ACCG3001

Organisational Planning and Control

Session 1, 2020
Tutorial In-Class Exercise – Student Handout
WEEK 4
STUDENT NAME: SID:

TUTORIAL DAY / TIME: TUTOR:

FOLEO FONES CASE STUDY – Chapter 3:

Assume you are the management accountant for Foleo Enterprises Pty Ltd and have been called into a meeting with the
CFO and the directors to discuss the future of the organisation. James and Leon admit that there is no real strategy in place
for the organisation and are concerned that the reactionary way the business has evolved over the past 2 decades, may not
be the best foundation for steady growth into the future, so they ask for your input.

(a) Explain to the directors the term Business-Level strategy and how this differs from Corporate Level strategy. (1 mark)

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(b) Explain Porter’s three (3) generic (or competitive) business-level strategies to the directors. (2.5 marks)

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(c) From the case facts, identify which of Porter’s three (3) generic strategies might the Foleo Fones business be pursuing
for the SliFone product. Justify your choice using evidence from the case study.
(HINT: Select the most appropriate generic strategy) (1.5 marks)
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