Practise applying strategic analysis and choice tools to case evidence, calculating decision-tree values where required and advising whether one framework is sufficient for a strategy.
Advise KF whether using Ansoff's matrix is sufficient to develop a successful growth strategy. [20]
Please refer to the marking grid at the start of the mark scheme
Indicative content
Responses may include:
AO1 Knowledge and understanding
Knowledge (max 1 mark) can be awarded for any relevant business knowledge about business strategy and Ansoff's Matrix as well as the alternative strategies including:
- The meaning and purpose of business strategy
- The meaning and purpose of strategic management: analysis, choice and implementation
- Approaches to develop business strategy, including:
- blue ocean strategy
- scenario planning
- PEST analysis
- Porter's five forces
- core competence framework
- SWOT
- force field analysis
- decision trees.
Award DEV for any explanation of relevant business knowledge, up to a max of 2 marks.
AO2 Application
Application [m](1 mark) can be awarded for applying knowledge of Ansoff's matrix/business strategy, to KF.
Application □=□ (2 marks) can be awarded for applying knowledge of HR strategy, to KF between 2018 and 2023:
- Delivery market is shrinking back to pre-pandemic levels, limiting growth opportunities.
- Changes in legislation change the model of using zero-hours/gig-economy workers.
- Any element of the case study/appendices including:
- Small staff - one office manager, 15 kitchen support workers
- Use of full-time contracts and flexi-time contracts
- Objectives of growth and profit maximisation
- New delivery service - 45 riders hired, increasing to 75
- Use zero-hours contracts
- Use of tracking software for staff performance
- Tracks speed, efficiency of deliveries
- Unreasonable time targets
- Bad timing within the app
- Bonuses and performance judged unfairly
- Compliance with new legislation banning zero-hours contracts
- Staff moved to self employed and will operate as part of the gig economy
- Use of performance data to judge staff for restructure.
AO3 Analysis
Analysis of the usefulness of Ansoff's matrix to help KF develop a growth strategy ( A and and A2 ) including:
- The current market for deliveries is shrinking - will Ansoff lead them to discuss options that are not viable when other
options may need exploration?
- What is Liam and Samir's attitude to risk? - This may fuel which direction they choose to go in.
- Where will financing come from? - The business has rationalised recently so do they have the money to expand?
Candidates may offer alternative approaches:
- May want to use the blue ocean strategy to identify a market where they can dominate - as they did when they
originally set up the KF/delivery business.
- Scenario planning could help map what may happen with the current business model - to help identify where they
should move to.
- SWOT analysis may help identify strengths that can be transferred to a new project - whilst highlighting the problems
they may face in a different model to how they currently operate.
- PEST analysis could help understand the changing environment after the global pandemic - which has changed many
elements of this.
- Five forces would help understand the rivalry they face in a very crowded food/restaurant/takeaway market.
- Core competency framework would allow them to identify what they do well and could transfer to any growth option
chosen - especially if this is not an expansion of the current food delivery model.
- Force field analysis could help Liam to understand the constraining and driving forces in developing the new strategy -
This may help him to identify actions that need to be taken to reduce constraining forces.
- Decision trees could be used to help make a quantitative led decision between the different options for expansion - but
would need to have much more financial information to be worthwhile.
AO4 Evaluation
Evaluation will largely depend on the points raised in the analysis of the approaches needed to develop the new strategy other than Ansoff's Matrix.
Evaluation ( N1 and N2 and N3 ) including:
- Candidates must state that Ansoff's Matrix is/isn't sufficient or acknowledge that something else is better for first N1 mark.
- Each option requires much more data and research to understand the risk, financial constraints and success probabilities to help make the final decision.
- Should KF be using a combination of other methods - decision trees to help make the decision, core competency framework to identify strengths to transfer to new business etc.?
- How important is growth to the new strategy moving forward, do they need to consolidate after the pandemic and focus in on what they do best given new HR implications?
- Is the whole structure of their business model changing given changes to ZHC legislation - is this model even still viable?
- Advice to KF should make clear whether Ansoff's matrix is sufficient or whether it should be supported by other models, and if so which?
Accept all valid responses.