2015 ACCA p3 study text BPP

http://freeaccastudymaterial.blogspot.com/ / t.c om sp o og bl ter ial dy ma stu Study Text Look inside ac ca Paper P3 Business Analysis Study Text for exams up to June 2015 Free access to our Exam Success site htt p:/ June 2014 £32.00 ACCA Approved /fr ee 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 • A user-friendly format for easy navigation • Exam focus points describing what the examining team will want you to • Regular Fast Forward summaries emphasising the key points in each chapter • Questions and quick quizzes to test your understanding • A practice question bank containing exam- standard questions with answers • A full index • All you need in one book For exams up to June 2015 Contact us In addition to ACCA examining team reviewed material you get: Study Text Paper P3 Business Analysis This ACCA Study Text for Paper P3 Business Analysis has been comprehensively reviewed by the ACCA examining team This review guarantees appropriate depth and breadth of content and comprehensive syllabus coverage 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 http://freeaccastudymaterial.blogspot.com/ ACP3ST14 (HO).indd 1-3 27/05/2014 17:44 co m/ http://freeaccastudymaterial.blogspot.com/ log sp o t S T U D Y ria l.b PAPER P3 ym ate BUSINESS ANALYSIS tud BPP Learning Media is an ACCA Approved Learning Partner – content This means we work closely with ACCA to ensure this Study Text contains the information you need to pass your exam In this Study Text, which has been reviewed by the ACCA examination team, we: Highlight the most important elements in the syllabus and the key skills you need  Signpost how each chapter links to the syllabus and the study guide  Provide lots of exam focus points demonstrating what is expected of you in the exam  Emphasise key points in regular fast forward summaries  Test your knowledge in quick quizzes  Examine your understanding in our practice question bank  Reference all the important topics in our full index ea cc as  /fr e BPP's Practice & Revision Kit and i-Pass products also support this paper htt p:/ FOR EXAMS IN DECEMBER 2014 AND JUNE 2015 http://freeaccastudymaterial.blogspot.com/ T E X T log sp o t co m/ http://freeaccastudymaterial.blogspot.com/ First edition 2007 Seventh edition June 2014 All 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 ISBN 9781 4727 1087 (Previous ISBN 9781 4453 9655 2) eISBN 9781 4453 6742 A catalogue record for this book is available from the British Library Published by ate BPP Learning Media Ltd BPP House, Aldine Place London W12 8AA www.bpp.com/learningmedia Printed in the United Kingdom by tud ym Polestar Wheatons Hennock Road Marsh Barton Exeter EX2 8RP ria British Library Cataloguing-in-Publication Data l.b 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, unless otherwise stated © BPP Learning Media Ltd 2014 htt p:/ /fr e ea cc as Your learning materials, published by BPP Learning Media Ltd, are printed on paper obtained from traceable sustainable sources ii http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ co m/ Contents Page Introduction v vii xii xiii log sp o t Helping you to pass Studying P3 The exam paper Syllabus and study guide Part A Strategic position Business strategy Environmental issues Competitors and customers Strategic capability Stakeholders, ethics, culture and integrated reporting 21 61 87 121 Part B Strategic choices Strategic choices Organising for success Managing strategic change 10 Business process change Improving processes Part E Information technology E-business E-marketing ym 11 12 ate Part D Business process change ria Part C Organising and enabling success l.b 159 217 253 273 301 327 369 13 Project management Part G Finance 14 Finance 15 as Part H People tud Part F Project management Human resource management 413 477 527 Strategic development 549 Practice question bank Practice answer bank Index Review form 565 htt p:/ /fr e ea 16 cc Part I Strategic development 579 611 Contents http://freeaccastudymaterial.blogspot.com/ iii log sp o t co m/ http://freeaccastudymaterial.blogspot.com/ A note about copyright Dear Customer What does the little © mean and why does it matter? l.b Your market-leading BPP books, course materials and elearning 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 ria Breach of copyright is a form of theft – as well being a criminal offence in some jurisdictions, it is potentially a serious breach of professional ethics ym ate With current technology, things might seem a bit hazy but, basically, without the express permission of BPP Learning Media:  Photocopying our materials is a breach of copyright  Scanning, ripcasting or conversion of our digital materials into different file formats, uploading them to Facebook or emailing them to your friends is a breach of copyright You can, of course, sell your books, in the form in which you have bought them – once you have finished with them (Is this fair to your fellow students? We update for a reason.) But the e-products are sold on a single user licence basis: we not supply ‘unlock’ codes to people who have bought them second hand htt p:/ /fr e ea cc as tud And what about outside the UK? BPP Learning Media strives to make our materials available at prices students can afford by local printing arrangements, pricing policies and partnerships which are clearly listed on our website A tiny minority ignore this and indulge in criminal activity by illegally photocopying our material or supporting organisations that If they act illegally and unethically in one area, can you really trust them? iv http://freeaccastudymaterial.blogspot.com/ Helping you to pass BPP Learning Media – ACCA Approved Learning Partner – content co m/ http://freeaccastudymaterial.blogspot.com/ log sp o t As ACCA’s Approved Learning Partner – content, BPP Learning Media gives you the opportunity to use study 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 Study Text provides excellent, ACCA-approved support for your studies The PER alert l.b Before you can qualify as an ACCA member, you not only have to pass all your exams but also fulfil a three year practical experience requirement (PER) To help you to recognise areas of the syllabus that you might be able to apply in the workplace to achieve different performance objectives, we have introduced the ‘PER alert’ feature You will find this feature throughout the Study Text to remind you that what you are learning to pass your ACCA exams is equally useful to the fulfilment of the PER requirement Your achievement of the PER should now be recorded in your on-line My Experience record ria Tackling studying ym Developing exam awareness ate Studying can be a daunting prospect, particularly when you have lots of other commitments The different features of the text, the purposes of which are explained fully on the Chapter features page, will help you whilst studying and improve your chances of exam success Our Texts are completely focused on helping you pass your exam tud Our advice on Studying P3 outlines the content of the paper, the necessary skills you are expected to be able to demonstrate and any brought forward knowledge you are expected to have Exam focus points are included within the chapters to highlight when and how specific topics were examined, or how they might be examined in the future as Using the Syllabus and Study Guide cc You can find the Syllabus and Study Guide on page xiii of this Study Text ea Testing what you can Testing yourself helps you develop the skills you need to pass the exam and also confirms that you can recall what you have learnt htt p:/ /fr e We include Questions – lots of them - both within chapters and in the Practice Question Bank, as well as Quick Quizzes at the end of each chapter to test your knowledge of the chapter content Introduction http://freeaccastudymaterial.blogspot.com/ v Chapter features Each chapter contains a number of helpful features to guide you through each topic Topic list Syllabus reference What you will be studying in this chapter and the relevant section numbers, together with ACCA syllabus references log sp o t Topic list Introduction Puts the chapter content in the context of the syllabus as a whole Study Guide Links the chapter content with ACCA guidance Exam Guide Highlights how examinable the chapter content is likely to be and the ways in which it could be examined What you are assumed to know from previous studies/exams FAST FORWARD Summarises the content of main chapter headings, allowing you to preview and review each section easily l.b Knowledge brought forward from earlier studies Demonstrate how to apply key knowledge and techniques Key terms Definitions of important concepts that can often earn you easy marks in exams ate ria Examples When and how specific topics were examined, or how they may be examined in the future Exam focus points Formulae that are not given in the exam but which have to be learnt tud Question ym Formula to learn as Case Study ea cc Chapter Roundup /fr e Quick Quiz Gives you a useful indication of syllabus areas that closely relate to performance objectives in your Practical Experience Requirement (PER) Gives you essential practice of techniques covered in the chapter Real world examples of theories and techniques A full list of the Fast Forwards included in the chapter, providing an easy source of review A quick test of your knowledge of the main topics in the chapter Found at the back of the Study Text with more comprehensive chapter questions Cross referenced for easy navigation htt p:/ Practice Question Bank vi co m/ http://freeaccastudymaterial.blogspot.com/ Introduction http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ co m/ Studying P3 Much of the P3 exam is concerned with business strategy As a Chartered Certified Accountant you are likely to find yourself dealing with matters that are of strategic importance to your organisation It is important, therefore, that you have an understanding of the way business strategy is conducted so that your input is appropriate and properly considered log sp o t However, the name of P3 is Business Analysis, not Business Strategy Business Analysis is wider than simply strategy and this paper will also draw from your financial and business skills gained during your studies so far It brings these concepts together and encourages you to take a wider view of the organisations you are presented with in order to give your analysis of those organisations as a whole What P3 is about The aim of the syllabus is to develop students’ ability to apply relevant knowledge and skills, and exercise the professional judgement in assessing strategic position, determining strategic choice, and implementing strategic action through beneficial business process and structural change that involve people, finance and information technology ria l.b This is an advanced level paper which builds on a number of the topics covered in Paper F1 Accountant in Business as well as topics you will have seen in Paper F5 Performance Management However, as an advanced paper it tests much more than just your ability to recall models and theories You must be able to evaluate data, assess the strategic consequences of decisions and advise on alternative courses of action (a) ate The syllabus is divided into eight main sections, (although the Examiner is keen that you view them as an integrated whole, rather than as a series of unrelated sections) Strategic position ym The syllabus begins by considering the impact of the external environment on an organisation, and looks at the competitive forces organisations face It then also looks at an organisation’s internal capabilities and expectations, to see how an organisation can position itself to get the most value out of its resources (b) Strategic choice tud However, an organisation also needs to consider its responsibilities to differing stakeholder groups, and how the expectations of stakeholders, alongside ethics and culture, help shape organisational purpose Strategic action cc (c) as Once an organisation has established its current strategic position it can start thinking about the direction it wants to take in the future This section looks at the decisions which have to be made about an organisation’s future and the way an organisation can respond to the influences and pressures which it identified while assessing its strategic position ea This section deals with the implementation of strategic choices, and the transformation of these choices into organisational action This action takes place in a context of operational processes and relationships, which need to be managed in line with the intended strategy, and involves the effective coordination of business processes, information technology, people and finance htt p:/ /fr e You will be expected to identify problems and issues in an organisation which prevent it from achieving its strategies, and make recommendations about how these problems can be resolved Introduction http://freeaccastudymaterial.blogspot.com/ vii http://freeaccastudymaterial.blogspot.com/ Business and process change co m/ (d) This section is the first considering how organisational elements support business strategy, and it highlights that business process redesign can lead to significant organisational improvements Again, you will be expected to identify problems or inefficiencies with existing processes and make recommendations as to how they can be made more effective (e) Information technology (f) log sp o t The application of information technology is often one of the ways that business processes can be redesigned This reflects the fact that many existing processes are less efficient than they could be, and that new technology and the application of e-business models make it possible to design those processes more efficiently Project management In (c) above we noted that effective strategic action requires the coordination of a number of operational processes This coordination can be facilitated through effective project management (g) Financial analysis People ria (h) l.b Strategic planning and strategic implementation should be subject to financial benchmarks Financial analysis explicitly recognises this, reminding you of the importance of focusing on key ratios and measures that can be used to assess the viability of a strategy and to monitor or measure its success ate Human resource management plays a vital role in underpinning strategy Successful strategic planning and implementation require the effective recruitment, training, and organisation of people, coupled with strong leadership As with so many other areas of the syllabus, it is crucial that an organisation’s personnel resources are appropriate for the strategy it is pursuing ym Skills you have to demonstrate An ability to integrate knowledge and understanding from across the syllabus • Application of your knowledge to the specific circumstances described by the question • An ability to make reasoned judgements and give practical, commercial advice based on the facts presented in the question scenario • Careful reading and analysis of the question scenarios, and the question requirements • If you read the main capabilities listed by ACCA that students are expected to have on completion of P3, you will find continued reference to the verbs ‘evaluate’, ‘assess’, ‘advise’ and ‘explain’ – make sure you can all of these in relation to the different aspects of the syllabus cc as tud •  Study the entire syllabus – questions may span a number of syllabus areas and you must be prepared for anything! Practise as many questions as you can under timed conditions This is the best way of developing good exam technique Make use of the Question Bank at the back of this study text, and, more importantly, BPP’s Practice and Revision Kit The Kit contains numerous exam standard questions (many of them taken from past exam papers) as well as three mock exams for you to try /fr e  ea How to pass htt p:/  viii P3 questions will be scenario-based and all the information given in the scenarios will be relevant to the questions set Make sure you relate your answers to the scenario rather than letting them become generic Answers that are simply regurgitated from texts are unlikely to score well Introduction http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ Present your answers in a professional manner – there are marks available for coherent, well structured arguments and for making recommendations when required You should be aiming to achieve all of these marks  Manage your time in the exam hall carefully Answer plans will help you to focus on the requirements of the question and enable you to manage your time effectively Also, not waffle Make your answers complete, but brief  Answer the question that you are most comfortable with first – it will help to settle you down if you feel you have answered the first question well  Answer all parts of the question – leaving out a five mark discursive element for example may mean the difference between a pass and a fail  Read the financial press and relevant web sites (for example, the BBC business website) for real life examples The examination team is specifically looking for evidence of wider reading They have repeatedly stressed the importance of reading the finance section of a good quality newspaper so that you can draw on real-life situations to help inform your answers log sp o t co m/  Check the P3 section of the ACCA website regularly – it often contains technical articles written either by, or on the recommendation of, the examination team which can be invaluable for future exams ate Brought forward knowledge ria  l.b This does not, of course, mean you should simply quote real life examples in your exam just to show you have read widely Instead you should use the real life examples to help inform your answers to the questions set ym As mentioned previously, this paper builds on knowledge brought forward from Paper F1, Accountant in Business and F5 Performance Management If you have not studied F1 or F5, or were exempt, you should spend some time considering the syllabus and study guide to identify any gaps in your knowledge You must ensure you cover any areas you are unsure of before your exam, so that you would be comfortable referring to them as necessary htt p:/ /fr e ea cc as tud The syllabus information is available on the ACCA website, www.accaglobal.com Introduction http://freeaccastudymaterial.blogspot.com/ ix http://freeaccastudymaterial.blogspot.com/ co m/ Mintzberg believes there are inherent problems in divisionalisation, many of which are actually those of conglomerate diversification In the Shirtmaster group, it could be that each business might be better run independently The different businesses might offer different returns for different risks which shareholders might prefer to judge independently log sp o t There does not appear to be any common effort between the divisions, with no sharing of resources apparent from the scenario details While both are in the clothing market, their respective value systems run very differently Information systems are also likely to operate independently This may be leading to duplication of effort and waste of resources If divisionalisation is to operate effectively, divisional management should be free to use their authority to what they think is right for their part of the organisation This is not happening in the Shirtmaster division, and the time has come for Tony Masters to allow his management team to develop strategy to drive the company forward, perhaps with the necessity to take some tough decisions that he appears incapable of making Performance in both divisions needs to be clearly identified and controlled, and resources channelled to those areas showing potential Each division must have a potential for growth in its own area of operations It seems that only Corporate Clothing can satisfy this test in current trading conditions l.b Divisions should exist side by side with each other If they deal with each other, it should be as an arm's length transaction There should be no insistence on preferential treatment to be given to one particular unit While there is no suggestion in the scenario that this is happening, Tony Masters' favouring of the Shirtmaster division in more subtle ways is having an effect upon performance htt p:/ /fr e ea cc as tud ym ate ria Using the BCG matrix it is possible to classify the Shirtmaster division as a 'dog' with low market share, in a market with little growth It needs refreshed management to take it forward and find new markets The Corporate Clothing division, by contrast, has a small share of a growing market, and this potential also needs to close management EPractice answer bank http://freeaccastudymaterial.blogspot.com/ 607 htt p:/ /fr e ea cc as tud ym ate ria l.b log sp o t co m/ http://freeaccastudymaterial.blogspot.com/ 608 Practice answer bank http://freeaccastudymaterial.blogspot.com/ ym ate ria l.b log sp o t co m/ http://freeaccastudymaterial.blogspot.com/ htt p:/ /fr e ea cc as tud Index 609 http://freeaccastudymaterial.blogspot.com/ htt p:/ /fr e ea cc as tud ym ate ria l.b log sp o t co m/ http://freeaccastudymaterial.blogspot.com/ 610 http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ ea cc as tud ym co m/ log sp o t ate ACCA and CIMA, 57 Acceptability, 204, 207, 351 Access to distribution channels, 52 Acid test ratio, 515 Acquisitions, 196, 197 Activity based costing (ABC), 507, 508, 521 Actual Product, 377 Adair, 532 Adaptation, 255, 259 Adhocracy, 244 Administrative adhocracy, 244 Adverse selection, 137 Advertising, 380 Affiliate marketing, 371 Agency theory, 137 Airline code sharing, 236 Airlines, 335 Alien businesses, 181 Alignment, 277 Allen et al, 401 Alliance partners, 201 Alliances, 236, 237, 264 Amazon.com, 381 Analytical CRM, 405 Anglo-Saxon model of corporate governance, 138 Annual hours, 238 Ansoff, 163, 192 Applied research, 109 Artefacts, 141 Arthur D Little, 205 Ashridge College model of mission, Ashridge portfolio display, 180 Asset turnover, 513 Auction sites, 334 Augmented product, 377 Automation, 286 Autonomy, 536 Avoidance, 463 l.b Absorption, 463 Banner advertising, 371, 395 Bargaining power of customers, 51, 54, 56 Bargaining power of suppliers, 51, 54, 56 Barriers to e-business, 331 Barriers to entry, 52, 56, 191, 197 Bases for segmentation, 73 Basic factors, 36 Behavioural segmentation, 73 Belbin, 457 Beliefs, 142 Benchmarking, 111 Benefit owner, 440 Benefits of change, 279 Benefits realisation, 466 Bennett and James, 32 Better off tests, 181 Blake and Mouton, 530, 532 Blog marketing, 371 Body Shop, 199 Borrowing, 484 Boston classification, 178 Boston Consulting Group (BCG), 178 Bottom-up budgeting, 447 Boundaries, 102, 356 BPR, 286, 539 Brand, 104, 390 Brand values, 77 Branding, 371 Breakthrough products, 183 Breakthrough project, 420 Bribery, 125 Budget, 416 Budgetary control, 227 Budgetary processes, 553 Business automation, 285 Business case, 427 Business change lifecycle, 275, 276 Business model, 9, 330 Business process re-engineering (BPR), 284, 303 IT and, 286 methodology, 285 principles of, 285 Business processes, 329 Business rationalisation, 285 Business risk, 171 Business strategy, 10 Business-level strategy, 10 Business-to-business markets, 71 Buyer behaviour, 71 ria 3G technologies, 343 4G technologies, 343 7Ps, 376 B htt p:/ /fr e 2B (Business-to-Business), 332 B2C (Business-to-Consumer), 332 B2E (Business-to-Employee), 333 B2G (Business-to-Government), 333 B2M (Business to Machine), 333 Back drawer issues, 180 Backward integration, 163 Balanced scorecard, 228 Ballast businesses, 180 Balogun and Hope Hailey, 254, 255 C2B (Consumer-to-Business), 332 C2C (Consumer-to-Consumer), 332 C2G (Citizen-to-Government), 333 Capabilities, 91 Index http://freeaccastudymaterial.blogspot.com/ 611 http://freeaccastudymaterial.blogspot.com/ ria l.b log sp o t co m/ Complexity, 557 Computer games, 56 Concentrated marketing, 75 Concentric diversification, 164 Configuration, 219 Conflicts within the team, 599 Conglomerate, 164 Conglomerate diversification, 164, 197 Consequentialist ethics, 123 Consolidation, 193 Consortia, 198 Consultants, 261, 554 Consumer generated content, 403 Consumer goods, 71 Contingency, 463 Contingency funding, 484 Contingency plan, 463 Continuity planning, 348 Continuous improvement, 537 Continuum of leadership styles, 529 Contract manufacture, 173 Control, 331, 536, 538 Control process, 226 Controls over data input, 346 Controls over logical access, 345 Controls over physical access, 344 Cookies, 402 Core competencies, 92, 102, 201 Core employees, 28 Core Product, 377 Corporate appraisal, 115 Corporate culture, 196 Corporate ethical code, 126, 153 Corporate ethics, 126 Corporate governance, 131, 136, 140 Corporate parent, 161, 174 Corporate portfolio, 177 Corporate social responsibility, 132 Corporate strategy, 10 Correlation, 45 Cost drivers, 356 Cost efficiency, 92 Cost focus strategy, 184 Cost globalisation, 35 Cost leadership, 57, 76, 182, 185, 187 Cost reduction, 331 Cost-benefit analysis, 208, 306 Countermediation, 333, 335, 379 Coupon, 487 Crisis, 230 Crisis stabilisation, 261 Critical success factors, 23, 77, 186, 192 Cross-subsidisation, 162 Crowdsourcing, 240 Crowdsouricng, 239 Crystal glass industry, 40 htt p:/ /fr e ea cc as tud ym ate Capital, 36 Capital expenditure, 433 Capital requirements, 52 Cash budget, 482 Cash cows, 178 Cash flow ratio, 515 Categorical imperative, 124 Category killers, 182 Central services, 175 Centralisation, 230 Chaffey, D, 371 Challenge, 63 Change, 254 Change, 602 Change agent, 259 Change and performance J curve, 246 Change control, 462 Change management, 259, 288 Change owner, 441 Channel management, 329 Channel structures, 333 Channel Tunnel, 53 Characteristics of strategic decisions, Charismatic leaders, 260 Chart of accounts, 347 Chief executive, 261 Client/server architecture, 341 Closed system, 275 Cobra report, 286 Co-branding, 391 Coca Cola, 78 Cognitivist theories, 123 Collaboration, 191 Collaborative CRM, 405 Collective intelligence, 403 Commercial auctions, 329 Commercial organisation, 92 Communication, 331, 452, 598 Communication backbones, 338 Comparative advantage, 36 Competence, 91, 95 Competence based qualifications, 542 Competence frameworks, 542 Competencies, 91, 542 Competitive advantage, 36, 170, 181, 331, 336, 540 Competitive environment, 51, 336 Competitive forces, 51, 56 Competitive products, 183 Competitive rivalry, 54, 57, 92, 93 Competitive strategy, 182 Competitors, 23 Complementary exporting, 172 Complementary products, 81 Completion Report, 464 Complex buying behaviour, 397 612 Index http://freeaccastudymaterial.blogspot.com/ E arnings per share, 517 E-business, 329 E-business adoption pyramid, 330 E-business strategy, 352 E-commerce, 329 E-commerce infrastructure, 337 E-commerce strategy, 351 Econometric models, 50 Economic environment, 27 Economic growth, 30 Economies of scale, 26, 92, 172, 192, 196 Economies of scope, 162 Electronic business, 329, 365 Electronic data interchange, 287 Electronic Data Interchange (EDI), 362, 366 Electronic Fund Transfers (EFT), 329 Electronic mail, 340 Electronic share trading, 329 Elkington, J, 33 Email, 331, 396 Email databases, 372 Email marketing, 371 E-marketing, 371 E-marketing mix (6 Is), 374 E-marketing plan, 372 Emergent strategy, 17, 551, 554 Employee learning, 540 Empowerment, 247, 539 Enforced choice, 208 Enterprise resource planning, 286, 308 Enterprise Resource Planning (ERP), 364 Entrepreneurial structure, 242 ate ym tud as cc ea /fr e htt p:/ log sp o t ria D ata, 96 Data migration, 315 Data mining, 401 Data warehouse, 99 Database marketing, 401 Databases, 237 Datamining, 99 Davenport and Short, 285 Deadweight cost of administration, 541 Debt ratios, 513 Decentralisation, 230, 231, 558 Decision-making unit, 72 Decline, 106 Definition, 278 Delayering, 265 Delta model, 190 Demand conditions, 37 Demand-led convergence, 51 Demerger, 195 Demography, 28 Deontology, 124 Design, 93 Design requirements, 314 Deskilling, 535, 541 Development, 109 Diamond, 36 Differentiated marketing, 75 Differentiation, 182 Differentiation, 182, 186, 189 Differentiation focus strategy, 184 Differentiation strategies, 187 Direct changeover, 316 Direct exporting, 171, 172 Direct marketing, 380 Disaster recovery, 348 Discounts, 80 Disintermediation, 333 Disruptive power, 286 Distintermediation, 379 Diversification, 194 Diversified form, 243 Diversity, 165 Divestment, 195 Dividend cover, 519 Dividend yield, 517 Divisional form, 243 Divisionalisation, 220, 221, 243 Document analysis, 312 Dogs, 178 Domestic country orientation, 166 Drivers, 442 Drivers of change, 23 Du Pont system of ratio analysis, 511 Dual authority, 223 Dynamic capabilities, 95 Dynamic pricing, 381 l.b Cultural control, 241 Cultural environment, 28 Cultural processes, 227, 555 Cultural web, 143, 257 Culture, 28, 141, 256, 331 Culture change, 602 Currency risk, 171 Current ratio, 515 Customer analysis, 79 Customer lifecycle, 81 Customer portfolio, 78 Customer profitability, 80 Customer profitability analysis, 80 Customer Relationship Management (CRM), 392 Customer service, 331, 371 Customer specific marketing, 401 Customers, 54, 71, 77, 79, 92 Customs, 141 Cycle of competition, 23, 63 co m/ http://freeaccastudymaterial.blogspot.com/ Index http://freeaccastudymaterial.blogspot.com/ 613 ria l.b log sp o t Financial services, 335 Firewall, 98, 340 Firm infrastructure, 102 Firm strategy, structure and rivalry, 37 First mover, 93 First mover advantage, 190 First pass selection, 318 Five competitive forces, 51 Five Cs, 168 Five forces, 23, 183 Flexibility, 314 Flexible firm, 238 Flexible manufacturing, 537 Focus, 182, 184 Focussed differentiation, 188 Follower strategy, 108 Forcefield analysis, 256 Forecast, 482 Forecasting a cash surplus, 484 Forecasts, 41 Forming, 455 Forums, 335 Forward integration, 163 Four Ps, 69 Franchising, 198, 199 Functional organisation, 219 Functional requirements, 314 Functional structure, 219 as tud ym ate Environment, 10, 22 Environmental change, 162 Environmental costs, 32 Environmental feasibility, 306 Environmental performance, 32 Environmental protection, 31 Environmental protection policy, 31 Environmental risk screening, 31 Environmental taxes, 32 Environmental uncertainty, 23 Environment-related management accounting, 32 Envisioning, 174 E-procurement, 362 Equity, 485 Equity share capital, 485 Equity shares, 485 ERP, 308 Escrow agreements, 320 E-tailers, 334 Ethical dilemmas, 123, 124, 125 Ethical relativism, 123 Ethical stance, 135 Ethics, 123 Ethnocentrism, 166 Eurostar, 53 Evolution, 255, 259 Exit barriers, 55, 195 Experience curve, 93 Expert system, 99 Explicit knowledge, 98 Exponential smoothing, 50 Exporting, 167, 172 Export-led growth, 165 Extended marketing mix, 70 Extended product, 377 Externalities, 134 Extortion, 125 Extranet, 98, 336, 339, 340, 365 co m/ http://freeaccastudymaterial.blogspot.com/ Factor conditions, 36 htt p:/ /fr e ea cc Failure strategies, 188 Fan clubs, 335 Feasibility, 204, 206, 226, 305, 351 Feedback, 536 Fiedler, 532 Fighting back, 63 File creation, 315 Finance, 11 Financial, 431 Financial control, 241 Financial control style, 232 Financial feasibility, 306 Financial intermediaries, 335 Financial management, 481 614 G2B (Government-to-Business), 333 G2C (Government-to-Citizen), 333 G2E (Government-to-Employee), 333 G2G (Government-to-Government), 333 Gantt chart, 448 Gantt charts, 467 Gap analysis, 278 Gaps and disconnects, 305 Gateway, 458 Gearing, 513 Gearing ratio, 514 Generic strategies, 181, 182 Generic strategy, 57 Geocentrism, 167 Geographical, 73 Ghoshal and Bartlett, 237 Gifts, 126 Global company, 168 Global competition, 35 Global heterarchy, 169 Globalisation, 34, 165 Goal, 6, 7, Golden fleeces, 180 Goold and Campbell, 231 Governance framework, 136 Government, 57 Index http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ htt p:/ /fr e ea cc as tud Immanuel Kant, 124 Immigration, 165 Impact reduction, 319 Imperatives, 314 Implementation, 282, 319 Import substitution, 165 Imposed strategy, 554 Improved products, 183 Inbound logistics, 101 Incentives, 371 Independence of location, 375 Indirect exporting, 171, 172 Individualisation, 375 Industrial market, 73, 74 Industrial markets, 71 Industry, 23, 50 Industry life cycle, 64, 205 Industry scenarios, 42 Industry standard, 190 Industry structure, 375 Inflation, 519 Information, 96 log sp o t ria ate ym Icarus paradox, 555 l.b Habitual buying behaviour, 397 Hammer and Champy, 284 Harmon, 303 Harmon's process-strategy matrix, 289 Harris and Ogbonna, 266 Heartland businesses, 180 Hersey and Blanchard, 532 Hierarchical structure, 247 Hierarchy of objectives, Holding company, 220, 221 Hollow organisation structure, 233 Horizontal integration, 163 Human capital theory, 541 Human relations, 536, 539 Human resource management, 11, 102 Human resources, 36, 115 Hybrid chief executive, 261 Hybrid strategy, 187 Hypercompetition, 64, 95, 189, 190 Hypercompetitive strategy, 191 Information intensity matrix, 358 Information systems, 11, 197 Information technology, 56 Infrastructure, 36 In-house development, 309 Initial implementation requirements, 315 Innovation, 64, 103, 107, 110, 196 Innovation and competitive advantage, 107 Insiderisation, 168 Intangible products, 15 Intangible resources, 91 Integrated reporting, 146 Integration, 375 Intelligence, 375 Intended strategy, 550 Interactive advertising, 371 Interactive digital television, 343 Interactivity, 375 Interdependence of organisations, 237 Interest cover, 514 Interest yield, 517 Internal development, 196 Internal marketing, 380 International Standards Organisation, 337, 342, 365 Internet, 169, 287, 338, 339 Internet Protocol (IP), 341 Intervention, 175 Interviews, 310 Intranet, 98, 336, 339, 365 Intrapreneurship, 110 Investment decision-maker, 450 Investment synergy, 162 Invitation to tender, 317 IP address, 341 co m/ Government policy, 35 Graphical User Interface (GUI), 338 Grease money, 126 Green issues, 32 Green pressure groups, 31 Group, 454 Group roles, 455 Groupthink, 456 Groupware, 98 Growth vector matrix, 192 J anis, IL, 456 Japanese model of corporate governance, 139 Job content, 536 Job design, 534, 541 Job enlargement, 536 Job enrichment, 536, 539 Job losses, 265 Job rotation, 536 Joint ventures, 173, 198, 605 K alakota and Robinson, 352 Kall-Kwik, 199 Kanban, 537 Key customer analysis, 79 Key drivers of change, 34 Key factor, 90 Key performance indicators, 77 Knowledge, 36, 96 Knowledge management, 95 Index http://freeaccastudymaterial.blogspot.com/ 615 http://freeaccastudymaterial.blogspot.com/ as tud ym ate ria l.b log sp o t Labour, 165 Latin model of corporate governance, 139 Le Shuttle, 53 Lead generation, 371 Leader strategy, 108 Leadership, 142, 227, 260, 555 Leadership style, 598 Leadership styles, 453 Leading indicators, 50 Lean production, 537 Learning, 196, 201, 558 Learning curve, 93, 172, 182 Learning organisation, 95, 557, 558 Leasing, 237 Least squares regression analysis, 46 Legal environment, 33 Levels of strategy, 10, 19 Licensing agreement, 198 Life cycle, 32, 76 Life cycle analysis, 205 Life cycle/portfolio matrix, 205 Lifestyle segmentation, 73 Lifetime costs, 93 Limiting factor, 90 Linear regression analysis, 44 Linkages, 102 Loan capital, 487 Loan stock, 487 Lock-in, 190 Logical incrementalism, 555, 557, 558 Long-term direction, Lotus Notes, 98 Low price strategy, 187 Luxury goods, 166 Lynch, 192 cc Machine bureaucracy, 242 htt p:/ /fr e ea Machine cells, 537 Macro scenarios, 41 Macro-environment, 23 Malls, 334 Management by exception, 454, 463 Management by objectives, Management of change, 246 Management of relationships, 236 Management style, 142 Management synergy, 162 Management team, 336 Managerial grid, 530 Managerial Grid, 530 616 Market, 71 Market attractiveness, 170 Market convergence, 165 Market development, 193 Market globalisation, 35 Market growth rate, 178 Market opportunity, 336 Market options matrix, 192 Market penetration, 193 Market position, 203 Market power, 162 Market processes, 230 Market segmentation, 72, 73 Market segments, 23, 81 Market share, 79, 178, 192 Market strategy, 336 Marketing, 11, 69, 110, 197, 329 Marketing and sales, 101 Marketing audit, 78 Marketing mix, 69 Marketing synergy, 162 Markets, 23 Mashups, 403 Matrix, 244 Matrix organisation, 222, 454 Matrix structure, 222, 223, 224 Maturity, 105, 532 McDonald and Wilson, 374 McGregor, 531 Measurable, 431 Medium-term forecasting, 50 Megatrends, 350 Mendelow's matrix, 130 Mergers, 197 Middle line, 241, 243 Milestone, 459 Military analogies, 63 Mintzberg, 586 Mintzberg, H, 134, 241, 249 Mission, 6, 9, 142 Mission statement, Missionary organisation, 245 Modes of entry, 171 Modular organisation structure, 233, 234 Moral hazard, 137 Moving averages, 49 Multi-disciplinary teams, 455 Multi-divisional structure, 221 Multinationals, 14 Multi-skilling, 539 Mythology, 142 co m/ Knowledge work, 30, 539 Kotler, 72 KPIs, 77 Kvaerner, 33 National vocational qualifications, 542 Natural law, 124 Neo-human relations, 536 Index http://freeaccastudymaterial.blogspot.com/ Network Access Points, 338 Network diagram, 448, 467 Network marketing, 380 Network organisations, 237 Networks, 264 Networks of influence, 264 New product development, 109 New product strategies, 107, 108 No frills strategy, 187 Non-cognitivism, 123 Non-functional requirements, 314 Non-substitutability, 94 Norming, 456 Not for profit organisations, 15 Not for profit services, 50 Packaged holidays, 29 htt p:/ /fr e ea cc as tud ym log sp o t l.b ate Observable, 431 Observation, 311 Office automation systems, 98 Offshoring, 235 Ohmae 5Cs, 168 One-to-one marketing, 401 Online transaction, 372 Open system, 275 Open Systems Interconnection (OSI) standard, 342 Operability requirements, 316 Operating adhocracy, 244 Operating core, 241, 243 Operating costs, 433 Operating gearing, 514 Operating synergy, 162 Operational CRM, 405 Operational strategies, 11 Operations, 101 Opportunities, 81, 115 Options generation, 554 Ordinary shares, 485 Organic growth, 196 Organisation, 30 Organisational buying behaviour, 72 Organisational configuration, 219 Organisational culture, 142 Organisational development, 336 Organisational iceberg, 143 Organisational knowledge, 95 Organisational learning, 95 Outbound logistics, 101 Output controls, 227 Outsourcing, 93, 233, 235, 248, 293 Outsourcing, offshoring and shared servicing, 234 Overseas branches, 168 Overseas manufacture, 171, 173 Overseas production, 168, 173 ria Objective, 6, Paradigm, 143, 254, 263 Parallel running, 316 Parental developers, 176 Patterns in information, 96 Pay Per Click advertising, 371 People, 70, 380 Pepsi, 166 Performance targets, 227 Performing, 456 Peripheral employees, 28 Permission marketing, 398 Personalisation, 399 Personality, 455 Personnel management, 540 PERT, 449 PESTEL, 23, 24 Philips, 196 Physical evidence, 70, 381 Physical resources, 36, 90 Pilot operation, 316 PIMS, 107, 178 Place, 70 Planning, 536 Planning processes, 227 Point of Presence (POP), 338 Policies and standards of behaviour, Political hot boxes, 180 Political processes, 556 Political risk, 26, 170 Political view, 556 Politics, 264, 556 Polycentrism, 166 POPIT model, 275, 280 Portals, 334 Porter, 181 Porter, M, 36, 51, 100, 181 Porter and Millar, 358 Porter's diamond, 36 Portfolio managers, 175 Position audit, 89 Post-implementation reviews, 466 Postma, P, 400 Post-project review, 464 Power, 264 Power games, 556 Power structures, 264 PR, 380 Price, 70, 377, 382 Price/Earnings ratio, 517 Price-based strategies, 187, 189 Primary activities, 101 Primary working group, 455 Process, 381 Process commoditisation, 293 Process improvement, 288 co m/ http://freeaccastudymaterial.blogspot.com/ Index http://freeaccastudymaterial.blogspot.com/ 617 http://freeaccastudymaterial.blogspot.com/ Q log sp o t ualitative forecasting, 44 Quality, 416, 536 Quality control, 452 Quality improvement methods, 287 Quality methods, 537 Quantifiable, 431 Question marks, 178 Questionnaires, 311 Quick ratio, 515 ym tud as cc ea /fr e htt p:/ 618 co m/ Purpose, R ria l.b ao et al, 353 Rarity, 94 Ratio analysis, 509 Ratio pyramids, 511 Rayport and Jaworski, 353 Real options, 208 Realisation of the benefits of change, 283 Realised strategy, 550, 554 Reconstruction, 255, 259 Redesign pattern, 303 Reduction, 463 Redundancy payments, 55 Redundancy programmes, 265 Refreeze, 603 Regiocentrism, 167 Regression analysis, 46 Reinforcing cycles, 246 Reintermediation, 333, 334, 379 Related and supporting industries, 37 Related diversification, 163 Relationship marketing, 393, 398 Relationships, 219, 230 Relative market share, 178 Relevant costs, 502 Renewable and non-renewable resources, 33 Research and development, 11, 108, 110 Research techniques, 312 Resource, 95 Resource allocation routines, 555 Resource audit, 89 Resource histogram, 449 Resource-based strategy, 90 Resources, 10, 89, 415 Response, 63 Return on capital employed, 511 Revenue model, 336 Revolution, 255, 259 Rhine model of corporate governance, 138 Ringelmann effect, 455 Risk, 170, 208 Risk assessment matrix, 463 Risk avoidance, 319 Risk management, 462 ate Process redesign, 288 Process redesign methodology, 291 Process redesign patterns, 303 Process reengineering, 288 Process research, 109 Processes, 70, 219 Procurement, 102 Product, 69, 377 Product class, 104 Product development, 194 Product differentiation, 52 Product form, 104 Product innovation, 64 Product life cycle, 64, 104, 106, 205 Product portfolio, 104 Product positioning, 76 Product research, 109 Production, 11, 197 Production possibility curve, 30 Product-market mix, 192 Product-market strategy, 192 Professional bureaucracy, 243 Profit margin, 512 Progress report, 458, 459 Project, 415 Project Board, 450 Project Budget, 447 Project champion, 450 Project change procedure, 461 Project co-ordinators, 222 Project Evaluation and Review Technique, 449 Project initiation, 598 Project management, 416, 470 Project management software, 467 Project manager, 450, 451 Project manager responsibilities, 451 Project owner, 450 Project sponsor, 450 Project stakeholders, 426, 431, 433, 440, 441, 442 Project teams, 540, 553 Project-based structure, 225 Promotion, 70, 379 Promotional mix, 380 Protocol analysis, 312 Protocol stack, 342 Prototyping, 312 Psychographic segmentation, 73 Public policy on competition, 25 Public sector, 15, 92, 227 Public sector portfolio matrix, 179 Public sector star, 179 Publisher websites, 335 Pull model, 355 Pure research, 109 Index http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ htt p:/ /fr e ea cc as tud log sp o t ym ate ria l.b Sales growth, 513 Sales promotion, 380 Sales support, 380 Scale economies, 52 Scenario, 23, 41 Scenario building, 41 Scientific Management, 534, 535, 539 Scope creep, 459 Scottish vocational qualifications, 542 Screening process, 170 Search bots, 334 Search engine, 395 Search engine marketing, 371 Search Engine Optimisation, 403 Search engines, 334 Seasonal variations, 47, 49 Second pass selection, 318 Secondary ratios, 512 Sector, 23, 50 Segment attractiveness, 75 Segment validity, 75 Segmentation, 71, 393, 397 Segmentation bases, 73 Segmentation of the industrial market, 74 Segmentation variables, 73 Self contained, 219 Self-control, 227 Semi-closed system, 275 Services, 165 Set-up costs, 537 Shamrock organisation, 237, 238, 241 Shared servicing, 236 Shaw and Stone, 401 Shopping goods, 71 Simple structure, 242 Situation analysis, 254 Six Is, 374 Size, 220, 244 Skidmore and Eva, 310, 312 SLEPT, 24 Small businesses, 14 SMART objectives, Social feasibility, 306 Social loafing, 455 Social needs, 536 Social networking, 402 Social responsibility, 127 Socio-demographic, 74 Software engineering, 286 Software installation, 316 Software package solution, 405 Software packages, 309, 313, 317 Specialisation, 539 Stages of e-commerce development, 353 Stakeholder analysis, 262 Stakeholder concept, 393 Stakeholder groups, 262 Stakeholder mapping, 130, 131 Stakeholder theory, 130 Stakeholders, 128, 162, 207, 261, 262 Stakeholders' objectives, 128 Standard cost, 490 Standard costing, 490 Standardisation, 244 Stars, 178 STEEPLE, 24 Stereotypical configurations, 241 Stock, 487 Stock market ratios, 511, 517 Storming, 456 Strategic alliances, 201, 233 Strategic analysis, 554 Strategic apex, 241, 558 Strategic business units, 161 Strategic capability, 9, 12, 89, 93, 115, 189, 540 Strategic change, 254, 554 Strategic choices, 12, 550 Strategic control, 9, 232 Strategic control style, 232 Strategic customer, 77, 81 Strategic drift, 17, 555, 557 Strategic gaps, 81 Strategic group analysis, 68 Strategic groups, 23, 68, 81 Strategic intent, Strategic leadership, 260 Strategic management accounting, 80 Strategic management styles, 232 Strategic planning, 232 Strategic planning process, Strategic planning systems, 551 Strategic position, 12, 550 Strategic project management, 419 Strategic space, 69 Strategies for market challengers, 204 Strategies for market followers, 204 Strategies for market leaders, 203 Strategies for market nichers, 204 Strategy, 4, 5, Strategy as design, 16 co m/ Risk mitigation, 319 Risk reduction, 319 Risk register, 462 Risks of poor corporate governance, 141 Rituals, 29, 141 Rivalry amongst current competitors, 51, 54 Robustness, 94 Rollback analysis, 499 Routines, 263 Rummler – Brache methodology, 287 Index http://freeaccastudymaterial.blogspot.com/ 619 T as tud htt p:/ /fr e ea cc acit knowledge, 95, 98 Tagging, 403 Takeover, 208 Tangible resources, 91 Tannenbaum and Schmidt, 529 Target market segments, 262 Target marketing, 76 Taylor, F, 534 TCP/IP protocol stack, 337, 342, 365 Team, 455 Team-based structure, 225 Teambuilding, 417, 452 Technical feasibility, 306 Technical requirements, 314 Technological environment, 30 620 ria l.b log sp o t Technological innovations, 196 Technologies, 329 Technology development, 102 Technostructure, 241 Theory X and Theory Y, 531 Theory Y, 531 Threat from substitute products, 53 Threat of new entrants, 51, 52 Threat of substitute products, 51 Threats, 81, 115 Threshold capabilities, 91 Threshold competence, 92 Time and cost constraints, 317 Time horizon, 553 Time series analysis, 47 Top-down budgeting, 447 Total quality, 537 TOWS matrix, 117, 188 Transactional leaders, 260 Transference, 463 Transnational, 169, 241 Transparent pricing, 381 Travel agents, 335 Trend line, 47 Tuckman, 455 Turnaround, 261 Turnover periods, 516 ate ym Strategy as experience, 16, 17 Strategy as ideas, 16, 17 Strategy clock, 186 Strategy into action, 12, 550 Strategy lenses, 15 Strengths, 115 Structure, 142, 219 Stuck-in-the-middle strategy, 185 Styles of change management, 258 Subcultures, 29, 142 Substitutes, 56, 81 Succession planning, 543 Suitability, 204, 205, 351 Supermarkets, 78 Supervision, 227 Supplier citizenship requirements, 315 Supplier stability requirements, 314 Supply chain, 354, 366 pull model, 355 push model, 354 Supply chain management, 354, 359, 366 Supply costs, 92 Supply-led convergence, 51 Support activities, 101 Support staff, 242, 244 Sustainability, 33 Sustainability Ltd, 33 Sustainable competitive advantage, 93, 189 Sustaining competitive advantage, 189 Switching costs, 52 SWOT analysis, 116 Symbolic processes, 263 Symbols, 263 Synergy, 162, 194 Synergy managers, 176 System, 275 System architecture, 336, 337, 365 System implementation, 316 Systems theory, 275 co m/ http://freeaccastudymaterial.blogspot.com/ Uncertainty, 557 Undifferentiated marketing, 75 Unique resources, 89, 91 Universal Mobile Telephone System (UMTS), 343 Unrealised strategy, 551 Unrelated diversification, 164 User contribution systems, 239 User generated content, 403 User groups, 335 User training, 316 Utilisation of indivisibilities, 93 Utilitarianism, 123 Value activities, 100, 101, 356 Value chain, 100, 192, 355, 356 Value creation, 174 Value destruction, 175 Value drivers, 356 Value network, 103 Value proposition, 336 Value system, 103 Value trap businesses, 181 Value-added analysis, 304 Values, 6, 142 Variance, 492 Vertical disintegration, 360 Index http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ Wal-Mart, 99 co m/ htt p:/ /fr e ea cc as tud ym ate ria l.b Waste minimisation schemes, 32 Weaknesses, 115 Web 2.0 technologies, 402 Web-based communities, 402 Website evaluators, 335 Weirich, 117 Weirich's TOWS matrix, 117 What if? analyses, 468 WiFi Internet access, 343 Wireless Application Protocol (WAP), 343 Wireless commerce, 343 Withdrawal, 195 Work study, 535 Workflow systems, 286 Workshops, 312, 553 World Wide Web, 336, 338, 365 Written questions, 311 log sp o t Vertical integration, 163, 360 Viral marketing, 395 Virtual and network organisational structures, 233 Virtual integration, 360 Virtual organisation, 239 Virtual resellers, 335 Virtual teams, 237 Virtue ethics, 125 Vision, Visual identity, 391 Vocabulary of strategy, Index http://freeaccastudymaterial.blogspot.com/ 621 ... http://freeaccastudymaterial.blogspot.com/ Helping you to pass BPP Learning Media – ACCA Approved Learning Partner – content co m/ http://freeaccastudymaterial.blogspot.com/ log sp o t As ACCA s... http://freeaccastudymaterial.blogspot.com/ Introduction http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ co m/ Studying P3 Much of the P3 exam is concerned with business strategy... http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ co m/ Syllabus and Study Guide htt p:/ /fr e ea cc as tud ym ate ria l.b log sp o t The P3 syllabus and study