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MNG3701 EXAM PACK 2023.
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MNG3701 EXAM PACK 2023. Detailed working, solutions, memo, notes & explanations.
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MNG3701QUESTIONS AND ANSWERS
LATEST
EXAM PACK
2 0 2 3
,STRATEGIC PLANNING
(MNG3701)
Topic 1
(Explain what strategic management is and how it fits into the contemporary business
environment)
Question 1
Explain what is meant by the concept strategic management (5)
• A set of managerial decisions and actions that determines the long term performance of
an organisation.
• It includes environmental scanning, strategic formulation, strategy implementation,
evaluation and control.
• To create sustain competitive advantages and to achieve the organisation objectives.
• It is about maximization of all stakeholders’ wealth and not only profit maximization.
• It creates new and different opportunities for tomorrow.
Question 2
Diagrammatically depict and explain the strategic planning process (10)
Explanation of the strategic planning process
The strategic planning process is a thinking stage.
It starts with the strategic direction (vision & mission statements and strategic intent).
Internal and external environmental analyses are conducted to identify strengths, weaknesses,
opportunities and threats.
The long-term goals are formulated and then strategy selection takes place.
1|Page
,Question 7
Differentiate between the different levels of strategy. (5)
Corporate strategy is strategy for guiding a firm's entry into and exit from different
businesses, for determining how a parent company adds value to and manages its portfolio
of businesses, and for creating value through diversification.
Business level strategy is more concerned about developing and sustaining a
competitive advantage for the goods and services that are produced. It is strategy for
competing against competitors within a particular industry.
Functional level, decisions involve the development and coordination of resources
through which business unit level strategies can be executed efficiently and effectively
Question 8
Discuss the benefits of strategic management (10)
Benefits of strategic management
Higher profitability – Organisations that engage in strategic planning typically have higher
profitability results, and have shown an improvement in turnover and profits.
Higher productivity – These organisations also tend to have higher productivity because
better planning and utilisation of resources enable them to produce and deliver more
products at a lower cost.
Improves communication – Strategic planning improves both internal and external
communication across the various functions, divisions and stakeholders of an organisation,
and employees of the organisation understand the goals and objectives of the organisation
much better.
Empowerment of employees – Strategic planning can also increase the empowerment of
employees when managers involve employees in developing strategies and give employees
ownership of implementing strategies.
Discipline and a sense of responsibility – It evokes discipline and a sense of responsibility
when the management team takes full responsibility for strategic planning and
implementation.
Better time management – Time management is more effective because the implementation
of strategic plans needs to be completed by specific dates.
Better allocation of resources – When resources are allocated based on the strategies that
are implemented; the strategic management approach also facilitates more effective
resource management.
Encourages proactive thinking – The strategic management approach provides a
framework or process for each employee to see how the strategy progresses and it
encourages the proactive thinking of employees, which in turn lessens resistance to change.
Question 9
Discuss the risks of strategic management (10)
If strategic planning and strategic management are executed incorrectly, it could negatively affect an
organisation's productivity, profitability and competitive advantage.
Time - Strategic planning requires time, and in today’s complex business environment,
managers are often too busy solving short-term problems to focus on long-term strategic
planning.
Unrealistic expectations of managers and employees – Engaging in strategic planning
activities sometimes creates unrealistic expectations in managers and employees.
3|Page
, The uncertain chain of implementation – Strategic planning takes place at top
management level, whilst strategy implementation takes place at all levels of the
organisation.
Negative perception of strategic management – The strategic management approach
might sometimes suffer from a lack of buy-in by potential participants.
No specific objectives and measurable outcomes – Without measurable outcomes, it will
be difficult to determine if strategy implementation is going according to plan.
Culture of change – Generally people in the organisation may be resistant to change.
Success groove – Today’s success is no guarantee of tomorrow’s competitive advantage.
Topic 2
(EXPLAIN AND INTERPRET THE STRATEGIC DIRECTION OF AN ORGANISATION.)
Question 1
Identify and explain any five components of strategic leadership (10)
-This is necessary to set strategic direction.
Determining the company’s purpose and vision
Leaders must articulate the vision and provide guidelines as to where the company wants
to go and what are the key steps that need to be taken in order to reach that position.
Exploiting and maintaining core competencies
Core competencies (which include resources and capabilities that ensure a competitive
advantage) have become the basis of the new competitive landscape.
Developing human capital
Human capital entails knowledge and skills of the organisation’s entire workforce. Leaders
should therefore drive the investment in human capital in order to derive the full competitive
benefit.
Sustaining an effective organisational culture
Strategic leaders who are capable of learning how to shape the organisational culture in a
competitively relevant way will become valued sources of competitive advantage.
Emphasising ethical practices
Ethical practices refer to the moral filter that evaluates a potential course of action.
Establishing balanced organisational control
Controls are needed to guide work in such a way that performance goals are reached.
Question 2
Identify and explain the five tasks of strategic leadership (10)
Recognise the dual nature of strategy (short term as well as long term)
Companies should balance the focus of tomorrow with its current realities.
Start with vision, mission and distinctive profile
A clear sense of mission and distinctive profile is necessary to create a clear-cut
framework for strategy definition and action.
Replace “resource-based” strategy with a new basis of strategy formulation.
In today’s changing markets competencies and resources have to be closely aligned with
future opportunities.
Focus on strategy as being the alignment between the external and the internal worlds
of the company
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