of p3 bpp

Tutor Contact Details

• BPP Professional Education

19 Hilary Street

St Helier

Jersey CI

Health & Safety Procedures

• Fire Alarm

• Fire Exits

• Assembly Point

• First Aid

Course Administration

• Start and finish times

• Breaks

• Daily attendance register

Facilities

• Toilets

• Refreshments

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Classroom Tuition and Home Study

• Classroom tuition

– Key areas of the syllabus

• Home study

– Home study is vital for this paper

– Question practice essential

– Guidance at the end of each day

• ACCA Forum – www.bpp.com/accaforum

• Helpline for queries

SECTION A + max 1 SECTION B

A Strategic position

B Strategic choices

C Strategic action

SECTION B - rest of questions

D Business process change

E Information technology

F Quality issues

G Project management

H Financial analysis

I People

Examiner and format of the exam

Section Marks Question type

A 50 Compulsory case study

Up to 5 separate requirements

Quantitative data included

B 50 2 questions from 3

25 marks each

Can come from any part of syllabus

Examiners: Steve SkidmoreExaminers: Steve Skidmore

What is P3 about?

Approach to P3

• Imagination

– Think of ideas on behalf of an organisation– What changes should be made to this business?

• Spontaneity

– Think of ideas under time pressure– Exam tests what you think NOT what you remember

• Professionalism

– The way you set the answer out– Headings; Fluent business style

Chapter 2

What Is Strategy ?

What is strategy – 3 Lenses

“The direction and scope of an organisation over the long term that achieves advantage for the organisation through its configuration of resources within a changing environment, to meet the needs of markets and to fulfil stakeholder expectations”

1. Design Lens – Rational Planning

2. Experience Lens – Emergent Strategies

3. Ideas Lens – Freewheeling Opportunism

The Rational Model

MISSION &OBJECTIVES

CORPORATEAPPRAISAL

STRATEGICOPTIONS

STRATEGICCHOICE

STRATEGICIMPLEMENT

STRATEGICCONTROL

ENVIRONMENTANALYSIS

POSITIONAUDIT

Position

Choice

Action

Mintzberg’s Emergent strategies

Intended strategy

Unrealised strategy

Deliberate strategy

Emergent strategy

Realised strategy

Chapter 3

Mission, Objectives, Stakeholders: The Goal

Mission and objectives

Vision

Mission

Goals

Objectives

Objective setting

Mission

Horizontal consistency

Time consistency

Corporate

Business

Operational

Individual

Vertical consistency

Mission and Objectives

SPV’s

• Strategy

• Purpose

• Values

• Standards of behaviour

SMART

• Specific

• Measurable

• Attainable

• Relevant

• Time bound

Mendelow’s Matrix

Interest

Power

Low

Low

High

High

Minimal Effort Keep Informed

Keep Satisfied Key Players

Cultural web

Org’nstructure

Symbols & Titles

Controlsystems

Rituals & routines

Myths & stories

Organisational Assumptions

(Paradigm)

Power relations

Chapter 4

Environmental Analysis

P L

S T

Competition

Market

FirmSupply Chain

The Environment

E E

PESTEL – External Analysis

• Political

• Economic

• Social and Demographic

• Technological Developments

• Environmental

• Legal

Firm strategy, Structure and Rivalry

Related and supporting industries

Demand conditions

Porter’s Diamond

Factor conditions

Porter’s 5 Forces

SUPPLIERS

POTENTIALENTRANTS

BUYERSCOMPETITION AND RIVALRY

SUBSTITUTES

Barriers to Entry

Chapter 5

Position Audit

9 M’s

1. Manpower – Human resources

2. Money – Financial resources

3. Machinery – Operational resources

4. Materials – Purchasing & suppliers

5. Markets – Marketing and Distribution

6. Management – Corporate, Tactical & Operational

7. Methods - Processes

8. Make Up – Structure & Culture

9. MIS – IT & IS

Resources & Competences

Threshold & Unique

Portfolio Analysis- BCG Matrix

Relative Market Share

Market or Industry Growth Rate

H

H

L

L

Star

Question Mark or Problem Child

Cash Cow Dog

Product Life Cycle

£

Time

Sales

Cashflows

Intro Growth Mature Decline

InboundLogistics

Operations OutboundLogistics

Marketing& Sales

Service

Primary Activities

Procurement

Human Resource Management

Technology Development

Firm Infrastructure Support Activities

Value Chain

Value system and networks

Supplier Company Distributor

Customer

Customer

Supply chain managementCustomer relationship

management

Chapter 6

Corporate Appraisal

INTERNAL : RELATIVE TO COMPETITION

WEAKNESSESSTRENGTHS

EXTERNAL: PRESENT TO ALL INDUSTRY MEMBERS

OPPORTUNITIES THREATS

SWOT Analysis

TOWS

• SO – generate revenue

– Use Strengths to grasp opportunities

• ST – resource neutral

– Use Strength to counter threat

• WO – resource neutral

– Address weakness to exploit opportunity

• WT – require resources from SO

– Avoid threats to defend weakness

Chapter 7

Strategic Options Generation

Corporate Parent & SBU

Ashridge Model

(a) Heartland businesses can benefit from the attention of the parent without risk of harm from unsuitable developments.

(b) Ballast businesses are well-understood by the parent, but need little assistance. They would do just as well if they were independent businesses.

(c) Value trap businesses provide good opportunities for parenting, but these opportunities do not relate to the SBU's CSFs. They should only be retained if they can be moved into the heartland; this will require the parent to acquire new skills and resources.

(d) Alien businesses have no place in the portfolio.

Low Benefit High

Low

F

eel

Hig

h

Alien Business

Value trap Business

Ballast Business

Heartland Business

Cost leader

DifferentiatorStuck in middle

Porter’s Generic Strategies

Low CostLow Cost High CostHigh Cost

Low PriceLow Price

High PriceHigh Price

High CostHigh Cost

Low PriceLow Price

High ProfitHigh Profit

High ProfitHigh ProfitLow ProfitLow Profit

Basis of Competitive Advantage

SCOPE

COMPETITIVE BASIS

Broad

Narrow

Cost Leadership

Differentiation

Cost Focus

Differentiation Focus

Low cost Differentiate

Direction of growth - Ansoff’s Matrix

MARKET

PRODUCT

Present

New

Withdrawal

Consolidation

Penetration

Product Development

Market Development

Diversification

• Related

• Unrelated

Present New

Methods of growth - Lynch’s Matrix

Home

Abroad

Organic Growth

Mergers, Acquisitions

Joint ventures, Alliances

Franchises, Licences

Export

Overseas Office

Overseas Production

Multi-national

Global

Internal External

Mergers, Acquisitions

Joint ventures, Alliances

Franchises, Licences

Evaluating Strategic Options

Suitable

- To achieve mission

Acceptable

- To Stakeholders

Feasible

- Given resources

Three Steps to Success

Step 1Learning

Taught course

Step 2Practice and

revise

Revision course

Step 3Final

rehearsal

Question day

Examiners Approach

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ACCA P3 – Business Analysis

A Markers Eye View

Prepared by ACCA P3 Marker

A Markers Eye View - Content

1. What we do with your script

2. What we like

3. What we don’t like

1. What we do with your script

• Before we get the papers

• Check the boxes/bags/files contain the right papers

• Read every single page

• Check calculations

• Don’t read what’s not there

• 10 mins to mark (approx)

2. What we like

• Neat & tidy scripts

• Clear labelling

• New question on a new page

• Space

• Headings for each part

• Correct format/approach

3. What we don’t like

• Untidy/cramped scripts/one side only answers

• Disorganised scripts

• Underlining what YOU think is key

• PTO!

• Poems/prayers/notes to the marker

• Not answering the question

• Students who fail to gain the “easy” marks

• Too long/short answer for the marks

Examination Techniques

• Read question

• Underline key words

• Structured or unstructured?

• Scoring plan

• Mind map (Answer plan)

• Full Answer

• Format / layout

• Spaces; Underlining; Bullet points

• List; Explain; Example

• Pros and Cons

• State the obvious

• Does it answer the question asked?

Answer planning – ONA Q46

(a) Using the information provided in the scenario, evaluate the strengths and weaknesses of ONA and their impact on its performance. Please note that opportunities and threats are NOT required in your evaluation. (20 marks)

(b) The CEO of Oceania National Airways (ONA) has already strongly rejected the re-positioning of ONA as a ‘no frills’ low-cost budget airline.

(i) Explain the key features of a ‘no frills’ low-cost strategy. (4 marks)

(ii) Analyse why moving to a ‘no frills’ low-cost strategy would be inappropriate for ONA.

Note: requirement (b) (ii) includes 3 professional marks (16 marks)

(c) Identify and evaluate other strategic options ONA could consider to address the airline’s current financial and operational weaknesses.

Note: requirement (c) includes 2 professional marks (10 marks)

(Total = 50 marks)

Mind Map ONA

• ..\..\Course Material\ACCA & CAT\ACCA P3 Business Analysis Answer Plans\J09 Question 46 Oceania National Airways.mmap

Answer planning – NMS Q45

(a) Assess the macro-environment of NMS by undertaking a PESTEL analysis. (10 marks)

(b) Using appropriate models and financial and quantitative data from

the scenario, provide an environmental and financial analysis of NMS, highlighting problem areas. (25 marks)

(Including 4 professional marks)

(c) Ray is considering three main exit options from the business as it currently exists. Assess each of the three identified exit options in terms of their ability to solve the problems highlighted in your analysis and in terms of Ray’s future role in the business. (15 marks)

(Total = 50 marks)

Answer planning – NMS Q45

(a) Assess the macro-environment of NMS by undertaking a PESTEL analysis. (10 marks)

(b) Using appropriate models and financial and quantitative data

from the scenario, provide an environmental and financial analysis of NMS, highlighting problem areas. (25 marks)

(Including 4 professional marks)

(c) Ray is considering three main exit options from the business as it currently exists. Assess each of the three identified exit options in terms of their ability to solve the problems highlighted in your analysis and in terms of Ray’s future role in the business. (15 marks)

(Total = 50 marks)

Mind Map NMS

..\..\Course Material\ACCA & CAT\ACCA P3 Business Analysis Answer Plans\J09 Question 45 NMS.mmap

Example - SWOT

• Identify

– Name the Strength

• Justify

– Why do you think this is a strength?

• Apply

– How can the organisation use this strength?

– What will the impact on the business be?

• The financial situation and cash reserves are a strength of this business

• This means that they have financial stability and will be able to invest in future opportunities without raising additional funds

• For ABC Ltd, this means that they will be able to invest in R&D to develop new products and be the first to market with product XYZ, which will give

them competitive advantage

Tutor Contact Details

• Gary Millns

• BPP Professional Education

19 Hilary Street

St Helier

Jersey CI

• +44 (0) 1534 711811

• [email protected]

ACCA Paper P3 – Business Analysis

Thank you for attending

Good Luck with your studies!Dec 2009 Exams

of p3 bpp

Documents

identified

acquisitions

main exit

rays future

oceania national

highlighting

cost budget

materialacca