MAC2602 EXAM PACK 2023

Exam pack consists of: * Study notes *Exam papers+Solutions(October 2013) (May 2014) (October 2014) (May 2015) (October 2015) (May 2016) (October 2016) *Assignments(2016 semester 2 ass 1 +2 Questions and Solutions) (2017 Semester 1 ass 1+2 Questions and Solutions) (2017 Semester 2 ass 1+2 Questions and Solutions) S - The study-notes marketplace Downloaded by: Zureida12 | Distribution of this document is illegal S - The study-notes marketplace Study Guide One Part 1 : Strategy and strategic planning Topic 1 : Development of the organisation’s strategy Study Unit 1 : Defining concepts – mission,core values,vision,strategy and strategic objectives  Mission - core purpose Effective mission statement :  Inspire change ,but does not change  Long-term in nature  Easy to understand and easy to communicate  Core values - principles that guide the organisation  Vision - defines direction for the future  Strategy – choosing long-term strategies to achieve purpose set out in mission statement Three generally accepted competitive strategies :  Cost leadership strategy  Pricing strategy :  Price skimming  Selective pricing  Market pricing  Predatory (penetration) pricing  Differentiation Elements of strategy :  Choice of activities which provide a competitive advantage  Trade-offs made to choose specific actions  Activities chosen must fit one another  Major structural changes can change strategies,however cannot be constantly reinvented  Formulation should display a broad conceptual knowledge of the operating environment of the organisation  Core values are taken into account  Strategic objectives – measures to progress and targets to achieve in a specific time frame Characteristics :  Precise formulation of goals to be achieved  Contains a measure of progress  Contains a target to be achieved  Contains a time frame for target to be achieved SMART criteria :  Specific  Measurable  Attainable  Relevant  Time-bound Downloaded by: Zureida12 | Distribution of this document is illegal S - The study-notes marketplace Study Unit 2 : Key stakeholders : roles,conflict and influences  Stakeholders – those persons and organisations that are affected by the organisation's activities and who have an interest in the strategy of the organisation.  Classification of stakeholders :  Primary Stakeholders (have a contractual relationship)  Internal Stakeholders o Managers o Employees  Connected Stakeholders o Shareholders/owners o Banks and lenders o Suppliers o Customers  Secondary Stakeholders (do not have a contractual relationship)  External Stakeholders o Government o Local authorities o Professional bodies o Pressure groups o Community at large  Possible conflicts between the expectations of the different types of stakeholders - shareholders/owners expect a specific return on their investment whilst employees expect security of their jobs and job satisfaction.  Influence of different stakeholders on development of organisation strategy :  Dependency  Degrees of power  Level of interest Downloaded by: Zureida12 | Distribution of this document is illegal S - The study-notes marketplace Study Unit 3 : Factors that influence the development of an organisation’s strategy  Influence of Factors in the external environment :  Political (including legal) environment  Economic environment  Social environment (sustainability and ethics)  Technological environment  Competitive Environment (operating) :  Customer position Purpose of a competitor analysis : o Study the market,trends and patterns o Predict and forecast an organisation’s demand and supply o Formulate a strategy o Increase the market share o Develop a strategy for organisation growth o Plan for diversification and expansion o Study forthcoming trends in the industry  Customer base  Suppliers  Creditors  Labour market  Influence of factors in the internal environment :  Corporate culture (shared beliefs,values and symbols)  Organisation leadership (executives and managers)  Human resource policies (formal decisions)  Industrial relations (Labour relations)  Controls at organisation level (such as code of conduct) Downloaded by: Zureida12 | Distribution of this document is illegal S - The study-notes marketplace Study Unit 4 : Strategic planning processes and approaches  Strategic planning - defines the organisation’s strategy,and makes decisions on allocation of resources (capital and people) to follow this strategy.  Goals and outcomes of strategic planning :  Goal congruency  Goal hierarchy  Goal sequencing  Typical three-step approach to strategic planning :  Step 1 - Situation (SEE) – determine and evaluate the current situation  Step 2 - Target (THINK) – define goals  Step 3 - Proposal/Path (DRAW) – map a plan to achieve the goals  Strategic planning process includes :  Strategic objectives must be set  Resources to be used stipulated  Policies that govern acquisition and use of resources must be decided  Analytical Models used for strategic planning :  SWOT Analysis  Porter’s Five Forces Model  SWOT analysis :  Internal factors : (page 31) o Strengths o Weaknesses  External factors : (page 32) o Opportunities o Threats  Benefits from using SWOT analysis for strategic planning are :  Identification of core competencies  Correcting internal