KENYATTA UNIVERSITY EXAMINATION FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION B INES STRATEGIC BE! D LEADERSHIP 28? SEMESTER 2020/2021 ‘TIME: 3 HOURS INSTRUCTIONS: Question One Read the Case Study and Answer the questions that follow: Hundreds of small unregulated savings and credit co-operative societies (Saccos) with more than Sh100 million and those operating online risk closure after they failed to meet the June regulatory deadline for ‘registration. Onty 157 saccos beat the June 30th deadline for application to the Sacco Society Regulatory ‘Authority (Sasra), out of which 25 have concluded the registration process. The regulator had given the saccos six months to register with those in breach barred from undertaking the specified non-deposit taking business unless they complied withthe Sacco Act and Regulations 2020. “Sasra has today issued 25 specified non-withdrawable deposit-taking saccos with authorisation certificates following ‘compliance to the new 2020 regulations that came into effect on January 1, 2021,” Sasra chairman John ‘Munuve said in a statement yesterday. ‘The regulator introduced new regulations last year to monitor sacco operations including filing regular audits on capital and liquidity. The government seeks to police pooled funds that have accumulated ‘more than Sh100 milion from members. It also wants to track tech-savvy non-deposit taking saccos that collect member contributions cnline and on mobile phones and those that source for funds in the diaspora. Sasra will now regulate ther. Despite having thousands of societies operating as saccos, Kenya only regulates 175 entities, which collect member deposits and issue loans. ‘The deposit-taking saccos, which hold assets worth Sh487.4 billion, are regulated by the Sacco Societies Regulatory Authority that requires submission of timely audits and reserves to back their levels of risk. The rest operate witha certificate from the ministry of cooperatives as non-deposit taking saccos and often fail to submit their audits for years. They accept term and non-withdrawable deposits and provide loans to their members and a few other financial services which are not keenly regulated. The international Monetary Fund says over 2,286 savings and credit cooperative societies that have been allowed to operate without tight regulations are holdin up to Sh153.2 billion in assets posing a serious financial risk tothe system. The IMF technical tearm was able to dig up that the saccos lonsely regulated by the commissioner of cooperatives had given out loans of up to Sh118.22 billion and had taken up peoples deposits of up to Shi17.50 billion, Previous IMF missions in 2015 and 2016 discussed the possibilty to include non-deposit-taking SACCOs in monetary data. At the time ofthe previous missions, no information was available to be able to assess thelr size including total assets and deposits as non- ‘deposit-taking SACCOs institutions did not regularly report their balance sheet data tothe Commissioner for Cooperative Development. — INVOLVEMENT IN ANY EXAMINATION IRREGULARITY SHALL LEAD TO DISCONTINUATION Pagel of 2a) Assume you are the CEO of one of the SACCO’s in the country, what are some of the issues facing the industry from the case study. (10 marks) 'b) Discuss some strategies options that your SACCO can evaluate so as to maintain their ‘competitiveness. (10 marks) ©) Evaluate the environmental forces that are affecting the financial industry in Kenya. (10 marks) Question Two Evaluate the strategies behavior choices adopted by the telecommunications industry in Kenya in the wake of COVID 19, providing relevant examples. (10 marks) ‘Question Three Discuss the concept of strategic behavior orientation and evaluate the five mindsets that strategic leaders can adopt in managing their organizations. (10 marks) Question Four Evaluate the business life cycle of an organization of your choice and discuss the strategies decisions that the strategic leaders make at every juncture of the business life cycle providing examples. (10 marks) Question Five Using the BCG Matrix, evaluate how an organization of your choice can use it to make strategic choices regarding their products portfolio. (10 marks) SS INVOLVEMENT IN ANY EXAMINATION IRREGULARITY SHALL LEAD TO DISCONTINUATION Page2 of 2KENYATTA UNIVERSITY EXAMINATION FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION BBA 829: MANAGEMENT OF STRATEGIC CHANGE 2%? SEMESTER 2020/2021 ‘TIME: 3 HOURS INSTRUCTIONS: ANSWER QUESTION 1 AND THREE OTHRS INSTRUCTIONS FOR: ‘THE WHOLE PAPER QI Read the case study and answer the questions that follow: ‘The National Hospital Insurance Fund (NHIF) is introducing the use of fingerprints to identify its 8.9 million members and their dependants to tackle fraud and speed up payment of medical claims. The State-funded medical insurance scheme has started mass biometric registration as it migrates from the use of NHIF card and national identity card as the mode of identification both which have provided loopholes for fraudulent claims. ‘The scheme has previously been hit by fraudulent claims of people using fake identities to seek medical care and hospitals processing false claims. The biometric regist ‘ion will run together with the installation of electronic claims system as NHIF moves to eliminate manual processing of hospital bills, Hospitals have up to July 11 2021 to switch to e-claim processing system and NHIF members will need to be registered under biometrics to access their cover. ‘The private sector adopted the use of biometric features years back and this has helped curb fraud that in 2009 caused revenue losses estimated at 40 per cent of total claims or Sh. 1.6 billion. ‘The switch to biometrics identification will also eliminate the current challenge where NHIF issues one card for the contributor and their dependants, making it difficult for the beneficiaries to access service when the card is far from them. E-claim system has already been deployed to hospitals in Western, Nyanza, Central, Coast, parts of Nairobi, Eastern and, Rift Valley regions. NHIF targets to cover the remaining regions by July 11 a Discuss the internal and external triggers of the changes in NHIF as explained in the case above? (10 marks) b. NHIF requires a change agent to carry out that change, provide your arguments as to the role of the change agent and whether the organization should use an internal or an external” change agent in this ease. (10 marks) ee INVOLVEMENT IN ANY EXAMINATION IRREGULARITY SHALL LEAD TO DISCONTINUATION Page | of 2c. Using the resistance to change model, discuss th: role of the change agent in managing the resistance to change, both from the internal and external customers. (10 marks) 2. Compare and contrast the Kotters 8 step model and Kurt Lewin 3 stage model showing the interaction and the application of the two models in an organization of your choice (10 marks) 3. Identify five limitations of using the push and pull model when introducing changes within an organization (10 marks) 4. Discuss the contribution of Cumming and Worley planned change model to organizational change providing relevant examples. (10 marks) 5. Identify the application of various organizational development intervention strategies to an organization of your choice. (10 marks) INVOLVEMENT IN ANY EXAMINATION IRREGULARITY SHALL LEAD TO DISCONTINUATION Page 2 of 2KENYATTA UNIVERSITY EXAMINATION FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION BBA $23: STRATEGIC MANAGEMENT 28? SEMESTER 2020/2021 TIME: 3 Hours INSTRUCTIONS: Answer questions ONE and any other THREE questions. QUESTION ONE, FRESH BAKE MUSHROOMS CASE STUDY ‘The management of Fresh Bake Mushrooms a start-up company established early in year 2020 in the midst of coronavirus pandemic decided last year to use an innovative process to combine agricultural waste and mushroom “roots” to grow forms for use in a wide variety of applications, especially a protective packaging material. Not only does this new product replace the need for the environmentally harmful alternative, polystyrene, but the production process is less energy intensive. It exemplifies the cradle-to-cradle design indicative of a sustainability embedded product and attractive to companies looking to reduce their carbon footprint. Mid this year, the ‘company's management decided to introduce strategic management as a way of managing its organization as it plans to expand its business reach. Next year, the partners are considering whether to sign a contract with Tetra Park Kenya Limited, one of the largest distributors of packaging materials in Africa. The deal however, would mean relinquishing control over the only profitable segment of their company. ‘The management is therefore also considering alternative growth strategies to find the one that best fits with their goal: to have the largest impact on the planet while remaining profitable. Required: a) Discuss five (5) reasons that may have led the management of Fresh Bake Mushrooms to introduce strategic management in the company amidst coronavirus pandemic. (10 marks) jes of top management of Fresh Bake Mushrooms in the b) Discuss five (5) responsibi strategic management process. (10 marks) SP ITT Oo©) Discuss any five (5) strategies that the management of Fresh Bake Mushrooms can use to grow the company. (10 marks) QUESTION TWO With reference to an organization you are familiar with, discuss five (5) major steps in the strategic management process. (10 marks) QUESTION THREE 8) Using suitable examples, explain the BCG Growth-share matrix in terms of how it can be used as a planning method for evaluating a company’s Strategic Business Unit’s market growth rate and relative market share. (4: marks) ) Discuss the one relevant Theory and its application to the understanding of strategic management as a discipline in Kenya. (6 marks) QUESTION FOUR Discuss five (5) major factors in the micro environment, and another five (5) in the macro environment in terms of how they influence the strategic decision making in an organization. (10 marks) QUESTION FIVE Using suitable examples, discuss Porter's five forces in terms of how it can be used to assess the attractiveness ofa given market. (10 marks) INVOLVEMENT IN ANY EXAMINATION IRREGULARITY SHALL LEAD TO DISCONTINUATION