MNG3701 STRATEGIC
PLANNING EXAM
PACK 2023 100+ QUESTIONS
AND VERIFIED ANSWERS
2023.
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MNG3701 STRATEGIC PLANNING EXAM PACK
OCTOBER/NOVEMBERMEMORANDUM
SECTION A
QUESTION 1 – Differentiate between the THREE phases of the strategic management
process
The three stages or phases o...
QUESTION 1 – Differentiate between the THREE phases of the strategic management
process
The three stages or phases of the strategic management process are:
❖ Strategy formulation
❖ Strategy implementation
❖ Strategy review and control
Strategic formulation is the first stage in which the top management team decides what to do.
This stage involves senior management. At this stage the management analyse the organisation
as well as the environment in which it operates. In the process they set a strategic direction and
decide on the future of the organisation. By and large, this stage is idealistic.
On the other hand, during the strategy implementation everyone in the organisation is involved
in putting the strategy into action. Communication and information dissemination will be done
at this stage. By and large, this stage is practical or pragmatic in nature.
Contrary to the above phases, strategy review and control involves monitoring the progress of
strategy implementation, identifying problems and apply some solutions to correct the
anomalies. Senior and middle managers are involved in the strategy review process. By and
large, this stage is evaluative, analytical and exploratory.
QUESTION 2 –Identify and explain any five components of strategic leadership
A strategic leader is future oriented visionary who anticipate changes. He/she looks beyond the
present by scanning the environment and be vigilant to uncover opportunities inside and outside
the organisation.
Secondly, a strategic leader is an implementer. This type of a leader do not just talk but will
put into practise the best solutions which make a difference. Such leaders have their feet firmly
on the ground so as to be in a position to distinguish between practical solutions and ambitious
dreams.
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, Furthermore, strategic leaders help others to see beyond the establish orthodoxy. These leaders
open new horizons by helping others to experiment with new exciting and more effective ways
of meeting the needs of their clients.
Communication and interpersonal skills are also a prerequisite for anyone in strategic
leadership. By and large, the role of a strategic leader calls for sensitivity to different cultures
and cross cultural issues. By demonstrating such characteristics these strategic leaders value
the input of stakeholders and understand the importance of all parties. They use proactive
communication and frequent engagements to build trust and get their support.
More importantly, strategic leadership must be pursued by people who have good management
of physical and general well-being. Physically fit leaders can be relied upon in times of high
pressure and when problems need too be solved. These leaders must be mentally prepared to
exploit opportunities which arise unexpectedly.
These leaders must be ethical or morally upright. Successful leaders consistently apply the
ethics of justice and caring. Over and above all, they must be skilled in managing conflict
effectively.
QUESTION 3 - Explain the importance of industry assessment as part of external environmental
assessment.
The external environment of an organisation is complex and challenging. The increasing turbulence in this
environment also makes it important for an organisation to do an external environmental analysis by auditing
all the factors that pose opportunities and threats. As many managers and employees as possible must be
involved in the process of external environmental analysis, because involvement in the strategic management
process can lead to an understanding of the organisations situation and a commitment from its members to
the process and implementation of the strategy.
It is imperative that environmental assessment be conducted on a continuous basis because of the constant
change in the environment. The information gathered through environment assessment is then used in
strategic decision making.
The process for conducting a macro environmental assessment is ongoing and consists of four interrelated
activities: scanning, monitoring, forecasting and assessing.
Process for conducting a macro environmental assessment
• Scanning: early signals of environmental changes and trends are identified
• Monitoring: meaning of environmental changes and trends is detected through ongoing observation
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, • Forecasting: based on monitored changes and trends, projections of anticipated outcomes are developed
• Assessing: the timing and importance of environmental changes and trends for organizations strategies
and their management are determined
Some elements of the external environment that will influence the organisation:
- Consumer demand for both industrial and consumer products and services
- Types of product needed to be developed
- Nature of positioning and market segmentation strategies
- Types of services needed
- Choice of businesses to acquire or to sell
- Competitors actions
- The selection of suppliers and distributors
- Governments regulations and laws
Organizations need to anticipate, mobilize and empower their managers and employees to identify, monitor
and evaluate key external forces.
- Accurate information about the environment is very important for strategic decision making and
planning. For example, if organisations know very little about the likes and dislikes of their
customers and future needs they will have some difficulties in designing new products or services
as well as developing marketing strategies.
- Helps managers to identify threats and opportunities
MODEL ANSWER
The boundaries and interfaces that exist between organisations and their external environments are relatively
fluid and cannot be easily or clearly defined. Due to the fact that the organisation interact with its external
environment, the external environment may throw some surprises on an organisation, therefore, there is need
for managers to be prepared to react appropriately to any changes in the external environment. By and large,
accurate information about the environment is very important for strategic decision making and planning.
For example, if an organisation knows little about the likes and dislikes of its customers and future needs,
they will have some difficulties in designing new products or services, developing marketing and strategic
plans. Therefore, lack of information about the environment will place managers in a position in which they
are limited to understand or predict the future.
Understanding of external environment will make managers to understand how the environment affects their
organisation. It helps them to identify opportunities and threats. More importantly, it will help the managers
to broaden or enhance their ability to make decisions and execute plans effectively.
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