STUDY UNIT 1: Strategic Management (28)
After engaging with the materials and activities for Study Unit 1 you should be able to:
● analyse strategic management;
● evaluate the outcomes of good strategic management for the success of the business;
● justify strategic choice as competitive component;
● defend SWOT, Pestle and Porter’s analysis as part of strategic management;
● devise growth strategies to enable a business to respond to the challenges of the market
and macro business environment;
● suggest the appropriate type of business strategy for different circumstances.
Strategic management

Strategic management is the process of formulating and implementing long-term plans
and actions to achieve an organization's goals and objectives.

It involves analysing an organization's internal strengths and weaknesses, as well as
external opportunities and threats in the business environment.

This process guides decision-making at all levels of the organization and ensures
alignment between its resources, capabilities, and the changing market conditions.

Ultimately, strategic management aims to enhance the organization's competitive
advantage and sustainable performance in its industry or sector.
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Good strategic management can lead to 3 aspects:

Optimises consistency between the different levels of management

Optimises consistency between the organisation and its internal and external
environments

Leads to sustainable competitive advantage
Outcomes of good strategic management

It provides a clear sense of purpose and direction for the organization, ensuring that
all stakeholders understand the company's mission, vision, and long-term goals.

It enables the business to adapt and respond effectively to changes in the external
environment, such as shifts in market trends, technological advancements, or
regulatory alterations.

Effective strategic management helps the business identify and leverage its unique
strengths, giving it a competitive edge over rivals in the market.

It facilitates efficient allocation of resources, including finances, human capital, and
time, to initiatives and projects that align with the company's strategic priorities.

Thorough analysis and planning, strategic management allows the business to identify
and mitigate potential risks and uncertainties, reducing the likelihood of costly
setbacks.

Effective strategic management encourages a culture of innovation, driving the
development of new products, services, and processes that can lead to business
expansion and growth.

Good strategic management fosters sustainability by considering the environmental,
social, and economic impacts of business decisions, ensuring the organization's
continued relevance and success in the long run.
Strategic choice as competitive component
A strategic choice is a critical decision made by an organization to achieve its long-term
objectives and gain a competitive advantage in the market. Justifying strategic choice as a
competitive component involves demonstrating how it contributes to the organization's ability
to outperform its rivals and sustain success.

It allows the organization to adapt to changes in the market environment, ensuring it
remains relevant and competitive.

A strategic choice helps in defining what sets the organization apart from its
competitors, whether through product quality, innovation, customer service, or other
factors.

A strategic choice can emphasize innovation, allowing the organization to stay ahead
in terms of technology, product features, or service offerings.

It aims to create a sustainable competitive advantage that is not easily replicated by
competitors.

A strategic choice can involve entering new markets or expanding internationally,
tapping into new customer bases and revenue streams.

A strategic choice ensures that the organization operates within legal and regulatory
frameworks, reducing the risk of costly fines or legal issues.

Financial Performance and Growth: A well-executed strategy leads to improved
financial performance, including increased revenue, profitability, and sustainable
growth.
In conclusion, justifying strategic choice as a competitive component involves demonstrating
how it directly contributes to the organization's ability to outperform rivals, adapt to market
conditions, and achieve its long-term objectives. It forms the foundation for sustainable
success in a dynamic and competitive business environment.
SWOT, Pestle and Porter’s analysis as part of strategic management
SWOT Analysis:

Strengths (S): These are the internal abilities and resources that give a company an
advantage over others in the market. This could include a strong brand, skilled
workforce, advanced technology, or proprietary knowledge.

Weaknesses (W): These are internal factors that may hinder the company's
performance or competitive position. This could include outdated technology, high
employee turnover, or limited financial resources.

Opportunities (O): These are external factors or situations that can be leveraged to the
company's advantage. This could include emerging markets, changing consumer
preferences, or technological advancements.

Threats (T): These are external factors that may pose risks or challenges to the
company. This could include intense competition, economic downturns, or regulatory
changes.
PESTLE Analysis:

Political: This involves considering the influence of government policies, stability, trade
regulations, and other political factors on the business environment.

Economic: This looks at factors like inflation rates, exchange rates, economic growth,
and the overall economic stability of the region or country in which the company
operates.

Social: This encompasses societal trends, cultural norms, demographics, and lifestyle
patterns that can impact the demand for products or services.

Technological: This focuses on the influence of technology on the industry, including
innovation, automation, and the rate of technological change.

Legal: This refers to laws and regulations that affect the industry, such as labour laws,
intellectual property rights, and health and safety regulations.

Environmental: This considers factors related to the natural environment, including
sustainability, climate change, and resource availability.
Porter's Five Forces Analysis:

Threat of New Entrants: This assesses how easy or difficult it is for new competitors to
enter the industry. High barriers to entry (e.g., high capital requirements, strong brand
loyalty) can make an industry less attractive to new entrants.

Bargaining Power of Suppliers: This evaluates the influence suppliers have over the
industry. If there are few suppliers with unique resources, they may have significant
bargaining power.

Bargaining Power of Buyers: This looks at how much power customers have in the
industry. If there are few buyers but many sellers, buyers have more negotiating power.

Threat of Substitutes: This considers the availability of alternative products or services
that can satisfy a similar need. The availability of substitutes can limit the pricing power
of companies in an industry.

Competitive Rivalry: This assesses the level of competition among existing firms in the
industry. High rivalry can lead to price wars and decreased profitability.
Growth strategies to enable a business to respond to the challenges of the market and
macro business environment

Prioritize understanding and meeting the evolving needs and preferences of customers
to build loyalty and drive repeat business.

Leverage technology to enhance online presence, improve customer experience, and
expand reach in the digital landscape.

Foster adaptability and responsiveness to rapidly changing market conditions by
embracing a flexible business model that allows for quick adjustments.

Consider strategic acquisitions or mergers with complementary businesses to gain
access to new markets, technologies, or customer bases.

Strengthen supply chain processes to ensure efficiency, reduce costs, and build
resilience against disruptions.

Foster a culture of innovation to create unique, high-quality products or services that
address specific market needs.

Actively engage with customers, seek feedback, and use their input to continuously
improve products, services, and overall customer experience.

Invest in training and development programs to upskill employees, foster a culture of
innovation, and retain top talent.

Implement effective marketing strategies to attract new customers and optimize
conversion rates to drive revenue growth.
Business strategy for different circumstances.
Differentiation Strategy: When to Use: This is useful in markets where customers value
unique features, brand, or high-quality products or services. It's appropriate for businesses
that can create and sustain a distinctive competitive advantage.
Market Development Strategy: When to Use: When a company seeks growth by entering
new markets or expanding geographically. This is appropriate when there are untapped
markets or regions with potential demand for the company's offerings.
Product Development Strategy: When to Use: This involves introducing new products or
services to existing markets. It's suitable when there's a need for innovation or when
customers are looking for updated or improved offerings.
Diversification Strategy: When to Use: This strategy involves entering new markets with new
products or services. It's appropriate when a company wants to spread its risk across different
markets or industries.
Collaborative or Cooperative Strategy: When to Use: Businesses may collaborate with
other companies through partnerships, alliances, or joint ventures to leverage each other's
strengths. This is useful when combining resources can lead to mutual benefits.
Sustainability and CSR Strategy: When to Use: This involves integrating sustainable and
socially responsible practices into business operations. It's appropriate when there is
increasing consumer demand for ethical and environmentally conscious products and
services.
STUDY UNIT 2: Information management [20]
After engaging with the materials and activities of Study Unit 2 you should be able to:
• Define information management;
• Discuss the distribution of information in a business;
• Describe various sources of information and its characteristics;
• Explain various reasons why information is used;
• Demonstrate how information is disseminated in an organisation;
• Describe different forms (verbal and non-verbal) in which business information can be
presented;
• Present business information using verbal and non-verbal techniques;
Information management

Information management is a comprehensive framework that encompasses the
acquisition, organization, storage, retrieval, and dissemination of data and knowledge
within an organization.

It involves a systematic approach to handling information, ensuring that it is accurate,
relevant, and accessible to support organizational goals and decision-making
processes.

It includes processes such as data collection, data processing, data storage, and data
analysis.

Information management focuses on safeguarding the integrity, confidentiality, and
availability of information, while also adhering to legal and regulatory requirements.

It enables organizations to harness the power of their data to make informed decisions,
streamline processes, and drive strategic initiatives.
Discuss the distribution of information in a business

The distribution of information in a business is a critical aspect of its operations. It
involves the systematic flow of data, knowledge, and communication within an
organization.

Information can be categorized into various types, including strategic, operational, and
tactical, each serving distinct purposes.

At the top levels of management, strategic information is paramount for setting longterm goals and making high-level decisions. As information moves down the
organizational hierarchy, it becomes more detailed and specific to support day-to-day
operations.

This enables real-time updates, enhances efficiency, and promotes better decisionmaking.

Effective information distribution fosters a culture of transparency and accountability
within a business.

It empowers employees with the knowledge they need to perform their roles efficiently
and encourages open communication. Regular feedback loops and channels for
employees to share their insights can further enhance this process. Overall, a wellstructured and efficient information distribution system is vital for the success and
competitiveness of any modern business.
Various sources of information
Primary sources

Primary sources are sources that were written at the same time as the event unfolded.

First hand observations

Interviews, speeches, diaries and birth certificates
Secondary sources

Secondary sources are sources that are mainly written after an event has occurred. –

These are type of sources whereby the author was not present by the time the event
unfolded.

Secondary sources are mainly an interpretation of primary sources.

Journal articles, textbooks, and biographies
Tertiary sources

Tertiary sources are sources that direct one to secondary and primary sources. –

They are sources that one can refer to in order to be guided to potentially relevant
secondary or primary source.

Bibliographies, encyclopaedias and databases
Explain various reasons why information is used

Information provides the foundation for making informed decisions. It helps individuals
and organizations weigh options and choose the best course of action.

It aids in identifying and analysing problems, allowing for the development of effective
solutions. Information helps in understanding the root causes and potential remedies.

Information is essential for the process of learning and education. It helps individuals
acquire new knowledge, skills, and competencies.

Information is a fundamental component of communication. It enables the exchange
of ideas, thoughts, and messages between individuals, groups, and organizations.

Businesses and organizations use information to formulate plans and strategies. This
includes market research, financial data, and performance metrics.

Information is used to document events, transactions, and activities. This helps in
maintaining a historical record and supports accountability.
Demonstrate how information is distributed in an organisation

Email

Social Media

Notice Boards

Newsletters

Messaging Apps

Meetings

Memorandums

Company Portal

Video Conferencing and Webinars
Describe different forms (verbal and non-verbal) in which business information can be
presented
Verbal presentations

Face-to-Face Meetings/Presentations

Video Conferences

Phone Calls

Podcasts

Webinars
Non-verbal presentations

Written Reports/Documents

Graphs and Charts

Infographics

Images/Photographs

Videos

Slideshows/Presentations

Charts and Diagrams

Social Media Posts/
STUDY UNIT 3: The Business Plan (7)
After engaging with the materials and activities of Study Unit 3 you should be able to:

Analyse the purpose of a business plan;

Identify the main components of the business plan;

Evaluate a business plan in a simulated business environment.
Business plan

A business plan is a strategic roadmap, concise and clear,

Outlining goals and objectives a company hopes to achieve.

It defines the mission, target market, and financial scope,

A business plan is a comprehensive guide,

Outlining a company's goals and its stride.

It lays out strategies for growth and success
Main components of a business plan

Executive Summary

Business Description

Market Analysis

Organization and Management:

Marketing plan

Management plan

Operational plan

Financial plan

Supporting documents.

Appendix
Study unit 4: Business plan into action plan
After engaging with the materials and activities of Study Unit 4 you should be able to:
•
Analyse the transformation of a business plan into an action plan with specific
reference to the setting up of planning tools such as Gantt charts, Work Breakdown
Structure (WBS), timelines and responsibilities.
Five different stages for developing the Action Plan

Summary of your vision, mission, goals and objectives

Work Breakdown Structure (WBS)

Action Step chart

Timelines indicating key targets and deadlines

Gantt chart
Work Breakdown Structure

A Work Breakdown Structure (WBS) is a diagram that breaks down all tasks that must
be performed to complete a project.

A WBS is a hierarchical structure.

The project is stated at the top of the diagram.

All tasks that must be performed to complete this project are then grouped or packaged
together.

These chunks of work, or “work packages” are then presented as “branches” of the
WBS.
Gantt charts

Visual tool that introduces other variables such as the responsibilities of every member
of the team that can be used for project management.

It states the starting and end dates, time lines, jobs that must be completed.

To plan projects and to monitor progress of projects.

Indicating how long it will take to finish a project.

Sequencing the activities that must be carried out.

Indicating the tasks that can be carried out simultaneously.
STUDY UNIT 5: Methodology [25]
After engaging with the materials and activities in Study Unit 5 you should be able to:

Interpret your understanding of assessment;

Interpret and apply the principles of assessment in teaching and learning;

Differentiate between the Programme of Assessment for Grades 10 – 12 (PAGE 46)

Illustrate the layout of examinations in Business Studies for Grade 10-12 with reference
to the Topics as content, Sections, Question types, mark allocation and time.
Assessment

Assessment is a structured method of evaluating and measuring an individual's or a
group's knowledge, skills, abilities, and performance in a specific context or domain.

It involves the systematic collection of data through various means, including tests,
observations, and assignments, to gain insights into their strengths, weaknesses, and
areas for improvement.

Assessment serves as a vital tool for educators, employers, and professionals to make
informed decisions about instruction, hiring, or professional development. It enables
the identification of learning gaps and provides a basis for tailored feedback and
support, ultimately promoting growth and development.

Additionally, assessment can also be used for accountability purposes, ensuring that
educational or organizational goals are met effectively.

Examples: diagnostic assessment, formative assessment and summative assessment
Principles of assessment in teaching and learning

Firstly, assessments should be valid, meaning they accurately measure what they are
intended to assess.

They should also be reliable, providing consistent results when administered under
similar conditions.

Additionally, assessments should be fair, ensuring that all learners have an equal
opportunity to demonstrate their knowledge and skills.

Furthermore, assessments should be transparent and clearly communicated to
learners, outlining the criteria and expectations for success.

They should also be formative, offering ongoing feedback to guide learning and
improvement.

Lastly, assessments should be authentic and aligned with the learning objectives,
reflecting real-world application of knowledge and skills
Illustrate the layout of examinations in Business Studies for Grade 10-12 with
reference to the Topics as content, Sections, Question types, mark allocation
and time.
Grade 10 – 12 PAPER 1
SECTIONS
A:
Objective-type
questions
COMPULSORY
B:
THREE
direct/indirect-type
questions
CHOICE:
Answer
any
TWO.
C:
TWO
essay-type
questions
CHOICE:
Answer
any
ONE.
PAPER 2
SECTIONS
A: Objectivetype questions
COMPULSORY
B:
THREE
direct/indirecttype
questions
CHOICE:
Answer
any
TWO.
C: TWO essaytype questions
CHOICE:
Answer
any
ONE.
MARKS
30
TIME (MINUTES)
20
40
70
TOPIC


40

40
30


150
2 HOURS
MARKS
30
TIME
(MINUTES)
20
40
70
TOPIC


40

40
30


150
2 HOURS
BUSINESS
ENVIRONMENTS
BUSINESS
OPERATION
MISCELLANEOUS
TOPICS
BUSINESS
ENVIRONMENTS
BUSINESS
OPERATION
BUSINESS
VENTURES
BUSINESS
ROLES
MISCELLANEOUS
TOPICS
BUSINESS
ENVIRONMENTS
BUSINESS
OPERATION