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BSL712S - SME STRATEGY AND LEADERSHIP - 1ST OPP - NOV 2024 |
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nAml BIA UnlVERSITY
OF SCIEnCE AnDTECHnOLOGY
FacultyofCommercHeu, man
ScienceasndEducation
Schoool f Commerceand
ManagemenSt ciences
Departmenot f Governance
and ManagemenSt ciences
13Jackson Kaujeua Street
Private Bagl3388
Windhoek
NAMIBIA
T: •264 61207 2398
F: •264 61207 9398
E: dgms@nust.na
W: w1vw.nust.na
QUALIFICATION: Bachelor of Business Management
QUALIFICATION CODE: 07BBMN
LEVEL: 7
COURSE: Small and Medium Enterprise Strategy
and Leadership
DATE: November 2024
COURSE CODE: BSL712S
SESSION: PAPER 1
DURATION: 3 Hours
MARKS: 100
FIRST OPPORTUNITY EXAMINATION PAPER
EXAMINERS: Ms Esther Olivier
MODERATOR: Dr Chris van Zyl
INSTRUCTIONS TO CANDIDATES
1. Answer ALL the questions.
2. Write clearly and neatly.
3. Number the answers clearly
PERMISSIBLEMATERIALS
1. Business calculator
THIS QUESTION PAPER CONSISTS OF 5 PAGES(Including this front page)
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SECTIONA
[20 marks]
Question 1
[10 x 2 = 20 marks]
Choose the correct option and indicate your choice (A-D) next to the appropriate number in the
examination book provided. For example 1. B.
1. Tesla motors has entered a mature market with their electrical vehicles and has succeeded in a
highly competitive market. This is an example of a _____
_
A. product development strategy
B. concentrated growth strategy
C. cost leadership strategy
D. joint venture strategy
2. The _____
in the Business Model Canvas represent the route to market. In other words, the
pathway that is used to communicate, market, sell and distribute its products or services.
A. strategy
B. elements
C. structure
D. channels
3. Durable Ceramics, Inc., provides inexpensive ceramic tile to builders of institutional buildings such
as schools, prisons, and public administration buildings. It has always competed on a cost
leadership basis. Most of its products are purchased by a few commercial construction firms, so it
is fairly dependent on these construction firms for selling its product. Durable Ceramics' next-most-
efficient competitor, Cost-Less Ceramics, Inc., earns average returns, whereas Durable earns
above-average returns. The commercial construction firms are putting pressure on Durable to
reduce its prices. If Durable reduces its prices below those of Cost-Less's prices, it is likely that
A. both Durable and Cost-Less will devise additional ways to become more efficient in their
production processes.
B. Cost-Lesswill go out of business, and Durable will gain higher power over its customers.
C. Durable will be unable to absorb the lower cost and will go out of business.
D. both Cost-Less and Durable will go out of business, leaving the customers with fewer
alternative sources of low-cost tile.
4. An analysis of the economic segment of the external environment would include all of the
following EXCEPT:
A. interest rates.
B. trade deficits or surpluses.
C. inflation rates.
D. income distribution.
5. Strategic options available for maturing industries are the following:
i. Get rid of slow-selling products.
ii. Trim costs.
iii. Increase sales to current customers.
iv. Introduce innovation in the value chain.
v. Increase selling price of products.
A. i, ii, iii & iv
8. i, iii & v
(. ii, iv & V
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D. Alloftheabove
E. None of the above
6. Effective strategic leaders will base their decisions on ...
i. honesty
ii. trust
iii. integrity
iv. intuition
V. shrewdness
A. i, ii & iii
B. iii, iv& V
C. i, iv & V
D. All of the above
E. None of the above
7. The following are components of a mission statement:
i. Product/service
ii. Market
iii. Technology
iv. Staff competencies
v. Growth
A. i, ii, iii &v
B. ii, iii, iv&v
C. i, iV& V
D. All ofthe above
8. Reporting on the triple bottom line is referred to as ... reporting.
A. sustainability
B. financial
C. honest
D. predictable
9. As part of evaluating the technological environment, an organisation must be aware of
technological changes that might influence its industry in order to avoid which of the following
impacts?
A. Loss of goodwill
B. Loss of profit
C. Obsolescence
D. Loss of market share
E. Technical debt
10. What does AS stand for in the QSPM?
A. Alternative strategy
B. Active score
C. Analysis strategy
D. Attractiveness score
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SECTION B
[60 Marks]
Question 2
Read the case below and answer the questions that follow.
[40 Marks]
Buddy Industries Case Study
Buddy Industries is a Namibian software technology company specialising in customer communication
and experience management. Through its innovative app-based platform, Buddy Industries connects
vendors-such as service providers, small businesses, and individual sellers-with customers. Vendors
use Buddy's platform to list their products and services, and Buddy Industries manages communication
between vendors and their customers. The platform has grown to include several sub-brands, such as
YelloBuddy, TravelBuddy, BusinessBuddy, and ConciergeBuddy, each catering to different types of
vendors and service providers.
Consider this hypothetical scenario: Buddy Industries is launching a new Al-driven customer
communication platform designed to automate interactions between vendors and their customers.
The Al platform will manage inquiries, provide automated responses, and offer real-time solutions,
aiming to make communication more efficient. By offering 24/7 service, the platform has the potential
to improve response times and reduce the need for human consultants, allowing vendors to focus
more on their core business.
However, there are challenges. Buddy Industries has built its reputation on personalised service and
real-time human support, and many vendors rely on these personalised interactions to communicate
effectively with their customers. With the shift to Al, some vendors may feel that they are losing the
personal touch, which could impact customer satisfaction. Vendors might be concerned that the Al
system won't understand the unique needs of their customers, especially in handling more complex
or sensitive inquiries.
At the same time, the introduction of Al presents significant opportunities. By leveraging Al, Buddy
Industries could help vendors improve their efficiency and reach more customers. Namibia's growing
digital market provides the ideal environment for Buddy Industries to expand its services. However,
there are external factors that need to be considered, such as the readiness of some vendors to adapt
to Al-based systems and the potential reluctance of certain customer groups to engage with
automated services.
2.1. Describe two internal factors that could either help or challenge Buddy Industries as it introduces
the Al platform.
(10)
2.2. Describe two external factors in the Namibian market that Buddy Industries must consider
ensuring the success of the Al platform.
(10)
2.3. Describe the key components of Buddy Industries' current business model based on the
information provided.
(10)
2.4. Considering the introduction ofthe new Al-driven customer communication platform, suggest two
ways Buddy Industries could adapt its business model to ensure continued growth and customer
satisfaction.
(10)
Question 3
[25 Marks]
Calculate the SPACEMatrix coordinates for Shoprite Holdings Limited from the information provided
in the table below. Plot the vector and indicate which strategies might be feasible for Shoprite Holdings
Limited.
(25)
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INTERNAL STRATEGIC
EXTERNAL STRATEGIC
POSITION
POSITION
Competitive (CA)
Industry {IS)
(-6 worst, -1 best)
(-1-Jworsr, +6 best)
-1 Product quality
+6 Growth potential
X
·VxJ
-1 Market share
-3 Customer loyalty
+4 Profit potential
+6 Technological know how
<l'.
-3 Product life cycle
+5 Resource utilisation
Financial (FS)
Environmental (ES)
(+l worst. +6 /Jest)
(-6 worst, -1 best)
+4 Return on investment
-5 Technological change
>
·VxJ
+4 Liquidity
+4 Cash flow
-3 Demand variability
-3 Competitive pressure
<l'.
+4 Risk involved in business
-3 Price range of competing products
Question 4
[15 Marks]
4.1. Explain 5 key responsibilities of a strategic leader.
(5)
4.2. Many organisations face difficulties when attempting to implement their chosen strategies. These
difficulties are often linked to a lack of managerial competencies, which are critical for translating
strategic plans into action. Explain five barriers to strategy implementation that can arise due to a
lack of managerial competencies.
(10)
END OF PAPER
100 MARKS
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