Final-Term Exam (Take-Home) Fall– 2020

Department of Business Administration

Name: Muhammad Hassan Reg # 18455

Subject:Fundamentals of Management Submission Day: Saturday

Instructors: Areeba Iqbal/ Bushra Aamir / Dr. Sajjad
Submission Date: 30th January 2021
Program: BBA-H Max. Marks: 40

Please follow the instructions carefully:

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examine, explain, modify or develop concepts discussed in class.
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12. Answer all of the questions in bullet points.

Question No: 1 Marks: 15

A Simple Strategy at Imtiaz Supermarket

Imtiaz Super Market was established in 1955, and started as a small superstore in Karachi.
Warehouse shopping model was adopted by Imtiaz , when it opened its first store in 1955. 65
years later, Imtiaz is one of the nation's top retailers and has the nation's largest chain of
supermarkets in Pakistan. It operates in Sindh and Punjab with 11 stores across these provinces,
while generating over Rs.1000 billion in annual revenues. In addition to demonstrating steady
growth throughout its history, the company consistently performs better than competitors. For
instance, Imtiaz's sales per square foot are nearly 70 percent higher than their closest competitor,
Metro Cash & Carry Pakistan. So how has Imtiaz achieved this level of success? Experts agree
that Imtiaz's simple strategy has allowed the company to persist, even in challenging times. In
fact, according to some business analysts, Imtiaz has one of the best business models in the retail
industry of Pakistan. Imtiaz supermarket’s mission statement states, “We will make our
unmatched services available to all major cities of Pakistan and beyond. We will strive for
continuous improvement in our processes, services and offerings by using the most advanced
tools and technology wherever possible to retain customers for life.” And its vision is “To be
recognized as the best value provider ever”
The company's strategies that makes it different from competitors is to treat employees well,
increase the number of items it sells, and keep markups low. Imtiaz clearly values its employees.
The company pays its human resource on average 20 percent higher than competitors and offers
health care insurance to all employees who work more than 40 hours per week. The company
also promotes employees from within, with 80 percent of their store managers and many of their
company executives having started out as stock clerks or cashiers. These efforts have helped
build a loyal and hard-working employee base that actively contributes to building a profitable
bottom line. Furthermore, low employee turnover helps save the company in recruiting and
training expenses. The company's average annual turnover rate is about 5 percent, compared to
the average turnover rate of about 20 percent in the rest of the retail industry, Imtiaz also has a
sales strategy that has contributed to its success. They sell a wide variety of brands and, as a
result, they are able to increase sales volume that leads to purchasing discounts. Thus, the
company is able to purchase these brands in significant volumes, which allows them to negotiate
with the product manufacturers for discounts. The company then passes along those savings to
their customers through lower prices. Imtiaz’s prices items at no more than 20% percent above
their purchasing price. This markup strategy assures they are offering the lowest price possible,
which is what draws customers and creates a loyal customer base. Sticking with these simple
strategies has helped Imtiaz build their retail empire. Can the company continue their growth
curve and maintain its market position in the retail industry of Pakistan? There is some
speculation that as consumers build confidence in online shopping, Imtiaz and other brick-and-
mortar retailers will face declining sales due to the competition. Imtiaz has responded to this
threat by expanding the diversity of their inventory, offering deep discounts on high-ticket items
such as makeup, jewelry and electronics. Such strategies help to encourage membership by
 making the company the go-to location for purchases that consumers prefer to make in person.
And while they are there, they can pick up some chocolates at pretty good prices.
Answer the following questions briefly in bullet points:
Questions:
i. According to the mission and vision statements of Imtiaz, which strategy Imitaz is most
likely to apply in the near future? (2)

ii. Identify and briefly explain Porter’s 5 forces for Imtiaz supermarket. (5)

iii. What is Imtiaz’s current competitive strategy? What makes Imtiaz different from its
competitors? (2)

iv. A) Which type of Organizational Structure would work the best at Imtiaz Supermarket? (1)
B) Identify and decide for each of the 6 elements of organizational structure. (5)

(6)

Answer 1a
Based on the stated goals and vision of Imtiaz, it is likely to use the value of leadership as a good
idea for the future. Through Imtiaz's mission and vision we can learn that it is focused on
keeping customers alive and 'recognized as the best value provider'. It shows that it wants to
market its products in such a way that it appeals to consumers and they are happy with the offer
and discount. This concept is used by top companies such as Amazon and Walmart.

Answer 1b
Porter five force model is used to study competitors and identify markets. The resources are:

1. The Power of Argument of Consumers- It determines how easy it is for suppliers to

increase their prices. The more suppliers, the more options there are to choose
from, the lower the expectation. In this case, if the suppliers of different products
available in the supermarket, increase the price of the product, then the cost of the
product will increase. Imtiaz is a leader because of its competitive price as a leader,
which is to provide marketable products at the lowest possible prices. So this will
allow its customers to choose from multiple stores where they will receive
discounts.
 2. Negotiating the strength of the buyer- In this case if the buyer is not ready to pay the
price of the goods then the price should be reduced. But Imtiaz has already become
a very low profile character. So this will lead to loss of business.
3. Threats of new entrants - New entrants are always a threat in the marketplace. They
will be more technologically advanced than the Imtiaz supermarket and offer much
more to the market.
4. Threats of Change- There are many grocery stores and each of them has different
patterns of customer satisfaction. So if one does not see the demand for goods at
Imtiaz supermarket, they will definitely see another exchange for this supermarket.
5. Competitive Rivalry- This helps in learning and identifying the number of
competitors available in the market and how one can outperform them. In this
Imtiaz has a good understanding of his opponents and he knows in which way he is
the best of them.

Answer 1c
The current competition that Imtiaz supermarket uses is price analysis. It is trying to attract
consumers by applying as a very low-cost brand to keep the lowest cost of products to retain its
customers and create a reasonable consumer experience.

Imtiaz supermarket differs from its competitors because:

they treat their employees well by giving them higher salaries than others and providing health
insurance. Giving them information helped build a team of honest and hardworking employees.
Limit number of products- This gives everyone a chance to get similar products
keep low markup- These benefits result in lower costs of products and hence the user interest.

Answer 1d
A) and B) -

1. The best design agency for Imtiaz Supermarket is Group by Design Group. This is a
team that works for a common goal while working on their tasks.
 2. The six areas of operational organization are Special Operations, Office, Civil
Defense, Defense, Intervention and Poverty and Operational Fundamentals.
3. Special Operations- In a group according to the model there are different working
groups. For example, the sales management team, the account management finance
team and the HR staff management team.
4. Office- There are many different offices in the main building such as grocery store,
cosmetics, utensils. Each office is overseen by a different team.
5. Chain of Commands- Commands pass from the highest level of control to the staff.
This is often seen in the Hierarchical Standards.
6. Management Skills- This means distributing material into organizations. The design
team can provide decision-making power to different employees.
7. Centralization and Decentralization- This means that the integration of activities
that are carried out by the working groups is accomplished.
8. Create content- It determines the company policy and guidelines that employees are
required to follow. Although the culture of the k

Question No: 2 Marks: 05

Since managers manage employees, they also have to be concerned about controlling for
employee performance; that is, making sure employees’ work efforts are of the quantity and
quality needed to accomplish organizational goals. How do managers do that through Control
Process? (Word limit: 300 words maximum)

Answer 2
Controlling Employees performances is very important for any organization as success of any
organization depends on its performance. To evaluate employee performance, managers convert
or set out plans in terms of standards to be achieved. These standards are the parameters of the
performance expected from employees. Then the actual performance of employees is compared
to standard performance. It is very important step as only on comparison will the managers come
to know about the actual outcome. After comparison, the reasons for deviation of actual
performance from the standard performance are identified and worked upon. Corrective
measures to ensure the improvement performance in terms of standards performance are taken to
regain the desired course of action. Achieving of organizational goals highly depends on
employee performance both qualitatively and quantitatively.

Question No: 3 Marks: 10

A survey was distributed to a population of 300 targeted participants. Out of 130 respondents, a
sample of 106 participants from the automotive industry was selected based on purposive
sampling. Additionally, three field interviews were conducted with senior officers in the
automotive sector. Survey results were analyzed using Microsoft Excel Statistical Package, while
field interviews were analyzed through coding. The findings indicated that applying MBO in the
automotive industry delivered better results in terms of productivity and efficiency, especially
when supported by investing in technology.

Answer the following questions briefly in bullet points:

Questions: (Word limit: 600 words maximum)
Do you think MBO is an effective tool to increase organizational output? What do
you think are the determinants of MBO?
Do you think MBO is an effective tool to increase organizational output? What do
you think are the determinants of MBO?
Do you think MBO is an effective tool to increase organizational output? What do
you think are the determinants of MBO?
Do you think MBO is an effective tool to increase organizational output? What do
you think are the determinants of MBO?
Do you think MBO is an effective tool to increase organizational output? What do
you think are the determinants of MBO?
i. Do you think MBO is an effective approach to increase organizational output?
ii. What do you think are the determinants of MBO?
iii. As a manager how would you apply this approach in your organization for better outcome?

Answer 3 i
Yes! I think an MBO is very useful in design organizations because it helps to improve your
development organization. Every organization has a goal, and, to achieve that goal, top
management sets goals and objectives that are consistent with the organization as a whole. In
organizations that do not use MBO involvement, most planning and organizational goals set out
to achieve these organizational goals are low-level. Plans and goals are passed from one level of
management to another, and managers are later asked what to do and how they will be
responsible. The MBO Continuation is a discussion on the transition from goals and objectives
from one organizational level to another. A good leader sets specific goals and measures for the
subordinate to the meeting with this subordinate, which deals with achieving the goals and
measures that he or she considers best for necessary or contributing to the success of the project.
Together they create a group of specific goals, a measure of accomplishment, and a timeline that
the subordinate acts on his or her own to accomplish those goals. The subordinate is then held
responsible for achieving the goals. The manager and the representative will have some review
and follow-up discussions, but at the end of the session, the minor supervisor is judged on the
outcome he or she receives complete. He or she may be rewarded for the celebration with a
promotion or salary increase or he / she may be fired or transferred to a job that will provide
training or supervision. However, it will follow the achievement of goals that the wrong person
has made some steps in setting up and making himself successful.

Answer 3 ii.
The following are the determinants of MBO.
 1. The energy moving around the environment in the industry. The environment is not the
same but the same and therefore, a change of it requires a change in the rules and
functions of the economy, ie, the regulations must be adapted. change or otherwise it will
be out of existence soon. M.B.O. Suitable for games that do not interfere but where needs
to be changed to achieve the goal.
2. Changing the business objective from 'benefits to growth and survival' suggests that the
goal can be achieved better if M.B.O. is an internship, which aims at the better use of
resources, people and the organization.
3. The realization of the fact that the desires of the people must be fulfilled or satisfied if the
best is drawn out of them. The M.B.O. monitors the location of organization goals as well
as individual goals.
4. The current assumption is that the assessment of staff against the target and that the
stakeholder is involved is a more reliable and effective assessment, for it leads to
improvements in the work of the person concerned.
5. Developing a strategic business plan, which is associated with top management because it
requires the ability, knowledge, and control to maintain confidentiality. and information,
even MBO Concerned with all levels of management by engaging everyone in the
organization's organizational goals.
6. M.B.O. has gone through many supporting points, such as Maslow's status of needs;
McGregor Research on Depression (The X and Faith Y); and Herzberg's Therapy. These
theories have played a key role in the development of the M.B.O. The idea, since they
know that the desire of managers is usually to satisfy their high demands of the job and
take responsibility Management is to achieve results and want a management of their
work.

Answer 3 iii.
Be a manager I would apply this approach in my organization for better outcome as:

1. Good judgment is a very important skill for managers. By overseeing a team to hold
important meetings, an effective manager should be able to identify difficult
business issues and implement future plans.
2. The level of self-awareness is important for managers, and it is what separates high-
level employees from their peers in the workplace. The principle of cognitive
intelligence requires the self-assessment and self-assessment of your strengths and
weaknesses. By engaging in self-assessment and turning to trusted colleagues to
gain insight into your management practices, you can pave the way for your career
improvement that hones on the area you want to improve, which allows you to
bring out the best in yourself and others.
3. Strong communication is an indication of what a manager has accomplished. Being
in charge of management involves dealing with complex business issues and
ensuring your team has the information and tools needed to accomplish them.
 4. More than ever, set a good cadence for thinking and reviewing your team. In a study
by Harvard Business School Professionals Francesca Gino and Gary Pisano, it was
found that telephone workers who spend 15 minutes thinking about the end of the
working day 23 percentages are better after 10 days than those who do not.

Question No: 4 Marks: 10

How significant are admirable leaders to organizations? If you were to ask the recently-retired
CEO of 3M corporation, Mr. Rehman, he would say extremely important. But he’d also say that
excellent leaders don’t just pop up out of nowhere. A company has to cultivate leaders who have
the skills and abilities to help it survive and thrive. And like a successful baseball team with
strong performance statistics that has a player development plan in place, 3M has its own farm
system. Except its farm system is designed to develop company leaders.
3M’s leadership development program is so effective that it has been one of the “Top 20
Companies for Leadership” in three of the last four years and ranks as one of the top 25
companies for grooming leadership talent according to Hay Consulting Group and Fortune
magazine. What is 3M’s leadership program all about? About 10 years ago, the company’s
former CEO and his top team spent 18 months developing a new leadership model for the
company. After numerous brainstorming sessions and much heated debate, the group finally
agreed on six “leadership attributes” they believed were essential for the company to become
skilled at executing strategy and being accountable. Those six attributes included the ability to
“chart the course; energize and inspire others; demonstrate ethics, integrity, and compliance;
deliver results; raise the bar; and innovate resourcefully.” And under Mr. Rehman’s guidance
and continued under the leadership of newly appointed CEO Indra Kumar, the company is
continuing and reinforcing its pursuit of leadership excellence with these six attributes.
When asked about his views on leadership, Mr. Rehman said he believes leaders differ from
managers. He believes the key to developing leaders is to focus on those things that can be
developed—like strategic thinking. Mr. Rehmanalso believes leaders should not be promoted up
and through the organization too quickly. They need time to experience failures and what it takes
to rebuild.
Finally, when asked about his own leadership style, Mr. Rehman said he believed the best way
for him to succeed as a leader was to surround himself with people who were better than him.
But doing that takes a great deal of emotional self-confidence, an attribute that is vital to being a
great leader. When you have people working for you who are excellent at what they do, you
respect them. When you respect them, you build trust. That type of leadership approach worked
well for Mr. Rehman, as illustrated by 3M’s number 18 ranking on Fortune’s most admired
global companies list for 2012.

Answer the following questions briefly in bullet points:

Questions: (Word limit: 700 words maximum)
i. According to Mr. Rehman, When a leader has people with excellence and knowledge, and
when they (leader and follower) respect and trust each other, then this type of relationship
work well for the organization. Do you agree or disagree explain with examples?
 ii. If you ever become a leader in an organization would you surround yourself with people
who are better than you? Explain your point of view with examples.

Answer 4a

Yes, I agree that a healthy relationship between the leader and follower will work well for the
organization. The very basis of a healthy relationship is the trust and confidence that is exhibited
by the leader in the follower and by the follower in the leader. Without this mutual trust, it would
become extremely difficult to perform routine business activities and take important/critical
decisions that can affect the overall functioning of the organization. In other words, it is important
for the leader to build a clear and transparent work atmosphere so that the
subordinates/followers/employees feel that they are valued and their actions/decisions are taken
into consideration while evaluating their performance.

For instance, the leader can develop and follow an open-door policy under which employees can
communicate both their professional and personal issues without any hesitation and at any point in
time. This step will help the leader in understanding the problems faced by employees and taking
appropriate corrective measures. Timely action on the part of the leader can prevent a minor issue
from becoming a major one that could have otherwise been detrimental to both the employee
performance and organizational objectives. This will further help in establishing a strong bonding
between the leader and followers.

For the success of any organization, it is important that employees at all levels work in harmony
with each other. Too much conflict can adversely affect the individual and team performance and
consequently the overall business in a negative way. A positive relationship between the leader and
the followers/employees can help in reducing the conflict of interest between their objectives as the
overall focus (of the team) shifts to the achievement of organization goals rather than personal
goals. The leader should not let his/her ego/status in the organization affect his/her performance
and the relationship that he/she enjoys with the followers. The leader should treat all the
followers/employees equally without any disparity to ensure that all the business activities get
carried out in the best interests of the organization.

Answer 4b

Yes, I would surely surround myself with people who are better than me. It is because
knowledgeable people can help the leader in his/her own growth as he/she gets the opportunity to
learn new ways of handling things. For instance, a professional (if hired in a team) who has
previous experience of working in a technology-enabled environment may bring important
changes in the form of automation of existing manual processes which can significantly reduce the
errors and time involved in the execution of these processes.

An effective leader has the talent to identify employees who are capable of performing complex
tasks and handle multiple responsibilities at the same time. The leader shouldn't allow his/her
position within the organization to manipulate the hiring process and should treat all prospective
team members with great respect and empathy. As learning is a never-ending process, a leader
should constantly focus on upgrading his/her professional and technical skills. Working with a
team comprising of competitive people can provide additional motivation to the leader to improve
his/her skills provided the competition is taken in the right sense (by the leader).

The leader shouldn't be afraid and feel insecure about the knowledge/skills/talent of the team
members as his/her primary focus should be on the achievement of organizational objectives. It is
important to note that a leader's growth is directly related to the growth of his/her followers.
Educated and professionally talented employees can add great value to the organization provided
their skills are utilized in the right direction by the leader. This will not only help the leader in
deriving exceptional performance from his/her team but also create a sense of confidence and trust
in the team members.