BAPv5 BCS Practitioner Certificate in Business Analysis Practice v5.2 Questions and Answers

 Porter’s Five Forces model is a technique for analysing the competitive forces that affect an organisation or industry. It helps to assess the attractiveness and profitability of an organisation or industry. Porter’s Five Forces model consists of five forces: threat of new entrants, bargaining power of customers, bargaining power of suppliers, threat of substitute products and competitive rivalry. Therefore, option B is the correct answer, as these preliminary findings would be documented in the bargaining power of customers force of Porter’s Five Forces model. Bargaining power of customers is the force that measures the ability and influence of customers to affect the price, quality and quantity of products or services offered by an organisation or industry. It depends on factors such as customer concentration, switching costs, differentiation and loyalty. An example of bargaining power of customers in this scenario is the market is saturated, customers have a lot of choice and it is easy for them to switch from one bank to another, which implies that customers have high bargaining power and can demand lower prices or better services from banks. Option A is not a correct answer, as these preliminary findings would not be documented in the threat of new entrants force of Porter’s Five Forces model. Threat of new entrants is the force that measures the likelihood and impact of new competitors entering an organisation or industry. It depends on factors such as entry barriers, economies of scale, capital requirements and brand loyalty. An example of threat of new entrants in this scenario is an overseas bank launching a new bank in the UK, which implies that there is a potential threat of new entrants to the existing banks in the UK. Option C is not a correct answer, as these preliminary findings would not be documented in the bargaining power of suppliers force of Porter’s Five Forces model. Bargaining power of suppliers is the force that measures the ability and influence of suppliers to affect the price, quality and quantity of products or services supplied to an organisation or industry. It depends on factors such as supplier concentration, switching costs, differentiation and dependency. An example of bargaining power of suppliers in this scenario is the suggested changes to the business structure will affect our relationships with suppliers, which implies that suppliers may have some bargaining power over the organisation or industry. Option D is not a correct answer, as these preliminary findings would not be documented in the threat of substitute products force of Porter’s Five Forces model. Threat of substitute products is the force that measures the likelihood and impact of customers switching to alternative products or services that satisfy their needs or wants better than those offered by an organisation or industry. It depends on factors such as availability, price, quality and performance of substitute products or services. There is no example of threat of substitute products in this scenario.

CATWOE is a technique for exploring stakeholder business perspectives by identifying six elements: Customer, Actor, Transformation, Worldview, Owner and Environment. It helps to understand how different stakeholders perceive a business situation or problem and what they expect from a solution. Therefore, option A is the correct answer, as it identifies which specific areas of CATWOE are they considering respectively. Customer is the element that describes who benefits from or is affected by a business situation or problem or its solution. It helps to identify who are the recipients or users of value or satisfaction from a business situation or problem or its solution. George and Laura are considering customer, as they have different views on who should be the target market for their products (people aged over 50 vs people aged 30-60). Owner is the element that describes who has the authority or power to start or stop a business situation or problem or its solution. It helps to identify who are the decision makers or influencers of a business situation or problem or its solution. George and Laura are considering owner, as they have different views on who should be responsible for marketing activities (outsourced vs in-house). Option B is not a correct answer, as it does not identify which specific areas of CATWOE are they considering respectively. Actor is the element that describes who carries out or performs a business situation or problem or its solution. It helps to identify who are responsible for implementing or delivering a business situation or problem or its solution. George and Laura are not considering actor, as they have no views on who carries out their products (although this may be related to owner). Transformation is the element that describes what changes or processes take place in a business situation or problem or its solution. It helps to identify what inputs are converted into outputs in a business situation or problem or its solution. George and Laura are not considering transformation, as they have no views on what changes or processes take place in their products (although this may be related to customer). Option C is not a correct answer, as it does not identify which specific areas of CATWOE are they considering respectively. Transformation is the element that describes what changes or processes take place in a business situation or problem or its solution. It helps to identify what inputs are converted into outputs in a business situation or problem or its solution. George and Laura are not considering transformation, as they have no views on what changes or processes take place in their products (although this may be related to customer). Environment is the element that describes the external factors or constraints that affect a stakeholder’s perspective or limit their options. It helps to explain what factors or constraints are beyond the stakeholder’s control or influence. George and Laura are not considering environment, as they have no views on what external factors or constraints affect their products (although this may be related to customer). Option D is not a correct answer, as it does not identify which specific areas of CATWOE are they considering respectively. Customer is the element that describes who benefits from or is affected by a business situation or problem or its solution. It helps to identify who are the recipients or users of value or satisfaction from a business situation or problem or its solution. George and Laura are considering customer, as they have different views on who should be the target market for their products (people aged over 50 vs people aged 30-60). Actor is the element that describes who carries out or performs a business situation or problem or its solution. It helps to identify who are responsible for implementing or delivering a business situation or problem or its solution. George and Laura are not considering actor, as they have no views on who carries out their products (although this may be related to owner).

An enabling activity is an activity that supports or facilitates another activity within a business activity model. It helps to ensure that another activity can be performed or delivered effectively and efficiently. Therefore, option B is the correct answer, as it is an enabling activity linked to this planning activity. Define sales targets is an enabling activity linked to this planning activity, as it supports or facilitates defining marketing strategy. It helps to ensure that marketing strategy can be aligned with sales objectives and outcomes. Option A is not a correct answer, as it is not an enabling activity linked to this planning activity, but a monitoring and control activity. Monitor sales is a monitoring and control activity that measures or evaluates another activity within a business activity model. It helps to ensure that another activity meets quality and performance standards and criteria. Option C is not a correct answer, as it is not an enabling activity linked to this planning activity, but a doing activity. Advertise clothes is a doing activity that produces or delivers value or satisfaction for customers within a business activity model. It helps to achieve customer demand and satisfaction for products or services. Option D is not a correct answer, as it is not an enabling activity linked to this planning activity, but a doing activity. Sell clothes is a doing activity that produces or delivers value or satisfaction for customers within a business activity model. It helps to achieve customer demand and satisfaction for products or services.

An external requirement is a business rule that is imposed by an external source, such as a law, regulation, or standard. The business rule in this question is a legal obligation that EuroCoach has to comply with, so it is an external requirement. Option C is the correct answer.

CATWOE is a technique that helps to understand different perspectives of a situation by analyzing six elements: Customers, Actors, Transformation process, Worldview, Owner, and Environmental constraints. Shelly could use CATWOE to improve her understanding of the IT and finance director’s views on the future direction of the business, by identifying who are the customers, actors, owners, and so on for each option (organic growth or acquisition), and how they differ. Option A is the correct answer.

The pair of techniques that Elizabeth should use first to understand the concerns of operational staff and line managers are interviews and rich pictures. Interviews are a way of eliciting information from stakeholders by asking them open-ended questions and listening to their responses. Interviews can help Elizabeth to explore the views, opinions, needs, and expectations of the staff and managers regarding the process improvement project. Rich pictures are a way of capturing complex situations in a visual form by using symbols, icons, cartoons, or diagrams. Rich pictures can help Elizabeth to illustrate the current problems and issues faced by the staff and managers, as well as their emotions and relationships. Option D is the correct answer.

An enabling activity is an activity that supports or facilitates another activity within an organisation or project. It helps to ensure that another activity can be performed or delivered effectively and efficiently. Therefore, option B is the correct answer, as check adherence to regulation is an enabling activity that supports provide insolvency services, which is the primary doing activity of a BAM reflecting DeanLegal’s business perspective. Check adherence to regulation is an enabling activity, as it involves verifying that the insolvency services provided by DeanLegal comply with the rules and standards set by the Federation of Insolvency Practitioners (FIP). It helps to ensure that DeanLegal can perform its primary doing activity legally and ethically. Option A is not a correct answer, as provide comprehensive support to customers is not an enabling activity that supports provide insolvency services, but another doing activity within DeanLegal’s business perspective. Provide comprehensive support to customers is a doing activity, as it involves delivering value and satisfaction to customers who use DeanLegal’s insolvency services. It helps to achieve DeanLegal’s objectives and outcomes. Option C is not a correct answer, as extend range of services is not an enabling activity that supports provide insolvency services, but a potential change or improvement within DeanLegal’s business perspective. Extend range of services is a change or improvement, as it involves introducing new types of services, such as advice in funding the purchase of capital assets, that DeanLegal may offer to its customers in addition to its insolvency services. It helps to enhance DeanLegal’s performance and potential. Option D is not a correct answer, as recruit experienced negotiators is not an enabling activity that supports provide insolvency services, but a resource audit within DeanLegal’s business perspective. Recruit experienced negotiators is a resource audit, as it involves identifying and evaluating the human resources that DeanLegal has or needs to perform its insolvency services. It helps to assess the availability and quality of DeanLegal’s staff.

The documentation categorises costs and benefits using two dimensions: whether they are tangible (a credible, usually monetary, value can be predicted) or intangible (a credible value cannot be predicted). It also notes that benefits are often a mix of tangible and intangible, and gives examples of intangible benefits such as improved job satisfaction, improved customer satisfaction, and related “people” outcomes that are difficult to value in advance.

In the extract, the £1600 per calendar month rental rate is explicitly a tangible cost because it is a direct monetary figure. The “loss of productivity” during the phased move is a cost of the change; while it might be measurable in some cases, the extract does not quantify it, and it is presented qualitatively as an accepted impact—this aligns with an intangible cost as described in the framework.

The statements about staff feeling “in a stable environment,” having “greater flexibility,” and more opportunities to communicate are clearly intangible benefits: they are positive outcomes, but no credible monetary value is given or implied.

What is not described anywhere in the extract is a tangible benefit—there is no quantified saving, revenue increase, headcount reduction, or other measurable financial gain stated. Therefore, option C is correct.

The event ‘amend KPI’ would affect the activity ‘define performance targets’, as the company would need to change its current performance target of gross profit margin to ROCE. The other activities would not be directly affected by this event, as they are either related to monitoring or defining other aspects of the business. Therefore, option A is the correct answer.

CATWOE is used to explore stakeholder perspectives by examining six elements: Customer, Actor, Transformation, Worldview (Weltanschauung), Owner, and Environment. The Environment element captures the external constraints and conditions that influence what the business system can do, regardless of internal preferences. The text illustrates “environment constraints” as factors outside day-to-day control that shape feasibility and behaviour (e.g., conditions that affect whether customers will buy in a particular way).

In this question, the stakeholder’s concern is about a potential change in government and the introduction of taxes on imported goods. This is not a “Transformation” (the conversion of inputs to outputs), nor is it a “Customer” definition. It also is not primarily a “Worldview,” which in the text is described as the stakeholder’s underlying belief system about why the organisation exists and how success is achieved. Instead, import taxes are an external political/legal constraint that would alter the economic assumptions of the business and could force a business model review.

This aligns squarely with the idea of external environmental influences described in the strategy analysis material (for example, political factors such as government policies and trade regulations/tariffs). Therefore, the stakeholder’s concern should be captured under Environment in CATWOE.

A Power / Interest Grid is a technique for analysing and managing stakeholders based on their level of power and interest in an organisation or project. It helps to identify who are the key stakeholders and how they should be engaged and communicated with. Therefore, option B is the correct answer, as a Power / Interest Grid would help the business analyst to gain an understanding of who the stakeholders are, how much authority they have, and how much involvement they want in the project so that a stakeholder management plan can be created. A Power / Interest Grid would help to classify stakeholders into four categories based on their level of power and interest: high power, high interest; high power, low interest; low power, high interest; low power, low interest. A Power / Interest Grid would help to determine different stakeholder management strategies for each category: active and constant management; keep satisfied; keep informed; watch. Option A is not a correct answer, as CATWOE is not a technique for analysing and managing stakeholders based on their level of power and interest. CATWOE is a technique for exploring stakeholder business perspectives by identifying six elements: Customer, Actor, Transformation, Worldview, Owner and Environment. It helps to understand how different stakeholders perceive a business situation or problem and what they expect from a solution. Option C is not a correct answer, as RACI chart is not a technique for analysing and managing stakeholders based on their level of power and interest. RACI chart is a technique for defining roles and responsibilities of stakeholders in relation to tasks or activities within an organisation or project. It helps to identify who are Responsible, Accountable, Consulted or Informed for each task or activity. Option D is not a correct answer, as resource audit is not a technique for analysing and managing stakeholders based on their level of power and interest. Resource audit is a technique for identifying and evaluating the resources that an organisation has or needs to achieve its objectives. It helps to assess the availability and quality of an organisation’s resources, such as human, physical, financial and intangible resources.

A key performance indicator (KPI) is a measurable value that demonstrates how effectively an organisation is achieving a key business objective or critical success factor (CSF). A KPI should be relevant, specific, measurable, achievable, realistic and time-bound (SMART). Therefore, options C, D and E are appropriate KPIs for the CSF ‘provide excellent customer service’, as they measure aspects of customer satisfaction and loyalty that are directly related to the quality of service provided by the hotel chain. Option A is not an appropriate KPI, as it does not measure customer service, but rather customer consumption. Option B is not an appropriate KPI, as it does not measure customer service, but rather customer preference.

A PESTLE analysis is a technique for identifying and evaluating the political, economic, social, technological, legal and environmental factors that affect an organisation or project. It helps to assess the opportunities and threats that arise from the external environment. Therefore, options A and B are correct answers, as they are categories of factors that can be included in a PESTLE analysis for a small manufacturing company. They describe different aspects of the external environment that influence the company’s situation and prospects. Option A describes a legal factor, which is a factor related to laws, regulations, standards or policies that govern an organisation or project. An example of a legal factor is an amendment to the Data Protection Act, which affects how information about employees’ payroll can be held by an organisation. Option B describes an economic factor, which is a factor related to money, markets, trade or resources that affect an organisation or project. An example of an economic factor is a change in electricity usage calculation by an electricity provider, which affects how much electricity costs for an organisation. Option C is not a correct answer, as political is not a factor that has been discovered in the investigation for the PESTLE analysis. A political factor is a factor related to government, politics, power or conflict that affect an organisation or project. Option D is not a correct answer, as technological is not a factor that has been discovered in the investigation for the PESTLE analysis. A technological factor is a factor related to science, innovation, invention or discovery that affect an organisation or project. Option E is not a correct answer, as environmental is not a factor that has been discovered in the investigation for the PESTLE analysis. An environmental factor is a factor related to nature, ecology, climate or geography that affect an organisation or project.

The email provides clues aligned to Porter’s Five Forces, which the documentation presents as a way to understand competitive pressures in an industry (threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, and rivalry among existing competitors).

First, the buyer is discussing negotiating prices with “producers” in China. Those producers are suppliers to the retailer, and price/terms negotiation is directly related to the bargaining power of suppliers (how much leverage producers have versus retailers, and what conditions they can impose). Secr (and competitor) negotiating pricing indicates the bargaining power of buyers in the supply market: if buyers can negotiate “very competitive” prices, that suggests buyers may have meaningful leverage (e.g., alternative sources or volume).

Third, the mention of HomeLux “one of othe note that “we are not the first company looking to source these products,” indicates industry competitors / competitive rivalry—multiple firms are pursuing similar supply sources and will compete for cost advantage and market position. he email does not provide evidence about substitutes or new entrants (and political factors are not mentioned). Therefore, the best match is D.

The documentation explains that CSFs are the areas where things “must go right,” and KPIs are the measures that show whether progress is being made toward achieving a CSF. KPIs should focus on specific performance areas and should be defined so they are SMART and monitored regularly.

For a CSF of “excellent customer service,” appropriate KPIs should reflect customer experience outcomes and customer loyalty/retention. Option C (“number of customers who post negative feedback”) is directly linked to service quality: negative feedback is a clear indicator that customers perceive service failures. Tracking it (and ideally setting a target such as “no more than X per month”) provides a measurable signal of whether service is improving.

Option D (“percentage of customers who renew their annual subscription”) is also strongly linked to customer service because renewal rates are a widely used indicator of customer satisfaction and loyalty: customers who experience consistently good service are more likely to continue their membership. As a KPI, it is measurable, trendable over time, and can be given SMART targets.

The other options are not direct indicators of customer service quality: restaurant ordering (A) is sales/upsell behaviour, fitness improvement (B) is an outcome of training/programming rather than service, and payment method (E) is an administrative preference. Therefore, the best KPIs for this CSF are C and D.

 A business case is a formal written proposal that details the costs and benefits of a proposed business change or solution. It helps to justify and secure the approval and funding for a proposed business change or solution. A business case typically consists of several elements, such as description of the current situation, analysis of costs and benefits, options considered, recommendations, impact assessment, risk assessment etc. Therefore, option A is the correct answer, as it identifies which set of elements of a business case will cover all of these points respectively. Description of the current situation is an element that describes the problem or opportunity that exists in the current state and the need or rationale for a change or solution. It helps to explain what is wrong or missing in the current state and what are the objectives and outcomes of a change or solution. This element will cover the point that the threat posed to the organisation from cyber attack, and therefore the justification for the project, needs to be clearly articulated. Analysis of costs and benefits is an element that evaluates the financial and non-financial impacts of a proposed change or solution. It helps to compare and contrast the costs and benefits of different options or solutions and determine their feasibility and desirability. This element will cover the point that the benefits of cyber will be described in quantitative terms, so we will need to describe these qualitatively. Options considered is an element that identifies and describes the alternative ways of addressing a problem or opportunity. It helps to explore and analyse the pros and cons of different options or solutions and select the best one based on criteria and evidence. This element will cover the point that we need to make it clear that we have fully explored the solution market, and we have considered a range of approaches to meeting the objectives of this project. Option B is not a correct answer, as it does not identify which set of elements of a business case will cover all of these points respectively. Impact assessment is an element that assesses the effects or consequences of a proposed change or solution on people, processes, organisation and technology. It helps to identify who or what will be affected by a proposed change or solution and how they will be affected. This element will not cover any of these points. Recommendations is an element that proposes and justifies the preferred option or solution for addressing a problem or opportunity. It helps to persuade and convince decision makers or influencers to approve and fund a proposed change or solution. This element will not cover any of these points. Option C is not a correct answer, as it does not identify which set of elements of a business case will cover all of these points respectively. Recommendations is an element that proposes and justifies the preferred option or solution for addressing a problem or opportunity. It helps to persuade and convince decision makers or influencers to approve and fund a proposed change or solution. This element will not cover any of these points. Risk assessment is an element that identifies and evaluates the uncertainties or threats that may affect a proposed change or solution. It helps to estimate the likelihood and impact of risks and plan how to avoid or mitigate them. This element will not cover any of these points. Option D is not a correct answer, as it does not identify which set of elements of a business case will cover all of these points respectively. Description of the current situation is an element that describes the problem or opportunity that exists in the current state and the need or rationale for a change or solution. It helps to explain what is wrong or missing in the current state and what are the objectives and outcomes of a change or solution. This element will cover the point that the threat posed to the organisation from cyber attack, and therefore the justification for the project, needs to be clearly articulated. Impact assessment is an element that assesses the effects or consequences of a proposed change or solution on people, processes, organisation and technology. It helps to identify who or what will be affected by a proposed change or solution and how they will be affected. This element will not cover any of these points. Risk assessment is an element that identifies and evaluates the uncertainties or threats that may affect a proposed change or solution. It helps to estimate the likelihood and impact of risks and plan how to avoid or mitigate them. This element will not cover any of these points.

To understand gaps at a high level in the activities a business performs, the best way to document the desired state is a Business Activity Model (BAM). The documentation explains that gap analysis compares a current state with a desired future state and that a BAM provides a conceptual overview of the desired future business system—showing what activities should exist to fulfil a stakeholder perspective (or an agreed consensus perspective).

This makes the BAM ideal for identifying “activity gaps” because the analyst can examine each activity on the desired-state BAM and assess whether it exists today, whether it operates satisfactorily, whether it is inadequate, or whether it is missing completely. The text explicitly states that the conceptual nature of the BAM helps the analyst see where the current business system is lacking and that gaps can vary by activity (some may be fine, others weak, others absent).

Option B (“to be” process models) is useful, but it is a more detailed view that focuses on how work is carried out rather than providing a conceptual “what activities should exist” overview. CATWOE (C) helps capture and analyse stakeholder perspectives, but it is not, by itself, the best way to document the desired activity set at high level. A business case (D) justifies change; it doesn’t define the activity-based desired operating picture.

The end users are classified as high interest, low power on a power/interest grid. This is because they are directly affected by the new reporting tool and have a strong preference for not using it, but they do not have much authority or influence to change the project decision or outcome. Option A is the correct answer.

 The role of a business analyst (BA) is to analyse business situations and problems, identify and evaluate potential solutions, and facilitate change within an organisation or project. A BA works with stakeholders at different levels and with different interests and perspectives to understand their needs and expectations and ensure they are met by suitable solutions. Therefore, option C is not likely to be used by George’s manager in describing his role as a BA in resolving this problem. To negotiate with stakeholders to reach resolution implies that George has to persuade or compromise with stakeholders to agree on one solution or approach. This is not part of the BA’s role, as the BA does not have the authority or responsibility to make decisions or impose solutions on stakeholders. The BA’s role is to analyse and evaluate different solutions or approaches objectively and present the findings and recommendations to stakeholders for their consideration and approval. Option A is likely to be used by George’s manager in describing his role as a BA in resolving this problem. To understand and challenge the stakeholders means that George has to elicit and validate the stakeholders’ views and needs and question their assumptions and rationale. This is part of the BA’s role, as the BA has to ensure that the stakeholders’ views and needs are clear, consistent, realistic and aligned with the organisation’s strategy and objectives. Option B is likely to be used by George’s manager in describing his role as a BA in resolving this problem. To facilitate the discussion to allow the stakeholders to find a way forward means that George has to organise and conduct meetings or workshops with stakeholders to explore and evaluate different solutions or approaches and help them reach a consensus or agreement. This is part of the BA’s role, as the BA has to enable effective communication and collaboration among stakeholders and help them resolve conflicts or issues. Option D is likely to be used by George’s manager in describing his role as a BA in resolving this problem. To record the meeting and the resulting decision means that George has to document and communicate the outcomes and actions of the meeting or workshop with stakeholders and ensure they are understood and accepted by all parties. This is part of the BA’s role, as the BA has to ensure that there is a clear and accurate record of what has been discussed and decided by stakeholders and that there is a shared understanding and commitment among them.

A mind map is a technique for organising and visualising information in a hierarchical and associative way. It helps to generate, structure and classify ideas and concepts and show how they are related or connected. Therefore, option A is the correct answer, as a mind map would enable Girby to model the arising themes and how they relate to each other. A mind map would help to identify the main theme or problem (declining production) and the sub-themes or causes (staff blaming each other, more parts being faulty etc.) and arrange them in a tree-like structure. A mind map would help to use colours, symbols, images and keywords to represent and emphasise the themes and their relationships. A mind map would help to analyse and evaluate the themes and their relationships and identify any patterns or gaps that may exist. Option B is not a correct answer, as a business activity model is not a technique for modelling the arising themes and how they relate to each other. A business activity model is a technique for modelling business activities within an organisation or project at a high level of abstraction. It helps to understand what an organisation does, how it does it, who does it, where it does it and why it does it. Option C is not a correct answer, as a rich picture is not a technique for modelling the arising themes and how they relate to each other. A rich picture is a technique for drawing a holistic view of a complex situation or problem using informal symbols and images. It helps to capture the main elements and aspects of a situation or problem and how they interact or influence each other. Option D is not a correct answer, as a business process model is not a technique for modelling the arising themes and how they relate to each other. A business process model is a technique for modelling business processes within an organisation or project at a low level of abstraction. It helps to understand how business processes are performed or delivered in terms of inputs, outputs, activities, tasks, roles, rules, events etc.

The guidance on prior research for business analysis work states that analysts should first study relevant background material to gain an “entry point” into the domain before undertaking deeper investigation. For projects focused on specific processes (such as re-engineering a customer-facing process with excessive handoffs), the documentation explicitly recommends studying procedure manuals and current system documentation to understand what the process is supposed to be and how it is documented. It also recommends studying the organisation chart to understand reporting lines, functional groupings, and where responsibilities and handoffs may occur—particularly important here because the goal is to reduce handoffs and support remote working practices.

Financial statements and annual reports can be useful for strategic or corporate-level analysis, but the scenario is operational and process-focused (re-engineering a process linked to declining customer satisfaction). The most direct “initial analysis” sources, aligned with the prescribed prior-research approach for process-oriented work, are therefore procedure manuals/documentation and organisation charts.

Crucially, the guidance cautions that documentation may become out of date and can reflect “what we thought it ought to have been,” so these sources support orientation and preparation, but they must be followed by proper investigation techniques (e.g., interviews, observation, workshops, and quantitative methods) to confirm what actually happens in practice.

CATWOE is a technique for exploring stakeholder business perspectives by identifying six elements: Customer, Actor, Transformation, Worldview, Owner and Environment. It helps to understand how different stakeholders perceive a business situation or problem and what they expect from a solution. Therefore, option D is the correct answer, as environment is the element that cannot be identified from this scenario. Environment is the element that describes the external factors or constraints that affect a stakeholder’s perspective or limit their options. It helps to explain what factors or constraints are beyond the stakeholder’s control or influence. There is no information in this scenario that indicates what external factors or constraints affect Maria and Nelly’s perspective or limit their options. Option A is not a correct answer, as transformation is the element that can be identified from this scenario. Transformation is the element that describes what changes or processes take place in a business situation or problem or its solution. It helps to identify what inputs are converted into outputs in a business situation or problem or its solution. An example of transformation in this scenario is sourcing jewellery products from an overseas manufacturer and marketing them in luxury presentation boxes made by local craftsmen. Option B is not a correct answer, as actor is the element that can be identified from this scenario. Actor is the element that describes who carries out or performs a business situation or problem or its solution. It helps to identify who are responsible for implementing or delivering a business situation or problem or its solution. An example of actor in this scenario is Darren, who makes up the boxes and keeps the stockroom full. Option C is not a correct answer, as owner is the element that can be identified from this scenario. Owner is the element that describes who has the authority or power to start or stop a business situation or problem or its solution. It helps to identify who are the decision makers or influencers of a business situation or problem or its solution. An example of owner in this scenario is Maria and Nelly, who own the jewellery shop and are considering whether to renew the lease.

A business case is a formal written proposal that details the costs and benefits of a proposed business change or solution. It helps to justify and secure the approval and funding for a proposed business change or solution. Costs and benefits can be classified into two types: tangible and intangible. Therefore, option D is the correct answer, as it identifies which categories of costs and benefits are described in this extract respectively. Intangible costs are costs that have no physical existence and cannot be measured or quantified easily by human senses. Examples of intangible costs are reputation, image, morale etc. An example of intangible costs in this extract is significant investment in terms of software licenses and annual maintenance fees, which will not be negotiable until year four of the proposal, as it has no physical existence and cannot be measured or quantified easily by human senses. Tangible benefits are benefits that have physical existence and can be measured or quantified easily by human senses. Examples of tangible benefits are revenue, profit, market share etc. An example of tangible benefits in this extract is improved management information, in addition to the boost it will give to our image with our established customers, as it has physical existence and can be measured or quantified easily by human senses. Option A is not a correct answer, as it does not identify which categories of costs and benefits are described in this extract respectively. Tangible costs are costs that have physical existence and can be measured or quantified easily by human senses. Examples of tangible costs are equipment, materials, labour etc. There is no example of tangible costs in this extract. Intangible benefits are benefits that have no physical existence and cannot be measured or quantified easily by human senses. Examples of intangible benefits are satisfaction, loyalty, quality etc. There is no example of intangible benefits in this extract (although image could be considered as an intangible benefit). Option B is not a correct answer, as it does not identify which categories of costs and benefits are described in this extract respectively. Tangible benefits are benefits that have physical existence and can be measured or quantified easily by human senses. Examples of tangible benefits are revenue, profit, market share etc. An example of tangible benefits in this extract is improved management information, in addition to the boost it will give to our image with our established customers, as it has physical existence and can be measured or quantified easily by human senses. Intangible costs are costs that have no physical existence and cannot be measured or quantified easily by human senses. Examples of intangible costs are reputation, image, morale etc. An example of intangible costs in this extract is significant investment in terms of software licenses and annual maintenance fees, which will not be negotiable until year four of the proposal, as it has no physical existence and cannot be measured or quantified easily by human senses. Option C is not a correct answer, as it does not identify any category of cost or benefit that has been described in this extract.

Transformation is the element of CATWOE that describes what changes or processes take place in a business situation or problem or its solution. It helps to identify what inputs are converted into outputs in a business situation or problem or its solution. Therefore, option A is the correct answer, as it is the transformation for this worldview. Develop and sell software for mobile phones is the transformation for this worldview, as it describes what changes or processes take place in the business situation or problem or its solution. It identifies what inputs (software development resources) are converted into outputs (software products) in the business situation or problem or its solution. Option B is not a correct answer, as it is not the transformation for this worldview, but an aspect of the output quality. Ensure that software is easy to use is not the transformation for this worldview, but an aspect of the output quality. It describes how the output (software products) should meet the customer needs and expectations, not what changes or processes take place in the business situation or problem or its solution. Option C is not a correct answer, as it is not the transformation for this worldview, but an aspect of the environment. Keep pace with the growing demands of the market is not the transformation for this worldview, but an aspect of the environment. It describes an external factor or constraint that affects the stakeholder’s perspective or limits their options, not what changes or processes take place in the business situation or problem or its solution. Option D is not a correct answer, as it is not the transformation for this worldview, but an aspect of the desired outcome. Increase the amount of software we produce is not the transformation for this worldview, but an aspect of the desired outcome. It describes what the stakeholder wants to achieve from the business situation or problem or its solution, not what changes or processes take place in the business situation or problem or its solution.

The documentation distinguishes clearly between mission/purpose, objectives, strategy, and tactics. A mission statement declares what business the organisation is in and what it is intending to achieve—it is the overarching purpose that provides direction and is meaningful to stakeholders such as employees and customers. In contrast, objectives are specific goals that can be measured, while strategy and tactics describe approaches and detailed means of execution.

Option C is the best “purpose/mission style” statement because it communicates a broad intent and aspiration in plain language that can be understood by both internal and external audiences. It expresses what the organisation aims to be known for and the overall value proposition it wants to deliver, which aligns with the role of a mission in providing clarity and direction.

Option A is a measurable target (an objective) tied to SLA performance, not a purpose statement. Option B describes an internal method/approach (closer to tactics or operational improvement activity) rather than the organisation’s reason for existence. Option D is a specific policy or initiative (sustainability sourcing), which can support purpose, but it is too narrow to represent the overall company mission.

Planning activities are those that must be considered beforehand in order to complete the doing and enabling activities. They are usually related to defining or determining some aspects of the business. In this question, the activities c, d and e are planning activities, as they involve defining the skills sets of the consultants, agreeing on a marketing campaign, and running monthly open days. These activities are necessary to support the primary doing activity of delivering consultancy service. Option D is the correct answer.

The business analysis guidance makes it clear that a business case is not a “one-and-done” document that stops being useful at implementation. Instead, it is revisited at multiple decision gates through the lifecycle, including points after development estimates are known, before deployment, and later during operation when benefits realisation is checked. This directly contradicts statement A, because the business case remains relevant beyond implementation to confirm assumptions and verify whether expected benefits were actually achieved.

Statement B is also incorrect. The guidance explicitly states that the “do nothing / maintain the status quo” option should always be considered and will usually appear in the business case. It may sometimes be rejected due to unacceptable consequences, but it should still be included so decision-makers understand the risks of inaction.

Statement C is correct because the business case should consider both tangible and intangible benefits. The documentation explains that many benefits (for example improved customer satisfaction or staff morale) can be intangible, meaning they cannot be credibly valued in advance. While organisations vary in how they treat intangibles, the framework recognises them as legitimate benefits (with the caution not to overstate them or assign “spurious” values).

A resource audit is a technique for identifying and evaluating the resources that an organisation has or needs to achieve its objectives. It helps to assess the availability and quality of an organisation’s resources, such as human, physical, financial and intangible resources. Therefore, options A, B and C are correct answers, as they should be included in the resource audit for Exquisite Analogue. They describe different types of resources that the organisation has and that contribute to its performance and potential. Option A describes a physical resource, which is a tangible asset that an organisation owns or uses, such as buildings, equipment or materials. Option B describes an intangible resource, which is a non-physical asset that an organisation owns or uses, such as intellectual property, brand or reputation. Option C describes a human resource, which is a person or group that an organisation employs or engages, such as staff, managers or customers. Option D is not a correct answer, as it should not be included in the resource audit for Exquisite Analogue. It describes a threat that affects the organisation externally, not a resource that the organisation has or needs internally. Option E is not a correct answer, as it should not be included in the resource audit for Exquisite Analogue. It describes a factor that affects the organisation externally, not a resource that the organisation has or needs internally.

POPIT is a technique for taking a holistic view when investigating a business situation or problem. It helps to ensure that all aspects and dimensions of a business situation or problem are considered and addressed. POPIT consists of four elements: People, Processes, Organisation and Information and technology. Therefore, options C and D are correct answers, as they are the elements of POPIT that consider these issues respectively. Option C considers issue 1: The suggested changes to the business structure will affect our relationships with suppliers. Organisation is the element that describes how an organisation is structured and governed internally and externally. It helps to identify who are involved in decision making and authority within an organisation and how an organisation relates to its stakeholders outside its boundaries. Issue 1 relates to organisation, as it involves changes to the business structure that will affect how the organisation interacts with its suppliers, who are external stakeholders. Option D considers issue 2: The proposed electronic data sharing with our suppliers will raise legal accessibility issues. Information and technology is the element that describes how information and data are created, stored, accessed, used and communicated within an organisation using technology systems and tools. It helps to identify what information and data are needed and available for an organisation to perform its activities and processes effectively and efficiently using appropriate technology systems and tools. Issue 2 relates to information and technology, as it involves electronic data sharing with suppliers using technology systems that will raise legal accessibility issues regarding information security and privacy. Option A does not consider any issue in this scenario. People is the element that describes who are involved in performing or supporting the activities and processes within an organisation. It helps to identify what skills, knowledge, attitudes and behaviours are required and exhibited by people within an organisation to perform their roles and responsibilities effectively and efficiently. There is no issue in this scenario that relates to people. Option B does not consider any issue in this scenario. Processes is the element that describes what activities and tasks are performed within an organisation to achieve its objectives and outcomes. It helps to identify how activities and tasks are sequenced, coordinated, controlled and measured within an organisation to ensure quality and consistency. There is no issue in this scenario that relates to processes. Option E is not a valid element of POPIT. Procedures is not an element of POPIT, but a term that refers to the detailed steps or instructions for performing a specific activity or task within a process.