MAF661/640 Strategic Management Final Examination Questions | UiTM

MAF661/640 Question Paper

UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of four (4) questions.
2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.
3. Do not bring any material into the examination room unless permission is given by the invigilator.
4. Please check to make sure that this examination pack consists of:
   i. the Question Paper
   ii. an Answer Booklet – provided by the Faculty
5. Answer ALL questions in English.

QUESTIONS  

QUESTION 1

Ez Mobile Sdn. Bhd. (EMSB) is a newcomer in the smartphone market. As a new player in the industry, EMSB is heavily focusing on establishing its market presence through various marketing initiatives. EMSB’s Chief Executive Officer (CEO) acknowledges that crafting a welldefined strategy is critical for the company to compete effectively in the industry. There is intense competition in the industry, particularly with the presence of established giant companies like Huawen and Samrax. Realising the volatility and complexity of the market, the management team confronts a crucial decision regarding their competitive strategy, either to prioritise cost minimisation to offer relatively lower product prices or to offer customers distinctive and superior products.

Currently, the industry’s maturity stage poses distinctive challenges, requiring a particularly considered strategy for EMSB to navigate the landscape successfully. Both the cost leadership and differentiation strategies have their advantages but also involve certain tradeoffs. In your recent role as the manager of EMSB’s Strategic Development Unit, your primary responsibility is to assist the management team in determining the most appropriate strategy to ensure the company’s resilience in the highly competitive market.

Required: 

a. Ascertain three (3) trade-offs linked to the execution of a differentiation strategy by EMSB, as a newcomer in the smartphone industry. (10 marks)

b. Explain three (3) main characteristics of the current stage of the industry life cycle that may have an impact on EMSB’s market position. ( 10 marks)

                                                                                                                            (Total: 20 marks)

QUESTION 2  

Golden Airlines (GA) has firmly established itself as a leading force in the aviation industry, backed by a rich legacy of exceptional achievements. Nevertheless, Malaysians were recently taken by surprise as the company made a new entry into the in-flight food service sector. This move concludes its 20-year-long strategic partnership with the in-flight caterer, Best Food Services Bhd (BFS). BFS has gained a reputation for providing delightful, top-notch meals for

GA in-flight passengers for the past years. In a recent press conference, the CEO of GA, Tengku Muhammad Iskandar, defended that the decision was made for business sustainability due to the rising costs and commitment to operational efficiency. Industry analysts speculated that the abrupt move might have been triggered by disagreements between GA and BFS over the terms of a proposed new contract.

After the termination of BFS’s contract, GA introduced a new division, GA Kitchen, tasked with providing in-flight meals across all the airline’s routes. As anticipated, the impulsive decision sparked outrage among GA’s customers. Passengers expressed dissatisfaction with the prepacked in-flight meals, citing they were cold, insufficient, and of substandard quality. The management identified these issues to be associated with inexperienced and insufficient staff, a scarcity of ingredients, logistic and coordination issues. The situation prompted critical concerns among the strategic level management, leading them to question the decision to diversify into in-flight meal services, an area they believed was beyond their core competence.

Certain industry analysts recommend that GA maintain its strategic alliance with BFS as a solution for addressing the challenges. They emphasise the importance of thoughtful deliberation by a company before pursuing any diversification strategies.

Required:

a. Explain the two types of diversification strategies that GA has implemented. ( 10 marks)

b. Analyse the three (3) crucial factors that GA needs to consider before venturing into in-flight food meal services. (10 marks)

(Total: 20 marks)

QUESTION 3

Global Tech Innovations (GTI), founded in 2005 by the visionary Alexander, has swiftly established a prominent presence in the highly competitive software development sector. Alexander, an effective leader, exhibited unwavering ambition and entrepreneurship, driving GTI to explore diverse sectors like healthcare, agriculture, and real estate under his astute guidance. A hallmark of Alexander’s leadership was the aggressive pursuit of expansion and demonstrating passion for acquiring new businesses. While this approach initially proved lucrative, the successive acquisitions eventually exposed GTI to heightened financial risks and operational challenges. The strain became evident in the company’s bottom line, as the acquired entities, many of which were struggling, impaired GTI’s performance. This incident not only drained the resources but also diverted focus from the core business operations.

Amidst GTI’s dynamic journey, its internal landscape faced turbulence driven by Alexander’s bold and decentralised decision-making approach. Empowering regional managers with significant authority, Alexander fostered a culture where pivotal decisions were made without corporate scrutiny. While this autonomy stimulated agility, it inadvertently nurtured a highly competitive and disjointed organisational culture. The performance-based reward system further heightened this competitive ethos, contributing to a decline in synergy and collaboration. Furthermore, the challenges posed by overexpansion in business operations and governance lapses have deepened the company’s struggles, adding to the complexities of its operational landscape.

As GTI struggled with challenges in its core business, Alexander contemplated a strategic pivot. His focus shifted towards the thriving food processing industry, with QuickBite Foods (QBF) emerging as a potential acquisition target. Specialising in consumer-friendly products like snacks, beverages, and ready-to-eat meals, QBF appeared as a lucrative opportunity in Alexander’s strategic vision. Recognising the growing consumer demand for convenience foods, he envisioned this move propelling GTI to new heights. However, such a transformative shift demanded a thorough reassessment of GTI’s organisational structure, corporate governance, and leadership strategies to ensure seamless integration with the new business direction.

As GTI embarks on this transformative journey, the success of this strategic pivot will hinge not only on the acquisition itself but also on the ability of leadership to navigate organisational changes effectively, foster collaboration, and align the company towards its new direction. Additionally, a proficient leader must demonstrate the ability to intelligently manage emotions, especially when interacting with employees. This emotional intelligence is integral to fostering a positive workplace environment and nurturing productive relationships within the organisation.

Required:

a. Discuss how the three interdependent leadership activities could contribute to the success of GTI. ( 10 marks)

b. Propose the suitability of organisation structure for GTI with the acquisition of QBF. (10 marks)

c. Evaluate three (3) challenges associated with applying emotional intelligence in leadership within diverse and competitive industry environments. (10 marks)

(Total: 30 marks)

QUESTION 4

Farmer Fresh Bhd (FFB) stands out as a highly successful local dairy company in Malaysia. Since its founding in 2015, with Ali at the helm as the Chief Executive Officer (CEO), FFB has experienced remarkable growth, diversifying its offering to include dairy milk, flavoured milk, plant-based alternatives, and yoghurt-based products. FFB has positioned itself as a pioneer in the industry. Through strategic collaborations with the Ministry of Education and the Ministry of Health, FFB has played a pivotal role in promoting healthy, safe, and hygienic food practices which business concept is a cornerstone of the company’s success.

Guided by Ali’s vision, FFB has not only broadened its operations but also established a vast network with 55 regional stockists, 800 home dealers, and 952 agents, achieving a presence in every state and region of Malaysia. Diverging from the predominant trend of reconstituted and powdered milk in the local market, Ali’s insightful decision to offer milk products without preservatives and artificial colouring caters to consumers seeking both superior tastes and enhanced nutritional value. To sustain and enhance its business competitiveness, FFB is committed to continuously improve its product quality through various innovation initiatives. The company is currently in negotiations to acquire a processing plant and two dairy farms in Australia, anticipating additional benefits such as enhanced quality control, superior raw material standards, and proprietary technology access, thus securing its intellectual property rights.

In its strategic endeavour, FFB is intent on augmenting its market presence through a series of proactive initiatives. These range from penetrating new markets, launching innovative products, ramping up production capacities, and forming strategic alliances to claim a prominent position in the market, outpacing its competitors. In response to the evolving market dynamics and to sustain its competitive edge, Ali is planning the launch of a novel product, FFB Almond Milk. Marketed as a compelling alternative to coconut milk, its lower calorie composition combined with a pleasantly mild, sweet, and nutty taste, makes it a versatile choice for diverse culinary applications.

Recognising the presence of established rivals like Velvet Almond Milk and Green Almond Milk, Ali is fully aware of the need to employ a distinctive approach to ensure FFB Almond Milk’s unique appeal and market presence. Consequently, Ali is directing his efforts toward enhancing the eco-friendliness of the product’s packaging, catering to environmentally conscious consumers. FFB is proactively exploring options to invest in sustainable packaging materials, including recyclable and biodegradable alternatives, to create a unique position in the market.

The team is actively engaged in an extensive market analysis, identifying operational requirements, and undertaking a feasibility study to gauge the product’s market viability. Ali remains aware of the potential hurdles that may arise, prompting him to strategically align the launch of FFB Almond Milk with market demand, ensuring both value and profitability. With a forward-looking approach, he is determined to establish FFB’s position in Malaysia’s rapidly growing almond milk market.

Required:

a. Evaluate three (3) strategic actions undertaken by FFB to remain competitive in the market. (10 marks)

b. Advise three (3) characteristics in the Opportunity Analysis Framework that Ali can employ to ensure the success of the new product. (10 marks)

c. Discuss three (3) significant innovation challenges that FFB may encounter when introducing Almond Milk into the highly competitive market. ( 10 marks)

(Total: 30 marks) 

END OF QUESTION PAPER

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