Strategy****

Different models for strategic planning process:

1. Rational Planning model – strategic choice, strategic option, strategy in action
2. Johnson & Scholes- 3 levels of strategy —> corporate strategy, business strategy, operational
strategy
3. Johnson & Scholes- 3 lenses —> experience, ideas, design.
4. Mintzberg’s 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
Porter’s national diamond- reasons why some companies in a particular country have competitive
advantage than companies from other countries.

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

Industry life cycle
Porter’s 5 forces

***** Strategic capability****

Mckinsey’s 7S
Porter’s value chain -appraise internal aspects of org.
porter’s 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).
Porter’s 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

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*****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
Harmon’s 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)
tuckman’s stages of formation – stages before starting the project
Belbin’s personality mix- personalities in the group

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

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

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Ch 1: Strategy
Different models for strategic planning process:
1. Rational Planning model – strategic choice, strategic option, strategy in action
2. johnson & Scholes- 3 levels of strategy —> corporate strategy, business strategy, operational
strategy
3. Johnson & Scholes- 3 lenses —> experience, ideas, design.
4. Mintzberg’s emergent strategies
Ch 2: 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)
Ch 3: Environment
Johnson & Scholes- key drivers of change (why do things change?) —> (market globalisation, cost
globalisation, global competition, economic, environmental, legal).
Pestel- analysis of external environment
Porter’s national diamond- reasons why some companies in a particular countries have competitive
advantage than companies from other countries.
Ch 4: Competition and markets
Industry life cycle
Porter’s 5 forces
Ch 5: Strategic capability
Mckinsey’s 7S
Porter’s value chain -appraise internal aspects of org.
porter’s value network – extends the idea of value chain to include customers and suppliers
Product life cycle
TARA framework – dealing with risks
Ch 6: strategic options
Ansoff matrix – used to generate strategic options
BCG matrix (under product development).
Porter’s generic strategy (under market penetration). —> cost leadership, product differentiation,
focus group.
Strategic clock – look at price and added value
Ch 7: Strategic choice
Johnson & Scholes- strategic rationale – ways head office can create value in each business they
own —> portofolio 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

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Ch 8: Finance
Limiting factors
Make or buy
Closure or continuing decisions
Special contracts
ratio analysis
Regression, time series analysis
Ch 9: Marketing
Marketing mix (7 Ps)
CSF and KPIs
Ch 10: Business process
Rummler and Brache- Gaps and disconnecting
Harmon’s process- strategy mix
Ch 11- Ebusiness
6 stages of using IT (initiation, contagion, control, intergration, data adminstration, maturity).
Suppy chain: upstream, downstream
6Is for e-marketing
customer life cycle
Ch 12: People in organisation
Organisational structure (fuctional, divisional, matrix)
Mintzberg structural configuration (ideology, strategic apex, middle line etc)
Ch 13: Project management
Project gateways- method to run a project
Wards & Daniels – types of benefits (how benefits can be measured)
tuckman’s stages of formation – stages before starting the project
Belbin’s personality mix- personalities in the group
Ch 14: Change and development
Balogun & Hope Hailey – contextual features for stakeholders to consder before accepting change
Lewin’s force field analysis – forces at work whenever a change is considered
Lewin’s 3 step process- stages necessary for something to change (unfreeze, freeze, refreeze)

Smart~objective should be
Prime ~ objective function
Abcde~value chain create value
Sos tac~planning framework
Smsm erp~turnaround strategy
Coppit~ethic

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PID covers OSCAR ( Objectives , Scope , Constraints , Authority , Resources)

IPECC : Stages of Project Life cycle.

Initiation
Planning
Executuon
Control
Completion

IPECC : Stages of Project Life cycle.

Initiation
Planning
Executuon
Control
Completion

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

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

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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 plc’s 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 GET’s 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?

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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 AutoFone’s
retail shops division.
3. Dec 2009, Q1, a) 20 marks
Using Porter’s 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 plc’s 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 GET’s current strategic position from both
an internal and external perspective
8. June 2013, Q2, a) 15 marks
Use Porter’s 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,

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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 airline’s 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.

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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 Harmon’s 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 iCompute’s 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.

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Required:
Use Harmon’s 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 General’s 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
General’s 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 company’s
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?

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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 executive’s 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 infl 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 financial and non-financial measures, the attractiveness, from Swift’s
perspective, of EVM as an acquisition target.
2. Dec 2011, Q1 b) 16+4prof.marks
GET’s 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 GET’s proposed strategy.

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