and recommends suitable changes to

enable diversification to succeed at NT.
(20 marks)

(b) Advises on different leadership styles (or approaches) and

recommends which would be most suitable for the professional and
effective implementation of the change needed at NT.
(8 marks)

Professional skills marks are available for demonstrating commercial acumen

skills in showing insight when recommending suitable cultural changes and the
most appropriate leadership style (or approach) which would enable the
successful implementation of diversification at NT.
(4 marks)

Part (a)

Part (a) of task 1 had two separate components. Firstly, candidates had to analyse
NT’s current culture and secondly, recommend how the culture needed to change if
the new owner’s instruction to diversify was to be successful. It was reassuring to
see that the vast majority of candidates had noted the two separate requirements,
which has not always been the case when similarly structured tasks have appeared
in previous sittings.

Examiner’s report – SBL March/June 2023 8

Candidates needed to focus on Exhibit 2, the extracts from NT’s website, and Exhibit
3, the intranet posts, to answer this task as these exhibits provided an insight into
NT’s current culture.

There were some good answers to this task.

Candidates who scored well were able to demonstrate a sound understanding of how
to analyse an organisation’s culture by identifying relevant examples of NT’s culture in
Exhibits 2 and 3 – of which there were many – and explaining what the examples
indicated about the culture. They then went on to recommend suitable changes to the
culture given their analysis and NT’s circumstances. Invariably these candidates used
the cultural web as a tool to give structure and focus to their answers.

Those who didn’t use the cultural web usually did less well. Instead, they frequently
reproduced, often verbatim, points from the exhibits without clearly explaining how or
why the points were examples of NT’s culture. They then struggled to provide a
coherent, organised analysis and instead produced rambling, repetitive answers which
earned few marks.

Future candidates should note that, if asked to provide an analysis, they should aim
to structure their answer logically, breaking it down into sections using headings. An
appropriate model for the task requirement, suitably applied, can help provide this
structure – as was the case here with the cultural web. But candidates should be
mindful that not all analysis requirements can be structured with a model and models
should only be applied where relevant and useful as a tool. Candidates who tried to
apply, inappropriately, SWOT, Porter’s Five Forces, PESTEL and
Suitability/Acceptabiity/Feasibility models to this task scored badly.

Many candidates were able to score relatively well on this first part of the requirement
(analyse the culture) because plenty of opportunities to earn marks for examples of
NT’s culture were provided within Exhibits 2 and 3. Most candidates showed limited
ability to develop points to explain what the examples they had identified indicated
about the culture, however, and this limited the marks they could score. For example,
many candidates noted that employees liked the open plan office environment and
sitting next to senior management (an example of NT’s culture) but few went on to
explain that this gave an indication of the lack of status symbols at NT.

Overall, performance on the second part of the requirement (recommendations) was

weak.

Key to providing suitable recommendations was an appreciation of the type of culture

needed to both enable diversification and ensure the continuing success of the Nola
Brick product. Many candidates failed to recognise that many aspects of the current
culture would impede implementation of the diversification strategy – such as the
symbolic power of Kirk Nola and the loyalty staff felt to both him and NT’s history. As
a result, they simply recommended that no changes should be made so as to ensure
continuing high levels of staff satisfaction. This showed a lack of commercial acumen:
all organisations must develop and change if they are to survive in competitive
business environment.

Examiner’s report – SBL March/June 2023 9

Stronger candidates also used the structure of the cultural web for this part of the task
and considered their analysis of each element of the cultural web in turn and how it
might need to change. This logical approach ensured that they considered a wide
variety of aspects of the culture, which generally led to them picking up more marks
than those candidates who adopted an unstructured approach.

Some candidates possibly misinterpreted this part of the task and incorrectly
discussed change management processes rather than provide cultural changes as
required, often using Lewin’s change management model as the basis of their answer,
with little or no application to NT’s circumstances. Few marks were awarded for this
approach. This illustrates the importance of reading the task requirements carefully a
number of times, in conjunction with the professional skills requirement, to ensure a
full understanding of what is being asked.

As noted above, a significant number of candidates either focused on what shouldn’t

change and reiterated all the positive points about the culture under Kirk Nola or they
recommended that no changes were needed. This was particularly the case for
candidates who had not used the cultural web.

The main weaknesses to answers to parts (a) of the task were:

- Reproducing material from the exhibits and explaining its significance badly or not
at all.

- Not using the cultural web to structure the answer and hence producing
unorganised analysis earning few marks.

- Using inappropriate models such as SAF.

- Inability to develop points to explain the significance of examples of NT’s culture.

- Failure to read the task requirement and the professional skills requirement.

- Stating that a change was required but not stating what the change should be.

- Recommending that no changes were made, demonstrating a lack of commercial

acumen.

- Inappropriate/unprofessional/insensitive recommendations (eg reduce the

salaries of all staff as all they do is play).

- Failing to make recommendations or making recommendations without justifying

them.

Part (b)

This part of task 1 required candidates to propose suitable leadership styles or

approaches that would enable the changes needed at NT.

Examiner’s report – SBL March/June 2023 10

This was the only task that several candidates missed out. Responses to it were
probably the weakest on this exam and most candidates scored very low marks.

Few candidates recognised that two factors were key to enabling the changes:
minimising staff resistance and ensuring that the instruction for the immediate
implementation of the diversification strategy by NT’s new owner was followed. It was
therefore important to assess the suitability of a range of leadership styles/approaches
given these two factors, which the vast majority of candidates failed to do.

Many candidates demonstrated an incredibly limited knowledge of leadership

styles/approaches. Some simply made up their own styles or described qualities that
leaders should have (such as communication skills).

Answers that did describe (sometimes many) different types of leadership, often in
great detail, tended to be largely theoretical with little or no reference or application to
NT. They therefore generally earned few marks.

Change management approaches also featured heavily in many answers to this task
too, for which no marks could be awarded. A small number of candidates
misunderstood the task completely and discussed the generic strategies of cost
leadership, differentiation and focus.

Marks were awarded for any sensible recommendations, provided candidates put
forward sensible, contextualised arguments to justify their recommendation. When
recommendations were made, however, they were often unclear, poorly justified and
inadequately developed. Few made any link to NT’s circumstances. There was little
recognition that NT’s employees were familiar with a top-down/directive approach and
that the need for change was urgent. Most recommendations were for a
democratic/participative approach. Justifications, when given, were generic and
invariably along the lines that such an approach would motivate and engage staff, with
no direct application to NT.

The main weaknesses in answers to part (b) of this task were:

- Failure to recognise that staff resistance to the changes had to be minimised but
the changes needed to be implemented urgently.

- Limited knowledge of leadership styles/approaches.

- Theoretical descriptions of leadership styles, with no application to NT.

- Spending too long describing the theory of (sometimes many) leadership styles
and hence having insufficient time to make recommendations.

- Including inappropriate content (eg change management approaches).

- Unclear, poorly justified, inadequately developed or non-existent

recommendations.

To score high professional marks, candidates needed to make sensible,

contextualised recommendations in both parts of task 1 that would enable NT’s board
to deliver the diversification strategy. Most candidates scored low professional marks,

Examiner’s report – SBL March/June 2023 11

however, as they failed to make these recommendations in either part (a), or part (b)
or both parts.

Examiner’s report – SBL March/June 2023 12

Task 2a

The board is considering diversifying into computer games based on the Nola
Bricks brand and they are about to meet to discuss this further. A business
development executive has prepared some information on the computer games
industry, while a finance assistant has provided a financial appraisal of the
implications for NT of this diversification.

The finance director has asked you to assist him in preparing for the board
discussions.

Prepare a report for the finance director which:

(a) Critically assesses the financial appraisal of NT’s move into the
computer games industry prepared by the finance assistant.
(14 marks)

Professional skills marks are available for demonstrating scepticism skills in

questioning the content of the finance assistant’s financial appraisal.
(4 marks)

(b) Identifies the risks for NT of moving into the computer games industry
and recommends suitable ways of managing them.
(12 marks)

Professional skills marks are available for demonstrating analysis skills in

considering the risks of a move into the computer games industry and advising
on how they can be managed effectively.
(4 marks)

Most candidates scored reasonably well on this task.

Candidates that did well tended to take a structured and methodical approach to
answering the task. They took each line of the financial appraisal (Exhibit 5) in turn
and questioned the figures presented and the assumptions used to generate them,
given the information contained in Exhibit 4 and the notes in Exhibit 5, plus their
technical knowledge. They were then able to generate a good range of points. Those
candidates who used such an approach generated more points than those who didn’t.

There was a wide range of relevant points that could be made. Many candidates
questioned the steady cash flows over the five years given the projected industry

Examiner’s report – SBL March/June 2023 13

growth, for example. Stronger candidates also questioned the timeframe of five years
and hence the impact on the net realisable value of the assets if the project were to
continue and suggested the use of sensitivity analysis.

Weaker candidates did not sufficiently challenge all the numbers and assumptions
within the appraisal. Many candidates made comments that were variations on the
theme of ‘It’s not feasible for revenue/contribution/other costs to remain constant for
five years’ or they merely stated about various figures that ‘more investigation needs
to be done’ without setting out their justification for challenging the information
presented (as requested).

Some candidates appeared unclear on how to produce a critical assessment. A critical

assessment considers and evaluates the feasibility and reliability of information. In this
task this meant considering and, importantly, coming to a conclusion about, for
example:

- The reliability of the assumptions used given the number and type of companies
upon which they were based

- The feasibility of marketing costs being the same for five years

Candidates who simply put questions in their answer points such as ‘which companies
are these?’ or ‘why were only five companies chosen’ and did not provide any answers
to these questions had therefore not provided a critical assessment.

Rather than considering the appropriateness of the appraisal, a number of candidates

provided a discussion on the appropriateness of diversification into computer games
(often using the SAF model).

Failure to use brought forward knowledge from FM was evident in some scripts,
particularly in relation to criticising the use of WACC, the omission of capital
allowances and not including non-cashflows such as depreciation in a DCF appraisal.

The main weaknesses were:

- Failing to challenge sufficiently figures and assumptions (for example, stating they
were wrong but not explaining why they were wrong, or stating that more research
was required but not explaining why figures were doubtful).

- Asking questions and not providing answers.

- Discussing the appropriateness of diversification into computer games rather the

appropriateness of the proposal.

- Adopting an unprofessional tone and, for example, querying the competence of

the finance assistant.

- Not using brought forward knowledge from FM.

Examiner’s report – SBL March/June 2023 14

- Querying why net realisable value was on the investment line of the analysis rather
than considering the impact on the value if the project were to continue beyond
five years.

- Failing to mention the need for sensitivity analysis.

The professional marks awarded to candidates very much depended on the level of
challenge demonstrated in the technical answer. Those candidates that took a
methodical approach as noted above tended to score well as this led them to question
figures and assumptions. Those that used phrases such as ‘I don’t understand/agree
with this figure/approach, please explain yourself’ were not providing challenge and
hence did not score well. As in previous diets, diplomacy was sometimes lacking and
comments such as the analyst not being qualified or being incompetent were used to
demonstrate scepticism.

Task 2b

Many candidates provided reasonable answers to this task. Most used the
information in Exhibit 4 well and identified a good range of appropriate and generally
well-applied risks of moving into the computer games industry. Even weaker
candidates were usually able to identify a couple of relevant risks, particularly those
that had been flagged in the exhibit such as cybercrime and the impact of
influencers.

It was pleasing to see that most candidates steered clear of generic risks and were
able to provide applied ones.

The most significant issue, as is as usual with questions on risk, was failure to
explain/define what the risks actually were. For example, candidates often rephrased
or reproduced within their answer the information from Exhibit 4 that ‘Cancelled
projects, unanticipated long delays, cost overruns and unexpected quality problems
are very common within the industry’ without commenting further. This does not set
out what the risk actually is (it being that of the inherent nature of the computer
games industry). Likewise, the final paragraph of Exhibit 4 about addiction to
computer games was also often included verbatim or in the candidate’s own words,
with no further commentary. The risk here to NT is not addiction to computer games
but rather:

• regulatory risks -that regulation will be brought in that affects the way the
industry currently operates;

• legal risks -that legal action could be taken if NT were not to operate in line
with the regulation, with the associated impact on reputation and,

• compliance risks -that NT could be subject to fines if shown to be non-

compliant) and reputational risks (from being linked to potential addiction to
computer games.

Few candidates picked up on the risk of an impact on NT’s current operations or on

the risk to reputation of being linked to any addiction to computer games.

Examiner’s report – SBL March/June 2023 15

Recommendations on how the risks should be managed were not as strong, and
whilst many candidates had scored well by identifying a number of relevant risks, a
large proportion failed to pick up many marks for recommendations. Often
recommendations provided were vague and poorly explained. For example, when
discussing cybercrime, many candidates merely stated that security systems needed
to be implemented or cybersecurity needed to be improved but did not say how this
should be done. Some candidates recommended employing experts as the
mitigation to most risks. Other recommendations made little use of the information in
the exhibits. In some cases recommendations were simply not provided.

Few candidates applied any level of commercial acumen in their recommendations.

Whilst some candidates recommended messages/notifications and games design as
means to minimise the risks associated with addiction to computer games, few saw
how this could offer NT a competitive advantage, especially if used in conjunction
with funding for support. Likewise, whilst many candidates mentioned the risks of the
speed of technological change in the industry and potential product obsolescence,
few suggested market research to determine the preferred format of games for the
target audience.

The main weaknesses were:

- Failure to explain/define what the risks actually were.

- Copying and pasting sections of Exhibit 4 into the answer with little or no further
analysis or comment.

- As often happens with questions that mention risk, weaker candidates attempted
to apply the TARA model. This invariably led to inappropriate recommendations,
mostly against the risks identified. Often nothing more than a generic description
of the model was provided with little or no application to the case.

- Making vague, repetitive, generic, very few or no recommendations on how to

manage the risks identified.

- Making recommendations that used limited, if any, of the information in the

exhibits.

Candidates who considered a range of applied risks and advising on how they could
be managed, generally gained good professional marks. Those candidates who only
presented a limited or poorly applied range of risks or who failed to consider
adequately relevant and applied mitigations limited the professional marks they could
earn.

Examiner’s report – SBL March/June 2023 16

Task 3

The operations director is concerned that NT’s current approaches to adding

value to customers may not be applicable to a computer games operation. She
has therefore asked for your advice about the relevance of current value-adding
activities in six key areas of the present business.

Prepare briefing notes for the operations director which assess the extent
to which NT’s current value-adding activities in these six key areas would
also add value to a computer games operation.
(14 marks)

Professional skills marks are available for demonstrating evaluation skills in

assessing the relevance of NT’s current value-adding activities to add value to a
computer games operation.
(4 marks)

Performance on this question was mixed.

There were a small number of excellent answers which focussed on the
transferability of the current value-adding activities to a computer games operation.
The better-performing candidates tended to take a methodical approach and
assessed each activity in turn, and each aspect of those activities, and considered
and questioned where/why/how the activities would be useful to a computer games
operation.
Often the candidates who did best differentiated between the applicability of the
value-adding activities to physical games and their applicability to digital games. For
example, stronger candidates noted that, for the manufacturing activity, NT would
need to be able to respond quickly to customer demands if it were selling a physical
product, but the current manufacturing activities were unlikely to add value to a
digital computer games operation. They further noted that NT could, however, look to
apply the principle of efficiency to any new processes needed for the development of
digital games.
Those candidates who summarised the relevance of each activity and/or provided an
overall summary evaluation also tended to score well and this was reflected in their
professional marks.
Most candidates covered all six activities, but many did not pick up on and discuss
all the different aspects within each activity (such as those in sales, marketing and
brand management).
Key points that even stronger students tended to miss were linked to logistics.
Firstly, that the activities supporting the outsourcing of logistics could be applied to
outsourcing of activities for which NT was unable to source the appropriate skills and
secondly, that the sustainability agenda could be applied to existing and new
activities.

Examiner’s report – SBL March/June 2023 17

The value adding within the current design activity was often poorly understood –
many candidates stated that a limit on costs was a bad idea. Sales/marketing/brand
and after sales service tended to be better understood, but all too frequently
candidates were quick to disregard any value adding in the manufacturing and
logistics activities given the move to digital games.
The main overriding weakness evident in many scripts was a failure to adequately
consider the relevance of the current value-adding activities to the specific nature of
a computer games operation. For example, many candidates noted that the planning
and forecasting activity would prove useful for forecasting sales of physical products,
but few linked the activity through to the importance of launching products on time
and the inherent riskiness of the industry (cancelled projects, unanticipated long
delays, cost overruns).
Comments that a particular activity would (or would not) add value, without further
analysis or comment, did not score marks. Some candidates simply explained how
the activities might be used in any random, generic business. Rather than focus on
the current activities, other candidates focused on what NT would need to do in each
area instead of the current activities if they moved into computer games.
Many candidates wasted time describing the information in Exhibit 6. Weaker
candidates simply cut and pasted content from the exhibit and simply stated whether
or not the activity would be useful, without making any attempt to evaluate the value
to a computer games context.
The main weaknesses were:
- Failing to discuss the relevance or otherwise of all aspects of an activity.
- Failing to explain clearly how the activities would or would not add value to a
computer games operation.
- Assessing the relevance of the activities to any generic business rather than to
NT
- Describing the activities NT would need to carry out (rather than the current
ones) if it were to move into computer games.
- Wasting time describing the information about the current activities given in
Exhibit 6.
- Cutting and pasting content from Exhibit 6 with little or no further comment or
analysis.
- Failing to recognise that 80% of games were delivered digitally and 20% as
physical copies, or the implications of this. A number of candidates assumed all
games sold were physical copies, some assumed all were digital (invariably
without stating their assumptions) and others discussed physical copies in
relation to some activities, digital in relation to others (without qualification).
Candidates who made a good attempt at assessing the relevance of most of the
current value-adding activities scored good professional marks. Those that did not
adequately assess the value-adding activities did not score well.

Examiner’s report – SBL March/June 2023 18

Task 4

The board is now keen to progress to the next stage of evaluating the move into
the computer games industry. An IT consultant has advised them that NT could
benefit from the generation of big data from their computer games. As the board
has limited understanding of big data and is seeking clarification, you have been
asked to deliver a presentation to them on the subject.

Prepare two presentation slides (with accompanying notes) which

discuss:
• the opportunities which could arise from the use of big data from NT’s
computer games were the company to operate within the industry;
and
• the threats arising from the collection of big data which NT would
need to address.
(12 marks)

Professional skills marks are available for demonstrating communication skills in

clarifying the opportunities and threats of big data from computer games created
by NT in a way that the board will easily understand.
(4 marks)

This question was generally reasonably well attempted.

Most candidates demonstrated a reasonable technical knowledge and understanding
of the usefulness and threats of using big data and most made a reasonable attempt
at applying this knowledge to the case context. The better candidates earned marks
for developed points which explained how the opportunity or threat directly benefited
or impacted NT.
For example, under ‘opportunities’, using the information in Exhibit 7, most
candidates were able to say that the use of big data could improve existing and
future games and fix bugs, while better students were able to develop these points
and link them to, for example, improved retention.

Sometimes it was not clear what opportunity the candidate was trying to explain,
however. For example, comments such as ‘we will have a lot of information about
gamers’ were provided but there was no development to explain how or why this
manifested itself into an opportunity for NT.

Key opportunities that most candidates did not point out were encouraging in-game
spending in existing games, designing games that encouraged in-game spending
and encouraging conversion to a paid model (from information in Exhibit 4).

Examiner’s report – SBL March/June 2023 19

The notes for ‘opportunities’ were often a repeat/rewording/explanation of the points
raised in Exhibit 7, with little or no application to computer games and NT. Frequently
candidates included verbatim references to streaming and ‘romantic shows’.

A number of candidates provided detailed explanations of big data and the Vs which
unfortunately earned them no marks.

The ‘threats’ part of the task tended to be better than the ‘opportunities’ part. Many
candidates were able to provide a reasonable discussion of external threats such as
hacking and the use of sensitive data, and the significant costs of collecting and using
big data. Some candidates managed to extend the same threat (usually cybercrime)
over too many, repetitive points and/or go into some detail on mitigations for
cybercrime (using content from their answer to task 2b), however.

Answers frequently failed to cover the difficulties arising from the use of big data such
as the need for expertise to analyse the data, the risk of data overload, the risk of
wrong decisions being made due to low veracity and the potential distraction for
management on top of the distraction due to diversification.

There were often references to difficulties or problematic features without an

explanation of why these were a threat to NT.

Answers were sometimes too general or drifted away from big data to computer games
in general or to the opportunities and threats of operating a computer system. For
example, reference was sometimes made to the use of chat features. This is not an
opportunity of big data but a feature of a game or a technical support tool.
It was encouraging that the majority of candidates used the slides and notes
response area and on the whole the layout and use of the slides and notes was
good, representing an improvement on previous diets.
The main weaknesses were:
- Wasting time generating irrelevant content on, for example, the Vs, which earned
no marks.
- Failure to develop points to explain how the opportunity or threat directly
benefited or impacted NT.
- A lack of clarity about what the actual benefit or threat would be to NT.
- Cutting and pasting of (sometimes irrelevant) content from Exhibits 4 and 7, with
little or no application to NT.
- Including content on computer games in general or the opportunities and threats
of operating a computer system,
Where the candidate had presented a good range of well-applied and well-expressed
points on both the opportunities and threats of big data then communication was
effective and good professional marks were awarded. However, if the answer was
brief, poorly expressed so as to be unclear and/or not appropriately applied to NT’s
specific use of big data then communication was weak and low professional marks
were awarded. Most candidates were articulate and hence able to clarify the threats

Examiner’s report – SBL March/June 2023 20

to NT compared with the opportunities. A lack of clarity on the actual opportunities
presented therefore often limited candidates’ professional marks.

Examiner’s report – SBL March/June 2023 21