AQA A-Level Business: Managing strategic change (7132) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions cover section 3.10 Managing strategic change (A-level only) of the AQA AS and A-level Business specification (7132), for first teaching from September 2023. Learn the content in the study guide and revision notes. See also the course hub, the printable checklist and the free diagnostics. Businesses and figures are invented.

Questions

1. Define incremental change and disruptive change. [4]

2. Explain one benefit and one cost to a business of delayering. [4]

3. Pennaford Cycles hires out bicycles and wants to add a monthly e-bike subscription. Its manager lists forces, scored from 1 (weak) to 5 (strong). Driving: rising demand for subscriptions 5, a rival’s new scheme 4, spare cash for investment 3. Restraining: mechanics fear retraining 4, system cost 3, hire shop staff doubt the idea 2, an existing supplier contract 2.

(a) Calculate the total score for each side and the net score. [3] (b) Analyse what the force field analysis suggests Pennaford should do. [3]

4. Yarrowdene Care runs care homes. Its owner announces that rota planning will move to a new app. Many night staff refuse to use it. Some say they were never told why. Others fear that the app will expose slow routines and cost them hours.

(a) Identify two of Kotter and Schlesinger’s reasons for resistance shown in the case. [2] (b) Recommend one method of overcoming resistance and justify your choice. [4]

5. A design studio has no written procedures. Its founder approves every client proposal and staff wait for her decisions.

(a) Identify the type of culture, using Handy’s classification. [2] (b) Explain one problem of changing this culture. [3]

6. Explain how Hofstede’s power distance could affect a business that opens an office in a country where people accept large differences in power. [4]

7. Explain why an organic structure might suit a software business in a fast-changing market. [4]

8. Pennaford Cycles plans to open a new workshop. Activities (weeks): A fit-out 3 (none first); B recruit mechanics 2 (none first); C install equipment 4 (after A); D train staff 5 (after A and B); E order stock 2 (after B); F trial week 3 (after C and D); G set up website 4 (after E); H opening 2 (after F and G).

(a) Calculate the project duration and identify the critical path. [3] (b) Calculate the total float on activities C and G. [2] (c) Activity C now takes 6 weeks. Explain the effect on the project. [3]

9. Analyse one advantage and one disadvantage for a food company of moving from a functional to a matrix structure. [6]

10. (a) Distinguish between planned and emergent strategy. [3] (b) Explain one reason why a business might suffer strategic drift. [3]

11. Explain how corporate governance may reduce problems caused by the divorce between ownership and control. [4]

12. A regional bus company has an annual strategic plan but no plans for events such as a fuel shortage or a depot flood. Evaluate whether it should spend more time on contingency planning than on strategic planning. [10]

Answers

1. Incremental change is change made through a series of small, steady steps [1], rather than one large shift [1]. Disruptive change is sudden and large [1], often forced by new technology or a shock, and it overturns the existing way of working [1]. [4] Examiner insight: A definition earns most when it says what makes the type distinct (size and speed); an example alone rarely defines.

2. Benefit: removing a layer shortens the chain of command [1], so messages and decisions move faster [1]. Cost: managers have wider spans of control [1] and may be overloaded, so supervision and morale may suffer [1]. [4] Examiner insight: Each side needs a development, not just a label such as “cheaper” or “slower”. A benefit and a cost are both asked for, so one-sided answers cannot reach full credit.

3. (a) Driving: 5 + 4 + 3 = 12 [1]. Restraining: 4 + 3 + 2 + 2 = 11 [1]. Net score 12 − 11 = +1 [1]. (b) The net score is only slightly positive [1], so the change is not clearly likely to succeed and the subscription should not be pushed through unchanged [1]. Pennaford should reduce the largest restrainers, such as by paying for mechanics’ training or negotiating the supplier terms [1]. [6] Examiner insight: Show both totals before the net score. For the analysis, refer to named forces in the case; a general comment about “weighing up” gains little.

4. (a) Misunderstanding (staff say they were not told why) [1]. Parochial self-interest (fear of exposing slow routines and losing hours) [1]. (b) Recommend education and communication [1], because part of the resistance comes from lack of information [1]. Managers can explain why the app is needed and how rota hours will be protected [1]. However, it will not remove the fear of lost hours on its own, so it should be paired with a guarantee or negotiation for those staff [1]. [6] Examiner insight: Your method should match a reason you identified in part (a); naming a method and ignoring the case wording is a common loss of marks.

5. (a) Power culture [1], as control sits with the founder and staff wait for her decisions [1]. (b) The founder may see the existing culture as her own way of working and resist handing over decisions [1]. Staff used to waiting for orders may lack the confidence or skills to take decisions [1], so changing to a task culture may cause delays, errors or staff leaving before it settles [1]. [5] Examiner insight: Link the problem to this business. A generic point that culture is “hard to change” does not use the case.

6. Hofstede’s power distance measures how far people accept unequal power [1]. In a high power distance country, staff may expect managers to give firm orders [1] and may be uncomfortable with a flat structure or being asked to share ideas [1]. A business using participative management might find staff less responsive, so it may need to adapt its style or train managers locally [1]. [4] Examiner insight: Define the dimension briefly, then apply it to a management practice. Describing the dimension without a business consequence stays at the knowledge level.

7. An organic structure has few rules, wide roles and shared decisions [1]. In a fast-changing market, teams can respond quickly without waiting for approval [1]. Staff across the business can share new ideas, which suits a software firm that relies on knowledge [1]. This can help the business adjust products faster than rivals with rigid hierarchies [1]. [4] Examiner insight: Tie the features to the context of fast change. A list of organic features without the link to the market gains less.

8. (a) Forward pass: A ends 3; B ends 2; C ends 7; D starts 3 and ends 8; E ends 4; G ends 8; F starts 8 and ends 11; H starts 11 and ends 13 [1]. Duration 13 weeks [1]. Critical path A, D, F, H (3 + 5 + 3 + 2 = 13) [1]. (b) C: latest finish 8 (F must start by 8), so float = 8 − 4 − 3 = 1 week [1]. G: latest finish 11, so float = 11 − 4 − 4 = 3 weeks [1]. (c) C now ends at week 9, which is later than D’s finish at 8 [1]. F cannot start until week 9, so the project ends at week 14 (3 + 6 + 3 + 2) [1]. The critical path becomes A, C, F, H, and D now has 1 week of float [1]. [8] Examiner insight: Show earliest and latest times so any slip can be traced. In an amendment answer, state the new duration and the new critical path, not just that the project is delayed.

9. Advantage: matrix structure lets staff from different functions work together on a product or project [1], so skills are shared and cross-department problems are solved faster [1]. Disadvantage: staff report to both a function head and a project manager [1], which can cause conflicting instructions and disputes over priorities [1]. The result could be slower decisions and stress [1]. Whether the move is worthwhile depends on how much the company relies on cooperative projects compared with routine production [1]. [6] Examiner insight: “Analyse” needs a chain of reasoning, not a list. Contrast with the functional structure to show you know what the business is leaving behind.

10. (a) Planned strategy is set in advance by senior managers after analysis [1]. Emergent strategy develops over time from day-to-day decisions and responses to events [1]. Planned gives direction and control, whereas emergent is more flexible [1]. (b) Complacency after past success [1]: managers keep using methods that worked before [1], so the strategy gradually fails to match changes in customers or rivals [1]. [6] Examiner insight: A distinction needs both terms treated; describing only one earns less. Link a reason for drift to the effect on the strategy’s fit.

11. The divorce between ownership and control means managers may pursue their own aims, such as bonuses, instead of shareholder returns [1]. Corporate governance includes a board with independent non-executive directors [1] who can challenge managers [1]. Clear reporting and shareholder voting rights allow owners to see results and remove poor directors [1]. [4] Examiner insight: Show the problem first, then a governance feature that tackles it. A list of governance features without that link is less secure.

12. Arguments for more contingency planning: the company has no plans for events like fuel shortages or flooding [1], so one shock could stop services and cost revenue and reputation [1]. Preparing responses lets managers act quickly and calmly [1]. Arguments against: strategic planning gives direction, aligns departments and guides spending [1], and an annual plan already exists, so extra time on it brings smaller gains [1]. Contingency planning costs time and money and cannot cover every event [1]. Judgement: the company should shift some time to contingency planning [1], but only for the most likely and damaging events, such as fuel supply and depot access [1], while keeping the strategic plan [1]. The right balance depends on how likely each shock is and how costly it would be [1]. [10] Examiner insight: Evaluation needs a reasoned conclusion that refers to the bus company’s position. Describing both plans without a decision keeps an answer at the analysis level.

Where marks are usually lost

• Defining a term by giving only an example.
• Giving a benefit or cost with no development of why it follows.
• Totalling forces but not comparing the sides or commenting on subjectivity.
• Naming a resistance method that does not fit the reason shown in the case.
• Describing Handy’s cultures without matching to features in the case.
• Reciting Hofstede’s dimensions with no business consequence.
• Forgetting to recalculate the critical path after an activity changes.
• Treating float as the length of an activity.
• Listing points for “evaluate” without a final judgement.

Next steps

• Recap with the revision notes and the study guide.
• Go to the AQA A-level Business hub or the checklist.
• Try all free 10-minute diagnostics.
• Book a free trial class: /trial/.

Frequently asked questions

How do you match a method of overcoming resistance to change? Identify Kotter and Schlesinger’s reason for resistance shown in the case, then choose a method that fits it and weigh its drawback. Naming a method that does not fit the reason in the case is a common error.

What should a force field analysis answer include? Total the scores for the driving and restraining forces, compare the two sides, and comment on how subjective the scores are before saying what the result suggests.

What is total float in network analysis? Total float is the spare time an activity has without delaying the whole project, calculated as latest start minus earliest start. Treating float as the length of an activity is a frequent mistake.

What should you do when an activity’s duration changes in a network? Rework the forward and backward passes and recalculate the critical path, because a longer non-critical activity may use up its float or become critical. Forgetting to recalculate loses marks.

Official syllabus

AQA AS and A-level Business (7131 and 7132) specification, published by AQA: section 3.10 Managing strategic change (A-level only).