Evaluate the usefulness of strategic analysis techniques in identifying future growth strategies for Inolla.

Mark scheme

Marking points from the official mark scheme (May/June 2021). The mark or mark type is shown in brackets.

1. [1] Definition: the process of conducting research into the business environment within which an organisation operates, and into the organisation itself, to help form future strategies.
2. [1] Explanation of strategic analysis and its techniques – SWOT, PEST, Boston Matrix, Porter's 5 Forces, core competencies.
3. [1] Place of strategic techniques in strategic management.
4. [1] Identification of weaknesses / strengths of the techniques.
5. [1] Need to understand the external environment – requiring a detailed PEST analysis.
6. [1] SWOT was completed in 2018 – 3 years ago. It is out of date.
7. [1] Use of information from Table 3 linked to future growth.
8. [1] Use of information from Table 4 linked to future growth.
9. [1] Information covers the shared micromobility market.
10. [1] Accuracy of 2018 SWOT in relation to current situation e.g. issue of quality control and battery fires.
11. [1] Link between SA and introduction of ERP.
12. [1] Core competencies – design.
13. [1] Analysis of how changes identified might guide strategic decisions.
14. [1] Focus on strengths will reduce risk to the business.
15. [1] Identification of weaknesses that need to be addressed when making decisions or alternatives sought e.g. financing.
16. [1] Anticipating changes to the external environment will enable Inolla to take decisions to reduce risk and take advantage of opportunities.
17. [1] SA will help reduce the risk of decisions taken by Inolla as it will help Inolla build on their core competencies and strengths and highlight weaknesses that need to be resolved.
18. [1] SA takes time to do in terms of management focus, reducing time available for other tasks.
19. [1] Boston Matrix as part of product portfolio analysis could help identify cash cows and dogs. This information can be useful in ensuring that Inolla maintains a balanced product portfolio and identify products for divestment.
20. [1] Porter's Five Forces: Power of buyers, suppliers, threat of substitutes, barriers to entry and competitive rivalry helps Inolla make decisions about markets to enter and reduces risk by considering factors that affect success.
21. [1] Importance of understanding where the business is now in order to generate ideas and/or support for expansion.
22. [1] Judgement/evaluation about usefulness of strategic analysis techniques supported by argument.
23. [1] Elements that the evaluation/judgement might depend on such as: Strategic analysis needs to be reviewed regularly. It appears that Inolla has been slow to use the analysis originally completed.
24. [1] Inolla operates in a dynamic environment so analysis may quickly become outdated.
25. [1] Subjective nature of SWOT analysis.
26. [1] An assessment of the importance of timing and a timescale in carrying out analysis.
27. [1] Subjective interpretation of the models – one manager's opinion of SWOT may be very different to another's.
28. [1] Critical comments on the techniques.
29. [1] Evaluation of other factors that influence options such as: Comments that strategic analysis on its own is not enough to fully support a decision.
30. [1] Attitude of directors, Attitude to risk.
31. [1] Justification of most useful technique(s) with supporting argument.
32. [1] Ranking the usefulness of the techniques in relation to expansion plans.
33. [1] Weighing up importance of other stages in strategic management especially objectives and choice techniques in relation to strategic analysis.