← Applying business knowledge to a critical problem
The problems that recur
Four scenarios cover almost every paper.| Problem | The cause to name | Where solutions come from |
|---|---|---|
| A new competitor enters | Low barriers to entry; a growing, profitable market | Differentiate, build loyalty, focus on a niche |
| Changed consumer behaviour | Technology or income shifting how people buy | New channel, value range, reposition |
| Unethical staff practices | Incentives rewarding volume over quality | Change the incentive; code of conduct; supervision |
| Growth stretching the business | Cash consumed before returns arrive | Stage the expansion; secure finance first; pilot |
Always name the cause before the solution. A solution that does not attack the cause named in the resource cannot score well however sensible it sounds.
The three-step ladder, applied to any recurring problem
- Achieved: identify and describe two solutions, each with a mechanism.
- Merit: explain how EACH addresses the specific problem, in its own paragraph.
- Excellence: justify with two distinct reasons which is more effective, using resource evidence.
Practice for this standard covers the whole topic — flashcards and quiz.