Exam (elaborations)
MNGO3701 (Strategic Planning IIIA)
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MNG3701 QUESTIONS & ANSWERS70% is guaranteed.
NB: Paraphrasing refers to the restatement of a text in different words.
May/June 2022
Question 1
1.1 (a) Transient competitive advantage- Is defined as a company that has the ability
to create temporary advantages in which they obtain opportunities, execute it
and therefore move promptly when they tired the opportunity.
Question 2
(a) Use the case study to identify any five threats from the external environment.
Unhealthy competition
Inherent barriers due to the broadly macro-economic and geopolitical
conditions.
The outbreak of Coronavirus
Reduction of consumer spending due to the economic environment
barriers
The arise of significant coordinated and enhanced internet-crime.
(b) Give detailed recommendations on how Investec can counter threats
identified in a) above.
The companies form the entry barriers that `are factors with the objective to
prevent new rivals to enter, meanwhile, providing protection to available
industry role players. There are six measures or obstacles to entry:
The industry should have capital requirement for entry: this emphasizes that
when capital requirements based on the manufacturing facilities and
equipment, working capital and other start-up costs has escalated, therefore
new or possible competitors will be prevented. Access to distribution of
products or services: In other words, where is a constrain towards creating a
network of distributors or obtaining a retail shelf space is encountered,
therefore new or possible competitors will be prevented. The economies of
scale: This refers to the available companies within a specific market can
meet economies scale when the maximized volume minimizes the unit cost of
a product or service created by a company. It implies that if the economy of
scale has increased, therefore the difficulty of entry will escalate for new or
possible competitors. Cost disadvantages not aligned to size: This implies that
where existing competitors possesses experience, relational, technological
and learning-related cost advantages, which are difficult for new or potential
, MNG3701 QUESTIONS & ANSWERS
70% is guaranteed.
NB: Paraphrasing refers to the restatement of a text in different words.
competitors to replicate and penetrate, therefore result to the formation of
obstacle to entry. High switching costs: This refers to a situation in which the
consumers have a sound brand preference and a massive level of loyalty to
developed brands that makes it difficult for new or potential competitors to
penetrate within the industry, thus, this forms an obstacle to entry.
The strategists need to monitor and anticipate events within the domestic and
international economies. Economic factors are usually interdependent with
social-cultural factors. Companies can benefit if the strategists could
determine and evaluate the effects and opportunities exposed by social-
cultural factors, also control and maintain their alignment and reputation with
stakeholders’ groups. Economic variables and trends require consistent rigor
awareness from management and can require them to review the company’s
vision, mission statement, goals and strategies.
Companies can decide to reinforce the relationships with the nations in which
companies are located on for business and strategic purposes. Some can
decide to determine as international entities because of the access it accords
them to achieve commercial opportunities within the highly recognized
markets. Proper geopolitical risk management demands understanding on the
way to address crisis cross borders. Thus, an organisation can need to
provide a directive on a range of other topics including the proper method to
engage geopolitically serious topics towards publications or speeches and the
way to design contested borders on maps.
Cybersecurity/Technology: This company needs to retain a risk-related
strategy embedding prediction, prevention, detection and response
capabilities to ensure the group is satisfactory protected against enhanced
attacks. Consistent vigilance delivers visibility and allows effective response to
evolving internet risks. In addition, the company need to retain affective
participation within the international internet-security industry to remain
current and precise.
Question 3
3.1 ‘Investec uses the differentiation strategy’. Do you agree or disagree with
this statement? Justify your answer.
Differentiation strategy is categorized by the following aspects or elements:
This business-level strategy targets a broader or niche division of the
market: it could be broad or focused.
, MNG3701 QUESTIONS & ANSWERS
70% is guaranteed.
NB: Paraphrasing refers to the restatement of a text in different words.
Differentiation strategy retain its competitive advantage through
delivering or providing consumers ‘goods or services, which are
attractive and distinctive or special against those provided by
competitors.
It refers to the distinction of product or service elements.
This strategy charges a higher price for goods or services provided.
3.2 During a strategic planning session, there was a proposal for Investec to
introduce affordable business banking in their corporate client offering. This would be
done through a low-cost business account that would target a niche market of small
businesses with a turnover of R250 000 per year.
(a) Identify the business level strategy for the proposed business account.
Best-cost provider strategy
(b) Use the suitability and feasibility key evaluation criteria to evaluate the
proposed strategic choice identified in a) above. (Hint: indicate whether the
business level strategy meets the criteria and provide a reason)
The proposed business-level strategy is suitable as it does what the company
wants it to do, meanwhile, recommending its context. The suitability is the
appropriateness that recommends the selected strategies whether are
appropriate for the nature of the company (Louw & Venter, 2010). Appropriate
strategies have to utilize external opportunities and internal strengths, at the
same time, addressing external threats and internal weaknesses (Jansen van
Rensburg, 2022).
The proposed business-level strategy is viable because this company have
the capacity to execute the selected strategy. The proposed business-level
strategy is viable or practical if the company possesses or is in position to
attain the important resources and capabilities required deploy it (Jansen van
Rensburg, 2022).
Part B
Write a one-page essay to discuss the concepts of resources, capabilities and
core competencies. Illustrate each concept with examples from the Investec
case study.
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