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 ANSWERS
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[Date]MNG3702 Assignment 1
Semester 2 2024
(605474) - DUE 25 July
2024
QUESTIONS WITH COMPLETE 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)
Strategic management involves a series of steps that organizations follow to achieve
and sustain a competitive advantage. When applied to the Michelin company,
particularly focusing on the history and development of the Michelin Guide, we can
observe how these stages have been executed to maintain Michelin’s competitive edge.
1. Strategy Formulation
Explanation: Strategy formulation involves defining the company’s mission, setting
objectives, and deciding on the approaches to achieve these goals. It’s about
determining the long-term direction and scope of an organization.
Application to Michelin: Michelin’s mission has always been about enhancing mobility
and providing high-quality products. In the early 20th century, André and Édouard
Michelin identified a need to increase the demand for automobiles, which would, in turn,
, boost tire sales. They formulated a strategy to provide valuable information to drivers,
thereby encouraging more travel.
The creation of the Michelin Guide in 1900 was part of this strategy. Initially, the guide
provided practical information such as maps, tire repair instructions, and lists of hotels
and petrol stations. This initiative was meant to enhance the travel experience, indirectly
promoting car travel and, consequently, increasing the demand for tires.
2. Strategy Implementation
Explanation: Strategy implementation is the process of putting the formulated strategy
into action. It involves allocating resources, developing structures, and ensuring that the
strategy is effectively communicated and carried out.
Application to Michelin: Implementing the strategy involved creating and distributing
the Michelin Guide. The company invested in the production and widespread
distribution of the guide, initially offering it for free. They ensured that the guide was
comprehensive and user-friendly, thus making it a valuable resource for travelers.
To further embed the guide in the travel culture, Michelin continuously updated it,
adding new sections and information based on feedback and evolving travel needs.
This required a dedicated team and resources to maintain the guide’s relevance and
accuracy.
3. Strategy Evaluation
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