CONFIDENTIAL 1 AC/FEB 2022/MAF661/640

UNIVERSITI TEKNOLOGI MARA

FINAL ASSESSMENT

COURSE : STRATEGIC MANAGEMENT

COURSE CODE : MAF661/640
ASSESSMENT : FEBRUARY 2022
TIME : 3 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of four (4) questions.

2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.

3. Do not bring any material into the examination room unless permission is given by the
invigilator.

4. Please check to make sure that this examination pack consists of:

i) the Question Paper

5. Answer ALL questions in English.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 4 printed pages
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QUESTION 1

Ayam Desa Sdn Bhd (ADSD) is the major supplier to a fast-food chain in the country. The
company engaged in the processing and marketing of fresh chicken and further processed
chicken and prepared chicken products. It offers a range of products for its customers, such
as chicken fillets, nuggets, chill packs and patties for burgers, which are packaged in various
quantities. Many customers prefer to purchase from ADSB because of the low prices offered
for most of ADSB products. A dietitian, a nutrition expert from Ibnu Sina Specialist Hospital,
has just approached ADSB for the supply of special processed chicken products for their
heart patients. The dietitian also agrees to collaborate in the production development with
ADSB to increase consumers' awareness of health. The company's Managing Director is
keen to follow up on the idea but is skeptical about the marketing of the special processed
chicken products, which he suggests to offer the product at a premium to its targeted
customers.

Required:

a. Describe how ADSB gain its competitive advantage with the current business-level
strategy.
(10 marks)

b. Discuss three (3) advantages of the business-level strategy suggested by the

managing director for its special processed chicken products.
(10 marks)
(Total: 20 marks)

QUESTION 2

Giant Holding (GH) is a construction company which was established in 2001. GH has
broadened its operations into several sectors include tourism, food, and telecommunications
sectors. Dato' Nizam, the CEO, convened a top management meeting, during which he
announced that the Group's earnings had plummeted to a new low for the organization. GH's
underwhelming performance was associated with the difficulties in managing the diversity of
its business portfolio. Accordingly, Dato’ Nizam is now considering divesting its food division
because of its insignificant contribution to the company’s overall performance. However, the
company's upper management is not fully in favor of the divestiture idea. Raymond Chia, the
Group Chief Operating Officer, stated that divestment necessitates the development of a
well-thought-out plan to avoid the loss of a present competitive advantage.

Required:

a. Explain how using the Boston Consulting Group (BCG) model can help GH in portfolio
management.
(10 marks)

b. Discuss any three (3) principles of effective divestiture that GH's management should
consider for its divestment drive.
(10 marks)
(Total: 20 marks)

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QUESTION 3

Bintang Maya Bhd (BMB) was established in 2010 with its major operation concentrated on
construction and development. In 2018, BMB began to make its name and was awarded the
ISO 9002 certificate upon completion of a 4-star hotel and a shopping complex which the
building became a landmark in the township of Sungai Petani. BMB believed that their
employees were the company's valuable assets. A series of training had been conducted to
create good spirit among its employees especially for the new employees to promote better
sense of belonging towards BMB. Team building sessions were also carried out regularly for
all of its employees and to enhance a close working relationship among the employees.

In early June 2021, during the weekly managerial meeting, Mr Azam, the project director
chaired the usual weekly progress meeting. He was upset with the progress of the project as
it was 4 months behind the scheduled completion date. The project is expected to be
completed within 30 months. After 15 months it started, the progress of the work only
reached 30% completion. Investigation conducted on project delay indicates several issues
relating to the human resources involved with the project’s operations. The management
received a lot of complaints about the attitude of the workers. The top management has
raised concern on the issues and requested Miss Hana, the Human Resources Manager to
present a report on the employee issues and the turnover rate. He was quite surprised as
the employees’ turnover rate was on the rise among the lower-level employees. Based on
their employee exit survey conducted in May 2021, the result revealed various reasons of
the employee’s departure, such as job dissatisfaction, poor work environment, unclear
directions from the superiors and getting other job opportunity.

Mr Azam realized that talent management of the employees is crucial and need continually
reassess for his business to succeed. He seldom questioned the employees on how to do
the job but always insisted on the objectives of doing the job. Some of the employees begin
to feel like the minimal interaction on employee’s work, no direction, feedback, or support
had affected their emotion. Miss Hana foresee one of the initiatives to improve job
performance and satisfaction is to introduce an effective reward system that integrates
financial and non-financial rewards, especially to frontline workers. Mr Azam then instructed
Miss Hana to design and implement a systematic performance appraisal system and
provided adequate feedback to employees. He also stressed on developing a strategic
reward system for the employees to address the four areas of performance-related;
compensation, benefits, recognition and appreciation.

Required:

a. Discuss three (3) emotional intelligence components that Mr Azam should attain in
managing good relationships with the employees.
(10 marks)

b. Discuss three (3) cultural control that BMB can develop to create social norms and
sense of shared values within the organization.
(10 marks)

c. Discuss any three (3) characteristics of an effective reward system that can serve
useful purpose for BMB to remain competitive.
(10 marks)
(Total: 30 marks)
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QUESTION 4

Chocobloc Sdn Bhd (Chocobloc) produces high quality chocolate bars since the year 1997.
The company always ensures the quality of the product ingredients. Cocoa, the main raw
materials for production, are imported from Belgium whereas, milk is sourced from local
dairy farms. Chocobloc produces a wide range of chocolate bars that are distributed by a
logistics company to retail stores throughout the country. Chocobloc has patented the
formulas for all of its established and new products. The company spends considerable
funds on research and development for developing its new product. Before launching new
product, Chocobloc engages in market research program to assess customer demand for
the product.

Since the market research indicates a strong likelihood of success, the Chief Operating
Officer (COO), Mr Zafrul, suggests to invest heavily in advertising and promotion. He also
suggests to set up a team of sales representatives in each sales region to take orders for the
chocolate bars. He is confident that the new marketing strategy will help to increase the
company’s sales revenue which is aligned with the company’s vision, ‘to be at the top of the
list’. He believes that a leader who is more invested towards company’s vision will be able to
inspire those around them to connect to the shared vision within the organization. Mr Zafrul
is having high motivation and patience to work on his goals and always giving his
commitment to all tasks.

Nevertheless, a brainstorming session at the top management level contended on Mr

Zafrul’s idea. They have highlighted on the innovation and collaboration opportunities that
the business should look into. While Mr Zafrul also agreed as he looks into the ignorance
and insensibility of their employees, the management highlights that it is critical for the
company to cultivate problem solving, creativity and communication to promote innovation
among employees at all levels. In addition, Chocobloc also need to challenge the status quo
mentality of their staffs by fostering a culture that encourages risk-taking such as moving its
goalposts, bringing in outsiders and learning from mistakes. The management is also in
mind of engaging in corporate entrepreneurship so that exposing them to new technologies,
making them aware of marketplace trends, and helping them evaluate new possibilities,
including scale and expertise. Mr Zafrul then decides to revisit their company’s vision and
crafting strategies in the hope of doing something new and exploiting opportunities that act
entrepreneurially.

Required:

a. Discuss three (3) entrepreneurial leadership characteristic that Mr Zafrul should

possess in motivating staffs to work together in achieving their shared goals.
(10 marks)

b. Explain three (3) ways of how top management can improve the innovative potential to
continually seek out opportunities to develop competitive advantage.
(10 marks)

c. Discuss three (3) dimensions of entrepreneurial orientation that Chocobloc may

emphasize to identify and launch new ventures.
(10 marks)
(Total: 30 marks)

END OF QUESTION PAPER

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