Get premium membership and access revision papers, questions with answers as well as video lessons.
Strategic Management Question Paper
Strategic Management
Course:Bachelor Of Commerce
Institution: Kca University question papers
Exam Year:2010
UNIVERSITY EXAMINATIONS: 2009/2010
SECOND YEAR STAGE 3 EXAMINATION FOR THE DEGREE OF
BACHELOR OF COMMERCE
CAM 204: STRATEGIC MANAGEMENT
DATE: APRIL 2010 TIME: 2 HOURS
INSTRUCTIONS: Answer Question ONE and Any other TWO Questions
Credit will be given for the use of practical examples
QUESTION ONE
A CASE STUDY
Outsourcing of Services.
Globalization has brought about the global village phenomenon, where distance and time has
shrunk. Far off countries in different time zones are now village mates in international affairs.
Most MNCs are driven to move international by the need for cheap inputs that can include raw materials, labor and technology. Because of continued upgrading of skills of workers in every country, and the advent if Internet as well as ICT facilities, it is now possible to outsource offshore some of the services and engineering works by firms.
Labor is one of the vital components and resource for most firms, and most of them are usually looking for cheap labor. Modern methods of working and the new technology require new kind of labor and labor skills. When ICT was being introduced, there was skepticism that it would displace labor and that there was going to be redundancies and unemployment. This has not happened. In fact there has been the creation of new jobs requiring new skills and capabilities. Many workers today are getting training in the field of knowledge and there will be knowledge workers than factory and farm workers in the years to come.
Developments in most countries of the world are improving labor skills especially in the service sector. Most countries of South East Asian Nations have high skilled labor that MNCs consider to be cheap. This highly skilled labor is found in China and in India. Most of the ICT firms are looking into these countries for cheap labor. Some engineers from China and India have been trained in San Francisco Silicon Valley and they have gone home and established similar “Silicon” valleys in Shanghai and in Madras or Chenai. It is now possible for MNCs to outsource ICT services form China and India, and other Newly Industrializing Countries.
This idea of looking for cheap highly qualified labor has been termed “labor arbitrage”, which is taking the cost of labor to be the basis for decision-making. It is known that cheap labor has been an old motivator that drove the first MNCs to move international. The renewed focus on the cheap labor as a motivator for moving the location of operations of firms from one country to another, or outsourcing any service from the countries that have cheap labor, is a new phenomenon. Because of advancements in science and technology, especially ICT, it is now possible to access cheap labor in form of outsourcing of their services wherever they may be. China and India are now the leasing countries in outsourcing, but will soon be joined by other newly industrializing countries of South East Asian Nations as well as Brazil, Egypt, South Africa and even Kenya once we lay down our fiber optic lines and undersea cables.
Questions.
i. Briefly elaborate on the factors that influence recruitment and development of employees by MNCs in a host country. [ 8 Marks]
ii. What criteria can firms use to decide which services are to be outsourced, and how do they enter into strategic alliances with other firms? [7 Marks]
iii. Discuss how a Firms analyze external environment before embarking on outsourcing, and
briefly elaborate on any two of these methods. [8 Marks]
iv. Elaborate on the extent of the use of outsourcing strategy in Kenya with practical examples.
[7 Marks]
[Total 30 Marks]
QUESTION TWO
Discuss how value chain approach can be used by firms as an analytical tool to understand their internal structures for better utilization of resources. [20 Marks]
QUESTION THREE
What factors influence competition, and how are competitor profiles prepared and of what value are they to firms? [20 Marks]
QUESTION FOUR
Discuss diversification strategies as used by banks. Give three products as examples of diversification of services by banks. [20 Marks]
QUESTION FIVE
How can a firm analyse socio-cultural trends in a host country and how can such a firm take advantage of the opportunities available? [20 Marks]
More Question Papers
Popular Exams
Return to Question Papers