Strategic Management Module 10
SECTION A – Compulsory Question - Question 1 You have recently bought a small and dynamic company which specialises in developing organic cosmetic products and fake tan products. For success in this industry, innovation and creativity are important factors, together with providing superior customer service at affordable prices. The company realises that building a capable organisation with highly qualified staff is also a key success factor. One of the key challenges for management is to ensure that all staff is highly motivated. You and the top management team have to devise a strategy for the firm’s future, which includes the need to motivate your staff and get their support for this strategy. a) Discuss the motivational approaches that the top management team need to address in order to make their workplace more appealing and spur strategic employee commitment in the strategy execution process. (15 marks) Discussion of any five points (5 x 3 marks) Provide attractive perks and fringe benefits Rely on promotion from within when possible Make sure ideas and suggestions of employees are valued and respected Create a work atmosphere where there is genuine sincerity and mutual respect among all employees State strategic vision in inspirational terms to make employees feel they are part of something worthwhile Share financial and strategic information with employees Have knockout facilities – state of the art facilities – Google, Intel Be flexible in how company approaches people management in multicultural environments. Use of performance related pay Liberal use of non monetary incentives – praise, recognition, flexibility in the workplace, empowerment.
b) Outline the barriers that might impede successful execution. (10 marks) Outline any 5 points: Lack of Financial, technical and human resources Weak leadership Poor Culture Poor policies and operating procedures Competition Bureaucratic structures – inflexibilty Recession Technological constraints (Any 5 points x 2 marks) (Total 25 marks)
SECTION B – Answer any three questions - Question 2 Identify and discuss five key stages involved in crafting and executing the Strategic Management process, giving examples. Discussion of the five key stages in the Strategic Management Process 1. Developing a mission statement and Strategic vision – examples A mission statement - identifies the business purpose, the present business strategy. A mission statement answers the “who we are” “what we do” and “why we are here,” questions. A vision statement a futuristic and answers the questions – “where we are going and how we are going to get there”. Examples of mission and vision statements 2. Setting Objectives – Converts the strategic vision into specific performance targets that act as yardsticks to performance Objectives must be Specific, Measurable, Attainable, Realistic and Time bound Identify the two main types of objectives - financial and strategic – give examples 3. Crafting the Strategies Give brief description of Corporate, Business, Operational and Functional strategies that companies can pursue 4. Implementation of strategies Execution of the strategies is the most crucial part of the Strategic Management process Briefly outline that the organization need the resources both financial and human resources to implement strategy, they need the right structure and systems in place, and they have to motivate staff to achieve strategy, culture and business processes 5. Evaluation and Control Evaluating the company’s progress, assessing the impact of new external developments, and making corrective adjustments. (5 x 5 marks) (Total 25 marks)
Question 3 “If organisations want to stay competitive, they need to understand the importance of Ebusiness to successful strategy execution’’ (Thompson and Strickland, 2010) Discuss the strategy shaping...
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