Business Management HL
Strategic analysis (HL): BCG matrix, STEEPLE and contingency planning — Unit 1 HL
- 1.
A company's product has a market share of 20%, while its largest competitor in that market has a market share of 40%. (a) Calculate the product's relative market share. (b) The market itself is growing at 15% per year, which is considered high growth. Using the BCG matrix, classify this product, and justify your classification.
[5 marks] - 2.
Marking analysis: A learner attempts the following task: “A company's product has a market share of 20%, while its largest competitor in that market has a market share of 40%. (a) Calculate the product's relative market share. (b) The market itself is growing at 15% per year, which is considered high growth. Using the BCG matrix, classify this product, and justify your classification.” Their response addresses only this point: “Uses the formula: relative market share = company's market share / largest competitor's market share.” Evaluate the response against the complete 5-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[5 marks] - 3.
Explain why a 'cash cow' in the BCG matrix (high relative market share, low market growth) typically requires relatively little further investment, and state what a company usually does with the surplus cash it generates.
[2 marks] · no calculator - 4.
Marking analysis: A learner attempts the following task: “Explain why a 'cash cow' in the BCG matrix (high relative market share, low market growth) typically requires relatively little further investment, and state what a company usually does with the surplus cash it generates.” Their response addresses only this point: “Explains that a cash cow already has a dominant (high) market share in a market that is no longer growing quickly, so there is limited opportunity or need for further aggressive investment to grow its share.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 5.
The STEEPLE framework extends the PEST framework by adding Ethical and Legal (and Environmental) factors. Explain how an ethical factor, such as growing consumer concern about animal testing, could affect a cosmetics company's strategy.
[3 marks] · no calculator - 6.
Marking analysis: A learner attempts the following task: “The STEEPLE framework extends the PEST framework by adding Ethical and Legal (and Environmental) factors. Explain how an ethical factor, such as growing consumer concern about animal testing, could affect a cosmetics company's strategy.” Their response addresses only this point: “States that ethical factors reflect changing social attitudes about what is considered morally acceptable business practice, which companies must respond to in order to maintain their reputation and customer base.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 7.
Distinguish between crisis management and contingency planning, and explain why a company should ideally engage in contingency planning before a crisis occurs rather than relying only on crisis management afterward.
[3 marks] · no calculator - 8.
Marking analysis: A learner attempts the following task: “Distinguish between crisis management and contingency planning, and explain why a company should ideally engage in contingency planning before a crisis occurs rather than relying only on crisis management afterward.” Their response addresses only this point: “Defines contingency planning as preparing in advance for potential future crises, by developing plans for how the company would respond to specific identified risks before they occur.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 9.
Using Hofstede's cultural dimensions, explain how a company expanding from a country with a highly individualist culture into a country with a highly collectivist culture might need to adapt its approach to employee incentives and teamwork.
[3 marks] · no calculator - 10.
Marking analysis: A learner attempts the following task: “Using Hofstede's cultural dimensions, explain how a company expanding from a country with a highly individualist culture into a country with a highly collectivist culture might need to adapt its approach to employee incentives and teamwork.” Their response addresses only this point: “States that individualist cultures tend to value personal achievement and individual responsibility, while collectivist cultures tend to value group harmony, loyalty, and collective achievement over individual recognition.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 11.
Explain Porter's concept of a 'cost leadership' generic strategy, and state one risk a company following this strategy faces.
[2 marks] · no calculator - 12.
Marking analysis: A learner attempts the following task: “Explain Porter's concept of a 'cost leadership' generic strategy, and state one risk a company following this strategy faces.” Their response addresses only this point: “Explains that a cost leadership strategy involves a company aiming to become the lowest-cost producer in its industry, typically through economies of scale, efficient operations, and tight cost control, allowing it to compete on price.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 13.
Explain Porter's 'differentiation' generic strategy and one risk a firm following it faces.
[2 marks] · no calculator - 14.
Marking analysis: A learner attempts the following task: “Explain Porter's 'differentiation' generic strategy and one risk a firm following it faces.” Their response addresses only this point: “Explains that differentiation means offering a product perceived as unique (quality, design, brand), allowing a premium price.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 15.
Explain what is meant by a 'focus' generic strategy and give one example of a business that might use it.
[2 marks] · no calculator - 16.
Marking analysis: A learner attempts the following task: “Explain what is meant by a 'focus' generic strategy and give one example of a business that might use it.” Their response addresses only this point: “Explains that a focus strategy targets a narrow market segment, competing on either low cost or differentiation within it.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 17.
Distinguish between a power culture and a role culture, using Handy's classification.
[2 marks] · no calculator - 18.
Marking analysis: A learner attempts the following task: “Distinguish between a power culture and a role culture, using Handy's classification.” Their response addresses only this point: “States that a power culture concentrates control in a few central individuals, with decisions based on personal authority and few formal rules.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 19.
Using Lewin's force field analysis, explain how a manager can increase the chance that a change will succeed.
[2 marks] · no calculator - 20.
Marking analysis: A learner attempts the following task: “Using Lewin's force field analysis, explain how a manager can increase the chance that a change will succeed.” Their response addresses only this point: “Explains that driving forces push for the change and restraining forces resist it, and the change happens when drivers outweigh restrainers.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 21.
Explain two reasons why employees might resist organizational change.
[2 marks] · no calculator - 22.
Marking analysis: A learner attempts the following task: “Explain two reasons why employees might resist organizational change.” Their response addresses only this point: “Explains a reason such as fear of job loss, changed duties or reduced status.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 23.
Using Mendelow's power-interest grid, explain how a firm should manage a stakeholder with high power but low interest.
[2 marks] · no calculator - 24.
Marking analysis: A learner attempts the following task: “Using Mendelow's power-interest grid, explain how a firm should manage a stakeholder with high power but low interest.” Their response addresses only this point: “Explains that such stakeholders should be 'kept satisfied': they can block or support the firm but are not actively engaged.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 25.
Distinguish between strategic and tactical decisions, giving one example of each for an airline.
[2 marks] · no calculator - 26.
Marking analysis: A learner attempts the following task: “Distinguish between strategic and tactical decisions, giving one example of each for an airline.” Their response addresses only this point: “States that strategic decisions are long-term, high-impact choices about the direction and scale of the business, e.g. entering long-haul routes or merging with a rival.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 27.
A product is classified as a 'dog' in the BCG matrix. Explain two strategic options available to the firm.
[2 marks] · no calculator - 28.
Marking analysis: A learner attempts the following task: “A product is classified as a 'dog' in the BCG matrix. Explain two strategic options available to the firm.” Their response addresses only this point: “Explains divestment: selling or discontinuing the product to free resources for more promising products.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 29.
Evaluate whether a merger between two firms is likely to succeed, considering synergy and corporate culture.
[4 marks] · no calculator - 30.
Marking analysis: A learner attempts the following task: “Evaluate whether a merger between two firms is likely to succeed, considering synergy and corporate culture.” Their response addresses only this point: “Explains potential synergies, such as combined economies of scale, shared distribution and a larger market share.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[4 marks] · no calculator