Strategic Management Question Paper
Strategic Management
Course:Bachelor Of Commerce
Institution: Kca University question papers
Exam Year:2010
UNIVERSITY EXAMINATIONS: 2009/2010
SECOND YEAR EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
CAM 204: STRATEGIC MANAGEMENT (Day &Evening)
DATE: AUGUST 2010 TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions
QUESTION ONE
A British multinational corporation manufacturing household appliances would like to establish
operations in Kenya. Preliminary research has shown that the standards of living of people have
increased in the last forty years since independence. As a result consumer patterns of people follow the
existing strata of classes in Kenyan society of the lower class, the middle class and the top rich class. It
also became clear that some of the purchasing behaviour is influenced by their cultural backgrounds
and preference for the latest designs in the market. Apart from consumer patterns, some multinational
corporations that are already operating in Kenya have also taken advantage of favourable Kenyan laws
that encourage firms to invest here.
You have been assigned to advice the Multinational Corporation to formulate appropriate strategy on
the basis of which investment decisions will be based.
Required:
a) Explain how the BPEST framework could be used to analyse consumption of household
appliances and its possible demand.
[10 Marks]
b) Identify and explain the factors that would have attracted the other multinational corporations
already operating in Kenya to set base here?
[10 Marks]
2
c) The firm would like to draw a winning strategic plan for this market. Describe the possible
elements in a strategic plan.
[10 Marks]
QUESTION TWO
Blue Omo is a local company which has been operating in the detergent manufacturing industry of
Kenya for the last 50 years. Many new companies have entered the detergent market posing serious
competition and seriously reducing the market share of Blue Omo. Using relevant examples, explain
how the company can apply generic strategies to overcome competition in the market.
[20 Marks]
QUESTION THREE
One of the leading global banks is considering the option of entering the Kenyan banking industry. The
firm has sought your expert opinion on whether to join the industry or not. Using the Porters
framework, discuss the prevailing industry analysis and advise the firm accordingly.
[20 Marks]
QUESTION FOUR
Using practical examples, discuss the contract manufacturing and joint ventures as alternative
strategies for international market entry.
[20 Marks]
QUESTION FIVE
a) Differentiate between horizontal integration and vertical integration, citing the strategic benefits
of each strategy.
[10 Marks]
b) Nation Media group has a number of Strategic Business Units (SBU). Following an internal
analysis of the firm, it has been noted that some of the SBUs have turned into dogs. The firm
has decided to adopt a strategic stretch in line with its environmental needs. Using the Boston
Consulting Group portfolio analysis approach, advice the group on the best strategic choice.
[10 Marks]
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