Title | ACCA P3 Smart Notes - Business analysis |
---|---|
Author | Anonymous User |
Course | Acca |
Institution | Oxford Brookes University |
Pages | 30 |
File Size | 1.5 MB |
File Type | |
Total Downloads | 69 |
Total Views | 141 |
Business analysis...
ACCA P3 – PROFESSIONAL LEVEL Business Analysis
SMART Notes
Prepared by Darren Sparkes
Email: [email protected] ACCA P3 - Business analysis
These notes are not intended to cover the whole of the ACCA P3 syllabus
©Darren Sparkes, 2010
1
Contents
Page no.
Paper 3 Examiners Approach…………….….... 3 Extracts from the Examiners report ……….…...4 Examination Technique……………….…..……..7 Background and examination format..…............9 Syllabus Overview………………………...........10 Strategic Planning………………………...….....11 Mission and Objectives…………………………12 Business & Professional Ethics..………….…...13 Internal Analysis……………….……………..…14 External Analysis……………..………………....15 Strategic Options……………………….……….17 Method of Growth………………………............18 Portfolio Analysis…………………………….….19 Strategic Choice & Change Management…....20 Marketing………………………………………...21 Organisational Structure…………………….….22 International Market Place.…………….……....23 Business Process Change…….…..…………..24 Information Technology……..…….……..........25 Quality………………………………….……......26 Project Management………………………...…27 Role of Finance………………………………...28 Review and Control………………………..…..29 Strategy and People……………………………30
ACCA P3 – Business Analysis
These notes are not intended to cover the whole of the ACCA P3 syllabus
© Darren Sparkes, 2010
2
Approach Required ‘Differentiation is important to individuals seeking to pass a management and strategy examination. It is the ability to link strategic and financial analysis; it is the confidence to use creative thinking in the way you answer a particular problem…with alternative ways of viewing and solving a problem’ Ralph Bedrock (Paper 3 Assessor)
There is no absolutely correct answer – candidates who provided coherent justification… awarded appropriate marks Steve Skidmore (P3 Examiner)
ACCA P3 – Business Analysis
These notes are not intended to cover the whole of the ACCA P3 syllabus
© Darren Sparkes, 2010
3
Extracts from the Examiners comments In general: • ‘Candidates were stronger in strategic concepts (strategic position, Porter’s Diamond) and less comfortable with business process modelling and customer relationship management.’ • ‘Part questions on specific factual areas (competency frameworks and CMMI) were either answered well (because the candidate was familiar with them) or poorly (because the area was not studied or revised).’ • ‘There was some evidence of poor time management, apparently caused by over-answering question 1.’ Section A - Question 1 • In general the first part of the question was answered well, using a wide range of appropriate models and frameworks. • However, candidates must be careful in the future to stick to external issues if a PESTEL analysis is specified in the question. • …some candidates did not restrict themselves to assessing the strategic position. They began to suggest strategic solutions and options which were not required by the question and so no credit was given. This reinforces the need for the candidate to carefully read the question and to answer within its scope. • …many answers well written and well-structured, so gaining most of the professional marks on offer. • Part b…Candidates failed to spot glaring errors in the process. • Part c…In many cases, candidates provided good answers to a very different question.
ACCA P3 – Business Analysis
These notes are not intended to cover the whole of the ACCA P3 syllabus
© Darren Sparkes, 2010
4
Section B • Question 2 – part a…Candidates answered this…relatively well, using appropriate calculations • Question 2 – part b…candidates answered this part question very well, not only showing knowledge of the model but were also confident in applying it to a case study scenario • Question 3 – part b…asked candidates to analyse these competencies. Some of these were clearly signposted in the scenario. Many candidates failed to identify any relevant competencies…falling back on generalisations such as ‘good communication skills’ and hence did not score well on this part of the question. • Question 4 – part a…In general, this part of the question was answered well by most candidates • Question 4 – part b…This was not particularly well answered by most candidates. Most candidates seemed to be unfamiliar with the concept of competency frameworks or their potential application. This was despite an article in Student Accountant magazine.
ACCA P3 – Business Analysis
These notes are not intended to cover the whole of the ACCA P3 syllabus
© Darren Sparkes, 2010
5
Therefore, to pass P3 learn from the examiners comments: • Analyse the requirements – verbs and keywords • Planning – think before you write the answer • Application, application, application • Theoretical answers score few marks • You can only apply what you know – learn it! • Use and interpret the numbers (they are usually easy calculations so it’s the interpretation that gets the marks) • Time management – the marks are your guide
ACCA P3 – Business Analysis
These notes are not intended to cover the whole of the ACCA P3 syllabus
© Darren Sparkes, 2010
6
Examination Technique to give the Examiner what he wants PADI – Plan, Analyse, Design, Implement PLAN 1. USE 15 MINUTES READING TIME WISELY • Examine section B questions and choose the two on which you can MAXIMISE MARKS (not necessarily those on your ‘favourite’ topics) • If you have some time left then analyse Question 1 requirements and skim read the Q1 scenario to get a feel for the relevant issues and identify where the information is for each part of the requirements. 2. WORK OUT TIMINGS • Q1 = 90 minutes. Planning = 20-25 minutes, Writing answer = 65-70 minutes • Section B Questions = 45 minutes each. Planning up to 10 minutes, Writing answer 35 minutes. • Break down the time required for each part of the requirements using the marks as a guide. 1.8 minutes per mark in total, 1.4 minutes per mark after planning. • I suggest you start with Question 1 as you know you have 90 minutes to complete it. START PLANNING IN YOUR ANSWER BOOK 3. ANALYSE THE REQUIREMENTS • Identify the verb, or verbs, and make it stand out. The verb tells you what the examiner wants you to do, e.g. evaluate, recommend, analyse, calculate. Be sure to identify all the verbs in the requirement just in case there is more than one thing to do, e.g. analyse and discuss, evaluate and recommend. • Identify key words. These tell you what to do it on or about, e.g. evaluate what?, recommend what? 4. ALLOCATE MARKS TO EACH VERB IN THE REQUIREMENT • This can now determine how much to write for each verb in the requirement 5. IDENTIFY RELEVANT MODELS, TOOLS, THEORIES FROM YOUR KNOWLEDGE BANK
ACCA P3 – Business Analysis
These notes are not intended to cover the whole of the ACCA P3 syllabus
© Darren Sparkes, 2010
7
6. DEVELOP HEADINGS AND NUMBERS LAYOUT • Put key elements of model in plan as headings, e.g. Porters 5 Forces analysis = 5 headings. Headings will give your answer a framework and structure. • Use requirements to develop headings to show marker that you are answering the question asked 7. DISTRIBUTE MARKS ACROSS HEADINGS • This can now determine how much you write under each heading
ANALYSE 8. ANALYSE THE SCENARIO • Make brief notes in your plan under relevant headings from models/tools/theories and requirement • Find relevant numbers for calculations
DESIGN 9. THINK BEFORE YOU WRITE • Decide which points you are going to put in your answer (trying to put in everything usually leads to going over time) and start with your strongest points • Decide how you are going to layout your answer to make life easy for the marker and maximise marks
IMPLEMENT 10. WRITE UP YOUR ANSWER TO MAXIMISE MARKS • Layout calculations in a logical and easy to mark format - Add value to calculations by asking ‘SO WHAT?’ • Use as many headings as possible to give the answer structure • Work on 2 sentences for 1 mark – 1) Make your point, 2) Give evidence from the scenario • PEE for 2 marks – Point, Evidence, Explain (So what?) • Leave a blank line between paragraphs to make your answer ‘easy on the eye’ • Be strict with timings. When time is up on a question, or part of a question, move on. • Stick to answering the requirement – use your plan to keep you on track • REMEMBER THE THREE GOLDEN RULES – 1) APPLICATION 2) APPLICATION and 3)APPLICATION
ACCA P3 – Business Analysis
These notes are not intended to cover the whole of the ACCA P3 syllabus
© Darren Sparkes, 2010
8
• • • • Exercise professional judgement
•
Select relevant data
• •
Determine appropriate techniques
•
Candidate Requirements •
Assess the strategic position of the organisation Evaluate strategic choices available to an organisation Discuss how an organisation might go about its strategic implementation Model and redesign business processes and structures to implement and support the organisation’s strategy taking account of customer and other major stakeholder requirements Integrate appropriate information technology solutions to support the organisation’s strategy Apply appropriate quality initiatives to implement and support the organisation’s strategy Advise on the principles of project management to enable the implementation of aspects of the organisation’s strategy with the twin objectives of managing risk and ensuring benefits realisation Analyse and evaluate the effectiveness of a company’s strategy and the financial consequences of implementing strategic decisions The role of leadership and people management in formulating and implementing business strategy
Apply knowledge and skills
Paper Background Objectives of the paper Format of paper
Section A 50% • • • •
Compulsory Major case study Usually four parts Case will include numbers
• •
Choice of two from three Each question likely to include two parts Will include short scenario May include numbers
Section B 50%
• • ACCA P3 – Business Analysis
These notes are not intended to cover the whole of the ACCA P3 syllabus
© Darren Sparkes, 2010
9
Governance and Corporate Social Responsibilit
Syllabus Overview
Cultural Web
SMART
Mission and objectives Purpose, Strategy, Policies, Values
Mendelow's power-interest matrix Product Life Cycle
Stakeholder Analysis
PEST
Resource audit
External Analysis
Porters 5 Forces
Internal Analysis Core competences
Corporate Appraisal
Porters Diamond
Benchmarking
Porters Value Chain CSF’S
SWOT Porter’s Generic Strategies
BCG, PSPM, DPM, APD Mkt attract/SBU strength
Portfolio analysis
Strategic Options
The Strategy Clock TOWS Matrix
Withdraw
Ansoff’s productmarket matrix
Risk Acquisition vs organic vs joint development
Suitability, Acceptability, Feasibility
Strategic Choice
Cost/Benefit Change Management
International Trading
HRM
IT
Structure
Project Management
Implementation Sources of Finance
Marketing
Quality Software Quality
Review and Control Business Process Change
Not for Profit Organisations
Software Solutions Financial Measures
Investment Appraisal
Non-financial Measures BSC
ACCA P3 – Business Analysis
These notes are not intended to cover the whole of the ACCA P3 syllabus
© Darren Sparkes, 2010
10
Integrates activities
Competitive advantage
Position Analysis
Corporate = Strategic level
Relationship with environment
Whole organisation
Business = Tactical level
Interdependant
Functional = Operational level
All stakeholders Long-term
Choice
Strategy Freewheeling Opportunism Market Driven – reactive Hands on management Exploit complacent players Relies on leaders vision No formula for success Take advantage of market opportunities × Stock market problems • • • • • √
• • √ √ × ×
‘… a course of action, including the specification of resources, to achieve a specific objective
Alternative
Incrementalism (Lindblom) Building block approach Build strategy through incremental steps not radical shifts Accepts uncertainty of future Builds commitment May be too slow Ideas often compromised
Emergent Strategy - ‘Bottom up’ (Mintzberg) Intended Strategy Unrealised Strategy
Deliberate Strategy
Realised Strategy
Emergent strategy
E.G. Honda’s entry into the USA, 3M ACCA P3 – Business Analysis
Johnson, Scholes & Whittington
Design
Strategic Lenses
Actio
Experience
Ideas
Strategic Planning
Purpose
• •
Rational ‘Top Down’ Approach
• • •
Mission & Objectives
Respond and fit to environment Utilise scarce resources Provide direction Ensure consistent objectives Monitor progress
Corporate appraisal
Strategic options
√
Strategic choice
√ √
Implementation
√ √
Review
√
Advantages Identification of strategic issues Consistency of goals Improve performance/survival Pro-active Recognises environment Optimum use of resources
These notes are not intended to cover the whole of the ACCA P3 syllabus
Disadvantages Expensive (time and money) × Bureaucracy × Stifles creativity × Less relevant in a crisis
×
© Darren Sparkes, 2010
11
Purpose
Advantages Resolve stakeholder conflict Set direction Help formulate strategy Communicates values to employees Marketing to customers
• • • •
Strategy
Policies and standards
•
• • • •
Criticisms Meaningless terms used Written retrospectively? Not communicated to employees Ignored by managers
S M A R T
Specific Measurable Attainable Relevant Timebound
Mission Values
‘… the most generalised type of objective which can be thought of as its raison d’etre.’
Objectives
Mission Statement
Culture
Published version of the Mission
Stakeholders
Mendelow’s Power – Interest Matrix Low
Low
Interest
Mission and Objectives
• • • • • •
Critical Success Factors
Cultural Web – cultural paradigm Routines & Rituals Stories & Myths Symbols Power structure Organisation structure Control systems
High
A
B
Minimal Effort
Keep Informed
Give Direction
Education / Communication
"The limited number of areas in which results, if they are satisfactory, will ensure successful competitive performance for the organization. They are the few key areas where things must go right for the business to flourish.
Power
High
‘The way we do things around here’
C
D
Keep Satisfied
Key Players
Intervention
Participation – Keep Close
If results in these areas are not adequate, the organization's efforts for the period will be less than desired."
Not for Profit Organisations
• • • • • •
Features of objective setting Multiple and contradictory objectives Participation in objective setting Providers of funding different to beneficiaries of service Priorities may change frequently Value for money a requirement not an objective Increased role of personal objectives
Efficiency
Economy
Effectiveness ACCA P3 – Business Analysis
These notes are not intended to cover the whole of the ACCA P3 syllabus
© Darren Sparkes, 2010
12
Equal opportunities
C O P P I T
Corporate Governance Strategic impact: SCRAPI • Short-termism • Control the business • Risk assessment • Acquisitions & Mergers • Power of governance bodies • Increasing shareholder power
Competence Objectivity
Consumer health and safety
Professional due care
Bribes Safety in the workplace
Politeness Integrity
Issues Fair Trade
Sustainability
Technical Standards Environment
Professional Ethics
Honesty in Advertisin
Corporate Social Responsibility
‘Self control, not self interest’
Johnson, Scholes & Whittington – Ethical Stances Short-term shareholder interest
Long-term shareholder interest
Multiple stakeholder obligation
Shaper of society
Views on Business Ethics
Business and Professional Ethics
Save time and money on investigations
Long-term Self-Interest / Stakeholder view
Avoid paying damages and fines Attract customers and employees
Benefits to Business SALSA
Firms should acknowledge their social responsibilities.
Lower Risk Strategic Alliances
‘The business of business is business’ (Shareholder View Friedman)
No universal acceptance of morals & ethics
Management to concentrate on maximising profits and shareholder wealth. Businesses have no duty to society. Societal benefits will arise as a result of commercial success.
Potential problems Conflict of CSR with shareholder weal
Competitive disadvantage
Disclosure of business information
Deciding what is ethical ACCA P3 – Business Analysis
• • • •
Reduced revenues Increased costs Diverts funds from shareholders Distracts management
Bad publicity from monitoring and enforcement
These notes are not intended to cover the whole of the ACCA P3 syllabus
© Darren Sparkes, 2010
13
Same as competitor / easy to copy
Different to competitor / difficult to copy
Resources
Basic
Unique
Competences
Threshold
Core
Strategic Assets
Manpower Management Money Make-up Manufacturing Material Markets
• • • • • • •
S • • • • •
Valuable Rare Can’t be copied Not substitutable Give access to wide range of markets
M’s
Reputation
R
Innovative Ability
Core Competences ‘…the activities or processes that critically underpin competitive advantage.’
Internal Analysis (Strengths & Weaknesses)
Tacit
Architecture
I
Strategic Capability – Resource audit
Knowledge Management
A
...