FINAL % UNISA |S MNG4801 MAY/JUNE 2017 STRATEGIC MANAGEMENT ‘STUDENT NUMBER | IDENTITY NUMBER Marks: Question No FOR USE BY EXAMINATION iNVIGILATOR Subject Number of paper Date of examination Examination centre Total WARNING 1 -Acancidate vio wshout authorisation takes into the ex4minaion venue any book, document or abjeot which could ais Tam im the ‘Sxgmmotion and does not hand over such atonal othe ugiator Betore tha ole commencorert ofthe @xaRwiaton wl De gy Ot ‘ringing the Univers examunation regulations anc wil be hablo Dunshnen as deiervined by Counc 2 Rough work may be done aly en tha examination quoston paper and must be laballsd as such 3 Ho.notes may be made on any pat ofthe body, such as the hands er on any gaement 4 Ths pagofpaper ss te property ofthe Unverty and under no excumstances may ie candidate retain # ce Lake out ofthe exanunation Na PLEASE COMPLETE THE ATTENDANCE REGISTER ON THE BACK PAGE, TEAR OFF AND HAND TO THE INVIGILATOR.UNIVERSITY EXAMINATIONS UNIVERSITEITSEKSAMENS UNISA (fe MNG4801 MaylJune 2017 STRATEGIC MANAGEMENT Duration 3 Hours 100 Marks EXAMINERS, FIRST MR WK NEULAND ‘SECOND MRS © SCHOLTZ EXTERNAL DRRMARITZ ‘Open book examination Study material permissible in exammation room ‘This examination question paper remains the property of the University of South Africa and may not be removed from the examination venue This examination question paper consists of sixty (60) pages, including two additional pages (pp 57-58) for wnting and two pages (pp 59-60) for rough work INSTRUCTIONS Answer any four of the six questions Each question counts 25 marks: Write legibly Structure your answer logically by using headings and subheadings Clearly indicate the numbers of the questions you have answered on the cover sheet of this question paper + Pages 57-58 are extra pages for wnting Clearly indicate the number of the question you are answering, should you make use of these pages + Pages 59-60 are for rough work only, and will not be marked. This is a closed-book examination. You may not consult notes of any Kind, or any person except the mvigilator, during the examination session [TURN OVER]2 MNG4801 Mayhune 2017 QUESTION 1 Strategic management as an approach to management (Topic 1) relates to the importance of strategic management (Study Unit 1 2), strategic management terminology (Study Unit 1 3) and the contemporary business environment (Study Unit 14) Read the following case study related to Omnia Group and answer the questions which follow The Omnia Group comprises of a balanced and diversified range of complementary chemical services businesses with a broad geographic spread The Group extracts operational synergies and efficiencies across its businesses It has been in business since 1953 and 1s listed in the Chemicals sector of the Johannesburg Stock Exchange Omnia Group consists of four divisions spread between the agriculture, mining and chemical industnes - Omnia Fertilizer (agriculture industry), BME and Protea Mining Chemicals (mining industry), and Protea Chemicals (chemical industry) These divisions are all niche businesses that operate wih a common objective - to enhance the customers’ businesses through research, development and knowledge sharing that will equip the customer to increase yields and by extension, profit margins Omnia's Agriculture division, Omnia Fertilizer, produces granular, liquid and special fertilizers for a broad customer base of farmers, co-operatives and wholesalers throughout southem and East Afnca, Australia, New Zealand and Brazil Despite severe drought conditions and an international oversupply of fertilizer, the division only experienced a 3% drop in sales volume internationally during 2015 This 1s slightly less than the intemational industry norm of a 1% drop in fertilzer sales volume over the same penod Despite similar setbacks in the two mining divisions, severe restructuring of the chemical division mitigated Omnia Group's overall fmancial performance Furthermore, Omnia Group boasts with a debt-free balance sheet for the first lime in a decade This was achieved by focusing on cash generation, working capital management, and a determined dive to curtailment of operational costs: Business Day included Omnia Group as one of the quintessential examples of a diversified corporation coping despite adverse circumstances, specifically praising the debt-free balance sheet attained by the Omnia Group during the 2015/2016 financial year The absence of debt provides the Group with an enviable, maintainable position Although continuous operational improvements are expected across all four divisions of the Group, Omnia pndes itself on being an environment-conscience organisation The Group spent R59 billion on socio-economic benefits, achieving a 4% reduction im greenhouse gas emissions, a 12% reduction in water usage and received no penalties related to pollution Moreover, nine bursanes were awarded to employees, and 142 employees received study assistance for part-time studies The Group Managing Director, Mr Rod Humphris, believes that the following two years will [TURN OVER]3 MNG4g01 May/June 2017 ‘bring forth growth in all three mdustnes (agncultural, chemical and mining), and boasts that the Group 1s uniquely positioned to capitalise on the forecasted bullish upswing, By December 2016 Omnia Group's shares already rose 41%, branding it as one of the success stories on the JSE ‘Adapted tem ht ve oma co 2a! Intp tr teraizerorgrews20simagest. ary Dowricads/2016_IFa.Moscow_ Summary pabWebsteKey=81 166724 4bda-4221abfe _2182287210008-sos%adunngRsdara2t2hwe ft zerorgidadO*4aTensaotmagoss- 2 bay _Downloadss- 212016. |Fs, Moscow Summary 9 at itp aw busnassive co zaPbdeompanesiiede andindusty/2016-07-t-nows-analysis veined compares show hovets copes dvorzotimed ‘np busnassiva co 2albalcompanesiiade-anduncusiy/2016-0 aaversemes "pw busnessive co zammney-andsnvestng/2016 12-154s8-2016-Hood.an the-art awe analyse cversied comparses-show-haw-o-cope 1.1 Discuss the statement “The Omnia Group comprises of a balanced and diversified range of complementary chemical services businesses" In your answer Desenbe the three levels of strategy Explain the purpose of balance and diversification of the four divisions (or business units) Substantiate your explanation with one example from the case study fo) [TURN OVER]MNG4801 May/June 2017 [TURN OVER]MNG@4801 May/June 2017 [TURN OVER}6 MNG4801 May/June 2017 12 Cntically discuss the term ‘above-average returns’ and how tt relates to the Omnia Group In your answer + Desenbe the term ‘above-average returns’ * Provide one example where the Omnia Group was unable to provide above-average returns and one example where above-average returns was realised + Explain how above-average retums are linked to strategic survival regarding the Omnia Group Substantiate your explanation with an ‘example from the case (9) [TURN OVER]MNG4801 May/June 2017 (TURN OVER]MNG4801 MayfJune 2017 ITURN OVER]9 MNG4so1 May/June 2017 13 Louw and Venter (2013 87) indicate that “ leaders are often confronted with paradoxical situations” Critically discuss this statement in terms of the case study, and specifically refer to the ‘profitability versus sustainability’ paradox In your answer * Explain what a paradox is * Broadly desenbe the ‘profitability versus sustainability’ paradox + Chtically comment on the Omnia Group's handling of this paradox ‘el (TURN OVER]10 MNG4801 May/June 2017 TOTAL. [25] [TURN OVER]"1 QUESTION 2 MNG4801 May/June 2017 The setting of a strategie direction is seen as one of the building blocks of strategie planning (Topic 2, Study Unit 2 1) firms in dissimilar industries. Look at the following deseriptions and strategie statements from two A Jor Mil ArcelorMittal South Afnca is the largest steel producer on the Afncan continent The company supplies over 61% of the steel used in South Africa and exports the rest to sub- Saharan Africa and elsewhere Our Vision To add value to all our stakeholders through our market leadership position in Sub-Saharan Africa by producing quality stee! products safely, being an employer and supplier of choice, while stnving to be among one of the lowest-cost steel producers in the world Our Mission Protecting the health and safety of our employees Pursuing operational excellence im all business processes Producing innovative high-quality steel solutions for our customers on time Protecting our environment communities in which we operate Being a far employer as well as a career and skills developer Being a responsible corporate citizen and canng for the Our Values Safety - Creating a safe environment for all to live and work in Caring - Fostering authentic relationships and valuing everyone Commitment- Solution-focused, delivenng to our best Customer satisfaction - Building long term win-win Partnerships Adopted om hp /arcolominolea comW/howeareVsion MissonStraegtectectve Sep Nestle South Africa Nestlé (South Afnca) (Pty) Ltd produces food and beverage products It provides beverages, bottled water, cereals, chocolates and confectionery, coffee, dary products, and ice creams The company was incorporated in 1916 and 1s based in Bryanston, South Africa Our V n To be a leading, competitive, Nutntion, Health and Wellness Company ‘Our Mission “Good Food, Good Life" Our Values Delivering improved shareholder | value by beng a preferred corporate citizen, _ preferred employer, preferred supplier selling preferred products ‘Adapted irom thie few nestle co za/aboutua/missionasion [TURN OVER]12 MNG480+ May/June 2017 a4 Critically evaluate the vision statements of ArcelorMittal and Nestle against one another 1n terms of being directional and easy to communicate Commence your answer by clearly explaining what these two characteristics entail @ [TURN OVER]13 MNG4g0t May/June 2017 [TURN OVER]14 MNG4801 MaylJune 2017 22 By companng ArcelorMittal and Nestle, cntically comment on the common shortcomings embedded in their vision statements Ensure that you explain what these common shortcomings entail (61 [TURN OVER]15 MNG4801 May/June 2017 [TURN OVER]16 MNG4801 May/June 2017 23 Evaluate the mission statements of ArcelorMittal and Nestle in terms of the core components usually associated with mission statements (6) [TURN OVER}7 MNG4801 May/June 2017 [TURN OVER]18 MNG4801 May/June 2017 24 — Chitcally evaluate the value statements of ArcelorMittal and Nestle In your answer * Describe the purpose of value statements within an organisation © Comment on the importance of value statements within emerging markets © Clearly explain which firm, ArcelorMittal or Nestle, employs the most effective value statement 6) [TURN OVER]19 MNG4801 May/June 2017 TOTAL: [25] [TURN OVER}20 MNG4801 May/June 2017 QUESTION 3 The contemporary business environment (Study Unit 1 4) provides the basis for a strategic management approach Internal environmental analysis (Study Unit 22) and business level strategy selection (Study Unit 2 4) forms the foundation for strategic planning (Topic 2) Read the following case study and answer the questions that follow Mediclinic is an intemational private healthcare group founded in 1983, with operations in South Afnica, Namibia, Switzerland and the United Arab Emirates Subsequent to the combination of Mediclnic International Limited and Al Noor Hospitals Group ple in February 2015, the Company's primary listing 1s on the London Stock Exchange, with secondary listings on the South African Stock Exchange and the Namibian Stock Exchange The registered office is based in London, United Kingdom, The corporation is focused on providing acute care, specialist-orrentated, mult disciplinary healthcare services Their core purpose Is to enhance the quality of lite of their patients by providing comprehensive, high-quality healthcare services in such a way that it will be regarded as the most respected and trusted provider of healthcare services by patients, doctors and funders of healthcare in each of its markets The South Afncan pnvate healthcare market 1s well-established, well-equipped and has been growing steadily, although recently at a deciming rate The market offers incremental growth opportunities to expand existing hospitals, and establish new hospitals and day clinics ‘Challenges include lowering healthcare costs across the value chain in a fragmented market, whilst at the same time wmproving outcomes for patients, attracting and retaining qualified staff and investing in infrastructure and medical technology Furthermore, the government is seeking to address the shortcomings of the public health system through the phased introduction of a National Health Insurance system Mediclinic’s commitment towards sustainable development 1s charactenzed by various measures in piace to minimise water consumption, including reclaiming water, monitoring hot water consumption and installing water meters and control sensors Stringent protocols followed led to a 49% increase in tonnes of waste recycled compared to 2014/2015. The attraction and retention of high-quality medical professionals 1s fundamental to Mediclinic Southem Africa's sustainability “Having the services available of high-quality doctors, nurses and support staff is entical to the success of our business," stated non- execulive chairman, Dr Herzog, regarding the challenge of continuously staying competitive The CEO, Danie Meintjies, confirmed this approach by declanng that “ [Alcross all our operating platforms, we seek to be the first choice for patient experience, and to provide [TURN OVER]21 MNG4801 May/June 2017 Superior clinical outcomes ~ but also acknowledged that [The affordability of healthcare 1s a matter of pressing public policy concern This 1s one reason why it iS So important for us to grow our scale, optimise our cost base and ensure that we offer cost-effective quality care to our patients" _Adagtod tom nip ianwualteport20'6 medicine compiMtedcline Pie_complcte pat 31 Chtically discuss which one of Porter's genenc strategies 1s followed by Mediclinic. In your answer * Descnbe the strategy followed by Mediclinic and substantiate the discussion with two examples from the case + Explain what shift in this strategy 1s likely to occur, and the danger associated with it Use an example from the case to substantiate your explanation U1) [TURN OVER}22 ‘MNG4801 May/June 2017 [TURN OVER]MNG4801 May/June 2017 [TURN OVER]24 MNG4801 MayfJune 2017 32 Discuss the industry Ife cycle and how if relates to Mediciinic In your answer * Provide a broad explanation of the term ‘industry life cycle’ + Identify the phase of the private health care industry life cycle Mediclinic 1s confronted with + Explain the business strategy normally associated with this phase, and provide two examples from the case confirming Mediciic's intentions of following this business strategy (7) [TURN OVER]25 MNG4801 May/June 2017 [TURN OVER]26 MNG480t May/June 2017 [TURN OVER]27 MNG4801 May/June 2017 33 Discuss Mediclinic’s approach towards corporate social responsibility (CSR) In your answer * Identity three areas in which Mediclmic 1s committed towards CSR Provide an example from the case for each area © Explain how being committed to CSR could be financially beneficial to Mediclinic 17] [TURN OVER]28 MNG4g01 May/June 2017 ITURN OVER]MING4801 Mayhiune 2017 TOTAL: [25] (TURN OVER}30 MNG4801 May/June 2017 QUESTION 4 Extemal environmental analysis (Study Unit 2 3) and corporate strategy selection (Study Unit 24) are important building blocks of strategic planning (Topic 2) Read the case study relating to Crookes Brothers Limited, and answer the questions that follow Efforts by agnbusiness Crookes Brothers to diversify away from its core sugar offenng are ‘expected to start paying off in the years ahead The company’s mainly Swaziland-based sugarcane operation has in recent years been broadened to include several business Units specializing mn deciduous fruit, bananas and macadamia nuts — as well as an minguing addition Renishaw, a properly development business untt, 1s added to the corporate umbrella Agnbusiness sources reckon Crookes needs to build more cntical mass to appeal to the market, although there is consensus that the company’s cash-flow generation, regular dividends and property underpin are attractive Crookes MD Guy Clarke said that although there was plenty on Crookes’ plate at this point, the company, which has maintained a stout balance sheet, was still on the lookout for new opportunities "We will look at other agnbusiness sectors Areas that are doing well at the moment include avocados, blueberries and nuts These niches could offer us new opportunities " Clarke said Crookes was now in an enviable position where its vanous newer projects were either at the formative phase of commissioning or advancing at a reassuring rate He said the aim was to be posttioned to produce a range of crops in diverse regions to mitigate chmatic and market nsks Still, in the six months to September 2016 it was the core sugar operations that sweetened the bottom line The operating profit contribution from sugar, at R134m, was up more than two-and-half times from the previous intenm penod — although Clarke was quick to warn against extrapolating the strong half-year performance to the full year to March 2017 with drought conditions still persisting Drought conditions saw sugarcane production down 19%, but there was a hefty 30% increase m prices Despite sugar's dominance at profit tevel, the split at top line does suggest that bottom line earnings might be more balanced in years to come as yields improve in the deciduous fruit, banana and macadamia operations In the interim period, sugar generated R266m In revenue, accounting for roughly 59% of total revenue But the Western Cape deciduous operations churned R100m, representing about 22% of total revenue Banana sales ~ at R75m ~ represented 17% of total revenue In the next two years, the revenue split could be different with Clarke saying Crookes’ macadamia orchard developments in northern Mozambique continue to make good progress He said the first small crop was expected in March 2017 He predicted the macadamia operation would become a major contributor to operating profit in future [TURN OVER]3t MNG4801 May/June 2017 With newer developments still looking for profitable traction — and the possibility of niche acquisitions - Crookes has retained a conservative dividend policy A gross intenm payout of 50c a share was declared ‘Adapted tom ita nw bugnessive co zafbompanasiand and-agneuture/2016-12-05 cos 400ks Doyen. sugar) 41 Discuss Crookes Brothers’ corporate strategy relating to the incorporation of its vanous agncultural business units in recent years In your answer * Identity the corporate strategy * Provide a broad descnption of this strategy * Explain the conditions which render this strategy wable, and confirm whether these conditions existed for Crookes Brothers Provide an example ftom the case to substantiate your answer [TURN OVER]32 MNGa801 May/June 2017 [TURN OVER}33 MNG4g01 May/June 2017 [TURN OVER}34 MNGAB01 May/June 2017 42 Discuss Crookes Brothers’ inclusion of the Renishaw business unit In your answer Identify the corporate strategy Provide a broad description of this strategy Explain the disadvantages related to this strategy Provide an example from the case to indicate the favourable view of this specific acquisition (6) [TURN OVER]35 MNG4801 May/June 2017 [TURN OVER]36 MNG4801 May/June 2017 43 Evaluate the corporate level strategy of Crookes Brothers in terms of the Rentshaw business unit In your answer « Discuss the attractiveness to stakeholders as means to evaluate a strategic decision «Explain the attractiveness specifically related to shareholders regarding the Renishaw business unit. Substantiate your explanation with two examples from the case. (é) [TURN OVER]37 MNG4801 May/June 2017 [TURN OVER]38 MNG480t May/June 2017 44 Crtically comment on the following statement “Agnbusiness sources reckon Crookes needs to build more critical mass to appeal to the market." In your answer » Explain which corporate strategy would provide the safest way to expand * Explam which corporate strategy would provide the quickest (but riskier) route to expansion © Comment on the conservative dividend policy of Crookes Brothers, and what probable corporate strategy this signifies (6 [TURN OVER]39 MNG4801 May/June 2017 TOTAL: [25] [TURN OVER]40 MNG4801 May/June 2017 QUESTION 5 Leadership (Study Unit 3 3) ts a building block of strategy implementation (Topic 3) Read the following case study based on Carly Fionna, CEO of Hewlett-Packard, and answer the questions that follow One of the most disastrous displays of leadership stems from (at the time) one of the greatest companies in the world — Hewlett-Packard (HP) Appeanng on many contemporary lists as ‘the worst CEO of all time’ is Carly Fiona In 1999, a dysfunctional HP board commuttee, filled with its own poisoned politics, hired her with no CEO expenence, nor interviews with the full board Fired in 2005, after six years in office, HP stock jumped 10% on the news of her fing and closed the day up Inttally, matters appeared rosy There were high hopes for Fionna, after all it was the height of the tech bubble and HP's stock price was skyrocketing She was a charismatic leader, gave speeches praising the employees and labelling them the ‘shining star’ of HP She had a way of making her employees feel like what they were working for actually mattered Fionna completely altered the culture at HP when she took over She was a big believer in positive reinforcement Employees were gwen gold stars to wear on their name badges, the more gold stars an employee had the better benefits they got Fiona, in this aspect, was also a believer in extrinsic motivation She motivated employees through lunches, vacations, and bonuses. But as the tech bubble burst, Fionna had to alter her strategy 6000 employees were immediately fired as part of a cost savings initiative, followed two weeks later by the announcement that HP was going to enter into a near-fatal acquisition of Compaq Fiona, dunng those fiery speeches that made her so popular and inspinng, made promises to not cut jobs She had to break that promise She spent lavishly on corporate jets, high end clothes, and bonuses for high level employees Fionna also eliminated many of the posittve reinforcement programs that had made her popular Fiona delegated all important operational tasks to her core team of chosen executives, rather than the directors traditionally in charge of certain divisions It smacked of cronyism, but Fiorina did nothing to assuage such perceptions Moreover, she radically restructured HP's corporate structure to create a chain of command from the top down As the company cullure used to be charactensed by bottom-up collaboration and teamwork, this move only served to distance her from the organization she was supposed to lead and manage Furthermore, she avoided the employee cafetena, eating lunch in her glass office despite pleas from aides to mingle with rank-and-file workers. [TURN OVER]41 MNG4801 May/June 2017 Fionna came in with a mandate of change, but didn't make any effort to build trust between herself and the company Instead, she damaged her image by exalting herself without regard to her employees’ reactions In 2003, despite 18000 cases of retrenchments and company-wide salary freezes, she bought a personal jet and ensured she and fellow executives received bonuses When she was finally ousted, the board insisted that st wasn't because of corporate results, but because of her “management style" What infunated shareholders, employees and the industry, was that she never took responsibility for any of her decisions - dunng her tenure as CEO, or at any other stage thereafter After being ousted as CEO in 2005, she made an unsuccessful bid to become a US Senator in 2010 In 2015, she announced herself as a Republican candidate for the US Presidency Even as Carly Fionna gained some momentum in the republican primary, her past role as CEO of HP 1s coming back to haunt her in ways which go far beyond her mere incompetence, layoffs, and finng Although she talked tough against the regime in Iran, it tums out she defied an Executive Order and sold millions of dollars in HP computers and printers to that same Iran regime Her dreadful legacy has become a waming of sorts to future leaders The website, carly-fionna-and-hewlett-packard com, serves as a digital age monument where individuals could donate money ‘to stop Carly Fiorina’ ‘Adapted tem nit engnt2leadershp blogspot co za! inp Morne conv20'8/08/ afeary Horna present 27 np wit ybmee com2015/1027/ux/poticeicaly-fena-was-contvathton-‘igure-t howl packard hin itp butmesepundt com (reasons: peope-nalecary-4omnat itp smu davynousion corvnowscary horma-scansel explodes-she-slogaly-sld-mliens no, products-towawv72472) np imo coms845767ealy ona nip eary-pana-anesnewer packard con 51 According to Louw and Venter (2013416) “ executive leaders need to demonstrate certain competencies if they are to engage successfully in their role as descnbed by the various tasks required by them ” Crtically comment on Carly Fiorina’s ability to create an organisational culture In your answer + Explain the meaning of ‘culture’, ‘climate’ and the role of the strategic leader * Discuss Carly Fionna’s impact on the culture and climate of the company * Provide two examples from the case study to.support your critical comment (9) [TURN OVER]42 MNG4801 May/June 2017 [TURN OVER]MNG4801 May/June 2017 [TURN OVER]44 MNG4801 May/June 2017 [TURN OVER]45 MNG4801 May/June 2017 52 ‘Comment on Carly Fionna’s leadership style, olearly distinguishing between transactional leadership and transformational leadership Provide two examples from the case study to substantiate your explanation 7 [TURN OVER}46 MNG4801 May/June 2017 [TURN OVER]5.3 47 MNG4E01 May/June 2017 According to Louw and Venter (2018 416) * top-level executives need [ J to be emotionally intelligent * Evaluate Carly Fionna against the competencies associated with the emotional intelligence expected from a strategic leader Substantiate your answer with examples from the case study (9) (TURN OVER]48 MNG4801 May/June 2017 TOTAL. [25] [TURN OVER]49 MNG4301 May/June 2017 QUESTION 6 Vanous methodologies and approaches form part of the building blocks of strategic contro! (Study Unit 41, Topic 4) Read the following excerpt below and answer the questions that follow Samsung Electronics® profits leapt in the fourth quarter of 2016, despite the humiliating Galaxy Note 7 recall that hammered the reputation of the world’s largest smartphone maker The South Korean tech giant took another blow when prosecutors began | investigating its involvement in a corruption scandal, which has seen the country's president impeached, and sought the arrest of the firm's de facto leader Lee Jae-Yong Ina statement, the group's flagship subsidiary Samsung Electronics said it posted operating profits of 9 22-tnllion won ($7 9bn) during the October to December period, up 50 2% year on year Net profits for the quarter were 7 09-tnllion won, up 120% Eamings were “dnven by the components businesses, mainly the memory business and the display panel segment’, it said, with the stronger US dollar also boosting profits Analysts say memory chip prices have been dnven up by stronger demand as Chinese smartphone makers release devices with high resolution cameras and bigger storage in a bid to catch up with Samsung and Apple As the market leader in multiple segments Samsung's own chip division ‘is the biggest benefactor’, said Tom Kang, research director at Counterpoint Technology Samsung said st expected "huge growth" in the sector, and looked forward to 2017, Greg Roh, an analyst at HMC Investment Secunties, told AFP "We are expecting Samsung to post record-high profits this year on the back of nsing chip prices" For the full year 2016, the firm said in a statement, "Samsung achieved solid results despite the Note 7 discontinuation in the second half — the only reference to the debacle that saw the company withdraw its much-publicised device, originally intended to compete with Apple's iPhone Samsung was forced to discontinue the Galaxy Note 7 in October 2016 after a chaotic recall that saw replacement devices also catching fire In total 3 1-million smartphones were recalled as authorities in the US and elsewhere banned them from use on planes and even from being placed in checked luggage Samsung blamed faulty batteries from two different suppliers for the incidents, which the fim previously estimated would cost it $5 3bn The company has also come up with elaborate step-by-step safety verification procedures for future products to prevent similar disasters, although some analysts remamed sceptical The findings suggested a lack of attention to product testing and a tendency to rush to market for competitive reasons at the expense of quality control, said Jan Dawson, chief analyst at Jackdaw Research "I have confidence that Samsung will make big process changes gomg forward, but less confidence that the culture that fed to these problems wail [TURN OVER]50 MNG4801 May/une 2017 ‘change in the same way,” he said The firm has separately been caught up in a wide-ranging political corruption scandal, with prosecutors last week seeking the arrest of Lee, vice-chairman of Samsung Electronics, on charges of bribery, embezzlement and perury Lee, who became the group's de facto head after his father suffered a heart attack in 2014, 1s accused of bnbing Choi Soon-Sil, and receiving political and policy favours in retum Samsung 1s the single biggest coniributor to two non-profit foundations controlled by Choi, but a court rejected the arrest request due to insufficient evidence The only possible solution to this problem would be the ousting of Lee as head of the Samsung group Adapted tom Mp in businlive co zafbd/eampanps/201/-01-24-samsung posts 50sncrease Mm prois espa note sovaca! 61 Explain and discuss the purpose of strategie control [4] [TURN OVER}51 MNG4B01 May/June 2017 62 Discuss the four types of strategic contro! In your answer ‘* Provide a brief description of each type of contro! ‘+ Identify the respective objectives of each type of control (8) [TURN OVER]52 MNG4801 May/June 2017 [TURN OVER]53 MNG480t May/June 2017 63 Critically comment on the two worsome events that require strategic control In your answer ‘* Identify the two events from the case study, and discuss what type(s) of strategic control (if any) was (or were) employed by Samsung for each event + Explain what type of strategic control should have been employed for each event Substantiate your explanations with examples from the case [10) [TURN OVER]54 MNG4801 May/June 2017 [TURN OVER]55 MNG4801 MayiJune 2017 64 Critically discuss why the employment of strategie control might not prevent future catastrophes for Samsung [3] {TURN OVER}56 MNG4so1 May/June 2017 TOTAL: [25] EXAMINATION QUESTION PAPER TOTAL: [100] © Nisa 201787 MNG4801 May/iune 2017 [ADDITIONAL PAGES) ITURN OVERT58 MNG4801 May/June 2017 [ADDITIONAL PAGES]59 MNG4801 May/June 2017 [ROUGH WORK ONLY - THESE PAGES WILL NOT BE MARKED]60 MNG4801 May/June 2017 {ROUGH WORK ONLY - THESE PAGES WILL NOT BE MARKED]Teer Tear Cana 2 9 8 2 5 3 2 5 2 3S Batch No 28092015MC0 Filln/MCQ_ = x a) zZ D attendance register (student copy) Batch No 28002015§¢C0 [| MIN Exemnetion pena Staton! numbor I Sumame Fest Names Subject Code of paper |_| _ Cone cate LT TET] snout eae Ths 18 to cory that have read the rules govaring the exarnnations as set out on the side cover of ths examination answer book anc in the examnaton insiuctons That he wformation supplied by mo in ths answer book s comect and val ‘undertake to adhere to the procedures, rules and regulations ofthe Universty of South Anca as published i the ofcse brochures Signature of candidate 10 Number TTTTTtTTtTyT Sgnature of mvgtator [ Littl LUNISA yavigiatOrs personnel number NOTE Not a vad document not completed by the inagiator Exammatn penod | | ‘Student number sxe s cove ot oso LLL ETT THT) eet ae Ths fo certy that | have road the rules govornng the examinations as set out on the inside cover f tis examinabon answer book and in the examination instactons That the informaton supped by me mths answer book 18 coteet and vad | undertake lo adhere fo te procedures rules and reguiatens of the Unversity of South Aoca as published in the ofl brochures Sgnature of candidate wb number TTT TT) Satur of mvpitor CI URISA mwas besome urber NOTE Neta vod dcurent nt competed hy he invite