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Strategic Management Ii (Buss 440) Question Paper
Strategic Management Ii (Buss 440)
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2010
TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions
Question 1
Abantu supermarket Ltd started as a retail shop in Nyeri 12 years ago. The owner manager was later joined by his son who had left his job at EAI. He had noticed the potential in the family business and he knew that if he joined his father they could take the business to higher heights. Mr. J. G. Njoroge, the son injected the Kshs. 700,000 that he had received as benefits from EAI and soon the business grew in to a chain of supermarkets.
Today, Abantu Super market has outlets in six Kenyan towns. In 2008, the company’s annual turnover was Kshs240.5 million. The staff establishment is 120. The firm has four functional departments: marketing, Human resources, Finance and operations. The management at Abantu has this year put a stop to further opening of new branches until they complete a thorough appraisal of the company. They intend to evaluate the various internal forces and influences inside Abantu to enable them make informed strategic decisions.
After they came to consult, you have advised them to give critical consideration to several factors:
Required:
Discuss the issues that the management should put into consideration when appraising:
a) Organizational behavior (10 marks)
b) Internal strategic factors (10 marks)
c) Distinctive competences (10 marks)
Question 2
The most widely pursued corporate strategies are those designed to achieve growth.
Required:
a) Discuss five reasons why growth is such an attractive strategy (10 marks)
b) A company can decide to pursue concentric or diversification growth strategies. Discus two concentric strategies (10 marks)
Question 3
Mico (K) agencies have been providing a wide range of services in Kenya. In the last ten years. Their services range from public transport, clearing and forwarding, Courier services, and a range of other logistic services. After witnessing tremendous growth between 2001 and 2007, the company’s fortunes started fading in 2008. The effects of several law suits instituted by clients due to loss or damage of consignments and decided in the clients’ favor has resulted in a drastic fall in their profits. Stiff competition and the bad state of road have worsened the already bad situation. In their wisdom, the management at Amico is thinking about retrenchment.
Required
Discuss the following strategic options and indicate whether the management can adopt them in order to get out of this situation (20marks)
a) Bankruptcy
b) Turn around
Question 4
Amarillo Industries manufactures a range of beauty products, pharmaceuticals and home detergents. . Their Research & Development department has been challenged to continually come up with new innovations for new products and ways to ensure that their current brands do not fade from the market.
Management has however realized that there are product lines that need to be revamped and others that need to be dropped all together.
Required:
a) How can the management at Amarillo industries use the Growth Share Matrix to analyze the portfolio of investments? (10 marks)
b) What are the criticisms leveled against this technique of portfolio analysis? (10 marks)
Question 5
Today many organizations have developed very elaborate strategic plans. They have manuals guiding implementation. It is however a few organizations that can be said to be implementing strategic management. Documentation is easy, but implementation is a challenge. Programs, budgets, procedures and policies are good ingredients of an effective strategic plan and the whole strategic management process.
Required:
Discuss your understanding of the following in relation to the implementation of strategy
a) Programs (10 marks)
b) Procedures (10 marks)
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