Analysis

Analyse business problems, issues and situations by:

• using appropriate methods and techniques to make sense
of qualitative and quantitative business information.

• interpreting and unpacking complex issues and situations to their

constituent parts and searching for causes, impact, and
consequences

• distinguishing between factual evidence and opinion or value judgement

• drawing valid inferences and making valid generalisations.

An effective analysis will have sound knowledge and understanding of the key
words in the question. It will have relevant application of the knowledge to the
case study. It will have analytical reasoning i.e. the point will be broken into
components by looking at its impact. It will have a developed analysis by the
showing limitations.
There is no correct structure but an easy structure to remember KAAA:
Knowledge and Understanding
Application
Analysis
Advanced Analysis
* Use phrases like this “will lead to, furthermore, however, because, as a
consequence” to develop the analysis.
Q) Analyse two examples of opportunity cost experienced by Rivelino when
setting up ITS. [8]
1. Opportunity cost is the value of the next best option foregone, due to the
scarcity of resources such as time, and money. Rivelino’s opportunity cost for
investing his savings in ITS is the additional returns or profit he would have
received from investing in expanding one of his existing business, selling herbal
tea and arranging boat tours for tourists. Rivelino put his savings into setting
up ITS with no guarantee of its success, so there was a risk that he would not
receive the capital he invested back and not be rewarded for his enterprise
had
the business failed. The existing businesses were already set up, and therefore
had a lower risk of failing. However, the market for selling herbal teas or
organising tours might have already been saturated, so if Rivelino had
expanded/invested back into the business, there might have been little to no
added profit from the additional investment.
Now you can do the same for the second example of an opportunity cost

Evaluation
Evaluate business evidence, explanation, argument, discussion, and analysis to
make reasoned judgements, present measured conclusions and, where
appropriate, make recommendations for action and implementation.
Recommend requires a justified recommendation.
Evaluate the factors requires a prioritisation of factors.
Discuss requires a balancing of arguments

When asked “Evaluate, Discuss, Assess, Recommend and justify, Do you agree”
you may structure your answer using KAAE. This is the Analysis KAAA followed
up with an Evaluation.
Usually, you have an Evaluation before you have done the analysis. If your
evaluation does not have a solid analysis, you might want to consider changing
the evaluation.
An evaluation statement without a solid and developed analysis is just an
opinion and will not gain any marks.
Knowledge and Understanding
Application
Analysis, Developed
Evaluate
*use connective phrases such as “in my opinion, in the short/long term,
however, this is of crucial importance because, other factors to consider are”
to introduce your evaluation statement after the analysis.