Strategic Management

CMA SEPTEMBER-2022 EXAMINATION
ADVANCED LEVEL II
BUSINESS STRATEGY
Course Code : MS351 Total Marks : 100

Reading Time : 15 minutes Writing Time : 180 minutes
Instructions to Candidates
 You MUST NOT write anything during the reading time.
 There are 5 (five) questions.
 You should attempt ALL questions.
 Answers should be properly structured and relevant.
 Show all relevant computation.
 Carefully read ALL the requirements and sub-questions before attempting a specific
question.
 ALL answers must be written in the answer book.
 AVOID WRITING/MARKING on the question paper at any time which may cause
disciplinary action.
 Start answering each question from a fresh sheet.
 Answers should be clearly numbered with the sub-question number.
Allowable Materials
 Writing Stationaries
 Non-programmable Calculator
Assessment Structure
Expected
Sub-
Marks Time
question
Required
Question 1 Essay/Computational/Case 3 20 35 minutes
Revision 5 minutes
Total 100 180 minutes
RESTRICTED USE
This paper MUST NOT BE REMOVED from the examination venue
Do not turn the page until instructed

QUESTION 1
(a) What is strategic management? Why is strategic planning more important for success
organization?
(b) What is business KPIs? What is the major role of Cost and Management Accountants
in implementing strategic management-Explain it briefly.
(c) Define Technology development. How digital technology work in business
environment-Explain it briefly.
[Marks: (7+7+6) = 20]
QUESTION 2
(a) What are the natures of business environment? Understanding the business
environment will be better for the organization- Explain it elaborately.
(b) What are the competences and capability? Discuss in details the factors effecting
“critical success factors (CSF)’’. - Explain it elaborately.
[Marks: (10+10) = 20]
QUESTION 3
(a) In today’s competitive world the survival as well as will to excel depends upon effective
combination of Supply Chain Management, Value Chain Concepts, Strategic Cost
Management and Customer Relationship Management.
(i) Explain all the four strategies through Value Chain and Product Life Cycle
Concept.
(ii) Explain how is value chain analysis, which is an internal analysis, useful in
identification of distinctive competencies in a business organization in formulating
various business strategies.
(b) TOURISMUSBD sells a wide range of coats, anoraks, waterproof trousers and similar
outdoor clothing from its 20 stores located in Bangladesh. The company is profitable,
although the gross profit in some stores has declined recently for no apparent reason.
Each store uses ePOS to maintain control of inventory and provides the facility to use
EFTPOS for payments. However, about 55% of all transactions are still made in cash.
Details of sales made and inventories below re-order levels are transferred to head
office on a daily basis where management reports are also prepared. Inventory is
ordered centrally from head office, details of requirements being obtained from the
daily management information provided by each store. Orders are sent to suppliers in
the post, with stock arriving at each store approximately ten days after the re-order
level is reached.
Required:
(i) Identify the different risks facing TOURISMUSBD, placing the risks into suitable
categories.
(ii)
Discuss the potential effect of each risk on the organization, describing how the
impact of that risk may be minimized.
[Marks (10+10) = 20]
QUESTION 4
(a) What are the important aspects that companies must consider before they embark on
using diversification as a major growth engine?
(b) “The Balanced Scorecard is an important strategy-evaluation tool”. Explain
CMA September-2022 Examination, MS351 [Page 2 of 4]

(c) In line with the steady growth of exports and imports, local and international logistics
and freight forwarding companies are providing necessary support to the export and
import sectors in Bangladesh. And Bangladesh's overall inflation marginally decreased
to 7.48 per cent in July from June's 7.56 per cent, according to data released by the
Bangladesh Bureau of Statistics (BBS).The food inflation decreased to 8.19 per cent in
July from 8.37 per cent in June, the BBS report said, with lower prices of edible oil and
rice offsetting the surging food costs. These attributed the decrease in the overall
inflation to the taming of prices of edible oil and rice, reports UNB. This trend will
continue as Russia has allowed exports of wheat and other food grains from Ukraine.
The central bank has amended loan-rescheduling and restructuring policy, asking
banks to classify the rescheduled loans if the borrowers failed to repay their
installments within six months. Under the revised policy, all the scheduled banks have
been instructed to classify the rescheduled loans as bad/loss category if the borrowers
failed six monthly or two consecutive quarterly installments, according to a clarification,
issued by the Bangladesh Bank (BB).
Recently you have attended a seminar where it has come to your knowledge that
Bangladesh is expecting around USD $4.5 billion loan from the International Monetary
Fund (IMF) as a precautionary measure and stabilizing foreign exchange reserves. IMF
loan would help economy gain stability in reserves, dollar market and experts also
say Bangladesh's economy will return to old track very soon overcoming the
challenges of the Covid-19 pandemic and the Ukraine-Russia war.
Required:
(i) Discuss the environment for investment in food sector in Bangladesh using the
PESTEL analysis.
(ii) Discuss the impact of corona virus and the Ukraine-Russia war on the food
industries in Bangladesh.
(iii) What are the supports needed for the sector from the Government?
[Marks (5+5+10) = 20]
QUESTION 5
(a) How environmental analysis helps in deciding strategies of a business organization?
What are the steps involved in such analysis? Explain with a suitable illustrative
example.
(b) The arrival of Coca-Cola in 1963, and then Pepsi in 1976, caused a significant shift in
the food habits of Bangladesh's urban population, which eventually spread to every
corner of the country, making soft drinks an essential part of daily life.
Besides Coca-Cola and Pepsi, many local beverage companies also emerged to
capture a share of the ever-growing beverage market. Most of these companies,
however, tended to follow in the footsteps of the international brands when it came to
taste, branding and packaging.
Instead of trying to come up with something novel, the local brands always felt
comfortable working with what was already accepted and admired by the consumers.
As a result, the choice of soft drinks remained restricted, and the flavors were confined
to cola, lemon and orange.
In 2003, Globe Soft Drink Ltd. decided to introduce something unconventional. They
launched the first-ever caffeinated drink in the country called Tiger energy drink. Ring
any bell? This drink was carefully developed, keeping the demographic of the country
in mind; and it became an instant hit in the market. The company called this category
of product "energy drinks."

Following Tiger's footsteps, several energy drinks were introduced to the market over
the years, produced by different companies. And still, the energy drink segment holds a
significant share of the soft drink industry.
Rich in ions like sodium, potassium and magnesium, electrolyte drinks are remarkably
prevalent abroad. These drinks hydrate our bodies and can boost our energy swiftly.
Social Marketing Company (SMC) develop and want to launch electrolyte drink “SMC
Plus’’ as brand name. “Working in an untapped market is always speculative. The
product will be either a hit or a miss, nothing in-between," said by Chief Marketing
Officer of SMC.
(i) Explain how Michael Porter’s five forces model is helpful in forth coming SWOT –
Analysis carried out in formulation of Business strategy.
(ii) As a professional accountant, you have been asked to do a SWOT analysis of
“SMC Plus” and recommend for Marketing Strategy for the new product.
[Marks: 8+(6+6) = 20]
END OF QUESTION

CMA MAY 2022 EXAMINATION
ADVANCE LEVEL II
BUSINESS STRATEGY
Course Code: MS 351 Total Marks : 100
Reading Time: 15 minutes Writing Time : 180 minutes
Instruction to Candidates
 Answer should be properly structured and relevant.
 Carefully rear ALL requirements and sub-questions before attempting a specific
question.
 ALL answer must be written in the answer book.
 Answer should be clearly numbered with the sub-question number.
Allowable Materials
Sub- Marks Expected Time

question Required
Question 4 Essay/Computational/Case - 20 35 minutes

Revision 5 minutes
RESTRICTED USE
Page 1 of 2
Question 1
(a) Do you find any difference between Policy and Strategy? If yes, narrate the differences.
(b) Emerging Industries face various challenges. Describe the strategic avenue to face those
challenges.
(c) What is Strategic Planning? Explain the importance of Planning.
[Marks: (6+8+6) = 20]
Question 2
(a) Many companies use out sourcing effectively. Explain how and why those firms utilize this
management process.
(d) What is BCG Matrix? What are the main functions of supply chain management?
[Marks: (10+10) = 20]
Question 3
(a) What are Key Performance Indicators (KPIs)? Why are KPIs important?
(b) What is project management? Describe the role of project manager in strategic
development.
(c) How strategy can influence the external environment? Explain.
[Marks: (6+7+7) = 20]
Question 4
The management of a state-funded hospital is considering outsourcing the cleaning of its
premises. This will mean private firms taking over as employers of existing cleaning staff and
assuming responsibility for the cleaning of the areas around beds, corridors and communal
spaces.
Increases in incidents of infections during hospital stays by patients, some resulting in death,
has been widely attributed by the media to poor hospital hygiene. Several legal cases for
compensation have been decided against hospitals on the grounds of negligence by
management.
What factors should management consider in evaluating the proposal to outsource its cleaning?
[MARKS: 20]
Question 5
X Ltd is a chain of hairdressers with fourteen sites operating in the business districts of the
capital and Three other major cities. It has a very simple philosophy – quality haircuts for
women who are short of time. It operates a no appointment, drop-in system. Customers take a
ticket on arrival and wait in a large comfortable seating area until their numbers are called. All
staff is multi-skilled and there are no specialists. The company aims to keep waiting times below
fifteen minutes. The salons offer a wide range of services from very simple cuts to more
complex styles and treatments. In50% of their stores X Ltd also offers beauty treatments, such
as facials, in a separate salon on site. The company’s main publicity comes from personal
recommendation by satisfied customers, but they also occasionally advertise in high quality
women's magazines. After a recent period of expansion, the management team of X Ltd feels
that their business model is not being applied consistently throughout the organization and they
have decided improvements and adjustments need to be made. However, none of the
management team knows how to relate their philosophy to their operations to the best effect.
Required:
(a) Using the concept of the value chain, explain how X Ltd can adopt the quality and speed
approach throughout its activities.
(b) What are the benefits and problems of value chain analysis for a company such as X Ltd?
[MARKS: (10+10) = 20]
END OF QUESTION
Page 2 of 2
CMA JANUARY 2022 EXAMINATION
ADVANCED LEVEL II
BUSINESS STRATEGY
Course Code : MS351 Total Marks : 100

Reading Time : 15 minutes Writing Time : 180 minutes
Instructions to Candidates
 Answers should be properly structured and relevant.
 Carefully read ALL the requirements and sub-questions before attempting a specific
question.
 ALL answers must be written in the answer book.
 Answers should be clearly numbered with the sub-question number.
Allowable Materials
Expected Time
Sub-question Marks
Required
Revision 5 minutes
RESTRICTED USE

QUESTION 1 [4 + 6 + 10 = 20 MARKS]
(a) Define the term strategic management and explain its relationship to strategic
planning.
(b) What are the approaches to strategy formulation?
(c)Explain the role of Cost and Management Accountants in developing sustainable
strategies.
QUESTION 2 [10 + 10 = 20 MARKS]
(a) Discuss the structure of SWOT analysis. Describe Porter's five forces approaches for
strategic analysis.
(b)What are the product life cycle stages? Describe the importance of understanding
business environment.
QUESTION 3 [8 + 6 + 6 = 20 MARKS]
(a) What is Change Management? Compare and contrast different types of risks in a
business context.
(b) Describe the model for rational decision -making process. What do you mean BPO
(Business Process Outsourcing) ?
(c) List and discuss the three steps in target marketing.
QUESTION 4 [20 MARKS]
XYZ Ltd has been in business for 25 years, during which time profits have risen by an
average of 3% per annum, although there have been peaks and troughs in profitability due
to the ups and downs of trade in the customers' industry. The increase in profits until five
years ago was the result of increasing sales in a buoyant market, but more recently, the total
market has become somewhat smaller and XYZ Ltd. Has only increased sales and profits as
a result of improving its market share. The company produces components for
manufacturers in the engineering industry. In recent years, the company has developed
many new products and currently has 40 items in its range compared to 24 only five years
ago. Over the same five-year period, the number of customers has fallen from 20 to nine,
two of whom together account for 60% of the company's sales.
Required:
Submit the company's future appraisal using a SWOT analysis along with your suggestions
to avoid the probable wrongs.
QUESTION 5 [20 MARKS]
You are a senior manager in the internal audit department of ACI Ltd. In July 2010, ACI Ltd
purchased exclusive rights to operate a car and passenger ACI Ltd route until December
2009. The offer has an alternative to driving an additional 150 kilometers via the nearest
bridge crossing. There have been several ambitious plans to build another crossing but they
have failed through lack of public support and government funds.
ACI Ltd refurbished two 20-year-old roll on, roll off ('Ro-Ro') boats to service the route. The
boats do not yet meet the emission standards of Environmental Protection Regulations
which come into force in two years' time, in 2006. Each boat makes three return crossings
every day of the year, subject to weather conditions, and has the capacity to carry
approximately 250 passengers and 40 vehicles. The ACI Ltd service carried 70,000 vehicles
in the year to 31 December 2003 (2002: 58,000; 2001: 47,000). Hot and cold refreshments
and travel booking facilities are offered on the one-hour crossing. These services are
provided by independent businesses on a franchise basis.
TURN OVER
Page 2 of 3
ACI Ltd currently receives a subsidy from the local transport authority as an incentive to
increase market awareness of the ACI Ltd service and its efficient and timely operation. The
subsidy increases as the number of vehicles carried increases and is based on quarterly
returns submitted to the authority. ACI Ltd employs 20 full-time crew members who are
trained in daily operations and customer-service, as well as passenger safety in the event of
personal accident, collision or breakdown. The management of ACI Ltd is planning to apply
for a recognized Safety Management Certificate (SMC) in 2005. This will require a ship audit
including the review of safety documents and evidence that activities are performed in
accordance with documented procedures. A SMC valid for five years will be issued if no
major nonconformities have been found.
Required:
(a) Identify and explain the business risks facing ACI Ltd which should be assessed.
(b) Describe the processes by which the risks identified in required (a) above could be
managed and maintained at an acceptable level by ACI Ltd.
END OF QUESTION
Page 3 of 3

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CMA SEPTEMBER-2022 EXAMINATION

Course Code : MS351 Total Marks : 100

Do not turn the page until instructed

CMA September-2022 Examination, MS351 [Page 2 of 4]

CMA September-2022 Examination, MS351 [Page 3 of 4]

[Marks: 8+(6+6) = 20]

CMA September-2022 Examination, MS351 [Page 4 of 4]

Sub- Marks Expected Time

Question 1 Essay/Computational/Case 3 20 35 minutes

Question 2 Essay/Computational/Case 2 20 35 minutes

Question 3 Essay/Computational/Case 3 20 35 minutes

Question 4 Essay/Computational/Case - 20 35 minutes

Question 5 Essay/Computational/Case - 20 35 minutes

Do not turn the page until instructed

Course Code : MS351 Total Marks : 100

Do not turn the page until instructed

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