Publishing P3 Study Text Business Analysis ACCA   ACCA Paper P3 Business Analysis Welcome to Emile Woolf‘s study text for Paper P3 Business Analysis which is: „ Written by tutors „ Comprehensive but concise „ In simple English „ Used around the world by Emile Woolf Colleges including China, Russia and the UK Publishing Third edition published by   Emile Woolf Publishing Limited  Crowthorne Enterprise Centre, Crowthorne Business Estate, Old Wokingham Road,   Crowthorne, Berkshire   RG45 6AW  Email: info@ewiglobal.com  www.emilewoolfpublishing.com       © Emile Woolf Publishing Limited, April 2011    All rights reserved. No part of this publication may be reproduced, stored in a retrieval  system, or transmitted, in any form or by any means, electronic, mechanical, photocopying,  recording, scanning or otherwise, without the prior permission in writing of Emile Woolf  Publishing Limited, or as expressly permitted by law, or under the terms agreed with the  appropriate reprographics rights organisation.    You must not circulate this book in any other binding or cover and you must impose  the same condition on any acquirer.      Notice  Emile Woolf Publishing Limited has made every effort to ensure that at the time of  writing the contents of this study text are accurate, but neither Emile Woolf Publishing  Limited nor its directors or employees shall be under any liability whatsoever for any  inaccurate or misleading information this work could contain.      British Library Cataloguing in Publications Data  A catalogue record for this book is available from the British Library.      ISBN: 978‐1‐84843‐153‐9      Printed and bound in Great Britain.        Acknowledgements  The syllabus and study guide are reproduced by kind permission of the Association of  Chartered Certified Accountants.              ii © Emile Woolf Publishing Limited Paper P3 Business analysis c Contents Page Syllabus and study guide Chapter 1: The need for, and purpose, of strategic and business analysis 15 Chapter 2: Environmental issues affecting strategic position 39 Chapter 3: Competitive forces affecting strategic position 69 Chapter 4: Marketing and the value of goods and services 97 Chapter 5: Internal resources, capabilities and competences 117 Chapter 6: The expectations of stakeholders and the influence of ethics and culture 135 Chapter 7: The influence of corporate strategy on an organisation 161 Chapter 8: Alternative approaches to achieving competitive advantage 189 Chapter 9: Alternative directions and methods of development 209 Chapter 10: Strategic action 239 Chapter 11: Business process change 281 Chapter 12: Information technology 307 Chapter 13: Project management 355 Chapter 14: Finance and business strategy 389 Chapter 15: People 433 Practice questions 459 Answers to practice questions 481 Index 519 © Emile Woolf Publishing Limited iii iv © Emile Woolf Publishing Limited Paper P3 Business analysis S Syllabus and study guide Aim To apply relevant knowledge, skills and exercise professional judgement in assessing strategic position, determining strategic choice and implementing strategic action through beneficial business process and structural change; coordinating knowledge systems and information technology and by effectively managing quality processes, projects and people within financial and other resource constraints Main capabilities On successful completion of this paper candidates should be able to: A Assess the strategic position of an organisation B Evaluate the strategic choices available to an organisation C Discuss how an organisation might go about its strategic implementation D Evaluate and redesign business processes and structures to implement and support the organisation’s strategy taking account of customer and other major stakeholder requirements E Integrate appropriate information technology solutions to support the organisation’s strategy F 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 G Analyse and evaluate the effectiveness of a company’s strategy and the financial consequences of implementing strategic decisions © Emile Woolf Publishing Limited Paper P3: Business analysis H Assess the role of leadership and people management in formulating and implementing business strategy Rationale The syllabus for Paper P3, Business Analysis, is primarily concerned with two issues The first is the external forces (the behaviour of customers, the initiatives of competitors, the emergence of new laws and regulations) that shape the environment of an organisation The second is the internal ambitions and concerns (desire for growth, the design of processes, the competences of employees, the financial resources) that exist within an organisation This syllabus looks at both of these perspectives, from assessing strategic position and choice to identifying and formulating strategy and strategic action It identifies opportunities for beneficial change that involve people, finance and information technology It examines how these opportunities may be implemented through the appropriate management of programmes and projects The syllabus begins with the assessment of strategic position in the present and in the future using relevant forecasting techniques, and is primarily concerned with the impact of the external environment on the business, its internal capabilities and expectations and how the organisation positions itself under these constraints It examines how factors such as culture, leadership and stakeholder expectations shape organisational purpose Strategic choice is concerned with decisions which have to be made about an organisation’s future and the way in which it can respond to the influences and pressures identified in the assessment of its current and future strategic position Strategic action concerns the implementation of strategic choices and the transformation of these choices into organisational action Such action takes place in day-to-day processes and organisational relationships and these processes and relationships need to be managed in line with the intended strategy, involving the effective coordination of information technology, people, finance and other business resources Companies that undertake successful business process redesign claim significant organisational improvements This simply reflects the fact that many existing processes are less efficient than they could be and that new technology makes it possible to design more efficient processes Strategic planning and strategy implementation has to be subject to financial benchmarks Financial analysis explicitly recognises this, reminding candidates of the importance of focusing on the key management accounting techniques that help to determine strategic action and the financial ratios and measures that may be used to assess the viability of a strategy and to monitor and measure its success Throughout, the syllabus recognises that successful strategic planning and implementation requires the effective recruitment, leadership, organisation and training and development of people   © Emile Woolf Publishing Limited Syllabus and study guide Syllabus content A B C D E F Strategic position The need for, and purpose of, strategic and business analysis Environmental issues affecting the strategic position of an organisation Competitive forces affecting an organisation Marketing and the value of goods and services The internal resources, capabilities and competences of an organisation The expectations of stakeholders and the influence of ethics and culture Strategic choices The influence of corporate strategy on an organisation Alternative approaches to achieving competitive advantage Alternative directions and methods of development Strategic action Organising and enabling success Managing strategic change Understanding strategy development Business process change The role of process and process change initiatives Improving the processes of the organisation Software solutions Information technology Principles of e-business E-business application: upstream supply chain management E-business application: downstream supply chain management E-business application: customer relationship management Project management The nature of projects Building a Business Case Managing and leading projects © Emile Woolf Publishing Limited Paper P3: Business analysis G H Planning, monitoring and controlling projects Concluding a project Financial Analysis The link between strategy and finance Finance decisions to formulate and support The role of cost and management accounting in strategic planning and implementation Financial implications of making strategic choices and of implementing strategic actions business strategy People Strategy and people: leadership Strategy and people: job design Strategy and people: staff development Approach to examining the syllabus The syllabus is assessed by a three‐hour paper‐based examination.     Section A Section  A  contains  one  multi‐part  question  based  on  a  case  study  scenario.  This  question is worth 50 marks.    Section B Section  B  will  consist  of  three  discrete  questions  each  worth  25  marks.  Candidates  must answer two questions from this section.    Total: 100 marks       © Emile Woolf Publishing Limited Answers to practice questions 50 Balanced scorecard (a) To set a number of performance targets in each of four key areas, with the aim of achieving strategic objectives if all the performance targets are met (b) Financial targets (c) „ Customer satisfaction targets „ Targets for the enhancement of internal processes „ Targets for learning and growth (creating capabilities in employees and systems) A balanced scorecard approach might be suitable for not-for-profit organisations, where financial objectives are not as dominant as in commercial organisations Financial objectives in these organisations are often aimed at achieving revenue targets or controlling costs, rather than making profits Profit-making entities might also choose a balanced scorecard approach when they recognise the need to establish longer-term strategic objectives and not concentrate exclusively on short-term profitability The achievement of longerterm objectives is often measured better by performance relating to nonfinancial targets than by using financial targets (which tend to focus on the short term) (d) Suggested answer Financial targets Customer satisfaction targets % of total income from corporate sources, or from foreign students Administration costs as a % of total costs (Customers = students and employers of students on completion of their courses, or the government as a provider of funds) Academic costs as a % of total costs, or target for the average annual cost of a fulltime member of the academic staff % of students from state schools Targets for fund-raising or annual growth in fund-raising Target prices for student accommodation Targets for the enhancement of internal processes Targets for learning and growth Targets for room utilisation Number of applications made for research grants each year, per member of the academic staff Target for the average number of full-time students per computer terminal 51 Targets for % of students obtaining 1st class honours degree Availability of student accommodation Key success factors (a) (i) Low-cost operations (allowing the airline to offer low-cost flights to passengers) (ii) The development of a route network (using ‘secondary airports), avoiding direct competition with other low-cost airlines (iii) Brand development and successful marketing (for example, selling direct to the customer and avoiding the cost of the ‘middle man’ such as travel agents) © Emile Woolf Publishing Limited 513 Paper P3: Business analysis (b) 52 Suggestions for an answer Financial targets Customer satisfaction targets Return on capital employed Financial gearing Average revenue per seat/kilometre Gross profit margin per seat/kilometre Number of complaints Amount of compensation payments % of customers who are repeat customers Targets for the enhancement of internal processes Targets for learning and growth Targets for aeroplane load factor Punctuality targets Targets for avoidable delays Targets for the conversion ratio of enquiries into sales E-commerce performance targets Route network development targets Average time for anew route to break even Career progression rates for employees in the company Entity P: financial performance Note: If you were given similar financial numbers to analyse in an examination, there might only be time to make the more important calculations The answer provided here misses out the analysis of Year figures, on the assumption that Year (the starting point), Year (now) and Year (next year’s forecast) are more important figures to analyse Cost of sales/Sales Marketing costs/sales Distribution costs/sales Administration costs/sales Interest charges/Sales Operating profit/sales Loans/Sales revenue Inventory/Sales Sales/Non-current assets Average sales per employee Average sales per product Average sales per supplier Year (forecast) Year 63% 9% 13% 2% 0% 13% Year 70% 6% 8% 2% 4% 10% 0% 10% 4.7 times 50% 14% 1.9 times 67% 18% 1.2 times $ 600,000 281,000 750,000 $ 1,032,000 185,000 726,000 $ 888,000 234,000 651,000 70% 5% 6% 2% 8% 9% Analysis 514 „ The decline in operating profit margin is a key issue „ Higher costs of sales (63% in Year to 70% now) and interest charges are clearly a problem „ The fall in marketing and distribution costs as a percentage of sales is very substantial: does this mean that the entity is putting fewer resources into these operations? If so, what might be the consequences? „ The large increase in borrowing must be a matter for concern High interest costs are reducing profit margins © Emile Woolf Publishing Limited Answers to practice questions 53 „ Why is the large increase in investment in non-current assets and inventory necessary? These increases seem to explain the need to increase borrowing „ The projected increase in employee numbers next year is large, but possibly reasonable if employees are currently over-worked (see the average sales per employee figures) „ The growth in the product range is not unreasonable (see the average sales per product figures) but the number of suppliers is increasing at a faster rate, and this may eventually lead to operating difficulties in the value chain (procurement and inbound logistics) ABC Group: financial analysis Workings Division A Year Year (forecast) 4% 2% 2.7% 5% 2% 2% 45% 5% 46% 5% 47% 5% Year Year Year (forecast) 12.2% 10% 8% 12.3% 10% 8% 40% 3.5% 42% 3.5% 44% 3.6% Year Year Year (forecast) - 9.3% + 7% + 4.6% - 3.6% + 6.5% + 3.2% 27% 8.5% 22% 10% Year Sales revenue growth Volume growth Cost of sales growth Gross profit/Sales Transport costs/Sales Division B Sales revenue growth Volume growth Cost of sales growth Gross profit/Sales Transport costs/Sales Division C Sales revenue growth Volume growth Cost of sales growth Gross profit/Sales Transport costs/Sales 35% 6% Analysis Division A „ Good financial performance, but market share falling in spite of a small increase in volume „ R&D spending low „ This product group may well be reaching the maturity stage of its life cycle, and is a ‘cash cow’ for the group © Emile Woolf Publishing Limited 515 Paper P3: Business analysis Division B „ Strong growth in volume and sales prices „ Cost of sales as a percentage of sales revenue is falling, presumably because of the effect of fixed costs in the cost structure „ R&D spending high „ Market share unchanged in a fast-growing market „ This product group may well be a ‘star’ for the group, and the high R&D spending would therefore be justified Division C 54 „ Still profitable, but sales revenue is falling „ Costs are rising as a percentage of sales revenue „ R&D spending is moderate „ Market share still fairly high „ However, this product group may well be a ‘dog’ in the terminology of the BCG matrix The group should beware of investing heavily in risky attempts to sustain the products of Division C Role of the accountant (a) (b) (i) Accountants provide support activities for the entity: invoicing, debt collection, provision of management information, and so on) (ii) Accountants also act as a regulator of management decisions, by establishing a financial framework within which management decisions should be made (investment appraisal systems, budgetary control systems) (iii) In some entities, they are involved in developing business strategy (see below) (iv) In some entities, they may act as an agent for change, through their understanding of acquisitions and mergers and franchising as strategic options Involvement in business and marketing strategies Accountants ought to be involved (although they are not always involved) in business strategy: 516 „ Provide support to line management in screening new products for development However, to perform this role successfully, accountants must share the innovative and entrepreneurial culture of their colleagues, and must not be excessively cautious and risk-averse „ Accountants should also be involved in strategic investment appraisal This involves assessing not just the potential financial returns from strategic investments, but whether the investments would be a good ‘strategic fit’ for the entity (Investments should be undertaken if they offer a high financial return and are a good strategic fit Decisions about © Emile Woolf Publishing Limited Answers to practice questions investments with a lower return but good strategic fit, or a high return but a poor strategic fit, should be a ‘tactical choice’ for management.) „ 55 Accountants should also be involved in the evaluation of marketing decisions (price review, marketing sales budget analysis, product differentiation decisions, evaluation of the effectiveness of advertising) Accountants should provide management information relating to market segments and distribution channels, not just profitability by product and product group HR plan „ The current work force and the expected work force in five years’ time should be analysed The work force should be divided into employees with different skills and at each level of seniority within the management hierarchy „ For each category of employee currently employed, an estimate should be prepared of how many will leave each year, and how many are likely to be promoted or transferred to a different job within the company „ An estimate can therefore be made of the likely numbers of employees in each type of job (= current numbers minus leavers plus numbers promoted or transferred into the job), assuming that there is no external recruitment „ The difference each year between these employee numbers and the number of employees required will give us a ‘gap’ to be filled with external recruitment or faster internal promotion „ In the case of IT staff, where staff numbers will fall, the analysis may show that some staff may have to be made redundant The HR plan can then be used to formulate strategies or plans for recruitment, transfers, re-training and redundancies 56 Strategic management styles Strategic planning style Head office is involved in formulating strategy for the organisation Long-term planning for the organisation is therefore centralised This style is appropriate when the activities of the organisation are highlyinterdependent, and it would therefore be difficult to decentralise strategic planning decisions to business units Financial control style Head office allows divisions/business units to formulate their own independent commercial strategies However, these strategies must conform to budget targets Head office exercises control over business units through short-term financial controls (for example, budgets) Strategic control style Head office attempts to strike a balance between the strategic planning style and the financial control style Business units are given the independence to develop their own commercial strategies, but these must be consistent with the overall strategic objectives for the group as a whole Holding company style There is little or no input to strategic management from head office, which is simply a holding company for investments in the different subsidiaries © Emile Woolf Publishing Limited 517 Paper P3: Business analysis 518 © Emile Woolf Publishing Limited Paper P3 Business analysis i       Index 4Rs model 6Is of the e-marketing mix 7Ps 7S approach 268 345 325 268 A Accountant: role in 390 Accounting rate of return 367 Acquisitions 226 Activities: analysing 297 Activity analysis worksheet 297 Activity based leadership theories 438 Adair 371 Additive model 66 Advertising: traditional media and the internet compared 348 Analysing fixed and variable costs: high-low method 58 Ansoff 27 Ansoff’s growth matrix 214 Ansoff’s strategic analysis 27 Anthony, R N 22 levels of planning 22 Ashridge Portfolio Display 185 Assessing business strategy 232 Attainable standards 403 B Backward vertical integration © Emile Woolf Publishing Limited 229 Balogun and Hope Hailey (Contextual features model) 272 Bargaining power of customers 77 Bargaining power of suppliers 76 Bartlett and Ghosal 174 Basic standards 403 Benchmarking 104 Benefits management 385 Benefits of LCC 83 Benefits Realisation Plan 369 Boston Consulting Group matrix (BCG matrix) 178 Bowman (1996) (strategic clock) 192 Budget slack (budget bias) 398 Budgetary control 397, 405 Budgetary control: behavioural aspects 399 Budgeting: planning and co-ordination 396 Burns 438 Burns and Stalker 252 Business analysis 28 Business ethics 150 Business process 282 Business process redesign 285 Business process re-engineering 288 Business strategy 21 C Capabilities Capability profile Career development Cartels 124 128 449 208 519 Paper P3: Business analysis Cash cow 179 Centralisation 248 Challenger 200 Chandler: definition 16 Chandler: strategy 16 Change agent 267 Change and organisation culture 261 Clusters 49 Collaboration 204 Collaboration between business entities 115 Commoditisation of business processes 302 Competences 121 Competencies: threshold 121 Competency frameworks 450 Competition analysis 73 Competition and markets 70 Competitive advantage 124, 190 the role of government 54 Competitive rivalry 77 Competitive strategy 21 Competitor benchmarking 104 Competitor benchmarking: methods 105 Concentric diversification 217 Conglomerate diversification 218 Consequences of change 260 Consolidation strategy 221 Contextual features model (Balogun and Hope Hailey) 272 Contingency theory of organisation structure 252 Control reporting 404 Convergence of industries 71 Core competencies 121 Corporate culture 155 Corporate governance: meaning 141 risks 142 stakeholder view 143 traditional view 141 traditional view 142 Corporate knowlege 126 Corporate social responsibility (CSR) 153 Corporate strategy 19 selection 177 an international perspective 168 Corrective strategy 221 Correlation 62 Cost efficiency: achieving 125 Cost leadership 21 520 Cost leadership Cost leadership strategy Critical path analysis Critical success factors (CSFs) CRM software system CSR and competitive advantage Cultural web Cultural web (Johnson and Scholes) Culture Current standards Customer needs Customer relationship management Customers and markets Cycle of competition 337 196, 341 379 101 352 154 157 276 155 403 98 352 70 84 D Data workers and knowledge workers Davis and Lawrence 1977 Decision making Decision trees drawing joint probabilities two-stage decisions Decisions to accept or reject an order Deliberate strategy Demand and supply Demand curve: calculation Demand-led Demand-led convergence Development Development and training Differentiation Differentiation strategy Discontinuance decisions (shutdown decisions) Diversification Diversification strategy Divisional organisation structure Drucker (mission statement) Drucker: strategy Dynamic capabilities 455 243 416 408 409 413 411 423 30 331 335 72 72 30 448 21 197 424 228 217 242 137 16 124 E Earned value analysis E-branding E-business 381 350 308 © Emile Woolf Publishing Limited Index E-business and information flow E-business and the supply chain E-business: barriers E-commerce E-commerce and the globalisation of business Economies of scale Economies of scope Effective use of scarce resources Efficiency ratios E-mail marketing (direct mail and the internet) E-marketing E-marketing and the 7Ps of the marketing mix E-marketing: promotion strategy Emergent strategy Enabling Entrepreneurial organisation Environmental analysis model E-payment E-procurement E-purchasing E-shopping E-sourcing Ethical codes Ethical issues in business Ethnocentric orientation Expected values advantages disadvantages External relationships Extranet 308 319 314 308 312 125 126 425 429 349 325, 344 344 348 31, 278 28 241 40, 41 322 311, 321 322 311 322 152 150 171 408 408 408 249 317 Franchising Full cost plus pricing Functional organisation structure Functional strategy 206 337 241 21 G Gap analysis Gearing ratios Gemini 4Rs Generic software Geocentric company: Ohmae Geocentric orientation Global competition Global organisations Globalisation Goals Going rate pricing Greiner’s growth model Growth vector analysis: Ansoff 219 429 268 302 172 172 168 170 170 138 341 224 214 H Hamel and Prahalad core competence Harmon’s process-strategy matrix Hersey and Blanchard (1977) Horizontal integration Human resource planning Human resources and Human Resource Development (HRD) Human resources management Hypercompetition 211 121 283 437 229 441 434 440 202 F I F W Taylor Factors Finance and business strategy Financial analysis for business strategy Financial gearing Financial implications of strategic choices Five Forces model use Focus strategy Follower Foreign subsidiaries as a portfolio of SBUs Forward vertical integration © Emile Woolf Publishing Limited 444 51 390 428 393 428 78 79 197 200 175 229 Ideal standards 403 Idle time variance 406 Imperfect competition 334 Incremental change 258 Incremental strategy 31 Industries and sectors 70 Industry competition: Five Forces model 73 Industry: generic types 71 Infrastructure required to support e-business 315 Integration 229 Integration arguments for and against 229, 230 521 Paper P3: Business analysis Intended strategy Interaction theory Internal customers Internal development Internal rate of return Internal relationships: centralisation versus decentralisation International diversity International scale operations Internet Internet and industry structure Internet service provider (ISP) Intranet Investment appraisal Investment ratios 278 363 289 223 368 248 170 169 315 309 315 317 366 430 J Japanese management approach 446 Job design 444 Job enrichment and job design - Herzberg 445 Job re-engineering 447 Johnson and Scholes on the value chain 108 Johnson and Scholes: a six-step approach to using CSFs 103 the cultural web 157 cultural web 276 Johnson, Scholes and Whittington on strategic management 17, 24 Joint venture 205 K Key performance indicators (KPIs) Knowledge management advantages Knowledge management functions Knowledge workers 103 454 457 455 455 L Leader Leadership Leadership theory Learning organisation Levers of change 522 200 434, 435 435 451 263 Lewin: force field analysis unfreeze, change, re-freeze Licensing Life cycle analysis Life cycle model Life cycle portfolio matrix Limiting factor Linear regression analysis Liquidity ratios Lock-in strategy Loss leaders 264 266 207 233 81 233 425 59 429 202 341 M Machine bureaucracy Macro-environment Make or buy decisions Managing and leading projects Marginal cost plus pricing Market development strategy Market niche Market penetration prices Market penetration pricing Market penetration strategy Market position Market segmentation Market skimming prices Market skimming pricing Marketing concepts Marketing mix Mark-up pricing Matrix organisation structure McKinsey’s 7S approach Mechanistic organisation Mendelow’s stakeholder power/interest matrix Mergers Mintzberg Mintzberg’s five building blocks for organisational configurations Mintzberg’s six organisational configurations Mission Mission statement Monopoly pricing Moving averages Multi-domestic strategy 255 40 421 370 338 216 200 341 327 215 331 89 340 327 325 99 338 243 268 252 148 226 137 254 255 136 25, 137 332 64 170 © Emile Woolf Publishing Limited Index Multinational companies (MNCs) 170 N National competitive advantage Net present value Network analysis Niche marketing Nicher Non-relevant costs 49 367 379 337 200 416 O Objectives Ohmae Operational planning Organic organisation Organisation learning Organisation structure Organisation structure functional Organisation structure process view Organisational context of change Organisational processes Organisational structure divisional Organisational structure functional Oster Outsourcing Outsourcing business processes 138 172 23 252 454 240, 252 290 290 271 246 241 241 86 249 304 P Parental developers Parenting matrix Payback Pedler, Burgoyne and Boydell Penetration pricing People strategy People-oriented theory Perfect competition Personal development PEST analysis also see SLEP analysis PESTEL analysis limitations PESTEL model Peters and Waterman: the concept of excellence Physical environment strategy © Emile Woolf Publishing Limited 166 185 367 451 341 329 363 334 448 42 42 46 41 158 329 PIMS analysis 210 Pinto and Slevin (1987) 361 Place 99 Place strategy 327 Planned change (or proactive change) 258 Polycentric orientation 172 Porter 53, 154, 310 six principles of strategic positioning 199 successful competitive strategy 21 value chain 107, 108 Porter’s Diamond 49 criticisms 55 model 41 the four elements 50 Porter’s Five Forces model 73 Porter’s generic strategies for competitive advantage 196 Portfolio managers 165 Portfolio models 177 Post-completion audit 384 Post-industrial job design 447 Price 99 Price discrimination (differential pricing) 341 Price strategy 327 Primary value chain 108 Prince 378 Process change 283 Process diagrams swim lane diagrams 292 Process measures worksheet 300 Process modelling 292 Process redesign 282 Processes strategy 329 Product 99 Product development strategy 216 Product differentiation 89, 337 Product differentiation strategy 340 Product life cycle 342 Product positioning 200 Product strategy 325 Project completion 383 Project constraints 357 Project cost management 380 Project failure 361 Project initiation 358 Project initiation document (PID) 358 Project management 374 problems 372 software 376 523 Paper P3: Business analysis Project manager Project manager and the project sponsor Project plan Project risk Project risk management Project success factors Project team Projects in business Promotion Promotion strategy Proportional model Public sector portfolio matrix 370 373 359 360 382 361 370 356 99 328 67 186 Q Quality circles Quantitative and qualitative factors in decision making 447 420 R Relevant cost of materials Relevant costs Relevant costs of labour Reputation risk Resource audit Resources threshold unique Return on investment (ROI) pricing Ries and Trout Risk register 417 416 419 151 129 120 120 120 339 200 382 S Schein, E - three levels of culture Schwalbe, Kathy Scientific management and job design Scope creep Scope management Seasonal variations Secondary value chain Senge Setting standards Situational theory (contingency theory) Skimming prices SLEPT analysis also see PEST analysis 524 155 374 444 376 376 66 109 452 403 437 340 42 SMART 138 Software solutions 301 Spam 349 Span of control 245 Stakeholder influence: the cultural context 149 Stakeholder position/importance matrix 147 Stakeholders 144 expectations 145 external 147 within an entity 146 Standard costs 402 Standards: reviewing 403 Strategic alliance 205 Strategic business unit (SBU) 162 Strategic capability 118 Strategic change 258, 263 Strategic choices 26, 162 Strategic clock (Bowman) 192 Strategic development 223 Strategic drift 31, 33 Strategic fit 236 Strategic groups 86 Strategic management 24 Strategic planning 22 Strategic position 24 Strategic space 87 Strategy 16 definitions 16 levels 18 Strategy as design 32 Strategy as experience 33 Strategy as ideas 34 Strategy business 21 Strategy deliberate 30 Strategy development 30, 212, 278, 279 Strategy implementation 240 Strategy lenses: Johnson and Scholes 32 using 34 Strategy selection 238 Style theory (behavioural theory) 436 Sub-optimisation 398 Substitute products 76 Succession planning 450 Supply chain 319 pull model 320 push model 320 Supply-led 72 © Emile Woolf Publishing Limited Index Supply-led convergence Swim lane diagrams SWOT analysis interpretation preparing Synergy Synergy managers System-oriented theory 72 292 93, 128, 130 132 131 228 165 363 T Tactical planning Target markets Target pricing Technological change and process change Terms of reference The 4Ps TOWS analysis Trait theory Transactional leader Transformational change Transformational leader Transnational companies: Bartlett and Ghosal Triggers for change Triple constraint 22 200 342 283 359 99 93 436 438 258 438 174 259 357 © Emile Woolf Publishing Limited 258 363 V Value 107 Value and competitive advantage 190 Value chain 107 Value chain analysis: use 111 Value creation and strategic management 111 Value network 113, 319 Variances and controllability 405 Vertical integration 229 VIRO framework 130 Virtual organisation 250 Virtual supply chain 319 W Website for design e-commerce Withdrawal strategy Work breakdown structure Work breakdown structure (WBS) Workplace: learning World Wide Web (WWW) 317 220 377 378 448 315 Y U Unethical behaviour Unplanned change (or reactive change) User resistance to new systems 151 Yeates and Cadle 372 525 Paper P3: Business Analysis 526 © Emile Woolf Publishing Limited Publishing P3 Study Text - Business Analysis A well-written and focused text, which will prepare you for the examination and which does not contain unnecessary information • Comprehensive but concise coverage of the examination syllabus • A focus on key topic areas identified by specialist tutors • Simple English with clear and attractive layout • A large bank of practice questions which test knowledge and application for each chapter • A full index • The text is written by Emile Woolf International’s Publishing division (EWIP) The only publishing company focused purely on the ACCA examinations • EWIP’s highly experienced tutors / writers produce study materials for the professional examinations of the ACCA • EWIP’s books are reliable and up-to-date with a user-friendly style and focused on what students need to know to pass the ACCA examinations • EWIP’s association with the world renowned Emile Woolf Colleges means it has incorporated student feedback from around the world including China, Russia and the UK For Distance Learning Programmes please visit our website at: www.ewipublishing.com ACCA ...  ACCA Paper P3 Business Analysis Welcome to Emile Woolf‘s study text for Paper P3 Business Analysis which is: „ Written by tutors „ Comprehensive... Limited Paper P3: Business analysis H Assess the role of leadership and people management in formulating and implementing business strategy Rationale The syllabus for Paper P3, Business Analysis, ... management 13 Paper P3: Business analysis 14 © Emile Woolf Publishing Limited CHAPTER Paper P3 Business analysis The need for, and purpose of, strategic and business analysis Contents © Emile Woolf