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Strategic Management(Buss 420) Question Paper

Strategic Management(Buss 420)

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2010

TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions

CASE STUDY- GRACIER PRODUCTS EXPANSION STRATEGIES
Gracier products is a local ice cream manufacturers started by Mr. Dipam fifteen years ago. When he started the company Mr. Dipam had set strategies on how to expand the small operation. The company started with four employees. The main challenge was creating room for expansion both locally and in the regional market to take advantage of the common market for East and South Africa Market (COMESA) initiative.
The firm planned to spend over Ksh50 million to introduce new brands of ice-cream, construct modern factory facilities, buy refrigerated vehicles and also increase capacity. Mr. Dipam says that management structure did not favor expansion. “There was no human resource department neither was there organization structure. We expanded and moved towards the production of quality ice-cream and set up quality control department.”
With three leading ice-cream brands, Mio, Dairy light and dairy land the firm is vying for the regional market. The company has opened branches in Tanzania and distributes to Rwanda and Uganda. Locally it has fifteen depots in various parts of the country. The main challenge the firm faces in low supply of raw milk, particularly when there is draught besides the human resource issues.

Question 1
a) Explain how a firm like Gracier Products Company can realize growth using market penetration, product and market development strategies. (9marks)
b) Explain the role of management structure and organization structure in the expansion implementation strategy by Gracier products. (9marks)
c) Discuss the grounds under which Gracier Products Company based their expansion and challenges the company faces. What advice would you suggest for the company. (12marks)

Question 2
a) “A business or institution is not defined by its name, statutes, or articles of incorporation. Its defined by its mission.” Discuss this statement and outline the characterization of a good company’s mission statement (10marks)
b) Differentiate between corporate level strategy and business level strategy (10marks)

Question 3
Strategic management process is vital for small firms just as it is vital for large firms’ success. Explain how small firms can benefit from the strategic management process and the challenges they are likely to face (20marks)

Question 4
a) Reluctance to change is usually considered the single greatest threat to successful strategy implementation. Explain why employees of an organization would resist change and what can be done to counter this resistance (12marks)
b) Differentiate between horizontal and vertical diversification. (8marks)

Question 5
a) Discuss the strategic role of the board of directors of a company (10marks)
b) Explain the role of SWOT analysis in strategy formulation. (10marks)

Strategic Management(Buss 420) Question Paper

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