BUSS3: Exam Technique

A2 AQA Business

The Basics

• Marks available: 80 • Duration: 105 minutes • Four questions; no choice • Exam based on an unseen case study comprising descriptive text and appendices.

The Basics

• Three questions focusing on 3 of the 4 main functional areas (HRM, Finance, Marketing, Operations); although all three answers need to make connections between the functional areas and also refer to corporate / functional objectives

The Basics

• Functional questions: one analytical question (worth 10 marks); two evaluative questions (typically 16-18 marks each) • Final question: 34-36 marks focusing on evaluation of the strategic options/choices for the business

The Case study

• The case study contains all the information you need to develop high quality answers to all four questions. So use it!

• Address the context provided by the case study. Remember that the skill of application opens the door to achieve good analysis and access the highest levels of evaluation.

The Case study

• Focus relentlessly on the evidence provided in the case study. Draw on the evidence provided of the market/s the business operates in; the structure of the firm (ownership, management etc.); the resources available to the business; the external influences that are most significant to the business.

Depth and answer strength

• A great way to build depth in each answer is to make the connections between the main functional areas of the case study business. Every chosen functional strategy will have implications for other functions. Explain these connections and develop your points to explain their significance. An effective way to do this is to explain “cause and effect".

Depth and answer strength

• • …this will mean… • …as a result… • …a consequence of this might be that… • …because… • …this is likely to lead to… • …although this will depend on…

Objectives • BUSS3 is all about what the case study firm wants to

achieve! So, all your four exam answers must consider those.

• As you read the case study, actively look for and annotate any evidence of corporate or functional objectives. This is vital evidence that will help you develop good application and analysis.

• It also provides great hooks that you can use to evaluate the likely success of the chosen strategies or those under consideration.

Evaluation

• Conduct a SWOT analysis as you go through it

Exam Skills

• Contrast the short versus the long-term: tactical versus strategic

• Most successful business strategies are designed to work in the medium or long-term; not straight away. Decisions that are intended to have a short-term effect tend to be “tactical", not strategic and they are difficult to sustain.

Exam Skills

• A problem that many managers have is that they want instant success; they don't have the patience or experience to recognise that any chosen strategy will take time to implement and that the path to success will be uncertain.

Exam Skills

• If the case study firm is looking for a short-term win (e.g. expecting a significant improvement in its financial performance, or instant success from a marketing initiative) then you can make a nice point about how hard it is to achieve success in the short-term.

• Perhaps the objectives or expectations of the case study business are unrealistic as a result.

Exam Skills

• Who produced the information supporting the strategic options and is it any good?

Exam Skills

• Who produced the information supporting the strategic options and is it any good?

Porters 5 forces

• Intensity of Rivalry – There are only 3 or 4 competitors in this market so

rivalry is low'. Wrong. I ask them to consider the likely size or market share of rivals if so few exist and suddenly it becomes clear that this is a rather intense market which is dominated by a few large operators

Porters 5 forces

• The Threat of New Entrants – Having considered the current rivalry now

consider the likely risk, probability and severity of new entrants in to the market.

– The case study nearly always provides information on rivals i.e. whether the market is likely to expand or contract, the number of operators or market share percentages and projections.

– All of these factors provide indicators of how real the threat of new entrants actually is.

Porters 5 forces • Power of Suppliers • Supplier power refers to the firms upon which the BUSS3

business relies. Clearly this takes on additional prominence when dealing with product or manufacturing businesses rather than service-based organisations.

• Consider how reliant the business is upon its suppliers. If reliant upon a small number of suppliers or specialised suppliers then the business is likely to be exposed.

• However you should also consider the volume of supplies needed.

• Innocent smoothies are a cracking example given the astronomical amount of fruit needed to mass produce their smoothies. A supplier price hike would have significant implications upon their operating costs, pricing flexibility and operating profits.

Porters 5 forces

• Power of Buyers / Customers – The customers have a large and growing

level of choice and therefore power.

Porters 5 forces

• Threat of Substitutes

Evaluation • http://beta.tutor2u.net/business/series/buss3-exam-technique-advice • http://beta.tutor2u.net/business/blog/developing-buss3-exam-skills-the-34-36-

mark-question • http://beta.tutor2u.net/business/blog/buss3-how-to-nail-good-application-

crunch-the-connections-and-calculations • http://beta.tutor2u.net/business/blog/buss3-a-evaluation-high-gearing-is-good-

sometimes • http://beta.tutor2u.net/business/blog/buss3-a-evaluation-investment-appraisal-

and-the-power-of-application • http://beta.tutor2u.net/business/blog/buss3-a-evaluation-do-you-really-have-to-

pay-that-dividend • http://beta.tutor2u.net/business/blog/buss3-example-answer-for-an-18-marker • http://beta.tutor2u.net/business/blog/buss3-example-of-a-34-mark-answer •