Unit 43: Business Strategy
Unit 43: Business Strategy — What to Include (and How)
What the assessor is actually looking for
Map your work to these four outcomes and you’ll hit the mark scheme squarely:
LO1 (Macro environment): A precise PESTLE with evidence of impact priority (not a list). Show how two or three external forces alter strategic choices in the next 12–24 months.
LO2 (Internal/strategic capability): A value chain + VRIO that isolates one or two hard-to-copy resources and explains how they drive margin or differentiation.
LO3 (Industry & competition): A tailored Five Forces and a strategic group map revealing mobility barriers and why rivals cluster where they do.
LO4 (Strategic options & selection): Two or three realistic options, evaluated with SAF (Suitability–Acceptability–Feasibility) and basic numbers (breakeven, sensitivity).
Suggested structure & word count (use this to control depth)
Executive summary (150 words) – decision headline + recommended option.
Company context (200) – business model, profit driver, scope.
PESTLE with prioritisation (400) – rank each factor H/M/L impact; justify with one data point each.
Industry analysis (450) – Five Forces + strategic group map (axes: price vs. breadth, or tech intensity vs. service depth).
Internal analysis (450) – Value chain cost/differentiation levers; VRIO table; capability gap.
Options (350) – 2–3 options framed via Ansoff or TOWS.
Evaluation & numbers (400) – SAF matrix + quick finance (see below).
Implementation & risk (300) – milestones, RACI, KPIs, risk register.
Conclusion (100) – concise decision + next step.
References & Appendices – keep models/tables clean here if word-count is tight.
Company selection rules (save yourself pain)
Pick a firm with accessible data (annual report, investor deck, sector reports).
If using an SME, gather primary data (manager interview, short customer survey). Markers reward original evidence.
Define scope early: geography, product line, and customer segment. Strategy collapses without boundaries.
Analyses that move marks (and how to do them properly)
1) PESTLE that drives choices (not a list)
For each factor, write Impact → Why → Strategic Implication .
End with a 3-bullet implications box , e.g. “Price-sensitive demand → push private label; Data privacy tightening → zero-party data plan; Energy volatility → PPAs or hedging.”
2) Five Forces made specific
State the force mechanism (e.g., “Switching cost is low because APIs are standardised”), then the implication (“price pressure limits premium”).
Add one exhibit : a vendor or customer concentration ratio, or an estimate of fixed vs. variable cost positioning.
3) Strategic group map (often forgotten, easy marks)
Choose axes that genuinely discriminate (e.g., service intensity vs relative price ).
Plot 6–10 rivals; draw mobility barriers (capex, regulation, channel access).
Insight: where is the open space and what barrier must be overcome to move there?
4) Value chain + VRIO that isolates the moat
In the value chain, highlight two cost drivers (learning curve %, utilisation, procurement terms) and one differentiation driver (e.g., data network quality).
VRIO table with short verdicts: Valuable? Rare? Inimitable? Organised? → moat or not.
Finish with a capability gap : one thing you must build/partner for.
5) From analysis to options (TOWS/Ansoff)
Create three viable options, each linked to your findings:
O1 – Market Penetration (pricing/loyalty, channel optimisation).
O2 – Product/Service Development (add-on feature, bundle, or service tier).
O3 – Market Development or Focused Diversification (new segment/geography via partner).
Keep each option to what, why, how, resource need, risk .
Selecting the winning option with numbers (keep it light but real)
Quick finance pack (simple, defensible)
Unit economics: Contribution = Price − (COGS + variable fulfilment + variable marketing).
Breakeven volume: Fixed costs / Contribution per unit.
3-case sensitivity: Base, −10% demand, +10% cost.
Cash needs: Peak cumulative cash outflow during first 12 months.
SAF scoring (transparent)
Create a 0–5 scale matrix (weight in brackets as a guide):
Suitability (45%) : does it exploit VRIO assets? address top PESTLE risks? fit Five Forces reality?
Acceptability (25%) : stakeholder reaction, payback horizon, risk tolerance.
Feasibility (30%) : capabilities, talent, funding, systems.weighted totals ; pick the top option. Include a one-line “killer risk” and how you’ll mitigate it.
Implementation that feels real (markers notice this)
Workstreams (RACI + milestones):
W1: Proposition & pricing – owner: Product; milestone: test pack by Month 2.
W2: Route-to-market/partnerships – owner: Commercial; milestone: 2 signed partners by Month 3.
W3: Ops & tech enablement – owner: Ops/IT; milestone: integration complete Month 4.
W4: People & capability – owner: HR; milestone: hire 2 roles by Month 2, training by Month 3.
W5: Measurement – owner: Finance/PMO; milestone: dashboard live Month 2.
KPIs (tie them to strategy):
Leading: qualified leads/week, activation rate, on-time fulfilment %, NPS/CSAT.
Lagging: gross margin %, CAC payback (months), churn/retention, cash burn.
Risk register (top 5 with early warnings):
Partner delay → no signed MoUs by Week 6.
Cost inflation → supplier quotes >±5% plan.
Adoption risk → activation <30% in first cohort.
Talent gap → role unfilled >30 days.
Regulatory shift → draft bill/consultation released.
Evidence pack (appendices you should include)
PESTLE evidence table (source, date, relevance).
Five Forces snapshot with 1 data point per force.
Strategic group map figure.
Value chain with margin notes.
VRIO grid (1 page).
SAF matrix with weights and totals.
Breakeven & sensitivity mini-table.
Gantt chart (12 weeks/6 months).main report crisp ; push detail to appendices.
Referencing & academic polish (fast wins)
Use Harvard ; cite frameworks (e.g., Porter, Ansoff, Johnson et al.).
Date every market figure; avoid stale numbers.
Label every exhibit: “Figure 3: Strategic Group Map (Author analysis)”.
How to keep it truly original
Add primary insight : a 5-question customer/interview snapshot (n=10) with one chart.
Localise: show one regulation, one cost driver, one channel nuance specific to your chosen market.
Replace generic SWOT with TOWS that creates options.
Convert claims into numbers (even ranges). Markers reward quantified thinking.
Submission checklist (15 quick checks)
Sample Answer of Unit 43 Business Strategy
Introduction British Airways (BA) is one of the leading international airlines with a rich history of operating a global flight connecting millions of passengers to their dream destination. In performing the duties of an Enterprise Strategy Manager, it is vital to carry out an evaluation of the organisation’s internal environment and the external system to identify key strategic directions, goals, and specific managerial strategies that are relevant to BA (Shaw, 2020). The more familiar internal and external analysis tools such as PESTEL and the SWOT analysis are used in this report to give a thorough analysis of factors that affect BA. This paper will make recommendations based on the PESTEL analysis and SWOT analysis of BA organisation to give a clear understanding of the organisation`s environment to the reader. The idea of the development of a strategic management plan is therefore to provide direction toward achieving growth for BA, improving the competitive positioning of the firm, and maintaining and achieving sustainable growth within a volatile industry.
Analysis and Impact of Macro Environment on British Airways To assess the macro environment and the degree to which it constrains or promotes the initiatives of British Airways BA, the PESTEL analytical tool is used to review the political, economic, social, technological, environmental, and legal circumstances affecting the company and its strategies.
Political Factors The operations in the aviation industry are bound by strict compliance with international and national agreements and policies. Brexit has created a major change in BA, that has affected its licensing regime, access to the market, and labour legislation. Operation is disrupted and fuel costs are raised by political instabilities and conflicts including the invasion of Ukraine by Russia (Lynch, 2021).
Economic Factors Global recessions, inflation rates, and moving prices of oil are the factors that are likely to affect BA operational costs and economic returns. The outbreak of the COVID-19 pandemic impacted heavily on the demand for air travel and consequently notable losses. Fluctuations in exchange rates also affect cost and revenue since BA operates internationally (Richter et al., 2022).
Social Factors Fluctuating consumer preferences and greater attentiveness to environmental matters play a role in the decisions BA makes. It is noticed that the client base of BA is more and more focused on environment-friendly ways of traveling, forcing the company to adopt more environmentally friendly policies. Also, some of the factors that affect the developments are demographic trends and changes in the travel patterns of people including business travel and direct flights which influence BA’s services (Grantham, 2022).
Technological Factors For BA, technological progressions like the availability of better and improved efficient aircraft, incorporation of technology in Customer Relations and Service, and Improvements on issues concerning safety and security are very vital. People also utilise technology, whereby increases operation capacity and the quality of services delivered to the customers (Aaker and Moorman, 2023).
Environmental Factors The external issues that affect BA are environmental such as carbon emissions and noise pollution. Rigorous environmental laws and a growing emphasis on eco-friendly measures mean that BA needs to incorporate sustainable technologies and implement less waste and emissions policies (Richter et al., 2022).
Legal Factors There is a necessity to have an understanding and compliance with international aviation laws and regulations, safety, and employment laws. Some of the other important issues that affect the operations of BA include legal issues like passenger rights and data protection (Lynch, 2021).
Thus, the balancing of macro-environmental factors with PESTEL analysis will help BA to minimise risk factors and maximise growth opportunities as well as sustainability.
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