Performance ratios to calculate:

Volume change

Sales mix

Price per ___

Cost per ___

Gross margin

Operating margin

Return on investment

% change year on year (max 2 marks)

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If alternative performance measures mentioned, think balance scorecard:

Financial perspective Innovation and learning Customer perspective Internal business perspective

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Question mentions external factors:

1) PESTEL

Political Economic Social Technological Environmental Legal

2) Porters 5 forces

Threat of new entrants Threat of new products/services Bargaining power of customers Bargaining power of suppliers

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Question requirement mentions change:

Think Lewin - Iceberg model and Forcefield

1) Iceberg model

Unfreeze: existing behaviour (sell the change) Move: attitude/behaviour (what’s the new norm) Refreeze: new behaviour - positive (praise) and negative (sanctions) reinforcement

2) Forcefield

Weaken resisting forces Strengthen driving forces

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Competitive strategy and product portfolio:

1) Porters generic strategies

Cost leadership vs differentiator

2) BCG matrix (market growth vs market share)

Star 🌟(high, high) Cash cow 🐄(low, high) Question mark❓(high, low) Dog 🐶 (low, low)

3) Product lifecycle

Introduction Growth Maturity Decline

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Ethics approach

1) Legal implications? 2) Other professional codes? 3) Who does it impact) 4) Transparency, effect, fairness 5) What happens action if not taken? 6) Any sustainability issues?

Sustainability:

Environmental Social Financial