FINAL EXAMINATION

APRIL 2021

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COURSE TITLE : PRINCIPLES OF MANAGEMENT

COURSE CODE : BAGB1013
31 JULY 2021 TO 31 JULY 2021 /
DATE/DAY :
SATURDAY TO SATURDAY
TIME/DURATION : 09:00 AM - 01:00 PM / 4 HOURS

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INSTRUCTIONS TO CANDIDATES :

1. This is an open book examination. You are also allowed to access the internet to seek information and do relevant analysis.
However UNITAR Plagiarism rules still apply. Further details specific to your course can be found inside the question paper
(page2).
2. You are not allowed to discuss with anyone during the examination.
3. You are required to submit your examination answers through UNIEC Virtual Exam.
4. Save your examination answer as a file using your student ID as file name and Course Code. Example: If your ID is
'‘MC200710001" and the course code is BAGB1013, you may save your file as: MC200710001 BAGB1013.
5. Go to section: Examination submission. Upload your examination answer file and click “submit” button.
6. Ensure that you have read your answers carefully and have done grammar and spell checks before submission.

(This Question Paper consists of 4 Printed Pages including the front page)

***DO NOT OPEN THE QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO***
Principles of Management (BAGB1013) CONFIDENTIAL
April 2021 Final Examination

INSTRUCTION:

1. This is an open book exam. However, you are not allowed to discuss with anyone during
the exam.

2. You may refer to the learning materials that are provided in UNIEC Virtual, your own notes,
and the main, as well as the additional reference book (s) listed in the course plan. At the
same time, you are permitted to carry out online research where necessary. However, you
are not to plagiarize the content of your source of references. Marks will be deducted for
plagiarism as this is a serious offence.

3. Your answer must be type-written directly onto the ANSWER BOOKLET provided.

4. You have the sole responsibility to make sure that the file you have uploaded is the
complete FINAL version of your answer as no resubmission or correction will be granted.

5. Submit your answers in ONE (1) MICROSOFT WORD file. Other forms of file such as PDF
or Microsoft Excel will not accepted.

6. This question book consists of TWO (2) sections. You must answer ALL questions in the
Answer Booklet.

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Principles of Management (BAGB1013) CONFIDENTIAL
April 2021 Final Examination

SECTION A: SHORT ANSWER (30 MARKS)

There are THREE (3) questions in this section. Answer ALL questions in the Answer
Booklet provided.

1. Describe Lewin’s three-step change process. Explain with TWO (2) points how it is
different from the change process needed in the whitewater rapids metaphor of
change. (10 Marks)

2. a) Briefly explain the SIX (6) key elements in organizational design. (3 Marks)

b) Discuss the traditional and contemporary views of any TWO (2) of the six key
elements of organizational design. (2 Marks)

c) Explain with TWO (2) points why changing organization’s structure can quickly
be a disadvantage to organizations. (5 Marks)

(Total: 10 Marks)

3. In this scenario, you are a fresh graduate and a new manager at Bhevy Corporations.
Your predecessor, who was with the company for 37 years, is retiring and you are the
replacement. The workforce is made up of employees from 19 to 62 years of age.
Lilian, who has been in the organization for more than 10 years is your vocal critic. As
an older employee her opinion carries a lot of weight with other employees. Discuss
and explain any TWO (2) leadership style you should choose in this situation.
(10 Marks)

SECTION B: CASE STUDY (20 MARKS)

There are THREE (3) questions in this section. Answer ALL questions in the Answer
Booklet provided.

Read the following case study and answer the questions.

From a Grocery Stall to an Empire

Mapping a New Direction

With nearly 500, 000 employees and annual revenue exceeding €55 billion in 2017, Tesco
is one of the largest British multinational grocery retailers. The company has over 3,400
stores in many parts of the United Kingdom and operates in 11 other countries around the
world. Tesco was founded in 1919 by Jack Cohen, who started out setting groceries from a
stall in East End in London. He opened his first successful Tesco store in 1929 in Edgware
in North London and, in just a few years’ time, expanded to several other areas in the city.

To this day, Tesco has always looked for the best sites for its store locations and has
continued to buy out its competition over the years, including a mammoth purchase of T &
S’s 850 convenience stores in 2002. Today, thanks to an aggressive yet well-planned
expansion in the United Kingdom, Tesco has been able to become its number one grocery
store with a market share nearing 30 percent of the grocery sector. Tesco’s expansion
strategy helped in establishing a strong and powerful presence on the ground and

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Principles of Management (BAGB1013) CONFIDENTIAL
April 2021 Final Examination

importantly, created a greater reach to its customer across many parts of the United
Kingdom.

Underpinning Tesco’s goals of aggressive expansion is a rigorous intelligence system that

allows the retailer to use data to select the best sites and to accurately understand its
customer base and their needs. Armed with strong business intelligence capability, Tesco
is better able to customize its product offerings and prices to meet different kinds of
customers under the same roof, ranging from “value” products, launched in 1993 for the
price-sensitive customer to “finest” launched in 1998 for the upper-class customer. In fact,
the old strategy that had served the store in its early years was beginning to hurt the retailer,
as customers became more selective in their choices and continual low prices were putting
pressure on the company’s profits just as it had to expand. Therefore, Tesco revitalized its
brand with some more emphasis on customer service and quality while keeping its original
value-for-money tradition.

Creativity was also another factor contributing to Tesco’s success. The retail giant is widely
considered the most innovative in its industry. Tesco’s product offerings have grown from a
store selling groceries to a superstore where customers can virtually find anything from
electronics, to homeware, to clothing, to beauty products, and mobile phones. It also
launched its first petrol station back in 1973 and ventured into various other types of
businesses over the years, including coffeeshop, banking, and electronics. In addition to its
varied product offerings, Tesco also leads the way in its online presence thanks to its e-
commerce website, which first opened in year 2000 and currently serves more than 500,000
customers each week. Finally, Tesco is also an innovator in its store concepts, opening
different types of stores (such as Tesco Express) based on the different market needs.

However, things have not always been rosy for the giant retailer. In 2014, Tesco reported
the biggest loss in its history: £6.4 billion, pre-tax. Analysts primarily blamed over-ambitious
international expansion plans that put great pressure on costs and diverted the company’s
attention away from its local market. Further, Tesco is facing strong local competition from
low-cost chains such as Aldi and Lidl. In response, Tesco embarked on a sweeping set of
low-cost measures, including massive lay-offs and sales of it low-performing businesses
locally and internationally. It also improved its customer service experience in many of its
stores and reexamined its prices. The efforts paid off. In 2018, Tesco posted its highest
growth in seven years and reported a pre-tax profit of £1.3 billion. Moreover, as part of its
new plans, Tesco just completed its takeover of Booker Group which is the largest food
wholesaler in the Untied Kingdom, potentially giving the retailer even more access to new
customers and increasing its market share.

Source: Robbins, Coulter and De Cenzo (2020). Fundamentals of Management, 11th Edition (Global Edition), Pearson
Education Limited. Page 238

a. Based on the case study, describe the TWO (2) planning that were used by Tesco to
grow from a small grocery store to an Empire. (5 Marks)

b. Explain FOUR (4) strategies that Tesco had taken in the case study to win the markets.
(10 Marks)

c. Discuss Tesco’s renewal strategy. Explain with TWO (2) points, how you would change
the strategy. (5 Marks)

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