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Cam 204:Strategic Management Question Paper
Cam 204:Strategic Management
Course:Bachelor Of Commerce
Institution: Kca University question papers
Exam Year:2009
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UNIVERSITY EXAMINATIONS: 2009/2010
SECOND YEAR STAGE 3 EXAMINATION FOR THE DEGREE OF
BACHELOR OF COMMERCE
CAM 204:STRATEGIC MANAGEMENT (SUNDAY)
DATE: DECEMBER 2009 TIME: 2 HOURS
INSTRUCTIONS: Answer Question ONE and Any other TWO Questions
QUESTIONS ONE
A Case Study.
Expansion strategies for ice cream manufacturer
A Kenyan leading ice cream manufacturer, Dairyland Ice-cream, has rolled out its strategic
plan to expand its operations and to increase the range of their products. The company has based its
expansion plans on a steady growth of demand of their range of ice creams, good economic prospects
for Kenya’s economy, and improving business prospects in East Africa in general.
Dairyland Ice-cream decided to expand their operations in Kenya and move on to Uganda and
Tanzania. The firm planned to spend over Kash.60 million to introduce new brands of ice cream into
Kenyan Market as well as expansion into the other two east African countries. The firm planned to
spend more money in the construction of infrastructure, establishment of facilities of factory space,
cold storage facilities and refrigerated vehicles. The firm also planned to assist their main outlets, the
supermarkets to take more products and to assist them in advertising and introducing new brands. The
main outlets of Dairyland Ice ream are the leading supermarkets in Kenya: Uchumi Supermarket,
Nakumart Supermarket, Tusker Mattresses, and Ukwala Supermarket.
Dairyland has also introduced new flavors ranging to 40 different varieties. This was aimed at
increasing both the market and the market share. Dairyland Ice ream faces a stiff competition from
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imported ice ream, especially from South Africa and Great Britain. Dairyland will have to improve
their customer service to win more clients not only in Kenya, but also in the extended East Africa
Community. Dairyland will have to use product differentiation as a strategy to ward off stiff
competition and to maintain their lead in the market.
a) On what grounds did Dairyland Ice ream based their expansion plans? [ 8 Marks ]
b) What other reasons, other than the ones stated, have made the firm contemplate on moving to
the neighboring countries of Uganda and Tanzania? [9 Marks]
c) How can Dairyland Ice ream assist their main outlets, the supermarkets, to increase their sales?
[7 Marks]
d) Why is the firm planning to introduce new brands into the Kenyan market? [6 Marks]
QUESTIONS TWO
The concept of Value Chain Approach help firms understands the connection of all their activities.
Discuss how a manufacturing firm can use his method to differentiate between primary and secondary
activities. [20 Marks]
QUESTIONS THREE
Environmental factors affect business environment. Elaborate on three economic changes that were
introduced in Kenya in the last ten years, and indicate how each one of them has affected strategic
decision in corporations.
[20 Marks]
QUESTIONS FOUR
Managers of subsidiaries of multinational corporations face a lot of cultural challenges in host
countries. Explain how a manager in a developing country reacts to political changes, cultural
diversity, customer preferences and trade union demands. [20 Marks]
QUESTIONS FIVE
In order to increase their capacity in decision making, managers should practice strategic thinking.
Explain the dichotomy of thinking and acting by managers when making strategic decisions, and show
how important it is to synchronize the two. [20 Marks]
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