STRATEGIC PLANNING - MNG3701
ONLINE EXAMINATION
MODULE : STRATEGIC PLANNING
MODULE CODE : MNG3701
Date : 24 JUNE 2020
, Question 1.1
In light of the statement above, provide examples of activities to be undertaken by
Capitec management at each management level. Follow the table below as a guide
as you answer this question. (4)
Answer:
MANAGEMENT TYPE OF ACTIVITY
LEVEL PLAN
Middle Tactical a) With extensive data collection and analysis
management plans capabilities Capitec uses ARTIFICIAL
INTELLIGENCE to enhance innovative thinking
in line with its core fundamentals
Low-/first-line Operational b) The bank continuously offers new ways of
management plans banking with products such as Master pass; tap-
and-go and cash send features.
Question 1.2
Use practical examples from the case study to differentiate between a sustainable
competitive advantage and a transient competitive advantage.
Answer:
When an organisation has the ability to perform better than its competitors over a
long period of time, it is said to have sustainable competitive advantage. This takes
us to a clear distinction that „competitive advantage‟ is short-lived while „sustainable
competitive advantage‟ is over a long time. Referring to Capitec‟s case study it is
mentioned that Capitec has been competitive over a long period of time and better
than its competitors on this statement, “Capitec‟s rapid growth over the past decade,
and more has been driven primarily through its simplified approach to banking –
offering one account with fixed fees – which undercut the pricey and often
complicated pricing structures of its competitors”. A sustainable competitive
advantage is difficult to imitate, organisations must create barriers for its competitors
to imitate and innovate its advantages. Organisations may have assets, attributes
and abilities that are difficult to imitate or exceed which will contribute to their
competitive advantage, with the core competences that Capitec has of artificial
thinking, it makes them have a sustainable competitive advantage because it‟s a
core-competence that is inimitable, as mentioned, “With extensive data collection
and analysis capabilities Capitec uses ARTIFICIAL INTELLIGENCE to enhance
innovative thinking in line with its core fundamentals”.
Whilst on the other hand a transient competitive advantage comes about when an
organisation focuses on innovation strategies that continually build up new
advantages where they seize opportunities, exploit it, and move quickly when they
have exhausted the opportunity unlike competitive advantage which focuses on one
ONLINE EXAMINATION
MODULE : STRATEGIC PLANNING
MODULE CODE : MNG3701
Date : 24 JUNE 2020
, Question 1.1
In light of the statement above, provide examples of activities to be undertaken by
Capitec management at each management level. Follow the table below as a guide
as you answer this question. (4)
Answer:
MANAGEMENT TYPE OF ACTIVITY
LEVEL PLAN
Middle Tactical a) With extensive data collection and analysis
management plans capabilities Capitec uses ARTIFICIAL
INTELLIGENCE to enhance innovative thinking
in line with its core fundamentals
Low-/first-line Operational b) The bank continuously offers new ways of
management plans banking with products such as Master pass; tap-
and-go and cash send features.
Question 1.2
Use practical examples from the case study to differentiate between a sustainable
competitive advantage and a transient competitive advantage.
Answer:
When an organisation has the ability to perform better than its competitors over a
long period of time, it is said to have sustainable competitive advantage. This takes
us to a clear distinction that „competitive advantage‟ is short-lived while „sustainable
competitive advantage‟ is over a long time. Referring to Capitec‟s case study it is
mentioned that Capitec has been competitive over a long period of time and better
than its competitors on this statement, “Capitec‟s rapid growth over the past decade,
and more has been driven primarily through its simplified approach to banking –
offering one account with fixed fees – which undercut the pricey and often
complicated pricing structures of its competitors”. A sustainable competitive
advantage is difficult to imitate, organisations must create barriers for its competitors
to imitate and innovate its advantages. Organisations may have assets, attributes
and abilities that are difficult to imitate or exceed which will contribute to their
competitive advantage, with the core competences that Capitec has of artificial
thinking, it makes them have a sustainable competitive advantage because it‟s a
core-competence that is inimitable, as mentioned, “With extensive data collection
and analysis capabilities Capitec uses ARTIFICIAL INTELLIGENCE to enhance
innovative thinking in line with its core fundamentals”.
Whilst on the other hand a transient competitive advantage comes about when an
organisation focuses on innovation strategies that continually build up new
advantages where they seize opportunities, exploit it, and move quickly when they
have exhausted the opportunity unlike competitive advantage which focuses on one
