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Principles And Practice Of Management Question Paper

Principles And Practice Of Management

Course:Bachelor Of Business Administration (Business Administration)

Exam Year:2010

PRINCIPLES AND PRACTICE OF MANAGEMENT

JUNE 2010 Time Allowed: 3 hours

Answer any FIVE questions. All questions carry equal marks.

QUESTION ONE
GOOD HEALTH LIMITED
Good Health Ltd. is a private company that deals with manufacturing and selling of anti-mosquito treated bed-nets.

The company distributes the nets in and outside Kenya.

The chief executive of Good Health Ltd. has stated that the objective of the company will be “to supply the best possible product to the greatest number of consumers at the lowest possible cost”.
The lowest possible cost will only be achieved by introducing a number of radical changes which will affect employees, shareholders and management. The ultimate goal will be to improve the efficiency of operations.

The holders of this view who include the chief executive are people who joined Good Health Ltd. recently and have not stayed in the organisation for more than three years. This group is small in number but they are quite influential.

The “newcomers” have had extensive private sector business experience where managerial internal controls are strict and well established.

This is in contrast with what has been happening at Good Health Ltd., where there are many loopholes and contradictory systems of control.

Required:
a) Explain the reasons why the chief executive may realise that the interests of customers could conflict with efforts to serve the shareholders. (12 marks)
b) Explain the role of a manager in reducing operational costs in an organisation. (8 marks)
(Total: 20 marks)

QUESTION TWO
a) Outline the components of Total Quality Management (TQM). (10 marks)
b) What benefits would accrue to an organisation that practises Total Quality Management?
(8 marks)
(Total: 20 marks)

QUESTION THREE
a) Compare corporate strategies with marketing strategies for an organisation. (10 marks)
b) A well established organisation wishes to carry out an analysis of its strengths, weaknesses, opportunities and threats (SWOT).The task has been assigned to you.
Explain the procedure you would follow in carrying out the task. (10 marks)
(Total: 20 marks)

QUESTION FOUR
Diversification is important in every dynamic organisation.
a) What circumstances would make it necessary for a company to diversify? (10 marks)
b) Explain the different forms in which the diversification would take. (8 marks)
(Total: 20 marks)

QUESTION FIVE
a) Identify and explain five environmental factors that influence the activities of an organisation. (10 marks)
b) How should a manager respond to the factors identified in (a) above? (10 marks)
(Total: 20 marks)
(Total Marks 100)

Principles And Practice Of Management Question Paper

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