1. STRATEGIC MANAGEMENT 1 (BUSS 420) 2010 (2)
FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE (compulsory) and any Other TWO Questions
QUESTION 1
The Kenya media university has successfully provided education services in Kenya for the last
ten years. The main campus is located in Nairobi and there are satellite campuses in Kisumu,
Nyeri, Nakuru and Mombassa. The university offers a wide curriculum which includes medicine,
Business administration, Education and theology. The management of the university has been
surveying developments in the East Africa region with a view of capitalizing on the
opportunities presented by the Comesa trading block and other regional cooperation initiatives.
One prospective area that the university could expand to is Southern Sudan. There will be a
referendum to decide on whether Southern Sudan will continue under Khartoum or separate
with the north to become the newest African in the next one year. There are all indications that
the Southern Sudanese will vote overwhelmingly to separate with the north. That is the catch.
This development holds many potential opportunities The management of the university is
strongly convinced that with the prospects of independence for southern Sudan, they could
open a new Campus in Juba; there is however a great need to strategically plan for this venture.
The management has approached you for advice in coming up with the strategic plan for the
Juba Campus.
Required
a) Describe the first five steps that the Kenya Media University management has to follow
(bearing in mind that the mission and the policies are not going to change and therefore need
not be addressed for now) in coming up with the strategic plan for the Juba Campus. (10 marks)
b) When analyzing the task environment several factors will be analyzed. Write small notes on
four of these factors. (10marks)
c) You definitely will advice the university management to analyze the societal environment
too. Describe the forces that they will need to analyze in this environment. (10marks)
QUESTION 2
Michael porter contends that the key aspects of the firm’s environment are the industry in
which it competes. The intensity of competition in an industry is a pointer of its attractiveness
and can be made clear by analyzing the five forces of that he identified. Required
Discuss the features that the strategist has to consider while analyzing the following forces;
a) Threat of new entrants (7 marks)
b) The bargaining power of suppliers. (7marks)
c) Threat of substitutes (6 marks)
QUESTION 3

2. By segmenting the value chain of the firm into primary and supportive activities, Companies can
be able to understand which part of their operation creates most value and then work to
enhance these so as to achieve competitive advantage.
Required
Briefly discuss three primary activities and two supportive activities of a) A university (10 marks)
b) A garment making factory. (10 marks)
QUESTION 4
Strategic management is a process. It is directed by the top management to determine the
fundamental goals of the organization. Its success though, lies in the fit and support at the
various organizational levels; thus the need for strategy at each of these levels.
Required
Discuss the concept of value of strategy at the three organizational levels (20 marks)
QUESTION 5
In doing an internal analysis, the firm is doing an internal audit to asses its internal capabilities.
Required
Explain the following methods of doing internal analysis;
a) Analyzing strategic internal factors. (10marks)
b) SWOT analysis. (10marks)
STRATEGIC MANAGEMENT (BUSS 420) 2010 (2)
FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions
CASE STUDY- GRACIER PRODUCTS EXPANSION STRATEGIES
Gracier products is a local ice cream manufacturers started by Mr. Dipam fifteen years ago.
When he started the company Mr. Dipam had set strategies on how to expand the small
operation. The company started with four employees. The main challenge was creating room
for expansion both locally and in the regional market to take advantage of the common market
for East and South Africa Market (COMESA) initiative.
The firm planned to spend over Ksh50 million to introduce new brands of ice-cream, construct
modern factory facilities, buy refrigerated vehicles and also increase capacity. Mr. Dipam says
that management structure did not favor expansion. “There was no human resource
department neither was there organization structure. We expanded and moved towards the
production of quality ice-cream and set up quality control department.”
With three leading ice-cream brands, Mio, Dairy light and dairy land the firm is vying for the
regional market. The company has opened branches in Tanzania and distributes to Rwanda and
Uganda. Locally it has fifteen depots in various parts of the country. The main challenge the
firm faces in low supply of raw milk, particularly when there is draught besides the human
resource issues.

3. Question 1
a) Explain how a firm like Gracier Products Company can realize growth using market
penetration, product and market development strategies. (9marks)
b) Explain the role of management structure and organization structure in the expansion
implementation strategy by Gracier products. (9marks)
c) Discuss the grounds under which Gracier Products Company based their expansion and
challenges the company faces. What advice would you suggest for the company. (12marks)
Question 2
a) “A business or institution is not defined by its name, statutes, or articles of incorporation. Its
defined by its mission.” Discuss this statement and outline the characterization of a good
company’s mission statement (10marks)
b) Differentiate between corporate level strategy and business level strategy (10marks)
Question 3
Strategic management process is vital for small firms just as it is vital for large firms’ success.
Explain how small firms can benefit from the strategic management process and the challenges
they are likely to face (20marks)
Question 4
a) Reluctance to change is usually considered the single greatest threat to successful strategy
implementation. Explain why employees of an organization would resist change and what can
be done to counter this resistance (12marks)
b) Differentiate between horizontal and vertical diversification. (8marks)
Question 5
a) Discuss the strategic role of the board of directors of a company (10marks)
b) Explain the role of SWOT analysis in strategy formulation. (10marks)
STRATEGIC MANAGEMENT I (BUSS 420) 2010 (2)
FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions
Question 1
a) “Mission is a major element of strategic management.” How does it contribute in Strategic
decision making? (4 marks)
b) Explain the major components in a mission statement and how they are related with the
vision of an organization. (6 marks)

4. c) The success of task functions mainly depends on the maintenance functions. Discuss
(8marks)
d) What factors do managers consider while conducting environmental analysis and why? (12
marks)
Question 2
a) Under what conditions will a related diversification strategy not be a source of competitive
advantage for a firm? (5 marks)
b) Describe five reasons why bidding firms might still engage in acquisitions, even if on average
they do not create value for a bidding firm’s stockholders. (10 marks)
c) Describe the role of strategic alliances in an international context. (5 marks)
Question 3
Although cost leadership is perhaps less relevant for firms pursuing product differentiation,
costs are not totally irrelevant.
a) What advice about costs would you give a firm pursuing a product differentiation strategy?
(5marks)
b) Discuss THREE benefits of a cost leadership strategy firms. (3marks)
c) Explain SIX sources of cost advantage. (12marks)
Question 4
a) Differentiate between Emergent and Intended strategies. (6 marks)
b) Discuss the importance of stakeholder analysis. (6 marks)
c) Explain the concept of coalition building in context to strategic management. (8 marks)
Question 5 Explain the concept of Corporate Social Responsibility in modern business.
(20marks)
STRATEGIC MANAGEMENT (BUSS 420) 3rd Trimester 2010
FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions
Question 1
a) Define the terms:
i) Strategic management. (2marks)
ii) Strategy (2marks)
b) Explain and illustrate, with a well labeled diagram, the open system model. (8marks)

5. c) Strategic management is a process rather than an event, because it involves a number of
stages, as opposed to being a one spectacular event. Discuss this statement stating and
explaining all the stages of strategic management process. (18marks)
Question 2
a) Differentiate between the following terms:
i) Horizontal integration and vertical integration
ii) Mission and vision
iii) Core competence and distinctive competence (12marks)
b) What are the advantages does a firm which has adopted overall cost leadership strategy over
its competitors. (8marks)
Question 3
a) State and explain the five forces in the Michael Porter Five Forces Model of analyzing the
industry. (15marks)
b) Define the following terms and give an example in each case.
i) Strategic business units (SBUs)
ii) Synergy (5marks)
Question 4
a) State and explain the external macro-environment of a business organization. (8marks)
b) What are the dimensions of the strategic decisions? (6marks)
c) What is the importance of carrying out the SWOT analysis in an organization? (6marks)
STRATEGIC MANAGEMENT (BUSS 420) 1st Trimester 2011
FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions
Question 1
Business firms have realised that it is in their best interest to approach their entire
management strategically. The ranging competition and the effects of globalization have put
pressure on business firms some much that even firms who enjoyed major market shares have
today found themselves at the verge of closure. To that extent, firms are re-engineering
themselves. Most of them have embraced strategic management. Strategic management is a
process which though not sequential, can be viewed as a step-by-step process.
Required:
a) With the aid of a diagram, illustrate and discuss the strategic management cycle. (10marks)
b) Write short notes on the following steps of this process:
i) Strategic analysis and choices (5marks)

6. ii) Grand and generic strategies (5marks)
c) Discuss three tools that the management of the firms can use to analyze the internal
environment (10marks)
Question 2
The Comfort Liner Transport (CLT) company ltd. has gained a reputation as one of the most
reliable transport companies in Kenya. They provide logistics, transport and cleaning services
for cargo from the port of Mombasa to Nairobi, Western Kenya, Kisumu, Kampala, Kigali, Juba
and Eastern Congo. They are also in the public transport industry. Their buses ply the Mombasa,
Nairobi, Kitale, Eldoret and Kisumu routes. They are on time and very comfortable. They have
even introduced in flight services in their buses almost similar to those provided by the airlines.
The management at CLT now plans to start on airline business with flights between Dar es
Salam, Mombasa, Nairobi, Kisumu, Bukavu and Juba. Before CLT embarks on this ambitious
project, they need to do an external environment analysis.
Required:
a) Economic factors (10marks)
b) Ecological/environmental factors (10marks)
Question 3
Michael Potter advanced the view that industry attractiveness is determined by its current
structure. There are five forces that he identified as having a major role in determining this
structure.
Required:
Explain the major aspects of the following forces:
a) Power of suppliers (10marks)
b) Threat of new entrants (10marks)
Question 4
When a firm decides to pursue growth as its grand strategy, there are mainly two options;
concentration or diversification.
Required:
While citing examples discuss the following diversification strategies:
a) Vertical integration (10marks)
b) Horizontal diversification (10marks)
Question 5
To remain competitive, firms need to identify and evaluate how their resources and capabilities
add value to their processes, goods and services. They need to analyze which parts of their
operations or activities create value.
Required:
What particular areas does the company need to analyze and how will these contribute to value
addition in the following categories:
a) Out-bond logistics (10marks)

7. STRATEGIC MANAGEMENT 1 (BUSS 420) 1st Trimester 2011
SCHOOL : SCHOOL OF BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS Answer ALL Questions in Section A and ANY TWO in Section B
SECTION A
Question 1
The resources, capabilities and core-competencies in a firms internal environment play a critical
role in determining strategic performance. A firm must have core competencies that provide
the basis for responding to environmental opportunities in order to earn above average
returns.
a) From the above extract define capabilities, resources and core competencies. (3marks)
b) How do each of these contribute to gaining a competitive advantage. (3marks)
c) Using the resource based view (RBV) of strategic management, diagrammatically describe
how organizations gain competitive advantage. (8marks)
d) Construct a TOWS matrix for a company of your choice. State 2 factors under each category
and generate 2 strategies that can be adopted for the same. (16marks)
SECTION B
Question 2
a) What are the differences among cost leadership, differentiation, focused cost leadership,
focused differentiation and integrated cost leader ship strategies? (15marks)
b) Describe two functional strategies that an organization can use to gain a competitive
advantage. (5marks)
Question 3
a) Choose an industry in Kenya in which you would like to complete. Use the FIVE forces model
of analysis to explain why you find that industry attractive. (15marks)
b) What are the benefits that accrue from implementing strategic plans in an organization.
(5marks)
Question 4
Write short notes and Distinguish between the following pairs of grand strategies giving
examples of each.
a) Horizontal and vertical integration
b) Conglomerate and concentric diversification
c) Joint venture and strategic alliance
d) Product development and innovation. (20marks)
Question 5
a) Why are budgets, schedules and key success factors essential to operations control and
evaluation. (6marks)

8. b) Strategic decisions are ones that are carried at differentiating an organization from its
competitors in a way that is sustainable in the future. Explain. (14marks)
STRATEGIC MANAGEMENT (BUSS 420) i 1st Trimester 2011
SCHOOL : SCHOOL OF BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions
Question 1
a) Explain the following concepts as applied to strategic management and illustrate your answer
with examples.
i) Conglomerate diversification
ii) Core competences
iii) Tangible and intangible resources
iv) Cost leadership. (12marks)
b) Distinguish between the three levels of strategic decision making explaining. The different
decisions made in each level. (8marks)
c) Explain the strategic management process. (10marks)
Question 2
a) Michael Porter provided a framework that models an industry as being influenced by five
forces. Describe how a strategic business manager seeking to develop an edge over rival firms
can use this model to better understand the industry context in which his firm operates.
(14marks)
b) How does the internet influence the industry forces? (6marks)
Question 3
The company you work for believes it is too small to consider strategic management.
a) What is the difference between strategic and tactical management. (4marks)
b) Explain to the managers the benefits of using strategic management. (8marks)
c) What are the main risks associated with strategic management. (8marks)
Question 4
a) Discuss the characteristics of strategic thinking. (6marks)
b) What is the importance of having good leadership in strategic management. (6marks)
c) What are the major drivers of change in an industry. Give examples using a
telecommunication company of your choice. (8marks)
Question 5
a) Strategy formulation requires an understanding of the environment. Using SWOT analysis
explain the importance of environmental scanning. (6marks)

9. b) Discuss the importance of various organizational structures during strategy implementation.
(6marks)
c) With use of practical illustrations explain the concept of generic strategies. (8marks)
STRATEGIC MANAGEMENT 1 (BUSS 420) 2nd trimester 2011
SCHOOL : SCHOOL OF BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS • Answer Question ONE and any Other TWO Questions
Question 1
a) Explain the advantages and disadvantages of strategic management. (10marks)
b) Define the following terms: Mission, internal analysis, objective policies, values. (10marks)
c) Strategic controls are concerned with tracking a strategy as it is being implemented,
detecting problems or changes in its underlying premises and making necessary adjustments.
Explain FOUR types of strategic control. (10marks)
Question 2
a) Explain the firm`s FIVE remote external environment factors that all companies should be
aware of to be able to compete successfully in the market. (10marks)
b) Company ABC is based in Kenya, they intend to enter the Tanzania Market early 2012; they
have contracted you as a strategist to analyze the market and advice whether is viable or not.
Discuss. (10marks)
Question 3
a) Discuss Social Responsibility and give reasons why companies should embrace and
incorporate an objective on social responsibility on mission statement. (10marks)
b) Michael E. Porter came up with a model on forces driving industry competition. Discuss such
forces as suggested by porter. (10marks)
Question 4
a) Swot analysis is a model used to enable managers establish a Company`s strategic position in
a given industry. Discuss the application of SWOT analysis based on a Company of your choice.
(10marks)
b) Differentiate between corporate and functional level strategies. (10marks)
Question 5
a) Briefly discuss any FIVE grand strategies. (10marks)
b) Explain out sourcing, give the reasons why companies out source their value chain activities
and the benefits derived from outsourcing. (10marks)
STRATEGIC MANAGEMENT 1 (BUSS 420) i 2nd trimester 2011
SCHOOL : SCHOOL OF BUSINESS AND ECONOMICS

10. DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS • Answer ALL Questions in Section A and ANY TWO in Section B
SECTION A
Question 1
a) Define strategy planning and highlight its benefits to organizations. (6marks) b) Differentiate
between long-term and short-term objectives by highlight their key features. (6marks) c) What
is a company mission statement? (6marks) d) Describe FIVE basic components that can be used
to develop a mission statement. (5marks) e) Identify FIVE strategies an organization can pursue
to help it gain a competitive advantage. (5marks) f) Define the following terms as used in
strategic management. o Conglomerate (1.5marks) o Harvest strategy (1.5marks) o Liquidation
(1.5marks) o Concentrated growth (1.5marks)
SECTION B
Question 2
The firms internal environment affects its performance and therefore a firm must develop skills
to identify key strengths and weaknesses. Identify and describe two tools that can help an
organization evaluate its internal environment. (20marks)
Question 3
Many firms neglect industry analysis but this is an important aspect of business which helps a
firm position itself attractively in the industry. Choose an industry in which you would like to
compete, and using the FIVE forces model explain why the industry is attractive. (20marks)
Question 4
a) State and explain TEN qualities of a well-formulated long-term objective. (10marks)
b) Grand strategies provide direction for strategic actions. Identify TEN grand strategies stating
the characteristics and benefits of each. (20marks)
Question 5
What is organizational culture? Why is it important? How can an organization manage the
strategy-culture relationship. (20marks)
STRATEGIC MANAGEMENT (BUSS 420) 3RD TRIMESTER
KENYA METHODIST UNIVERSITY
END OF 3'RD 'TRIMESTER 2011 EXAMINATIONS
FACULTY
: SCHOOL OF BUSINESS AND MANAGEMENT
DEPARTMENT
: BUSINESS ADMINISTRATION
UNIT CODE
: BUSS 420
UNIT
TITLE : STRATEGIC MANAGEMENT I

11. Instructions: Answer Question ONE (Compulsory) in SECTION ONE and
any Other TWO Questions from SECTION TWO.
SECTION ONE
Question One
Outsourcing of some of the value chain activities to outside suppliers have become popular in
the business environment. Discuss outsourcing and give reasons why companies outsource
such activities to outsiders.
(10 Marks)
Explain the following terms: Ethics and Social Audit, Experience Curve, Continuous
improvement, Bench Marking, Key Success Factors.
Adaptive strategies enable managers to choose a strategy that will adapt to environmental
conditions and manage internal activities to support the strategy. Briefly discuss FOUR types of
adaptive strategies. (10 Marks)
Question Two
Assume that you are a strategist of Apple Oil Kenya Ltd. The shareholders have
agreed that the company embark on a market Development strategy in Africa
(10
continent. As a strategist you have been asked to assess potential markets such as
Marks)
Uganda, Tanzania, Rwanda, Burundi and DRC and advice whether the markets are
viable or not. Discuss.
Outline FIVE factors tat influence strategic decision choices.
(10 Marks)
Question Four
Illustrate the FIVE advantages and FIVE disadvantages of strategic
(10
management.
Marks)
Discuss a defensive strategy in relation to telecommunication industry and advise the industry
players when to adopt a defensive strategy.
(10 Marks)
Question Five
Objectives are statements of the results a business seeks to achieve over a specified
period of time. To achieve long-term prosperity, strategic planners commonly
(10
establish long-term objectives. Explain FIVE areas that strategists use to develop
Marks)
long-term objectives.
Outline the role of Finance and Accounts functional department in strategy
implementation.
STRATEGIC MANAGEMENT (BUSS 420) 3RD TRIMESTER
KENYA METHODIST UNIVERSITY
END OF 3'RD 'TRIMESTER 2011 EXAMINATIONS
FACULTY
: SCHOOL OF BUSINESS AND MANAGEMENT
DEPARTMENT
: BUSINESS ADMINISTRATION
UNIT CODE
: BUSS 420
(10
Marks)

12. UNIT
TITLE
: STRATEGIC MANAGEMENT I
Instructions: Answer Question ONE (Compulsory) in SECTION ONE and
any Other TWO Questions from SECTION TWO.
SECTION ONE
Question One
Outsourcing of some of the value chain activities to outside suppliers have become popular in
the business environment. Discuss outsourcing and give reasons why companies outsource
such activities to outsiders.
(10 Marks)
Explain the following terms: Ethics and Social Audit, Experience Curve, Continuous
improvement, Bench Marking, Key Success Factors.
Adaptive strategies enable managers to choose a strategy that will adapt to environmental
conditions and manage internal activities to support the strategy. Briefly discuss FOUR types of
adaptive strategies. (10 Marks)
Question Two
Assume that you are a strategist of Apple Oil Kenya Ltd. The shareholders have
agreed that the company embark on a market Development strategy in Africa
(10
continent. As a strategist you have been asked to assess potential markets such as
Marks)
Uganda, Tanzania, Rwanda, Burundi and DRC and advice whether the markets are
viable or not. Discuss.
Outline FIVE factors tat influence strategic decision choices.
(10 Marks)
Question Four
Illustrate the FIVE advantages and FIVE disadvantages of strategic
(10
management.
Marks)
Discuss a defensive strategy in relation to telecommunication industry and advise the industry
players when to adopt a defensive strategy.
(10 Marks)
Question Five
Objectives are statements of the results a business seeks to achieve over a specified
period of time. To achieve long-term prosperity, strategic planners commonly
(10
establish long-term objectives. Explain FIVE areas that strategists use to develop
Marks)
long-term objectives.
Outline the role of Finance and Accounts functional department in strategy
implementation.
(10
Marks)

13. STRATEGIC MANAGEMENT 1 (BUSS 420) 3RD TRIMESTER 2011
From KeMUWiki
END OF 3'RD 'TRIMESTER 2011 EXAMINATIONS
FACULTY
: SCHOOL OF BUSINESS AND MANAGEMENT
DEPARTMENT
: BUSINESS ADMINISTRATION
UNIT CODE
: BUSS 420
UNIT
TITLE : STR0ATEGIC MANAGEMENT 1
TIME: 2 HOURS
Instructions: Answer Question ONE and any other TWO Questions
Question One
In most large corporations there are THREE levels of management. Discuss
the strategy hierarchy in large business organizations.
Among the crucial functions of business management is planning. Explain
why top managers should prepare strategic plans.
Outline any FIVE elements of strategic management.
(10 Marks)
(10 Marks)
(5 Marks)
Highlight forces behind the rapid increase of the need for strategies
management in 21st Century.
Question Two
Discuss the arguments for environmental forecasting in any business
organization?
(10 Marks)
Using relevant examples explain the benefit of franchising as an international
business strategy.
Question Three
As a newly hired chief executive officer by the Board of Director apply BCG, PLC
and SWOT situation analysis tools on share matrix to explain how you can improve
performance of the organization.
(5
Marks)
(10
Marks)
(15
Marks)
Highlight FIVE levels of strategic change.
(5 Marks)
Question Four
Strategic control is a special type of organization control that focuses on
monitoring and evaluating the strategic management process in order to make
(10
sure it is functioning properly. Explain the process of strategic control in any
Marks)
organization.

14. Discuss the advantages of strategic business unit structure.
Question Five
With relevant examples explain the main issues normally involved in strategic
implementation.
Explain what is competitive strategy and discuss the key factors for future
competitive success of a modern business organization?
(10 Marks)
(10
Marks)
(10
Marks)
STRATEGIC MANAGEMENT (BUSS 420) 2ND TRIMESTER 2012
KENYA METHODIST UNIVERSITY
END OF 2ND TRIMESTER 2012(DAY) EXAMINATIONS
SCHOOL
: BUSINESS AND ECONOMICS
DEPARTMENT
: BUSINESS ADMINISTRATION
UNIT CODE
: BUSS 420
UNIT
TITLE
: STRATEGIC MANAGEMENT
TIME: 2 HOURS
INSTRUCTIONS
Answer question one and any other two from section B.
Question One
development of new Brodvets for the last two years. Though the
turnover is not a problem for the company, the manager and his senior
colleagues have noticed that the workers on hourly basis are not working
up to their full potential. It is well known that they filled their days with
unnecessary and unproductive activities and worked only for the sake of
The manager of
a pay cheque. The situation has become worse and it demands
Bizybee Company
immediate managerial attention and prompt remedial measures. The
has not been
manager knew very well that the only way to progress and prosper is to
involved in research motivate workers to peak performance through various incentive plans.
and
The manager inquired from his deputy, "what is the problem with the
workers in hourly basis? The wage bill shows we pay them the highest in
the industry. Our working conditions are fine, our fringe benefits are
excellent, still our workers are not motivated, what do they require?" His
deputy replied, "I have informed you time and again that money, working
conditions and benefits are not enough.
After a year of no reaction to the workers woes, Bizybee was voted the worst performing
company during the COYA awards; performing as the worst company in customer service and
product quality. The biggest shock was the control system. There was no effective control
leading to immeasurable losses in profits and raw material wastage. The manager’s quagmire
was whether to advice the board of directors to liquidate the company or revamp it.

15. Conduct a SWOT analysis for Bizybee.
(8 Marks)
If you were the manager of Bizybee, how would you have motivated your
employees?
(5
Marks)
The manager is torn between advising on liquidation or revamping Bizybee.
Discuss the strategies that can be used to revamp (Get the company to perform
again) the company.
(6
Marks)
Bizybee had no effective control system. Discuss the components of strategic control
in the strategic management process.
(8
Marks)
List three purposes of strategic control.
(3 Marks)
Question Two
Assume you have been invited as a strategic management consultant to come up with strategic
objectives of a business organization and review their mission.
Discuss the key aspects of a business organization that you would base the
(6
objectives on.
Marks)
It is necessary to revise a mission statement from time to time. Explain the
reasons for this.
(6
Marks)
Discuss four weakness of SWOT analysis.
(8 Marks)
Question Three
Discuss Michael Poster’s generic strategies that would help a firm’s competitive
(10
position in any industry of your choice.
Marks)
Discuss BCG portfolio analysis.
(10 Marks)
Question Four
Although an organization operates as a single unit; the strategies employed are
(10
different. Discus the three levels of strategy.
Marks)
Using a hospital as a case, discuss the 5Ps of strategy according to 5Ps of
Mintzberg.
Question Five
Briefly explain the strategic management process.
Discuss the process you would follow if contracted to come up with a code of
ethics for an organization.
(10
Marks)
(10 Marks)
(8
Marks)

16. Mention four types of social responsibility.
(2 Marks)
STRATEGIC MANAGEMENT 1 (BUSS 420) 2ND TRIMESTER 2012
KENYA METHODIST UNIVERSITY
END OF 2ND TRIMESTER 2012 (EVENING) EXAMINATIONS
SCHOOL
: BUSINESS AND ECONOMICS
DEPARTMENT
: BUSINESS ADMINISTRATION
UNIT CODE
: BUSS 420
UNIT
TITLE
: STRATEGIC MANAGEMENT 1
TIME: 2HRS
INSTRUCTIONS:
Answer Question ONE and ANY Other TWO Questions.
QUESTION ONE
Assume you are a strategist. You have been invited by ABC Company LTD. A Company operating
in telecommunication industry in Kenya. The company has been losing market share at a rate of
an average 10% for the last three years. After undertaking the internal analysis of the firm you
have established the following:
Employees morale has declined therefore affecting performance in the company.
Leadership style is not acceptable by the employee who complains most of the top managers
embrace autocratic style of management.
Customers are continuously switching to competitors products
The information communication systems is obsolete.
Based on the findings of your internal analysis advice ABC Company LTD
a) Board of Directors on the appropriate strategic issues to ensure the
(10marks)
situation is reversed.
b)
Analyze the external environment of ABC LTD and give the Board of directors a
report based on your findings.
Advice ABC Company LTD on a grand strategic choice that they should improve
their performance in the market.
QUESTION TWO
Explain the notion that corporate social
a)
responsibility enhances companies’
competitiveness in the market.
Discuss the importance of
b) planning for Information Systems
to suit Organization strategy.
QUESTION THREE
c)
(10marks)
(10marks)
(10marks)
(10marks)

17. a)
Discuss the levels of strategy including the managers who are responsible for
each level of strategy.
Innovation is a grand strategy that enables a firm to reap initial high profits
associated with creation of wealth customer acceptance. Explain innovation
b)
as a grand strategy including the reasons why companies should endeavor to
be innovative.
QUESTION FOUR
Discuss the following forecasting approaches: Technical forecasts, political
a)
forecasts and economic forecasts.
Explain the responsibility of personnel department and marketing department
in strategy implementation.
QUESTION FIVE
a) Explain a resource based view of a firm as a competitive tool. (10marks)
b)
b)
Discuss the generic strategies as an alternative choice to enhance
competitive advantage.
(10marks)
(10marks)
(10marks)
(10marks)
(10marks)