BST – ICAEW QUESTIONS WITH VERIFIED
ANSWERS [ GRADED A+]
Strategy - ✔✔The direction and scope of an organisation over the long term
which achieves advantage for the organisation
The rational approach - ✔✔Traditional, formal, top down
Benefits of strategic planning - ✔✔- Provides a framework
- Encourages LT planning
- Goal congruence
- Considers the needs of stakeholders
- Optimised use of resources
©morren2024/2025.Year published 2024.
,- Considers changes in business environment
- Monitors progress
Drawbacks if strategic planning - ✔✔- Lacks evidence to prove it leads to success
- Businesses may need to be more dynamic and react to problems as they occur
- Formal planning reduces initiative and innovate thinking
- Political infighting can disrupt the process
Emergent strategy - ✔✔Behaviours which are aspirated and which have a
strategic impact. Emerge over time in response to the environment. Tried and
developed as implemented
Mintzbergs different grades of strategy - ✔✔Intended - conscious
Deliberate - put into practice
Realised - resultant
©morren2024/2025.Year published 2024.
,Who/ what business would benefit from emergent strategies - ✔✔- Operate in
dynamic environments and require quick decision making
- Have flexible, decentralised organisational structures
What is resource based strategic advantage - ✔✔Inside out - Focus on developing
internal resources and competencies which are hard to imitate and find or create
markets to exploit these strengths
What is a positioning based strategic advantage - ✔✔Outside in - Focus on
analysing the external environment to identify customer needs and adapting to
meet these needs
What is the risk of a resource based strategic advantage - ✔✔Organisation may
fail to react to long term industry trends
©morren2024/2025.Year published 2024.
, What is the risk of a positioning based strategic advantage - ✔✔Customers needs
changed so organisation is forced to constantly evolve
What are the 5 things that would influence planning horizons - ✔✔- Nature of
ownership
- Capital structure
- Nature of industry
- Business environment
- Nature of management
Benefits of sustainability - ✔✔- Attracting customers who are committed to
sustainable practice
- Attracting and retaining skilled staff
- Building positive relationships with like-minded suppliers
- Demonstrating to shareholders an ability to deliver reliable returns
©morren2024/2025.Year published 2024.
ANSWERS [ GRADED A+]
Strategy - ✔✔The direction and scope of an organisation over the long term
which achieves advantage for the organisation
The rational approach - ✔✔Traditional, formal, top down
Benefits of strategic planning - ✔✔- Provides a framework
- Encourages LT planning
- Goal congruence
- Considers the needs of stakeholders
- Optimised use of resources
©morren2024/2025.Year published 2024.
,- Considers changes in business environment
- Monitors progress
Drawbacks if strategic planning - ✔✔- Lacks evidence to prove it leads to success
- Businesses may need to be more dynamic and react to problems as they occur
- Formal planning reduces initiative and innovate thinking
- Political infighting can disrupt the process
Emergent strategy - ✔✔Behaviours which are aspirated and which have a
strategic impact. Emerge over time in response to the environment. Tried and
developed as implemented
Mintzbergs different grades of strategy - ✔✔Intended - conscious
Deliberate - put into practice
Realised - resultant
©morren2024/2025.Year published 2024.
,Who/ what business would benefit from emergent strategies - ✔✔- Operate in
dynamic environments and require quick decision making
- Have flexible, decentralised organisational structures
What is resource based strategic advantage - ✔✔Inside out - Focus on developing
internal resources and competencies which are hard to imitate and find or create
markets to exploit these strengths
What is a positioning based strategic advantage - ✔✔Outside in - Focus on
analysing the external environment to identify customer needs and adapting to
meet these needs
What is the risk of a resource based strategic advantage - ✔✔Organisation may
fail to react to long term industry trends
©morren2024/2025.Year published 2024.
, What is the risk of a positioning based strategic advantage - ✔✔Customers needs
changed so organisation is forced to constantly evolve
What are the 5 things that would influence planning horizons - ✔✔- Nature of
ownership
- Capital structure
- Nature of industry
- Business environment
- Nature of management
Benefits of sustainability - ✔✔- Attracting customers who are committed to
sustainable practice
- Attracting and retaining skilled staff
- Building positive relationships with like-minded suppliers
- Demonstrating to shareholders an ability to deliver reliable returns
©morren2024/2025.Year published 2024.
