Evaluate the usefulness of the information in Appendix 4 for the directors of PAC as they make the strategic choice between Option 1 and Option 2.

Mark scheme

Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.

1. [1] Knowledge: Meaning of strategic choice, strategic analysis as strategic management techniques
2. [1] Knowledge: SWOT and PEST, Porter's 5 forces, Boston Matrix, core competencies, vision and mission statements, as strategic analysis techniques when preparing for choice
3. [1] Knowledge: Ansoff, force field analysis, decision trees as SC techniques
4. [1] Application: Option 1 is potentially product development, whereas Option 2 market development.
5. [1] Application: Use of the techniques/factors for two options – Appendix 4 data.
6. [1] Application: Comparison of options using Appendix 4 and the techniques, e.g. comparison of likely risks/returns
7. [1] Analysis: How techniques may be used and the advantages and disadvantages
8. [1] Analysis: How might SWOT, PEST and other SA techniques be used to find out where the company is now?
9. [1] Analysis: Analysis of Appendix 4 in context
10. [1] Analysis: Why might techniques, such as e.g. Ansoff's Matrix, help in comparing the options and making the choice
11. [1] Evaluation: Very dynamic nature of this restaurant / fast food market
12. [1] Evaluation: Other information that could be useful? Limitations, e.g. of predicted probabilities?
13. [1] Evaluation: Impact of management objectives and attitudes
14. [1] Evaluation: Long and short term impacts