Exam (elaborations)
MNG3702 Assignment 1 Semester 2 2024 (605474) - DUE 25 July 2024
- Institution
- University Of South Africa
MNG3702 Assignment 1 Semester 2 2024 (605474) - DUE 25 July 2024 QUESTIONS WITH COMPLETE ANSWERS
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MNG3702 Assignment1 Semester 2 2024
(605474) - DUE 25
July 2024
[Company address]
,MNG3702 Assignment 1 Semester 2 2024 (605474) - DUE 25 July 2024
Question 1
“The aim of strategic management is to ensure that an organisation achives a
competitive advantage and sustains its competitive advantage over competitors.”
Apply the process perspective of strategic management process to the Michelin
company, focusing on the ‘History of the Michelin Guide’. In your answer, you
need to explain each stage in the process perspective of strategic management and
apply it to Michelin and the development of the Michelin Guide as an effort of the
company to sustain its competitive advantage. (21 marks, of which 7 marks will be
awarded to each of the stages correctly explained and applied to the case)
To answer this question, we need to apply the process perspective of strategic
management to the Michelin company, focusing specifically on the history and
development of the Michelin Guide. The process perspective of strategic
management typically involves several stages, including strategy formulation,
strategy implementation, and strategy evaluation. Let's delve into each stage and
apply it to Michelin and the development of the Michelin Guide.
1. Strategy Formulation
Explanation: Strategy formulation involves defining the organization's mission,
vision, and objectives, conducting a SWOT analysis (strengths, weaknesses,
opportunities, threats), and crafting strategies to achieve competitive advantage.
Application to Michelin: In the early 20th century, Michelin, a tire manufacturing
company, aimed to increase the demand for automobiles and, consequently, tires.
To achieve this, Michelin formulated a strategy to encourage travel, which would
naturally lead to increased tire wear and sales.
, Michelin Guide Development:
• Mission and Vision: Michelin's mission extended beyond tire
manufacturing to enhancing the overall travel experience.
• Objectives: The primary objective was to promote travel and, thus, increase
tire sales.
• SWOT Analysis: Michelin recognized an opportunity in the emerging
automobile market. Their strength was their established brand in tires, and
they sought to mitigate threats from competitors by creating additional value
for customers.
• Strategy: The strategy involved creating the Michelin Guide, a booklet that
provided useful travel information, including maps, tire repair instructions,
and recommendations for hotels and restaurants.
2. Strategy Implementation
Explanation: Strategy implementation involves allocating resources, establishing
a structure, and ensuring that the strategy is executed effectively.
Application to Michelin: Michelin implemented their strategy by publishing the
Michelin Guide, initially distributing it for free to motorists. This stage required
significant resource allocation, including research and development to gather and
verify travel information, and establishing a distribution network.
Michelin Guide Implementation:
• Resource Allocation: Michelin invested in creating comprehensive content
for the guide, including detailed maps, travel tips, and restaurant reviews.
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