ICAEW – BST EXAM QUESTIONS AND
ANSWERS GRADED A+ 2025/2026
Rational approach to strategy - ANS Top-down/formal
Requires managers to consider the futures
Outcomes produce communicable documentation to justify actions
Set goals and design a strategy to fit
Often leads to "deliberate strategies"
Mission is the starting point
Emergent approach to strategy - ANS Bottom-up approach
Requires managers to be empowered to seize opportunities as they arise
Strategic choice and implementation happen simultaneously
Mission is embedded in the culture of the organisation
Best suited to dynamic and competitive industries
Influences of the time horizon - ANS Short term - up to 3 years
Medium term - 3-10 years
Long term - upwards of 10 years
Influenced by:
Nature of ownership (private vs state)
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Capital structure (venture capitalists expect speedy return)
Nature of industry
Management skills
Business environment
External appraisal techniques - ANS PESTEL (macro-environment)
Porter's 5 forces (industry)
Porter's diamond (international)
Ohmae's 5 Cs (global expansion)
Internal appraisal techniques - ANS Critical success factors
BCG matrix (product portfolio)
Porter's value chain
Key features of a mission statement - ANS RSVP
Reason
Strategy
Values
Policies and standards of behaviour
3 groups of stakeholders - ANS Internal - employees, management
Connected - shareholders, customers, financiers
External - government, community, pressure groups
Mendelow stakeholder mapping - ANS
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, PESTEL - ANS Issues an organisation may face from its environment
Political
Economic
Social
Technological
Environmental
Legal
Ohmae's 5 Cs - ANS Use when considering global expansion
Customer
Company itself
Competition
Currency volatility
Country
Porter's diamond - ANS Use to assess the advantages that a location gives you over firms
located in other geographical areas.
Strategy (financing), structure (culture) and rivalry (acquisition, competition)
Demand conditions (local, national and global)
Related and supporting industries (expertise and local proximity)
Factor conditions - basic (climate, labour access), advanced (educational, digital communication)
Chance events
Government (influence investment and funding)
Porter's 5 forces - ANS Bargaining power of customers
Bargaining power of suppliers
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS GRADED A+ 2025/2026
Rational approach to strategy - ANS Top-down/formal
Requires managers to consider the futures
Outcomes produce communicable documentation to justify actions
Set goals and design a strategy to fit
Often leads to "deliberate strategies"
Mission is the starting point
Emergent approach to strategy - ANS Bottom-up approach
Requires managers to be empowered to seize opportunities as they arise
Strategic choice and implementation happen simultaneously
Mission is embedded in the culture of the organisation
Best suited to dynamic and competitive industries
Influences of the time horizon - ANS Short term - up to 3 years
Medium term - 3-10 years
Long term - upwards of 10 years
Influenced by:
Nature of ownership (private vs state)
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Capital structure (venture capitalists expect speedy return)
Nature of industry
Management skills
Business environment
External appraisal techniques - ANS PESTEL (macro-environment)
Porter's 5 forces (industry)
Porter's diamond (international)
Ohmae's 5 Cs (global expansion)
Internal appraisal techniques - ANS Critical success factors
BCG matrix (product portfolio)
Porter's value chain
Key features of a mission statement - ANS RSVP
Reason
Strategy
Values
Policies and standards of behaviour
3 groups of stakeholders - ANS Internal - employees, management
Connected - shareholders, customers, financiers
External - government, community, pressure groups
Mendelow stakeholder mapping - ANS
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, PESTEL - ANS Issues an organisation may face from its environment
Political
Economic
Social
Technological
Environmental
Legal
Ohmae's 5 Cs - ANS Use when considering global expansion
Customer
Company itself
Competition
Currency volatility
Country
Porter's diamond - ANS Use to assess the advantages that a location gives you over firms
located in other geographical areas.
Strategy (financing), structure (culture) and rivalry (acquisition, competition)
Demand conditions (local, national and global)
Related and supporting industries (expertise and local proximity)
Factor conditions - basic (climate, labour access), advanced (educational, digital communication)
Chance events
Government (influence investment and funding)
Porter's 5 forces - ANS Bargaining power of customers
Bargaining power of suppliers
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
