3.7 Analysing the strategic position of a business (A-level only)
Mission, corporate objectives and strategy
Updated
We've made some changes to the subject content in the table below. These changes affect A-level exams in 2025 onwards. To find out what's changed, read our summary of changes. You can also visit our updated specification.
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Influences on the mission of a business |
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Internal and external influences on corporate objectives and decisions |
Influences on corporate objectives should include the pressures for short termism, business ownership, the external and internal environment. |
The distinction between strategy and tactics |
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The links between mission, corporate objectives and strategy |
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The impact of strategic decision making on functional decision making |
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The value of SWOT analysis |
Analysing the existing internal position of a business to assess strengths and weaknesses: financial ratio analysis
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Additional information |
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How to assess the financial performance of a business using balance sheets, income statements and financial ratios |
Financial ratio analysis to include:
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The value of financial ratios when assessing performance |
Data may be analysed over time or in comparison with other businesses. |
Analysing the existing internal position of a business to assess strengths and weaknesses: overall performance
Updated
We've made a change to the subject content in the table below. This change affects A-level exams in 2025 onwards. To find out what's changed, read our summary of changes. You can also visit our updated specification.
Content |
Additional information |
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How to analyse data other than financial statements to assess the strengths and weaknesses of a business |
Data other than financial statements should include operations, human resource and marketing data. Data may be analysed over time or in comparison with other businesses. |
The importance of core competences |
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Assessing short- and long-term performance |
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The value of different measures of assessing business performance |
Methods of assessing overall business performance to include:
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Analysing the external environment to assess opportunities and threats: political and legal change
Updated
We've made some changes to the subject content in the table below. These changes affect A-level exams in 2025 onwards. To find out what's changed, read our summary of changes. You can also visit our updated specification.
Content |
Additional information |
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The impact of changes in the political and legal environment on strategic and functional decision making |
The political and legal environment should include a broad understanding of the scope and effects of UK and EU law related to competition, the labour market and environmental legislation. The impact of UK and EU Government policy related to enterprise, the role of regulators, infrastructure, the environment and international trade. |
Analysing the external environment to assess opportunities and threats: economic change
Updated
We've made some changes to the subject content in the table below. These changes affect A-level exams in 2025 onwards. To find out what's changed, read our summary of changes. You can also visit our updated specification.
Content |
Additional information |
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The impact of changes in the UK and the global economic environment on strategic and functional decision making |
Economic factors to include:
Students should be able to understand economic data, interpret changes in economic data for the UK, the European Union and globally, and consider the implications of such changes for business. |
Reasons for greater globalisation of business |
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The importance of globalisation for business |
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The importance of emerging economies for business |
Analysing the external environment to assess opportunities and threats: social and technological
Updated
We've made a change to the subject content in the table below. This change affects A-level exams in 2025 onwards. To find out what's changed, read our summary of changes. You can also visit our updated specification.
Content |
Additional information |
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The impact of the social and technological environment on strategic and functional decision making |
Social changes to include demographic changes and population movements such as:
The social environment to include Corporate Social Responsibility (CSR) and:
Technological change should include the impact of technological change on functional areas and strategy. |
The pressures for socially responsible behaviour |
Analysing the external environment to assess opportunities and threats: the competitive environment
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Porter’s five forces, how and why these might change, and the implications of these forces for strategic and functional decision making and profits |
An understanding of the five forces to include:
Students should consider how the five forces shape competitive strategy. |
Analysing strategic options: investment appraisal
Updated
We've made a change to the subject content in the table below. This change affects A-level exams in 2025 onwards. To find out what's changed, read our summary of changes. You can also visit our updated specification.
Content |
Additional information |
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Financial methods of assessing an investment |
Investment appraisal should include the calculation and interpretation of payback, average rate of return and net present value. |
Factors influencing investment decisions |
Factors to include investment criteria, non-financial factors, risk and uncertainty |
The value of sensitivity analysis |