Strategic Management Exam Paper for BSC (Hons) Business Management

This exam paper covers topics such as defining strategy, prescriptive and emergent approaches, PESTLE analysis, and Porter's Five Force Model for assessing competitiveness of the organization. It is for the Strategic Management module (BMP6002) in Semester 1 of the 2021/22 academic year.

BSC (Hons) BUSINESS MANAGEMENT
SEMESTER 1, EXAMINATION 2021/22
STRATEGIC MANAGEMENT
MODULE NO: BMP6002
Exam Paper Release Date & Time: Saturday 30 July 2022 at 10:00am
Submission Cut-off Date & Time: Monday 01 August 2022 at 10:00am
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ANSWER BOOKLET
All the pages of the answer booklet should be submitted including blank ones.
Please type your answers in the spaces provided.
Insert additional pages where required.
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[Section 1: Compulsory Question]
Answer to the Question no. 1
(a) Define strategy
Strategy: it refers to the process of plans of action which the organization or the individual person
form in order to accomplish the personal as well as professional goals in effective as well as
efficient manner (Marr and Roos, 2020) . Due to that the organization is able to save and get
success in domestic as well as international marketplace for the long period of time. In general, it is
considered as the guidance which is set for the organization to deal with the forthcoming
challenges. For the formation of the best strategy the manager of the organization considered the
factors of micro as well as macro analysis in an appropriate way. Due to that the company is able to
deliver the competitive advantages in the marketplace and increase the profitability and productivity
of the company.
(b) Two types of approaches
Prescriptive approaches: this is one of the effective approach in which the objective, mission,
vision, core values of the organization or the performance is determined before the formation of the
plans of action in order to accomplish them in effective as well efficient manner. With the support
of this strategy the organization is able to focus on the successes of the business. The prescriptive
approach allows the organization to lead the marketplace. Along with that the company is able to
define the objective and aim of the association to the workers. Due to which the individual person is
working in the association are able to develop better understanding with each other’s (Davies and
Walters, 2020) . This approach improves the process of hierarchy and clarify to the employees
whom to report and answerable as the workers are having proper transparency in the culture of the
association. Basically it will become easy for the manger or the working people to find out the
solution of the problems associated with the organization for the expansion of the business and
deliver the comparative advantages. On the other hand, it has some disadvantages that is if the
manger determines the wrong objectives of the company then the association are not able to drive
the success and compete the task in an appropriate manner. Basically it is a way of mapping the
plan for the increasing the factor of the growth.
Emergent approach: this is also recognized as the strategy which is formed for the short period of
time and not for accomplishing any goal or the objectives of the company or the individual person.
As per this approach the manager of the company develops certain plans of action on the regular
basic ort as per the requirement of the situation. Due to which the people working in the origination
face certain confusion and increase the flexibility in the performance of the work. With the
assistances of this approach the members of the origination are prewired for the changes in the
culture and prepared themselves to deal with the upcoming changes or the challenges in an
appropriate manner. The organization drive implicates opportunities for the survival and success of
the company. The objectives of forming the strategies are not fixed or set by the authority and leads
to transparency issues while completing and accomplishing the work. For the formation of actual
plans of action, the organization deliver right to the workers to initiate some experiment in order to
deliver upcoming issues. As it is implemented on the different time it brings he innovation and
creativity at the workplace (McDermott and O'Connor, 2022). Also it is responsible for improving
the culture of the origination and bring the positivity among the people of association. Basically it
empowers the workers of the origination to increase the profitability and productivity of the
company as customers motivate each and every individual person with the unique ideas or ways. it
is not planed strategy due to which the manger or the senior’s stakeholders of the origination are not
able to determine the result or the consciousness of the adopted strategy. It is unplanned strategy
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which is also adopted by many associations in order to follow all the market trends and lead the
marketplace.
For example, the Tesco is one of the leading origination which used the perspective approach for
the welfare of the company in which three manger determine the objective before formation of the
stray in an appropriate manner. On the other hand, the Sainsbury used the emergent strategy form
meeting the goals of the company and follow all the market trends in adequate manner.
[Section 2: Answer any TWO questions from four questions
given (2, 3, 4, & 5).]
Answer to the Question no. 3
The key external environment factors are analysed through pestle analysis framework. These
key elements are political, economic, social, technological, legal and environmental factors. There
are various advantages associated with adapting to this framework. To begin with the fist benefit is
that it a very simple framework. With this the understanding of the organizational management in
relation to the wider aspect of business environment is facilitated. The strategic and external
thinking of the company regarding the development get encouraged and enhanced. Further it
enables the organization like Tesco to predict the potential threats to the business that can harm the
overall functioning of the company and its profitability. Actions can be taken on time to avoid or
minimize the effect of such factors over the functioning of the company. The opportunities
available in the market that can be captured by the company to have its maximum benefits by the
effective exploitation of such opportunity (Thomas and et.al., 2021).
Pestle analysis supports the strategic business planning of the Tesco, by providing
contextual information regarding the direction for the business activities, brand position, targets for
the growth and related risks to the productivity of the company. It helps the organization in
determining the performance of the existing goods and services and description of the development
of new product. further the another advantage is that it supports in planning for the workforce of
Tesco. The destructive changes that might occur in the future of the company gets highlighted with
this model before handed, hence enables the firm to prepare its workforce in response to such major
changes. The skill gaps are identified along with the job roles both new or any reductions to be
made to the existing ones. Marketing planning is another advantage of pestle analysis. The element
of climate is included in the environmental factor of the frame work. It helps in prioritising the
activities of company in a way that enables it in accomplishing its marketing objectives timely.
Product development is another such reason which makes the pestle framework important for the
organization like Tesco. The social factor of the model includes the element like preferences of the
consumers, change that may occur in their tastes etc. so the organization gets benefitted to sustain
its growth and profitability by developing its products in accordance to the preferences of the
buyers.
The changes that takes place in the organization are easier to understand as they are taken on
the basis of certain responses that are essential for the organization (Mihailova, 2020). Cost
effectiveness is also an advantage of pestle analysis. The framework cost to the company only in
terms of time, there is no monetary cost involved in using such a framework. Better and deeper
understanding is another such benefit. All the external factors affecting the business are covered
under this analysis model making it easier for the company to have deep understanding of such
factors. Company can alter the development of its products and the overall structure of the company
with respect to the trends of the market outlined from the external factors of the business. The
aspects on which alteration can be made are the products, marketing plans of the company, its
relationships with its customers. The opportunities that exist in front of the effective exploitation of
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which can result in earning better amount of profits and improving brand image gets highlighted.
The example to this can be introduction of a new technology in the market being identified with the
analysis of technological factor can benefit Tesco in adapting to it within the company making it to
effectively capture the increasing customer needs.
Answer to the Question no. 5
5. Porter’s Five Force Model for assessing competitiveness of the organization
Porter’s Five Force Model is defined as analysing and framework for the company’s
competitive environment at large scale. This is the model which helps in describing the concerns
related to the competitiveness related to the growth and development of the company which is
Tesco (Bruijl and Gerard, 2018). The model helps in explaining the concerns regarding the aspects
related to the competitiveness which is analysed in the market. The external and internal
environment of Tesco will be analysed through the perspectives of growth. There are five major
elements which are described as below –
Bargaining Power of Buyers – The number of buyers in the market depict the growth and
development of the product and what are the concerns related to how the product is bought by the
customers in the market at large scale. The buyer switches from one supplier to another if they find
the products and services of Tesco not satisfactory. The bargaining power of buyers/customers
helps in describing the concerns related to growth and engagement of the customers at large scale.
This is the major part where the customers are either satisfied with the product or services at large
scale significantly (Ye and et.al., 2020).
Bargaining Power of Suppliers - The bargaining power of suppliers helps in indicating that how it
is easy for the suppliers to drive the prices in the market for the product and services of Tesco. The
major number of suppliers are being analysed and are identified in the market along with size and
strength of the suppliers at large scale. The cost of switching of one supplier to another depends on
the quality and promotion of the product which is made in the market at large scale and this is also
depicted by the price which is being seen and analysed significantly.
Threat of new entrance - The extent of current force is low because of major requirements when a
company plan to enter into new sector such as retail, where TESCO is existing and running ventures
rapidly (Hine and et.al., 2018). By applying porter's five forces model, the attractiveness of
industries or markets may easily determine. In case of chosen company, the extent of threat of new
entrance determine that is low in level. It may provide a lot of benefits to supermarket, in term of
managing and maintaining organizational performance, which is not that easy for any company to
do that. It may lead to generate more revenue and profitability.
Threat of substitute product and service - The extent of this factor is also low, because the value of
substitute items in the market is not that much, as customers always prefer to purchase quality and
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good quantity of products. Tesco is one of those supermarkets that may hold both type of features,
and because of that thing, it may gain competitive advantages. It may enable firm to reach desire
outcomes and provide benefits to each stakeholder, either internal or external in effective and
appropriate manner, without making any mistake.
Competition between existing companies - The degree of this force is high, as each organization in
the world of business such as retail world tends to give tough competition. It may lead to increase
the competitiveness or competitive environment in the market, which is not suitable for TECSO
sales. It may drive the attention of company toward forming new strategies and plans that help to
sustain for longer in the market.
Review TESCO strategy –
On the bases of above analysis, it can be review that organization may take approach to
implement a strategy such as business expansion. It may help to achieve the aim, either long and
medium term, for purpose of building positive brand image worldwide.
Reference List (if Any)
Bruijl, D. and Gerard, H.T., 2018. The relevance of Porter's five forces in today's innovative and
changing business environment. Available at SSRN 3192207.
Davies, H. and Walters, P., 2020. Emergent patterns of strategy, environment and performance in a
transition economy. Strategic Management Journal, 25(4) pp.347-364.
Hine, K.A. and et.al., 2018. What were they thinking? Factors influencing police recruits’ decisions
about force. Policing and society.
Marr, B. and Roos, G., 2022. A strategy perspective on intellectual capital. In Perspectives on
intellectual capital (pp. 28-41). Routledge.
McDermott, C.M. and O'Connor, G.C., 2020. Managing radical innovation: an overview of
emergent strategy issues. Journal of Product Innovation Management: an international
publication of the product development & management association, 19(6) pp.424-438.
Mihailova, M., 2020. The state of agriculture in Bulgaria-PESTLE analysis. Bulgarian Journal of
Agricultural Science. 26(5). pp.935-943.
Thomas, P. J. M. and et.al., 2021. A PESTLE analysis of solar home systems in refugee camps in
Rwanda. Renewable and Sustainable Energy Reviews. 143. p.110872.
Ye, N. and et.al., 2020. A bibliometric analysis of corporate social responsibility in sustainable
development. Journal of Cleaner Production. 272. p.122679.
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