Evaluate two strategic analysis techniques that NFP should use when considering future strategic options.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

1. [20] Strategic analysis is analysing the business and the environment in which it operates before choosing between strategic options
2. [20] SWOT – will help to identify internal strengths) and internal weaknesses and external threats and opportunities
3. [20] PEST (PESTLE) – external environment also important
4. [20] Establishing core competencies
5. [20] Porters 5 forces – competitive rivalry
6. [20] Boston Matrix – for analysis of product portfolio linked to market share and market growth
7. [20] SWOT – will help to identify internal strengths (brand image, quality products) and internal weaknesses (trying to do too much at same time?) and external threats (many competitors in country X) and opportunities (fewer competitors in country Y)
8. [20] PEST (PESTLE) – e.g. ageing population; relatively slow economic growth and technology introducing new machines
9. [20] Establishing core competencies; food processing
10. [20] Porters 5 forces – competitive rivalry: large number of competitors in country X; small producers can enter food processing market with limited capital
11. [20] Boston Matrix – little information available apart from large % of food products are processed products in country X
12. [20] PEST (PESTLE): Ageing population important for product portfolio choice and workforce planning; relatively slow economic growth limits expansion of many businesses if they focus just on domestic market and technology introducing new machines requires IT skills and problems of retention of staff in past
13. [20] Establishing core competencies – NFP seem to have (wisely?) not considered moving away from food processing and possible sale of farm suggest that food processing is more significant than food production. Sian has vision of making NFP one of largest food processing companies in country X. Link could be made to takeover of VF.
14. [20] Boston Matrix: is total market expanding or not? Need data on individual food markets – e.g. is market for frozen food growing or not?
15. [20] Likely to be in the form of justifying why one or more methods of strategic analysis is important in this case – using evidence from the case.
16. [20] Answers might explain why one particular aspect of analysing the business or its environment is more important than others.
17. [20] All forms of strategic analysis have problems e.g. can be subjective and may become outdated quickly
18. [20] The specific limitations of the SA techniques selected should be assessed and, possibly, compared
19. [20] Boston Matrix of limited use by itself