Evaluate the usefulness to BFB of focusing only on Force Field Analysis when choosing between strategic options.

Mark scheme

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

1. [Knowledge] Meaning of strategic choice as part of strategic management.
2. [Knowledge] Definition and understanding of force field analysis as a technique of strategic choice.
3. [Knowledge] Reference to other strategic choice techniques such as Ansoff Matrix, decision trees and investment appraisal.
4. [Knowledge] Reference to strategic analysis techniques when preparing for choice such as SWOT, PEST, Boston matrix, Porter's 5 Forces, Core competencies and others.
5. [Application] Use of the techniques/factors for two options – appendix 2.
6. [Application] Ansoff's matrix – Option 1 – diversification.
7. [Application] Option 2 - product development.
8. [Application] Option 2 has higher probability of success. Less risk.
9. [Application] Option 1 has higher ARR – link to shareholder returns.
10. [Application] Option 1 capital cost is $1m greater – link to gearing.
11. [Application] Force field analysis – what is the balance between driving and restraining forces? Use of these forces in answer such as BFB's lack of experience in accessories market.
12. [Analysis] How techniques may be used and the advantages and disadvantages.
13. [Analysis] Force field analysis encourages managers to consider different aspects of a decision.
14. [Analysis] By identifying restraining forces action can be taken to mitigate negative effects and reduce risk.
15. [Analysis] 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.
16. [Analysis] Forces can be weighted thus improving decision making. 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.
17. [Analysis] Role of other techniques in decision making that consider the quantitative aspects of the choices.
18. [Analysis] Use of probabilities in decision trees therefore reducing risk for BFB of option choice.
19. [Analysis] ARR enables BFB to choose option with highest return which may be important to shareholders.
20. [Analysis] The use of techniques to analyse aspects of the options.
21. [Evaluation] Weighting of the driving and restraining forces is subjective. Has Aela manipulated the data to support her preferred option? TT may view choices differently (assuming there is a takeover). Bias and hidden agenda in formulating the analysis. Disagreements about relative importance.
22. [Evaluation] Forces may be missed from the analysis.
23. [Evaluation] Justification of most useful choice technique technique with supporting argument.
24. [Evaluation] 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.
25. [Evaluation] 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?