ACCA PAPER P3 BUSINESS ANALYSIS ‘BPP Learning Media is an ACCA Approved Content Provider. This means we work | closely with ACCA to ensure this Study Text contains the information you need to pass your exam. | Inthe Study Text which hasbeen reviewed by the ACCA examination team, | + Hight ne most impotent elements inthe syllabus and he ay sls you eed ‘Signpost now each chapter links to the syllabus and the study ‘guide. | + Provide os of exam focus pits demonstrating what is expected of youn te exam + _Emphasise key pons in equa fst onward summaries | + Testyour knowledge in quick quizes + Bzamine your understanding in or practice question bank ‘+ Reference al he important opcs in our ful inde [ae BPP's Practice & Revision Kit also supports this paper. | $e FOR EXAMS IN SEPTEMBER 2016, DECEMBER 2016, MARCH 2017 AND JUNE 2017 < mHFist edition 2007 Ninth etion February 2006 ISBN 9781 4727 44206 (Previcus SBN 978% 4727 26810} efSBN 9781 4727 46719 Bish Library Cataloguin-in-Puication Data ‘catalogue record fr his book isavallable rom te Bs Litrary Published by BPP Leaming Media Lid BPP House, Aldine Pace London W12 BAA _wnbpp convleamingmedia Pind inthe United Kingdom by Postar Wheztons Heonack Road Marsh Barton Ester Be aRP Your letning materials, published by BPP Learning | Media Lit, ae printed on paper obtained trom racable | sustainable soutoas A rigs eee No parol this pbliaion may be reponued stored ina eal siamo: tame, any orm or by any means, electron, mechaical, ptlacoying, ering otherwise, witout te pir vwitenpemision of BFP Learing Media Ls We are grate tothe Assocation of Charred Crted ‘Accounan' for permission to reproduce past cramiation questions, The suggested solutions inthe ‘practice answer tank have been penared by BFP Leaming Media id, ules otherwise slated ° BPP Learning Meda Ltd 2016 ‘Arate sb coy Der Guster Wat des ie © man ard wy does ats? rat asing BFP toks couse mein e-aing ral ooo dupe ansees, Peole wie ther on ‘iro bata ts emp aan rgansabon at est iis ‘ely, Coir aw let isos des so by een Tights ce te vse theca, Bead capt is fom of eas wel as being criminal afer some usc, splenic breach a woesionl eis. ‘Wt cures hogs might ema abl, baay, rite e oars emission o BP Leaing Met «+ Phaocayng our mars teach of cong ‘Seating. easing comesion of al materia ito iret ots, upcading hemo txebrk er -maing temo your tts seh of coy out em - nce ue insheo wth ten ito yaur ‘elo sae? We ptt lo areson Pease rte the e-prodcs sre kd on asin se rence ass we Gol sual ‘loc cates to peope wi have bough socanand ‘ut fac sl your bcs, nthe rin wich you ae | ‘ott abate he UK? BPP Leaing Mea sive to make ‘srs raat pias talents can afr by oa rig ranges prog ois an panetstps wick ae lal sta ‘nur west iy mini sate i cil _ativy by Slog ioc ox maa er sepoting xpi fs obey a ileal and until n one ate conyouraly ston? “@Introduction Helping you to pass Studying P3 The exam paper Syllabus and study guide Part A Strategic position Business stlegy Environmental sues Competitors and customers ‘Strategic capability Stakeholders, ethics, culture and integrated reporting Part B Strategic choices 6 jlegic choices: Part C Organising and enabling success 7 Organising for success Managing stategic change Part D Business process change 9 Business process change 10 Improving processes Part E Information technology ‘tt E-business 12 E-marketing Part F Project management 13. Project management Part G Finance 14 Finanoe Part H People 18 Homan esoure management Part | Strategic development 16 Strategic development Practice question bank Practice answer bank Index Review form 125 163 208 259 279 305 33 383 409 481 57 569 585 sag 631Helping you to pass ‘Asan ACCA Approved Content Provider, BPP Learning Media gives you the opportunity to use study materials reviewed by the ACCA examination team. By incorporating the examination team’s comments ‘and suggestions regarcing the depth and breadth of sylabus coverage, the BPP Learning Media Study ‘Text provides excellent, ACCA-approved support for your studies. Before you can qualify 2s an ACCA member, you not only have to pass all your exams but also fulfil a three year practical experience requirement (PER). To help you to recognise areas of the syllabus that you might be able to apply in the workplace to achieve diferent performance objectives, we have introduced the PER alert feature. You wil find this feature throughout the Study Text to remind you that what you are learning to pass your ACCA exams is equally useful to the fulfilment of the PER requirement. Your achievement of the PER should now be recorded in your on-line My Experience record ‘Studying can be a daunting prospect, particularly when you have lots of other commitments. The different features of the Study Text, the purposes of which are explained fully on the Chapter features page, will help you whilst studying and improve your chances of exam success. ur Texts are completely focused on helping you pass your exam, Our advice on Studying P3 outlines the content ofthe paper, the necessary skills you are expected to be able to demonstrate and any brought forward knowledge you are expected to have. Exam focus points are included within the chapters to highlight when and how specific topics were examined, or how they might be eramined in the future. You can find the syllabus and study guide on page xii-xxi of this Study Text Testing yourself helps you develop the skills you need to pass the exam and also confirms that you can. recall what you have learnt. \We include Questions — iots of them — both within chapters and in the Practice Question Bank, as well as ‘Quick Quizzes atthe end of each chapter to test your knowledge ofthe chapter contentChapter features Each chapter contains a number of helpful features to guide you through each topic. Topic list E What you will be studying in this chapter and the relevant section numbers, together with ACCA syllabus references, Pats the chapter content in the context of the syllabus as Introduction avtole Study Guide Links the chapter content with ACCA guidance. i, Highlights how examinable the chapter content is likely to Exam Guide be and the ways in which it could be examined. What you are assumed to know from previous studies/exams Summarises the content of main chapter headings, allowing you to preview and review each section easily. Demonstrate how to apply key knowledge and Examples ‘techniques. Detinitions of important concepts that can often earn you Key terms easy marks in exams ‘When and how specific topics were examined, or how Exam focus points they may be examined in the future Formulae that are not given in the exam but which have to be learnt. Gives you a useful indication of syllabus areas that AN closely relate to performance objectives in your Practical Experience Requirement (PER). Formula to earn - Gives you essential practice of techniques covered in the Zz chapter. Real world examples of theories and techniques, cnt ‘Aful lst ofthe Fast Forwards included in the chapter, Providing an easy source of review. na A.quick test of your knowledge of the main topics in the chapter. - : Found at the back of the Study Text with more bea TT Comprehensive chapter questions. Cross referenced for easy navigation.Studying P3 Much of the P3 exam is concerned with business strategy. As a Chartred Certiied Accountant you are tkely to find yourcelt deang with matters that are of strategic importance to your organisation. Itis important, thereore, that you have an understanding ofthe way business strategy is conducted so that your input is appropriate and propery considered However, the name of P3 is Business Analysis, nat Business Strategy. Business Analysis is wider than simply strategy and this paper wil also dew from your financial and business skis gained during your studies so fr. It brings these concepts together and encourages you to take a wider view ofthe organisations you ae presented within order to give your analysis of those organisations as @ whole. 1 What P3 is about ‘The aim of the syllabus is to develop students’ abilty to apply relevant knowledge and skills, and exercise the professional judgement in assessing strategic position, determining strategic choice, and implementing strategic ation through beneficial business process and structural change that involve people, finance and information technology. ‘This is an advanced level paper which builds on a number ofthe topics covered in Paper F1 Accountant in Business as wel as topics you wil ave seen in Paper F5 Performance Management. However, as an ‘advanced paper it tests much more than just your ability to recall madets and theories, You must be able to evaluate data, assess the strategic consequences of decisions and advise on alternative courses of action The syllabus is divided into eight main sections, although the examining team are keen that you vie them as an integrated whole, rather than as a series of unrelated sections) (2) Strategic position ‘The syllabus begins by considering the impact of the external environment on an organisation, ‘and looks atthe competitive forces organisations face. It then 2iso looks at an organisation's internal capabilities and expectations, to see how an organisation can position itself to get the most value out of its resources, However, an organisation also needs to consider its responsibilities to differing stakeholder ‘groups, and how the expectations of stakeholders, alongside ethics and culture, help shape organisational purpose. (b) Strategic choice Once an organisation has established its current strategic position it can stat thinking about the direction it wants to take inthe future. This section looks atthe decisions which have to be made ‘about an organisation's future and the way an organisation can respond to the influences and pressures which it identified while assessing its strategic position. (c) Strategic action ‘This section deals with the implementation of strategic choices, and the transformation of these ‘hoices into organisational action, This action takes place in a context of operational processes and relationships, which need to be managed in lin with the intended strategy, and involves the effective coordination of business processes, information technology, people and finance. ‘You will be expected t identi problems and issues in an organisation which prevent it from achieving its strategies, and make recommendations about how these problems can be resolved. BRE ence sine EQ