Evaluate the usefulness of any two techniques of strategic analysis to PGP's Board of Directors.

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

1. [Knowledge] SWOT/PEST/Boston Matrix/Porter/core competencies/may refer to mission/vision statements.
2. [Application] S - rapid growth; profitable; increasing productivity; vertically integrated business
3. [Application] W - too dependent on fossil fuels; performance compared to industry average; tall/rigid hierarchical structure
4. [Application] O - renewable energy; new oil field; further outsourcing
5. [Application] T - competition; trend towards renewables; climate change
6. [Application] P - change of government – re-nationalisation?
7. [Application] E - global downturn hitting demand
8. [Application] S - population growth increasing demand
9. [Application] T - new technology in renewables
10. [Application] Other techniques could be applied.
11. [Analysis] Helps a business establish 'where it is now and where it wants to be'
12. [Analysis] Analyses internal conditions of the business and external environment
13. [Analysis] Helps to establish the strategies that might be adopted in future to meet corporate aims.
14. [Evaluation] Needs keeping up to date – has it been in this case?
15. [Evaluation] What strategic analysis was undertaken before Option A and B were selected as alternative strategies?
16. [Evaluation] Some techniques can be subjective e.g. Operations Director might be opposed to renewable energy or climate change might be contested.
17. [Evaluation] Some strategic analysis essential as new projects in this industry are very expensive and very long term – difficult to reverse once decided on.