One of a suite of products supporting Paper P3 Business Analysis, for use independently or as part of a package, this Kit is targeted at ACCA’s exams in September 2016, December 2016, March 2017 and June 2017 and contains: • Banks of questions on every syllabus area • Answers with detailed guidance on approaching questions • Three mock exams with full answers and guidance Practice & Revision Kit Paper P3 Business Analysis This Kit provides material specifically for the practice and revision stage of your studies for Paper P3 Business Analysis that has been comprehensively reviewed by the ACCA examining team This unique review ensures that the questions, solutions and guidance provide the best and most effective resource for practising and revising for the exam Business Analysis BPP Learning Media is dedicated to supporting aspiring business professionals with top-quality learning material as they study for demanding professional exams, often whilst working full time BPP Learning Media’s commitment to student success is shown by our record of quality, innovation and market leadership in paper-based and e-learning materials BPP Learning Media’s study materials are written by professionally qualified specialists who know from personal experience the importance of top-quality materials for exam success ACCA P3 ACCA approved content provider ACCA APPROVED CONTENT PROVIDER ACCA Approved Practice & Revision Kit BPP House 142-144 Uxbridge Road London W12 8AA United Kingdom T 0845 075 1100 (UK) T +44 (0)20 8740 2211 (Overseas) E Learningmedia@bpp.com bpp.com/learningmedia February 2016 £18.00 ACP3RK16 (RICOH).indd 1-3 For exams in September 2016, December 2016, March 2017 and June 2017 Contact us Paper P3 Business Analysis Free access to our Exam Success site Look inside For exams in September 2016, December 2016, March 2017 and June 2017 16/02/2016 12:01 ACCA APPROVED CONTENT PROVIDER As the first accredited publisher of ACCA materials, BPP Learning Media has set the benchmark for producing exceptional study materials for students and tutors alike Our Study Texts, Practice & Revision Kits and i-Passes (for exams on demand) are reviewed by the ACCA examining team and are written by our in-house authors with industry and teaching experience who understand what is required for exam success EXAM SUCCESS SITE To help maximise your chances of succeeding in your exams, we’ve put together a suite of exclusive ACCA resources Our Exam Success site provides you with access to a free digital version of this publication, as well as extra resources designed to focus your efforts on exams and study methods To access the Exam Success site, please email learningmedia@bpp.com with the subject line “Access to Exam Success site - eBook”, including your order reference number and the name of the book you’ve bought (ie ACCA F5 Study Text) for your access code Once you have received your code, please follow the instructions below: To access the BPP ACCA Exam Success site for this material please go to: www.bpp.com/ExamSuccessSite n Create a user account if you don’t already have one Make sure you reply to the confirmation email n Log in using your registered username and password Select the paper you wish to access n Enter the code you received when prompted You will only have to this once for each paper you are studying PAPER P3 BUSINESS ANALYSIS BPP Learning Media is an ACCA Approved Content Provider for the ACCA qualification This means we work closely with ACCA to ensure our products fully prepare you for your ACCA exams In this Practice and Revision Kit, which has been reviewed by the ACCA examination team, we: Discuss the best strategies for revising and taking your ACCA exams Ensure you are well prepared for your exam Provide you with lots of great guidance on tackling questions Provide you with three mock exams Provide ACCA exam answers as well as our own for selected questions Our Passcards also support this paper FOR EXAMS IN SEPTEMBER 2016, DECEMBER 2016, MARCH 2017 AND JUNE 2017 P R A C T I C E & R E V I S I O N K I T First edition 2007 Tenth edition February 2016 A note about copyright ISBN 9781 4727 4444 (previous ISBN 9781 4727 2694 0) Dear Customer e-ISBN 9781 4727 4659 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Your market-leading BPP books, course materials and e-learning materials not write and update themselves People write them on their own behalf or as employees of an organisation that invests in this activity Copyright law protects their livelihoods It does so by creating rights over the use of the content Published by Breach of copyright is a form of theft – as well as being a criminal offence in some jurisdictions, it is potentially a serious breach of professional ethics BPP Learning Media Ltd BPP House, Aldine Place London W12 8AA With current technology, things might seem a bit hazy but, basically, without the express permission of BPP Learning Media: www.bpp.com/learningmedia Printed in the United Kingdom by Ricoh UK Limited Unit Wells Place Merstham RH1 3LG Your learning materials, published by BPP Learning Media Ltd, are printed on paper obtained from traceable, sustainable sources All our rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of BPP Learning Media Ltd The contents of this book are intended as a guide and not professional advice Although every effort has been made to ensure that the contents of this book are correct at the time of going to press, BPP Learning Media makes no warranty that the information in this book is accurate or complete and accept no liability for any loss or damage suffered by any person acting or refraining from acting as a result of the material in this book We are grateful to the Association of Chartered Certified Accountants for permission to reproduce past examination questions The suggested solutions in the practice answer bank have been prepared by BPP Learning Media Ltd, except where otherwise stated © BPP Learning Media Ltd 2016 ii What does the little © mean and why does it matter? 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Contents Page Finding questions Question index iv Topic index vi Helping you with your revision vii Revising P3 Topics to revise viii Reading articles ix Question practice ix Passing the P3 exam x Exam information xiv Useful websites xviii Questions and answers Questions Answers 101 Exam practice Mock exam Questions 333 Plan of attack .343 Answers .344 Mock exam Questions 361 Plan of attack .371 Answers .373 Mock exam (ACCA September/December 2015 Exam) Questions 389 Plan of attack .401 Answers .402 Review Form iii Question index The headings in this checklist/index indicate the main topics of questions, but questions are expected to cover several different topics Part A: Role and responsibility towards stakeholders Time Page number Marks allocation Mins Question Answer Nesta (6/13) 25 49 101 The Management Press (12/10) 25 49 103 Rock Bottom (6/09) 25 49 106 Jayne Cox Direct (6/12) 25 49 109 Marlow Fashion (amended) 25 49 112 Frigate (12/10) 25 49 116 Alpha Software 25 49 118 AutoFone (6/08) 25 49 10 122 Noble Pets (12/14) 25 49 12 127 10 8-Hats (6/11) 25 49 14 132 11 Joe Swift Transport (6/10) 25 49 15 134 12 MMI (12/08) 25 49 17 137 13 Yvern Trinkets Regional (6/15) 25 49 19 141 14 Country Car Club (6/08) 25 49 21 144 15 The Missing Link 25 49 22 147 16 Ergo City (6/10, amended) 25 49 23 150 17 Cronin Auto Retail (6/11) 25 49 24 152 18 Fresh 'n' Frozen 25 49 25 155 19 The BA Times (12/13) 25 49 26 160 20 Housham Garden (12/13) 25 49 27 163 21 iTTrain (6/14) 25 49 29 167 22 BeauCo 25 49 30 172 23 Finch Co 25 49 31 175 24 Chemical Transport (6/13) 25 49 32 178 25 DRB (Pilot Paper) 25 49 33 181 26 Perfect Shopper (12/07) 25 49 34 185 27 Independent Living (12/09) 25 49 35 189 28 ATD (12/13) 25 49 36 191 29 Tillo Community Centre (6/12) 25 49 38 195 30 Lowlands Bank (12/09) 25 49 40 197 31 OneEnergy plc (6/09) 25 49 41 200 32 Bridge Co (6/14) 25 49 43 202 33 ASW (6/10, amended) 25 49 44 205 34 The Institute of Independent Analysts (IIA) (6/14) 25 49 46 209 Part A: The overall strategic perspective Part B: Options and organisation Part C: Strategic implementation iv Finding questions Part A: Role and responsibility towards stakeholders Time Page number Marks allocation Mins Question Answer 35 Flexipipe (6/12) 25 49 47 213 36 Institute of Administrative Accountants (12/10) 25 49 48 216 37 Institute of Analytical Accountants (6/11) 25 49 49 218 38 Pharmacy Systems International (6/08) 25 49 51 221 39 Academic Recycling Company (6/13) 25 49 52 225 40 Stella Electronics (12/14) 25 49 53 228 41 The Knowledge Partnership (12/14) 25 49 55 232 42 TMZ (6/15) 25 49 56 236 43 Brighttown (6/15) 25 49 57 240 44 ReInk Co (6/14) 50 98 59 244 45 MachineShop (12/13) 50 98 61 250 46 The Ace Bicycle Company 50 98 64 256 47 MidShire Health (6/13) 50 98 66 261 48 Shoal plc (12/10) 50 98 69 266 49 Hammond Shoes (6/12) 50 98 71 271 50 EcoCar (6/11) 50 98 74 275 51 Oceania National Airlines (12/07) 50 98 76 281 52 Wetland Trust (6/10) 50 98 79 289 53 Institute of Information Systems Architects 50 98 83 296 54 The National Museum 50 98 86 301 55 GreenTech (6/09) 50 98 89 308 56 Roam Group (12/14) 50 98 92 314 57 2Tel (6/15) 50 98 95 321 Part D: Case studies Mock exam Mock exam Mock exam (ACCA September/December 2015 exam) Finding questions v Topic index Listed below are the key Paper P3 syllabus topics and the numbers of the questions in this Kit covering those topics If you need to concentrate your practice and revision on certain topics or if you want to attempt all available questions that refer to a particular subject, you will find this index useful vi Syllabus topic Question numbers Benchmarking Big Data Business Process Change Capabilities and competences Change management & the context of change Corporate appraisal (SWOT) Corporate parenting Critical success factors Culture Diamond model e-business e-Marketing Five forces Integrated reporting Investment appraisal IT controls and continuity planning Knowledge management Learning organisation Marketing mix Mission statement and organisational objectives Organisation structure Outsourcing People PESTEL Process-strategy matrix Project management Regression analysis Risk management Role of the finance function Software Stakeholders Strategic options Strategy development Supply chain management Value chain 5, Mock Q1 18 23, 40 12, 16, Mock Q2 16, 41, Mock Q1, 48, 38 5, 44, Mock Q1, 51, 52, 55 56 Mock Q1 7, 47 11, 45 3, 15, 17, 19 17, 24, Mock Q4 1, 8, 55 10, Mock Q3, 34, Mock Q4, 49 22 42 42 3, 20, 21 49, 52 3, 6, 10 13, 14, 16, 50 39 Mock Q1, 50, 52, 53, 54 14, 24, 30, 53 29, 30, Mock Q3, 33, 36, 43, 47 9, 28, Mock Q4 41 31, 32, 34, 35, 37 16, Mock Q2, 52 11, 12, Mock Q3, 49, Mock Q1, 46, 57 9, 12, 54 4, 25, 26 9, 4, 26, 27 Topic index Helping you with your revision BPP Learning Media – ACCA Approved Content Provider As an ACCA Approved Content Provider, BPP Learning Media gives you the opportunity to use revision materials reviewed by the ACCA examination team By incorporating the examination team's comments and suggestions regarding the depth and breadth of syllabus coverage, the BPP Learning Media Practice and Revision Kit provides excellent, ACCA-approved support for your revision Tackling revision and the exam Using feedback obtained from the ACCA examination team review: We look at the dos and don'ts of revising for, and taking, ACCA exams We focus on Paper P3; we discuss revising the syllabus, what to (and what not to do) in the exam, how to approach different types of question and ways of obtaining easy marks Selecting questions We provide signposts to help you plan your revision A full question index A topic index listing all the questions that cover key topics, so that you can locate the questions that provide practice on these topics, and see the different ways in which they might be examined Making the most of question practice At BPP Learning Media we realise that you need more than just questions and model answers to get the most from your question practice Our Top tips included for certain questions provide essential advice on tackling questions, presenting answers and the key points that answers need to include We show you how you can pick up Easy marks on some questions, as we know that picking up all readily available marks often can make the difference between passing and failing We include marking guides to show you what the examination team rewards We include comments from the examination team to show you where students struggled or performed well in the actual exam We refer to the BPP Study Text for exams in September 2016, December 2016, March 2017 and June 2017 for detailed coverage of the topics covered in questions Attempting mock exams There are three mock exams that provide practice at coping with the pressures of the exam day We strongly recommend that you attempt them under exam conditions Mock exams and reflect the question styles and syllabus coverage of the exam; Mock exam is the ACCA September/December 2015 exam paper This exam is compiled from questions selected by the examination team from the September 2015 and December 2015 exams They not reflect the entire September or December exams but contain questions most appropriate for students to practice Helping you with your revision vii Revising P3 Topics to revise Firstly we must emphasise that you will need a good knowledge of the whole syllabus Any part of the syllabus could be tested within compulsory Question Having to choose two out of three optional questions does not really represent much choice if there are areas of the syllabus you are keen to avoid There are certain topics that are stressed in the syllabus and therefore are core: Strategic position The need for and purpose of business analysis (rational model, levels of strategy, strategic lenses) The internal resources, capabilities and competences of an organisation (value chain and corporate appraisal) Setting critical success factors (CSF) and key performance indicators (KPI) Environmental issues affecting the strategic position of an organisation (PESTEL and Porter's Diamond) Stakeholders, ethics culture and integrated reporting (stakeholder mapping, scope of corporate social responsibility and cultural web) Strategic choices Portfolio models; the Boston Consulting Group (BCG) matrix, public sector, parenting matrix and Ashridge Portfolio display Approaches to achieving competitive advantage (strategy clock and generic options) Methods of development (Ansoff's matrix, internal development, mergers, acquisitions) Criteria to assess strategic options (suitability, acceptability and feasibility) Strategic action Organisational set up (boundary-less organisations, hollow, modular and virtual) and strategic alliances (joint ventures, networks, franchising, licensing) and concepts of outsourcing, offshoring and shared services Organisational configurations (Mintzberg) Managing strategic change Organisational context of change (Balogun, Hope and Hailey) Different approaches to strategic development (emergent strategies) Business and process change Assess the stages of the business change lifecycle and the four view model The role of Harmon's process strategy matrix Software solutions Information technology viii Analyse IT and application controls and evaluate controls for safeguarding IT assets Principles of e-business including upstream and downstream supply chain management Understand the characteristics of e-marketing using the 6I's and the use of customer relationship management software (CRM) Revising P3 ... Learning Media Practice and Revision Kit provides excellent, ACCA- approved support for your revision Tackling revision and the exam Using feedback obtained from the ACCA examination team review:... paper you are studying PAPER P3 BUSINESS ANALYSIS BPP Learning Media is an ACCA Approved Content Provider for the ACCA qualification This means we work closely with ACCA to ensure our products... carries general business information as well as programme-related content www.strategy -business. com This website includes articles from Strategy and Business xviii Passing P3 Questions THE