INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF SINGAPORE

PROFESSIONAL EXAMINATION
Module

CORPORATE AND BUSINESS STRATEGY (CBS)
9 November 2010
Official Study Guide

CONTENT PAGE

1 2 3 4 5 6

Detailed Syllabus Course Assessment Group Project Reading References Weekly Study Plan Cases for Discussion

3 5 6 10 12 16

Annex 1 2 3 4 5 6 7 Important Dates and Information PE Transaction Form Project Submission Form Trainer Profile Past Year Paper – May 10 Past Year Suggested Solutions – May 10 Past Year Examiner’s Report – May 10 Annex 1 Annex 2 Annex 3 Annex 4 Annex 5 Annex 6 Annex 7

 

DETAILED SYLLABUS

ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2 Detailed Syllabus AIM The strategic management course will equip you with the frameworks, tools, and concepts you will need to understand strategy formulation and implementation. This course will help you learn how to manage the firm’s competitive position and development, in order to ensure its long-term survival. It is designed to enhance your capacity to do the job of a general manager responsible for strategic decisions. Participants are placed in the position of key decision makers (or their advisors) and are asked to solve problems specific to each case. The topics and concepts are outlined below, and details on your assignments are provided in the following pages. Part of the grade will be the application of what you have learned throughout the program in an independent final project on a firm of your choice. OBJECTIVES On completion of this course, students should be able to: • understand the fundamental aspects of business and corporate strategy; • identify the important opportunities and challenges facing a business and setting out a course of action for dealing with them; • generate strategy options for an company, evaluate alternative options, and select the most appropriate strategy; • acquire familiarity with frameworks and techniques of strategic management, and effectively use these to guide management decision; • effectively position a firm or a business unit within a globalized competitive environment; • formulate a strategic plan while considering the organization’s capabilities and environment; and • build the necessary capabilities to develop a successful business. COURSE CONTENT This course is taught primarily through readings and the case method, but also includes workshops, and videos, if applicable. The learning experience results from the readings and the workshops, and from the preparation of cases, assignments and projects. The materials used in the course encompass a wide range of industries, businesses and issues in order to provide the greatest depth and breadth of experience. The cases and concepts will put you in a role of a key decision-maker, most often as a general manager. The case method requires you to use analytical tools taught in the course and to apply your personal judgment to a specific situation. There is no single correct solution to any of the case problems. There are, however, many wrong solutions. During the workshops, the instructor will cover the theory aspect of strategy, split the class in groups for discussion and answer your query regarding the readings and the cases. The instructor’s role in the class discussion is to help you, through intensive questioning, to develop your ideas.

3

) The Recalcitrant Director Session 3: Social Responsibility & Ethics in Strategic Management (WH Chapter 3 & Case 5: Everyone Does it) Session 4: The External Environment (WH Chapter 4 & Case 16: Harley Davidson INC. Session 1: Basic Concepts of Strategic Management (WH Chapter 1 & Case 2: The Wallace Group) Session 2: Corporate Governance (WH Chapter 2 & Case 1: at Byte Products. References in brackets are to the Strategic Management and Business Policy. 12/E.Corporate & Business Strategy (CBS) 2010 Term 2 Detailed Syllabus COURSE LESSON PLAN The general course lesson plan is as follows. Inc. subject to adjustments as the term progresses.ICPAS Professional Examination . Hunger (WH). Please refer to Cases for Discussion section for more details. David L. 2008: Thriving Through a Recession) Session 5: Internal Scanning: Organizational Analysis (WH Chapter 5 & Case 24: The Haier Group: US Expansion) Session 6: Strategy Formulation: Situation Analysis and Business Strategy (WH Chapter 6 & Case 18: Carnival Corporation & Plc (2006): Twelve Distinct Brands Serving Seven Continents) Session 7: Strategy Formulation: Corporate Strategy (WH chapter 7 & Case 20: The Home Depot (2006): Executive Leadership) Session 8: Strategy Formulation: Functional Strategy and Strategic Choice (WH chapter 8 & Case 30: Church & Dwight Builds a Corporate Portfolio) Session 9: Strategy Implementation: Organizing for Action (WH Chapter 9 & Case 17: JetBlue Airways) Session 10: Strategy Implementation: Staffing and Directing (WH Chapter 10 & Case 13: Google: An Internet Search Engine Company) Session 11: Evaluation and Control (WH Chapter 11 & Mini Case 32: Six Flags. Thomas L. Wheelen. and to cases that will be covered in class. Inc: The 2006 Business Turnaround) 4 . Pearson International Edition.

  COURSE ASSESSMENT .

The case will be given to you about 5 days prior to the exam. 3. 7. 4. 5.Corporate & Business Strategy (CBS) 2010 Term 2 Course Assessment COURSE ASSESSMENT The assessment components are listed below: Group Project report (20%) You are to form a group (minimum of 1 student to maximum of 4 students) and perform an industry. open-book examination is of 3 (three) hours duration and covers the entire course. Agriculture and Fishing Water Supply. Sewerage and Waste Management Mining and Quarrying Education Transport and Storage Electricity and Gas Supply Financial and Insurance Details of the group project are listed in the following Group Project section. Final examination (80%): The final. company and strategy analysis of a company in any of the following sectors: 1. 6. 5 . Further information will be provided as the term progresses.ICPAS Professional Examination . 2.

  GROUP PROJECT .

No hardcopy is required for submission. None of the groups are to select the same company. The report must be submitted in soft copy format (MS Word or PDF) via email to profexam@icpas.org. 4. 2. In the event that your first choice has been selected earlier by another group. No marks will be awarded for reports submitted after the deadline.e. Group Member 3 Candidate ID Project Selection Company Name 1st Choice (in order of preference) 2nd Choice 3rd Choice Sector The final company selection will be allocated by the Institute on a first-come-first-served basis. 5pm via email to profexam@icpas. 3. Group Member 2 4.ICPAS Professional Examination . The deadline for project submission is 5 November 2010 (Friday). DEADLINES FOR COMPANY SELECTION & PROJECT SUBMISSION 1.sg. you will be allocated your second or third choice accordingly. i. 2.org. The company selected must not be any of the companies covered in the Course Lesson Plan found on page 4 of this study guide. 6 .sg: Group Members (1 to 4 candidates per group) Name 1. Group Leader (to indicate) 2. Each sector may be selected by a maximum of 3 groups. by 6 August 2010 (Friday). 5pm. The company selected must have a significant role and market power. Group Member 1 3.Corporate & Business Strategy (CBS) 2010 Term 2 Group Project RESTRICTION ON COMPANY & SECTOR SELECTION 1. You are required to submit your selection details (as indicated in the format below) no later than one week after the first workshop.

Industry Analysis • Relevant industry trends (e. maximum 1 page) • The content shall not include any company history. etc. changes in forces’ strength.ICPAS Professional Examination .. 3. The last part will ask you to focus on the firm strengths and weaknesses to elaborate a company strategy. The important point is to cover all essential areas in a clear and concise manner. Feel free to adjust the outline below in the most meaningful way for the industry you selected. Suggested outline A. analysis of forces’ strengths. The number of words must not exceed 2500. costs / technology aspects. Times New Roman (font size 12) is required. These words refer to those in the main report (not Appendices) and not inclusive of words in Figures and Tables. competitors.competitors? • Key success factors in the industry 7 . Both in-text and a Reference list are compulsory. Part 1 – Industry Analysis Your group industry analysis should focus on industry trends and on the firm competitive environment. segmentation. Executive Summary (key findings. you must have a clear understanding of the environment in which the firm operates.g. To do so. C. and main government/trade regulations) with implications for the firm performance and strategy • What are the most noticeable changes in the industry environment? • Strategic Group Map • Attractiveness of the industry using the Porter 5 Forces model (i.) o Remember Porter’s analysis is an industry-level (not firm-level) analysis o Who are the firm’s present/future customers? . double-spaced on A4-sized document. Your report should contain 2 parts: Industry Analysis and Company Strategy Analysis. The final report should be typed. and to highlight the main external strategic issues the firm is confronted to.e. 2. • The purpose of the executive summary is to inform the reader of the key elements contained in the paper.Corporate & Business Strategy (CBS) 2010 Term 2 Group Project REPORT GUIDELINES 1. Title Page (but no table of contents) B. Format required for the referencing is Harvard Referencing Format or also known as the Author-Date Format. with equal left and right margins of 3 cm..

Environmental Scan (external forces/stakeholders) • Most important Opportunities • Most important Threats E. if any? a. Identify growth options. or through cooperative strategy (e. You should use analytical techniques and frameworks covered in class to examine the firm's strategic intent. and viable alternatives/strategic options. You must also include a very brief critique of that mission/vision. sources of differentiation along the value chain. analysis of market share. experience curve) b. • Why is this company in this business. Suggested outline A. cost position.g. value chain analysis. and what does it do? • You can reproduce the company's published mission statement/vision. Assessment of the firm’s strategy • What is the firm’s generic strategy. valuable. where is the firm heading for? Consider a 3-5 years time frame C.g. customer segmentation) • What resources and/or capabilities does the firm have (or require) to implement its strategy? o Consider the firm’s key resources that could lead to long term competitive advantages – those that are rare. resources/capabilities to meet key customer needs relative to key competitors) • Address the most important challenges of the firm? What is the significance of each? • Has the firm been successful? Why? Very broadly.g.g. Differentiation strategy (e. Internal Scan (company) • Key Strengths • Key Weaknesses What would be your strategic recommendations to the firm based on your SWOT analysis? Part 2 – Company Strategy Analysis The purpose of this analysis is to recommend a strategic course of action for the company you selected. • What is the firm's competitive position in the industry (e. its strategic position. Cost strategy (e. horizontal or vertical alliances) or acquisition? 8 . Mission Statement/Strategic intent/Vision. non-substitutable and inimitable. • Shall the company grow organically. B.ICPAS Professional Examination .Corporate & Business Strategy (CBS) 2010 Term 2 Group Project D.

What change or changes in strategy do you recommend? • In your recommendations. Endnotes (references) 9 .e.Corporate & Business Strategy (CBS) 2010 Term 2 Group Project D. strategic interactions)? What would it be? How would it affect the competitive dynamics ? • Have you demonstrated the feasibility of your recommendations? What would be the implementation pathway? E.ICPAS Professional Examination . have you taken into consideration any possible competitor responses (i.

  READING REFERENCES .

Pearce-Robinson. Michael E Porter. The Free Press. Ireland & R. (1998). Harvard Business School Press 1996 ISBN 0-87584-716-1 5. HarperCollins 2001 ISBN 06-662099-6 6. Mintzberg. 2nd Edition.. The Free Press. Strategy . Competing for the Future. Gerry Johnson . 12th Edition. De Kluyver. (2007). Ron Meyer. Strickland. Kevan Scholes. H.E. Execution: The Discipline of Getting Things Done. ISBN 0-135-70680-7 2. Thompson-Strickland. R. 1998 8. Pearson International Edition. Strategic Management. Context. Upper Saddle River. Larry Bossidy and Ram Charan. Crown Business New York 2002. 7. Mc Graw Hill International edition 4.. Strategic Management: Competitiveness and Globalization.Process. ALTERNATIVE BOOKS 1. NY. an International Perspective. Pitts & David Lei. Wheelen. Ahlstrand. Good to Great. Implementation. International Thomson. Thompson. (Cincinnati: ITP Southwestern Publishing Co). Jim Collins. 10th Edition. Strategic Thinking: An Executive Perspective. Richard A D’Aveni. New York 1998 (revised print) ISBN 0-684-84148-7 3.Corporate & Business Strategy (CBS) 2010 Term 2 Reading Reference REQUIRED TEXTBOOK Strategic Management and Business Policy. J.. NJ: Prentice Hall 3. Robert A. 2003. Hypercompetitive Rivalries: Competing in Highly Dynamic Environments. Irwin. Competitive Strategy: Techniques for Analysing Industries and Competitors. Bob de Wit.ICPAS Professional Examination . 12/E. Boston: McGraw Hill. David L. and Control . Gary Hamel and C K Pralahad. Thomas L. Hunger. Veronique Ambrosini . Content.). Cornelius A. Concepts and Cases. A. Strategic Management: Formulation.. 2006 6. A. 5th Edition. J. Mc Graw Hill International Edition.. Lampel.D. 5. Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases (15th ed. A. Pearson Higher Education (UK) 1998. Thomson Higher Education. 2. Exploring Techniques of Analysis and Evaluation in Strategic Management. Hoskisson. Hitt. J. New York. Strategy Safari: A Guided Tour Through the Wilds of Strategic Management. Free Press. 2000. B. E. & Gamble. ISBN 0-609-61057-0 10 . 4th edition. Michael A. REFERENCE TEXTS & READINGS 1. Strategic Management: Building and Sustaining Competitive Advantage. New York 1995 (revised print) ISBN 0-02-874112-9 4.

Michael E Porter. Harvard Business Review March 2001 3. Harvard Business Review. Michael E Porter. Strategic Planning for Rapid Profitable Growth. 1991 6. Reflecting on the Strategy Process. Fuller. How Competitive Forces Shape Strategy. May 2002 12. Competing Today While Preparing for Tomorrow. Mintzberg and Lampel. Campbell and Alexander. What’s Wrong with Strategy? Harvard Business Review Nov-Dec 1997 8. Sloan Management Review Spring 1999 9. Strategic Planning in an era of Total Competition. Why Business Models Matter. Strategy & Leadership May 2000 5. Long Range Planning Vol 24 No 4. Campbell and Yeung. What is Strategy? Harvard Business Review November-December 1996 2.Corporate & Business Strategy (CBS) 2010 Term 2 Reading Reference REFERENCE ARTICLES 1. Mar/Apr 1992 7. Langeler. Michael E Porter. Creating a Sense of Mission. Understanding Strategy. Strategy & Leadership May-Jun 96 10. Warnock Davies. 11 . Magretta.ICPAS Professional Examination . Lorange. Sloan Management Review. The Vision Trap. Derek Abell. Harvard Business Review March-April 1979 4. Strategy & Leadership May – Jun 96 11. Strategy and the Internet. Spring 1999. Harvard Business Review.

  WEEKLY STUDY PLAN .

ANALYSIS 03 16 Aug 2010 Social Responsibility & Ethics in Strategic Management • Social Responsibility of strategic Decision Makers • What is Social Responsibility? • Ethical Decision Making Case 5: Everyone Does it WH Chap 3 12 .30pm to 10.30pm WH Chap 2 WH Chap 1 3 Aug 2010 CBS Preparatory Course: Session 1 02 10 Aug 2010 Corporate Governance • The Role of the Board of Directors • The Role of Top Management Case 1: The Recalcitrant Director at Byte Products. Inc. Week beginning Monday Text Readings Topic FOUNDATION OF STRATEGY 01 2 Aug 2010 Basic Concepts of Strategic Management • What is Strategic Management? • Strategy Formulation and Implementation Case 2: The Wallace Group Tue 7.ICPAS Professional Examination . SUGGESTED STUDY / REVISION SCHEDULE Week No.Corporate & Business Strategy (CBS) 2010 Term 2 Weekly Study Plan I.

ICPAS Professional Examination .30pm WH Chap 6 06 6 Sep 2010 Strategy Formulation: Situation Analysis and Business Strategy • SWOT Analysis • Business Strategies o Competitive Strategies o Cooperative Strategies Case 18: Carnival Corporation & Plc (2006): Twelve Distinct Brands Serving Seven Continents 13 .30pm to 10.Corporate & Business Strategy (CBS) 2010 Term 2 Weekly Study Plan The External Environment • Environmental Scanning • Industry Analysis o Porter Model o Strategic Groups • Competitive Intelligence Case 16: Harley Davidson INC. 2008: Thriving Through a Recession STRATEGY FORMULATION 04 23 Aug 2010 WH Chap 4 05 30 Aug 2010 Internal Scanning: Organizational Analysis • Using Resources to Gain competitive Advantages • Industry & Corporate Value-Chain Analysis Case 24: The Haier Group: US Expansion WH Chaps 5 31 Aug 2010 CBS Preparatory Course: Session 2 Tue 7.

Corporate & Business Strategy (CBS) 2010 Term 2 Weekly Study Plan 07 13 Sep 2010 Strategy Formulation: Corporate Strategy • Directional Strategy • Portfolio Analysis: BCG and GE matrix • Corporate Parenting Case 20: The Home Depot (2006): Executive Leadership WH Chap 7 08 20 Sep 2010 Strategy Formulation: Functional Strategy and Strategic Choice • The Sourcing Decision: Location of Functions • Strategies to Avoid • Strategic Choice: Selecting the Best Strategy Case 30: Church & Dwight Builds a Corporate Portfolio WH Chaps 8 21 Sep 2010 CBS Preparatory Course: Session 3 Tue 7.30pm 09 27 Sep 2010 Revision Week STRATEGY EXECUTION 10 4 Oct 2010 Strategy Implementation: Organizing for Action • How is Strategy to Be Implemented? • Corporate Development & Organizational Life-cycle • International Alliances • Centralization vs.30pm to 10. Decentralization Case 17: JetBlue Airways WH Chap 9 4 Oct 2010 CBS Preparatory Course: Session 4 Tue 7.30pm 14 .30pm to 10.ICPAS Professional Examination .

30pm to 10.Corporate & Business Strategy (CBS) 2010 Term 2 Weekly Study Plan ##Strategy Implementation: Staffing and Directing • Selection and Management Development • Leading • Management by Objectives • TQM Case 13: Google: An Internet Search Engine Company 19 Oct 2010 CBS Preparatory Course: Session 5 Tue 7. 10am to 1pm 15 .30pm WH Chap 11 11 11 Oct 2010 WH Chap 10 12 18 Oct 2010 Evaluation and Control • Measuring Performance • Strategic Information Systems • Problems in Measuring Performance • Strategic Incentive Management Mini Case 32: Six Flags.ICPAS Professional Examination . Inc: The 2006 Business Turnaround 13-14 15 25 Oct & 4 Nov 2010 11 May 2010 Revision Week Exam Date: 9 November 2010.

  CASES FOR DISCUSSION .

2006 1. 3. 2. Global Science) ethical in their business practices? Does a practice become ethical just because “Everyone does it”? What can be done to ensure that the industry develops and use higher standards of ethics? Case 16: Harley Davidson INC. 4. What do you think the Wallace Group has a clear Mission and Vision? Please support your answer.ICPAS Professional Examination . 3. 4. Discuss the Board of Directors’ duties. Does Haier have a sustainable competitive advantage over its competitors? Compare Haier`s position in major home appliances and in consumer electronics in the US: Which growth alternative is better? Case 18: Carnival Corporation & Plc (2006): Twelve Distinct Brands Serving Seven Continents 1.g. Inc. Identify the issues facing the Wallace Group? Please elaborate. 3. Lockart. Case 1: 1. 3. 4. 2. Is the motorbike business an attractive business to be in? What opportunities and threats exist in this market? What would be a PEST model application to the motorbike business? What are the keys success factors in this industry? Case 24: The Haier Group: US Expansion 1. What are the factors Jim should consider when deciding which launch date to use? Are ISI and its competitors (e. Identify what basic strategic concepts can the Wallace Group use to improve their current situation? Discuss how the strategic concepts identified in Question 3 will help the Wallace Group address their issues identified in Question 2.Corporate & Business Strategy (CBS) 2010 Term 2 Cases for Discussion CASES: PREPARE FOR DISCUSSION Case 2: The Wallace Group 1. 2. The Recalcitrant Director at Byte Products. Discuss Haier’s business strategy. What is the company corporate strategy? How sustainable are Carnival’s sources of competitive advantages? 16 . Did the board perform their duties as directors? Was management responsible in their actions? Case 5: Everyone Does it 1. 2. 2. 2. 3.

Inc: The 2006 Business Turnaround 1. How did JetBlue implement their organizational routines to support their strategy? Did JetBlue have centralized or decentralized systems and routines in place? How did JetBlue’s centralize or de-centralized systems and routines influenced their ability to cope with “The Customer Service Fiasco – pg 704”? Case 13: Google: An Internet Search Engine Company 1.Corporate & Business Strategy (CBS) 2010 Term 2 Cases for Discussion 3. Examine the role placed by acquisitions in Carnival’s globalization strategy Study Carnival’s organizational structure and examine how such a structure enables efficient and effective knowledge management at the company Case 20: The Home Depot (2006): Executive Leadership 1. Identify JetBlue’s strategy for success. What is the importance of corporate culture to Home Depot? Is it being lost or just changed to adjust to a new environment? How can differentiation and low-cost competitive strategies be used simultaneously? What core competencies does Home Depot possess that can be transferred to the professional contractor market? To going international? Are any distinctive? What should Home Depot do next to ensure continued growth? Case 30: Church & Dwight Builds a Corporate Portfolio 1. 2. 2. 2. 4. 3. What does Google do to remain competitive? Are programs such as MBO and TQM appropriate for Google? Please elaborate. 3. Do an internal analysis of Church & Dwight Analyze Church & Dwight’s Internationalization strategy Are there synergies between Church & Dwight’s two divisions (chemical and consumer products)? Should there be? What future strategy would you recommend to Church & Dwight? What should Church & Dwight pay attention too? Case 17: JetBlue Airways 1. 4. 4. 2. 3.ICPAS Professional Examination . Recommend relevant performance measures can be used to help six flags in its quest towards profitability? Recommend strategic information systems can be developed to facilitate Six Flag’s turnaround strategy? What are the key issues which Six Flags might face when using your recommendations in Questions 1 and 2? 17 . 4. 4. 3. 3. What does Google do to meet with its staffing requirements? How does Google’s staffing decisions impact its overall organizational strategy? Mini Case 32: Six Flags. 2.

  ANNEX .

payment of first year Candidate Fee is required.sg/pe.Candidates may enrol for a maximum of 3 modules per term by the Module Examination Registration Closing Date.e. Preparatory Course for ICPAS PE (Optional) Term 1 / Yr 10 a) Preparatory Course Enrolment Commencement Date 14 Dec 09 b) Preparatory Course Early Enrolment Closing Date 05 Feb 10 Term 2 / Yr 10 14 Jun 10 23 Jul 10 Detailed Information pp 1.sg | URL: www.ICPAS PE . Payment due date is within a month from the approval date.Active candidates is not required to submit Assessment Application Form during the period of valid candidature (5 years).Subsequent Annual Candidate Fee will be billed in December (due on 2nd January). . Preparatory Course for ICPAS PE . Assessment Application . unless otherwise stated. Module Examination Registration . Written Examination .html 3. .Advanced Taxation Term 2 / Yr 10 01 Apr 10 14 Jun 10 Term 2 / Yr 10 14 Jun 10 14 Jul 10 01 Aug 10 24 Dec 10 Term 2 / Yr 10 08 Nov 10 09 Nov 10 10 Nov 10 11 Nov 10 12 Nov 10 SAA-GE EMAIL: paq_tuition@saa.Candidates MUST come down personally to SAA-GE’s Raffles Quay Campus within 2 working days from the date of online enrolment.org.asp For First Time Assessment Application Term 1 / Yr 10 (Not Applicable to Existing Candidates) Assessment Application Closing Date 01 Oct 09 Confirmation Date for Application Status 14 Dec 09 Module Examination Term 1 / Yr 10 (Only applicable for ICPAS PE Candidates) Module Examination Registration Commencement Date 14 Dec 09 Module Examination Registration Closing Date 13 Jan 10 Academic Term Commencement Date 05 Feb 10 Examination Results Release Date 25 Jun 10 Module Examination Dates Term 1 / Yr 10 10 May 10 FRD .Enrolments received by the Early Enrolment Closing Date will be entitled to discounted rate.saa. a) b) 2. Modules need not be attempted in a particular sequence and are not compulsory every term.org. candidates are required to log in to their individual candidate account in the ICPAS PE website to perform an update update.Upon confirmation of application status (i. Important announcements will be published on the ICPAS PE website and / or disseminated via email. . The latest available information will published on the ICPAS PE website and will supercede all previous disseminated information. in the months of May and November. Candidates can attempt modules at their own pace.sg/pe. . . . 2.html for details. Candidates are strongly encouraged to visit the ICPAS PE website for the latest available information.Module examination dates corresponding to enrolled modules are listed in the table above. 4. Candidates can only enrol for modules after payment of candidate fee.icpas. Candidates are required to provide a valid email address and to check the provided email account regularly.Examinations are available twice a year. .org.sg | URL: www. to sign the student contract & pay the FPS insurance. Note: 1) ICPAS reserves the rights to amend any of the published date or time in this document without prior notice.All examinations will commence at 10am and end at 1pm on each of the given dates.org. provided that examinations for all modules are successfully attempted within the candidature period of 5 years. a) b) c) d) EMAIL: profexam@icpas.org.saa.Please refer to the Enrolment Procedure at www.IMPORTANT DATES AND INFORMATION ICPAS 1.sg/pe. in order for the enrolment to be confirmed. the applicant is eligible for entry to PE). In the event of changes of existing email address. - 3.Company Law & Corporate Governance 14 May 10 ATX .Corporate & Business Strategy 12 May 10 AUD .Audit & Assurance 13 May 10 LCG .Financial Reporting & Disclosure 11 May 10 CBS . Candidates are required to log in to their individual account to view their published results. ANNEX 1 Updated May 10 .Results will be released on the stated dates. 2) 3) 4) Events occuring on dates published in this document that coincide with a weekend / public holiday will be postponed to the next working day.

Candidates are strongly encouraged to visit the ICPAS PE website for the latest available information.Corporate & Business Strategy 11 May 11 AUD .Candidates may enrol for a maximum of 3 modules per term by the Module Examination Registration Closing Date. Candidates are required to log in to their individual account to view their published results. Candidates can attempt modules at their own pace.sg | URL: www. Preparatory Course for ICPAS PE .org.Results will be released on the stated dates.sg/pe.saa. 3. payment of first year Candidate Fee is required.Advanced Taxation Term 2 / Yr 11 01 Apr 11 15 Jun 11 Term 2 / Yr 11 15 Jun 11 14 Jul 11 01 Aug 11 23 Dec 11 Term 2 / Yr 11 07 Nov 11 08 Nov 11 09 Nov 11 10 Nov 11 11 Nov 11 SAA-GE EMAIL: paq_tuition@saa.Please refer to the Enrolment Procedure at www.Company Law & Corporate Governance 13 May 11 ATX . 4.org. . Preparatory Course for ICPAS PE (Optional) Term 1 / Yr 11 a) Preparatory Course Enrolment Commencement Date 15 Dec 10 b) Preparatory Course Early Enrolment Closing Date 21 Jan 11 Term 2 / Yr 11 15 Jun 11 22 Jul 11 Detailed Information 1.sg/pe.sg | URL: www. .Modules need not be attempted in a particular sequence and are not compulsory every term.Enrolments received by the Early Enrolment Closing Date will be entitled to discounted rate. unless otherwise stated.Candidates MUST come down personally to SAA-GE’s Raffles Quay Campus within 2 working days from the date of online enrolment. Module Examination Registration . in the months of May and November. Important announcements will be published on the ICPAS PE website and / or disseminated via email. . 2. candidates are required to log in to their individual candidate account in the ICPAS PE website to perform an update update.Subsequent Annual Candidate Fee will be billed in December (due on 2nd January). Candidates are required to provide a valid email address and to check the provided email account regularly. .org.Audit & Assurance 12 May 11 LCG . .Active candidates is not required to submit Assessment Application Form during the period of valid candidature (5 years).ICPAS PE .html 3. . Note: 1) ICPAS reserves the rights to amend any of the published date or time in this document without prior notice.sg/pe.Candidates can only enrol for modules after payment of candidate fee. Written Examination . ANNEX 1 Updated May 10 .icpas.e. . provided that examinations for all modules are successfully attempted within the candidature period of 5 years.Upon confirmation of application status (i.Examinations are available twice a year. a) b) c) d) EMAIL: profexam@icpas.html for details. . .IMPORTANT DATES AND INFORMATION ICPAS 1. in order for the enrolment to be confirmed.All examinations will commence at 10am and end at 1pm on each of the given dates.Module examination dates corresponding to enrolled modules are listed in the table above. to sign the student contract & pay the FPS insurance.org. a) b) 2.Financial Reporting & Disclosure 10 May 11 CBS .saa. 2) 3) 4) Events occuring on dates published in this document that coincide with a weekend / public holiday will be postponed to the next working day. Assessment Application pp .asp For First Time Assessment Application Term 1 / Yr 11 (Not Applicable to Existing Candidates) Assessment Application Closing Date 01 Oct 10 Confirmation Date for Application Status 15 Dec 10 Module Examination Term 1 / Yr 11 (Only applicable for ICPAS PE Candidates) Module Examination Registration Commencement Date 15 Dec 10 Module Examination Registration Closing Date 14 Jan 11 Academic Term Commencement Date 01 Feb 11 Examination Results Release Date 24 Jun 11 Module Examination Dates Term 1 / Yr 11 09 May 11 FRD .org. Payment due date is within a month from the approval date. the applicant is eligible for entry to PE). In the event of changes of existing email address. The latest available information will published on the ICPAS PE website and will supercede all previous disseminated information.

please fill up the below.  ANNEX 2 .890 (3 modules) Module Script Review The Module Script Review allows the candidates to gain a better understanding of their performance relative to the examination through a detailed report.for the term commencing in January .sg | Webpage http://www.Company Law and Corporate Governance ATX . * Please refer to the Important Dates and Information available on PE website for enrolment closing and examination dates.Audit and Assurance LCG .sg/pe. Singapore 389801    PE Transaction Form Salutation: ( NRIC/ Dr/ Mr/ Mrs/ # Please read the “Terms and Conditions” carefully before you proceed to fill up the form. FRD CBS AUD LCG ATX AMOUNT FOR OFFICIAL USE S$63 (1 module) S$126 (2 modules) S$189 (3 modules) # Please tick where appropriate.ICPAS PROFESSIONAL EXAMINATION                              Tel 65 6597 5720 | Fax 65 67498879| Email profexam@icpas.org. TYPES OF MODULES FRD . #03-01.Advanced Taxation Candidate Fee Candidate fee is applicable for all candidates to maintain the candidature.Financial Reporting and Disclosure CBS .S$315 First year . KH Plaza @ Aljunied.icpas.S$168 Annual Renewal (subsequent year) . (i) Deferred Module(s) Module Examination Registration fee is not required.org.Corporate and Business Strategy AUD .260 (2 modules) S$1. First year . Mailing Address: _____________________________________________________________________________ Contact Number: (Home) (Mobile) (Office) (Fax) Email Address: ______________________________________________________________________________ <PART B> Transaction to perform Please select the following transactions by ticking the box and proceed to the respective sections.for the term commencing in July .asp 12 Aljunied Road. FRD CBS AUD LCG ATX (ii) New Enrolment AMOUNT FOR OFFICIAL USE FRD CBS AUD LCG ATX S$630 (1 module) S$1.S$315 AMOUNT FOR OFFICIAL USE S$315 S$168 Module Examination Registration* Candidates are required to register for the respective module to qualify for its examination. Name as in NRIC or Passport: (in block letters and underline surname/family name) Mdm/ Ms) # Fin/ Passport no : <PART A> To update your personal details To update your particulars.

DECLARATION I have read. Singapore 389801 # Please tick where appropriate. 12 Aljunied Road. I acknowledge that ICPAS may vary or reverse any decision regarding registration made on the basis of incorrect or incomplete information provided by me. FRD CBS AUD LCG ATX AMOUNT FOR OFFICIAL USE S$200 (1 module) S$400 (2 modules) S$600 (3 modules) FOR OFFICIAL Other Fees USE _______ Amount: __________ Fee for Part C: To fill up your cheque payment details Please ensure that you have filled up the correct details and amount Cheque / Bank Draft No. please submit the registration form via PE website at www. To pay by VISA / Master / NETS.org.Module Examination Deferment Candidates may defer the same module to a later Module Examination date*. KH Plaza @ Aljunied.icpas.  ANNEX 2 .asp. * Please refer to the Important Dates and Information available on PE website for enrolment closing and examination dates.sg/pe. #03-01. understood and hereby accept the Terms and Conditions set out in Annex A. Signature: ___________________________________ Date: ___________________________ Please send the completed form and cheque payment to: ICPAS Professional Examination.: _________ payable to ICPAS (Cheque must be submitted together with this form) Note: VISA / Master / NETS are not available for registration submitted via PE Transaction Form.

The latest available information will be published on the ICPAS PE website and will supercede all previous disseminated information. Request received after due date will not be accepted by the Institute. Singapore 389801  TERMS AND CONDITIONS (A) Candidate Fee (i) The Annual candidate fee is applicable for all candidates to maintain their candidature. The fees are reviewed periodically and may be revised. (v) Candidate will not be able to cancel the module deferment request once it is processed. (vii) The candidate fee is not to be offset against enrolment / registration of any transactions in PE or other courses. Our Institute GST registration number is M4-0001553-8. from FRD module examination to CBS module examination) will not be considered. Request for change in enrolled modules registration (e. candidates are required to log in to their individual candidate account in the ICPAS PE website to perform an update. it is deemed to be final and the Institute does not allow changing of module examination registration or request for withdrawal. candidates are advised to consider carefully before registering for the modules examination. (vi) The fee is not to be offset against deferment of other modules. Hence. enrolment / registration of any transactions in PE or other courses. nd (ii) The candidate fee for the subsequent year is due on 2 January. (vi) Upon confirming and registering for the modules examination. (vii) The fee is not to be offset against registration of other modules. Candidates are strongly encouraged to visit the ICPAS PE website for the latest available information. enrolment / registration of any transactions in PE or other courses. Only candidates whose candidature have not expired and / or have paid for the candidate subscription fee are allowed to register for module examination.sg/pe. #03-01.icpas. Module Script Review Requests are to be submitted to ICPAS within 1 month from the exam results release date.ANNEX A ICPAS PROFESSIONAL EXAMINATION                              Tel 65 6597 5720 | Fax 65 67498879| Email profexam@icpas.asp 12 Aljunied Road. KH Plaza @ Aljunied.sg | Webpage http://www.g. time or information in the Important Dates and Information without prior notice. * Please refer to the Important Dates and Information available on PE website for enrolment closing and examination dates. Hence. (iv) Registration will only be processed upon receipt of full payment (not applicable for registering for deferred module(s)) and completed form (v) The registration fee is non-refundable and non-transferrable. (v) The candidate fee paid is non-refundable and non-transferrable. Module Examination Registration Module Examination Registration is restricted to a maximum of 3 modules per term. Registration received after closing date will not be accepted by the Institute. Important announcements will be published on the ICPAS PE website and / or disseminated via email.  ANNEX 2 . Any changes would be announced on the website. (iv) Candidate fee payment request will only be processed upon receipt of full payment and completed form. (D) (i) (ii) (iii) (iv) (C) (i) (ii) (B) (i) (ii) (F) (i) (ii) # Please tick where appropriate. (iii) Transaction forms are to be submitted to ICPAS by the term’s before Module Examination Registration closing date*. In the event of changes of existing email address. Module Examination Deferment Requests are to be submitted to ICPAS by 6pm of the last Tuesday before the week of the Module Examinations*.g. candidates are advised to consider carefully before registering for the modules examination. (viii) Enrolment for deferred modules will only be processed with original deferment approval letter attached. The deferment fee paid is non-refundable and non-transferrable. (iii) Please kindly make payment for any outstanding candidate fees before proceeding with module and workshop enrolment. (vii) The script review fee paid is non-refundable and non-transferrable. Request for change in deferred modules (e. defer FRD module examination instead of CBS module examination) will not be considered. (vi) Request will be processed upon receipt of full payment and completed form.org. (iv) The scripts remain the property of ICPAS and will not be viewed by the candidates. (viii) The fee is not to be offset against registration of other modules. All fees are accurate at time of print. (iii) The marks awarded previously would not be modified during the script review. Requests will be processed upon receipt of full payment and completed form. Deferment request received after the closing date will not be accepted by the Institute. Fee All fees quoted are inclusive of GST.org. (vii) Candidates are subject to the prevailing Module Examination Registration Terms & Conditions at point of re-registration for Module Examination. (viii) Module Enrolment Fee does not include textbook(s). Events occurring on dates published in the Important Dates and Information that coincide with a public holiday will be postponed to the next working day. Candidates are required to provide a valid email address and to check the provided email account regularly. enrolment / registration of any transactions in PE or other courses. The scripts are reviewed by the respective module examiners and report would be sent via email to the candidates within 2 months from the exam results release date. This is also applicable if the candidate did not re-enroll for the deferred module by the candidature expiry date. ICPAS reserves the right to adjust the fees without prior notice. (v) Transaction forms are to be submitted to ICPAS by the due date. (E) (i) (ii) (iii) (iv) Important dates and Information The Institute reserves the rights to change / amend any of the published date.

sg by the due date and time. CANDIDATE NO(S): MODULE CODE: CBS MODULE TITLE: CORPORATE AND BUSINESS STRATEGY ASSIGNMENT TITLE: DATE DUE: 5 NOVEMBER 2010 Friday 5:00pm CANDIDATE(S) SIGNATURE: ANNEX 3 .ICPAS Professional Examination PROJECT SUBMISSION FORM Kindly attached this form with the CBS project (word doc or PDF) and email to profexam@icpas.org.

Sales & Marketing. Clive is a Lecturer with Nanyang Business School (NBS). His areas of expertise include business strategies.     ANNEX 4 . Management and Organization Division where he teaches Strategic Management in the final-year of the Business and Accounting degree programme. He has delivered seminars and courses for many working professionals and established organizations. an organization under the Ministry of Community Development. Clive has been consulted by both for-profit and non-profit organizations in the areas of business planning and strategies. He previously held senior managerial positions for large Japanese and European MNCs. Clive serves in various capacities in Sports and societal work.                                                                                                        Module: Corporate & Business Strategy (CBS) Trainer: Mr Clive Choo Clive has more than 20 years of working experience in Business Development. Clive conducts Corporate Training for various listed companies. Also. Nanyang Technological University (NTU) in the Strategy. Clive has successfully managed large businesses in this region. Besides providing consultancy work. Youth and Sports. working closely with direct sales force as well as distribution channels. with extensive experiences in the Asian Pacific business environment. He is active in promoting community sports as a Grassroot leader. He is currently serving as a Council Member for NTU Sports Council. Clive is also a workshop facilitator volunteer in REACH Family Services Centre. he is pursuing PhD in Management. and Corporate Training. distribution channels and establishing dealers’ network. Other than his passion in academic and business consulting work. managing direct sales force.

ii. Write legibly in ink. 7. 6. Begin your answer to each question on a separate page of the answer book.ICPAS PROFESSIONAL EXAMINATION MAY 2010 CORPORATE AND BUSINESS STRATEGY (CBS) INSTRUCTIONS TO CANDIDATES 1. ANNEX 5 . 8.FOUR (4) questions (1 page). 4. Answer ALL FOUR (4) questions. 5. All answers must be handwritten. The number of marks allocated is shown at the end of each question. The time allowed for this examination paper is 3 hours. Case – “Caffeine Satisfaction: Rivalry Among the Coffee Shops” (12 pages) – this has been distributed to candidates prior to examination. 3. 9. Structured Questions . All answers must be written in the answer booklet. This examination paper has a total of FOURTEEN (14) pages (including this instruction sheet) comprising the following: i. Answers will be graded for content and appropriate presentation. 2.

Starbucks. Question 1 How attractive is the Coffee Retailing Industry? (30 marks) Question 2 (i) How does the strategy of Starbucks and Dunkin’ Donuts differ? (20 marks) (ii) Does Krispy Kreme pose a threat to either? (5 marks) Question 3 Identify Starbuck's Strengths and Capabilities. (30 marks) Question 4 What recommendations would you have for Allied Domecq (The parent company of Dunkin Donuts) if they wanted to compete with the major coffee chains (e.g.2- ANNEX 5 . Seattle’s Best) head on in the specialty coffee business? (15 marks) . How sustainable are Starbucks' competitive advantages? Please elaborate.END OF PAPER - .ICPAS PROFESSIONAL EXAMINATION Corporate and Business Strategy – May 2010 ______________________________________________________________________ All questions are based on the case “Caffeine Satisfaction: Rivalry Among the Coffee Shops”.

ICPAS PROFESSIONAL EXAMINATION CORPORATE AND BUSINESS STRATEGY (CBS) MAY 2010 EXAM PAPER SUGGESTED SOLUTIONS ANNEX 6 .

It is easy for competitors to watch each other’s moves. thereby eliminating supplier’s bargaining power. or is composed of smaller regional markets. Starbucks). department stores.g. Competitors offer a range of products along with coffee and also differentiate on that basis. The other issue is whether the market is national. multiple options available (and the number of options is on the increase).” then we can proceed to analyze the industry using the five + 1 forces model: a) Barriers to entry: Low to medium While setting up chains require heavy investment in stores or building a franchising system. (5 marks) Power of substitutes: High In regard to consumer products. Production is owned by distributors (e. (5 marks) Intensity of rivalry: High Product differentiation is strong for consumers with specific product knowledge. (5 marks) Bargaining power of buyers: low-Medium Low switching costs. and scale economies are limited.ICPAS PROFESSIONAL EXAMINATION Corporate and Business Strategy – May 2010 _____________________________________________________________________________________________ Question 1 Defining the relevant market as one for specialty coffee beverages is too narrow. but most consumers lack that kind of specific knowledge. However. they may be more willing to substitute between specialty coffee and generic coffee that is available in other fast food chains such as McDonalds. The yardstick of substitutability can again be used here. and are frequently seen in many towns. individual coffee shops require much less investment. Location in high traffic areas is important. buyers do not bargain on price and do not buy in bulk. Demand is not concentrated. (5 marks) Bargaining power of suppliers: low Coffee production has been outstripping consumption. Defining it as a market for beverages may be too broad. and it is a small value item. It is safe to assume that customers do no easily substitute between coffees and carbonated and/or fruit beverages. It is not very likely that a consumer seeking a quality cup of coffee is willing to travel ten miles to get to one. Exit costs are low to medium. Substitutes include convenience stores (standalone or attached to gas stations). However. but may settle for what he or she can purchase at a neighboring store. and vending machines. There is an increased focus on price competition. there is substitution on the demand side. There is an -2- b) c) d) e) ANNEX 6 . or major buyers approach producers directly eliminating middlemen. Starting with a definition of the industry as “Retailing coffee beverages (coffee shops). falling consumption in the United States increase buyers’ bargaining power. There are also many competitors. restaurant.

and types of coffee beverages. and the design of the store (which encourage people to linger or provide them with product quickly) are all part of the differentiation strategy. it offers a wide range of flavors.ICPAS PROFESSIONAL EXAMINATION Corporate and Business Strategy – May 2010 _____________________________________________________________________________________________ oversupply on the market. we may consider the complementary products to coffee beverages (e. Coffee chains are large (much larger than the farms they buy from) and buy in large quantities.g. Although both Starbucks and Dunkin’ Donuts sell coffee beverages. Product differentiation is low. Although it supplies good quality coffee which has its own following. whole beans in packets. While there may not be a complementor industry to coffee shops. it is also in the business of selling bagels. their focus. we can introduce two other forces: The first is the power of stakeholders. -3- ANNEX 6 . the overall conclusion would be that the industry is moderately attractive. and the) to discerning consumers. espresso. segmentation and basis for differentiation are different. Coffee accounts for only about 50% of sales of Dunkin’ Donuts. Thus. Starbucks sees itself as primarily a coffee shop. coffee-related equipment. (5 marks) On the basis of the above. While it does not innovate. Thus a knowledgeable staff. selling high quality coffee beverages (regular. breakfast sandwiches. pastries like doughnuts. Dunkin’ Donuts is designed for the “average Joe”. The firm is also innovative in coming up with new products and variations on existing products. who can talk about the product. cookies and biscuits.g. which is weak in this industry (e. The complementors also influence substitutability and thus their power or influence can be rated a high. Question 2(i) The contrast of Starbucks and Dunkin Donuts is revealing. There will be max 5 points for mentioning stakeholder or complementors. latter. with some supplementary products such as pastries. merchandised items) as an influence on strategies followed in the industry. it adapts quite well. (5 marks) f) At this stage. The second is the power of complementors. books and CDS. and so on in addition to coffee. Differentiation often extends beyond the products and covers everything that influences the way a consumer derives value. They wish to create an image of a professional and upscale lifestyle. local governments /or agencies are to enforce health standards).

Hence.ICPAS PROFESSIONAL EXAMINATION Corporate and Business Strategy – May 2010 _____________________________________________________________________________________________ 1 point should be awarded for each relevant difference. These areas of convergence are where its rivalries are the sharpest. everyday routines Coffee beverages. the two firms also reveal a keen awareness that they also compete for the same type of customer. and bagels Mostly franchised Basic furniture. Dunkin’ Donuts. (20 marks) Question 2(ii) The expansion of Kripsy Kreme offers a greater challenge to Dunkin Donuts rather than Starbucks because of the similarity of their formats. there is a significant segment of the public that would consider them as comparable options when thinking of a cup of coffee. (5 marks) Question 3 Marks to be given – 1 mark per point identified (up to 2 marks if the point is elaborated further) – maximum marks for this section: 18 marks Strengths & Capabilities (12 Identified) Large scale of operations to gain economies of scale and scope. -4- ANNEX 6 . doughnuts. easy access Speed of service. lifestyle. Caribou Coffee. it has introduced latte and espresso. Seattle best. specialty drinks Coffee beverages. but has automated part of the preparation so that its stores can keep lines moving fast. Starbucks and Dunkin Donuts are not direct rivals. recognize that some discerning customers want variations on the delivery of their favorite beverages – hence. beans. on the other hand. Dunkin’ Donuts Convenience. designed to handle high traffic volume Location aims coverage and avoids cannibalization Krispy Kreme Store location Rivals While the above suggests several differences in products and differentiation strategies between the two. customers spend time on the premise Clustering of stores to saturate the market locally Tully’s Coffee. beans Mostly company-owned Upscale design. in their actions. ect. Internet Connection Store staff knowledgeable about coffee. Starbucks has introduced a prepaid card so customers in a hurry can use the card and save the time involved in paying for their purchase. Additional points should be awarded for elaboration (up to a maximum of 2 points per category discussed – listed below) Category Store philosophy Product focus Store ownership Store ambience Service orientation Starbucks Leisure.

For each core strength identified. a maximum of 5 marks per -5- ANNEX 6 . Strong related diversification and partnerships with Dreyers (selling Starbuck’s ice Cream). real estate personnel and construction managers to find the right locations and create the right structure. Transparency.g. Efforts made to build other systems to facilitate growth Funding sources (Venture Capitalist provision of funds for growth) Strong policies to treat employee well. Wendy’s and Blockbuster) .ICPAS PROFESSIONAL EXAMINATION Corporate and Business Strategy – May 2010 _____________________________________________________________________________________________ Strong brand recognition for the quality of its coffee. A systematic process of structured sequential of expansion (setting up a logistical and managerial base/hub coupled with store clustering) was used to reduce location competition and facilitate further expansion within an area. Transferability. and elaborated upon. 2 marks given if they elaborate on a specific logic that will impact / influence sustainability (e. or base it on the 5 traits mentioned in the text (to determine sustainability) – The 5 traits being: Durability. Barnes & Noble. even going back to purchasing coffee ethically (under a fair trade program) In-house team of architects. Strong partnerships with well known brand names such as United Airlines. Imitability. Geographic diversity leading to a global brand name Marks given for showing the sustainability of Starbuck’s competitive advantage: 2 marks if they use a relevant framework such as VRINE. Effective and extensive use of technology (– experts in various content areas and experienced middle management from related organizations such as Taco Bell. Wendy’s and Blockbuster). tacit knowledge. the logic behind VRINE or the 5 traits mentioned in Wheelen and Hunger) 1 more mark if they integrate the logic behind sustainability with the framework. Pepsico (bottled Frappacinno) and Kraft (Distribute grounded and whole Starbucks coffee beans) Human resources (believes in hiring smart people– experts in various content areas and experienced middle management from related organizations such as Taco Bell. Replicability.

a strong global brand) Human resources and processes supporting employee functions Scale and the use of technologies and systems to support growth and scale (30 marks) Question 4 The idea here is for candidates to leverage off their knowledge of corporate strategy. Other points which can be argued as sustainable to an extent include: Branding and globalization combined (i. a) Durability . Barnes & Noble. etc. As such. This helps ensure some degree of sustainability. Pepsico. b) Imitability – These processes are difficult replicate by competitors. It requires tacit knowledge. and processes which most coffee places will not have. together with elaboration of strengths) *Note that the total marks for the question will still be capped at 30. albeit very difficult. The maximum marks for this section would be 20 marks (i.e. a wide range of contacts. c) d) e) All 5 points support the notion that the strength of strong partnerships has a decent degree of sustainability.ICPAS PROFESSIONAL EXAMINATION Corporate and Business Strategy – May 2010 _____________________________________________________________________________________________ strength deemed as sustainable can be given. Kraft. The fact that Starbucks have managed to secure and maintain good working relationships with key players shows durability. it is difficult to imitate. A credible challange is possible. However. while -6- ANNEX 6 . Example of a sustainable competitive advantage using the framework by Wheelen and Hunger: Strong partnerships with known players such as United Airlines.e. up to 3 strengths well elaborated upon to show sustainability or a combination of marks given for the use of a framework and the logic. Replicability – Since the routines which govern a successful partnership is difficult to ascertain and the resources which Starbucks use are tact in nature. As such. Transferability – Competitors might be able to replicate this somewhat by forming their own partnerships with other relevant players. Transparency – The processes that govern this strength/capability is very opaque and competitors are not able to observe how Starbucks formed these partnerships. each partnership will be inherently different and so there can never be total transferability. it is difficult to attempt direct replication by using similar resources and capabilities. it is difficult for them to understand how to go about and erode this advantage.The resources required to develop and maintain meaningful relationships with key partners is something that takes time to be developed and maintained.

(15 marks) -7- ANNEX 6 .g. subjected to the question total limit of 15 marks. up to a maximum of 5 marks for the recommendation and elaboration.g. additional marks for elaboration. develop training programs for employees. etc – another 3 more marks max) Rebranding Dunkin Donut (or have a spin-off) to focus on coffee – details of the rebranding can include aspects regarding employee training on coffee and the brewing process. under the quick service restaurants) where it is seen as being of premium quality (2 marks for the suggestion) Basically. 2 marks for a meaningful recommendation. up to 3 more marks for elaboration to a maximum of 5 marks total) Introduction of a new specialty range of coffee within Dunkin Donut and this can be pushed towards its other businesses (e. details on the set up. setting up specific elements of the supply chain. The base guideline for grading is 1 mark for a possible recommendation.ICPAS PROFESSIONAL EXAMINATION Corporate and Business Strategy – May 2010 _____________________________________________________________________________________________ making use of the case information. there are many possibility of making meaningful recommendations. Potential recommendations include: Leveraging off their ownership of Dunkin Donut as a means to secure better contracts for coffee. etc (2 marks for the recommendation. etc (elaboration on this possible up to a maximum of 5 marks) Setting up another company (Dunkin Donut has too much connotation to Donuts and does not bring out the focus on coffee) while leveraging off their ownership on Dunkin Donuts (max 2 more marks in addition to the max of 5 marks for the previous point) – elaboration on the setting up of a new company possible (e.

ICPAS PROFESSIONAL EXAMINATION CORPORATE & BUSINESS STRATEGY (CBS) MAY 2010 EXAMINER’S REPORT ANNEX 7 .

a lot of them failed to elaborate on they key characteristics of the differences. However. elaboration of how and why these were strengths and capabilities were lacking at times. a number did not do an indepth analysis. only the minority used a framework such as VRIN to determine the sustainability of Starbuck's competitive advantages. and their rationalization lacked a holistic assessment of the attractiveness of the coffee retailing industry. However. In addition. However. Question 2 Most students did a comparison and were able to tease out differences between the strategy used by Starbucks and Dunkin Donuts. A few students also did not use any framework and this further reduced the comprehensiveness of their analysis. most students had problems determining the rationale to explain if Krispy Kreme would be a threat to either Starbucks or Dunkin Donuts. In addition. However. Porter’s forces model) to use in order to determine the attractiveness of the coffee retailing industry. 2|Page ANNEX 7 . Question 4 Some students were able to formulate an approach and fundamental logic towards their recommendations.Question 1 Students generally did not seem to have a problem identifying a relevant framework (e. Question 3 Students were generally able to identify the strengths and capabilities of Starbucks. the bulk of students had problems in developing a basis for their recommendations.g.

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.