BS-Model Paper-1

Question-01

“If organizations want to stay competitive, they need to understand the importance of E-business to successful strategy execution’’ (Thompson and Strickland, 2010) Discuss the strategy shaping characteristics of the E-Business environment as it applies to a company operating in today’s dynamic environment, giving examples to support your answer. (Total 25 marks) Question-02 Discuss the role of Portfolio Analysis in assessing the businesses of a diversified company, using any two models to support your answer. (Total 25 marks) Question-03

You have recently bought a small and dynamic company which specialises in developing organic cosmetic products and fake tan products. For success in this industry, innovation and creativity are important factors, together with providing superior customer service at affordable prices. The company realises that building a capable organisation with highly qualified staff is also a key success factor. One of the key challenges for management is to ensure that all staff is highly motivated. You and the top management team have to devise a strategy for the firm’s future, which includes the need to motivate your staff and get their support for this strategy .

a) Discuss the motivational approaches that the top management team need to address in

order to make their workplace more appealing and spur strategic employee commitment in the strategy execution process. (15 marks)

b) Outline the barriers that might impede successful execution. (10 marks) Question-04

C is planning to set up a dry cleaning and laundry business which will be a new venture for her.

She has identified suitable premises which are located in the commercial centre of S City. This

could be viewed as a high risk strategy since it would be the only business of its type in the

commercial centre. However, C's view is that there is significant potential to provide dry

cleaning and laundry services to customers who commute to the city from where they live and

where dry cleaning and laundry businesses already exist.

C now needs to determine on what basis her new dry cleaning and laundry business could gain

sustainable competitive advantage.

Required: (a) Describe the different ways in which C's dry cleaning and laundry business could seek to gain competitive advantage (b) Explain the factors C should consider when deciding on the basis for her business's competitive strategy.

Answers

Question-01 Discussion of 5 of the following at 3 marks each: (15 marks)

petition

- configure industry and company value chains.

-business, human talent is in short supply.

agement and Customer relationship management & ERP

– Uses of company websites, Uses of EPOS/RFID, Uses of ERP/MRP, Examples of E-bay, Amazon, Google, Aer Lingus, Ryanair, Tesco online.

– Tesco shoppers use the internet to do their shopping online, Tesco has to

ensure that its’ website is quick and user friendly and is able to process the customers’ requirements. Customers order and pay for goods online. This is an example of e-business.

EPOS – Electronic Point of Sale – uses of bar coding on products to identify type and cost of

product but also as a means of inventory control.

RFID – Radio frequency identification – means of tracking and identifying products along the

supply chain. (10 marks)

Question No-02

Discussion of role and uses of Portfolio analysis:

businesses.

widespread use.

weaknesses of an organisation’s various businesses.

objectives.

objective of PA is to help managers construct a balanced portfolio of businesses which will allow the organisation to achieve its objectives. (3 x 4 marks) Examples of models to be explained: BCG matrix, GE 9 cell matrix, PLC Model (2 x 6.5 marks)

Question No-03

a) Discussion of any five points (5 x 3 marks)

e where there is genuine sincerity and mutual respect among all employees

worthwhile

kout facilities – state of the art facilities – Google, Intel

– praise, recognition, flexibility in the workplace, empowerment.

b) Outline any 5 points:

– inflexibility

(Any 5 points x 2 marks)

Question-04

Part a

According to Porter, there are three possible ways through which C could develop her business

to achieve competitive advantage over rival businesses. Firstly, she could decide to compete on

the basis of cost (cost leadership). By offering the laundry and dry cleaning services at

significantly lower prices than her competitors, C could attract price conscious customers.

However, to sustain its advantage C would need to ensure that customers are satisfied with the

quality of service provided in order that they keep returning to her business.

A second option for C would be to offer potential customers something unique that they value in

terms of the services her business could provide that competitors might not easily copy or imitate

(differentiation), such as excellent customer service.

Finally, C could decide to concentrate her business on just a small part of the potential market by

offering a specialised laundry and cleaning service tailored to the needs of a particular market

segment rather than trying to cater for the mass market. This approach to achieving competitive

advantage is called focused differentiation

Requirement (b)

In deciding the basis for her business's competitive strategy, C will need to consider which

strategy best positions her business relative to potential rivals, in the light of the threats and

opportunities posed within the market and also the general environment.

This will involve C analysing the environment in which her business will operate to assess likely

strengths and weaknesses when compared to rival businesses.

Cost leadership may prove a difficult route for C's business due to the potentially high costs

normally associated with operating in a city centre location. However, the location C is

considering for her dry cleaning and laundry business could prove to be its greatest strength of

all despite the fact that its potential customers do not live nearby. C could exploit this by offering

commuters a high quality and convenient service together with a fast turnaround, then price may

not be as crucial a factor. This would use differentiation as the basis of the business's competitive

strategy.

Whilst C's business may be unlikely to compete with dry cleaners located in the commuter towns

in terms of the range and diversity of items cleaned, e.g. curtains and bed linen as well as clothes,

it could focus on business suits and other garments dropped off/picked up by office workers on

their way to and from work. She could even target commercial premises themselves and have a

pick up and drop off service for laundry, which could present a distinct advantage over rival

businesses