UNISA Strategic Management Pilot Examination (May 2007)

Please read the following questions carefully before answering them and note the marks that have been allocated to them. All questions are compulsory. This is a closed book pilot examination so when you are finished please mark them as strictly as you possibly can so that you can gauge your preparedness for the pending end-of-course assessment.
PART 1: FIVE MARK QUESTIONS (TOTAL FOURTY MARKS)

1. Define strategic management and briefly differentiate between a strategy and a

tactic and an objective. 2. Name three advantages and two risks associated with strategic management 3. Differentiate between corporate governance and corporate citizenship. Briefly discuss the link between the two and their relative importance 4. What is the difference between an organizational mission, vision and strategic intent? Name three components of a mission statement 5. What are the characteristics that make resources valuable 6. Discuss the acronym SWOT analysis and the limitations of such analysis 7. List the five environmental factors pertaining to the external, uncontrollable macro environment 8. Name the issues that need to be considered when formulating long-term goals/objectives. Clue the acronym SMARTCCF! PART 2: TEN MARK QUESTIONS (TOTAL FOURTY MARKS) 1. Discuss the elements of Porters Five Forces Model and provide an example of each 2. Discuss the following generic strategies that have been identified by Michael Porter and give one advantages and one pitfall of each: Cost leadership Differentiation Focus Best cost 3. Briefly discuss the following grand strategies and two conditions per grand strategy that makes it appropriate to use such strategy: Market penetration (concentrated) Market development Diversification Integration 4. Differentiate between turnaround, divestiture, liquidation, joint venture and strategic alliance strategies

PART 3: TWENTY MARK QUESTIONS (TOTAL TWENTY MARKS) You have been asked by your manager to discuss the strategic management process at your next management meeting. The organization produces crisps (chips) and has recently launched a new flavour which has been described as a fiery experience that make even a Durbanites ring sting. You have been instructed to cover the following key areas: 1. The environmental analysis (micro, market, industry and macro) and the elements pertaining thereto (8) 2. The importance of setting goals that are SMARTCCF (2) 3. The concept of creating a competitive advantage. You need to explain this to the management team as they do not know the term (2) 4. What growth strategy/ies would be most appropriate in this situation and why? (2) 5. The company is also considering buying its own potato farm to ensure quality raw material. What type of strategy would the organization be pursuing in this instance? (1) 6. The importance of doing a competitor analysis before embarking on the strategy and the components of such analysis (5)

TOTAL MARKS

100