BCS Business Analysis Foundation TERMS
Exam Questions and Correct Answers
The definition of strategy (Johnson, Scholes and Whittington 2008) - CORRECT
ANSWERS 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)
The POPIT Model - CORRECT ANSWERS The POPIT Model shows aspects of an organisational
business system. Business Analysts need to consider:
People, Organisation, Processes, and Information & Technology (page 11)
Core Responsibilities of a Business Analyst - CORRECT ANSWERS Investigate business systems,
evaluate actions to improve the operation of said systems, document the business requirements,
elaborate requirements (page 12)
Rational for Business Analysis - CORRECT ANSWERS 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)
Business Analysis Maturity Model (BAMM) - CORRECT ANSWERS System Improvement -->
Process Improvement --> Business Improvement (page 13)
PESTLE analysis - CORRECT ANSWERS Framework to help organisations assess their external
business environment, includes political, economic, socio-cultural, technological, legal, and
environmental issues (page 43)
Porter's Five Forces analysis - CORRECT ANSWERS 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)
MOST analysis - CORRECT ANSWERS Internal environment analysis that examines the current
business positioning, examines Mission, Objectives, Strategy, and Tactics (page 47)
, Boston Matrix - CORRECT ANSWERS 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)
Resource Audit - CORRECT ANSWERS Internal analysis to identify core competences, examines
physical, financial, human, know-how, reputation (page 48)
SWOT Analysis - CORRECT ANSWERS Tool that combines external/internal environmental
analysis, examines strengths, weaknesses, opportunities, and threats (page 50)
McKinsey 7S Model - CORRECT ANSWERS Tool to help with executing strategy; Shared values
at the center with spokes connecting outside, Structure, Systems, Style, Staff, Skills, Strategy (page
52)
Balanced Business Scorecard - CORRECT ANSWERS Tool to help with executing strategy
"strategic balance sheet" as combines financial and non-financial; includes Vision & Strategy as
central, then outward connected to Financial, Internal Business Process, Learning & Growth,
Customer (page 53)
Critical Success Factors (CSFs) - CORRECT ANSWERS The few key areas where things must go
right for the business to flourish and for the manager's goals to be attained (page 54)
Key performance Indicators (KPIs) - CORRECT ANSWERS The quantifiable metrics a company
uses to evaluate progress toward critical success factors (page 54)
Business Analysis Process Model - CORRECT ANSWERS Key stages for a business analysis
project, in the context of the business:
1. Investigate Situation
2. Consider Perspectives
3. Analyse Needs
4. Evaluate Options
5. Define Requirements
Exam Questions and Correct Answers
The definition of strategy (Johnson, Scholes and Whittington 2008) - CORRECT
ANSWERS 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)
The POPIT Model - CORRECT ANSWERS The POPIT Model shows aspects of an organisational
business system. Business Analysts need to consider:
People, Organisation, Processes, and Information & Technology (page 11)
Core Responsibilities of a Business Analyst - CORRECT ANSWERS Investigate business systems,
evaluate actions to improve the operation of said systems, document the business requirements,
elaborate requirements (page 12)
Rational for Business Analysis - CORRECT ANSWERS 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)
Business Analysis Maturity Model (BAMM) - CORRECT ANSWERS System Improvement -->
Process Improvement --> Business Improvement (page 13)
PESTLE analysis - CORRECT ANSWERS Framework to help organisations assess their external
business environment, includes political, economic, socio-cultural, technological, legal, and
environmental issues (page 43)
Porter's Five Forces analysis - CORRECT ANSWERS 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)
MOST analysis - CORRECT ANSWERS Internal environment analysis that examines the current
business positioning, examines Mission, Objectives, Strategy, and Tactics (page 47)
, Boston Matrix - CORRECT ANSWERS 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)
Resource Audit - CORRECT ANSWERS Internal analysis to identify core competences, examines
physical, financial, human, know-how, reputation (page 48)
SWOT Analysis - CORRECT ANSWERS Tool that combines external/internal environmental
analysis, examines strengths, weaknesses, opportunities, and threats (page 50)
McKinsey 7S Model - CORRECT ANSWERS Tool to help with executing strategy; Shared values
at the center with spokes connecting outside, Structure, Systems, Style, Staff, Skills, Strategy (page
52)
Balanced Business Scorecard - CORRECT ANSWERS Tool to help with executing strategy
"strategic balance sheet" as combines financial and non-financial; includes Vision & Strategy as
central, then outward connected to Financial, Internal Business Process, Learning & Growth,
Customer (page 53)
Critical Success Factors (CSFs) - CORRECT ANSWERS The few key areas where things must go
right for the business to flourish and for the manager's goals to be attained (page 54)
Key performance Indicators (KPIs) - CORRECT ANSWERS The quantifiable metrics a company
uses to evaluate progress toward critical success factors (page 54)
Business Analysis Process Model - CORRECT ANSWERS Key stages for a business analysis
project, in the context of the business:
1. Investigate Situation
2. Consider Perspectives
3. Analyse Needs
4. Evaluate Options
5. Define Requirements
