The Professionals’ Academy of Commerce

07 March, 2022
50 minutes – 27 marks
Test – 02
Strategic & Performance Measurement
Q.1 For each of the following, identify appropriate strategy from the strategic clock model being pursued by the
organization (also state reasons for your selection):
a. Company ABC focuses on bulk production to provide the customers with low cost products.
b. Al Fateh focus on self-serving counters, low service in house facilities, no-return policy to keep the
prices of their products as low as possible as compared to competitors.
c. Café Alanto at MM Alam road caters specific needs of customer demanding high end continental foods
and are willing to pay a price premium for such food.
d. A laptop manufacturing company strives harder to keep their prices as low as possible equally focusing
on unique attributes of the products. (08)

Q.2 You are working as a strategist for a food chain. The CEO has asked you identify the areas of improvement
in value of the company. Identify the potential areas in primary value that may be improved to create
competitive advantage. You may assume necessary details. (06)

Q.3 For each of the following resources, identify whether it is a threshold or a unique resource? Is this resource
used to create threshold competence or core competence? (05)
a. Highly qualified faculty in an educational institute Availability of basic infrastructure in a retail outlet
b. Skilled customer services staff in a restaurant
c. Advanced production facilities in a laptop manufacturing factory
d. State-of-the-art fleet of vehicles in a distribution company to extensively distribute different products
across the country
The Righton Supermarkets Group is the largest supermarket group in the country. In spite of a decline in
total consumer spending in the national economy last year, spending in the supermarket sector as a whole
increased, and Righton also increased its market share. It now has over 20% of the market for food-and-
drink shopping in the country. It is also enjoying strong growth in the sale of non-food products such as
clothing (it has its own brand of fashion clothes) and domestic electrical goods. The group has just
announced record annual profits, and investors expect the growth in profitability to continue, in spite of
signs of weakness in the national economy.
Rival supermarket groups have been attempting to regain lost market share. Two rival groups merged a
year ago. Another competitor was acquired a few years ago by a major US supermarket group and is
pursuing an aggressive competitive strategy. Righton’s success is due partly to its reputation for low prices
and reasonable-quality products, and its efficient in-store service.
The group continues to acquire land and to purchase retail property with the intention of building more out
of-town stores and smaller in-town convenience stores. It does not have any business operations outside the
country. There is some concern about the possibility of government action to prevent the group from
exploiting its ‘near-monopoly’ position in the market.
Required:
Conduct SWOT analysis for Righton. (08)

(The End)