Evaluate the importance of strategic analysis to BKC when planning to achieve its new long term objective.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

1. [K] First stage of strategic decision making
2. [K] Assesses internal and external environment - 'Where are we now?'
3. [K] Techniques include SWOT/PEST/Porter/ Boston matrix/core competencies.
4. [APP] Objective is to maximise returns to shareholders and ROCE above industry average
5. [APP] New long term aim needs new strategies – strategic analysis will help to identify these
6. [APP] Existing data out of date e.g. 2010 customer survey.
7. [AN] By knowing how the business can get from where it is now to where it wants to be i.e. the new long term aim of the business, then the chances of strategic success are greater.
8. [AN] New aims require new strategies and these need strategic analysis as a starting point
9. [AN] Important when external environment is subject to change e.g. free trade/ globalisation/fiscal policy changes – PEST analysis will allow detailed insight into how these changes might affect BKC and make future strategic choices more likely to be effective.
10. [AN] Answers could include an attempt to undertake one or two strategic analysis techniques – only award 'analysis' if the points are explained in terms of how they might help BKC.
11. [EVAL] These techniques need to be updated especially as in BKC's case the external environment is likely to change significantly; some techniques can depend on rather subjective views.
12. [EVAL] It is only one part of strategic management – choice and implementation will be important too e.g. between strategies 1 or 2 and the need for BKC management to be flexible and prepared to communicate effectively when introducing new strategies.