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Buss 440:Strategic Management Ii Question Paper

Buss 440:Strategic Management Ii

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2011

FACULTY : BUSINESS AND MANAGEMENT STUDIES

DEPARTMENT : BUSINESS ADMINISTRATION

TIME : 2 HOURS

INSTRUCTIONS Answer Question ONE (compulsory) and any Other TWO Questions

Question 1

OPTIONS FOR POSTA

The postal service is one of the oldest network and service firms in the country. The digital era, however, presents enormous challenges and opportunities as well for postal corporation of Kenya.

Technology has so far been a bane rather that a boom to the sector. In fact, some people declared a requiem mass of the institutions when the internet and mobile phone wave gripped the society. A majority now substitute letters with either e-mail, sms or instant messaging.

Social media like facebook and twitter have rendered pen-and-paper letter almost obsolete. The bottom line for PCK borders on a gradual reduction in mail volumes. With over 700 branches country wide, the corporation faces unprecedented dips in revenue as we scale the marvels of digital communication and liberalisation.

Industry experts say that woes of declining profitability, adverse changes in market trends and digital competition will remain part and parcel of the institution in the coming years.

Required:

a) As a strategic management consultant, explain how postal corporation of Kenya can develop a new business model to suit the new digital environment. (10marks)

b) Carry out a SWOT analysis for the postal corporation of Kenya (12marks)

c) What strategic options are open to the postal corporation of Kenya, if it has to survive the onslaught from competition. (8marks)

Question 2

Explain the following product-market growth strategies with appropriate examples.

a) Market penetration (5marks)

b) Product development (5marks)

c) Market development (5marks)

d) Diversification (5marks)

Question 3

a) Describe how a small dairy firm in Kenya can gain a competitive advantage using cost leadership and focus strategy (10marks)

b) Explain the need for internal and external analysis of the firm during the strategic formulation (10marks)

Question 4

a) Retrenchment and strategic alliances are strategic options usually taken by firms. Explain what is involved in the two strategies and conditions under which they are most appropriate (10marks)

b) Discuss the relevance of the BCG matrix model to the Kenyan firm. (10marks)

Question 5

a) Reluctance to change is usually considered the single greatest threat to successful strategy implementation. Explain other factors that may affect strategy implementation (12marks) b) Differentiate between corporate level strategy and business level strategy (8marks)

Buss 440:Strategic Management Ii Question Paper

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