QCF Syllabus

Strategic Business Management and Planning

Unit Title Strategic Business Management and Planning

Unit Reference Number T/602/0128
Guided Learning Hours 180
Level 7
Number of Credits 20

Unit purpose and aim(s):

This unit aims to give learners a sound understanding of:
the nature, scope and need for strategic business management and planning in international organisations
the classical and contemporary models, concepts and tools used in business strategy and planning.
how organisations identify and develop their goals and values
the impact of political, economic, social, technological, environmental and legal factors
the key forces that represent both opportunities and threats
the strategy process to achieve of competitive advantage
the future challenges affecting strategic business management and planning

Learning Outcome 1

The learner will: Understand the nature, scope and need for strategic business management and planning in international profit
and not-for-profit organisations.

Assessment Criteria Indicative Content

The learner can:
1.1 Explain the scope, nature and
characteristics of strategic
business management and
planning in a global environment.
1.2 Critically analyse the need for
strategic business management
and planning in a global
environment.
1.1.1 Examine the nature and context of businesses working in a global environment.
1.1.2 Consider the nature and scope of strategic decisions, in terms of time frames and
level of decision-making.
1.1.3 Explain the characteristics of strategic decisions, including the aim of achieving
competitive advantage, the effect of strategic decisions on the other organisational
levels and the impact of environmental factors.
1.1.4 Examine Mintzbergs 5 Ps to explain the concept of strategy.
1.2.1 Identify and explain the forces driving the need for strategic business management
in a global environment, including:
Reduction in barriers to trade and investment;
Market liberalisation;
Economic development and modernisation;
Integration of worldwide financial markets;
Emergence of economic trade blocs;
Advances in technology, and
Convergence of consumer lifestyles and preferences.
1.2.2 Appraise the global business environment and the nature of global business
activities. This will include appraisal of:
The forms of international trade, such as importing, exporting, international
investment, outsourcing and direct investment.
The risks involved in global strategies, including cultural risk, country risk,
currency risk and commercial risk.
1.3 Appraise the international
dimensions of strategic business
management and planning.
1.4 Analyse the different levels of
organisational strategy and their
relationship with tactical and
operational decision-making.
1.5 Explain the distinction between
profit and not for profit
organisations in terms of
strategic business management
and planning.
Learning Outcome 2
The learner will: Understand a range of classical and contemporary models, concepts and tools in business strategy and planning.
Assessment Criteria
The learner can:
2.1 Identify classical and
contemporary models, concepts
and tools in business strategy
and critically appraise the use of
these concepts and models in
contemporary organisations.
2.2 Distinguish prescriptive and
emergent theories of corporate
strategy and their relevance to
organisations.
1.3.1 Consider the international dimensions of strategy and the organisation, and discuss
the increasing complexity of international business strategy.
1.3.2 Discuss the factors of increasing complexity of international business strategy and
planning, including the impact on functional areas of the business:
Human resource management
Logistics
Marketing
Operations and structure
Marketing
1.3.3 Explain the concept of multi-national corporations and appraise the difficulties in
strategic planning when operating in multiple international locations.
1.4.1 Explain the three levels of organisational strategy:
Corporate level strategy
Business level strategy
Functional level strategy
1.4.2 Discuss the need for corporate and business level strategies to match appropriate
functional level strategies.
1.5.1 Examine the nature of not for profit organisations such as the public sector,
government agencies, charities and nationalised industries.
1.5.2 Explain the concept of strategic planning in not for profit organisations and the
different influences involved.
1.5.3 Consider the political influences in not for profit organisations and the nature of the
competitive environment and how these will affect strategic planning.
1.5.4 Appraise the nature and influence of stakeholders in the strategic planning process
of not for profit organisations.
1.5.5 Compare and contrast strategic planning in profit and not for profit organisations.
Indicative Content
2.1.1 Explain the following concepts and models:
Logical incrementalism
The learning organisation
Transformational change
Muddling through
Strategic drift
Intended strategy/realised strategy/imposed strategy
Emergent strategy and deliberate strategy
2.1.2 Evaluate the difference between static, dynamic and complex business
environments.
2.1.3 Critically examine the applicability of the above concepts and models in these
different business environments.
2.2.1 Consider the nature of the prescriptive theory as a systematic and deterministic
process of strategic planning.
2.2.2 Explain the advantages and disadvantages of a prescriptive approach to strategic
planning.
2.2.3 Consider the nature of the emergent theory as an incremental and unplanned
method of strategic planning.
2.2.4 Explain the advantages and disadvantages of an emergent approach to strategic
planning.
2.2.5 Identify business environments where each approach is suitable.
Learning Outcome 3
The learner will: Understand the processes by which organisations identify and develop their goals and values.
Assessment Criteria
The learner can:
3.1 Examine the processes by which
organisations identify and
develop their goals and values
and mission.
3.2 Appraise the impact of the
conflicting needs, power and
influences of stakeholders on an
organisations goals.
3.3 Examine the influence of
corporate governance and
regulation.
Learning Outcome 4
The learner will: Understand the impact of political, economic, social, technological, environmental and legal factors on an
organisation.
Assessment Criteria
The learner can:
4.1 Evaluate the impact and
influence of the external
environment on an
organisation and relate it to
its strategy.
4.2 Critically appraise the use of
techniques such as PEST,
PESTEL, STEEP and other
derivatives.
4.3 Identify the sensitivities of the
organisation to
environmental change and
appropriate prioritisation of
search mechanisms.
4.4 Appraise determinants of
national advantage using
suitable techniques such as
Porters Diamond.
Indicative Content
3.1.1 Explain the difference between a mission statement, organisational goals, values
and objectives.
3.1.2 Identify who the organisation is there to serve and the direction and purpose of the
organisation.
3.1.3 Examine the nature and purpose of mission statements.
3.2.1 Explain the nature of stakeholder power and interest.
3.2.2 Undertake a stakeholder mapping process (using the Mendelow stakeholder
mapping matrix).
3.2.3 Identify the challenges and opportunities presented by stakeholder groups.
3.2.4 Discuss strategies for managing stakeholder conflict (direction / education /
communication / intervention / participation).
3.3.1 Explain the corporate governance framework.
3.3.2 Examine the importance of separating ownership from management control.
3.3.3 Identify whom the organisation should serve.
Indicative Content
4.1.1 Distinguish the macro environment from the micro environment.
4.1.2 Explain the environmental analysis process that takes place during strategy formulation
and as part of a continuous process of environmental scanning.
4.1.3 Evaluate the macro-economic factors and their impact on organisations (economic
growth rates, inflation rates, interest rates, exchange rates, employment legislation and
taxation policies).
4.2.1 Explain the component factors of Political, Economic, Socio-cultural, Technological,
Ecological/Environmental and Legal (PESTEL)
4.2.2 Critically evaluate the practical use of these techniques in the light of dynamic global
business environments.
4.2.3 Identify and explain the advantages and disadvantages to organisations of undertaking
environmental scanning as part of the strategy formulation process.
4.3.1 Examine the components of environmental change, including environmental complexity
and environmental uncertainty.
4.3.2 Explain how high environmental uncertainty affects business strategy.
4.3.3 Examine the importance of environmental scanning and analysis within an organisation.
4.3.4 Consider the nature and sources of environmental information, including an analysis of
primary and secondary sources.
4.4.1 Examine why certain countries have so many successful international businesses and
why these firms sustain superior performance in a global environment.
4.4.2 Examine the four components of Porters Diamond in order to explain the competitive
advantage of nations.
4.4.3 Appraise the role of government in achieving national competitive advantage.
4.4.4 Explain the concept of clustering.
4.4.5 Discuss the factors which lead to the loss of national competitive advantage, such as
factor deterioration or collapse of supporting clusters.
Learning Outcome 5
The learner will: Understand the key forces that represent both opportunities and threats to organisations whether for profit or
not for profit.
Assessment Criteria
The learner can:
5.1 Evaluate the purpose and
attributes of SWOT analysis.
5.2 Appraise techniques to identify
the sources of competition to
organisations, such as Porters
Five Forces analysis.
5.3 Critically evaluate the turbulence
of environmental change and the
impact on strategic dynamics.
Learning Outcome 6
The learner will: Understand the strategy process for an organisation to achieve competitive advantage.
Assessment Criteria
The learner can:
6.1 Identify the capabilities that
allow organisations to achieve
competitive advantage.
Indicative Content
5.1.1 Explain the component factors of a SWOT analysis.
5.1.2 Identify the internal and external influences of a SWOT analysis, in particular the
influence of PEST analysis.
5.1.3 Explain the value to an organisation of undertaking a SWOT analysis, including an
explanation of the need to convert threats (or weaknesses) into an advantage and
the need to match strengths with opportunities.
5.1.4 Examine the organisations approach to removing weaknesses that leave the
organisation open to threat or cannot be turned into an advantage.
5.1.5 Evaluate the position of the SWOT analysis within the strategic planning framework,
examining the arguments for putting SWOT analysis at the start of the strategy
process.
5.2.1 Examine the concepts of competition and competitive advantage.
5.2.2 Explain the concept of competitive advantage using Porters Generic Strategies.
5.2.3 Explain the sources of competition in an industry, in particular using Porters Five
Forces model.
5.2.4 Discuss the barriers to entry within an industry.
5.2.5 Explain how the Industry Life Cycle may affect the nature of competition within an
industry.
5.2.6 Identify and examine the macro-economic factors that may affect the competitive
environment.
5.3.1 Discuss the nature of changing competitive environments and the impact upon
competitive advantage.
5.3.2 Critically examine the impact of changes in the macro-environment such as new
technologies, globalisation and deregulation.
5.3.3 Explain the cycle of competition and hyper competition.
5.3.4 Identify and discuss how organisations are able to create new competitive
advantage by understanding the factors in the macro-environment and identifying
strategic gaps, such as identification of substitute products, new market segments
or complementary product/service offerings.
Indicative Content
6.1.1 Consider the concept of strategic capability.
6.1.2 Explain the concept of critical success factors.
6.1.3 Explain the following terms relating to strategic capability:
Threshold resources
Unique resources
Available resources
Threshold competences
Core competences
6.1.4 Consider the importance of knowledge as a key capability in the modern business
environment.
6.2 Critically analyse means by which
an organisation positions itself to
outperform its competitors.
6.3 Identify and evaluate appropriate
strategies for emerging, maturing
and declining competitive
positions.
Learning Outcome 7
The learner will: Understand the future challenges affecting strategic business management and planning.
Assessment Criteria
The learner can:
7.1 Analyse global influences and
impact on internationalisation of
strategic business management
and planning.
6.2.1 Explain the use of the value chain in assisting organisations in identifying those
products and services which add value to the business/customer.
6.2.2 Discuss the use of a value system in creating best value products and services.
6.2.3 Discuss the concept of value for money and the importance of ensuring cost
efficiency.
6.2.4 Discuss the concept of effectiveness in achieving competitive advantage.
6.2.5 Examine the importance of understanding the performance standards that need to
be achieved to outperform competitors, using techniques such as benchmarking.
6.3.1 Explain the Product Life Cycle.
6.3.2 Critically evaluate the application of Porters generic strategies within the three
competitive positions, including discussion of:
Cost leadership based strategies;
Differentiation based strategies, and
Focus based strategies.
6.3.3 Discuss the use of ProductMarket strategies, in particular the application of the
Ansoff productmarket scope matrix.
6.3.4 Discuss the risks associated with Diversification based strategies.
6.3.5 Consider alternative growth strategies, such as:
Internal development;
Joint development strategies, and
Mergers and acquisitions.
6.3.6 Examine the use of international growth strategies, such as exporting, overseas
manufacture, multi- national operations, global operations.
6.3.7 Evaluate the issues involved in international growth strategies, such as social
responsibility, cross cultural management, financial control and economic
development issues.
6.3.8 Explain the use of the success criteria of Suitability, Acceptability and Feasibility (SAF
Framework, Johnson and Scholes)
Indicative Content
7.1.1 Consider the dimensions of a global economic environment, including factors such
as:
Changing patterns of global trade, economic development and modernisation;
Development of regional economic groupings;
International impact on currencies and interest rates;
Impact of the influences of economic bodies such as EU and G8, and
Convergence of buyer life styles and preferences.
7.1.2 Explanation of factors driving a new global economy, such as:
Adoption of free trade and transition to market based economies;
The creation of common regulations via supra national organisations, such as EU
and NAFTA and the integration of world financial markets, and
Technological developments.
7.1.3 Analyse the consequences of market globalisation, including:
Societal consequences, such as the effect on national cultures, environmental
impacts and the loss of jobs, and
Organisational consequences, such as new business opportunities, risks of
foreign competition, supplier and customer sourcing and internationalisation of
the value chain.
7.2 Identify environmental issues
impacting upon strategy in the
21st century, for example global
warming, scarce commodities,
emerging economies (BRIC).
7.3 Critically evaluate the effect of
these future challenges on
strategic business management
and planning.
7.4 Appreciate the impact of the
increasingly competitive global
environment and the need for
innovation, intrapreneurship and
entrepreneurship in
organisations.
7.2.1 Consider organisations impact on the global environment and how this may affect
overall business strategy.
7.2.2 Examine the impact of businesses on the environment, in particular the impact of
emerging economies such as China and India.
7.2.3 Consider the corporate social responsibility of organisations in protecting the
environment.
7.3.1 Discuss the effect of globalisation on strategic management and planning.
7.3.2 Discuss the effect on strategic business management of the globalisation of
business, including discussion of:
Impact of global competition and the need to reassess competitive strategies;
Organisation and structure of businesses;
Changing managerial roles in global organisations;
Impact on growth opportunities and development strategies;
Impact on core competences and critical success factors, and
Impact on the organisations value chain.
7.4.1 Explain the need for innovation in reaction to the changing global environment.
7.4.2 Examine the difference between intrapreneurship and entrepreneurship.
7.4.3 Examine how these alternative approaches may help organisations to compete
globally.

Assessment:

Assessment method: written examination (unless otherwise stated).

Written examinations are of three hours duration.
All learning outcomes will be assessed.

Recommended Reading:

Please refer to the Tuition Resources section of the Members Area of the ABE website (www.abeuk.com) for the
recommended reading for this subject.