Business Strategy Assignment 2 Guide - Mock Examination 2024
Lecturer: Mrs. Amrika Baboolal
Good Luck!
Name: Nadine Richardson
Student number: 23077664
Instructions
This quiz/mock examination is designed to test student knowledge and
understanding of the 10 Units in this course Business Strategy. It is essential that
you complete all the sections listed below.
These are not the questions that you will see on the day of the examination as these
are past paper questions, homework questions, unit questions, quizzes on Studynet
but it is geared to assisting your critical analysis, your writing skills and most
importantly time management skills.
There are two sections A and B.
Section A consists of 10 multiple choice questions of varying complexities. You are
required to attempt and answer all 10 questions. Section B consists of 4 short
answer questions in which you will answer all to your best ability. Each short answer
question should be approximately 250 - 300 words (this is inclusive of your intext
citations). Each short answer should have an accompanying reference list which
should be formatted in accordance to the Harvard referencing format. You have
three (3) hours to complete this examination.
On completion please email answers to ababoolal@ctscollege.com
START: 7PM
END: 10 PM
SECTION A
INSTRUCTIONS
This section consists of 10 multiple choice questions. Each question has four answer options
(A, B, C, D). Select the letter corresponding to the best answer for each question and input it
in the answer space. Each question is worth 2 marks. Read each question carefully and
thoroughly before selecting an answer.
Question 1
Question
A PESTLE analysis helps a business review the external uncontrollable environment the
business operates in. The PESTLE analysis comprises the following 6 factors
A. Political / Economic/ Socio cultural /Technological / Legal / Environmental
B. None of the above
C. Political / Economic / Socially acceptable / Technological / Legal / Environmental
D. Political / Ethical / Socio cultural / Technological / Legal / Environmental
Answer: A
Correct
Question 2
What are the benefits of avoiding strategic drift in an organisation?
A. Increased innovation and adaptability
B. Higher employee turnover
C. Enhances customer satisfaction
D. Delayed Decision Making
Answer: A
Correct
Question 3
Which phase of the industry life cycle is characterised by intense competition, market
saturation and a focus on cost efficiency?
A. Introduction
B. Growth
C. Maturity
D. Decline
Answer: C
Correct
Question 4
In Mendelow’s Stakeholder Matrix, stakeholders with high power and high interest are
considered:
A. Minimal
B. Latent
C. Key players
D. Definitive
Answer: C
Correct
Question 5
A SWOT analysis summarises the strengths, weaknesses, opportunities and threats likely to
impact on corporate strategy development. There are some dangers with this analysis that can
prevent it from being used effectively. Please identify the three most common.
A. Over generalised statements made that are biased and based on opinion / Long list
with no attempt to prioritise / SWOT is converted to a TOWS and people can’t read
either document
B. Over generalised statements made that are biased and based on opinion not research /
A lot of analysis and priorities are in place but managers cannot read / SWOT is not
used as a guide, it is seen as an end in itself
C. Over generalised statements made that are biased and based on opinion / Long list
with no attempt to prioritise / SWOT is not used as a guide, it is seen as an end in
itself
D. Statements that are made are prepared by only one department within the business. /
Long list with no attempt to prioritise / SWOT is not used as a guide, it is seen as an
end in itself
Answer: C
Correct
Question 6
Which aspect of the Yip’s Globalisation framework emphasise the need for adaptation of
products and services to meet local preferences and cultural differences in international
markets?
A. Market Globalisation
B. Global Strategy
C. Multinational Strategy
D. Local Responsiveness
Answer: D
Correct
Question 7
Ansoff (1988) created the Ansoff product/market growth matrix which provides a useful tool
to get discussion flowing on four directions for corporate strategic growth based on a blend of
market growth/creation and product/service growth. These four stages are;
A. Group of answer choicesMarket penetration / Market development / Product
development / Diversification
B. Market penetration / Market contraction / Product development / Product contraction
C. Market penetration / Market changes / Product development / Diversification
D. Market penetration / Market moves / Product development / Diversification
Answer: ACorrect
Question 8
Company’s may seek to grow in different ways other than developing new markets or new
products and services. Instead they may wish to grow larger through integration. Integration
can be achieved through one of three routes. These are;
A. Vertical / Underground / Forwards
B. Vertical / Upwards / Forwards
C. Vertical / Backwards / Forwards
D. Vertical / Skywards / Forwards
Answer: C
Correct
Question 9
A mission statement
A. Aims to provide employees and stakeholder with clarity about the overriding purpose
of the organisation
B. Should communicate the underlying and enduring core “principles” that guide an
organisation’s strategy and define the way that is concerned with the desired future
state of the organisation
C. An aspiration that will enthuse, gain commitment
D. Are statements of specific outcomes that are to be achieved.
Answer: A
Correct
Question 10
▪ Schein (1998), argues that there are for “layers” to organisational culture. Briefly
these are identified as;
A. Values/ Beliefs / Behaviours / The “paradigm”
B. Values / Staff / Behaviours / The “paradigm”
C. Management / Functions / Customer complaints / Product returns
D. Pay / Reward / Money / Shares
Answer: A
Correct
- EXCELLENT!
SECTION B
This section consists of 4 short answer questions. You are to do all 4 questions and answer
them to the best of your ability. Each question should be approximately 250 - 300 words and
should include intext citations and a reference list for each question. You are free to use
diagrams, charts etc in your answers (however if it is too lengthy it can be counted in the
word count). Each question is worth 20 marks.
Question 1
The pressure to internationalise a business has increased in recent years as barriers to
international trade have reduced. However, there are risks as international markets can be
different and organisations must be able to counter and exploit country-specific or
geographical advantages, JSW (2017). With reference to Yip (2003), Porter’s Diamond and
the CAGE model, critically assess the opportunities, but also difficulties, that organisations
face in moving abroad.
Answer:
The pressure for businesses to internationalise has increased due to factors such as reduced
trade barriers, technological advancements, and market globalisation (JSW, 2017). Theories
like Yip’s Globalisation Framework, Porter’s Diamond Model, and the CAGE Distance
Framework provide insights into the opportunities and challenges of international expansion.
Yip’s framework highlights drivers such as market and cost factors that encourage businesses
to standardise products and achieve economies of scale across borders (Yip, 2003). Porter’s
Diamond emphasizes how national competitive advantages like skilled labour or advanced
infrastructure can be leveraged to enhance international competitiveness (Porter, 1990). The
CAGE model (Ghemawat, 2001) suggests that understanding differences in cultural,
administrative, geographic, and economic factors can guide firms in exploiting country-
specific advantages. However, challenges exist, such as cultural and administrative
differences (e.g., regulatory issues, trade barriers), which can complicate market entry. Factor
conditions, like reliance on low-cost labour or inadequate infrastructure, also pose risks
(Porter, 1990). Furthermore, businesses must decide whether to standardise products for
efficiency or adapt them to local market needs, a balance that is difficult to achieve (Yip,
2003). Therefore, while internationalisation offers growth opportunities, it also requires
careful strategic planning to navigate the complexities of new markets.
- Good Work
Question 2
The strategic development or large organisations is often described in terms of systematic
analysis and exploration, Grant (2003). However in reality this is not the way that strategy
develops in practice. Mintzberg (1985) suggested that such plans will inevitably be subject to
change and emergent strategies will have to be developed. Discuss, with examples, why the
traditional rational planning process usually has to respond to constantly changing
circumstances.
Answer:
The traditional rational planning process for strategic development, as outlined by Grant
(2003), often assumes a systematic and linear approach where strategy is formulated through
analysis and implemented according to a fixed plan. However, Mintzberg (1985) argued that
in reality, strategies must evolve in response to changing circumstances, as the business
environment is dynamic and unpredictable. External factors like technological advancements,
shifting consumer preferences, and economic disruptions often force companies to adapt their
strategies. For example, Kodak's failure to adapt to the rise of digital photography, despite
early market signals, illustrates the dangers of rigid planning in a rapidly changing industry.
Explain that Mintzeberg emergent strategies help organisations to respond to a
dynamic, ever-changing environment.
In contrast, Apple’s strategy of pivoting from personal computers to consumer electronics,
driven by emergent opportunities, showcases the flexibility needed for success. Moreover,
unexpected events like the COVID-19 pandemic can disrupt even the most well-laid plans,
requiring businesses to adjust their strategies quickly.
As companies implement their strategies, new insights and challenges often lead to
modifications, underscoring the need for strategies to be flexible and responsive, rather than
strictly following a rational, predetermined plan (Grant, 2003; Mintzberg, 1985).
In your conclusion, state that a balanced approach (combination of deliberate
planning and adaptability) is needed, and emphasize that strategies must evolve in
response to changes in the macro-environment.
Question 3
In a recent paper, Peter Thiel (2014), suggested that ‘competition is for losers’ – innovative
companies can build through technology, a competitive edge that keeps new entrants at bay.
Critically evaluate that statement as we see the growth of multinational giants such as
Google, Microsoft, Amazon, and Alibaba take even stronger positions on world markets
Answer:
Ensure your points are referenced.
Peter Thiel's statement that "competition is for losers" (Thiel, 2014) suggests that the most
successful companies are those that create monopolies through innovation, technology, and
unique business models, rather than competing in crowded markets. Thiel argues that
businesses that can build unassailable competitive advantages such as proprietary technology
or ecosystems can dominate their industries and avoid the pressures of competition. This idea
is reflected in the strategies of tech giants like Google, Microsoft, Amazon, and Alibaba,
which have all created monopolistic positions through technological superiority and scale.
For instance, Google dominates search with over 90% of the market share, not through
competing with rivals like Bing, but by continually refining its algorithms, enhancing its data
capabilities, and expanding into adjacent markets like cloud computing and hardware.
Similarly, Amazon has become the largest e-commerce platform by leveraging its vast
logistics network and technological infrastructure, creating significant barriers to entry for
new competitors. However, while these companies have successfully used innovation to
reduce competition, Thiel’s view overlooks the potential negative consequences of such
dominance. The concentration of power in the hands of a few companies can lead to anti-
competitive behavior, as seen in the antitrust actions against Microsoft in the late 1990s and
early 2000s. Furthermore, large firms may stifle innovation by absorbing potential
competitors through acquisitions or monopolistic practices, as when Facebook acquired
Instagram and WhatsApp. Moreover, the market dominance of these giants raises concerns
about the lack of competition and its long-term impact on innovation and consumer welfare.
Regulatory scrutiny on monopolistic practices has increased, particularly in the EU and the
U.S., where laws are being enacted to curb market concentration. Thus, while technology can
create monopolies, it is important to balance innovation with ethical considerations and
market regulation.
Present another point of view, stating that there should be Balance Between Innovation and
Competition
Discuss how competition drives innovation and improves market efficiency.
Show that even dominant firms must adapt to compete in evolving landscapes.
For your Conclusion
Acknowledge the strength of Thiel’s argument in advocating for innovation-driven
dominance. State that while dominant firms may disagree with the idea of competition, it is
essential for long term success.
Question 4
Implementing strategy within a business is affected by the culture of the
organisation and how ready it is to accept and adapt to changes in working practices.
The cultural web was developed in 1992 by Johnson & Scholes and it identifies seven
factors that make up the web. These are Stories, Symbols, Power structures,
Organisational structures, Control Systems, Rituals and Routines and the paradigm.
After initially exploring the importance of understanding corporate culture (for up to 5
marks), move on to explain in detail what Power structures, organisational structures
and control systems relate to within a company of your choice. (For up to 5 marks for
each)
Answer:
Understanding corporate culture is crucial for successful strategy implementation because it
shapes how employees respond to change and how effectively strategic goals are executed.
Introduce Johnson & Scholes’ Cultural Web as a framework for analyzing organisational
culture. Corporate culture encompasses shared values, beliefs, and behaviors that influence
decision-making, communication, and the overall climate within the organization. For
instance, companies with an innovative culture, like Google, tend to embrace new strategic
initiatives and adapt quickly to changes, while those with a more traditional culture might
resist change, impeding strategy execution.
In this context, the power structures within a company who holds authority and how power is
distributed play a vital role in strategy implementation. In centralized companies like Apple,
decision-making is concentrated at the top, allowing for clear direction and quick execution
of strategy. This centralized power structure ensures alignment across the organization. On
the other hand, decentralized power structures, like those in Amazon, allow for more local
decision-making, fostering flexibility and responsiveness but potentially complicating
consistent strategic execution.
Organisational structures also significantly impact strategy implementation, as they determine
the division of tasks, authority, and communication flow. For example, a functional structure
at Microsoft allows specialized teams to focus on specific strategic goals, such as software
development, enhancing efficiency in execution. In contrast, Amazon’s matrix structure
fosters cross-functional collaboration, enabling quick adaptation but requiring careful
management to avoid role confusion.
Lastly, control systems ensure that strategy is implemented effectively by monitoring
performance and aligning activities with strategic goals. Companies like Toyota use
continuous improvement systems, while Amazon relies on data analytics and KPIs to ensure
operational alignment.
Ultimately, aligning power structures, organizational structures, and control systems with
strategy is essential for successful implementation, as seen in companies like Apple and
Amazon.
In your conclusion, state the importance of understanding cultural elements, especially,
power structures, organisation structures and control systems in order to execute effective
strategies.
REFERENCE LIST
Distance still matters: The hard reality of global expansion (2024) Harvard Business Review.
Available at: https://hbr.org/2001/09/distance-still-matters-the-hard-reality-of-global-
expansion (Accessed: 13 December 2024).
Porter , M.E. (1990) (PDF) porter’s competitive advantage of nations: Time for the final
judgement? Available at:
https://www.researchgate.net/publication/227630471_Porter’s_Competitive_Advantage_Of_
Nations_Time_For_The_Final_Judgement (Accessed: 13 December 2024).
FZE, B.B.C. (2024) Total global strategy: Managing for worldwide competitive advantage,
UKEssays. Available at: https://www.ukessays.com/essays/marketing/total-global-strategy-
managing-worldwide-competitive-advantage.php (Accessed: 13 December 2024).
GRANT, R.M. (2003) (PDF) Strategic Spatial Planning and the longer range. Available at:
https://www.researchgate.net/publication/233557046_Strategic_spatial_planning_and_the_lo
nger_range (Accessed: 13 December 2024).
Mintzberg, H. (1994b) Mintzberg, H. (1994) The rise and fall of strategic planning. Free
Press, New York. - references - scientific research publishing. Available at:
https://www.scirp.org/reference/ReferencesPapers?ReferenceID=1166251 (Accessed: 13
December 2024).
Thiel, P. (2014) Zero to one: Notes on startups, or how to build the future: Hardcover,
Barnes & Noble. Available at:
https://www.barnesandnoble.com/w/zero-to-one-peter-thiel/1115559270 (Accessed: 13
December 2024).
Love, B. (2014) Exploring corporate strategy exploring corporate strategy I T I O N,
Academia.edu. Available at:
https://www.academia.edu/9336404/Exploring_Corporate_Strategy_Exploring_Corporate_St
rategy_I_T_I_O_N (Accessed: 13 December 2024).
END OF TEST
