Short Answer Questions

Question 1

Complete the table below:

 Outline at least three methods for conducting capability assessment of competitor
organisations
 Describe in your own words each of the three methods outlined for conducting
capability assessment of competitor organisations

Methods for Conducting

Capability Assessment Description of Each Method for Conducting
of Competitor Capability Assessment of Competitor Organisations
Organisations

a. Market Research A study to examine list of competitors, their strong and

weakness point in general. The method allows a company to
differ their company initiative and creative ideas with the
competitors. At the end, it is possibly assisting the company to
assess the competitors’ market strategies.

b. Product Analysis Product analysis focuses on the product packaging, content,

offers, and product and service delivery. It allows the company
assess the level of service and product quality they offer with
its relation to target market.
c. Competitor The method tries to create a platform of communication
Analysis between the two companies, specifically the competitor who
successfully expand their market and catch up on the trend of
product demand.
Question 2

Complete the table below:

 List the five key characteristics of cooperative ventures
 Describe in your own words each of the key characteristics of cooperative ventures
listed

Key Characteristics of Description of Each Key Characteristic of

Cooperative Ventures
Cooperative Ventures

a. Voluntary and As the core principle, members in cooperative ventures are

open membership people who has common interest and is ready to obey the rules
of society. The membership is also open to everyone
irrespective of race, colour, creed, caste, or sex.

b. Democratic In the action of cooperative ventures is democracy. The

member control cooperative venture is managed by a committee elected by the
members which is conducted annually.

c. Economic The finances of cooperative ventures are contributed by all

participation by members through the shares. There is a limit to the maximum
members share a member can buy.

d. Provide Cooperative ventures also provide the feature of education,

education, training and information session for the members with the
training and objective of developing the cooperation into a better
information movement.
e. Concern for Cooperative venture is established to provide useful service to
community the members and society.
Question 3

Outlined below are methods of conducting cost benefit analysis. Briefly explain in your own words
how each method is used to make decisions on establishing cooperative ventures.
Include financial and non-financial costs and benefits in your explanation.

Method of Conducting How Each Method Is Used to

Cost Benefit Analysis
Make Decisions on Establishing Cooperative Ventures

a. Return on Return on Investment (ROI) is a powerful communication tool which

Investment helps to identify investments that the decision-makers should and
(ROI) should not make. As in cooperative ventures, cooperative members are
both investors and users. This raises questions on measuring a members
return on investment and also considering what the appropriate return
should be.

b. Net Present Net Present Value (NPV) is a standard analytic technique. It is needed
Value (NPV) to help in decision making. The cooperative members need to be able to
determine if a stream of future cash flows is worth more than the money
required to purchase or construct it.

c. Benefit Cost Benefit Cost Ratio (BCR) is a ratio that summarizes the overall
Ratio (BCR) relationship between the relative costs and benefits of a proposed
project. BCR can be measured in terms of money or quality. It is used to
assess the cash flow viability of an asset or project. The higher the ratio,
the more appealing the risk-return profile of the project. A faulty
benefit-cost ratio would result from poor cash flow forecasts or an
inappropriate discount rate.
Question 4

Complete the following table:

 Outline at least three components of due diligence processes for establishing
cooperative ventures
 Explain in your own words why each of the three components of due diligence
processes outlined is needed for establishing cooperative ventures

Components of Due Diligence

Need for Each Component of Due Diligence
Processes for Establishing
Processes for Establishing Cooperative Ventures
Cooperative Ventures

a. Financial Planning A financial plan serves as a road map for the

organization as it travels through life. Essentially, it
aids the organization in maintaining control over its
income, expenses, and investments so that it can
manage money and fulfill its objectives. The
organization must have sufficient funds to achieve
your objectives and wishes.

b. Planning Documents The plan document is a written record of the

planning process that must detail how the plan was
developed for each jurisdiction, including the
timeline and activities that went into it, as well as
who was involved.

c. Legal Document and Permit
They may be able to assist with the company's
protection. It is critical to put all of the facts of what
was agreed upon in writing so that if something goes
wrong, the company can verify what was agreed
upon between the company and the other party.
Question 5

Complete the following table about risks related to IP rights and responsibilities:

a. Types of Risks Related to IP Rights and Responsibilities

 List at least two types of risks related to intellectual property (IP) rights and
responsibilities that can arise during strategic planning
 Describe in your own words each of the two types of risks related to IP rights and
responsibilities listed that can arise during strategic planning

Types of Risks Related to IP Rights Description of Each Risk Related to

and Responsibilities IP Rights and Responsibilities

i. Soft IP Risk The term 'soft IP' is sometimes used to refer to

trademarks, copyright, and domain names. A lot of
companies have chosen names for their products or
services that are not identical to existing brands but
are highly similar to them. They made the error of
assuming that because they were not 100%
identical, this would not be a problem.

ii. Patent Risk An invention is protected by a patent, which is an

exclusive right awarded to the inventor. Without
the permission of the patent owner, the innovation
cannot be manufactured, utilized, disseminated, or
sold. A patent owner has the authority to determine
who may or may not utilize the patented
innovation.
 b. Risk Management Strategies for Risks Related to IP Rights and
Responsibilities
 Outline at least two type of risk management strategies for risks related to IP rights
and responsibilities
 Describe in your own words the risk management strategies outlined for risks
related to IP rights and responsibilities

Risk Management Strategy for Description of Each Risk Management Strategy

Risks Related to IP Rights and for Risks Related to IP Rights and
Responsibilities Responsibilities

i. Trademark The Name When a business's name is inextricably linked to its

concept, trademarking the name can provide some
protection. The legal documents provide
indisputable proof in court by establishing a
timeline that demonstrates when the organization
was developing the idea.

ii. Get a Temporary Patent
While an organization may not be able to pay a full
patent, a provisional patent might provide the
protection needed to begin looking for a more
permanent solution. Keep in mind that it will
expire after a year, and the organization will not be
able to extend it, so the clock will start ticking as
soon as you acquire it.
Question 6

Complete the following table about organisational risks:

a. Types of Organisational Risks

 List at least two types of organisational risks, other than risks related to IP rights
and responsibilities, that can arise during strategic planning.
 Describe in your own words the types of organisational risks listed.

Types of Organisational Risks, Description of Types of Organisational Risks,

Other Than Risks Related to IP Other Than Risks Related to IP Rights and
Rights and Responsibilities Responsibilities

i. Operational Risk The risk of loss coming from poor or failed internal
processes, people, technology, or external events
that can interrupt business operations is referred to
as operational risk. Financial losses might occur
either directly or indirectly. Internally, externally,
or as a result of a combination of circumstances,
this business risk might occur. Something
unexpected could occur, causing to lose the
company continuity.

ii. Compliance Risk An organization's potential exposure to legal fines,

financial forfeiture, and material loss as a result of
failing to behave in line with industry laws and
regulations, internal policies, or recommended best
practices is known as compliance risk.
Noncompliance can lead to hefty fines and
penalties. Joining an industry organization,
checking government agency information on a
regular basis, and obtaining help from compliance
specialists will help you stay on top of compliance.
 b. Risk Management Strategies
 Outline at least two risk management strategies for organisation risks, other than
risks related to IP rights and responsibilities
 Describe in your own words the risk management strategies outlined

Risk Management Strategies for

Description of Risk Management Strategies for
Organisational Risks, Other Than
Organisational Risks, Other Than Risks
Risks Related to IP Rights and
Related to IP Rights And Responsibilities
Responsibilities

i. Risk Reduction A risk becomes less severe as a result of activities

done to prevent or mitigate its impact. When it
comes to risk therapy, risk reduction, also known
as minimizing risk, is a frequent method. If an
organization follow this method, the organization
has to figure out what steps or activities it can take
to make risks more manageable.

ii. Risk Acceptance Risk acceptance refers to the acceptance of a risk

without taking any steps to mitigate it. This
method will not lessen the impact of a risk or even
prevent it from occurring, but that isn't always a
negative thing. When the expense of reducing
hazards exceeds the cost of the risk itself, it is
more cost effective to simply accept the risk.
Question 7

Describe each factor outlined below for each of the following strategic planning
methodologies:
a. PEST analysis
b. SWOT analysis

a. PEST Analysis

Factors in PEST Analysis Description of Each of the Factors in PEST

Analysis

i. Political factors Tax policy, environmental laws, trade limitations and

reform, tariffs, and political stability are all political
considerations. The amount to which a government
can affect a sector or a firm is determined by these
elements.

ii. Economic factors Economic growth, exchange rates, inflation, and

interest rates are all aspects to consider. These
variables can have a significant impact on how a
company function. Interest rates, for example,
influence a company's cost of capital and, as a result,
the extent to which it grows and expands.

iii. Social factors Cultural characteristics and health consciousness,

population growth rate, age distribution, career views,
and a focus on safety are all social influences. High
social trends have an impact on the demand for a
company's products and how it works. Companies may
adjust management practices to conform to social
changes, such as recruiting older staff, as a result of
this.

iv. Technological factors R&D activities, automation, technology incentives,

and the velocity of technological change are all
examples of technical factors. These factors can
influence outsourcing decisions by determining
entrance barriers, minimum efficient production levels,
and other factors. In addition, technological
advancements would have an impact on costs, quality,
and innovation.
 b. SWOT Analysis

Components in SWOT Analysis Description of Each of the Components in SWOT

Analysis

i. Strengths In a SWOT analysis, a company's strengths are its

positive internal activities, processes, and behaviours,
what a company does well. These are the elements that
contribute to the company's and its brand's success.

ii. Weaknesses Weaknesses prevent an organization from reaching its

full potential. A bad brand, higher-than-average
turnover, high levels of debt, an inadequate supply
chain, or a lack of capital are examples of areas where
the company has to improve in order to stay
competitive.

iii. Opportunities External elements that may provide a competitive edge

to a company are referred to as opportunities. If a
country lowers tariffs, a car manufacturer, for
example, can export its vehicles to a new market,
boosting sales and market share.

iv. Threats Threats are circumstances that have the potential to

cause harm to a company. A drought, for example,
poses a risk to a wheat-producing company since it
might destroy or reduce crop yield. Other prevalent
threats include growing material costs, increased
competition, and a limited labour supply, among
others.
Question 8

List at least two internal sources of information relevant to each of the topics outlined
below:

Topics Internal Sources of Information for Each of the Topics

 Finance reports
a. Market
 Sales reports

 Business competitor analysis

b. Competitors
 Marketing team

 Company database
c. Customer
base  Customer’s feedback

 Company’s objective
d. Vision
 Stakeholder’s objective

 Company’s culture
e. Values
 Company’s vision

 Human Resource
f. Capabilities
 Customer surveys
Question 9

List at least two external sources of information relevant to each of the topics outlined
below:

Topics External Sources of Information for Each of the Topics

 Customer
a. Market
 Competitors

 Competitor's website
b. Competitors
 Competitor's press release

 Customer's perspective and demand

c. Customer
base  Customer's testimonials

 Market trends
d. Vision
 Regulation and Laws

 Community and social trends

e. Values
 External stakeholders

 Competitor’s company website

f. Capabilities
 Competitor’s annual reports
Question 10

Describe in your own words the following techniques for developing organisational values.

Techniques for Description of Each of the Techniques for

Developing Organisation
Values Developing Organisational Values

a. Conduct Conducting background research means conducting a review

background of the existing literature in the field leading up to the topic.
research The organization can identify gaps in understanding, or areas
that have not been covered. In this case, the company need to
review the existing values of the organization.

b. Outline categories One the background research has been done, the organization
of values need to outline the values based on the categories of values
which will be relevant to the organization vision and mission.

c. Identify relevant Identifying relevant stakeholders is crucial. It cannot be

stakeholders overstated. Having the right stakeholders will be helpful to
manage and engage with them for further discussion
regarding the organization values.
d. Conduct All organization member and relevant stakeholder should be
brainstorming gathered and conduct brainstorming session to get the overall ideas
session from all members. The ideas will be narrowed down for further
development and discussion.

e. Develop the values The gathered ideas will be further developed to match to the
organization’s vision and mission to meet the organizational
objectives.

f. Test and finalise The developed values will be assessed to ensure whether the values
meet the organization’s vision, mission, and objective. The values
will be managed for the finalization for implementation.