AccountingQueen
$16/per page/Negotiable
022.82.5 NORTH-WEST UNIVERSITY YUNIBESITI YA BOKONE-BOPHIRIMA NOORDWES-UNIVERSITEIT POTCHEFSTROOMKAMPUS Requirements for this paper: Multi choice cards: D Non-programmable calculator: Graphic paper: D Laptop: EXAMINATION: JUNE 2013 []] D Open book examination @ QUALIFICATION: MBA MODULE CODE: PBSC812 DURATION: 4 HOURS DESCRIPTION: STRATEGY FORMULATION & IMPLEMENTATION MAX: 100 EXAMINER: PROF RA LOTRIET DATE: 03/06/2013 MODERATOR: DR MARGIE CULLEN TIME: 09:00-13:00 Nelson Mandela Metropolitan University LET WEUPLEASE NOTE: THIS IS AN OPEN BOOK EXAMINATION/HIERDIE IS 'N OOPBOEK EKSAMEN. lnstructions/lnstruksies: Beantwoord aile vrae I Answer all the questions Toon aile berekenings ten aile tye baie duidelik I all calculations must be clearly indicated Geen opstelle - skryf feitelik en ooreenkomstig 'n struktuur I No essays- write factual and according to a structure Bronverwysings van navorsing (anders as die voorgeskrewe bron) I List all the sources other than the prescribed textbooks which you consulted QUESTION 1NRAAG 1: [20] Choose the one best answer from each of the various options presented to you. Only write down the option that you have chosen I Kies die een beste antwoord van elk van die verskeie opsies aangebied. Skryf slegs die opsie neer wat jy gekies het (1 ). A company's business model A) sets forth management's game plan for maximizing profits for shareholders. B) details exactly how management's strategy will result in the achievement of the company's strategic intent. . C) explains how it will achieve high profit margins while at the same time charging relatively low prices to customers. D) sets forth the key components of the enterprise's business approach, indicates how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner. E) sets forth management's long term action plan for achieving market leadership. (2). Which one of the following questions is not pertinent to company managers in thinking strategically about their company's directional path and developing a strategic vision? A) Is the outlook for the company promising if it continues with its present product-markettechnology-customer focus? B) Are changing market and competitive conditions acting to enhance or weaken the company's prospects? C) What business approaches and operating practices should we consider in trying to implement and execute our business model? D) What are our ambitions for the company-what industry standing do we want the PBSC812 1/5 02.2.826 company to have? E) What, if any, new customer groups and/or geographic markets should the company get in position to serve? (3). In analyzing the strength of competition among rival firms, an important consideration is A) the potential for buyers to exercise strong bargaining power. B) the diversity of competitors in terms of visions, strategic intents, objectives, strategies, resources and countries of origin. C) the number of firms pursuing differentiation strategies versus the number pursuing lowcost leadership strategies and focus strategies. D) the extent to which some rivals have more than two competitively valuable competencies or capabilities. E) whether the industry is characterized by a strong learning/experience curve and whether the industry is composed of many or few strategic groups. (4). A company requires a dynamically evolving portfolio of resources and capabilities to A) assist the strategic planning team in overall direction. B) sustain complex manufacturing systems as a strategic recoil. C) sustain its competitiveness and help drive improvements in its performance. D) sustain benefits of high market share as an interest in growth strategies. E) transform knowledge into a management style supporting competition in a globally diverse world. (5). A company attempting to be successful with a broad differentiation strategy has to A) study buyer needs and behaviour carefully to learn what buyers consider important, what they think has value, and what they are willing to pay for. B) incorporate more differentiating features into its product/service than rivals. C) concentrate its differentiating efforts on marketing and advertising (where almost all differentiating features are created). D) have a widely known and highly respected brand name image. E) provide a top-of-the-line product and sell it at premium prices. (6). In which of the following cases are late-mover advantages (or first-mover disadvantages) not likely to arise? A) When the costs of pioneering are much higher than being a follower and only negligible learning/experience benefits accrue to the pioneer B) When the marketplace is skeptical about the benefits of a new technology or product being pioneered by a first-mover C) When the pioneer's products are somewhat primitive and are easily bested by late movers D) When opportunities exist to invent a new industry or distinctive market segment that creates altogether new demand E) When technological change is rapid and fast-following rivals find it easy to leapfrog the pioneer with next-generation products of their own (7). One of the big risks of competing in foreign markets is A) the extent to which the advantages of exporting goods from a particular country can be wiped out when fluctuating exchange rates result in that country's currency growing much weaker relative to the currencies of the countries to which the goods are being exported. B) whether the economies of foreign countries will continue to grow at double digit rates. C) the fact that some countries have lower wage rates than others. D) the potential for local government officials to reduce tariffs on the imports of its goods into their country. E) the extent to which the advantages of manufacturing goods in a particular country can be wiped out when fluctuating exchange rates result in that country's currency growing stronger relative to the currencies of the countries where the output is being sold. (8). The three tests for judging whether a particular diversification move can create value for PBSC812 215 022827 shareholders are A) the attractiveness test, the profitability test, and the shareholder value test. B) the strategic fit test, the competitive advantage test, and the return on investment test. C) the resource fit test, the profitability test, and the shareholder value test. D) the attractiveness test, the cost-of-entry test, and the better-off test. E) the shareholder value test, the cost-of-entry test, and the profitability test. (9). The major drivers of unethical managerial behaviour include A) greed, atheism, pervasive managerial immorality, and a general lack of scruples on the part of top executives regarding how customers and suppliers should be treated. B) ethically corrupt corporate cultures, heavy pressures on company managers to meet or beat performance targets, and overzealous pursuit of personal gain, wealth, and other self interests. C) widespread managerial belief in the ethical relativism school of thinking. D) an aversion to ethical correctness on the part of top executives and a belief that unethical behaviour is unimportant and probably won't be discovered. E) intense competitive pressures. (10). Ultimate responsibility for seeing that strategy is executed successfully primarily falls upon the shoulders of A) a company's chief executive officer, its chief operating officer, and the heads of major units (business divisions, functional departments, and key operating units). B) first-line supervisors who have day-to-day responsibility for seeing that key value chain activities are done properly. C) the company's board of directors because board members are the final authority in overseeing and conducting daily operations. D) a company's whole management team-each manager is responsible for attending to what needs to be done in his/her respective area of authority and thus should be held accountable for success or failure. E) all company personnel because all employees are active participants in the strategy execution process and the caliber of their actions have a huge impact on the ultimate outcome. QUESTION 2NRAAG 2: CASE STUDY: NINTENDO's STRATEGY - THE ONGOING BATTLE WITH MICROSOFT AND SONY (CASE 6) (see the Appendix of this exam paper) [80] Study the case study and then answer all of the following questions accordingly- I Bestudeer die volgende gevallestudie noukeuring en beantwoord die volgende vrae daaroor- 1 (a). What are the defining business and economic characteristics of the video game console industry? (b) What is the industry like? (1 0) 2(a). What is competition like in the video game console industry? Do a five-forces analysis to support your answer. Which of the five competitive forces is strongest? Which is weakest? (b)Would you characterize the overall strength of competition in video game consoles as fierce, strong, moderate to normal or weak? Why? (10) 3(a). What forces are driving changes in the video game console industry? (b) Are these driving forces acting to make the industry more or less competitively intense? (use Porters PBSC812 3/5 022828 diagrammatic model to illustrate your answers here) (c)Are the driving forces acting to make the industry more or less profitable in future years? (1 0) 4. What key factors determine the success of video game console developers like Nintendo? (5) 5(a). What is Nintendo's strategy? Which of the five generic strategies discussed in the course is Nintendo using? (b)What are some of the recent offensive and/or defensive strategies that Nintendo has employed? Have these tactics been successful? (5) 6. Is it fair to characterize Nintendo's introduction of the Wii as a blue ocean strategy? Why or why not? (5) ?(a). How well is Nintendo's strategy working in terms of the financial performance it is delivering? (b)Should shareholders be pleased? Why or why not? (c)What weaknesses do you see in Nintendo's financial performance? (10) 8(a). What does a SWOT analysis reveal about the attractiveness of Nintendo's overall situation? Is the company's competitive position as solid as top management seems to believe? (b)Does the company have a competitive advantage? If so, what is the basis for this competitive advantage and is the advantage sustainable? (1 0) 9. What does a competitive strength assessment (as per schedule I table) reveal about whether Nintendo has a competitive advantage? (1 0) 10. What recommendations (number them with a heading) would you make to Nintendo to improve its competitiveness in the video game console industry and to maintain its favourable positioning vis-a-vis Microsoft and Sony? (5) TOTAL: 100 APPENDIX: THE NINTENDO CASE PBSC812 415Â