Evaluate the usefulness of strategic analysis techniques when making decisions about the future direction of SWF.

Mark scheme

Marking points from the official mark scheme (May/June 2019). The mark or mark type is shown in brackets.

1. Explanation of strategic analysis and its techniques – SWOT, PEST, Boston Matrix, Porters 5 Forces, core competencies.
2. Place of strategic techniques in strategic management
3. Critical comments on the techniques
4. Need to understand the external environment – requiring a detailed PEST analysis
5. SWOT applied to SWF
6. Strengths e.g. reputation for quality, scale of production
7. Weaknesses e.g. lack of contingency planning, inadequate QA systems, high gearing
8. Threats e.g. changing demographics and tastes in society
9. Opportunities e.g. organic market growth
10. PEST applied to SWF
11. Technological e.g. automation and impact on costs
12. Economic e.g. changes to minimum wage, change to exchange rate/trade relations
13. Social e.g. demographic changes
14. Political/legal e.g. regulations regarding milk processing
15. Relevant application of other techniques e.g. Boston Matrix etc
16. Analysis of how changes identified might guide strategic decisions
17. Focus on strengths will reduce risk to the business
18. Identification of weaknesses that need to be addressed when making decisions or alternative sought e.g. financing
19. Anticipating changes to the external environment will enable SWF to take decisions to reduce risk take advantage of opportunities
20. Clear conclusion as to the importance of strategic analysis and/or techniques including:
21. Critical comments on the techniques
22. Importance of understanding where the business is now in order to generate ideas and/or support for expansion
23. Comments that strategic analysis on its own is not enough to fully support a decision
24. Subjective interpretation of the models – one manager’s opinion of SWOT may be very different to another’s
25. SWF operate in a dynamic environment so analysis may quickly become outdated
26. Weighing up importance of other stages in strategic management especially objectives and choice techniques in relation to strategic analysis
27. Ranking the usefulness of the techniques in relation to expansion plans
28. An assessment of the importance of timing and a timescale in carrying out analysis.