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Marketing Management Question Paper
Marketing Management
Course:Master Of Business Administration
Institution: University Of Nairobi question papers
Exam Year:2007
FACULTY OF COMMERCE
DMA 501: MANAGEMENT
C.A.T
TIME: 1hr 20min
1. CASE:
OZEL COMPANY:BUSINESS ORIENTATION
Ozel Company manufactures industrial component products to a very high standard in the industry.The quality of Os products is reflected in them being engineered to tighter specifications.Whereas competitors maintain product specification to tolerances within a few hundredths of a centimeter,the Oz Co works to tolelances,which demand accuracy within a few thousandths of a centimeter.This increased accuracy,however is obtained with the aid of costly plant and machinery that demands expensive maintenance,In addition,quality control standards have to be very high and scrappage costs are known to be higher than competitors.
Working to such high engineering specifications means the costs of production are substantially higher than those of competitors and the price charged to customers is correspondingly higher.Many companies are prepared to pay higher price because the precision engineered product give more durable services and customers experience fewer problems with the products in use than those produced by competing firms at lower prices.
Recently,however the effects of precision have been felt by all Oz's customers and cost-saving exercises have been implemented by all of them.Nearly all Oz's customers have indicated that unless Oz can reduce its prices to the level of those of the other potential suppliers,they will be forced to take customers to Oz's competitors.
The message clearly indicates that Oz's customers gain sufficient benefits from their more precisely engineered products to warrant paying the premium price.
The courses offered in the learning university includes Business Administration,International Business Administration,psychology and information technology,among others.These courses are offered both at undergraduate and postgraduate level.
In a recent board meeting,one of the members had the following to say;
"We have to do everything possible to increase the students' enrollment in our MBA programme.We cannot sit back and watch this declining trend while other universities are experiencing the opposite.Why should we assume that we are the best when all is not well? Let us try to change our orientation"
In support of this view,another member of the board said;
"It is good that we are now realizing that we are not the best with many universities coming up, and others utilizing the excess capacity that they have
We have to be watchful as these competitors may erode our market share"
Having heard all these sentiment,the chairman wondered where they should start from.He suggested that the board members put their heads together and determine which course of action to take. "Of course we have to start with the strategic plan,which in the first place is non-existent".Retorted one of the directors.
(i) Is the reading university pursuing the production product or the selling concept?(10 marks)
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