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ACCA P3

Business Analysis (BA)

商务分析

ACCA Lecturer: Claudia Zheng

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Brief Introduction and Course Overview

Chapter 1 Strategic Position

P3 Chapter 1 Contents


A Brief Introduction to Exam Questions

Section Marks Question Type

A 50 Compulsory Case Study - Up to 5 separate requirements

- Quantitative data will be included

B 50

2 Questions from 3 - 25 marks each

- can come from any part of syllabus

but a maximum of 1 question from

strategy (Section A-C)


Pass Rate Review

Exam Session P1 P2 P3 Exam Session P1 P2 P3

June 2008 49 48 49 December 2011 51 48 51

December 2008 53 54 52 June 2012 53 49 48

June 200948 48 44 50 December 2012 50 49 48

December 2009 49 58 48 June 2013 49 49 51

June 2010 53 47 51 December 2013 48 49 49

December 2010 51 51 48 June 2014 52 47 46

June 2011 52 50 47 December 2014 52 50 48


Course Overview


Learning Tips

- Cultivate a business sense overall

- Knowledge: master all the models in textbook

- Practice with the past papers (the most valuable material)

independently and carefully

- Revision before the exam


Study Guide

A. Strategic Position

B. Strategic Choices

C. Strategic Action

D. Business Process Change

E. Information Technology

F. Project Management

G. Financial Analysis

H. People


Chapter 1 Strategic Position

Knowledge Base (Models)


The Rational Model


2008 Dec. Q2 (a)

2012 Dec. Q2 (a) Required

Example Questions

In the context of MMI’s corporate-level strategy, explain the

rationale for MMI acquiring First Leisure and Boatland and assess

the subsequent performance of the two companies. (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. (15 marks)


Johnson, Scholes, Whittington

Strategic position/analysis

Strategic choices Strategy into action


Mintzberg's Emergent Strategies

Mintzberg’s Emergent Strategies


Strategic Lenses

Three ways of viewing “strategy”


Example Questions

2008 Dec. Q1 (c)

Examine the different insights each of these lenses gives to

understanding the process of strategy development at the National

Museum. (15 marks)

Note: requirement (c) includes 2 professional marks.


Answer Analysis Part 1

(c) The design lens views strategy as the deliberate positioning of

an organisation as the result of some ‘rational, analyical, structured

and directive process’.

Through the design lens it is the responsibility of top managment to

plan the density of the organisation. Lower levels of management

carry out the operational actions required by the strategy. The

design lens is associated with objective setting and a plan for

moving the organisation towards these objectives.


Answer Analysis Part 1 Cont’d

In the context of the secnario, the government is now significantly

involved in the objective setting and trying funding to those

objectives.

The Director General has responsibility for defining and delivering a

strategy within these objectives. There is evidence that he has

gone about this in a ‘top-down’ way and not sought adivce from

current employees.



On the television programme, employees were particularly critical

of a lack of consultation; ‘these proposals have been produced with

no input from museum staff. They have been handed down from

on-high’.

In many ways, the approach taken at the National Museum under

the new Director General represents the desin lens view of strategy.

Such an approach is not unusual in public sector organisation,

where elements of strategy are dictated by governemnt manifestos.



Strategy as experience provides a more adaptive approach to

strategy, building on the chaning the existing strategy. Changes are

incremental as the organisation adapts to new opportunities and

threats in the environment.

The experience lens views strategy development as the

combination of individual and collective experience together with

the taken-for-granted assumptions of cultural influences. However,

it has to be recognised that the assumptions and practices of the

organisation may become so ingrained that it is difficult for people

to question or change them.



This certainly appears to be true for the heads of collection sections

at the National Musuem. The museum is now facing a fundamental

change in the way it will be funed and the increased influence of

the government suggests a change in the paradigm of the

organisation.

It seems unlikely that people with a vested interest in the current

arrangement and perpetuating that current arrangement will come

up with the change in strategy that is now required.



The ‘taken-for-granted’ behaviour of people in organisations is one

of the major barriers to developing innovative strategies. Strategy

as experience seems innately coservative. It could work well when

a small incremental change is required within a stable environment.

However, this does not appear to be the situation at the National

Museum and so developing strategy as experience may not seem

a possible way forward and perhads this is why the Director

General explicitly rejected this approach.



Strategy as ideas has a central role for innovation and new ideas. It

sees strategy as emerging from the variety and diversity in an

organisation. It is as likely to come from the bottom of the

orgnisation as from the top.

Consequently, the organisation should foster conditions that allow

ideas to emerge and to be considered for inclusion in a ‘manstream

strategy’. Certain conditions, such as a changing and upredictable

environment foster ideas and innovation.



It could be argued that the macro-evironmental conditions for

adopting this lens are present at the National Museum. Political,

social and environmental influences might lead to new ideas --- for

example, the relocation of the museum and the exploitation of on-

line access to resources creating a virtual museum.

The museum is undergoing a fundamental change in priorities and

funding and the consequences of these changes is unpredictable.

On the other hand, the museum is a long-established conservative

organisation with many symbols of hierarchy and deference.



There is no evidence in the scenario of a group of people

generating conflicting ideas and encouraged to compete with each

in an open and supportive environment.

The National Museum seems to be dominated by powerful

individuals protecting their own interests.

Finally, a key factor in the selection of idea is the marketplace. The

National Museum is currently operating in a protected economic

environment, although this is set to change.



There is plenty of evidence to suggest that it is difficult to change

strategies in a hierarchical or deferential structure. At the National

Museum the Director General decided to pursue a designed

strategy.

In many ways this appeared to be the natural lens to adopt given

the objectives set by the newly elected government that was

beginning to exert its power.


Answer Analysis Part 4 Con’d

This strategy may have worked if he had been more sensitive to

the cultural web and, also, if he had not asked for the backing of

the Board of Trustees.

This was always unlikely to be forthcoming given its composition.

The paradigm change means that it is unlikely that the experience

lens would have proved fruitful.

However, it may have been possible to exploit strategy as ideas if

the Director General had carefully selected heads of collection

sections who were relative losers under the current system.


Levels of Strategic Planning


1. It establishes long-term objectives for the organisation,

and plans for achieving those objectives.

2. The organisation is much better coordinated.

3. It can take time to implement new plans and it can also

take time before changes have a noticeable effect.

4. Management should seek to control the future.

5. The organisation is forced to look ahead.

Advantages of Strategic Planning


1. Too much time spent planning and not enough time spent on

action- ‘paralysis by analysis’.

2. Inflexibility. No plan will remain appropriate over five years. It is

essential to be prepared to abandon inappropriate parts of the

plan and to take up new opportunities which might present

themselves.

3. Too slow to react to changing circumstances

4. Planning has a cost in time and money, which can become too

high if not monitored.

5. ‘Head-in-the-sand’ attitude: it is not the plan, so we won't do it;

it is in the plan so we do it, no matter what.

Potential Disadvantages of Strategic Planning


Other Views - Incrementalism

1. Incrementalism suggests strategy can be relatively small to

cautious period.

2. Strategic managers do not usually carefully evaluate all

options.

3. Managers can not know all relevant facts (bounded rationality).

4. Unexpected, unpredicted events will happen over the course

of a rational planning period.


Freewheeling Opportunism

1. Do not like planning (restrict thought process and flexibility)

2. Often entrepreneurs (start business but not running business)

3. Grab opportunities as they arise (personality. e.g. travelling)


Past Papers DIY

2008 June Q1 (b)

Write a brief paper for the CEO to submit to the strategy planning

committee explaining why the retial shops division should continue

to be a key part of Autofeone’s future strategy. (15 marks)

Note: Requirement (b) includes 3 professional marks.

2010 June Q1 (a)

Undertake assessment, required by Sheila Jenkins, of the strategic

position of WET (21 marks)

Note: This question required an assessment of the environment,

capability, stakeholder expectations and mission of WET


Past Papers DIY Cont’d

2011 Dec. Q1 (a)

Using appropriate models and frameworks, analyse GET’s current

strategic position from both an internal and external perspective.

(20 marks)

Note: Requirement (b) includes 3 professional marks.

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