Strategic response to external factors

Practice

Recall it first, then use it — testing yourself builds the memory, where rereading the notes above only feels easier.

Recall and application shuffled together — you have to work out what each item wants before you can answer it, which is the part the exam actually tests. Both kinds feed the same spacing schedule, so anything you miss comes back sooner.

Say the answer out loud before flipping — that attempt is where the learning happens, even when you get it wrong.

Exam-style only. Instant feedback, shuffled each attempt, best score saved on this device.

What actually comes up

One task, four parts (a)–(d), every year. "Evaluate a strategic response" — the full four sub-parts (i)–(iv) — appears in exactly two of the four parts every year; the other two cover operating-overseas opportunities/threats, a support agency, or supply-chain technology. Every single "evaluate a strategic response" (i) part, in all three years transcribed here, uses the identical phrase "at least TWO of size, scope, and timeframe" — and the schedules label their own sample answers with exactly those three bracketed words.

Across 3 years

The pattern — what to prepare

The 2025 paper ↗ Marking schedule ↗

Part (a) — Cultural intelligence in HR strategy

GlobalDairy Solutions, a Bay of Plenty dairy manufacturer using geothermal energy (90% less carbon than a coal-fired plant), operates as a multinational with staff from many backgrounds and has built a cultural intelligence training programme.

• a(i) State the strategic response, and explain why this is a business-wide reaction at multiple levels (at least TWO of size, scope, and timeframe). Achieved
• a(ii) Explain one positive impact of the strategic response. Merit
• a(iii) Explain one negative impact of the strategic response. Merit
• a(iv) Provide a justified conclusion, including any new information, as to the likely success of the strategic response. Excellence

Part (b) — Operating overseas

GlobalDairy Solutions produces for the international market and has expanded into China, amid accelerating Asian demand for dairy products.

• b(i) Explain one opportunity that the business may receive from operating overseas. Achieved
• b(ii) Explain how this opportunity could negatively impact the economic sustainability of the business. Merit

Part (c) — Technology and the supply chain

GlobalDairy Solutions uses an AI system to track products from farm to shelf, and to monitor farms for environmental and animal-welfare standards, rewarding compliant farmers with premium pricing.

• c(i) Explain how changes in technology can improve the supply chain of the business. Achieved
• c(ii) Explain how the use of new technology could affect the market share of the business. Merit

Part (d) — Environmental sustainability

Facing societal pressure on environmental concerns, GlobalDairy Solutions runs a zero-waste programme with environmental groups, turning leftover materials into fertiliser and animal feed — but faces rising operational costs from strict regulation.

• d(i) State the strategic response, and explain why this is a business-wide reaction at multiple levels (at least TWO of size, scope, and timeframe). Achieved
• d(ii) Explain one positive impact of the strategic response. Merit
• d(iii) Explain one negative impact of the strategic response. Merit
• d(iv) Provide a justified conclusion, including any new information, as to the likely success of the strategic response. Excellence

The 2024 paper ↗ Marking schedule ↗

Part (a) — Cultural or social sustainability

Neat Sip Botanicals, a Bay of Plenty non-alcoholic spirit maker, created a range using native NZ plants (kawakawa, mānuka, horopito) traditionally used by Māori for medicinal purposes, and employs locally at the living wage.

• a(i) State the strategic response, and explain why this is a business-wide reaction at multiple levels (at least TWO of size, scope, and timeframe). Achieved
• a(ii) Explain one positive impact of the strategic response. Merit
• a(iii) Explain one negative impact of the strategic response. Merit
• a(iv) Provide a justified conclusion, including any new information, as to the likely success of the strategic response. Excellence

Part (b) — A support agency

Following success in New Zealand, Neat Sip Botanicals is expanding into the US non-alcoholic spirits market and could use an agency such as New Zealand Trade and Enterprise or ExportNZ.

• b(i) Explain one advantage of using this agency to understand the new market. Achieved
• b(ii) Explain how this advantage could help the business successfully enter the new market. Merit

Part (c) — Rising global demand

US demand for non-alcoholic spirits, wine and beer is surging (e.g. around the 4th of July and year-end celebrations).

• c(i) State the strategic response, and explain why this is a business-wide reaction at multiple levels (at least TWO of size, scope, and timeframe). Achieved
• c(ii) Explain one positive effect the strategic response would have on the business. Merit
• c(iii) Explain one negative effect the strategic response would have on the business. Merit
• c(iv) Provide a justified conclusion, including any new information, as to the likely success of the strategic response. Excellence

Part (d) — A threat of a new market

To meet US demand and avoid trade-barrier costs, Neat Sip Botanicals decided to export its native botanicals but manufacture the spirit itself in the US.

• d(i) Explain one threat that the business may encounter when operating in a new market. Achieved
• d(ii) Explain how this threat could impact the success of the business when trying to establish themselves in the market. Merit

The 2023 paper ↗ Marking schedule ↗

Part (a) — A multinational competitor

Saver Shed, a homeware/grocery/toy/clothing retailer with 54 NZ stores and 8 in Australia and the largest share of a market with few large firms, sells through physical stores only.

• a(i) Explain one threat to the business of the entry of a multinational company. Achieved
• a(ii) Explain the impact that the entry of a multinational company would have on the economic sustainability of the business. Merit

Part (b) — Cultural awareness of managers

Tensions with large customers have highlighted the need to improve the cultural awareness of Saver Shed's operations managers.

• b(i) State the strategic response, and explain why this is a business-wide reaction at multiple levels (at least TWO of size, scope, and timeframe). Achieved
• b(ii) Explain one positive effect the strategic response would have on the business. Merit
• b(iii) Explain one negative effect the strategic response would have on the business. Merit
• b(iv) Provide a justified conclusion, including any new information, as to the likely success of the strategic response. Excellence

Part (c) — Kaitiakitanga

Saver Shed has broadened its measures of success beyond shareholder profit to all aspects of sustainability over the last 15 years.

• c(i) Explain the action the business has taken, or could take, to demonstrate kaitiakitanga. Achieved
• c(ii) Explain how this action could affect the market share of the business. Merit

Part (d) — Consumers shopping more online

Shifting consumer habits have led to more frequent online shopping, challenging Saver Shed's single-channel (physical store only) model.

• d(i) State the strategic response, and explain why this is a business-wide reaction at multiple levels (at least TWO of size, scope, and timeframe). Achieved
• d(ii) Explain one positive effect the strategic response would have on the business. Merit
• d(iii) Explain one negative effect the strategic response would have on the business. Merit
• d(iv) Provide a justified conclusion, including any new information, as to the likely success of the strategic response. Excellence

Every part explicitly allows swapping the given company for "a New Zealand-registered business operating in a global context that you have studied in depth" — the 2024 schedule's own sample answer for part (c) does exactly this, discussing Fonterra opening a new mozzarella factory instead of Neat Sip Botanicals.

Past exams & resources

⏱ Timed opens the paper and starts a countdown matching the exam length. Official NZQA PDFs. If a link 404s, that year’s paper may sit under a slightly different code: browse the NZQA subject page.