Subject: Bus 317 Strategic Management
2011 Trimester 2
Please read these notes carefully:
1. The examination will be based on the following case “Shangri-La” ” via the LMS site for BUS317. 2. You are expected to read the case in detail AND update the information i.e. you are required to know the competitive situation and the internal functioning of Shangri-La to July 2011. 3. You are allowed to prepare a single A4 sheet, double-sided, TYPED. Attach this sheet to your answer script.
4. Your answer to the question need not be long. I would suggest that you spend time THINKING about the information provided to you and evaluating it in light of your own research. 5. Please DO NOT attempt to reproduce everything you have written down on the A4 sheet in your answer. The A4 sheet is a SUPPORT not a CRUTCH!! 6. To help you answer the exam questions, I suggest that your A4 sheet include data on: a. the external, industry and competitive environments in the key markets that Shangri-La operates in e.g. market share, value of market, major players, rates of change, growth rates, business environment; b. Internal analysis to determine organisational capabilities, core competencies e.g. employee productivity, sales per employee, marketing budget, core competencies 7. The 2-hour exam will comprise 1 section, with a choice of 2 questions. You will answer one of these 2 questions, not both. If both are answered, the answer that appears first will be marked. 8. Both questions will ask you to make a judgement call on different options. The questions will provide figures (financial information, performance figures extracted from Shangri-La’s annual reports etc) and you need to recommend a course of action for Shangri-La. While I have already made some calculations for you, you may wish to do more of your own calculations. So a non-programmable calculator may be helpful. While I do not believe it is critical, I do urge you to bring a non-programmable calculator. There is more than enough information provided to you for you to arrive at a conclusion and substantiate it. 9. Study advice:
c. make sure you know the general and industry environments where Shangri-La operates d. internal analysis, e.g. financial strength
e. corporate strategy
f. international strategy
g. IMPORTANT: While these topics cover the main intent of the question, it is impossible to say that only material covered in these weeks can be used to answer the questions. Material from other lectures, by the nature of strategic management, may apply and if they do, you are expected to include that information in your answer – integrate your knowledge.
Sample questions, with a model answer to Q1.:
1. Answer both 1(a) and 1(b):
a. Would Carrefour find the retail grocery industry in Australia attractive (18 marks)? Substantiate your answer by applying the relevant strategic tool to evaluate the industry in Australia. The industry under examination is the XXXX This definition includes X, Y and Z, but excludes A, B and C. A determination of whether nor not this industry is attractive will stem from an analysis of the PEST environment and an analysis using Porter’s industry 5 forces framework.
The XXXX industry is currently worth $YYY and year on year growth has exceeded W%. The industry is the most concentrated XXX industry in the world, with over 60% of the sector held by 2 key players, Woolworths and Coles. In most other countries, the concentration held by the top 2 players does not exceed 40%.
An evaluation of the external environment is undertaken in order to identify opportunities and threats that the industry faces. This evaluation will commence with the PEST analysis. ……
Porter’s 5 forces is used to firstly determine the attractiveness of the industry. This analysis will examine the...