Evaluate the strategic choice techniques FF's directors could use when making the decision whether to enter the Asia Pacific retail glasses market.

Mark scheme

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

1. [Knowledge] Meaning of strategic choice as part of strategic management.
2. [Knowledge] Strategic choice techniques such as Ansoff Matrix, Decision trees, Force Field Analysis and investment appraisal (IA).
3. [Knowledge] Ansoff encourages management to consider risk of each option.
4. [Knowledge] Force Field Analysis considers driving and restraining factors, giving each one weighting according to importance. Totals are then compared.
5. [Knowledge] Decision trees analysis assesses estimated monetary values of options, based on probabilities of success and failure.
6. [Knowledge] IA techniques such as payback, ARR, and NPV compare time taken to recover investment and future value and return on projects.
7. [Knowledge] Other qualitative factors, such as the attitude of management to risk.
8. [Knowledge] Reference to strategic analysis techniques when preparing for choice such as SWOT, PEST, Boston matrix, Porter's Five Forces, Core competencies.
9. [Application] Glasses manufacture, lenses change to selling direct to retail companies.
10. [Application] Current market selling to wholesalers.
11. [Application] Glasses and frames markets in other parts of the world.
12. [Application] Proposal seems to be from one person (CEO).
13. [Application] Strategic analysis carried out but no details, no objectives set.
14. [Application] Use of Tables 4 and 5, for instance, the Asia Pacific region shows the highest sales ($14bn) and 10% estimate for sales growth 2021–2025.
15. [Analysis] Ansoff suggests that this would be a product development, as now selling glasses not just frames and also a market development as FF would be selling to retailers.
16. [Analysis] Decision tree support a new direction with an EMV $14m for Asia Pacific approach, higher than Europe and N America at $4m and $3m respectively. Table 5 indicates any of the regions appropriate but Asia Pacific good choice, FF will know local markets as located there.
17. [Analysis] Choice needs to be part of strategic management process, strategic analysis techniques, such as SWOT, PEST, Porter's Five Forces, would have led to this choice.
18. [Analysis] Suggested choice will be expensive, are funds available?
19. [Analysis] Relies on making good relationships with suppliers, especially lens manufacturers, to ensure efficiency of operations.
20. [Analysis] Relies on successful strategy for entering an international market.
21. [Evaluation] Supported conclusion based on reasoning, e.g. more research, or considers another option.
22. [Evaluation] Proposal seems a preliminary suggestion, not a fully researched proposal.
23. [Evaluation] Proposal not integrated with other possible changes.
24. [Evaluation] Does the analysis justify a need for a new direction?
25. [Evaluation] No objectives set means difficult to carry out strategic analysis.
26. [Evaluation] No objectives set means no criteria to enable a strategic choice or judge its success.
27. [Evaluation] No details of how Ansoff and decision tree were researched, so difficult to know how valid the conclusions of each are.
28. [Evaluation] No details on supply chains or entry strategy so vital information lacking.
29. [Evaluation] Other techniques, e.g. investment analysis, not used.
30. [Evaluation] Comments on relative importance of techniques.