Stmg 541:Business Policy And Strategic Management Question Paper
Stmg 541:Business Policy And Strategic Management
Course:Master Of Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2010
FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 3 HOURS
INSTRUCTIONS Answer Question ONE and any Other THREE Questions
STRATEGY WORKSHOPS AT KENGEN POWER GENERATION
The managing director of KENGEN, responsible for the running of power stations in Kenya, was concerned that impending deregulation and possible future privatisation would inevitably mean that the business would face a very different future. There would be pressure to reduce market share as well as costs, and the business could find itself in a competitive situation for the first time in its history. It was necessary to examine the future strategy of the business and he decided to do this through a series of strategy workshops involving different levels in the organization.
Top team workshop
The process began with a two-day top team workshop which addressed a series of questions: What might be the key macro-environmental forces to affect the business in the next five years? Deregulation certainly but that could take different forms. New technologies and raw material costs were also identified as major unknowns that could have significant impact. What form might future competition take? This was less likely to be local and more likely to be from the entry of power generators from other East African Union countries. So what might the possible future scenarios be? What competitive advantage might the business have over possible new entrants and what strategic capabilities could these build on? Given the different types of power stations KENGEN had in Kenya, an advantage it should have was flexibility in its offering to the market compared with potential competitors. What were the strategic options to compete in a deregulated environment? The strategy would have to change significantly which ever scenario came about and more emphasis would have to be placed on the differential advantages KENGEN had and might further develop.
Workshops with middle managers
The next level of workshops spread the discussion to managers who reported to those in the top team, together with specialists from other functions. These reviewed the deliberations of the top team, going through the same process in order to establish whether they would come to similar conclusions. The managing director confirmed that the process was also about ensuring that they saw the need for change themselves and checking that they would be ‘on board’ with a very different strategy from the past. Two such workshops were held and they did, indeed, endorse the strategy of the top team. They also examined just what a strategy emphasizing flexibility would mean in terms of operational priorities in the various business functions.
Involvement throughout the organization in planning change
There remained the problem of strategic change. Changing from a public sector utility to a competitive strategy of differentiation built on flexibility would require changes in the organization from top to bottom. It was decided that these should be considered by means of workshops to consider the culture change necessary. The aim was to ensure that, not just the physical resources, but the people in the organization and the way they dealt with customers and each other could deliver the flexibility that would be required. Workshops were held at levels varying from senior executives to supervisors in the production units to examine just what a culture of flexibility meant, the changes needed in detail and the priorities for action.
Question 1
Using the above case explain the following:
a) At least four grand strategies KENGEN can use to ensure growth (20marks)
b) How can KENGEN develop its competitive advantage? (5marks)
Question 2
Using your own organization as an example describe how a firm can benefit by the use of the balance score card. (25marks)
Question 3
Using the following framework of analysis, identify and explain how KeMU can build its capacity.
a) The value chain (20marks)
b) Strategic advantage profile (5marks)
Question 4
a) What do you mean by strategic mapping and when is it necessary? (10marks)
b) “Strategic control is a Panacea to all organizations problems” Discuss. (15marks)
Question 5
As a strategic management consultant, the Equity Bank comes to you for assistance. They require you to train the top executives on how to employ strategic management principles and ideas. Prepare a training template clearly depicting the critical tasks of strategic management process. (25marks)
Question 6
a) Change in organizations is always resisted. With this in mind explain how you would introduce change strategically to minimize resistance. Use any model. (15marks)
b) “Strategy is the means to an end” Discuss (10marks)
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