Evaluate the usefulness to SBC of force field analysis as a means of making the strategic choice between option A and option B.

Mark scheme

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

1. Relevant context for Option A (Online training) and Option B (Joint venture in country Y):
2. Option A: Initial cost to SBC: $1.5m; Estimated payback period: 3 years; Main driving forces: SBC expertise in delivering courses and qualifications, Evidence from research of interest in entrepreneurship courses; Main restraining forces: Reliance on internet infrastructure, SBC lack of experience of delivering online courses; Estimated chance of success: 0.7
3. Option B: Initial cost to SBC: $3m; Estimated payback period: 5 years; Main driving forces: Social enterprise business has expertise in education, Low competition from existing colleges in country Y, Possible government subsidy for social enterprise business; Main restraining forces: SBC lack of knowledge and experience in country Y, Likely change of government in country Y in 2022; Estimated chance of success: 0.6
4. Knowledge:
5. Meaning of strategic choice as part of strategic management.
6. Definition and understanding of force field analysis as a technique of strategic choice.
7. Reference to other strategic choice techniques such as Ansoff Matrix, decision trees and investment appraisal.
8. General importance of SM for a growing business that needs to make choices
9. Reference to strategic analysis techniques when preparing for choice such as SWOT, PEST, Boston matrix, Porter's Five Forces, Core competencies and others.
10. What will success look like in this context?
11. Application:
12. Option 1 is potentially product development, whereas Option 2 market development (Ansoff)
13. Use of the driving/restraining forces for two options – appendix 1 data.
14. Force field analysis -the balance between driving and restraining forces?
15. Use of these forces in answer such as SBC's expertise in delivering course
16. Comparison of options using the Appendix 1 and other techniques.
17. Comparison of likely risks/returns. Decision tree probabilities:
18. Option A has a higher estimated chance of success 0.7 v 0.6.
19. Payback of Option B is two years longer.
20. Initial cost and high gearing
21. Analysis:
22. How techniques may be used and the advantages and disadvantages.
23. Force field analysis encourages managers to consider different aspects of a decision.
24. By identifying restraining forces action can be taken to mitigate negative effects and reduce risk.
25. Visual summary of factors in a decision. Helps focus attention on the most important forces affecting the decision. Facilitates discussion of these points to enhance decision making.
26. Forces can be weighted thus improving decision making.
27. Subjective forces are objectified by giving them a weighting focusing attention on important issues and making it easier to compare force for and against change.
28. Role of other techniques in decision making that consider the quantitative aspects of the choices.
29. Use of probabilities in decision trees therefore reducing risk for SBC of option choice.
30. Payback enables SBC to choose option with quickest payback which will have a positive impact on SBC's liquidity
31. The use of techniques to analyse aspects of the options.
32. How different SC techniques may be used (Ansoff, decision tree) to make choice.
33. Link with SBC future objectives, e.g. how could conversion to plc be relevant?
34. Evaluation:
35. Very dynamic nature of this market, need to keep up with trends in demand and technology.
36. Impact of management objectives and attitudes – will director's vote be final decision maker? Or will Sateja make the final choice?
37. Weighting of the driving and restraining forces is subjective. Has Sateja manipulated the data to support her preferred option of joint venture?
38. Bias and hidden agenda in formulating the analysis. Disagreements about relative importance.
39. Forces may be missed from the analysis.
40. Justification of most useful choice technique with supporting argument.
41. Comparison of use of force field analysis with other SC techniques
42. Elements that the evaluation/judgement might depend on: Effective integration of analysis and choice techniques will be important. Ability of the individual(s) completing the FFA. Accuracy of forecast data?
43. Significance of other factors that may also be important: FFA unlikely to be sufficient to make decision. Needs to be used alongside other choice techniques taking into account both quantitative and qualitative factors. Impact of management objectives and attitudes. Availability of finance (these may be included in the FFA). Other information that could be useful? In particular, PEST factors for countries X and Y