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Tuesday, September 9, 2025

CIMA Frameworks

 The RACE and BLT frameworks are not formal, universally recognized business models from a specific author or publication. Instead, they are pedagogical tools developed by educators, like CIMA tuition providers, to help students structure their answers in a clear, concise, and professional manner, particularly for case study exams. They simplify the process of applying complex business theories to a practical scenario under exam pressure.


Other Relevant Frameworks and Models

While RACE and BLT are about structuring your answer, the following are well-known strategic and analytical frameworks that provide the content for your analysis. You'll need to use these to support your arguments within the RACE or BLT structure.

  • SWOT Analysis: A foundational tool for understanding an organization's internal and external environment. It stands for:

    • Strengths: What the company does well internally.

    • Weaknesses: Internal areas for improvement.

    • Opportunities: External factors that the company can leverage.

    • Threats: External risks that could harm the company.

  • PESTLE Analysis: This framework helps to understand the wider macro-environment.

    • Political: Government policies, stability, tax laws.

    • Economic: Economic growth, interest rates, inflation.

    • Social: Cultural trends, demographics, consumer behavior.

    • Technological: New technology, R&D, automation.

    • Legal: Employment law, health and safety regulations.

    • Environmental: Climate change, pollution, sustainability.

  • Porter's Five Forces: Developed by Michael Porter, this model analyzes an industry's competitive intensity and attractiveness.

    • Threat of new entrants: How easy is it for new competitors to enter the market?

    • Bargaining power of suppliers: How much power do suppliers have over the company?

    • Bargaining power of buyers: How much power do customers have?

    • Threat of substitute products: Can customers switch to a different product or service?

    • Competitive rivalry: The intensity of competition among existing firms.

  • Balanced Scorecard: Created by Robert Kaplan and David Norton, this framework provides a holistic view of business performance beyond just financial metrics. It organizes objectives into four perspectives:

    • Financial: How do we look to shareholders? (e.g., profitability, revenue growth)

    • Customer: How do customers see us? (e.g., customer satisfaction, market share)

    • Internal Business Processes: What must we excel at? (e.g., operational efficiency, innovation)

    • Learning and Growth: Can we continue to improve and create value? (e.g., employee skills, technology)

Tuesday, August 26, 2025

CIMA E3

The provided notes for CIMA E3: Strategic Management cover a wide range of topics related to corporate strategy and business environment analysis.

The Strategic Planning Process

The notes outline the rational model of strategic planning as a three-step process:

  1. Strategic analysis: This involves understanding the current position of the company. Key tools for this include PESTEL analysis (examining Political, Economic, Social, Technological, Environmental, and Legal factors) and Porter's Five Forces model (analyzing the bargaining power of buyers and suppliers, the threat of new entrants and substitutes, and competitive rivalry). The notes also discuss internal analysis using the value chain and Boston Consulting Group (BCG) matrix, which categorizes a company's products into stars, cash cows, question marks, and dogs based on market share and market growth.

  2. Strategic choice: This is the process of generating, evaluating, and selecting a new strategy. Frameworks like Porter's Generic Strategies (cost leadership, differentiation, and focus) and Ansoff's Matrix (market penetration, market development, product development, and diversification) are used for this purpose.

  3. Strategic implementation: This involves putting the chosen strategy into action, which often requires significant change management.


The Business Environment

The notes discuss the importance of understanding a business's external environment, which includes the macro-environment and the industry environment. The macro-environment is made up of broad societal forces, while the industry environment consists of factors that directly affect the industry. The notes also touch upon the social environment, including stakeholders, and the concepts of social responsibility and corporate governance.


Stakeholder Analysis and Corporate Governance

A stakeholder is any person or group with an interest in or affected by an organization's activities. The notes mention Mendelow's matrix as a tool for analyzing and prioritizing stakeholders based on their power and interest. The document defines corporate governance as the system by which organizations are directed and controlled, with the goal of ensuring that directors act in the best interest of stakeholders. It also highlights the importance of the board of directors, including the roles of the chairman and chief executive officer (CEO).


Change Management

The notes emphasize that strategic change is a complex process. They identify different types of change, such as incremental versus transformational change, and discuss the various reasons why people resist change. The document highlights Kotter's Eight-Step Change Process as a model for managing strategic change successfully.


Other Strategic Concepts

  • Strategic drift: This occurs when a company's strategy no longer aligns with its external environment.

  • SWOT analysis: This is a simple framework for analyzing a company's internal strengths and weaknesses and external opportunities and threats.

  • Strategic management: This is described as a continuous and evolving process that is essential for a company's long-term survival.

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