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    Business Objectives and Strategy: Strategy and implementation — OCR A-Level Business

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    Business Objectives and Strategy: Strategy and implementation explained

    This topic covers the fundamental functions of a business, including marketing, production, operations management, accounting and finance, as well as customer service, sales, and support services, and evaluates their importance to stakeholders.

    What to demonstrate

    1. Identification of key business functions: marketing, production, operations management, accounting and finance, customer service, sales, and support services.
    2. Evaluation of the impact and importance of these functions to various stakeholder groups.
    3. Understanding how these functions interact within a business context.

    Business Objectives and Strategy: Strategy and implementation exam tips

    Quick Revision Summary (Key Takeaway)

    Strategy and implementation in OCR A-Level Business covers how firms translate strategic aims into operational plans, including resource allocation, project management, and change leadership. It links corporate objectives to functional tactics, emphasising the importance of aligning internal capabilities with external opportunities to achieve sustainable competitive advantage.

    Topic Overview

    Strategy and implementation is a core topic in OCR A-Level Business that bridges the gap between high-level corporate objectives and day-to-day operations. It covers how businesses decide on a long-term direction (strategy) and then put that plan into action (implementation). This includes resource allocation, project management, and managing change. Understanding this topic is essential for analysing real-world business success and failure, as many firms struggle not with setting strategy but with executing it effectively.

    In the exam, you will be expected to apply these concepts to case studies, evaluating how well a business's implementation matches its strategic aims. You need to know the key models like Ansoff's Matrix and Porter's Generic Strategies, but also the practical aspects of implementation, such as leadership styles, organisational culture, and communication. This topic links to other areas like marketing, operations, and human resources, so a holistic understanding is crucial.

    Mastering this topic will help you develop critical thinking skills, as you will need to assess the feasibility and acceptability of strategies in different contexts. You will also learn to use analytical frameworks to break down complex business problems. This is not just about memorising definitions; it's about applying logic and evidence to support your arguments, which is a key skill for both exams and future careers in business.

    Key Concepts
    • →Strategy vs. tactics: Strategy is the long-term direction; tactics are short-term actions to implement it.
    • →Strategic implementation involves resource allocation, project management, and change management.
    • →Key models: Ansoff's Matrix (market penetration, product development, market development, diversification) and Porter's Generic Strategies (cost leadership, differentiation, focus).
    • →Barriers to implementation: resistance to change, lack of resources, poor communication, and weak leadership.
    • →The importance of aligning functional strategies (marketing, operations, HR) with corporate strategy.
    Marking Points
    • Identification of key business functions: marketing, production, operations management, accounting and finance, customer service, sales, and support services.
    • Evaluation of the impact and importance of these functions to various stakeholder groups.
    • Understanding how these functions interact within a business context.
    Examiner Tips
    • 💡Use real-world business examples to illustrate how different functions work together.
    • 💡Always consider the impact on stakeholders when evaluating the importance of a business function.
    • 💡Be prepared to apply knowledge of these functions to the specific business context provided in the Resource Booklet.
    • 💡Always use the context of the case study. Apply your knowledge to the specific business, not generic examples.
    • 💡When evaluating, use a clear structure: point, evidence, explanation, and a justified conclusion. Use phrases like 'on balance' or 'the most significant factor is...'.
    • 💡Learn key definitions and models precisely, but also be able to apply them to unfamiliar scenarios. Practice past paper questions to get used to the command words.
    Common Mistakes
    • Treating business functions as isolated silos rather than integrated components.
    • Failing to link the functions to specific stakeholder impacts.
    • Providing generic descriptions without evaluating the importance of the function to a specific business scenario.
    • Misconception: Strategy and implementation are separate and sequential. Correction: They are iterative; implementation feedback can lead to strategy adjustments.
    • Misconception: A good strategy guarantees success. Correction: Implementation is equally important; many strategies fail due to poor execution.
    • Misconception: Implementation is just about following a plan. Correction: It requires flexibility and adaptation to changing circumstances.
    Revision Plan
    1. 1Week 1: Learn the core definitions and models (Ansoff, Porter). Create flashcards for key terms.
    2. 2Week 2: Practice applying the models to case studies. Focus on implementation barriers and how to overcome them.
    3. 3Week 3: Work on evaluation skills by writing 12-mark essays. Get feedback from your teacher.
    4. 4Week 4: Do past paper questions under timed conditions. Review mark schemes to understand what examiners look for.
    Exam Question Types
    • 📋Multiple choice questions testing definitions of strategy and implementation.
    • 📋Short answer questions asking to explain a concept like 'strategic drift'.
    • 📋Data response questions with a case study, asking to analyse and evaluate a business's strategy and implementation.
    • 📋Essay questions (12-16 marks) requiring a balanced evaluation of a strategic decision.
    Command Word Expectations (OCR)
    Evaluate

    In OCR A-Level Business, 'Evaluate' requires you to make a judgement based on evidence. You must consider different perspectives, weigh up pros and cons, and come to a reasoned conclusion. Use a structured approach: point, evidence, explanation, and then a final justified decision. Avoid being one-sided; show you can see the bigger picture.

    Analyse

    For 'Analyse', you need to break down a concept or situation into its component parts and explain the relationships between them. In strategy, this might involve explaining how a change in the external environment affects the strategic options and their implementation. Use chains of reasoning (e.g., 'this leads to...', 'as a result...') to show depth.

    Discuss

    This command word expects you to explore different viewpoints or arguments. You should present multiple sides of an issue, using evidence and examples, and then come to a balanced conclusion. It is not enough to just list points; you must show how they interact and which are more significant.

    How Students Lose Marks (Examiner Pitfalls)
    Pitfall: Students often confuse strategy with tactics, or fail to link implementation to the original objectives, resulting in generic answers that don't address the specific context.
    ❌ Weak Answer (Loses Marks):Strategy is the long-term plan and implementation is just doing it. The business should just get on with it.
    Example improved answer:Strategy is the overarching long-term direction of the business, such as achieving market leadership, whereas implementation involves the detailed operational plans and resource allocation needed to execute that strategy. For example, if the strategy is to grow through innovation, implementation would include R&D investment, hiring skilled staff, and setting project milestones. Effective implementation requires aligning all functional areas with the strategic goals and monitoring progress through KPIs.
    Examiner Tip: Always use the context of the case study. Identify the specific strategy and then discuss how it would be implemented in that business, considering resources, culture, and stakeholder resistance.
    Pitfall: In evaluation questions, students often list advantages and disadvantages without weighing them up or reaching a justified conclusion, losing marks for judgement.
    ❌ Weak Answer (Loses Marks):There are many factors to consider. Some are good and some are bad. It depends on the situation.
    Example improved answer:The success of implementation depends on the fit between the strategy and the business's internal and external environment. For instance, a cost leadership strategy requires tight cost controls and economies of scale, which may be difficult for a small firm. However, if the firm has strong leadership and a flexible culture, it can overcome resource constraints. Ultimately, the most critical factor is the ability to adapt to feedback and change course when necessary, so a balanced approach with continuous monitoring is likely to be most effective.
    Examiner Tip: Use a structured evaluation framework: consider the context, weigh short-term vs long-term, and make a clear judgement. Use phrases like 'on balance' or 'the most significant factor is...' to show critical thinking.
    Step-by-Step Worked Solutions

    Question: A business has a strategy to increase market share by 10% in two years. It has a current market share of 15% and total market size is £50m. Calculate the required increase in sales revenue to achieve this target.

    1. 1.Step 1: Identify current market share and total market size: 15% of £50m = £7.5m.
    2. 2.Step 2: Calculate target market share: 15% + 10% = 25%.
    3. 3.Step 3: Calculate target sales revenue: 25% of £50m = £12.5m.
    4. 4.Step 4: Find the increase: £12.5m - £7.5m = £5m.
    Final Answer: The business needs to increase sales revenue by £5 million to achieve a 25% market share.

    Question: Explain two potential barriers to the successful implementation of a new strategy and how they might be overcome.

    1. 1.Step 1: Identify barrier 1 - e.g., employee resistance due to fear of change.
    2. 2.Step 2: Explain how to overcome - e.g., effective communication and involvement in decision-making.
    3. 3.Step 3: Identify barrier 2 - e.g., lack of resources (financial or human).
    4. 4.Step 4: Explain how to overcome - e.g., securing investment or training existing staff.
    5. 5.Step 5: Conclude with the importance of leadership in overcoming barriers.
    Final Answer: Two barriers are employee resistance and resource constraints. Resistance can be overcome through transparent communication and participation, while resource issues can be addressed by reallocating budgets or seeking external funding. Strong leadership is essential to drive change.
    Active Recall Memory Test
    What is the difference between strategy and implementation?
    Key Fact: Strategy is the long-term direction and scope of an organisation, while implementation is the process of turning that strategy into action through operational plans, resource allocation, and management of change.
    List three common barriers to strategy implementation.
    Key Fact: Employee resistance, lack of resources (financial, human, or technological), and poor communication or leadership.
    What is the role of leadership in strategy implementation?
    Key Fact: Leadership is crucial for setting a clear vision, motivating employees, managing resistance to change, and ensuring that resources are effectively deployed to achieve strategic goals.
    Define 'strategic drift' and give an example.
    Key Fact: Strategic drift is when a business's strategy gradually becomes less relevant to its external environment. Example: Kodak failing to adapt to digital photography despite inventing the technology.
    Frequently Asked Questions
    What is the difference between strategy and tactics in business?
    Strategy is the overall long-term plan to achieve a company's goals, such as becoming the market leader. Tactics are the specific short-term actions taken to implement that strategy, like a promotional campaign or a price cut. For example, if the strategy is to differentiate through quality, a tactic might be to launch a premium product line. In exams, make sure you use the terms correctly and show how tactics support strategy.
    How do you evaluate a business strategy in an A-Level exam?
    To evaluate a strategy, you need to consider its suitability, feasibility, and acceptability. Suitability means does it fit the external environment and internal capabilities? Feasibility asks if the business has the resources and skills to implement it. Acceptability considers stakeholder expectations and risks. Use a structured approach: state your judgement, justify it with evidence, and consider alternative viewpoints. For example, a cost leadership strategy might be suitable in a price-sensitive market but not feasible for a small firm with high costs.
    What is strategic implementation and why is it important?
    Strategic implementation is the process of putting a chosen strategy into action. It involves translating strategic plans into operational tasks, allocating resources, and managing change. It is important because even the best strategy will fail if it is not implemented effectively. Poor implementation can lead to wasted resources, employee resistance, and missed objectives. In exams, you might be asked to suggest how a business could implement a strategy, so think about practical steps like training, communication, and monitoring.
    What are the key elements of a successful strategy implementation?
    Key elements include clear communication of the strategy to all stakeholders, strong leadership, adequate resources (financial, human, and technological), a supportive organisational culture, and effective project management. You also need to set milestones and KPIs to monitor progress. In your answers, use examples like a company introducing a new product line: it needs R&D, marketing, and sales to work together, and a project manager to coordinate.
    How does the external environment affect strategy implementation?
    The external environment, such as economic conditions, competition, and technological change, can create opportunities or threats that affect how a strategy is implemented. For example, a recession might force a business to cut costs during implementation, while a new technology might enable a more efficient process. Use PESTLE analysis to structure your answer. In exams, always link the external factor to a specific implementation decision, like delaying a launch due to a downturn.
    What is the difference between a mission statement and a strategic objective?
    A mission statement describes the overall purpose and values of the business, such as 'to make people happy' (Disney). Strategic objectives are specific, measurable goals that help achieve the mission, like 'increase market share by 5% in two years'. Objectives are more concrete and time-bound. In exams, you might be asked to write objectives for a given mission, so make sure they are SMART (Specific, Measurable, Achievable, Relevant, Time-bound).