MNG4801 Exam Prep-1

●
MNG4801 Preparations: Previous Exam Questions and Answers
Exam - Jan 2011

Question 1:
Question 2:
Question 3:
Question 4:
Question 5:
Question 6:
Exam - Jun 2011

Question 1:
Question 2:
Question 3:
Question 4:
Question 5:
Question 6:
Exam - Jan 2012

Question 1:
Question 2:
Question 3:
Question 4:
Question 5:
Question 6:
Exam - Jun 2012

Question 1:
Question 2:
Question 3:
Question 4:
Question 5:
Question 6:
Exam - Jan 2013

Question 1:
Question 2:
Question 3:
Question 4:
Question 5:
Question 6:
Exam - Jun 2013

Question 1:
Question 2:
Question 3:
Question 4:
Question 5:
Question 6:
Exam - Jan 2014

Question 1:
Question 2:
Question 3:
Question 4:
Question 5:
Question 6:
Exam - Jun 2014

Question 1:
Question 2:
Question 3:
Question 4:
Question 5:
Question 6:
Exam - Jan 2015

Question 1:
Question 2:
Question 3:
Question 4:
Question 5:
Question 6:
Exam - Jun 2015

Question 1:
Question 2:
Question 3:
Question 4:
Question 5:
Question 6:
Exam - Jan/Feb 2016
Question 1:
Question 2:
Exam - Jan 2011

Question 1:
Define the following contemporary strategic management concepts :
1.1. Competitive advantage
1.2. Corporate Governance
1.3. Deliberate Strategy
1.4.Emergent Strategy
1.5. E-V-R Congruence
1.6. Industry life-cycle
1.7. Organisational architecture
1.8. Scenario planning
1.9. Stakeholder engagement
1.10 Wealth Maximisation
Text book reference: Write TB/tutorial reference here if there are any...
1.1 Competitive advantage. (pg 42 SG)

Is a component of strategic competitiveness and refers to the edge that an organization has
over its competitors. Competitive advantage may be achieved when the organization’s
products or services are perceived as having value determined by customer’s acceptance.
Simply put, competitive advantage is the ability of an organization to outperform its rivals.
When the organization implements value creating strategies that other competitors are unable
to duplicate or are too costly to imitate, it has achieved a competitive advantage. An
organization must have resources that are valuable, rare, costly to imitate and
non-substitutable to be competitive advantage.
1.2. Corporate governance. (pg 55 & 56 SG)

It is about the responsible leadership of organisations that is transparent, answerable and
accountable towards the organisations identified stakeholders. Organisations are expected to
be more than just good corporate citizens and should aspire to be sustainable. It is being
concerned with holding the balance between economic and social goals. It is the practice by
which companies are managed and controlled. From this definition, we can deduce that
corporate governance is firstly about the relationship between the board of directors and
shareholders, secondly about aligning the goals of the individuals, society and corporations
and lastly about the internal control systems of an organisation at various levels.
1.3. Deliberate strategy. (pg 18 TB)

These are intended strategies that are fully realised. Intended strategies are envisioned by
top management and are achieved by managers shaping strategies as circumstances dictate,
and as they learn from experience and seek out improvements
1.4. Emergent strategy. (pg 18 TB)

When the pattern realised is not explicitly intended, it is referred to as an emergent strategy. A
pattern of decisions emerging from managers adapting to changing external circumstances.
and the ways in which the intended strategy is interpreted. Unplanned responses to
unforeseen circumstances
1.5. E-V-R congruence:

Strategic Management adapts its strategies to maintain equilibrium between its environment,
values and resources, by understanding the uncertainty, complexity and dynamism of its
external environment (Jansen van Rensburg, Davis & Cronje, 2010: 97).
1.6. Industry Life Cycle. (pg 114 SG, pg 215 TB)

There are four phases in the industry life cycle that any product or industry moves. They are:
1. The development phase: Early adopters will but the product on offer and there will be
few competitors and there could be a temporary monopoly
2. Growth phase: Early followers will begin to purchase the product and competitors start
to enter the market to profit from the growth. Competition is likely to centre on gaining
market share rather than on price. Competitors try to gain some differentiation
advantage.
3. Shake – out – phase: As the growth phase starts to decline, competitors are entering
the market during this phase. Increasing rivalry and resulting lower profitability forces
weaker competitors out of the market. This is the early phase of industry maturity.
4. Maturity: Growth peaks and could start declining. Repeat sales fuel revenues. Growth
is low, so emphasis is on retaining market share. Focus is likely to shift to strategies
focusing on efficiency and low cost production. Competition may turn to price
reduction to achieve volumes. consolidation through mergers and acquisitions may
occur.
5. Decline: Usage starts to drop, competitors drop out and competition shifts to retaining
profitable niche markets.
1.7. Organizational architecture. (pg 452 TB & pg 199 SG)

A collectively agreed and communicated document that in light of the strategic competencies
needed to fulfil stakeholder needs, details the major building blocks of the organisation. It
draws the leadership, organisational structure, resources, organisational culture, strategy and
policies together.
1.8. Scenario planning. (pg 185 TB)

It involves the development of what if plans with regard to a range of possible alternative
futures based on different strategic assumptions. It is an innovative approach to get managers
to be alert to, and to understand the dynamic and complex nature of the external
environment, to think strategically and to generate a range of strategic options that could be
pursued under different circumstances and varying envisaged environmental conditions.
1.9. Stakeholder engagement

Is the process by which an organisation involves people who may be affected by the
decisions it makes or can influence the implementation of its decisions. They may support or
oppose the decisions, be influential in the organization or within the community in which it
operates, holds relevant official positions or be affected in the long term.
1.10. Wealth maximization. (pg 37 SG)

This is one way of measuring strategic survival and creating wealth in the long term for all the
stakeholders of the organisation. It modifies the goal of profit of profit maximization in order to
deal with the complexities of the contemporary business environment, both the external and
the internal environments. It takes a long term view of the success of an organisation, which
is often in conflict with the short term yard stick of the profit maximisation.
Question 2:
2.1 Define Corporate Citizenship and Sustainable development 8

2.2 Identify and explain Risks associated with not following the 'corporate citizen' 7
strategic mindset
2.3 How do you manage stakeholder expectations 5
2.4 How do you measure strategic success 5
2.1. Definition of 'Corporate Citizenship'
Corporate Citizenship means developing mutually beneficial, interactive and trusting

relationships between the companies and its stakeholders through the implementation of the
company’s strategies and operating practices. Being a good corporate citizen means treating
all of a company’s stakeholders and the natural environment with dignity and respect, being
aware of the company’s impacts on stakeholders and working collaboratively with them when
appropriate to achieve mutually desired results.
"Sustainable development is development that meets the needs of the present without
compromising the ability of future generations to meet their own needs. It contains within it
two key concepts:
1. The concept of needs, in particular the essential needs of the world's poor, to which
overriding priority should be given; and
2. The idea of limitations imposed by the state of technology and social organization on
the environment's ability to meet present and future needs."
2.2. Risks faced by people that do not follow the new mind-sets:
If not taken seriously the following areas can be impacted:
1. Reputation management – a bad reputation could affect a company financially. By not
following sustainable development it could stop a company’s operations due to bad
reputation.
2. Risk profile and risk management – Being a corporate citizen reduces environmental
risks.
3. Employee recruitment, motivation, and retention – Graduates are more attracted to
companies that are corporate citizens, this makes it easier to recruit new employees
and also to retain employees.
4. Investor relations and access to capital -
5. Learning and innovations
6. Competitiveness and market positions
7. Operational efficiency
8. Licence to operate
2.3.
Stakeholder management supports an organization's strategic objectives by interpreting and
influencing both the external and internal environments and by creating positive relationships
with stakeholders through the appropriate management of their expectations and agreed
objectives. Stakeholder management is a process and control that must be planned and
guided by underlying principles.
1. Stakeholder management within businesses, organizations, or projects prepares a
strategy utilising information (or intelligence) gathered during the following common
processes:
2. Stakeholder identification - Catalogues interested parties either internal or external to
the organisation or project. A stakeholder map is helpful for identifying the
stakeholders.
3. Stakeholder analysis - Recognises and acknowledges the needs, concerns, wants,
authority, common relationships, and interfaces to stakeholders and aligns this
information within the stakeholder matrix.
4. Stakeholder matrix - Positions stakeholders according to the level of influence, impact,
or enhancement they may provide to the business or its projects. There are many
simple 2x2 models in the literature and a few more sophisticated tools such as the
Stakeholder Circle
5. Stakeholder engagement - Different from stakeholder management in that
engagement does not seek to develop the project/business requirements, delineate
problems, create solutions, or establish roles and responsibilities. It is primarily
focused at getting to know and understand each other at the executive level.
Engagement is the opportunity to discuss and agree on expectations of
communication and, primarily, to agree on a set of values and principles that all
stakeholders will abide by.
6. Communicating information - Expectations are established and agreed to for the
manner in which communications are managed between stakeholders - who receives
communications, when, how, and to what level of detail. Protocols may be
established, including security and c onfidentiality classifications.
2.4.
The way in which strategic success is measured. (pg 36 SG) (5)
There’s various way in which strategic success is measured in strategic management. One
way is to see if the organisation is able to earn above - average returns for its investors. This
means that if the market has an average of 10% return on investment, a shareholder that
expects above – average returns would be looking at investing in companies that offer returns
of 20% over the long term. Above – average returns are returns in excess of what the investor
expects from other investments with a similar amount of risk. Success is also determined by
an organisations strategic competitiveness. Strategic competitiveness refers to the extent that
an organisation has created a competitive advantage which other organisations are unable to
duplicate find too costly to imitate. Profit is not the only measure of organisation success.
1. Strategic management is about surviving in a changing environment.
2. To survive continuously, strategic managers need to make decisions that will enable
them to achieve strategic competitiveness and above average returns.
3. Organisations primary objective: wealth maximisation for stakeholders.
4. To survive in the long term.
Question 3:
3.1 Define and explain competitive advantage 10

3.2 Define and explain business and corporate level strategies 10
3.3 Identify how to measure the 'suitability' of a strategy 5
Text book reference: Write TB/tutorial reference here if there are any.. page 230 (P.B),
. pages 36,42 S.G
3.1. The strategic advantage one business entity has over its rival entities within its
competitive industry. Achieving competitive advantage strengthens and positions a business
better within the business environment.
The competitive advantage should elevate the organisation from its competition. This
competitive advantage should fulfil certain criteria:
- Relate to an attribute with value and relevance to the targeted customer segment;
- Be perceived by the customer as a competitive advantage;
- Be sustainable, i.e. not easily imitated by competitors.
An organisation should consider now only its competitors when determining its competitive
advantage, but also its customers and their value proposition.
The opportunity for companies to sustain competitive advantages is determined by their

capabilities. For the purposes of strategy, the key distinction is between distinctive capabilities
and reproducible capabilities:
1. Distinctive capabilities: are those characteristics of a company that cannot be
replicated by competitors, or can be replicated only with great difficulty;
2. Reproducible capabilities: can be bought or created by any company with reasonable
management skills and financial resources.
Only distinctive capabilities can be the basis for sustainable competitive advantage.
Three competitive advantages have been identified. ‘Outsurance has taken what sets it apart
from its short-term insurance competitors and applied the same approach to its life insurance
product’. ‘There is no doubt that there is an underlying cost saving’. ‘As a result of dealing
with clients directly, clients will automatically benefit by not paying broker commissions.
3.2.
1. Corporate strategy:
This strategy is where senior managers decides what business the organisation is in or ought
to be in, they have to strategize the overall purpose and scope of the organisation and have
to determine how value can be added to all business levels and lines. The board of directors
will usually approve strategies that have been orchestrated by senior management heads
(Louw & Venter, 2010).
2. Business level strategy:

This level of strategy focuses on how an organisation competes and attains a competitive
advantages in each area of business, through the products or services developed for markets
and how these products and services creates value for customers (Louw & Venter, 2010).
The difference between corporate and business level strategies is that at business level the
manager of each business area focuses on his area, general managers need to ensure that
lower level strategies are well conceived and consistent (Corporate level looks and the overall
strategy of all business areas). Business level strategies individually need to align to the
corporate level strategy and has to be signed off by the corporate executive and board of
directors (Louw & Venter, 2010).
3.3.
Comment on the suitability of the strategies. (pg 279 TB) (5)
Identify how to measure the 'suitability' of a strategy
Text book Chapter 8
8.5 Evaluating Strategies
8.5.1 Appropriateness
8.5.2 Feasibility
8.5.3 Desirability
8.5.4 Consistency
8.5.5 Validity
8.5.6 Attractiveness to Stakeholders
8.6. Summary
Question 4:
4.1 Explain the concept of value chain analysis 8

4.2 Define the steps of the value chain analysis 6
4.3 Identify the activities in the value chain 11
Michael Porter introduced the value chain analysis concept in his 1985 book ‘ The
Competitive Advantage’ . Porter suggested that activities within an organisation add value to
the service and products that the organisation produces, and all these activities should be run
at optimum level if the organisation is to gain any real competitive advantage. If they are run
efficiently the value obtained should exceed the costs of running them i.e. customers should
return to the organisation and transact freely and willingly. Michael Porter suggested that the
organisation is split into ‘primary activities’ and ‘support activities’.
4.2.
Value Chain Analysis is a three-step process:
1. Activity Analysis: First, you identify the activities you undertake to deliver your product or
service;
2. Value Analysis: Second, for each activity, you think through what you would do to add the
greatest value for your customer; and
3. Evaluation and Planning: Thirdly, you evaluate whether it is worth making changes, and
then plan for action.
4.3.
Primary Activities
Inbound logistics : Refers to goods being obtained from the organisation's suppliers and to be
used for producing the end product.
Operations : Raw materials and goods are manufactured into the final product. Value is
added to the product at this stage as it moves through the production line.
Outbound logistics : Once the products have been manufactured they are ready to be
distributed to distribution centres, wholesalers, retailers or customers. Distribution of finished
goods is known as outbound logistics.
Marketing and Sales: Marketing must make sure that the product is targeted towards the
correct customer group. The marketing mix is used to establish an effective strategy, any
competitive advantage is clearly communicated to the target group through the promotional
mix.
Services: After the product/service has been sold what support services does the organisation
offer customers?. This may come in the form of after sales training, guarantees and
warranties.
With the above activities, any or a combination of them are essential if the firm are to develop
the "competitive advantage" which Porter talks about in his book.
Support Activities
Support activities assist the primary activities in helping the organisation achieve its
competitive advantage. They include:
Procurement: This department must source raw materials for the business and obtain the
best price for doing so. The challenge for procurement is to obtain the best possible quality
available (on the market) for their budget.
Technology development: The use of technology to obtain a competitive advantage is very

important in today’s technologically driven environment.
Technology can be used in many ways including production to reduce cost thus add value,
research and development to develop new products and the internet so customers have 24/7
access to the firm.
Human resource management: The organisation will have to recruit, train and develop the
correct people for the organisation to be successful. Staff will have to be motivated and paid
the ‘market rate’ if they are to stay with the organisation and add value. Within the service
sector such as the airline industry, employees are the competitive advantage as customers
are purchasing a service, which is provided by employees; there isn't a product for the
customer to take away with them.
Firm infrastructure: Every organisations needs to ensure that their finances, legal structure
and management structure work efficiently and helps drive the organisation forward.
Inefficient infrastructures waste resources, could affect the firm's reputation and even leave it
open to fines and sanctions.
Question 5:
5.1 Define how to measure leadership qualities of a company ie capabilities and 15

roles
5.2 How do you measure the fit between culture and strategy alignment 10
5.1.
Capabilities (SG 159)
Louw and Venter (2013) state that strategic leaders should be able to think strategically and
be emotionally intelligent. They describe four capabilities of an effective strategic leader.
According to them, a strategic leader needs to engage in a strategic reasoning process, which
is depicted in figure 12.2 in the prescribed book. They also refer to the open systems model
that provides leaders with the ability to think of organisations in complex and dynamic terms,
incorporating an
understanding of the external environment, the internal context of the organisation and the
interrelationships that constitute the whole. The internal context of the organisation consists of
several interdependent subsystems such as the technical, psychological, structural and
managerial subsystems, as well as a goals and values system. This is the environment where
strategic leaders would use their capabilities to drive the strategy.
Recent studies of successful managers have found that effective leaders consistently have a
high level of emotional intelligence. Findings indicate that emotional intelligence is a good
predictor of life success (Dess et al, 2005:381). Goleman identifies six leadership styles
together with the underlying emotional intelligence competencies. See chapter 12 in Louw
and Venter.
Another capability that Louw and Venter (2013:425) refer to is transformational leadership,
which needs to be exhibited more frequently than transactional leadership if the leader is to
improve the effectiveness of an organisation. It consists of idealised influence, inspirational
motivation, individualised consideration and intellectual stimulation.
The last capability that Louw and Venter (2013:428) refer to is African leadership. The
argument is that if a leader is to be successful, he or she needs to adopt a leadership style
that is congruent with the prevailing values.
Roles:
etting the strategic direction of the
The strategic leader is firstly responsible for s
organisation. This means that the vision needs to be communicated to everyone and people
should buy into it. Being responsible for the strategic direction also deals with the mission
statement
which is the overall purpose of the organisation.
A second task that the strategic leader is responsible for i s driving the strategy. The
strategic leader is ultimately responsible for guiding the organisation and ensuring that the
strategy is implemented successfully. This is done through leadership, resource allocation,
motivation, reward systems, policies, guidelines, systems and the most appropriate
organisational structure.
eveloping social capital. The human resource

Strategic leadership are also responsible for d
management function is of strategic importance because successful strategy implementation
requires different numbers and types of employees with different types of skills, attitudes and
behaviours.
Strategy implementation also requires that strategic leaders build and make use of the core
competencies of the organisation. Core competencies refer to those activities that the
organisation performs really well and may result in a basis of competitive advantage.
Strategic leaders are also responsible for creating organisational alignment. Strategic leaders
need to identify the various elements of an organisation and their interrelationships and
manage them in such a way as to create a strategic fit. They should analyse the
organisational culture to determine whether it is appropriate for the chosen strategy.
Successful strategy implementation requires many changes in the organisation and

its systems and procedures. Strategic leaders must also lead and manage these
changes. This may, however, prove to be a challenging task because of resistance
to change.
5.2.
Question 6:
6.1 Identify the different strategic management stages 18

6.2 Identify key barriers for strategy implementation 7
Key Strategic Planning Strategic Strategic Control

difference Implementation
Process It is the first stage of the It is the second stage of It is the third stage of
strategic management the strategic the strategic
process. management process. management
process.
This is the Thinking stage. This is the Action stage.
This is the Evaluation
Strategic Planning Strategic stage.
processes involves implementation is the
formulating and reviewing process that turns Strategic control is
the companies vision, strategic plans into a the phase in the
mission and long-terms series of actions tasks strategic
goals. The environment and ensures that these management process
is also analysed to tasks are executed in that concentrates on
identify the strengths, such a way that the evaluating the
weaknesses, objectives of the chosen strategy in
opportunities and threats strategic plan are order to verify
to help plan properly for achieved. whether the results
implementation. are produced by the
strategy are in fact
those intended.
Managers ensure
that the
implementation
activities are
performed effectively
and efficiently, and
identify deviations
from the strategic
plan in order to take
corrective action.
Involvement Takes place at Top Takes place at all levels Takes place at all
Management and Senior of management levels of
Management level. including the management in the
involvement of the organisation.
entire workforce. Intended to inform
Top Management of
problems before a
situation becomes
critical.
Key Output Vision, Mission and The strategic plans is Reports and
Long-term goals are turned into a series of Business cases
developed giving the actions tasks to be stating problems or
organisation a direction to executed in such a way potential problems
move in. that the objectives of and suggesting
the strategic plan are remedies on how to
achieved. correct them before
they become critical.
Focus Focuses on effectiveness. Focuses on efficiency. Focus on forecasting

the future for success
by identifying
possible problems.
Key drivers/ The results of the Strategic drivers are Improvement takes
Consideration environmental SWOT implemented using place through control
s analysis. The Vision and leadership, reward and evaluation.
Mission statements are systems, organisational
developed. The structures, allocation of
Long-terms goals are resources.
then derived from the
mission statement; a
generic strategy is then
chosen and a grand
strategy is then
developed.
6.2. Key barriers and reasons associated with unsuccessful strategy

implementation.(7)
9 out of 10 organisations fail to implement planned strategies, and as little as 10% of

the strategies effectively formulated are effectively implemented. Four barriers to
strategy implementation have been identified.
The problems (barriers) of successful strategic implementation are:

Vision Barrier
· Only 5% of the workforce understands the vision and strategy of the organisation.
Often Executives are not clear themselves on exactly what the vision and strategy
of the organisation means. They may have risen in the organisation from
functional areas and do not have experience of strategy management and thus
conveying the strategic plans to the divisions are not effective.Failure to
communicate the vision and strategy may confuse the work force.
· If lower levels of management and the work force do not know or understand the
organisations vision and strategy, they won’t understand their role in the
implementation process.
Management Barrier
· 85% of Management spend less than an hour on strategy. Too often executives
are focused on solving short-term problems and not enough time is spent on
strategy management.
· Too often executives are focused on solving short term problems and not enough
time is spent on strategic management.
· Some executives that were promoted from the functional areas and tent to remain
involved in functional issues.
Resource Barrier
· 60% of organisations do not link budgets to strategy.
· Resource allocation plans or budgets are not linked to the chosen strategies.
· Resources are not allocated in support of the strategy.
People Barrier
· Only 25% of managers have rewards linked to strategy.
· About 75% of managers do not have rewards and incentives linked to strategies.
· Key responsibilities of employees are not clearly defined.
The reasons why strategy implementation fail may include:

a. Inadequate resources.
b. Poorly communicated strategy.
c. Implementation actions are not clearly defined.
d. Unclear accountability for implementation actions and initiatives.
e. The existence of organisational silos and a culture that resists change.
f. Inadequate performance targets.
g. Inadequate rewards.
h. Poor leadership.
Exam - Jun 2011

Question 1:
1.1 Discuss the roles of the different level of strategy found in an organisation 9
1.2 Diagrammatically depict the building blocks of strategic management. Your 9
diagram needs to include the issues in the contemporary business
environment that organisations need to take into consideration when making
strategic choices
1.3 Describe and substantiate a clear business case for responsible corporate 7
behaviour
1.1.
Corporate level strategy
This level relates to the overall purpose and scope of an organisation, and
addresses the question of how value can be added at all business levels and
lines. This level is composed of a board of directors, chief executive officer and
administrative officers. They are responsible for the firm’s performance and for
achieving non-financial goals. Senior management takes general decisions
about what business the organisation is in. Senior managers are normally
responsible for orchestrating corporate strategy, with the input from the key
senior executives who head lines of business.
Business level strategy

This relates to how the organisation competes and attains a competitive
advantage in each area of business. Managers must translate the statements of
direction and intent generated at the corporate level. The general manager in
charge of a line of business is responsible for orchestrating business level
strategy, for ensuring lower level strategies are well conceived and for obtaining
approval by corporate level executives.
Functional level strategy

This includes operational level strategy. Underpins business level strategy such
as marketing, human relations, production etc. Primary role of this strategy is to
support the overall business strategy and competitive approach by performing
strategy-critical activities. This level is composed of managers of product,
geographic and functional areas. The managers develop annual objectives and
short term strategies in areas of production, finance, marketing etc. There
should be a synergy and cooperation between functional areas in an
organisation to achieve a competitive advantage
1.2.
1.3. Good corporate governance makes good business sense. Corporation should
work together with trade unions, non- governmental organisation to promote
the social being of communities and the environment they operate. Private
initiatives that complement government initiatives such as building schools or
rather assisting on public infrastructure building. Companies should operate
and abide within the confines of rules and regulations set for its industry.
By so doing, they help to maintain the confidence of investors both foreign and
domestic and attract long term capital which is particularly important for
developing sustainable responsible corporate behaviour. This will help to
contribute towards social and environmental performance, profits are not the
only factors why company need to survive. Spill off include maintaining
recognisable labour standards, combating bribes, improved business ethics.
Question 2:
2.1 Formulate a vision statement, along with an evaluation of the statement 7

based on the relevant theoretical prescriptions
2.2 Formulate a mission statement, along with an evaluation of the statement 18
based on the relevant theoretical prescriptions
2.1. Vision statement should:

· Reflect the company’s future state, which the company will achieve.
· The essential elements focus on those values to which the organisation is
committed.
· Possible improvement paths, employee development programmes and
measures or indicators of progress should be established for each element of
the vision.
Vision: outlines what the organization wants to be, or how it wants the world in
which it operates to be (an "idealised" view of the world). It is a long-term view
and concentrates on the future. It can be emotive [citation needed] and is a
source of inspiration. For example, a charity working with the poor might have
a vision statement which reads "A World without Poverty."
2.2. Mission: Defines the fundamental purpose of an organization or an

enterprise, succinctly describing why it exists and what it does to achieve its
vision. For example, the charity above might have a mission statement as
"providing jobs for the homeless and unemployed".
A mission statement:
· A Company’s mission statement should not address what an organisation
must do in order to survive but what it has chosen to do in order to thrive.
· It should be positive, visionary and motivating.
5 characteristics for a mission statement:
1. It will contain a formulation of objectives that enables progress towards
them to be measured.
2. It differentiates the company from its competitors.
3. It defines the business that the company wants to be in, not necessarily is
in.
4. It is relevant to all stakeholders in the firm, not just shareholders and
management.
5. It is exiting and expiring.
A mission statement should not only state the obvious
Question 3:
3 Opportunity-driven strategy depends upon an ability to manage, and to 25

manage in, the business environment. Discuss the organisation as an open
system and assess the impact of the different environmental forces on its
performance
Page 421 Louw and Venter 2013.
Question 4:
4.1 Identify and define the corporate strategy selected by Telkom when it 5
decided to sell Telkom Media
4.2 Evaluate the appropriateness of this strategy 15
4.3 Use RBV perspective to recommend possible future strategies 5
4.1.
(Study Guide p 133 – 134, Louw and Venter, p 349 – 352)
Telkom used a Defensive strategy with Divestiture as strategic choice and ‘selling part of the
business” as the strategic action.
4.2.
(Study Guide p 133 – 134, Louw and Venter, p 349 – 352)
A defensive strategy is considered when a business unit no longer meets the objectives set
for it by its stakeholders, or if it produces outputs that are no longer desired or required.
The emphasis of a defensive strategy is on speed of change, rapid cost reduction and or
revenue generation. Defensive strategies are aimed at transforming organisations into more
potent competitors.
There are various different options when opting for a defensive strategy. Telkom selected
Divestiture as an option when they sold Telkom Media and “Selling part of the business” as
the corporate strategic action of choice. There are many reasons to sell part of the business,
but in Telkom’s case they sold Telkom media because the business unit no longer fit with the
strategic direction of Telkom. The new CEO that was appointed had a different vision for
Telkom and Telkom Media did not fit in with this new strategy.
The previous CEO was the champion for Telkom Media and creating a main competitor for
MultiChoice. However he left Telkom and the new CEO did not see Telkom Media as part of
Telkom’s strategic future. Telkom is only focusing on three core business units, (i) Telkom SA
business unit, (ii) Telkom International and (iii) Telkom Data Centre Operations. In doing this,
Telkom can now focus its resources on the business units that are seen as core and part of
the new strategy.
4.3. RBV
(Louw and Venter, p 228)
RBV or Resource-Based-Viewpoint helps organisations to understand why it differs from
competitors and why certain organisations are more successful and profitable than others.
Resources and capabilities are important because it determines the strategic direction of the
organisation and it is the primary source of profit for the organisation. Telkom needs to
determine what its resources and capabilities are to determine what resources and
capabilities can give them a competitive advantage. As possible future strategies Telkom can
consider acquisition of another company that is similar to one of the core business units. This
is a cost effective way of acquiring the resources and capabilities needed to create
competitive advantage. Corporate strategies that focus on acquisitions will include integration
and corporate combination strategies.
Internal creation is the way of creating new capabilities internally. This can be done through
the growth strategies of market and product development and innovation.
Question 5:
5.1 Define and discuss the business level strategies employed by these two 12
organisations
5.2 Identify the competitive advantage on which each of these two 13
organisations is building strategies. Comment on the sustainability of these
competitive advantages
5.1. write answer here...
5.2.
Question 6:
6 Discuss the five drivers of strategy implementation. Your discussion should 25

include a clear definition of the driver and meaningful discussion of the role
of each driver in strategy implementation
(Study guide p 145)

Strategy implementation is one of the steps or stages within the strategic management
process. The strategies that were chosen must now be implemented or put into action. Up to
this stage the process was a conceptual process that involved only a few individuals. The
strategy implementation stage involves the whole organisation and it is an operational
process.
There are six key drivers when implementing a new strategy:
1. Short-term objectives, functional tactics and policies
2. Leadership
3. Organisational culture
4. Reward systems
5. Resources
6. Organisational architecture, systems and processes.
Short-term objectives, functional tactics and policies. (Study Guide page 476)
Short term objectives are measurable outcomes that are achievable, or are intended
to be achieved, in one year or less. They are specific, usually quantitative, results that
operating managers set out to achieve in the immediate future.
Long-term goals are not very detailed and need to be translated into more doable
tasks and activities. The focus is on the short term it should be focused on high level
of detail. The use of short-term goals in strategy implementation is valuable is it
assisting in monitoring the progress made towards achievement of the long-term goal.
It can also be used as checkpoints for operational and strategic control. Well
formulated short-term goals states clearly (i) what should be accomplished, (ii) when it
will be accomplished, (iii) and how its accomplishment will be measured.
Short-term objectives
· Are the basis for allocating resource
· Are a primary mechanism for evaluating managers
· Are the major instrument for monitoring progress towards achieving
long-term goals
· establishes organisational, divisional and departmental priorities
Functional tactics are the key activities that must be performed in each functional area
to provide the organisation’s products and services. These functional tactics translate
the organisation’s grand strategy into action to ensure that the short-term objectives
are attained. Functional tactics identify activities to be undertaken ‘now’ or in the
immediate future. They are more specific than business strategies and help to ensure
that functional managers know what needs to be done and can focus on obtaining
results.
Policies guide and align an organisation’s members in their activities and behaviours
as they relate to the pursuit and achievement of strategies and objectives.
A well-established framework of systems, policies and procedures that are
strategically supportive, is key to driving the core processes of the organisation and in
turn achieves strategic alignment and implementation. Policies establish the way in
which certain tasks should generally be carried out, and place constraints on the
decision-making freedom that managers have. Policies are prescriptive, create
consistency and facilitate the formation of an organisational culture. Policies and
procedures should create a sense of boundaries and should primarily guide and
facilitate effective and efficient behaviour, decision making and practises.
Leadership (Study Guide, page 155 – 156)

Leadership is concerned with the constructive influencing of people to support the
achievement of a common goal.
Leadership is a very important driver of strategy implementation because the
employees require guidance, inspiration an motivation to carry out the activities. To
implement strategy successfully, top management must think strategically, be
emotionally intelligent and be visionary leaders. In South Africa they also should be
able to apply the philosophy of Ubuntu.
The leader must manage the change. Leadership drives strategic change and it is only
through effective strategic leadership that organisations are able to use the strategic
management process successfully.
Organisational Culture (Study Guide, p 167 – 174, Louw and Venter, p 479)
Organisational culture forms part of the organisation’s internal environment. It is
reflected in the way in which people in the organisation perform tasks, set objectives
and administers resources to achieve them. Successful strategy implementation
requires the willing participation, commitment and satisfaction of its people. Beliefs
and ways of behaving constitute the organisation’s culture. Culture is encapsulated in
beliefs, customs and values and it manifests in a number of symbolic ways.
Organisational culture includes language, folklore, heroes, symbols and rituals, dress
code, office layout, etc. It is extremely important for the successful implementation of
strategy that the organisation’s culture is aligned with the strategy. When an
organisation’s culture manifests an alignment between values, ethics and strategy, its
people begin to see their work as a vehicle with which to fulfil their own quests. This
means that the culture can motivate people to achieve exceptional levels of
performance. An effective leader will understand this and mould the culture so that the
organisation’s strategic direction can be pursued and strategies successfully
implemented.
Reward Systems (Study Guide, p181 - 183 , Louw and Venter, p 473)
Reward systems are used by managers to achieve strategic outcomes. It includes
financial and non-financial incentives to retain the commitment and loyalty of
employees and to direct their behaviour towards achievement of the organisation’s
goals. Financial or tangible rewards include bonuses, performance-related pay,
shares and share options and benefits. Non-financial or intangible rewards directly
related to the job itself. It includes ways to improve overall job satisfaction by making
the job more challenging. Strategic manager should ensure that the individuals
involved are enthusiastically committed to implementing the chosen strategy.
Rewards retain the commitment and loyalty of employees and direct their behaviour
towards achievement of the organisation’s gaols. Reward systems play a crucial role
in the successful implementation of a strategy.
Resource allocation (Study Guide, p 192)

Strategic leaders needs to ensure that the resources required for implementation,
including capital equipment, people and finance, are available where and when they
are needed. Managers are allowed certain resources in line with the organisation’s
overall strategy and are expected to use them to generate revenues and profits.
Budgets describe how resources should be allocated and coordinated at the different
levels in the organisation. There are different types of resources, financial, physical,
human, technological and information resources. The strategic leader must allocate
scarce resources optimally to ensure that the strategy is implemented successfully.
There is however seldom enough resources available to support the implementation of
a particular strategy. Establishing what resources are required to implement a
strategy requires strategic leaders to compile a resource plan, as the allocation of
resources to implement a specific strategy has to be budgeted for. Budgeting is the
process by which the goals of an organisation, and the resources to attain those
goals, are quantified and communicated. Budgeting reflects the quantitative allocation
of resources in support of specific strategies.
Organisational architecture, systems and processes (Study Guide p 199)

An organisational structure is the framework within which the strategic process must
operate to achieve the organisation’s outcome. It is the major building block of the
organisation. It draws leadership, the organisational structure, resources,
organisational culture, strategy and policies, together. It is used to indicate how these
key dimensions of the organisation will be aligned to ensure successful strategy
implementation. It is the underlying model of the organisation’s way of doing
business. A suitable organisational structure is necessary to align the leadership,
culture, resources and reward systems in such a way that they contribute to
successful strategy implementation. An organisation relies on its structure to
coordinate its activities and may help the organisation to deliver a “unique mix of
value”. Structural mechanisms include the way in which people interact and interface
in doing their work, the flow of information throughout the organisation and the
coordination and control of essential activities and practices. An organisational
structure provides a formal allocation of work rules, channels for collaborative working,
boundaries of authority and lines of commination. It is a means of allocating power an
responsibility and prescriptive levels of formality and complexity.
Exam - Jan 2012

Question 1:
1.1 Define the term 'sustainable organisation' 3
1.2 Graphically depict the value chain and indicate the social and environmental 16
issues associated with the core business activities. You are not required to
discuss or define any business activity but your diagram should include the
following:
Clearly labeled business activities
Two possible social and environmental issues associated with each activity
1.3 Describe and substantiate a clear business case for responsible corporate 6
behaviour
1.1. Sustainable organisation

Sustainable organisation is an organisation that contributes to sustainable development by
simultaneously delivering social environment and economic benefits(the triple bottom line of
people, planet and profit)Woolworths qualifies as sustainable organisation because firstly they
accept their social responsibility by embedding sustainability in their corporate strategy
Secondly they improve the environment through energy saving ,for instance by using less
electricity and Thirdly they increase profitability for shareholders(through other cost saving
.
1.2.
1.3. Business case for responsible corporate behavior:

● Corporate Social Responsibility (CSR) and sustainability reporting is seen to weaken a
company’s primary role, and so CSR and sustainability activities are viewed as
non-core (Louw & Venter, 2010: 61).
● The business case can be made either on ethical grounds, or by complying with rules
and regulations, for example: JSE regulations, King III etc (Louw & Venter, 2010: 66).
● Organizations use 1.5 times of natural resources without repaying this debt as an
organization would for a loan, so although those organizations benefit financial in the
short-term, it is not sustainable in the long-term (The Gaurdian, 2013).
● Organizations are reluctant to include CSR and Sustainability costs in its costing as it
is difficult to quantify and the organization may lose its competitive advantage to a
competitor which does not include these costs (The Gaurdian, 2013).
● Investor returns are seen as more important to sustainability performance, but
organizations will benefit by embracing business models that benefits society and
deliverables other than financial returns (The Gaurdian, 2013).
● A member of civil society may be annoyed by an action of a company, which a
consumer may not see in wanting the product or service or an investor that wants
returns on its portfolio. Consumers and investors generally do not encourage
behavior that are in the best interests of society (The Gaurdian, 2013).
Question 2:
2.1 Identify and define the tools used to convey the strategic direction 10
2.2 The appropriateness of each statement in terms of content and length 15
2.1.Identify and define the tools used to convert strategic direction. (10)
Strategy direction –good business leaders create a vision ,passion ately own the vision and
restlessly drive it to completion(SLIDE)
In SLIDE tools used to convert strategic direction
● Guides behaviour
● Better performance
● Creates confidence
● Benchmarks for resource allocations
● Inspires employee
● Shape relationship
2.2. The appropriateness of each statement in terms of content and length. (15)
Characteristics of an effectively worded vision statement page 75 study guide
● Graphical-it paints a picture of the kind of company that management is trying to
create and the market position(s) the company is striving to stake out.(When reading
in immediately forms a holistic pictures of where this forward looking company sees
itself)
● Directional –it is looking forward-looking and guides the organisation, describes the
strategic course the strategic course that management has charted and the kinds of
product/market/technology changes that will help the company prepare for future.(
● Focused –it is specific enough to provide mangers with guidance in making decisions
and allocations resources.(do good and strive to the best) it is idealistic, yet still
realistic enough so that people believe it is achievable.
● Flexible-it is not a once-and-for-all-time statement the directional course that
management charts may have to be adjusted as product/market/technology
circumstances change.
● Feasible-it is within the realm of what the company can reasonably expect to achieve
in due course.
● Desirable-it indicates why the directional makes good business sense and is in the
long-term interests of stakeholders including employees.(doing good to others
improves one’s own well-being and self-esteem too.)
● Easy to communicate-it is explainable in five minutes and ideally can be reduced to
simple, memorable slogan.
Netcare ‘s core purpose is helping care for the health humankind and shows strategic intent.
It focuses in the organisational essence of winning and taking care in health of humankind,
their long term goal is from 10 to 20 years for global leadership. It focuses on competitive
actions and operational activities, their long term goals envision a desired leadership position
and it also demonstrated in uncertain terms and in a strong consolidated sentence.
Question 3:
3 Opportunity-driven strategy depends upon an ability to manage, and to 25

manage in, the business environment. Discuss the organisation as an open
system and assess the impact of the different environmental forces on its
performance
write answer here...

Question 4:
4.1 Advise minister Mothekga on an appropriate corporate/grand strategy to 5

follow in order to rectify the current situation in the eastern cape. You
need to explain what the strategy entails from a theoretical perspective
4.2 Provide recommendations to the minister that she should consider to 20
successfully implement the strategy
4.1.
Turnaround strategy:
This strategy is used by organisations that may find themselves or some of their
business units in a vulnerable position and they need to make decisions about
the future of the organisation (Louw & Venter, 2010).
Looking at the case study we can see the urgency for recovery that is needed,
according to Thompson and Martin (2010) organisations use turn around
strategies for a short time horizon and they are designed to yield immediate
results. These strategies involve changes to the overall marketing, repositioning
and refocusing, they are designed to make quick changes to an organisation and
at the same time contribute towards longer-term growth.
The nature of the problems arising in the Eastern Cape indicates that remedial
action is required to save the department of education; corruption,
non-delivery of material and poor management of systems and programmes
shows that immediate action should be taken. Louw and Venter (2010) states
that when the failure, or the decline of an organisation reaches a certain level
the organisation will have no choice but to take remedial action.
Turnaround strategies are spurred by recession, inefficiency and
non-competitiveness (Louw & Venter, 2010).
4.2.
Question 5:
5.1 Critically evaluate any five of the organisational cultural dimensions and 20
provide evidence from the case study to justify your assessment
5.2 Indicate five key considerations in aligning culture with strategy during 5
implementation
5.1.
Member identity
● The degree to which the member identifies with the organisation as opposed to
the job/profession
● Employees should identify with the organisation to ensure successful strategy
implementation.
● For example:
○ Not only does this keep engineers happy and challenged, it is also good
business as approximately half of all new product launches can be
directly attributed to projects that came from 20% time program.
○ They employ more than 12000 employees and have offices around the
world, from Turkey to Telugu, and dozens of languages are spoken by
Google staffers. The result is a team that reflects the global audience
Google serves
Management focus
● The degree to which management are people driven rather than outcomes
driven.
● For example:
○ One of the coolest programs at Google is the 20% of their work time on
projects that interest them.
○ "At google, we know that every employee has something important to
say, and that every employee is integral to our success".
Team emphasis
● The degree to which employees do their jobs in teams rather than as
individuals.
● Emphasis should be on working as teams to draw on the collective experience.
● For example
○ Googlers thrive in small, focused teams and high-energy environments.
○ At lunchtime, almost everyone eats in the office cafe, sitting at whatever
table has an opening and enjoying conversations with Googlers from
different teams.
Units
The degree to which the organisation encourages operating units to act
●
interdependently as opposed to independently.
● For example:
○ As a result , no one hesitates to pose questions directly to Larry or
Sergy (founders of the company) in their weekly all-hands ("TGIF")
meetings -or spike a volleyball across the net at a corporate officer.
○ Googlers sharing cubes, yurts and huddle rooms- and very few solo
offices.
Control
● The degree of control to which the organisation exerts over employees by
means of policies, rules and supervision.
● Controls should allow employees to self direct and make decisions.
● For example:
○ Every employee is a hands-on contributor, and everyone wears several
hats.
○ At google, we know that every employee has something important to
say, and that every employee is integral to our success
(Louw & Venter, 2010: 513)
5.2.
Cultures that facilitates successful strategy implementation have common factors:
● The culture needs to engender a shared identity for employees.
● Rewarding desired outcomes.
● Legitimise the role of management in the organisation.
● Culture indicates how things are done.
● New employees should fit into the organisatonal culture.
Ethics and strong values is important in the way business is conducted
Question 6:
6.1 Describe the balance scorecard as a strategic management tool 10

6.2 Explain the role of the balance scorecard in the strategic management 15
process
6.1.
The balanced scorecard is a strategic planning and management system that is used
extensively in business and industry, government, and non-profit organizations
worldwide to align business activities to the vision and strategy of the organization,
improve internal and external communications, and monitor organization performance
against strategic goals.
The balanced scorecard is a strategic management tool that is useful in the guiding,
controlling and challenging an organisation towards realising a shared concept of the
future.
It enables the organisation in achieving an integrated, aligned and balanced focus on
four perspectives that collectively underpin the achievement of the organisational
vision.
The four perspectives are:
Financial perspective:
How do we appear to our stakeholders? This perspective focusses on delivering the
maximum value to stakeholders, which is ultimately the aim of the organisation. This
determines the financial performance of the organisation.
Customer perspective:
How do we appear to our customers? Imminent for survival and growth, is the delivery
of quality goods / services that are satisfactory to the customers’ needs. Indicators
hereof will be customer satisfaction, retention and growth.
Internal business processes:
What must we excel at? This is the identification of internal processes that has to be
focussed on and excelled at to ensure that the organisation reaches its strategic goals
and the expectations of their customers. This will subsequently lead to improvements
in customer and financial outcomes.
Learning and growth perspectives:
How can we continue to improve and create value? This describes how people,
technology and the organisational climate can be combined to support the
organisation’s strategy. This focuses on the root cause of the organisation’s
competitive sustainability.
6.2.
The balanced scorecard offers a balance between financial and non-financial
measures that is used in the development of a strategic framework and a focus for
many critical management processes. It is used to align the organisation’s strategic
direction with its short-term actions.
It can be used in the goal setting process for setting long-term goals, on a
departmental and individual level. As part of the strategic framework it is also used in
the communication of strategy throughout the business, business planning, capital
allocation, strategic initiatives, and feedback and learning.
The balanced scorecard makes use of four processes: clarifying and translating the
vision into strategy; communicating and linking strategic objectives and measures;
planning, setting targets, and aligning strategic initiatives; and enhancing feedback
and learning.
Discussion of the processes:
Clarifying and translating the vision:
This assists management in building consensus around the organisation’s vision and
strategy. Vision statements have to be specific, and not broad and lofty. It should be
set in operational terms expressed as an integrated set of objectives and measures,
agreed upon by senior executives, describing the long-term drivers of success.
Communicating and linking:
This allows management to communicate the strategy to all levels of the organisation
and have it linked to departmental and individual objectives. Departments are usually
evaluated in terms of their performance on a financial basis, with individual incentives
being tied to short-term goals.
Business planning:
This enables the organisation to integrate their business and financial plans. By
having the wide variety of internal employees and consultants’ goals / objectives,
managers can ensure that each person or department receives the needed resources
and allocating them with the correct priority rating. This will assist in ensuring all
initiatives’ goals will coincide with the organisation’s strategic objectives.
Feedback and learning:
This provides the organisation with the tools for strategic learning. Feedback and
review processes based on the balanced scorecard can assist the organisation with
determining short-term results, and evaluate strategy in the light of the recent
performance, by making use of the perspectives of customers, internal business
processes, and learning and growth. This way, the organisation can modify strategies
to reflect “real-time learning”
Ultimately the balanced scorecard has the role of a planning tool, with the aim of
keeping the strategy of the organisation in line with current development, learning and
changes
Exam - Jun 2012
Question 1:
1.1 Comments on the development of strategic management as a management 8
approach
1.2 Comments on the challenges of the contemporary environment 5
1.3 Define the following concepts 12
Emergent Strategies
Corporate Parent
Strategy as a perspective
Consortia
Intra-industry analysis
E-V-R Congruence
1.1. write answer here- Pg 4 - 7 study guide
1.2. Page 8 study guide
1.3. Emergent strategy page 18 textbook

Corporate parent pg 354 textbook organisational head quarters of a diversified group of
companies.
Strategy as perspective pg17 textbook. Organizations way of doing things also called
interpretative experience.
Consortia pg 348 textbook. Are large interlocking relationships between organizations in a
particular industry, also called joint ventures.
Intra-industry analysis pg 119 study guide. Looks at customers and competitors of an
organization.
E-V-R congruence- is the congruence between the external environment, organizations
values and its resources. Pg 227 Study guide.
Question 2:
2.1 Comment on the stakeholder approach to sustainability with reference to the 8

stakeholders mentioned in the case study
2.2 Make recommendations on how to reconcile conflicting claims of 9
stakeholders
2.3 Describe and substantiate why it is important for companies to display 8
responsible corporate behaviour
2.1. Page 80-81 study guide.

2.3. Page 61 study guide, corporate citizenship
Question 3:
3.1 A differentiation between the two most important methods to analyse the 5
internal environment
3.2 A critical review of the RBV approach with reference to the premises on 10
which the RBV approach is based, the categories of resources and the
determinants of resource value
3.3 Recommendations on steps to interpret the organisational profile based on 10
the RBV
3.1 page 93 study guide strengths and weaknesses
3.3. Page 96 study guide.
Question 4:
4.1 Comment on the importance of external environmental analysis and 10

explain how scenario analysis and forecasting contribute to strategic
survival
4.2 Comment on the role of Mango's cost-conscious culture in their strategic 10
management process
4.3 Indicate five key considerations in aligning culture with strategy during 5
implementation
4.1
The external environment is everything outside an organization at the global country and
industry levels that might affect the ability of the organization to attain its goals. If the
organization has a favorable strategic management process, it should also be able to align
organizations resources and capabilities to the ever changing and increasingly competitive
external environment in order to achieve its goals.
The external environment assist in identifying what may pose as a threat or an opportunity in
the organization externally. The organization would consider the factors and forces that are in
the macro environment which will be discussed.
● Political/legal is concerned with the regulations and legal parameters that influence
industries and organizations within those industries. E.g. political stability, exchange
control, labours legislation etc.
● Economic would be anything that may relate to an organization. For instance if the
repo rate increase it would affect the commercial banks regarding their prime rate.
● Environmental/Ecological has got to do with the natural environment. The organization
needs to adapt their manufacturing processes to become more environmentally
friendly. For example air pollution.
● Technological is concerned with variables in the environment that can create
opportunities or threats for organization e.g. product innovations, technology transfer.
● Demographic includes population size, religions urbanization, age, gender distribution.
Scenario analysis and scenario planning concern the medium to long term future and
embrace the possibility of pre-emptily providing foresight regarding possible future change
thus contributing to organizations strategic survival.
4.2. Page 174 study guide.
4.3. Page 171 study guide page 480 textbook
Question 5:
5.1 Identify and discuss Naspers Corporate strategies and comment on its 8
appropriateness with reference to the overall strategic direction of naspers
5.2 Recommend criteria for evaluating strategies 10
5.3 Comment on the Naspers strategy-structure fit 7
5.1. Page 334 textbook
5.2.
This will only occur once the Strategic decision makers have selected potential strategies.
These considerations will assess if the business/corporate strategy will be effective or not.
● Appropriateness (Tools: Swot matrix, decision tree and Scenarios) - Strategy is often
referred to as the sustainability of the strategy. Strategy must be appropriate in context
of organ, internally and externally.
● Feasibility - Organization is capable of carrying out the proposed strategies. This
normally refers to finance and resources available, the ability to meet the industry and
customer demands and whether the strategy can lead and sustain competitive
advantage.
● Desirability - Is concerned with assessing the ability of the strategy to produce results
in either the short term or the longer term in light of the need and priorities of the
organization.
● Consistency (especially with strategic intent) - Assesses whether the strategy option is
in accordance with the strategic intent and objectives of the organization.
● Validity - Is concerned with the calculations and other assumptions on which the
strategy is based, are well grounded and meaningful. These assumptions can be
based on valid and relevant business information. Overlap can occur between validity
and suitability.
● Attractiveness to stakeholders - When evaluating a strategic option to determine its
attractiveness to stakeholders, the organisation needs to determine if the strategy is
appealing to those people whose needs need to be satisfied. Stakeholders include
shareholders, employees, the community, suppliers, customers, and the government
Question 6:
6.1 Elaborate on the requirements for successful strategy implementation 5

6.2 Describe leadership, reward system and resource allocation as drivers of 12
strategy implementation
6.3 Describe the types of strategic control and indicate how it alter the 8
organisation's chosen strategies
6.1.
● The strategy must be translated into guidelines for the daily activities of the
organization’s members.
● The strategy and organization must become one that is the strategy must reflect on
how the firm organizes its activities, the key organizational leaders and the culture of
the organization.
● The company’s managers must put into place steering controls that provide strategic
control and the ability to adjust strategies, commitments and objectives in response to
ever-changing future conditions.
6.2.
● Leadership is an important driver as employees require guidance, inspiration,
instruction and motivation to carry out the activities. The personal qualities and values
of a strategic leader must be up to standard in a way that the leader will manage to
grasp opportunities and overcome threats of the organization. A leader must be able
to think strategically, be emotionally intelligent and have a range of behaviors at their
disposal.
● Reward system is concerned with how the organizations reward its employees and is
important in the implementation of the process, ultimately, the achievements of
strategic outcomes. In the reward system there is financial incentives which consist if
your bonuses, performance related pay, shares and benefits. Non financial incentives
on the other hand are directly related to the job itself. It is concerned with ways to
improve overall job satisfaction by making work more challenging through techniques
of job enrichment and job enlargement and making the job stimulating at the same
time.
● Resource allocation
● When planning the implementation of the chosen strategy, the strategic leader needs
to ensure that the resources required for the implementation-including capital
equipment, people and finance- are available where and they are needed.
● Resource need allocated to different managers, functions and businesses. Managers
are allowed certain resources in line with the Organization’s overall strategy, and are
expected to use them to generate revenues and it is important to note that a change in
strategy leads to a change in resource allocation. In an attempt to implement the
Organization’s chosen strategy successfully, the strategic manager can choose from
the following types of resources:
❖ Financial resources
❖ Physical resources
❖ Human resources
❖ Technological resources
❖ Informational resources
6.3.
● Assumption/premise control - Premise control checks the assumption on which the
choice of a strategy was based is still valid. The assumptions usually deal with the
macro environment, as well as the industry, competitive, operating and internal
environments of an organization. If a premise is no longer valid the strategy may have
to be changed and the organization may have a better chance of changing strategy.
For instance the hike in the repo rate to 6.25 % had major impact on the prime lending
rate by banks which is 9.75%.This will make harder for existing house owners to pay
off the their bonds and will also affect the Estate agents to sell houses at the highest
price.
● Environmental scanning/strategic surveillance - This type of scanning is informal and
may compromise intended or unintended scanning of the environment. Strategic
surveillance provides an ongoing, broad based vigilance in all daily operations that
may result in information relevant to the organizations strategy. For example one may
read an article on News24 that may pose as an opportunity for organization.
● Special alert control - This kind of a control is concerned with organizations strategy
where there is a sudden or unexpected event which may cause turbulence to
organization strategy. An immediate and intense reassessment of the organization’s
strategy and its current strategic situation. In most organizations they have a
contingency plans and a crisis team should an unforeseen event occur which may
pose as a threat to the strategy of an organization. For instance if South Africa were to
have more and more earth quakes, the insurance companies would be affected by
due to structural damage amongst other things.
Exam - Jan 2013
Question 1:
1.1 Differentiate between different strategic management models by explaining 8
what a strategic management model entails and describing four different
strategic management models
1.2 Explain what corporate governance, corporate citizenship and sustainable 5
organisations encompass and the importance of these concepts in strategic
management
1.3 Discuss the management of stakeholder expectations 12
1.1.
(Refer to the SG Pg19)
● A strategic management model is a representation of the strategic decisions that

organisations need to make and the strategic management activities that need to take
place.
● A linear Strategic Management process model works for organisations that have a
single or dominant product and operate in a predictable and stable environment (Fig
1.3 SG, PG 21)
● A linear Strategic management process model in a global environment a more
interactive model that incorporates the global environment and strategy selection for
organisations that have multiple products and business units (Fig 1.4, SG, PG22)
● An interactive strategic management process model involves an organisation being
aware of how strong and successful its strategies are and of the changing
circumstances, it might find itself in. The model illustrates that strategic ideas emerge
through the process of forma planning or as changes in the organisations environment
emerge. (Fig 1.5, SG, PG23).
1.2.
● The ultimate objective of a corporate governance assignment is to achieve the highest
degree of harmony within the organization. A high level of governance will ensure that
the firm performs efficiently in a well-controlled environment, independent of
individuals.
● Corporate governance refers to the system by which corporations are directed and
controlled. The governance structure specifies the distribution of rights and
responsibilities among different participants in the corporation (such as the board of
directors, managers, shareholders, creditors, auditors, regulators, and other
stakeholders) and specifies the rules and procedures for making decisions in
corporate affairs. Governance provides the structure through which corporations set
and pursue their objectives, while reflecting the context of the social, regulatory and
market environment. Governance is a mechanism for monitoring the actions, policies
and decisions of corporations. Governance involves the alignment of interests among
the stakeholders
Definition of 'Corporate Citizenship'

● The extent to which businesses are socially responsible for meeting legal, ethical and
economic responsibilities placed on them by shareholders. The aim is for businesses
to create higher standards of living and quality of life in the communities in which they
operate, while still preserving profitability for stakeholders.
● Corporate citizenship is about companies taking into account their complete impact on
society and the environment, not just their impact on the economy. It is about
businesses assuming responsibilities that go well beyond the scope of simple
commercial relationships.
"Sustainable development is development that meets the needs of the present without
compromising the ability of future generations to meet their own needs. It contains within it
two key concepts:
● The concept of needs, in particular the essential needs of the world's poor, to which
overriding priority should be given; and
● The idea of limitations imposed by the state of technology and social organization on
the environment's ability to meet present and future needs."
1.3.
Stakeholder management supports an organization's strategic objectives by interpreting and
influencing both the external and internal environments and by creating positive relationships
with stakeholders through the appropriate management of their expectations and agreed
objectives. Stakeholder management is a process and control that must be planned and
guided by underlying principles.
Stakeholder management within businesses, organizations, or projects prepares a s trategy

utilising information (or intelligence) gathered during the following common processes:
● Stakeholder identification - Catalogues interested parties either internal or external to
the organisation or project. A stakeholder map is helpful for identifying the
stakeholders.
● Stakeholder analysis - Recognises and acknowledges the needs, concerns, wants,
authority, common relationships, and interfaces to stakeholders and aligns this
information within the stakeholder matrix.
● Stakeholder matrix - Positions stakeholders according to the level of influence, impact,
or enhancement they may provide to the business or its projects. There are many
simple 2x2 models in the literature and a few more sophisticated tools such as the
Stakeholder Circle
● Stakeholder engagement - Different from stakeholder management in that
engagement does not seek to develop the project/business requirements, delineate
problems, create solutions, or establish roles and responsibilities. It is primarily
focused at getting to know and understand each other at the executive level.
Engagement is the opportunity to discuss and agree on expectations of
communication and, primarily, to agree on a set of values and principles that all
stakeholders will abide by.
● Communicating information - Expectations are established and agreed to for the
manner in which communications are managed between stakeholders - who receives
communications, when, how, and to what level of detail. Protocols may be
established, including security and c onfidentiality classifications.
Question 2:
2.1 Discuss the strategic management process within the dynamic business 7
environment
2.2 Discuss the different views, as identified by Mintzberg and levels of strategy 10
2.3 Distinguish between intended, deliberate, emergent and realised strategy 8
2.1.
Strategic management consists of a series of decisions about the organisation’s strategic
direction, strategic planning, and strategic implementation (TB, Chapter 1, section 1.6. PG
33)
Strategic direction is concerned with the direction in which the organisation wants to head
into, the type of organisation it wants to be and how it proposes to achieve this. Sustainability
needs to be integrated into the strategic direction of an organisation. Strategic direction is the
beginning of the direction-setting of the organisation as the organisation needs to answer the
question of “what we want to become”. (TB, chapter 1, section 1.6.1, PG 33)
Strategic Analysis consists of analysing and evaluating the opportunities and threats in the
external environment and strategically linking that to its internal strengths and weaknesses.
This then creates a customer value for the organisation and builds its competitive advantage.
Once the organisation has analysed its external and internal environments, the development
and formulation of strategies needs to take place. First the organisation needs to develop
business level strategies which is referred to as competitive strategies. Corporate level
strategies are based on the decision to move an organisation into more than one line of
business.
Once the organisation has developed and formulated its strategies, these need to be
implemented, which is at the strategy implementation phase. The success of strategy
implementation is dependent on strategic leadership.
2.2.
The word "strategy" has been used implicitly in different ways even if it has traditionally been
defined in only one. Explicit recognition of multiple definitions can help people to manoeuvre
through this difficult field. Mintzberg provides five definitions of strategy:
· Plan
· Ploy
· Pattern
· Position
· Perspective.
Plan
Strategy is a plan - some sort of consciously intended course of action, a guideline (or set of
guidelines) to deal with a situation. By this definition strategies have two essential
characteristics: they are made in advance of the actions to which they apply, and they are
developed consciously and purposefully.
Ploy
As plan, a strategy can be a ploy too, really just a specific manoeuvre intended to outwit an
opponent or competitor.
Pattern
If strategies can be intended (whether as general plans or specific ploys), they can also be
realised. In other words, defining strategy as plan is not sufficient; we also need a definition
that encompasses the resulting behaviour: Strategy is a pattern - specifically, a pattern in a
stream of actions. Strategy is consistency in behaviour, whether or not intended. The
definitions of strategy as plan and pattern can be quite independent of one another: plans
may go unrealised, while patterns may appear without preconception.
Plans are intended strategy, whereas patterns are realised strategy; from this we can
distinguish deliberate strategies, where intentions that existed previously were realised, and
emergent strategies where patterns developed in the absence of intentions, or despite them.
Position
Strategy is a position - specifically a means of locating an organisation in an "environment".
By this definition strategy becomes the mediating force, or "match", between organisation and
environment, that is, between the internal and the external context.
Perspective
Strategy is a perspective - its content consisting not just of a chosen position, but of an
ingrained way of perceiving the world. Strategy in this respect is to the organisation what
personality is to the individual. What is of key importance is that strategy is a perspective
shared by members of an organisation, through their intentions and / or by their actions. In
effect, when we talk of strategy in this context, we are entering the realm of the collective
mind - individuals united by common thinking and / or behaviour
1. Corporate strategy:
This strategy is where senior managers decides what business the organisation is in or ought
to be in, they have to strategise the overall purpose and scope of the organisation and have
to determine how value can be added to all business levels and lines. The board of directors
will usually approve strategies that have been orchestrated by senior management heads
(Louw & Venter, 2010).
2. Business level strategy:

This level of strategy focuses on how a organisation competes and attains a competitive
advantages in each area of business, through the products or services developed for markets
and how these products and services creates value for customers (Louw & Venter, 2010).
The difference between corporate and business level strategies is that at business level the
manager of each business area focuses on his area, general managers need to ensure that
lower level strategies are well conceived and consistent (Corporate level looks and the overall
strategy of all business areas). Business level strategies individually need to align to the
corporate level strategy and has to be signed off by the corporate executive and board of
directors (Louw & Venter, 2010)..
3. Functional level strategy:

Functional level strategy includes operational level strategies. At this level they focus on
business level strategy by implementing business strategies through the functional areas
such as marketing, human relations, production, information systems and finance (Louw &
Venter, 2010). The role of functional strategy is to align to the business strategy, the
functional strategy decisions lies with the functional area head at will be signed off by the
business level general manager. If the business strategy is not clear you might find that
functional strategies are not consistent (Louw & Venter, 2010).
The correlation between the three strategies is a top down approach; First the strategy for the
whole organisation are designed by senior management and the board of directors, then
general management should ensure that their strategies come together and aligns to
decisions made by senior management, lastly strategies at the lowest level (functional areas)
should align to the business and corporate strategy.
2.3.
We primarily distinguish between four strategic patterns:
● Intended Strategy – this is strategy as planned; the strategic roadmap which is

planned and how it looks ahead. “Strategy intended by top management and is
achieved by managers shaping and reshaping strategies as circumstances dictate”
(Louw & Venter, 2010). Intended strategy can therefore be thought of as a plan or an
intended course of action which is deliberate in nature and which is configured to
guide an organisation towards an intended goal. Unfortunately, not everything goes
according to plan, (only 10% - 20% of intended strategies are realised (Louw &
Venter, 2010)), which gives rise to alternate strategic typing.
● Deliberate Strategy – this becomes a reality when intended strategies are fully
realised as they were intended. Minzberg defines deliberate strategy as strategies
“where intentions that existed previously were realised” (Mintzberg, 1987), in other
words, this is a strategy which went according to plan. Strategies which were not
realised are called unrealised or abandoned strategies.
● Emergent Strategy – in this instance unforeseen circumstances may force previously
unplanned responses, which results in a behaviour which was not explicitly intended
(Louw & Venter, 2010). Essentially this could be seen as “responsive strategy” which
adapts to unplanned change resulting from a changed business environment. These
patterns develop in the absence of patterns, or despite them (Mintzberg, 1987).
● Realised Strategy – this is the strategy which evolves from the past and doesn’t
always arise from intended strategy (Louw & Venter, 2010). This is essentially the
strategic outcome which results from either deliberate strategy (previously planned) or
from emergent strategy (previously unplanned and adopted over time). It is the
strategy “which is”.
Question 3:
3.1 Comment on the importance of analysing the environment and identify the 8
SWOT variables from the case study that forms part if the FastJet
environment
3.2 Explain how scenario analysis and forecasting contribute to the strategic 5
survival. Support your explanation with evidence from the case study.
3.3 Identify and discuss the FastJet corporate and business level strategies, as 12
mentioned in the case study, and comment on its appropriateness with
reference to environment-values-resources (EVR) congruence
3.1.
(SG, PG91)
Strategic Analysis is important for an organisation as it needs to identify the factors that will
contribute or prevent it from reaching the desired destination. The organisation’s internal
environment is analysed to identify the weaknesses and strengths, and the external
environment is analysed for opportunities and threats.
In order to align their resources to their strategic goals, an analysis will have to be conducted
by Easyjet. Their strength lies in their already existing business within the aviation industry.
They have the operational capabilities to introduce a low cost carrier without incurring too
much cost.
A significant weakness though, is their inexperienced management team. Their top

management have not worked together before and lack the experience needed for such a
large scale expansion.
Opportunities that exist in the external environment is the potential for low cos air travel within
the African continent due to the difficulties in the land transport. This together with a
burgeoning middle class, would provide an alternative to those who would not have been able
to afford to travel by air previously.
A threat within the environment though, is the current bilateral air transport agreements.
These agreements stipulate that the governments stipulate who is allowed to fly and how
many flights they are allowed to undertake. This presents restrictions in the market place.
In order for Easyjet to be successful, a thorough analysis is required.
3.2.
(SG, PG 106)
Scenario analysis deals with the medium and long term future of the organisation and the
possibility of real and dramatic change. Scenario analysis is therefore important for strategic
planning so that leaders can plan for it.
(TB PG 185) Scenario analysis aids decision makers by providing management with insights
into possible future changes within the environment they operate in. In scenario analysis two
or three plausible alternative scenarios are developed. Three scenarios will have a
pessimistic, neutral or optimistic scenario. Scenario analysis and forecasting as part of
strategic analysis and strategy formulation contribute to maintaining a competitive advantage
in conditions of unpredictability.
3.3.
(TB, PG 335)
Organisations decisions about their corporate strategies from their corporate goals which is
either to grow the business or to defend the business if it finds itself in a vulnerable position.
In the case of Easyjet they are looking to expand their operations within the aviation industry.
They are therefore adopting a growth corporate strategy. Growth strategies are viable when
opportunities exist and the organisation is in a position to exploit. In the case of Easyjet there
exists an opportunity within the African market for a low cost air carrier.
(TB, PG 263) Business Level strategies are also referred to as competitive strategies. It deals
with the products and services that an organisation needs to develop and position in the
market to achieve competitive advantage and long term survival. In order for Easyjet to
remain competitive, they are following a business level strategy that is based on low cost. The
advantage of this strategy is to gain a competitive advantage by maintaining a lower overall
cost base. It combines a low price, low perceived added value and a focus on a price
sensitive market.
Question 4:
4 Discuss strategic leadership and organisational culture as drivers of

strategy implementation: You need the following
4.1 An Explanation of what is meant by strategic leadership and 5
organisational culture, in the context of strategy implementation
4.2 Comments on how a strategic leader can lead change in an organisation 10
4.3 Recommendations on how to align leadership with the chosen strategy 5
4.4 Discussion of any five cultural dimensions 5
4.1.
Organisational Culture: (SG p.167 & 169)
Organisational culture forms part of the organisation’s internal environment. It is reflected in
the way in which people in the organisation perform tasks, set objectives and administer
resources to achieve them. The organisational culture plays a role in the strategic
management process and it can be either a stumbling block or a valuable ally.
When we want to identify or explore an organisation’s culture, we need to look at the way in
which the people in the specific organisation perform tasks, set objectives and administer
resources to achieve them. Organisational culture affects the way people in an organisation
make decisions, think, feel and act in response to opportunities and threats.
Organisational culture finds expression through a variety of manifestations:
language
folklore
heroes
symbols and rituals
dress code
office layout
.
4.2.
P439 - 440tb. In order to survive and be sustainable, organizations need to respond to the
environment in which they exist. To position themselves; leaders need to formulate a course
of action or game plan (strategy). Strategic leaders need not only to change strategy in
response to the environment, but also need to implement strategy successfully. Successful
implementation typically requires changes to elements of the organisation such as,
● Technology : machinery, computers, etc

● Structure: organizational design, policies, etc
● Processes : Tasks, value chain, etc
● People: Knowledge, beliefs, etc
Strategic leaders need to have the ability to be open and accept change; this is referred to
‘adaptive capacity” . Successful implementation of strategy requires leaders to understand
organizational functioning, identify which elements needs to change, and which needs to stay
the same, and know how best to bring about the change.
When thinking and planning change, managers must carefully attention to understanding
● Why change is necessary
● The urgency of change
● The readiness of the organization for change
● What in the organization will need to change
● What the desired future state is
● Cost of change
● Whether money and relevant resources are available
Managers need to consider whether it has the credibility, power and ability to initiate and
manage the change, or whether external change management consultants need to be
brought in. Once management has identified the need for change, it needs to structure a
compelling argument that it can present to others and convince them of the need to change.
4.3.
(p163 learner guide) Strategic managers should not only manage change’, but also change
their leadership style. It is important to realise that certain leadership styles are more
appropriate for specific strategies than others. This means that strategic leaders need to
change their leadership style when there is a change in the strategy. When a growth strategy
is followed, a leader should pay much more attention to managing relationships, inspiring
people and communicating objectives and strategies to them, With this strategy leaders
requires a far more democratic and participative leadership style to ensure that all the
employees buy into the vision set for the organisation.
P436tb. Leaders need to identify the various elements of an organisation and their
interrelationships to create the required alignment.
Conceptual models play a useful role in assisting leaders in making sense of the world and
their organization, diagnosing situations, formulating solutions and taking actions.
Models that assist leaders is the Congruence model (p437.) , Mckinsey 7s(p481tb) and
Higgings 8s (422tb)
4.4.
(p480tb)
● Individuals should identify and align with goals and aspirations of the organization
they work for.
● Different departments in the organisations should act interdependently rather to
independently to achieve desired results
● A fair degree of self-directed and autonomous work should be allowed.
● Risk tolerance should be quite high to facilitate innovation, an important driver of
competitive advantage
● Reward criteria should be aligned with performance and strategic outcomes.
Question 5:
5.1 Explain what the concept 'organisational architecture' entails and discuss 20
structure, systems, processes and capabilities as components in
organisational architecture
5.2 Structure follows strategy - cite arguments for or against this notion 5
5.1.
(P452tb). organisational Architecture is the underlying model of the organisations way of
doing business. It’s a model of the enterprise that can be shared by everyone involved in
management change.
(Additional definitions can be found in table13.1 on page 452 in textbook)
Structure
(P462tb)Organisational structure plays a critical role in the effective implementation of
strategy, and accordingly, in the achievement of the various strategic imperatives. Structure is
the pattern of relationships among positions in the organisation. Structure makes possible the
application of the process of management and creates a framework of order and command
through which activities of the organisation can be planned, organised, directed and
controlled. When designing an organisational structure, the organisation needs to pay
attention to a number of critical organisational areas. Figure 13.2 (p462tb) depicts the
categorisation that helps inform organisational design. Figure 13.2 illustrates that the choice
of strategy plays a critical role in informing the nature of the organisational structure.
Systems
(p473tb) A well-established framework of systems, policies, and procedures that is
strategically supportive is key to driving the core processes of the organisation, and in turn
achieves strategic alignment and implementation.
How organisations reward employees is especially important in the implementation of
processes and ultimately, the achievement of strategic outcomes. It is common practice for
managers to provide financial and non-financial incentives to retain the commitment and
loyalty of employees and to direct their behaviour towards the achievement of the
organisations goal.
Processes
Processes are central to the organisational architecture and are instrumental in delivering the
capabilities. We can categorise processes according to management, operational and support
processes.
● Management process encapsulate (summarize) the basic management tasks of
planning, organising, leading and controlling strategic efforts.
● Operational processes are responsible for the production of an organisations goods
and services through the conversion of inputs into outputs.
● Support processes: Are those functions that provide backing for the core business of
an organisation. They include human resource management, marketing and
information systems.
Capabilities
Capabilities are those deliverables that the organisation provides to stakeholders. These
deliverables are variable. They are also entirely dependent on the nature of the strategy
adopted and the organisation. Larger organisations with more resources are in a better
position to deliver various capabilities. Table13.4 on p460tb compares the capabilities
underlying cost leadership and differentiation strategies to illustrate the role of capabilities
5.2.
(P201learning guide) Strategy should be develop first and only then should the structure be
considered to implement that strategy. This is because a new strategy may create new
demands on resources in terms of new staff, machinery or infrastructure, which could change
the way the organisation operates, making a new structure necessary.
The contingency theory sees structure as a response to the particular contingencies in

designing structure leads to poor performance. Taken to its extreme, the contingency view
treats the organisation as almost passive in the adoption of a structure contingent on its
circumstances.
Question 6:
6 Discuss the balanced scorecard as a strategic management tool 25
6.1.
The balanced scorecard is a strategic planning and management system that is used
extensively in business and industry, government, and non-profit organizations
worldwide to align business activities to the vision and strategy of the organization,
improve internal and external communications, and monitor organization performance
against strategic goals.
The balanced scorecard is a strategic management tool that is useful in the guiding,
controlling and challenging an organisation towards realising a shared concept of the
future.
It enables the organisation in achieving an integrated, aligned and balanced focus on
four perspectives that collectively underpin the achievement of the organisational
vision.
The four perspectives are:
Financial perspective:
How do we appear to our stakeholders? This perspective focusses on delivering the
maximum value to stakeholders, which is ultimately the aim of the organisation. This
determines the financial performance of the organisation.
Customer perspective:
How do we appear to our customers? Imminent for survival and growth, is the delivery
of quality goods / services that are satisfactory to the customers’ needs. Indicators
hereof will be customer satisfaction, retention and growth.
Internal business processes:
What must we excel at? This is the identification of internal processes that has to be
focussed on and excelled at to ensure that the organisation reaches its strategic goals
and the expectations of their customers. This will subsequently lead to improvements
in customer and financial outcomes.
Learning and growth perspectives:
How can we continue to improve and create value? This describes how people,
technology and the organisational climate can be combined to support the
organisation’s strategy. This focuses on the root cause of the organisation’s
competitive sustainability.
The balanced scorecard offers a balance between financial and non-financial

measures that is used in the development of a strategic framework and a focus for
many critical management processes. It is used to align the organisation’s strategic
direction with its short-term actions.
It can be used in the goal setting process for setting long-term goals, on a
departmental and individual level. As part of the strategic framework it is also used in
the communication of strategy throughout the business, business planning, capital
allocation, strategic initiatives, and feedback and learning.
The balanced scorecard makes use of four processes: clarifying and translating the
vision into strategy; communicating and linking strategic objectives and measures;
planning, setting targets, and aligning strategic initiatives; and enhancing feedback
and learning.
Discussion of the processes:

Clarifying and translating the vision:
This assists management in building consensus around the organisation’s vision and
strategy. Vision statements have to be specific, and not broad and lofty. It should be
set in operational terms expressed as an integrated set of objectives and measures,
agreed upon by senior executives, describing the long-term drivers of success.
Communicating and linking:
This allows management to communicate the strategy to all levels of the organisation
and have it linked to departmental and individual objectives. Departments are usually
evaluated in terms of their performance on a financial basis, with individual incentives
being tied to short-term goals.
Business planning:
This enables the organisation to integrate their business and financial plans. By
having the wide variety of internal employees and consultants’ goals / objectives,
managers can ensure that each person or department receives the needed resources
and allocating them with the correct priority rating. This will assist in ensuring all
initiatives’ goals will coincide with the organisation’s strategic objectives.
Feedback and learning:
This provides the organisation with the tools for strategic learning. Feedback and
review processes based on the balanced scorecard can assist the organisation with
determining short-term results, and evaluate strategy in the light of the recent
performance, by making use of the perspectives of customers, internal business
processes, and learning and growth. This way, the organisation can modify strategies
to reflect “real-time learning”
Ultimately the balanced scorecard has the role of a planning tool, with the aim of
keeping the strategy of the organisation in line with current development, learning and
changes
Exam - Jun 2013
Question 1:
1.1 Explain the concept of strategy in your own words and briefly explain 12
Mintzbergs five Ps of strategy
1.2 Justify the importance of strategic management in the contemporary 8

business environment
1.3 Discuss change as a contemporary issue in the business environment 5

with specific reference to the different types of changes
1.1.
Strategy
The concept of strategy involves utilizing and finding the best resources to your advantage in
achieving goals that are desired. Organisational strategies is a manifestation of how an
organization needs to evolve over time to meet its objectives by establishing a detailed plan to
assess and adjust the organization's direction in response to a changing environment.
Developing an organizational strategy for a business involves first comparing its present state
to its targeted state to define differences, and then stating what is required for the desired
changes to take place.
Mintzberg’s five “P’s” of strategy
1. Strategy as Plan
In this definition, Mintzberg notes a strategy is an intended, or consciously followed course of
action. The strategy is made in advance of its implementation and is followed up by actual
implementation and development. This can also be called ‘deliberate strategy’.
2. Strategy as Ploy
A ‘ploy’ is usually a manoeuvre in a competition or a game, one that is taken to get the better
of your competitor. A ploy takes advantage of opportunities that arise. Ploys are usually
undertaken to deter competitors from entering the market, for example by building new
facilities with plenty capacity, or lowering prices.
3. Strategy as Pattern
Strategy should also be considered in terms of strategic outcomes. Strategies can be
planned, but the outcome may not be what was expected. In some cases it may be possible
to look back at what has happened, and describe a company’s strategy in terms of a pattern
that emerged.
4. Strategy as Position
Strategy is intended to locate or fit a business within its environment, and deciding on what
position to adopt (e.g. within markets). A position may be a niche, providing low cost or
distinctive products, or by exploiting competences to deter others in the market.
5. Strategy as Perspective
Finally, strategy can be defined in terms of the corporate personality and culture a company
has adopted over time. Strategy is the way a company views itself in the world, through the
eyes of its management and employees. This can refer to organisation culture
1.2.
Businesses today are becoming more complex due to rapid changes in environment. It is
becoming increasingly difficult to predict the environment accurately. The internal and
external environments of organizations are now driven by multitudes of forces. Technological
changes are happening rapidly and organizations have to adapt at the same pace and this
evolution has created fierce competition. Customers are more educated and are seeking
value for money. There is a demand for better service in the least possible time, at the least
possible price. This has brought in new rules of business that companies all over the world
are evolving through their experience. Strategic management therefore becomes imperative
in this contemporary environment. Strategic management is the art and science of
formulating, implementing and evaluating cross-functional decisions that will enable an
organization to achieve its objectives. It is the process of specifying the organization’s
objectives, developing policies and plans to achieve these objectives, and allocating
resources to implement the policies and plans to achieve the organization’s objectives. It is
the highest level of managerial activity, usually formulated by the Board of Directors and
performed by the organization’s Chief Executive Officer (CEO) and executive team.
1.3.
Organizations need to be able to respond to the environment in which they exist. To position
them, organization formulates a course of action. The contemporary business environment is
characterised mainly by revolutionary, complex, dynamic and unpredictable change. Change
can be incremental or discontinuous. I ncremental change is change which evolves slowly in
a systematic and predictable manner (Senior, 1997:31). In a business environment, making
an incremental change to the way that things are done typically does not significantly threaten
existing power structures or alter current methods.
Discontinuous change is characterised by rapid shifts with lower levels of predictability. This
is a sudden change that threatens existing or traditional authority or power structure, because
it drastically alters the way things are currently done or have been done for years.
Question 2:
2.1 Evaluate the SABMiller vision and mission statements in terms of content 12
and length
2.2 Comment on the link between the SABMiller strategic direction and the 3
SABMiller strategic priorities
2.3 Discuss the benefits of a clear strategic direction 6
2.4 Explain what it means to be a sustainable organisation and if you consider 4
SABMiller to be a sustainable organisation
2.1.
Vision statement should:
· Reflect the company’s future state, which the company will achieve.
· The essential elements focus on those values to which the organisation is committed.
· Possible improvement paths, employee development programmes and measures or
indicators of progress should be established for each element of the vision.
Vision: outlines what the organization wants to be, or how it wants the world in which it
operates to be (an "idealised" view of the world). It is a long-term view and concentrates on
the future. It can be emotive and is a source of inspiration. For example, a charity working
with the poor might have a vision statement which reads "A World without Poverty."
Mission: Defines the fundamental purpose of an organization or an enterprise, succinctly

describing why it exists and what it does to achieve its vision. For example, the charity above
might have a mission statement as "providing jobs for the homeless and unemployed".
A mission statement:
· A Company’s mission statement should not address what an organisation must do in
order to survive but what it has chosen to do in order to thrive.
· It should be positive, visionary and motivating.
5 characteristics for a mission statement:

1. It will contain a formulation of objectives that enables progress towards them to be
measured.
2. It differentiates the company from its competitors.
3. It defines the business that the company wants to be in, not necessarily is in.
4. It is relevant to all stakeholders in the firm, not just shareholders and management.
5. It is exiting and expiring.
A mission statement should not only state the obvious
2.2.
We use statements of vision, mission, strategic intent and values to express strategic
direction. According to Louw and Venter (2013:104) an organisation’s strategic direction
informs and shapes the way in which an organisation defines itself and where it finds its
unique strategic advantage. SABMiller's strategic priorities (Johnson, Whittington, Scholes,
2011) showed that higher market share and greater influence of brand portfolios extension
are the most important directions of SABMiller's strategies. Setting strategic direction is a
creative process and should create excitement which is SAB miller is doing successfully by
ensuring that there is a clear link between their strategic direction and the priorities set out to
guide the strategic direction.
2.3.
● Guides human behaviour and defines working relationships
● It shapes employees relationships with each other and the external public or
stakeholders, especially with customers
● It can lead to better performance aiding strategy formulation and implementation
● It serves as a benchmark for resource allocation
● It creates confidence that the intended strategies will not compromise the interests of
the various stakeholder groups in the organisation
● It can inspire employees throughout the organisation; and remind them of the purpose
of the organisation and each individual’s role in achieving goals.
2.4.
Sustainability organizations seek to implement sustainability strategies which provide them
with economic and cultural benefits attained through environmental responsibility. Recently,
the natural environment has become a key strategic issue in both the business and academic
communities. Through "implementing sustainability strategies, firms can integrate long-run
profitability with their efforts to protect the ecosystem, providing them with opportunities to
achieve the traditional competitive advantages of & cost leadership and market differentiation
via environmental responsibility". Sustainability strategies have been persistently employed in
a number of organizations.
Question 3:
which the RBV approach is based, the categories of resources and the
determinants of resource value
3.2 Discuss the value-chain approach (VCA) with reference to how it is used as 10
a tool in an internal environmental analysis and the process of a VCA
analysis
3.3 As part of internal environmental analysis, explain what it means to make 4
meaningful comparisons
3.1.
The resource-based view is an approach that specifically evaluates the organisation’s
resources and capabilities. It is based on the assumption that these resources and
capabilities are the true source of competitive advantage. When using the resource-based
view to conduct an internal environmental analysis, the organisation needs to first identify its
resources. Resources can be divided into three categories:
● physical or tangible resources - Financial (cash, securities, borrowing capacity)
Physical (plant, equipment, land, mineral reserves)
● intangible resources - Technology (patents, copyrights, trade secrets) Reputation
(brands, relationships) Culture
● human or organisational capabilities - Individual skills/know-how Capacity for
communication and collaboration Motivation
Determinants of resource value include:
● competitive superiority or advantage (distinctiveness, scarcity and relevance)
● appropriability (intellectual capital, relative bargaining power, embeddedness and
resource exploitation)
● substitutability (durability, replicability and transferability)
● exploitability (concentrating, accumulating, complementing and conserving resources)
3.2.
The value chain is a systematic way of studying the direct and support activities undertaken
by an organisation. With each activity, value is added. Thus, the value chain sees an
organisation as a series of value-adding activities. The value chain is a systematic way of
studying the direct and support activities undertaken by an organisation. With each activity,
value is added. Thus, the value chain sees an organisation as a series of value-adding
activities. These activities can be classified as primary and secondary activities.
Louw and Venter have included an example of capabilities in SAB’s value chain. Pearce and
Robinson (2009) provide several steps for conducting a value chain analysis:
1. Identify and classify activities. The first step in performing a value chain analysis is to
identify the various primary and secondary activities of an organisation.
2. Allocate costs. The next step in performing a value chain analysis is to try and allocate
costs to every activity, as each activity incurs costs and ties up time and assets.
Activity-based costing is a method that can be used in this step, but it is important to note that
the financial systems of an organisation do not necessarily provide information in the format
that activity-based costing requires.
3. Identify the activities that differentiate the organisation. Using value chain analysis will
help an organisation to determine the activities that differentiate it from its competitors and
serve as sources of competitive advantage.
4. Examine the value chain. The last step of the value chain analysis is to scrutinise the
results of the analysis and classify the various activities as strengths or weaknesses of the
organisation.
3.3.
When we want to measure our success, we should compare it with something. We may
compare our current performance with our performance in the previous year to see
whether we have improved. We can even compare our performance over a certain period,
with our past performance over another period. We can also compare our performance
with that of our competitors. In that way, we will determine just how well or badly we are
doing. Another way to make a meaningful comparison is to compare our performance with
the industry average. Lastly, we can compare our performance with that of the leader in
the industry – this is called benchmarking.
Question 4:
4.1 Differentiate between strategic planning and strategy implementation 6

4.2 Comment on the requirements for strategy implementation 7
4.3 Discuss the strategy implementation instruments 12
4.1.
Strategic management is concerned with strategic planning and strategy implementation. As
such, the differences between strategic planning and strategy implementation exists, and are
as follows:
Strategic planning is intellectual or the thinking aspect of strategy while strategy

implementation is the doing aspect of strategy.
Strategy planning/formulation requires intuitive and analytical skills that can be used in
analysing the external and internal organisational environment, facilitated by strategic
decision enablers while strategy implementation requires motivation, and leadership skills,
organisational architecture, strategic performance management, control and reporting are
synergistically integrated to achieve effective performance.
In addition, strategic planning is mostly a market-driven activity with an external focus,

whereas strategy implementation is an internal, operations driven activity.
Furthermore, strategy planning usually takes place mostly at the top and senior manager
levels while strategy implementation is the responsibility everyone in the organisation, all
levels of management, supervisors and the board of directors
4.2.
Strategy implementation is the communication, interpretation, adoption and enactment of
strategic plans. Implementing the strategy also means change in the organisation is required.
Although strategy planning, analysis of alternate strategies and strategic choice are important
in the strategic management process, they cannot ensure success on its own. To ensure
success, the strategy must be translated into carefully implemented action. This means that;
The strategy must be translated into guidelines for the daily activities of the organisation’s
members.
The strategy and the organisation must become one-that is, the strategy must be reflected in
the way the firm organises its activities, the organisational leaders and the culture of the
organisation.
The company’s managers must put into place “steering” controls that provide strategic control
and the ability to adjust strategies, commitments, and objectives in response to ever-changing
future conditions.
In addition, six key drivers for strategy implementation are necessary to support the
implementation process. This includes: short-term objectives, functional tactics and policies;
leadership; organisational culture, resource allocation, reward systems, and organisational
architecture, systems and processes.
4.3.
Strategy implementation is the communication, interpretation, adoption and enactment of
strategic plans. Implementing the strategy also means change in the organisation is required.
Instruments of strategy implementation that aid the process are short-term objectives,
functional tactics and policies. These instruments support the strategy implementation
process by focusing on exactly what needs to be done to ensure effective strategy
implementation.
For successful strategy implementation, these instruments must be aligned with the chosen
strategy or strategies to ensure a tight fit between the strategies that are formulated and those
that are implemented.
Short-term objectives
These are measurable outcomes that are achievable or intended to be achieved in one year
or less. Short-term goals are the specific, usually quantitative, results that operating
managers set out to achieve in the immediate future.
Short-term objectives help with strategy implementation as it operationalises long-term

objectives, agreement about conflict that may arise and identifies measurable outcomes of
action plans. It also help to establish departmental, divisional and organisational priorities and
they assist in monitoring progress made towards the achievement of long-term goals.
Well-formulated short term objectives clearly state what is to be accomplished, when it will be
accomplished and how its accomplishment will be measured.
(Study guide 2015:151-2)
Functional tactics
These are key activities that must be performed in each functional area to provide the
organisation’s products and services. They translate the organisation’s grand strategy into
action to ensure that the short-term objectives are attained. Functional tactics are essential to
implement the chosen strategy since they give specific, short-term guidance to operational
managers. They differ from grand or business strategies in terms of time horizon, specificity
and participation.
(Study guide, 2015:152-3)
When developing functional tactics, more people are involved. Operational managers and
supervisors have to be involved in order to improve their understanding of what needs to be
done to achieve long-term goals and how their function can contribute to successful strategy
implementation.
(Study guide, 2015:152).
Policies
Policies provide a basis for control, promote a coordination and consistency across
organisational units. Policies guide and align organisational members in their activities and
behaviours.
In addition, policies facilitate the formation of organisational culture conducive to strategic

implementation.
They inform employees about what is expected of them and clarify what can and what cannot
be done in pursuit of the short-term goals in the strategy implementation process. Policies
also provide a basis for control and promote coordination and consistency across
organisational units in strategy implementation.
However, policies need to support a chosen strategy and a change in strategy may require a
change in policy.
(Louw & Venter, 2013:476, Section 13.3.5.3)
Question 5:
5.1 Provide guidelines for strategically aligned reward systems 10

5.2 Describe the criteria that can be used when allocating resources 6
5.3 Discuss the strategy-structure relationship 9
5.1. (SG p.186)
Louw and Venter (2013:474)
● An organisation should never reward mediocrity, but should only compensate good
performance.
● The organisation should always link financial incentives to output and performance,
and not merely attendance behaviour, or even just doing the job.
● Reward should comprise a healthy mix of financial rewards and non-financial rewards.
● Reward should be market-related in order to ensure that employees are retained.
● Financial reward and pay should be internally equitable and acceptable to employees
with the principle of ‘equal work for equal pay’ applying at all times.
● The organisation must keep the time gap between performance and reward to an
absolute minimum.
● The organisation should ensure that reward practices are appropriate when managing
a diverse and/or global workforce such that cultural sensitivities to different reward
practices are taken into account.
● The organisation should link performance-related rewards directly to the attainment of
goals and objectives that are strategically aligned.
● The organisation should ideally link executive-level reward to overall organisational
performance in the form of share options and share ownership schemes.
● Avoid skirting the system to find ways to reward non-performers.
● The reward system should be administered with fairness and transparency.
5.2.
(Study guide, 2015:193)
The criteria used when allocating resources include the following:
● The contribution the proposed resources make to the fulfilment of the organisation’s
mission and long-term goals. The resource allocation task is to steer resources away
from areas that are poor at delivering the organisation’s objectives and towards those
that are good at it.
● The way in which resources support key strategies. Generally, the request for funds
usually exceeds the funds that are available.
● The level of risk associated with a specific proposal. If the risk is higher, there is a
lower likelihood that a strategy will be successful.
5.3.
When the organisational culture manages to bind members of the organisation effectively,
and is sufficiently widespread, accepted and entrenched, it becomes a key influencer on both
strategic alignment and strategic implementation. In this regard, managing the fit between an
organisational culture and its chosen strategy is key towards an organisational success.
Therefore, it is vital to know that whenever there is a change in strategy, the organisational
culture will have to be aligned with the new strategy.
If the changes required by the chosen strategy or strategies are highly compatible with the
existing culture, and implementing the strategy requires a lot of changes, the strategic leaders
should link the required cultural changes to the mission and the organisation’s norms.
However, if a lot of changes to the organisation are required during strategy implementation,
and these changes are not compatible with the organisation’s culture, it may sometimes be
better to reformulate the strategy indeed.
It is important to bear in mind that it is more difficult to change an organisation’s culture than
to develop or maintain it. Research conducted by various authors on this organisational
culture indicates that organisational cultural changes succeed only when the organisation’s
CEO, other key top management team members and middle level managers actively support
them.
Middle management especially needs to be highly disciplined in energising the culture to

ensure that it is aligned with the organisation’s chosen strategy and strategic direction.
Question 6:
6.1 Identify, discuss and evaluate the mango airlines strategy 6

6.2 Discuss the criteria for effective strategies and evaluate the strategies 11
identified in 6.1
6.3 Recommend strategic control methodologies to Mango Airlines 8
6.1.
Given Mango Airlines’ mission to expand its market and to market its products or services at
the best possible cost ensuring a sustainable value creation for all stakeholders, it appears
that Mango Airlines has an overall cost leadership strategy that is built on input costs. The
savings from lower costs are then transferred to large, price sensitive market. Mango Airlines
are also seeking competitive edge through delivering superior returns to stakeholders relative
to their peers. The advantage of Mango Airlines’ cost leadership strategy gives the
organisation an edge over its competitors, provided that the organisation offer a product or
service that customers want to buy.
Mango Airlines are trying to contain costs by expanding their market to benefit from
economies of scale. The emphasis of Mango Airlines’ strategy is about under-pricing
competitors so that the organisation can gain and maintain its competitive edge over its
competitors in the market.
6.2.
Appropriateness
Appropriateness is concerned with whether a strategy addresses the key issues of the
organisation’s strategic position. Two questions need to be looked at here. ‘Is the strategy still
in line with the mission and long-term goals of the business?’ and ‘Is the strategy still
acceptable for the shareholder?’
At Mango Airlines, the strategy was acceptable to the strategic leaders and other influential
leaders of the organisation. This was key for the successful implementation of the strategy.
However, the strategy should be appropriate to the context of the organisation, both internally
and externally.
Feasibility
Feasibility means that the proposed strategies are capable of being carried out. Two
important questions need to be looked at here. ‘Is the strategy feasible in terms of resources?’
and ‘Is the strategy still feasible in light of the strategies and actions of competitors?’
Although options may options may be consistent with the mission and objectives, there may
be other difficulties that limit the likelihood of success. This criterion applies to Mango Airlines
since the strategy opted for is feasible in terms of Mango Airlines competitors. Mango Airlines
resources, the strategy is capable of achieving e expected results, provided that it is
implemented in a sound manner. Strategic leaders, executives and management team of
Airlines support the strategy, hence there is a likelihood of success of the chosen strategy.
This will help Mango Airline to achieve the expected results.
Desirability:
It involves the ability of the strategy to produce results in either the short-term or the
long-term, in light of the needs of the organisation. Two questions need to be looked at here.
‘Has the strategy has the potential to produce adequate results in the short-term?’
‘Will the strategy continue to produce adequate results in the long term?’
Where an organisation identifies an opportunity and needed to act quickly, there is always a
danger that some important issues /consideration will be overlooked. The risk in other factors
which needs careful attention in strategy formulation: the likely effect on competition, the
technology, risks linked to skill and key success factors, market diversification risks. Mango
Airlines need to test whether their chosen strategy can achieve the expected results. This is
key for strategic decision enablers of Mango Airlines, to determine the effectiveness of their
low-cost strategy to help the organisation gain and maintain the competitive advantage in the
market.
6.3.
Types of strategic control (Study Guide, 2013):
· Premise control:
Premise control checks to see if the assumptions (premises) on which the choice of strategy
has originally been made are still valid. Once an assumption is no longer valid the strategy
will have to be reviewed and changed. The sooner an organisation realises that there are
invalid assumption the better it is for the success of the strategy and organisation.
· Strategic surveillance:
Strategic is an unfocused way of monitoring strategy in order to identify possible changes in

the environment that may render the current strategy out of line with reality. Strategic
surveillance is designed to monitor a broad range of events inside and outside the
organisation that are likely to affect the course of its strategy. Strategic surveillance provides
an on-going observance of day to day activities; this may uncover information relevant to the
organisations structure.
· Special alert control:
Special alert control is when an organisation reconsiders its strategy after a

sudden/unexpected event. These events will trigger an immediate and intense revaluation of
the organisation’s strategy and its current strategic position.
· Implementation control:
Implementation control assesses whether the overall strategy could be changed in the light of
the results associated with the incremental actions that implement the overall strategy. A
project is broken into different sub-projects, as all the sub-projects are implemented an
organisation will be able to determine if the overall strategy is unfolding as planned. If the
project reaches an unexpected threshold, the strategy will have to be reassessed.
Exam - Jan 2014
Question 1:
1 Define the following contemporary strategic management concepts
Stakeholder engagement TB 55, 86, 95-96

Wealth Maximisation SG 37
Corporate Governance TB 54; 73
Deliberate Strategy
Emergent Strategy TB 19; 33
E-V-R Congruence
Industry life-cycle TB 215-217; 223; 531
Scenario planning 15; 185; 186; 188
Corporate Parent 354-357; 529
Organisational architecture 6;7;10; 25; 449; 451-452; 455-458; 479; 482; 532 25
Question 2:
2.1 Discuss Glencore-Xstrata (the combined organisation) method of developing 3

resources and capabilities
2.2 Discuss the competitive advantage of Glencora-Xstrate. Your answer should 10
include
2.2.1 a definition of competitive advantage
2.2.2 a description of the concepts of competitive advantage
2.2.3 examples from the article on Glencore-Xstrata
2.3 Advise Mr.Glasenberg, CEO of Glencore-Xstrata, about the drivers of 6
strategy implementation to focus on when integrating the organisations.
Refer to the article for examples
2.1.TB 233
When an organisation such as Glencore-Xstrata enters a new market or introduces a new
product or service, it needs to acquire the resources and capabilities needed to match the
required key success factors. This can be done in the following three ways, (i) acquisition, (ii)
internal creation or (iii) creation of a spin-out organisation. In the case of Glencore-Xstrata
they made use of the acquisition and internal creation. The new company that was formed
acquire the resources and capabilities from each other. For Glencore there will be a fast
expansion in mining and for Xstrata gains the underperforming assets belonging to Glencore
and can restructure those operationally and financially. The new company will be able to
capture value at every stage of the supply chain from sourcing raw materials to delivering
products to an international customer base.
2.2.
2.2.1 Competitive advantage is achieved when an organisation makes optimal use of its
resources. The organisation needs to create value to gain and maintain competitive
advantage. The source of an organisations competitive advantage is to be found in its unique
combination of resources and capabilities. Competitive advantage is achieved when the
organisation’s resource is perceived as more valuable by the customer than that of its
competitors. The resource meets the need of the customer better than the competition.
Competitive advantage is created by the value of its resources. The value of resources is
determined by distinctiveness, scarcity and relevance.
2.2.2. (Louw and Venter, p 230)

It is important to understand the role of distinctive capability and the role it plays in creating
competitive advantage. The scarcer a resource is the more valuable it becomes. Therefore
the resource should not be easily available and it should also be relevant to the key success
factors in the market to create competitive advantage for the organisation. Resources can
only lead to competitive advantage f they are unique and hard to come by. There are four
determinants of the scarcity of resources namely, (i) physical uniqueness, (ii) path
dependency, (iii) causal ambiguity and (v) economic deterrence.
2.2.3. The source of Glencore-Xstrata’s competitive advantage lies in the combination of the
skills, resources and capabilities of the two organisations. These two companies already
worked together for a number of years, which makes the transition easier. The combined
company will be able to expand rapidly while it would enable the new company to capture
value at every stage of the supply chain.
2.3. SG 145
There are six key drivers when implementing a new strategy. These includes (i) Short-term
objectives, functional tactics and policies, (ii) Leadership, (iii) Organisational culture, (v)
Reward systems, (iv) Resources and (vi) Organisational architecture, systems and processes.
When an organisation acquires another company it needs to integrate the companies. Of
utmost importance is the leadership that is displayed by the strategic manager. It is also
important to integrate the new company into the corporate culture of the organisation,
retaining the best of each and forming a new corporate culture. Reward systems can be used
to motivate the personal either via financial or non-financial rewards to work productively
towards creating a new company and reaching the goals.
Question 3:
which RBV is based, the categories of resources and the determinants of
resource value.
3.2 When organisations decide to enter new markets or introduce new products, 3
they often need to develop resources and capabilities. Identify the method
Toyota used in this case. In your answer refer to the article
3.3 Apply the RBV framework for identify resources and capabilities to the 12
article. Consider the resource categories and the types of capabilities
apparent from the production of the Toyota Prius for the purpose of creating
competitive advantages
3.1
3.1 In establishing a strategy for the future it is very useful to consider the organisations
resources. Resources in this context refer to the assets, skills and capabilities over which an
organisation has control. The Resource-based view (RVB) assists in understanding of why
organisations differ from each other and why certain organisations are more successful and
profitable than others.
There are three important premises on which RBV is based. (Louw and Venter, p 228)
· Resources determine the strategic direction of the organisation. Understanding the

distinctive resources and capabilities can the organisation determine what it is capable of
doing, rather than focusing on what its current business is.
· Resources are the primary sources of profit for the organisation. Profitability is
determined by two factors, (i) the attractiveness of the industry in which the organisation
competes and (ii) its ability to establish a competitive advantage over its rivals.
· Industry positioning alone does not explain differences in profitability among similar
organisations with similar products in the same industry.
Resources can be divided into the following categories:
· Physical resources
Physical resources are intangible assets that appear on the organisation’s balance sheet.
This includes property, raw material, production facilities, etc. Tangible assets can be used to
create value either by using these assets more economically or more profitably.
· Intangible resources
This category of resources includes brand value, culture and intellectual capital. Intellectual
capital is an important part of intangible resources and includes patents, brands, business
systems and customer databases. The value of intangible assets such as brand value far
outstrips the value of physical assets. Intangible assets play an important role in creating
value and establishing competitive advantage. In an economy based on knowledge,
intangible assets and intellectual capital are major resources of the organisation.
· Human resources
This category refers to the individual skills and competencies to which the organisation has
access. It provides the productive services that all organisations require to survive and
prosper. Human resources are also unique in the sense that organisations can never own
them. Through their individual skills, knowledge and learning and thinking abilities, human
resources can contribute significantly to value creation in the organisation. Organisational
culture is determined by the leadership and employees of the organisation and can provide a
valuable resource and defence against competition and value erosion.
The value of a resource is determined by the following factors:

The extent to which resources are a viable source of competitive advantage.
This is determined by three factors
o Distinctiveness
o Scarcity
o Relevance
The extent to which a competitive advantage can be sustained over a period of time also
called sustainability
This is determined by factors such as the resource’s
o Durability
o Replicability
o Replicability
o Transferability
The extent to which the organisation is in a position to appropriate the returns generated by
the resources.
This factor is called the appropriability of a resource and is determined by
o Protection of intellectual property
o Relative bargaining power
o Embeddedness
o Resource exploitation
The extent to which resources can be exploited for future growth.

This factor is called the exploitability of a resource and is determined by
o Concentrating resources
o Accumulating resources
o Complementing resources
o Conserving resources
3.2. TB 234-236
There are three ways to develop resources and capabilities, namely (i) acquisition, (ii) internal
creation and (iii) creation of a spin-out organisation. Toyota used the method of internal
creation. They identified the market need for a hybrid engines in a wide range of vehicles.
They are now putting in processes and products that will enable them to capture the largest
part of the hybrid market.
3.3.
The Resource-Based-Viewpoint (RVB) is a theoretical perspective for understanding how
competitive advantage is achieved in organisations and sustained over time. An organisation
can use its unique resources to implement value-creating strategies and to exploit new
market opportunities, such as the hybrid market. Competitive advantage is achieved when an
organisation implements value-creating strategies that other competitors are unable to
duplicate, or are too costly to duplicate. It focuses on how the organisation competes to
deliver a unique value. Toyota started earlier than other car manufacturers by building and
marketing the Prius, an electric-and-petrol hybrid vehicle. Now thye are the market leaders in
this market and are pressing ahead with plans to put hybrid engines in other models and
SUVs. This is a huge market that they are now the leaders in. They have used their resources
and capabilities to be the leaders in a fairly new and underdeveloped market. The rivals are
now unable to compete as it is difficult to catch up to the value that Toyota is already
delivering to customers in the hybrid vehicle market.
An organisation has a unique bundle of resources that makes up the organisation’s distinct
combination of assets, skills, capabilities and intangibles.
There are various different categories of resources such as

· Physical resources
These are the tangible assets that appears on the organisations balance sheet and includes
property, raw material, production facilities, etc. An organisation uses its tangible assets to
create value by either using these assets more profitably or more economically. Toyota owns
the production plants where the hybrid engines are produced, the raw materials used in the
production.
· Intangible resources
this includes brand value, culture and intellectual capital.
Toyota also has the intellectual capital that includes the patents for hybrid engines, a
well-known hybrid brands such as Prius and a customer database of customers that already
own a hybrid model or has test driven such a model. Intangible assets are far more valuable
than tangible assets. The value of intangible assets grows the more it is used, unlike physical
resources.
· Human resources
This refers to the skills and competencies to which the organisation has access. It provides
the productive services that all organisations require to survive and prosper. It is unique
because the organisation can never own it. Through their individual skills, knowledge and
learning and thinking abilities, human resources can contribute significantly to value creation
in the organisation. The organisational culture is determined by the leadership and employees
of the organisation and van provide a valuable resource and defence against competition and
value erosion. In the case of Toyota, the leaders of the organisation had the vision to focus
not just on diesel models but also to develop its own hybrid model, the Prius. This gave them
a competitive advantage that the other car manufacturers are finding difficult to rival. The
employees of Toyota now have now acquired the skills and knowledge needed to
manufacture these hybrid engines and also to produce it in future at half the cost. This is
achieved through the employees learning and thinking abilities.
Resources on their own are not particularly productive, but add value when they are
combined to form unique capabilities. Organisational capabilities refer to the organisation’s
capacity to combine resources into productive activities. Capabilities represent complex
combinations of assets, people and processes that organisations use to transform inputs into
outputs.
There are different types of capabilities:

· Threshold capabilities
These are the minimum capabilities and organisation needs to compete in a market and do
not crate competitive advantage. For Toyota these would include the distribution channels for
the vehicles, the retail outlets, production plants, etc.
· Distinctive capabilities
These are also called core competencies and are unique, valuable and provide the bases for
competitive advantage. Rivals will find it difficult to imitate these. Distinctive capabilities are
important because they require organisations to focus not only on what they do well, but also
on what they do better than competitors. Distinctive capabilities form the bases of strategic
innovation, the ability to develop new markets and products. Toyota developed the hybrid
engine and is now the leader in this market. They developed and produced the Prius and
captured the biggest share of the hybrid market. Their competitors now need to try and catch
up to them.
· Dynamic capabilities
This is the capability of the organisation to develop new capabilities. Most sources of
competitive advantage are temporary and organisations need to learn and develop new
capabilities that will have an advantage over their rivals. Now that the rival car manufacturers
are also starting to develop their own hybrid models, Toyota is already focusing on expanding
their hybrid footprint by putting hybrid engines in other cars as well as SUVs. Toyota is also
now focusing on cutting the cost of producing their engines to half of the original cost,
creating a new competitive advantage.
Question 4:
4.1 Define "Changeability" and "predictability" and describe how they are 3
measures to assess macroenvironment turbulence
4.2 Advise South African strategic managers on how information should be 16
gathered during a macro environmental assessment (domestic and
international). In your answer you should:
4.2.1 Suggest a process to analyse the macro environment
4.2.2 indicate the macroenvironmental factor categories that strategic managers
should consider when they undertake external environmental scanning of
domestic and international macro environments
4.2.3 describe each of the factors and whether they are opportunities or threats
for South African managers. Support your answer with examples from
case study
4.3 Explain to South African Managers the importance of an Issues priority 6
matrix. Provide the following as part of your answer:
4.3.1 a description of the framework
4.3.2 a description of strategic myopia
4.1.writer here… TB 528; 532; 179; 156; 159; 160;162; 378; 382; 539e answ
4.2. TB 180; 165; 183;
4.3.
. (Louw and Venter, p 183 and 531)
An issues priority matric is a technique through which emerging macro environmental and
industry trends can be identified, prioritised and assessed in terms of their potential impact on
an organisation’s future operations. There are three possible ratings in the issues priority
matrix, (i) low, (ii) medium and (iii) high. The trends are plotted with regards to its estimated
level of impact on the organisation as well as its probability of occurrence. If a facto has a
medium to high probability as well as a medium to high probably impact, it can be deemed as
high priority.
4.3.2. Strategic myopia occurs when personal values of an organisations managers and the
success of current strategies are bias both their perceptions of what is important to monitor in
the environment as well as their interpretations of what they perceive. It’s a willingness to
reject unfamiliar as well as negative information.
Question 5:
5.1 Explain the role of a strategic leader in the success of organisation's 5

strategy and use examples from the article
5.2 Discuss the mental or cognitive activities and problem solving activities in 6
the strategic reasoning process necessary for straight thinking
5.3 Leadership is an important driver in strategy implementation. Discuss the 14
"full range" of leadership. Include the following
5.3.1 How does transformational and transactional leadership compare and
contrast with visionary and managerial leadership?
5.3.2 Discuss these with reference to examples of Mr Jordaan's leadership
qualities (CEO of FNB). Refer to case stufy
5.1.
(Study Guide, p 155 and 162)
Strategic leaders have a big role to play in the success of an organisation’s strategy.
Employees require guidance, inspiration, instruction and motivation to carry out their
activities. Leaders in an organisation also play a crucial role in ensuring that the organisation
adapts to the changing environments in order to succeed and survive. The manger must think
strategically, be emotionally intelligent and be visionary leaders. In the South African context
leaders should also apply the philosophy of African leadership, Ubuntu. The leader should
also manage the change.
The tasks and role of a strategic manager includes

● Setting the strategic direction of the organisation - The vision needs to be
communicated and people should buy into it.
● Driving the strategy - The strategic leader is responsible to drive the strategy and
ensure that it is implemented successfully. This is done through leadership, resource
allocation, motivation, reward systems, policies, guidelines, systems and the most
appropriate organisational structure.
● Developing social capital - The human resource function is of strategic importance
because the successful strategy implementation requires different types and numbers
of employees with different skill sets, attitudes and behaviours.
● Build and make use of core competencies of the organisation - Core competencies
refer to those activities that the organisation performs really well and may result in the
basis of competitive advantage. Strategic leaders are also responsible for creating
organisational alignment. They should identify the various elements of an
organisation and their interrelationships and manage them to create a strategic fit.
They should analyse the organisational culture to determine whether it is appropriate
for the chosen strategy.
● Lead and manage the changes - Successful strategy implementation requires many
changes in the organisation and its systems and procedures. This is a challenging
task because of the resistance to change.
5.2. (Louw and Venter, p 418 – 419)

● Strategic thinking is essentially the mental process of reasoning applied by an
individual to achieve success in any task. It is about reasoning, searching for ways to
define the nature of the strategic problem and to resolve it appropriately. It is about
engaging in a strategic reasoning process which consists of two mental or cognitive
activities, identifying and diagnosing, required to define the strategic problem as well
as two activities, conceiving and realising, to solve strategic problems.
● The mental or cognitive activities of the strategic reasoning process include the
following:
● Identifying - This is the mental activity to recognise and make sense of a problem,
answering the question” What is the problem?” The leader needs to have a constant
sense of what is happening within and around the organisation and needs to be able
to recognise the possible problems from this and make sense of it.
● Diagnosing - The next step is to diagnose the problem; the more detailed process of
determining the nature of the problem. Diagnosis is done through the mental
processes of analysing and reflecting. This stage addresses the question “What is the
nature of the problem?”.
● Conceiving - The leader needs to imagine how to address the problem that was
identified. The leader is often required to formulate unique solutions as generic
solutions are rarely available. This stage addresses the question “How should we
address the problem?”.
● Realising - One the leader has conceived how to address the problem, the focus is on
practically implementing actions to realise the solving of the problem and to evaluate
the implications of the actions. This stage addresses the question “What action
should we take?”.
5.3.
(Louw and Venter , 425 – 427)
Effective leadership requires the leader to have a range of behaviours, leadership styles and
the wisdom to select the appropriate behaviour for a situation. The full range of leadership
model includes both transactional as well as transformational leadership styles.
● Transactional leadership is based on an exchange (a transaction or agreement)

between the leader and the follower whereby the leader clarifies what is required of
the follower and the consequences of the requirements being met.
● Transformational leadership however results in the follower being motivated to
achieve more than intended or even thought to be possible. Transformational
leadership is an extension of transactional leadership and should be exhibited more
frequently than transactional leadership in a leader.
● Contingent reward (CR) - this is an active and effective component of leadership.
● The leader compensates or rewards a subordinate appropriately for meeting agreed in
objectives.
● Management-by-exception passive (MBE-P) - Leaders react and intervene in the work
of subordinates only once mistakes occur or when standards are not met.
● Management-by-exception active (MBE-A) - This occurs when a leader actively
monitors and seeks out deviations and mistakes in the work of subordinates in an
attempt to avoid mistakes. The leader will intervene personally to take corrective
action. This tends to generate tension and fear. MBE-A is more active and effective
than MBE-P.
● Laissez faire (LF) - This is an absence of leadership and is both passive and
ineffective as the leader remains uninvolved and avoids leading.
Transformational leadership has produced improved employee outcomes and consists of four
Is.
● Idealised influence - This occurs where leaders consider the needs of others over their
own, demonstrate high standards and moral conduct and are consistent. These
leaders generate respect, admiration and trust in others who want to emulate them. It
is also referred to as charisma.
● Inspirational motivation - Leaders provide a meaning and challenge to followers by
articulating and communicating a clear, concise and persuasive vision of the future.
They delegate power and are able to establish a sense of team spirit in an exciting
and challenging work environment.
● This behaviour inspires and motivates followers.
● Individualised consideration - This occurs when leaders pay special attention to
people as individuals and consider their individual needs and competencies as
opposed to treating all alike. The leader encourages two way communication, listens
and delegates to individuals as means of development. This behaviour in leaders
demonstrate that they accept differences.
● Intellectual stimulation - this occurs where leaders stimulate followers to think for
themselves and to think differently about situations. Leaders challenge followers to
question, redefine problems, question assumptions, be creative and innovative in their
work, and to respond to old situations in new ways. They are encouraged to solve
problems themselves and mistakes are not criticised, but are seen as opportunities for
learning.
From the above list it is clear that a transactional leader is aware of the link between reward
and effort. They are responsive and deals with present issues. They motivate followers by
setting goals and promise rewards. Transformational leadership on the other hand arouse
emotions in their followers which motivates them. This form of leadership is proactive and
leaders inspire their followers and provide intellectual stimulation.
Visionary and managerial leadership should also be combined to be an effective leader.

Managerial leadership, like transactional leadership, focuses on day to day activities and the
short term. It involves stability, order and preservation of the existing order of the organisation
with a low level of emotional involvement with others.
Visionary leadership on the other hand, is similar to transformational leadership in that it is

future orientated; it proactively shapes ideas and relates to people in empathetic ways to
ensure the future of the organisation.
An effective strategic leader need to be able to combine managerial and transactional

leadership styles with visionary and transformation leadership styles. Strategic leaders apply
the full range of leadership styles but focus more on transformational and visionary styles.
5.3.2. Mr Jordaan is a prime example if a visionary and transformational leader. He employs

good people which he then empower and inspire to perform at their best. He generated
respect, admiration and trust in others which is evident from the praise he received from
colleagues. He is inspirational and came up with the mission, vision and measurement within
two days of the first off-site strategic session. He is future oriented with his passion for
innovation and is not afraid of the unknown. He inspires his employees to perform at their
best, while focusing on the future and setting up the organisation to be innovative. He is very
popular as can be seen by his huge following on twitter.
Question 6:
6.1 Discuss the requirements for successful strategy implementation 5

6.2 Describe organisational culture, reward system and resource allocation as 12
drivers of strategy implementation
6.3 Describe the types of strategic control and indicate how it alter the 8
organisation's chosen strategies
6.1.
(Study Guide, p 145)
Strategy formulation, analysis of different strategies and strategic choice are all important in
the strategic management process. However they cannot ensure success on their own.
The ensure success, the strategy must be translated into carefully implemented action.
This entails the following actions

● The strategy must be translated into guidelines for the daily activities of the
organisation’s members
● The strategy and the organisation must become one.
● This can be achieved by reflecting the strategy in
o The way the firm organises its activities
o They key organisational leaders
o The culture of the organisation
● The company’s managers must put into place “steering” controls that provide strategic
control and the ability to adjust strategies, commitments and objectives in response to
ever changing future conditions.
There are six key drivers that are necessary to support strategy implantation:
● Short-term objectives, functional tactics and policies
● Organisational culture
● Reward systems
● Resources
● Organisational architecture, systems and processes
6.2.
(Study Guide, p 174 – 175, 182 – 183, 192 – 104)
Organisational culture forms part of the organisation’s internal environment. It is reflected in
the way in which people in the organisation perform tasks, set objectives and administers
resources to achieve them.
A close match between culture and strategy can further a company’s strategy execution in
three ways
● A culture that encourages actions, behaviours and work practises that support good
strategy execution not only provides company personnel with clear guidance
regarding “how we to things around here” but also produces significant peer pressure
from co-workers to conform to culturally acceptable norms.
● A deeply imbedded culture closely matched to the strategy aids the cause of
competent strategy execution by steering company personnel to culturally approved
behaviours and work practices, thus making it far simpler for management to root out
operating practices that are a misfit.
● A culture embedded with values and behaviours that facilitate strategy execution
promotes strong employee identification with and commitment to the company’s
vision, performance targets and strategy.
The reward system plays a crucial role in the successful implementation of a strategy. The
reward system can be financial or non-financial. Financial or tangible rewards include
bonuses, performance-related pay, shares and share options and benefits. Non-financial or
intangible rewards are directly related to the job itself. This include ways to improve overall
job satisfaction by making work more challenging and making the work environment more
stimulating, friendly, pleasant and accommodating.
Strategic leaders need to ensure that everyone involved in the strategy implementation are
enthusiastically committed to implementing the chosen strategy and achieving the
performance targets. However strategy implementation takes place over a long period of time
and it is important to get employees’ sustained energetic commitment. By using rewards,
managers van retain commitment and loyalty if employees as well as direct their behaviour
towards achievement of the organisation’s goals.
It is of vital importance for the successful implementation of strategy that the required
resources which includes capital equipment, people and finances, are available where and
when they are needed. Managers are allowed certain resources in line with the organisation’s
overall strategy and are expected to use them to generate revenues and profits. Budgets
describe how resources should be allocated and coordinated at the different levels in the
organisation. There are different types of resources, such as financial, physical, human,
technological and information resources.
A major challenge is the allocation of scarce resources optimally to ensure that the strategy is
implemented successfully. There are seldom sufficient resources available to support the
implementation of a particular strategy. Establishing what resources are required to
implement a strategy requires strategic leaders to compile a resource plan. Allocation of
resources to implement a specific strategy has to be budgeted for. Budgeting is the process
by which the goals of an organisation and the resources to attain these goals are quantified
and communicated. Budgeting reflects the quantitative allocation of resources in support of
specific strategies. A change in strategy calls for the optimal reallocation of resources to
support activities that have a critical role to play in the new strategy.
6.3.
. (Louw and Venter, p 491)
There are four different types of strategic control.
· Premise/Assumption control.
This control is designed to gather data and analyse it systematically and continuously to
determine whether the assumptions on which the strategy is based are sstill valid. These
assumptions usually deal with the macro environment, as well as the industry, competitive,
operating and internal environments of the organisation. If the assumptions are no longer
valid, the strategy have to be changed.
· Special alert control

This is a feed-forward control mechanism and requires organisations to thoroughly and
rapidly reconsider the current strategy of the organisation due to the occurrence of a sudden,
unexpected event. Such an event should trigger an immediate and intense reassessment of
the organisation’s strategy and its current strategic situation, for example the attack on the
World Trade Centre.
· Strategic/environmental scanning
Environmental scanning or strategic surveillance is a means of unfocused control; it’s an
unfocused way of controlling strategy in order to detect possible changes in the environment
that may render the current strategy out of line with reality. The business environment and
organisational resources are monitored to identify threats or opportunities for the continual
existence of the organisation. It is designed to monitor a broad range of events inside and
outside the organisation. It is informal and may comprise of intended and unintended
scanning of the environment.
· Implementation control
This type of control takes place as events unfold. It continuously questions the basic direction
of the strategy. There are two types, (i) strategic thrusts and (ii) milestone reviews.
Implementation control assesses whether the overall strategy could be changed in the light of
the results associated with the incremental actions that implement the overall strategy.
Exam - Jun 2014
Question 1:
1.1 Discuss corporate governance at ABSA. Include:
1.1.1 A description of what corporate governance entails and an example thereof 3

from the excerpt
1.1.2 a discussion of the concepts of good corporate governance, responsible 8
leadership and strategy and an explanation of the relationship between
these concepts. Use case study
1.2 Write a business case advocating the importance of corporate governance 14
and use the information in the excerpt to support your answer
1.1.write answer here… SG 56 topic 1
1.2. SG 56 topic 1
Question 2:
2.1 Explain what a defensive strategy entails 3

2.2 Classify and describe Adcock Ingram's corporate strategy. Use article 6
2.3 Explain what each of the following forms of external growth strategy entails 8
2.3.1 an acquisition
2.3.2 a hostile (unfriendly) takeover
2.3.3 a strategic alliance
2.3.4 a joint venture
2.4 Debate the nature of the deal between Adcock Ingram and CFR by 8
classifying the specific form of the deal according to one of four external
growth strategy forms as described in your answers above. Comment on the
appropriateness of the strategy and use the article to support your answer
2.1.
Defensive Strategies aim to transform into more potent competitors. Defensive strategies
provide the organisation with a second chance, provided that the strategic management team
and major shareholders believe that the business positive long term potential. Defensive
strategies apply to organisations or business units that have potential, but have suffered
setbacks in recent times.
Defensive strategies also offer the option of removing the struggling business units from the
corporate portfolio. When failure or decline of Adcock - Ingram reached a certain level, and
continued over a certain period of time, the organisation has no option but to consider
remedial action, by either by turning the business unit around or managing the end game and
preparing to exit the market. Remedial action can be through improved marketing
effectiveness and competitiveness, or better managing the organisation to reduce costs.
2.2.
Corporate strategies are also referred to as grand or master strategies. These strategies
provide direction and represent road maps that the organisation can use to achieve its
strategic goals.
Growth Strategy:
Many organisations aim to grow their business, yet many organisations fail to achieve their
growth targets. When organisations have clear corporate goals and accompanying growth
strategies, their chances to successful growth is improved. Organisations can opt to grow
their portfolio of business through various strategies. Growth strategies are viable when
opportunities exist and the organisation is in the position to exploit them. Growth strategies
can be divided into organic growth strategies such as market penetration, and market
development, product development, and innovation. Growth strategies can also be divided
into external growth strategies, such as diversification and integration. Adcock believes that
CFR take over will be vital for its long term survival. Adcock feels that they should pursue the
tie-up with CFR in order to compete with larger rivals. South Africa represents less than 0.5%
of the world pharmaceutical market and Adcock has been looking for a large pharmaceutical
company to diversify the earnings stream over time.
2.3.
• An acquisition
Acquisition entails purchasing assets and skills of a takeover target. The form of purchase
may vary and one form is for an acquiring organisation to use its cash reserves identified
through the internal environmental analysis to purchase a target organisation. Reasons for
acquisitions include the attempt to increase market power. Market power is usually derived
from the size of the organisation, and its resources and capabilities to compete.
Page 346
• A hostile (unfriendly) takeover
An unfriendly takeover occurs when management of the target organisation does not want
its organisation to be acquired. Unfriendly takeovers are also known as hostile takeovers. The
Public Investment Corporation, Oasis Group Holdings and Bidvest have opposed the deal for
Adcock to be taken over by CFR.
Page 347
• A strategic alliance
Strategic alliances are based on commercial collaborations where organisations form
partnerships order to achieve shared goals for a defined period. A contract is signed, under
which partners provide reciprocal services or facilities. Organisations share the costs, risks,
and benefits of the business opportunity. An advantage is that companies remain separate
and independent, with low bureaucratic costs.
Page 349
• A joint venture
A joint venture is the creation of a new organisation owned by two or more partners. Most
joint ventures involve two partners. They are typically formed to exploit opportunities in areas
that co-owners find attractive, but which for various reasons, neither wants, nor is able to
develop individually. The project may simply be too big or too complex for one organisation.
Page 336 and 348
2.4.
Question 3:
3.1 Explain the concept of an industry environmental analysis 2

3.2 Describe the industry environmental analysis process Gold Fields 8
management would have applied in making their unbunding of resources
decision. Include evidence from case study
3.3 Identify the indusrty's key success factors (KSF's) Gold Fields would have
considered in making their decision. You will need the following
3.3.1 Define and explain the concept of KSFs 3
3.3.2 Identify and explain two industry KSFs Gold Fields would have considered in 6
their decision to unbundle Sibanye Gold. Use examples in your answer
3.4 Identify the corporate level strategy taken by Gold Fields when they decided 6
"to separate the Gold Fields portfolio of assets into two separate and
independent companies"
3.1.
The aim of industry analysis is understand the reason for variations in profitability over time
and, if possible, capitalise on them. In short, the purpose of industry analysis is to identify
opportunities and threats in the industry environment. The process of analysing the
environment includes two broad steps. First the industry must be defined, and second, it is
important to examine the relationships that shape the industry, and how they improve
profitability.
3.2.
Gold Fields has used the SWOT method to brainstorm, opportunities and threats in the
external environment and strengths and weakness in the internal environment. However just
producing a list of strengths and weaknesses has marked shortcomings in establishing a
strategy for the future that is aligned with the internal environment of the organisation. It is far
more useful to have a framework to conduct internal analysis, and in this regard, the analysis
of resources has been widely accepted in strategy literature. Resources in this context refer to
the assets, skills, and capabilities of which the organisation has control, also referred to as the
resource – based view (RBV).
The Gold Fields Management would have analysed the strategic importance of resources and
capabilities. Resources determine the strategic direction of the organisation. An
understanding of the distinctive resources and capabilities can help Gold Fields determine
what it is capable of doing, rather than focussing on what its current business is.
Resources are the primary source of profit for the organisation, and that would been one of
the main reasons that Gold Fields decided to unbundle their resources. Profitability is
determined by two factors, namely attractiveness of the industry in which the organization
competes, and its ability to establish a competitive advantage over its rivals. RBV can provide
significant insights as why some of the other mining companies had a competitive advantage
over Gold Fields.
Industry positioning alone does not explain the differences in profitability among similar
organisations with similar products in the similar industries.
The factors that determine the value of resources is determined by: the extent to which
resources are a viable source of competitive advantage, the extent to which such a
competitive advantage is sustainable over time, the extent to which Gold Fields is in a
position to appropriate the returns generated by resources, and the extent to which resources
can be exploited for future growth.
3.3.
Define and explain the concept of Industry Key Success Factors (KSF’s). (3)
The industry key success factors are factors in an organisation’s are factors in the
organisation’s external environment that determines the organisation’s ability to survive and
prosper. The key success factors apply to all organisations in an industry. We use the idea of
the key success factors as a way to understand the industry as a prerequisite to effective
business strategy.
Identify and explain two Industry Key Success Factors (KSF’s) Gold Fields would have
considered in their decision to unbundle Sibanye Gold. Use examples to support your
answer. (6)
Industry key success factors in mature and declining industries
Mature industries are characterised by low growth in demand, and will eventually decline.
This industry growth stage limits opportunities for differentiation factors as a source of
competitive advantage, and shifts them to cost based factors.
Mature Industry
Strategic Innovation
While mature markets offer few opportunities for product innovation, they do offer
opportunities for strategic innovation. Embracing new markets and adding products and
services that offer new but related functions present opportunities for strategic innovation.
There has been a great deal of change, much of which will play an instrumental role in the
future success of Gold Fields, both short term and long term. The first of these has been the
implementation of a new strategy that is focussed on cash generation and providing investors
with leverage to the price of gold. Gold Fields is determined to only pursue production growth
where it is supported by attractive cash returns.
Declining Industry
Leadership Strategy
This relates to the organisation’s ability to use competitive strengths to gain dominance in
remaining attractive segments where decline conditions are favourable, meaning that the
industry structure supports a hospitable, potentially profitable decline phase and where exit
barriers are low enough to allow less profitable competitors to exit. As a result organisations
successfully following a leadership strategy are able to retain their leadership in attractive
segments of the market, which provides a strong position for a successful harvest strategy in
future.
Gold Fields decided to phase out marginal production at their mines and to pursue low –risk,
high return near-mine growth opportunities. This decision led to the unbundling of mature
underground mines in South Africa and the creation of Sibanye Gold.
3.4.
Growth Strategy
Many organisations aim to grow their business, yet many organisations fail to achieve their
growth targets. When organisations have clear corporate goals and accompanying growth
strategies, their chances to successful growth is improved. Organisations can opt to grow
their portfolio of business through various strategies. Growth strategies are viable when
opportunities exist and the organisation is in the position to exploit them.
The South African mining industry had a very steady performance, but mining for Gold Fields
in South Africa has faced significant challenges which, in a large part, caused the group
attributable to production to decline. There was a tragic fire, as well as industry wide illegal
strike that further affected the lost production.
Gold Fields decided to phase out marginal production at their mines and to pursue low –risk,
high return near-mine growth opportunities. This decision led to the unbundling of mature
underground mines in South Africa and the creation of Sibanye Gold. Gold Fields is
determined to only pursue production growth where it is supported by attractive cash returns.
Question 4:
which RBV is based, the categories of resources and the determinants of
resource value.
4.2 Identify the market entry strategy vodacom is interested in. Refer to article 3
4.3 Apply the RBV framework for identify resources and capabilities to the 12
article. Consider the resource categories and the types of capabilities for
creating competitive advantage that are apparent from Vodacom's bid to
buy Neotel
4.1.write answer here… SG 7; TB 229
4.2. page 233 (L& V)
4.3. TB 230-235
Question 5:
5.1 Describe the concept of strategic leadership by considering decisions made 3

by Nissan CEO
5.2 Describe the following competencies and tasks of effective strategic 6
leadership in light of the nissan article.
5.2.1 The concept of necessity of strategic thinking
5.2.2 The building and use of core competencies
5.3 Describe 'organisational structure' and its role in strategy implementation. 4
Include the following:
a definition of an organisational structure
an explanation of its role in strategy implementation
5.4 Identify and discuss the strategic organisational design and structural 12
elements that formed part of decision making at Nissan: Include the
following:
a description of each element
your explanation of the decisions made by Nissan
references to the article
5.1.page 154 -155 study guide
5.2 page 417 (L &V) & 5.2.2 page 436 (L&V)
5.3.. page 462 (L&V)
5.4. page 463
Question 6:
6.1 Identify and describe the two types of strategic control methodologies 6
applicable to the article. Refer to the article
6.2 Advise Ministers Lindiwe Sisule and Collins Chibanne on the role of 11
organisational culture and rewards towards achieving a strategy. Include
examples from the article to support your answers to the following questions
6.2.1 Provide a description of organisational culture
6.2.2 Describe the purpose of rewards (financial and non-financial)
6.2.3 Discuss the impact of organisational culture and rewards on strategy
implementation
6.3 Ministers Lindiwe Sisule and Collins Chibanne may benefit from the use of 8
the Balance Score Card (BSC)
6.3.1 Briefly describe why a balanced scorecard may be beneficial in
implementing and controlling of their situation. Use examples from the
article
6.1. page 210 study guide
6.2. TB 119; 479; 473; 532; 506; 502-503; SG 171-174
6.3. page 119 (s/g)

Page 506 Louw and Venter 2013
Exam - Jan 2015
Question 1:
1.1 Discuss Mintzberg's view on the nature of strategy 7
1.2 Discuss what the following concepts encompass and specifically, their 9
importance for sustained organisational performance. Use examples to
support
1. Competitive advantage
2. Above-Average returns
3. Value-Creating capabilities
1.3 Distinguish between the inside-out and outside-in perspectives in analysing 9
strategy
1.1.
Strategy as a plan provides overall direction and a course of action. It views the strategic
decision making as a formal, logical, top-down structured process in which strategy is
formulated by means of a ration analysis of the organization, its performance and external
environment. As a plan, strategy formulation is a formal process of conception implemented
through organizational layers, structure and control systems. This approach seeks to attain a
match or strategic link between the internal organization capabilities and external
opportunities. This approach to strategy has been criticized for being too rational, top-down
management approach and for not being realistic enough. Strategy as a position concerns the
determination of particular products in particular markets as supported by Porter. It looks
down wards and outwards towards the external competitive market. Strategy as a perspective
refers to the organization’s way of doing things. Futures strategies are formed by adapting
past strategies based on the collective experience of individuals and the way of doing things
embedded in the cultural web of an organization. Strategy as a ploy refers to outwitting a
competitor. Strategy as a pattern concerns consistent behavior overtime. It needs to be
planned and this is the intended strategy as it looks ahead. As strategies evolve out of their
past, they are known as realized strategies.
1.2.
Competitive advantage.(pg 42 SG)
Is a component of strategic competitiveness and refers to the edge that an organization has
over its competitors. Competitive advantage may be achieved when the organization’s
products or services are perceived as having value determined by customer’s acceptance.
Simply put, competitive advantage is the ability of an organization to outperform its rivals.
When the organization implements value creating strategies that other competitors are unable
to duplicate or are too costly to imitate, it has achieved a competitive advantage. An
organization must have resources that are valuable, rare, costly to imitate and
non-substitutable to be competitive advantage.
Above-average returns.(pg39 SG)

These are returns in excess of what an investor expects to earn from other investments with a
similar amount of risk. This is also one of the ways that success is measured in strategic
management.
Value-creating capabilities.
1.3.
Inside-out perspective: Strategies should be designed and developed around the
organization’s resources, dynamic capabilities and strategic architecture goals and values to
take advantage of the opportunities in the external environment. This is known as the
strategic stretch. In this perspective, the organization utilizes its resources and dynamic
capabilities to achieve a competitive advantage or yield new opportunities. The
resource-based and dynamic capabilities form the basis of this perspective. It is a theoretical
perspective for understanding how competitive advantage is achieved in organizations and
sustained over time. The organization’s unique resources are used to implement value
creating strategies and exploit new market opportunities while considering the social and
environmental issues around the globe. In this rapidly changing environment, the emphasis
has shifted towards the organization’s capabilities rather than its resources. The
organization’s ability to stretch its resources and capabilities is dependent on the
organization’s strategic architecture. Dynamic capabilities are activities that strategic leaders
employ to integrate internal and external competencies to address rapidly changing
environments. The two viewpoints suggest that an organization’s unique resources and
dynamic capabilities are the critical link to sustained competitive advantage and
above-average returns.
Outside-in perspective: Strategies are designed and developed as determined by the market
needs and are based on an understanding of and response to the external environment. This
is also known as the market driven perspective. From this perspective the organization
identifies opportunities in the external environment, defines its competitive industry facilitated
by competitive intelligence and adapts its resources and dynamic capabilities to take
advantage of these opportunities which is known as strategic fit. The key to this perspective is
competing successfully in an attractive industry with the external environment as the strategy
initiator. This perspective suggests that average returns are earned when the organization
develops the internal resources and dynamic capabilities needed to implement strategies as
determined by the external environment. The external environment as the initiator of strategy
according to the outside-in perspective consists of the macroenviroment and industry
environment.
Question 2:
2.1 Why do you think "sustainable development" is a guiding theme in 3

competitive strategy
2.2 Distinguish between the concepts "discontinuous change" and "incremental 6
change" Use examples to support
2.3 In what way could the value chain be used to address social and 16
environmental issues associated with the core business activities? As part of
your answer you should
1. Identify and briefly describe the core business activities in a value chain
2. Provide two possible social and environmental issues associated with
each activity
2.1.write answer here… TB 50;
2.2.
Incremental change is change which evolves slowly in a systematic and predictable manner.
Discontinuous change is characterized by rapid shifts which are less predictable. Example is
revolutionary change. The use of internet has changed the way business is done,
communication and interaction. The contemporary business environment is characterized by
revolutionary, complex, dynamic and unpredictable change.
2.3.
Michael Porter introduced the value chain analysis concept in his 1985 book ‘ The
Competitive Advantage’ . Porter suggested that activities within an organisation add value to
the service and products that the organisation produces, and all these activities should be run
at optimum level if the organisation is to gain any real competitive advantage. If they are run
efficiently the value obtained should exceed the costs of running them i.e. customers should
return to the organisation and transact freely and willingly. Michael Porter suggested that the
organisation is split into ‘primary activities’ and ‘support activities’.
Value Chain Analysis is a three-step process:

1. Activity Analysis: First, you identify the activities you undertake to deliver your product or
service;
2. Value Analysis: Second, for each activity, you think through what you would do to add the
greatest value for your customer; and
3. Evaluation and Planning: Thirdly, you evaluate whether it is worth making changes, and
then plan for action.
Primary Activities
Inbound logistics : Refers to goods being obtained from the organisation's suppliers and to be
used for producing the end product.
Operations : Raw materials and goods are manufactured into the final product. Value is
added to the product at this stage as it moves through the production line.
Outbound logistics : Once the products have been manufactured they are ready to be
distributed to distribution centres, wholesalers, retailers or customers. Distribution of finished
goods is known as outbound logistics.
Marketing and Sales: Marketing must make sure that the product is targeted towards the
correct customer group. The marketing mix is used to establish an effective strategy, any
competitive advantage is clearly communicated to the target group through the promotional
mix.
Services: After the product/service has been sold what support services does the organisation
offer customers?. This may come in the form of after sales training, guarantees and
warranties.
With the above activities, any or a combination of them are essential if the firm are to develop
the "competitive advantage" which Porter talks about in his book.
Support Activities
Support activities assist the primary activities in helping the organisation achieve its
competitive advantage. They include:
Procurement: This department must source raw materials for the business and obtain the
best price for doing so. The challenge for procurement is to obtain the best possible quality
available (on the market) for their budget.
Technology development: The use of technology to obtain a competitive advantage is very

important in today’s technologically driven environment.
Technology can be used in many ways including production to reduce cost thus add value,
research and development to develop new products and the internet so customers have 24/7
access to the firm.
Human resource management: The organisation will have to recruit, train and develop the
correct people for the organisation to be successful. Staff will have to be motivated and paid
the ‘market rate’ if they are to stay with the organisation and add value. Within the service
sector such as the airline industry, employees are the competitive advantage as customers
are purchasing a service, which is provided by employees; there isn't a product for the
customer to take away with them.
Firm infrastructure: Every organisations needs to ensure that their finances, legal structure
and management structure work efficiently and helps drive the organisation forward.
Inefficient infrastructures waste resources, could affect the firm's reputation and even leave it
open to fines and sanctions.
Question 3:
3.1 Evaluate the Coca Cola's vision and mission statements in terms their 12
content
3.2 Comment on the link between the Coca Cola strategic direction and their 3
strategic priorities
3.3 Discuss the benefits of a clear strategic direction 6
3.4 Would you consider Coca Cola to be a sustainable organisation? 4
3.1.write answer here...TB 111-112
3.2. TB 5; 6; 7; 33; 102; 104; 118; 119; 123
3.3. TB118
3.4. TB 5; 33; 50; 51; 63-64-66; 80; 95; 534
Question 4:
4.1 Determine and describe the industry life cycle phase BHP. As part of your 8
answer:
Identify BHPs phase in the industry life cycle
Describe the industry life cycle phase
Motivate the reasons for your choice
Use examples from the case to support your answer
4.2 Identify and describe BHPs corporate strategy. Include: 8
The corporate strategy and its specific type and from
a description of core elements of this corporate strategy
provide examples from case study
4.3 There are many critics of the strategic choice to spin-off. Discuss and 9
critically evaluate the strategic choices made by BHP. Include
Apply the consideration and tools used to evaluate a strategic option
4.1.write answer here… TB 215;-216-217;223; 531
4.2. TB 27; 332-335; 362
4.3. TB 11; 16; 22; 143; 333
Ss
Question 5:
5.1 Describe the concept of strategic leadership 3

5.2 Describe what it means to be a "good leader" by identifying and describing 12
the competencies of effective strategic leaders
5.3 Discuss the role of strategic leaders in the "successes and failures" of 10
strategy implementation
5.1
Strategic leadership is defined as the leadership of entire organisations through influencing
people and providing a sense of direction for the achievement of a common goal, growth and
sustainability. Strategic leadership involves managing through others and influencing human
behaviour in order to achieve goals. The challenge strategy implementation imposes on
leaders is that of inciting commitment among internal as well as external stakeholders to
implement strategies and embrace change.
.
5.2.
Strategy implementation also requires that strategic leaders build and make use of the core
competencies or the organisation. Core competencies refer to those activities that the
organisation performs really well and may result in a basis of competitive advantage. Core
competencies include the following:
1. Strategic thinking is essentially the mental process of reasoning applied by an individual

to achieve success in any task. It is about reasoning, searching for ways to define the nature
of the strategic problem at hand and to resolve it appropriately. It requires that one first
identifies and knows that there is a problem, diagnoses the nature of that problem in order to
define and understand it and then on the basis of that, to formulate/conceive and implement a
solution to address the problem.
2. Emotional intelligence and behavioral complexity are crucial for effective leaders.
Daniel Goleman’s research on emotional intelligence is one of the most significant
contributions in the field of leadership. Whilst a high IQ and technical skills are also important,
emotional intelligence explains why someone with good, but not exceptional, intellectual and
technical skills sometimes makes a better leader than a highly intelligent, highly skilled
individual who is promoted into a leadership position and then does not live up to
expectations. Emotional intelligence includes aspects such as self-awareness, self –
regulation and motivation. These are self - management skills. Empathy and social skills
focus on the individual’s ability to manage relationships with other people.
3. Transformational leadership which needs to be exhibited more frequently than
transactional leadership if the leader is to improve the effectiveness of an organisation. It
consists of idealised influence, inspirational motivation, individualized consideration and
intellectual stimulation.
4. African leadership argues that if a leader is to be successful, he or she needs to adopt a
leadership style that is congruent with the prevailing values. In an interview with Mangaliso
and Nkomo (2001), Reuel Khoza stated that this African approach to management has to be
predicated on a set of values germane to an African existence. African existence is predicated
on African philosophies, African spirituality and African interpersonal relationship norms and
guidelines derived from African society. If we were to borrow an expression, we would say in
fact that there is a collective unconsciousness that people tap into that guides the manner in
which they relate to the world – in essence, a worldview. Khoza believes there is an African
worldview largely predicated on the ubuntu concept of humaneness or African humanism.
However, there is a bigger force – there is a God principle in it. Compassion is very important
and caring is very important.
5.3.
To engage successfully in a number of tasks a strategic leader must:
Set organisational direction – People play a crucial role in the implementation of strategy.
They are the only active resource so everything needs to be done to ensure that they buy into
the strategy and are committed to behaving in a manner supportive of the strategy.
Ensure the leadership necessary to drive the strategy – In implementing strategy, top level
executives need to ensure not only that they lead the process, but also that appropriate
leadership exists throughout the organisation at the various management levels. The leaders
in the organisation need to be able to understand and interpret the strategy in terms of
performance measures. The Balanced Scorecard is a useful tool for doing this.
Staff the organisation and manage social capital – The right people with the right skills need
to be available at the right time to work actively towards executing the strategy.
Build and use core competencies – There is a need to know what the organisation is good at
and to develop and use this competency to create competitive advantage.
Create organisational alignment – Organisations consist of a variety of different interacting

components. For the successful execution of strategy, it is important for these components to
be aligned with the strategy and that they interact as a unified whole.
Organisational culture and values – The culture, climate and values of the organisation need
to be aligned to and supportive of the strategy. The leadership of the organisation also needs
to be aware of these values and ought to ensure alignment with the organisational values.
Leadership and management of change – Organisations evolve and need to adapt to their
environment. This inevitably requires change in the organisation. The effective initiation and
management of change can change can determine whether or not the change initiative will be
successful.
Question 6:
6.1 Describe the concepts of organisational architecture and organisational 5
alignment in strategic implementation
6.2 Discuss any 4 components of the Lee, Venter & Bates (2004) model for 16
organisational architecture that are evident in the article. You should:
Identify the component, describe it and support your discussion with
examples from the article
6.3 Evaluate the existence (or lack of) of organisational alignment at Walmart 4
with examples
6.1.
Organisational architecture draws the leadership, the organisational structure,
resources, organisational culture, strategy and policies together. It is used to indicate
how these key dimensions of the organisation will be aligned to ensure successful
strategy implementation. Louw and Venter (2013:451) look at stakeholders,
capabilities, processes, organisational structures, systems, policies and procedures,
organisational culture and knowledge, skills and abilities. The style of management
adopted within the structure determines the strategic changes that take place, while
the overall corporate strategy of the organisation influences the choice of style.
6.2.
1. Capabilities are distributed to the various stakeholders through the different
organisational processes.
2. The structure/system, KSA’s (knowledge, skills and abilities) and technology
specific to each organisation shape these
processes, which are all in turn underscored by the organisational culture.
3. The integrated organizational architecture is a strategic response that draws
together key dimensions of the organization (such
include items as organizational structure, leadership, organizational culture, policies
and strategies, etc.) to guide strategic
planning and implementation.
4. It provides a blueprint of the internal and largely invisible workings of the integrated
organization.
6.3. TB 436; 444; 449; 480; 482
Exam - Jun 2015

Question 1:
1.1 Describe corporate governance in South Africa 10
Describe Corporate governance and identifying its key elements
Identifying and briefly the king codes of governance principles

Substantiating your answers with examples from the case study
1.2 Critically discuss the importance of corporate governance in SA and 15

leaderships role in establishing good governance. Support with examples
from Case Study
1.1.
The King Report of South Africa 2002; defined corporate governance as being concerned with
holding the balance between economic and social goals and individual and communal goals,
aimed at aligning as closely as possible the interest of individuals, corporations and society.
Corporate governance is the practice by which companies are managed and controlled,
encompassed by several key elements as discussed below:
● The creation and continuous monitoring of a system of checks and balances to
ensure a balanced exercise of power within a company.
● The implementation of a system to ensure compliance by the company with its
legal and regulatory obligations.
● The implementation of a process whereby risks to the sustainability of the
company’s business are identified and managed within agreed parameters.
● The development of practices which make and keep companies accountable to
the broader society in which they operate.
o From the discussions above, we can describe corporate governance in South Africa as:
● About the relationship between the board of directors and shareholders,
● About aligning the goals of individuals, society and corporations.
● About the internal control systems of an organisation at various levels.
● About the responsible leadership of organisations, namely leadership that is
transparent, answerable and accountable towards the organisation’s identified
stakeholders.
1.2. page 60 Study guide
Question 2:
2.1 Discuss the importance of analysing the environment and briefly identify and 8
discuss SWOT analysis variables that form part of FlySafair environments
2.2 Briefly describe the process for analysing the macro-environment and how 5
the process contributes to the strategic survival. Support your answer with
evidence from case study
2.3 Identify and critically discuss the FlySafair corporate and business level 12
strategies (Type and form) and evaluate the strategies’ appropriateness with
reference to environment-values-resources (EVR congruence)
2.1. write answer here...
2.2.
2.3.
Question 3:
3.1 Identify the industry competitive forces that impact on competitive advantage 13
in the e-commerce online market and briefly discuss the relationships that
exist between industry role players
3.2 Explain how scenario analysis contributes to strategic survival 3
3.3 Critically evaluate whether the joining of forces between takealot and 4
kalahari was a good strategic decision
3.4 Identify and describe the specific corporate level strategy chosen (type and 5
form)
3.1.write answer here...
3.2.
3.3.
3.4.
Question 4:
4.1 Motivate why Ninfa Saunders can be concidered and effective strategic 11
leader.
4.2 Discuss the 'Full Range' of leadership. Include 14
How transformational and transactional leadership compare and contrast
with visionary and managerial leadership
Reference from case study where the CEO demonstrates these types of
leadership
4.2.
Question 5:
5.1 The requirements for successful strategy implementation 5

5.2 How a tight culture strategy fit can support Shoprite's strategy 6
implementation
5.3 The following tasks of effective strategic leadership
5.3.1 The role of leadership in driving strategy implementation 4
5.3.2 How leaders position themselves to lead and manage change 4
5.4 Critically discuss the benefits of a balanced score card in supporting 6
strategic implementation as shoprite

5.2.
5.3.
5.4.
Question 6:
6.1 Identify and describe two types of strategic control methodologies applicable 6
to African bank in this case study
6.2 African Bank management requires "significant changes" to address their
situation
6.2.1 Identify the types of processes to achieve a strategy and discuss how 9
African Bank has or has not benefited from applying them
6.2.2 Identify the roles of policies and procedures in achieving a strategy and 5
motivate how they could support African Bank Management
6.2.3 Highlight the importance of risk management as part of strategic 5
performance management and control and motivate how it could support
African Bank Management
6.1. Assumption and implementation control (p 491-496 Louw 2013 Correct me, I’m not sure
about this one)
6.2.1
6.2.2
6.2.3.
Risk management can be defined as a process, affected by stakeholders such as the board
of directors management and employees to strategically identify potential events that may
affect the organisation and to manage risks identified to achieve the intended objectives..The
intended outcome of risk management is to reduce or eliminate the risk of some events from
occurring, or impacting the organisation to a large extent. Risk management requires the
following five steps:
(A) Identify risks and threats: Risk encountered in the organisation include operational risks,
financial risks, human risks, strategic risks, legal/regulatory risks, technological risks
(B) Assess organisational vulnerability to identified threats:When assessing the vulnerability
of the organisation to identify threats, it is important to classify risks, risk can be classified as:
Disruption-related risks
Specific effect risks
(C) Determine the consequences of specific threats:
(D) Compile a risk management reduction plan
(E) Priorities risk management procedures based on importance
Exam - Jan/Feb 2016
Question 1:
1.1 Explain how the concepts of above-average return, strategic 15
competitiveness, and competitive advantage are measurements
of strategic success for Distell Group Limited Do this by:-
● Describing each concept
● ldentifying two relevant examples per concept from the

Integrated Report
● Critically discussing how these measurements are utilised by
Distell
1.2 Explain the difference between wealth maximisation and profit 4
maximisation. Support your answer with two examples of wealth
maximisation from the Integrated Report
1.3. " . the only real opportunities for significant future growth he in 6
emerging markets in Africa, Asia and the Americas"
Critically discuss this comment by specifying the Importance of

emerging markets and the challenges associated with them
1.1.
1.2.
1.3.
Question 2:
2.1 Vision statements can be developed in many ways. Identify the most 9
likely approaches respectively followed by Saab Group and
Lockheed Martin in the development of their vision statements
Use theory to motivate your answer
2.2 Between Saab and Lockheed Martin, which vision statement 4
shows the most common shortcomings? Motivate your answer by
identifying three short-comings in that specific firm based on
applicable theory
2.3. One of the two mission statements clearly illustrate that the 7
applicable fmn differentiates itself from competition Critically evaluate
the mission statements of both firms in terms of the following:-
• product / service
• market
• technology
As part of your answer, clearly indicate whether Saab or Lockheed

Martin uses its mission statement to differentiate itself from the
competition
2.4. Explain the extensive purpose of a value statement, and indicate in 5
which way the value statement from Saab Group iS better than the
value statement of Lockheed Martin. Use theory to substantiate your
evaluation
2.1.
2.2.
2.3.
2.4.

MNG4801 Exam Prep-1

Uploaded by

Copyright:

Available Formats

You might also like

MNG4801 Exam Prep-1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MNG4801 Exam Prep-1

Uploaded by

Copyright:

Available Formats

●

MNG4801 Preparations: Previous Exam Questions and Answers

Exam - Jan 2011

Exam - Jun 2011

Exam - Jan 2012

Exam - Jun 2012

Exam - Jan 2013

Exam - Jun 2013

Exam - Jan 2014

Exam - Jun 2014

Exam - Jan 2015

Exam - Jun 2015

Exam - Jan 2011

1.1 ​ Competitive advantage. (pg 42 SG)

1.2.​ ​ ​Corporate governance. (pg 55 & 56 SG)

1.3. ​Deliberate strategy. (pg 18 TB)

1.4. ​Emergent strategy. (pg 18 TB)

1.5. ​E-V-R congruence:

1.6. ​Industry Life Cycle. (pg 114 SG, pg 215 TB)

1.7. ​Organizational architecture. (pg 452 TB & pg 199 SG)

1.8. ​Scenario planning. (pg 185 TB)

1.9. ​Stakeholder engagement

1.10. ​Wealth maximization. (pg 37 SG)

2.1 Define Corporate Citizenship and Sustainable development 8

Corporate Citizenship means developing mutually beneficial, interactive and trusting

3.1 Define and explain competitive advantage 10

The opportunity for companies to sustain competitive advantages is determined by their

2. Business level strategy:

Text book Chapter 8

8.5 Evaluating Strategies

4.1 Explain the concept of value chain analysis 8

Technology development: The use of technology to obtain a competitive advantage is very

5.1 Define how to measure leadership qualities of a company ie capabilities and 15

​ eveloping social capital​. The human resource

Successful strategy implementation requires many changes in the organisation and

6.1 Identify the different strategic management stages 18

Key Strategic Planning Strategic Strategic Control

Focus Focuses on effectiveness. Focuses on efficiency. Focus on forecasting

6.2. ​Key barriers and reasons associated with unsuccessful strategy

9 out of 10 organisations fail to implement planned strategies, and as little as 10% of

The ​problems (barriers)​ of successful strategic implementation are​:

The reasons why strategy implementation fail may include:

Exam - Jun 2011

Business level strategy

Functional level strategy

2.1 Formulate a vision statement, along with an evaluation of the statement 7

2.1. Vision statement should:

2.2. Mission: Defines the fundamental purpose of an organization or an

3 Opportunity-driven strategy depends upon an ability to manage, and to 25

Page 421 Louw and Venter 2013.

5.1. write answer here...

6 Discuss the five drivers of strategy implementation. Your discussion should 25

(Study guide p 145)

Leadership (Study Guide, page 155 – 156)

Resource allocation (Study Guide, p 192)

O​rganisational architecture, systems and processes (Study Guide p 199)

Exam - Jan 2012

1.1. ​Sustainable organisation

1.3. ​Business case for responsible corporate behavior:

1.1 Competitive advantage. (pg 42 SG)

1.2. Corporate governance. (pg 55 & 56 SG)

1.3. Deliberate strategy. (pg 18 TB)

1.4. Emergent strategy. (pg 18 TB)

1.5. E-V-R congruence:

1.6. Industry Life Cycle. (pg 114 SG, pg 215 TB)

1.7. Organizational architecture. (pg 452 TB & pg 199 SG)

1.8. Scenario planning. (pg 185 TB)

1.9. Stakeholder engagement

1.10. Wealth maximization. (pg 37 SG)

eveloping social capital. The human resource

6.2. Key barriers and reasons associated with unsuccessful strategy

The problems (barriers) of successful strategic implementation are:

Organisational architecture, systems and processes (Study Guide p 199)

1.1. Sustainable organisation

1.3. Business case for responsible corporate behavior:

Stakeholder management within businesses, organizations, or projects prepares a s trategy

2.2.2. (Louw and Venter, p 230)