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 AND ANSWERS
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[Company name]MNG3702
Assignment 1
Semester 2 2024
(605474) - DUE 25
July 2024
QUESTIONS WITH DETAILED ANSWERS
,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 address this question, we'll apply the process perspective of strategic management
to the Michelin company, specifically focusing on the history of the Michelin Guide. The
process perspective involves several stages, typically including analysis, formulation,
and implementation. Each stage will be explained and applied to Michelin’s strategy and
the development of the Michelin Guide.
### Stage 1: Analysis
**Explanation:**
The analysis stage involves assessing both the internal and external environments of
the organization. This includes evaluating the company’s strengths, weaknesses,
opportunities, and threats (SWOT analysis). The goal is to understand the competitive
landscape and identify key factors that can influence the company’s strategic decisions.
**Application to Michelin:**
, Michelin, a tire manufacturing company, recognized the need to promote automobile
travel to increase the demand for tires. In the early 20th century, road conditions and
travel infrastructure were developing, and there was a lack of reliable travel information
for motorists. Michelin identified an opportunity to influence the market by encouraging
more people to travel by car.
To capitalize on this opportunity, Michelin conducted an analysis of the needs of
motorists. They understood that providing valuable travel information could promote
more road usage, indirectly boosting tire sales. This analysis led to the creation of the
Michelin Guide in 1900, which initially included maps, tire repair and replacement
instructions, car mechanics listings, hotels, and petrol stations throughout France.
### Stage 2: Formulation
**Explanation:**
In the formulation stage, the organization develops strategies based on the insights
gained from the analysis stage. This involves setting long-term objectives and
determining the best course of action to achieve these goals. The formulation should
align with the company’s vision and leverage its core competencies.
**Application to Michelin:**
Michelin formulated a strategy to create a comprehensive travel guide that would
become indispensable to motorists. The Michelin Guide was part of a broader strategy
to enhance the company’s brand image and establish a competitive advantage by
associating the Michelin name with quality and reliability in travel.
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