MNG3702
EXAM PACK
,STRATEGY IMPLEMENTATION AND CONTROL -
MNG3702
OCTOBER 2023 NON-VENUE-BASED EXAMINATION
EXAM ANSWERS
Question 1 (10 marks)
‘The Netcare Group invests in growing and continually improving their
capabilities and capacity.’ Make a judgement with regards to the absorptive
capacity of Netcare. Explain the meaning of absorptive capacity and apply its
dimensions to Netcare’s systems and processes.
Answer
Absorptive capacity refers to an organisation's ability to identify valuable knowledge
and information from outside the organisation, understand and incorporate that
knowledge, transform it by combining it with existing knowledge, and ultimately use it to
improve operations, solve problems and create innovation. It is an important strategic
capability because organisations with strong absorptive capacity can learn faster and
respond more effectively to changes in their environment.
The four dimensions of absorptive capacity are acquisition, assimilation, transformation
and application of new knowledge.
1. Acquisition of external information
Explanation:
Acquisition refers to the organisation's ability to identify and obtain useful information
and knowledge from its external environment. The information should be relevant,
reliable and obtained quickly enough to support effective strategic decisions.
,Application to Netcare:
Netcare demonstrates strong acquisition because it continually monitors developments
in healthcare, medical technology and patient care. Its investment in modern medical
technologies and professional expertise enables it to obtain knowledge about new
medical practices and technological developments. Netcare also works with healthcare
professionals, public-sector organisations and other stakeholders, giving it access to
information about changing healthcare needs.
2. Assimilation of acquired information
Explanation:
Assimilation involves analysing, interpreting and understanding newly acquired
information. It also involves sharing the information throughout the organisation so that
it can contribute to informed decision-making.
Application to Netcare:
Netcare's systems and professional structures enable information about healthcare
developments, patient outcomes and operational performance to be analysed and
communicated. Its quality-management systems and clinical reporting processes assist
management and healthcare professionals in understanding performance information
and identifying areas requiring improvement. This allows Netcare to convert external
information into knowledge that can be used within its healthcare operations.
3. Transformation of knowledge
Explanation:
Transformation occurs when an organisation combines newly acquired knowledge with
its existing knowledge and capabilities. The organisation develops new insights,
methods or processes from this combination.
Application to Netcare:
Netcare transforms knowledge by combining medical expertise, technological
developments and its existing healthcare capabilities. For example, new medical
, technologies can be integrated with existing clinical processes to improve patient
treatment and service delivery. Its emphasis on innovation and digital solutions shows
that the organisation does not merely collect information but attempts to incorporate it
into its existing capabilities.
4. Application of new knowledge
Explanation:
Application refers to putting transformed knowledge into practice. The purpose is to
improve organisational performance, solve problems, develop innovations and create
value.
Application to Netcare:
Netcare applies new knowledge through improved healthcare services, investment in
medical technology, improved operational processes and innovations aimed at
improving patient care. Its continuous investment in infrastructure, technology and
professional expertise demonstrates that knowledge is converted into practical
improvements.
Judgement
Netcare can therefore be regarded as having a strong absorptive capacity. Its
continuous investment in technology and professional expertise, interaction with
healthcare stakeholders, quality-management systems and emphasis on innovation
indicate that it can acquire, assimilate, transform and apply knowledge. This
strengthens Netcare's ability to adapt to changes in healthcare and improve its
competitive position.
Question 2 (12 marks)
Draw a strategic map for Netcare by specifying strategic objectives for each
element of the Balanced Scorecard developed by Kaplan and Norton.
Answer
EXAM PACK
,STRATEGY IMPLEMENTATION AND CONTROL -
MNG3702
OCTOBER 2023 NON-VENUE-BASED EXAMINATION
EXAM ANSWERS
Question 1 (10 marks)
‘The Netcare Group invests in growing and continually improving their
capabilities and capacity.’ Make a judgement with regards to the absorptive
capacity of Netcare. Explain the meaning of absorptive capacity and apply its
dimensions to Netcare’s systems and processes.
Answer
Absorptive capacity refers to an organisation's ability to identify valuable knowledge
and information from outside the organisation, understand and incorporate that
knowledge, transform it by combining it with existing knowledge, and ultimately use it to
improve operations, solve problems and create innovation. It is an important strategic
capability because organisations with strong absorptive capacity can learn faster and
respond more effectively to changes in their environment.
The four dimensions of absorptive capacity are acquisition, assimilation, transformation
and application of new knowledge.
1. Acquisition of external information
Explanation:
Acquisition refers to the organisation's ability to identify and obtain useful information
and knowledge from its external environment. The information should be relevant,
reliable and obtained quickly enough to support effective strategic decisions.
,Application to Netcare:
Netcare demonstrates strong acquisition because it continually monitors developments
in healthcare, medical technology and patient care. Its investment in modern medical
technologies and professional expertise enables it to obtain knowledge about new
medical practices and technological developments. Netcare also works with healthcare
professionals, public-sector organisations and other stakeholders, giving it access to
information about changing healthcare needs.
2. Assimilation of acquired information
Explanation:
Assimilation involves analysing, interpreting and understanding newly acquired
information. It also involves sharing the information throughout the organisation so that
it can contribute to informed decision-making.
Application to Netcare:
Netcare's systems and professional structures enable information about healthcare
developments, patient outcomes and operational performance to be analysed and
communicated. Its quality-management systems and clinical reporting processes assist
management and healthcare professionals in understanding performance information
and identifying areas requiring improvement. This allows Netcare to convert external
information into knowledge that can be used within its healthcare operations.
3. Transformation of knowledge
Explanation:
Transformation occurs when an organisation combines newly acquired knowledge with
its existing knowledge and capabilities. The organisation develops new insights,
methods or processes from this combination.
Application to Netcare:
Netcare transforms knowledge by combining medical expertise, technological
developments and its existing healthcare capabilities. For example, new medical
, technologies can be integrated with existing clinical processes to improve patient
treatment and service delivery. Its emphasis on innovation and digital solutions shows
that the organisation does not merely collect information but attempts to incorporate it
into its existing capabilities.
4. Application of new knowledge
Explanation:
Application refers to putting transformed knowledge into practice. The purpose is to
improve organisational performance, solve problems, develop innovations and create
value.
Application to Netcare:
Netcare applies new knowledge through improved healthcare services, investment in
medical technology, improved operational processes and innovations aimed at
improving patient care. Its continuous investment in infrastructure, technology and
professional expertise demonstrates that knowledge is converted into practical
improvements.
Judgement
Netcare can therefore be regarded as having a strong absorptive capacity. Its
continuous investment in technology and professional expertise, interaction with
healthcare stakeholders, quality-management systems and emphasis on innovation
indicate that it can acquire, assimilate, transform and apply knowledge. This
strengthens Netcare's ability to adapt to changes in healthcare and improve its
competitive position.
Question 2 (12 marks)
Draw a strategic map for Netcare by specifying strategic objectives for each
element of the Balanced Scorecard developed by Kaplan and Norton.
Answer
