BCS BUSINESS ANALYSIS FOUNDATION TERMS
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
Question:
1. The definition of strategy (Johnson, Scholes and Whittington
2008)
Answer:
Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a
changing environment through its configuration of resources and competences with the aim of fulfilling
stakeholder expectations (page
40)
Question:
2. The POPIT Model
Answer:
The POPIT Model shows aspects of an organisational business system. Business Analysts need to
consider: People, Organisation, Processes, and Information & Technology (page 11)
Question:
3. Core Responsibilities of a Business Analyst
Answer:
Investigate business systems, evaluate actions to improve the operation of said systems, document the
business requirements, elaborate requirements (page 12)
Question:
4. Rational for Business Analysis
Answer:
Root causes not symptoms, Business improvement not IT change, Options not solutions, Feasible
contributing requirements not meeting all requests, entire business change lifecycle not just requirements
definition, negotiation not avoidance (page 13)
Question:
5. Business Analysis Maturity Model (BAMM)
Answer:
System Improvement --> Process Improvement --> Business Improvement (page
13)
Question:
6. PESTLE analysis
Answer:
Framework to help organisations assess their external business environment, includes political, economic,
socio-cultural, technological, legal, and environmental issues (page 43)
, Question:
7. Porter's Five Forces analysis
Answer:
Analysis of profitability and competition defined by Michael Porter in 1980, also known as Industry and
Competitive Analysis. A framework considering the interplay between (1 central box) Industry
competitors -- the intensity of rivalry among existing firms, (2 above box) the threat of new entrants, (3
below box) the threat of substitute goods or services, (4 right box) the bargaining power of buyers, and (5
left box) the bargaining power of suppliers (page 45)
Question:
8. MOST analysis
Answer:
Internal environment analysis that examines the current business positioning, examines Mission,
Objectives, Strategy, and Tactics (page 47)
Question:
9. Boston Matrix
Answer:
Internal environment analysis that audits resources and analyses portfolio, the original portfolio matrix
developed by Boston Consulting Group; examines a product portfolio according to the growth rate of the
whole market and the relative market of a product within that market; graphs the market growth vs. market
share in quadrants, a product is placed in one of four categories - stars get the gold (high/high), cows are
milked (high/low), cats are examined (low/high), dogs are buried (low/low) (page 49)
Question:
10. Resource Audit
Answer:
Internal analysis to identify core competences, examines physical, financial, human, know-how, reputation
(page 48)
Question:
11. SWOT Analysis
Answer:
Tool that combines external/internal environmental analysis, examines strengths, weaknesses,
opportunities, and threats (page 50)
Question:
12. McKinsey 7S Model
Answer:
Tool to help with executing strategy; Shared values at the center with spokes connecting outside, Structure,
Systems, Style, Staff, Skills, Strategy (page 52)
Question:
13. Balanced Business Scorecard
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
Question:
1. The definition of strategy (Johnson, Scholes and Whittington
2008)
Answer:
Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a
changing environment through its configuration of resources and competences with the aim of fulfilling
stakeholder expectations (page
40)
Question:
2. The POPIT Model
Answer:
The POPIT Model shows aspects of an organisational business system. Business Analysts need to
consider: People, Organisation, Processes, and Information & Technology (page 11)
Question:
3. Core Responsibilities of a Business Analyst
Answer:
Investigate business systems, evaluate actions to improve the operation of said systems, document the
business requirements, elaborate requirements (page 12)
Question:
4. Rational for Business Analysis
Answer:
Root causes not symptoms, Business improvement not IT change, Options not solutions, Feasible
contributing requirements not meeting all requests, entire business change lifecycle not just requirements
definition, negotiation not avoidance (page 13)
Question:
5. Business Analysis Maturity Model (BAMM)
Answer:
System Improvement --> Process Improvement --> Business Improvement (page
13)
Question:
6. PESTLE analysis
Answer:
Framework to help organisations assess their external business environment, includes political, economic,
socio-cultural, technological, legal, and environmental issues (page 43)
, Question:
7. Porter's Five Forces analysis
Answer:
Analysis of profitability and competition defined by Michael Porter in 1980, also known as Industry and
Competitive Analysis. A framework considering the interplay between (1 central box) Industry
competitors -- the intensity of rivalry among existing firms, (2 above box) the threat of new entrants, (3
below box) the threat of substitute goods or services, (4 right box) the bargaining power of buyers, and (5
left box) the bargaining power of suppliers (page 45)
Question:
8. MOST analysis
Answer:
Internal environment analysis that examines the current business positioning, examines Mission,
Objectives, Strategy, and Tactics (page 47)
Question:
9. Boston Matrix
Answer:
Internal environment analysis that audits resources and analyses portfolio, the original portfolio matrix
developed by Boston Consulting Group; examines a product portfolio according to the growth rate of the
whole market and the relative market of a product within that market; graphs the market growth vs. market
share in quadrants, a product is placed in one of four categories - stars get the gold (high/high), cows are
milked (high/low), cats are examined (low/high), dogs are buried (low/low) (page 49)
Question:
10. Resource Audit
Answer:
Internal analysis to identify core competences, examines physical, financial, human, know-how, reputation
(page 48)
Question:
11. SWOT Analysis
Answer:
Tool that combines external/internal environmental analysis, examines strengths, weaknesses,
opportunities, and threats (page 50)
Question:
12. McKinsey 7S Model
Answer:
Tool to help with executing strategy; Shared values at the center with spokes connecting outside, Structure,
Systems, Style, Staff, Skills, Strategy (page 52)
Question:
13. Balanced Business Scorecard
