CONFIDENTIAL BAJJUN 2019/MGT657/658/650/649/HRMS80 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE : STRATEGIC MANAGEMENT/BUSINESS POLICY AND STRATEGIC MANAGEMENT/BUSINESS POLICY AND DECISION MAKING COURSE CODE : MGT657/658/650/649/HRM580 EXAMINATION : JUNE 2019 TIME : 3HOURS INSTRUCTIONS TO CANDIDATES 1. This question paper consists of two (2) parts: PART A (4 Questions) PART B (4 Questions) 2, Answer ALL questions in the Answer Booklet. Start each answer on a new page. 3. Do not bring any material into the examination room unless permission is given by the invigilator. 4. Please check to make sure that this examination pack consists of i) the Question paper ii) _an Answer Booklet - provided by the Faculty 5, Answer ALL questions in English. DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 6 printed pages (© Hak Cipta Universiti Teknologi MARA ‘CONFIDENTIALCONFIDENTIAL, 2 BAIJUN 2019/MGT657/658/650/649/HRM580 PARTA More Petrol kiosks to meet rural needs — Group opens 371th station near Port Dickson to reach underserved areas Oil and gas company BHPetrol has officially opened its 370th station along the Sepang- Lukut stretch near Port Dickson, Negeri Sembilan, to better serve motorists as well as allow those living away from the urban area more access to its products. The station, operated by the Seng Group of Companies, will now provide more fuel options to motorists who use the Port Dickson-KL International Airport stretch, job opportunities to locals and help minimise the illegal sales of petroleum products. Seng Group managing director Datuk Seri King Lim Chin Fui said the company, which operates more than 100 of the approximately 400 BHPetrol stations in the peninsula, decided to open a station here although the market was not as big as in urban areas. “Our company's philosophy, which my father Datuk Lim Lee Seng started, has always been to serve the community irrespective of where they live.“This is part of our corporate social responsibility,” he said at the opening of the station by Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail Established in 1971, Seng Group started as a humble Mobil petrol station operator in the remote town of Mentakab, Pahang. From the petrol station experience the company has seize the opportunity to multiply the petrol station network and also venture into other related business like wholesale of petroleum products, bunkering and providing a complete solution to the investor or the land owner to build petrol stations. With this they became as authorised dealer of BP Petrol Company. Although the commercial industry is competitive, Seng Group's operations is expanding and sales volume are increasing. Seng Group is recognized as the pioneer and market leader in the retail jobber or the branded marketer business model. At the heart of the Seng Group, the vision is to retain being the market leader in the petrol station development sector. This organization vibrates its business with its mission to dedicate in providing a one stop solution for all petrol station needs. Seng Group also dreams to be the company that is determined to provide equal benefits and support to both the urban and rural communities. It also aim, to support the rural community by setting up petrol stations within communities. In line with its objectives to serve all, the group also plans to open another station in the ‘small town of Batu Balai in Jerantut, Pahang. “We are planning to open a station there because the villagers now have to travel either 25km to Jerantut or 35km towards Benta just to fuel up. We hope BHPetrol will consider our application,” said Datuk Seri King Lim Chin Fui, adding the group also plans to further expand its petrol station business both in Malaysia as well as overseas. ‘As a company that never stops growing, apart from the petrol station business, the Seng Group has also diversified into development of commercial property, oil palm plantation, livestock farming and transportation. Developing petrol stations over the years has taught ‘Seng Group about development and construction. In the mid-nineties they decided to get into the game, using the land bank as a starting point and decided to develop their 1st development project which was in Sg. Besi Kuala Lumpur. It was then follow by developing (© Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL 3 BANJUN 2019/MGT657/658/650/649/HRMSB0 commercial, residential, shopping malls, factories and not forgetting petrol stations. Seng Group developments span all over Malaysia in Serdang, Seri Kembangan, Puchong, Sg Long, Klang, Kuala Selangor ljok, Sabah (KK Taipan), Lahad Datu (Habour Town), Lukut, Bahau, Mentakap, Kluang, Batu Pahat, Chuah just to name a few. Seng Group started its oil palm business in Sabah since early 1990's and now have more than 20,000 acre of oil palm plantation there. After 20 years in the industry in 2013 they decided to purchase another plantation in Kelantan which is 6,000 acre. Seng Group have not only obtained vast experience ranging from land clearance, nursery, replanting and fruit harvesting but their yearly fruit yield per acre is always above the market average. In addition to providing fuel, Seng Group has a fleet of transportations to deliver products to service stations throughout Malaysia. Their principle in transportation is to ensure that high quality and full quantity of their products are being distributed to the destinations. To achieve competitive advantage, they have focused in fulfiling the customers’ needs by via management programs to address pricing levels, market volatility and inventory programs. ‘Seng Group's transport department is a common carrier specialising in the transportation of petroleum products. It has grown its trucking division to service the needs of jobbers, wholesalers, distributors and end users who require professional handling of their petroleum products. Other than those business activities, Seng Group also builds a good reputation for supplying quality products and providing excellent services over the years. It is their goal to provide all services relating to the distribution of petroleum and lubricants with the formation of the subsidiary companies. Seng Group help dealers in setting up service stations and these stations are fully supported by oil companies which carry the oil companies’ brand or logo. Petroleum products are obtained from the nearest oil companies’ terminal or depot. Currently Seng Group provide supplies to states such as Selangor, Kuala Lumpur, Perak, Malacca, Kelantan, Terengganu, Negeri Sembilan, Pahang, Kedah, Penang, Johor and Sabah. The group's logistic area of fuel collections are in Kuantan, NPI Port Klang, Kelantan, Sabah and Malacca. ‘Seng Group is constantly looking for partners who would like to have their own petrol station ‘or would like to switch brands. The group is also always on the look out to venture into other businesses in Malaysia and around the region. (Adapted : Starmetro, Friday 22nd Februavy 2019 & https://senggroup.com) QUESTION 1 a) Describe Seng Group's vision. (5 marks) b) Based on the case study, describe how the company’s philosophy can help to enhance its mission. (5 marks) (© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL,CONFIDENTIAL, 4 BA/JUN 2019/MGT657/658/650/649/HRM580 QUESTION 2 a) Explain two (2) opportunities of Seng Group in its business. ( marks) b) Explain two (2) strengths of Seng Group in its business. (8 marks) QUESTION 3 Discuss with example three (3) types of strategies taken by Seng Group. (10 marks) QUESTION 4 Discuss two (2) importance of R&D (Research and Development) factors that can be applied to any two (2) of Seng Group's major businesses. (10 marks) © Hak Cipta Universit Teknologi MARA CONFIDENTIAL,CONFIDENTIAL, 5 BAIJUN 2019/MGT657/658/650/649/HRM580 PART B QUESTION 1 a) Discuss any five (5) reasons why some firms do not apply Strategic Planning, (10 marks) b) Explain any two (2) important reasons in applying ethics in business. (S marks) QUESTION 2 With the aid of a diagram, demonstrate Porter's Five Generic Strategies. (15 marks) QUESTION 3 Boston Consulting Group (BCG) is a management tool that helps assess market conditions and relevant strategies of an organisation. With the aid of a diagram, justify your answer. (15 marks) QUESTION 4 a) Explain with example four (4) issues concerning Human Resource Management when implementing strategy. (10 marks) b) Choose two (2) evaluative perspectives of Balanced Score Card and provide relevant examples. (6 marks) END OF QUESTION PAPER (© Hak Cipta Universiti Teknologl MARA, CONFIDENTIAL