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Bma 5107/Bcm 4103: Strategic Management Date: 27Th April 2014 Time: 3 Hrs Question Paper
Bma 5107/Bcm 4103: Strategic Management Date: 27Th April 2014 Time: 3 Hrs
Course:Master In Business Administration
Institution: Dedan Kimathi University Of Technology question papers
Exam Year:2014
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DEDAN KIMATHI UNIVERSITY OF TECHNOLOGY UNIVERSITY EXAMINATIONS 2013/2014 EXAMINATION FOR THE DEGREE IN MASTER IN BUSINESS ADMINISTRATION AND MASTER OF SCIENCE IN SUPPLY CHAIN MANAGEMENT
BMA 5107/BCM 4103: STRATEGIC MANAGEMENT DATE: 27TH APRIL 2014 TIME: 3 HRS
INSTRUCTIONS
1. QUESTION ONE IS COMPULSORY
2. THEN ANSWER THREE OTHER QUESTIONS
3. TIME: 3 HOURS
CASE STUDY Get A “Jolt” Out Of Life. QUESTION ONE
Just as Coca-cola and Pepsi were launching their new low-caffeine cola drinks to fire yet another salvo at each other. “jolt” come along and grabbed nearly 5 percent of the giants’ markets. These events took place in 1986, when a health-conscious America was clamoring for low everything
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in their refreshments, yet jolt cola was advertised as having “all the sugar and twice the caffeine” needed to give you a blast with every sip. Johnny Carson and David Letterman put jolt into their punchlines, and health conscious consumer groups boycotted the new drink, asking for federal investigation to see whether caffeine levels were legal. Jolt was founded in the Rochester. New York, by Joseph Rapp and his 27 year-old son as an alternative to the “wimpy-tasting colas” on the market. They used natural cane sugar and loaded their cola drink with caffeine at a level twice as high as either Coke or Pepsi (5.9mg per ounce. Just under the federal limits of 6mg per ounce). The following year, Rapp and son introduced low-calorie alternative with NutraSweet, but with the same caffeine level as the original formula. Although most people believed Jolt would be a short-lived fad, it has flourished. Reaching supermarket shelves and deli coolers. Jolt has national distribution and the upstart entrepreneurs are laughing all the way to the bank. Jolt has less caffeine than regular coffee, yet it has the eye-opening zing to be a substitute. Non-coffee drinking students find jolt an easy way to ge rolling in the morning or to energize for late night studying. Whether a fad or the real thing, Jolt has made it to the big time, competing with the giants. Meanwhile, Coke and Pepsi slug it out for market share, each controlling significant resources in distribution markets, vying for preferential contracts among the leading makers of synthetic sweeteners, and flexing their marketing muscle to gain shelf pace advantages. Both companies have a leverage to negotiate with retailers to prime shelf pace, and both have the purchasing power to control their supply costs. Both also have financial reserves capable of sustaining a cola marketing war. Jolt is viewed like a mosquito that might get swatted if it continues to buzz around the big guys. On the other hand, jolt entrepreneurs are not usually concerned – a little bite here and there in a $20 billion market adds up. REQUIRED
(a) Analyze the case in terms of porter’s model of competitive strategy, especially addressing the threats of new entrants and substitutes (10 Marks)
(b) Describe how the internal environment will affect the business (10 Marks)
(c) Explain four approaches an organization must focus on to reduce competitive risk (6marks)
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(d) Explain how the organization can manage corporate challenges (4marks)
QUESTION TWO
(a) Discuss the porter’s generic competitive strategies. Include your own examples of companies that pursue each of the three strategies (12 Marks)
(b) Explain the following:
(i) Strategic intent (4 Marks)
(ii) Strategic management process (4 Marks)
QUESTION THREE
(a) Clearly enumerate the conditions that could make a company adopt withdrawal, retrenchment or liquidation strategy. (12 Marks)
(b) Discuss the importance of each component of the strategic management in relation to survival and growth of an organization. (8 Marks)
QUESTION FOUR
(a) A scan of the internal and external environment is an important part of strategic planning process. Discuss how the SWOT/TOWS analysis helps the organization. (12 Marks)
(b) You have just concluded strategy formulation exercise for your organization. Discuss the key factors which you considered. (8 Marks)
QUESTION FIVE
(a) Discuss the usefulness of Boston Consulting Group (BCG) Matrix in segmenting.
(12 Marks)
(b) Explain any two models of change management. (8 marks)
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