BDS TEST PAPER ALL ANSWERS AND QUESTIONS
SET A+
✔✔ What is the rational/formal approach to strategy? - ✔✔A top-down, systematic
planning approach: internal + external analysis -> mission/objectives -> gap -> strategic
choice -> implementation -> review/control. Use when a business plans strategy
deliberately.
✔✔What is Mintzberg's emergent strategy approach? - ✔✔Strategy develops over time
as the business reacts and learns. Remember: intended strategy -> deliberate strategy;
some becomes unrealised; emergent strategies arise; together they form realised
strategy.
✔✔What is Mendelow's power-interest matrix? - ✔✔Stakeholder model. Low power/low
interest = minimal effort; low power/high interest = keep informed; high power/low
interest = keep satisfied; high power/high interest = key players/participation.
✔✔What is PESTEL used for? - ✔✔Macro-environment analysis: Political, Economic,
Social/demographic, Technological, Ecological/environmental, Legal. Use for broad
external opportunities/threats outside the industry.
✔✔What is Porter's Diamond used for? - ✔✔Explains why a COUNTRY has competitive
advantage in an industry.
Four factors: factor conditions; demand conditions; related/supporting industries; firm
strategy, structure and rivalry.
✔✔Do not confuse Porter's Diamond with Porter's Five Forces. - ✔✔Diamond =
national/geographic competitive advantage. Five Forces = competitive pressure and
long-run profitability within an INDUSTRY.
✔✔What is a critical success factor (CSF)? - ✔✔A small number of goals/product
features vital to success: areas where the organisation must excel because customers
particularly value them.
, ✔✔What are the 9Ms in a resource audit? - ✔✔Men, Money, Management, Make-up,
Machinery, Methods, Markets, Materials, Management information.
Trigger: 'does the business have resources to deliver the strategy?'
✔✔What are Kay's sources of core competence? - ✔✔Reputation; innovative ability;
competitive architecture (internal relationships, external relationships and networks).
Use to identify hard-to-copy sources of advantage.
✔✔What are the PRIMARY activities in Porter's Value Chain? - ✔✔Inbound logistics;
Operations; Outbound logistics; Marketing & sales; Service. These are directly involved
in creating/delivering the product or service.
✔✔What are the SUPPORT activities in Porter's Value Chain? - ✔✔Procurement;
Technology development; Human resource management; Firm infrastructure. They
support primary activities and help them operate effectively.
✔✔What are cost drivers and value drivers in Value Chain analysis? - ✔✔Cost drivers =
factors causing costs; important for cost leadership. Value drivers = sources of
customer value/quality; important for differentiation. Link activities to the firm's generic
strategy.
✔✔What is the Product Life Cycle (PLC)? - ✔✔Development -> introduction -> growth -
> maturity -> decline. Use for the life stage of ONE product/service.
✔✔What is the BCG matrix? - ✔✔Portfolio model using market growth + relative market
share. Star = high/high; Cash cow = low growth/high share; Problem child = high
growth/low share; Dog = low/low.
✔✔What are Porter's generic strategies? - ✔✔Cost leadership; Differentiation;
Focus/niche (cost focus or differentiation focus). Trigger: 'how does this company
compete / what is its competitive positioning?'
✔✔What is Ansoff's matrix? - ✔✔Direction of growth: Existing product/existing market =
market penetration; new product/existing market = product development; existing
product/new market = market development; new product/new market = diversification.
✔✔Which Ansoff strategy is usually the riskiest? - ✔✔Diversification, because BOTH
product and market are new. Unrelated diversification is generally riskier than related
diversification because fewer existing competences can be reused.
✔✔Forward vs backward vertical integration? - ✔✔Forward = move towards the
CUSTOMER/distribution end of the chain. Backward = move towards
SUPPLIERS/inputs. Horizontal integration = combine with a business at the same
stage/market level.
SET A+
✔✔ What is the rational/formal approach to strategy? - ✔✔A top-down, systematic
planning approach: internal + external analysis -> mission/objectives -> gap -> strategic
choice -> implementation -> review/control. Use when a business plans strategy
deliberately.
✔✔What is Mintzberg's emergent strategy approach? - ✔✔Strategy develops over time
as the business reacts and learns. Remember: intended strategy -> deliberate strategy;
some becomes unrealised; emergent strategies arise; together they form realised
strategy.
✔✔What is Mendelow's power-interest matrix? - ✔✔Stakeholder model. Low power/low
interest = minimal effort; low power/high interest = keep informed; high power/low
interest = keep satisfied; high power/high interest = key players/participation.
✔✔What is PESTEL used for? - ✔✔Macro-environment analysis: Political, Economic,
Social/demographic, Technological, Ecological/environmental, Legal. Use for broad
external opportunities/threats outside the industry.
✔✔What is Porter's Diamond used for? - ✔✔Explains why a COUNTRY has competitive
advantage in an industry.
Four factors: factor conditions; demand conditions; related/supporting industries; firm
strategy, structure and rivalry.
✔✔Do not confuse Porter's Diamond with Porter's Five Forces. - ✔✔Diamond =
national/geographic competitive advantage. Five Forces = competitive pressure and
long-run profitability within an INDUSTRY.
✔✔What is a critical success factor (CSF)? - ✔✔A small number of goals/product
features vital to success: areas where the organisation must excel because customers
particularly value them.
, ✔✔What are the 9Ms in a resource audit? - ✔✔Men, Money, Management, Make-up,
Machinery, Methods, Markets, Materials, Management information.
Trigger: 'does the business have resources to deliver the strategy?'
✔✔What are Kay's sources of core competence? - ✔✔Reputation; innovative ability;
competitive architecture (internal relationships, external relationships and networks).
Use to identify hard-to-copy sources of advantage.
✔✔What are the PRIMARY activities in Porter's Value Chain? - ✔✔Inbound logistics;
Operations; Outbound logistics; Marketing & sales; Service. These are directly involved
in creating/delivering the product or service.
✔✔What are the SUPPORT activities in Porter's Value Chain? - ✔✔Procurement;
Technology development; Human resource management; Firm infrastructure. They
support primary activities and help them operate effectively.
✔✔What are cost drivers and value drivers in Value Chain analysis? - ✔✔Cost drivers =
factors causing costs; important for cost leadership. Value drivers = sources of
customer value/quality; important for differentiation. Link activities to the firm's generic
strategy.
✔✔What is the Product Life Cycle (PLC)? - ✔✔Development -> introduction -> growth -
> maturity -> decline. Use for the life stage of ONE product/service.
✔✔What is the BCG matrix? - ✔✔Portfolio model using market growth + relative market
share. Star = high/high; Cash cow = low growth/high share; Problem child = high
growth/low share; Dog = low/low.
✔✔What are Porter's generic strategies? - ✔✔Cost leadership; Differentiation;
Focus/niche (cost focus or differentiation focus). Trigger: 'how does this company
compete / what is its competitive positioning?'
✔✔What is Ansoff's matrix? - ✔✔Direction of growth: Existing product/existing market =
market penetration; new product/existing market = product development; existing
product/new market = market development; new product/new market = diversification.
✔✔Which Ansoff strategy is usually the riskiest? - ✔✔Diversification, because BOTH
product and market are new. Unrelated diversification is generally riskier than related
diversification because fewer existing competences can be reused.
✔✔Forward vs backward vertical integration? - ✔✔Forward = move towards the
CUSTOMER/distribution end of the chain. Backward = move towards
SUPPLIERS/inputs. Horizontal integration = combine with a business at the same
stage/market level.
