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CPA PROGRAM
SEMESTER 1, 2016
INTRODUCTION
The extended response section of the Global Strategy and Leadership (GSL) exam
will be comprised of two case studies (cases) on which questions are based. These
cases are provided as pre-seen material prior to the exam.
This section of the exam comprises 80 per cent of the available marks and so the
importance of candidates being able to earn marks for their answers in this section
cannot be underestimated.
Candidates should note that these guidelines include key points drawn from each
module, but they do not include all possible tools or concepts. Candidates are
expected to have a very good knowledge of all aspects of the study material and
must ensure that they consider all possible types of analysis when working through
the pre-seen cases.
Candidates must carefully read the cases provided to determine the relevant models
and tools applicable to the case and undertake the relevant analysis for these. You
should bring your analysis to your exam with you.
Cases will focus on one or more of these key topics, depending on the size of the
case. A case may focus on some particular aspects of the GSL study material,
and provide little or no details about other aspects.
Re-read the case and identify key content in the case that can be linked to these
topics.
3. Analyse the case for each topic area identified, using the models, concepts
and principles related to each topic from the Study Guide.
ANALYSIS BY TOPIC
Module 2 - Understanding the External Environment
Start by drawing out content to allow you to get an understanding of the external
environment discussed in the case.
Some key factors you should be able to draw out from the case to perform your
analysis include –
• How would you define the industry?
• Is the industry global?
• Is the organisation Australian or overseas based?
• Can you make any inferences about the industry value chain from the case?
• What are the key product and services segments in the industry?
• Are you able to identify the stage of the industry life-cycle?
• What have been the remote environment trends that have driven the industry to its
current state?
o Are these factors changing?
o What will be their impact on future growth in the industry?
Use PESTEL to analyse these trends – in particular using the “Issues for
consideration” within each factor in the Study Guide.
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• What are the forces within the industry that determine the current profitability
of the industry?
o Are these forces changing?
o What will be their impact on the future profitability of the industry?
Use Porter’s Five Forces to analyse this information – in particular using the
“Issues for consideration” within each force in the Study Guide.
• What are the different customer market segments in the industry, and can you
make an assessment of what drives customer demand in them?
• Given your remote and industry environment analyses, and your customer
and market analysis, are you able to assess the basis of competition in the
industry?
• What are the key factors that are critical for the organisation to do well in
order to be successful?
• Are there any strategic groups that organisations in the industry compete in?
Again, remember the case may only make reference to some of the factors in the
external environment.
Next you need to draw out content to allow you to get an understanding of the
internal environment discussed in the case.
Some key factors you should be able to draw out from the case to perform your
analysis include -
• Who are the key stakeholders of the organisation, and what are their
expectations from the organisation?
• What are the strategic drivers of the organisation?
• What is the current business strategy of the organisation?
• Is the current business strategy aligned to the expectations of the key
stakeholders?
• Is the organisation’s performance and capabilities aligned to its strategy?
• Identify the capabilities of the organisation and analyse them to determine
whether these capabilities are strategic capabilities.
• Are there are any inconsistencies (gaps) between the current business
strategy and the remote environment, the industry environment and the
performance of the organisation compared to its key competitors?
• Depending on the case you may at this point review any gaps identified and
perform an extended SWOT analysis to reveal possible alternatives and
strategies that the organisation could pursue.
• These will often relate to improving the operational side of the organisation at
this point. Strategic growth options usually fall into the category of new
products and/or new markets, which is covered next.
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Module 4 - Product and Market Development
Next you need to use the content to consider the product and market development
options applicable to the case facts.
• What are the options for product and/or market development for the
organisation?
Use Ansoff’s classifications to evaluate.
• Does the organisation have a strategy regarding development of new
products or expanding its markets to remain competitive and/or to grow? Or
is it possible that the company is taking another approach to growth (e.g.
vertical integration)?
• If the organisation is considering new product development, review the
important aspects to consider, including the key success factors for new
product development.
• If the organisation is considering new market development, is the
organisation trying to enter a new customer or geographic market, or both?
• What are the important considerations for new market development?
o Consider the strategic objectives for new market entry, evaluating the
attractiveness of new markets, the key success factors for new market
development and the advantages and disadvantages of different modes
of market entry.
o Consider the accounting challenges that moving into new products or
markets are likely to bring.
The next part of your analysis should be to draw out points from the content that
relate to development of the strategy and in particular strategic options.
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Module 6 – Strategy Implementation
Next you should draw out from the content points relating to implementation of the
strategy and change management issues.
Finally you should draw out from the content points relating to leadership and
decision making.
• Consider the leadership attributes discussed in the case – for example the
dual roles of manager and leader and the level and type of leadership
displayed or required.
• What is the role of the leader in strategic thinking and decision-making?
• Review the nature and the scale of change required to gain an understanding
of the type of leadership required to lead it.
• How has, or should have, the leader performed in their strategic analysis,
selection and implementation role?
SUMMARY
Each case has a different focus and it is not possible for short cases to cover all aspects
of strategy. Longer case studies are likely to cover more aspects.
It is not sufficient for you to only have read the pre-seen cases prior to your
exam. You need to have performed a detailed analysis using the above
questions as a guide and bring this with you to the exam.
Following the steps outlined in this document, will allow you to determine the focus of a
case and then perform the appropriate analysis based on your understanding of the
models and concepts in the study material. Then in the exam, you will be ready to draw
from your analysis and answer the questions related to the case.
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