Evaluate the importance of strategic analysis for PV when considering options A and B.

Mark scheme

Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.

1. Note to examiners: A recommendation for Option A or B will NOT fully answer the question.
2. Answers could include:
3. Explanation of strategic analysis and its techniques – SWOT, PEST, Boston Matrix, Porters 5 Forces, core competencies.
4. Place of strategic techniques in strategic management
5. Critical comments on the techniques
6. Recognition that Option A and B are marketing options and that marketing planning concepts may be used
7. Application of these techniques to Option A or B
8. Example: Option A – designer shoes
9. SWOT - strengths and opportunities but note weaknesses
10. PEST - increasing interest in designer shoes, increasing middle class incomes, advanced machinery and new materials
11. Boston Matrix – only "cash cows" in current product range
12. Porters 5 Forces – faces threat on new competition, high bargaining power of customers and suppliers but little threat of substitutes means high degree of rivalry in current markets
13. Core competencies – variety of shoes made in response to demand
14. Possible conclusion
15. All techniques indicate a change of emphasis could be highly beneficial and Option A strongly worth considering
16. Option B - alter target markets and distribution methods
17. SWOT - strengths, especially existing sales networks but note weaknesses
18. PEST – export market shows little sign of change except exchange rate and possible increasing interest in expensive exclusive shoes, domestic market increasing,
19. Boston Matrix – only 'cash cows' in current product range
20. Porters 5 Forces – faces threat of new competition, high bargaining power of customers and suppliers but little threat of substitutes means high degree of rivalry in current markets
21. Core competencies - variety of shoes made in response to demand
22. Possible conclusion
23. All techniques indicate a change of emphasis could be highly beneficial and Option B strongly worth considering, if additional distribution networks set up.
24. Application
25. Information from case used in strategic analysis techniques