UNIVERSITY OF GHANA BUSINESS SCHOOL

UGBS 406: BUSINESS POLICY

Tutorial set 2

Answer all questions below.

Q1. Draw a four by five matrix and show how public corporations, public service bodies, local
authorities and NGOs are: owned, accountable by, control by, financed by and the type of legal
status of each.
PUBLIC PUBLIC LOCAL NGOs
CORPORATIONS SERVICES AUTHORITES
BOBIES
OWNERSHIP State State Public/state No
ownership
ACCOUNTABILITY State State Public/state Regulatory
body
appointed
CONTROL Gov’t appointees Gov’t Elected servants Volunteers
ministries
FINANCING Central gov’t/self Central gov’t Local Individual
(IGF) community/central donors,
gov’t/self (IGF) foundations,
corporations
and gov’t
LEGAL STATUS Statutory Statutory Statutory Trust,
charities and
foundations

Q2. State and explain the 3 main frameworks used to design a business policy for an
organization and state which one(s) work(s) best in Ghana and explain your choice.
Rational, emergent and free wheel

Q3. Dr Love Sounds is a small record company. Representative from Dr Love Sounds scour
music club for new bands to promote. Once a band signed contract (with Dr Love Sounds) it
makes a recordings. The recording process is subcontracted to one of a number recording studio
firm which Dr Love uses regularly. (At the moment Dr Love is not large enough to invest in its
own equipment and studios). Dr Love also subcontracts the production of records and CDs to a
number of manufacturing companies. Dr Love Sounds then distributes the disc to select stores,
and engages in any promotional activities required.
Required
a) What would you say are the activities in Dr Love Sound’s value chain?
Scours music club (inbound logistics), makes recordings (operations), production of records and
CDs (operations), distribute disc (outbound logistics) and promote activities (marketing and
sales)
b) Using example, distinguish between the concepts value, chain and activities.
Value is the amount customers are willing to pay for a business’ products above the cost. Chain
links the activities to customers’ needs and show the flow. Activities are the means by which a
business creates value in its products.

Q4. A firm that uses the value chain model undertakes the following activities: warehousing,
stock control, soap making, other manufacturing activities, storing of finished products,
packaging, testing and advertisement, promotion, corporate events, personal selling, installing
products, repairing products and upgrading products, purchasing of raw material and equipment,
product design and improving processes, recruitment, training and employee development,
financial planning, quality control and infrastructure development.
Required
a) In the light of the value chain model, distinguish between the concept value creation,
activities and activity chain.
Value creation is the activities that create customer satisfaction either by carrying out activities
more efficiently than other businesses, or combine them in such a way so as to provide a unique
product. Activity chain links the activities to customers’ needs and show the flow. Activities are
the means by which a business creates value in its products.
b) Draw a matrix based on the primary activities of porter’s value chain model and classify
each activity under its suitable component.

COMPONENT ACTIVITIES
Inbound logistics Warehousing, stock control
Operations Soap making, other manufacturing activities
Outbound logistics Storing of finished products, packaging, testing
Marketing and sales Advertisement, promotion, corporate events
and personal selling
After sales services Installing products, repairing and upgrading
products
 c) Draw a matrix based on the secondary activities of porter’s value chain model and
classify each activity under its suitable component.

COMPONENT ACTIVITIES
Procurement Purchasing of raw materials and equipment
Technology development Product design and improving processes
Human resource management Recruitment, training and employee development
Management planning Financial planning, quality control and
infrastructure development

Q5. A sample of strategic management activities have been outlined below. State the specific
tool in A that is used to conduct the strategic activity in B.

A B
BUSINESS POLICY Objective
PESTLE Environmental analysis
BALANCED SCORECARD Position audit, situation analysis
BUSINESS PLAN Mission
SWOT Corporate appraisal
BUSINESS MODEL Operational plans
GENERIC STRATEGIES Strategic option evaluation