Strategic management

Paper labels are an unofficial, independently authored grouping, applied only where a question's own format genuinely matches a real paper convention (such as IB Mathematics AA's non-calculator/calculator split). They do not reproduce any exam board's real paper numbering or mark allocation, and uncertain questions are labelled general practice instead.

• 5A mid-sized domestic electronics manufacturer is facing declining sales as cheaper imported competitors enter its home market. Management is considering three options: (1) cutting prices to match competitors, (2) investing in automation to reduce production costs, or (3) repositioning toward a premium, locally-made brand identity. The company has limited cash reserves and a workforce with strong loyalty built over 20 years. (a) For each option, state one likely benefit and one likely risk. (b) Using a decision-making tool of your choice, such as a simple decision tree or force-field style reasoning, evaluate which single option the company should prioritise, given its limited cash reserves and loyal workforce. (c) Justify your final recommendation, referring explicitly to at least two pieces of evidence from the scenario.Paper 3 style (extended)Hard8 marksNo calculator+
• 6Marking analysis: A learner attempts the following task: “A mid-sized domestic electronics manufacturer is facing declining sales as cheaper imported competitors enter its home market. Management is considering three options: (1) cutting prices to match competitors, (2) investing in automation to reduce production costs, or (3) repositioning toward a premium, locally-made brand identity. The company has limited cash reserves and a workforce with strong loyalty built over 20 years. (a) For each option, state one likely benefit and one likely risk. (b) Using a decision-making tool of your choice, such as a simple decision tree or force-field style reasoning, evaluate which single option the company should prioritise, given its limited cash reserves and loyal workforce. (c) Justify your final recommendation, referring explicitly to at least two pieces of evidence from the scenario.” Their response addresses only this point: “States a valid benefit and risk for the price-cutting option, such as quickly defending market share as a benefit and reduced margins the company can ill afford as a risk.” Evaluate the response against the complete 8-mark task. Identify what earns credit and state every additional requirement needed for full marks.Marking analysisHard8 marksNo calculator+