FACULTY OF COMMERCE

DEPARTMENT OF ACCOUNTING AND INFORMATION SYSTEMS

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MASTER OF COMMERCE DEGREE PART 2 SEMESTER 1

STRATEGIC MANAGEMENT MBASM517

DATE JUNE 2015

DURATION 3 HOURS

INSTRUCTIONS

Answer all questions in Section 1 (Compulsory) and any Three in Section B.

All questions carry equal marks

Each question should start on a fresh answer sheet

Marks will be awarded for clear, concise and practical illustrations

All answers must be written in Answer Books provided

SECTION A: Compulsory

Answer all questions in this section.

Question 1

“Strategic management is feasible in stable environment. The current

business environment is ever-changing. Operations in such dynamic
environment are proving to be difficult to such an extent that those firms
with manager pressing on strategic management and strategic thinking are
outpaced by events. Just think about how the governments of the day are
changing and those newly elected governments introduce new policies that
affect businesses. It is a serious weakness on the part of management to call
for strategic meeting retreating to resort place and squandering funds in
terms of hotel bookings, allowances for participants, food and transport.”
These were sentiments that were echoed by some workers at Duma
Company located in the rich Diamond area of Chiadzwa during their lunch
break. MunyaradziMashiri, the Chief Executive Officer of the company with
some senior managers from the various department of the company had just
gone to Great Zimbabwe Hotel in Masvingo for strategic planning workshop.
The accountant of the company had disbursed some funds for the workshop
and had already booked hotel accommodation for the participants. Great
Zimbabwe hotel is close to the Great Zimbabwe Monument, a rare species of
monuments in African and one of the Seven Wonders of the World. It is
surrounded with scenic environment and also a cool breeze during the
evening is felt from the Mutirikwi Dam. Just a stone’s throw is where one of
the workers at Duma Company was born and grew up.

Workers in the company have the belief that strategic management is a

worse of time and resource. “Many companies have tried and no one
company has expanded its operations after strategic meetings have been
held. We are still where we were ten ago or else things even deteriorating in
this company. Look at how the company is struggling to raise funds for our
salaries. All the fringe benefits have been scrapped off from our packs but
management still thinks it can turnaround the company through strategic
management workshop held at resort place.” Another work retorted just
confirming what the other worker said.

i. Strategic management is feasible in stable environment. Briefly discuss

this assertion [10].

ii. As the Chief Executive Officer of Duma Company how you would convince
the workers that strategic management workshop is not a waste of time and
resources. [10]

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iii. Briefly discuss the importance of strategic planning in Duma Company.
[5]

SECTION B

Answer any Three questions from this section

Question 2

Discuss the strategies that can be adopted at each stage of the firm life
cycle. [25]

Question 3

Evaluate the applicability of Michael Porter’s five forces model in strategic

management [25]

Question 4

Examine the significance of the three levels of strategic management with

reference to an organisation of your choice [25]

Question 5

Discuss five strategies you would use in order to maintain competitive

leadership in and industry of your choice [25]

Question 6

Discuss in detail the factors that determine the attractiveness of an industry

in which your firm is a player [25]

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