INFIDENTIAL / SULIT rsiti TUN ABDUL RAZAK FINAL EXAMINATION AUGUST 2010 COURSETITLE : COURSECODE : DATEIDAY TIME/DURATION FUNDAMENTALS OF STRATEGIC MANAGEMENT SMB3024 10 DECEMBER 2010 / FRIDAY 09:00 AM - 12:00 PM/ 3 HOURS TRUCTIONS TO CANDIDATES : Please read the instruction under each section carefully. Candidates are reminded not to bring into examination hallroom any form of written materials or electronic gadget except for stationery that is permitted by the Invigilator. Students who are caught breaching the Examination Rules and Regulation will be charged an academic dishonesty and if found guilty of the offence, the maximum penalty is expulsion from the University. (This Question Paper consists of 12 Printed Pages including front page) “DO NOT OPEN THE QUESTION PAPER UNTIL YOU ARE TOLD TO DO So**+" Fundamentals of Strategic Management (SMB3024) CONFIDENTIAL ‘August 2010 Final Examination SECTION A: SHORT ANSWER (20 MARKS) There are FOUR (4) questions in this part. Answer ALL questions in the answer booklet. Question 1 Figure 1: Mission statement of L'Oreal “At L'Oreal, we believe that lasting business success is built upon ethical standards which guide growth and on a genuine sense of responsibility to our employees, our consumers, our environment and to the communities in which we operate. * Based on the above Figure 1, identify TWO (2) elements of a good mission statement which are missing from the mission statement. Briefly explain why the two elements that you have identified should be included in the mission statement. (6 Marks) Question 2 Based on the information given in the Figure 2 below, develop a SPACE Matrix for Yahoo! Inc. What type of strategy should Yahoo! Inc. pursue? (6 Marks) Figure 2: Strategic position of Yahoo! Inc. Financial Stability (FS) Environmental Stability (ES) Return on Investment 6 Unemployment 5 Leverage 5 Technological Changes 3 Liquidity 6 Price Elasticity of Demand 3 Working Capital 6 Competitive Pressure 2 Cash Flow 6 Barriers to Entry 6 Financial Stability (FS) Average 5.8 Environmental Stability (ES) Average Competitive Stal (cS) Industry Stability (IS) Market Share “1 Growth Potential 6 Product Quality -1 Financial Stability 5 Customer Loyalty -2 Ease of Market Entry 2 Competition’s Capacity Utilization -2 Resource Utilization 5 Technological Know-How -2 Profit Potential 6 Competitive Stability (CS) Average -1.6_ Industry Stability (IS) Average 48“Fundamentals of Strategic Management (SMB3024) CONFIDENTIAL ‘August 2010 Final Examination ‘ Question 3 Describe the FIVE (5) steps required for effective product positioning, (6 Marks) Question 4 Discuss the different perspectives and concerns of the Balanced Scorecard. (5 Marks) SECTION B: CASE STUDY (30 MARKS) There are TWO (2) questions in this part. Answer BOTH questions in the answer booklet. The TWO (2) questions in this part are based on the case provided in Appendix A. Question 1 Perform external and internal analyses on Starbucks Corporation. Summarize the findings of your analyses in any TWO (2) of the following matrices: (20 Marks) a) Internal Factor Evaluation (IFE) Matrix b) External Factor Evaluation (EFE) Matrix c) Competitive Profile Matrix (CPM) Question 2 Using ONE (1) of the strategy selection tools, recommend the optimal strategy for Starbucks Corporation. [You may select ONE (1) of these selection tools: SWOT Matrix, SPACE Matrix, Grand Strategy Matrix, Internal-External (IE) Matrix] (10 Marks) “END OF QUESTION PAPER™*