Question Tag: Competitive Advantage
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- 20 Marks
MFS – APR 2024 – L4 – Q5 – Benefits of Competitor Analysis in Banking
As Head of Marketing, explain four key benefits a bank derives from understanding competitors' activities to justify resources for competitor analysis.
Question
Key to gaining a sustainable Competitive Advantage over a bank’s competitors is through Competitor Analysis. In your role as the Head of Marketing of your Bank who needs some resources to enable you conduct effective Competitor Analysis, you are to submit a paper to your Chief Executive Officer explaining the four (4) key benefits the bank will derive from understanding the activities of your competitors.
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- 20 Marks
MFS – APR 2024 – L4 – Q5 – Benefits of Competitor Analysis
Explain four key benefits from understanding competitors' activities
Question
Key to gaining a sustainable Competitive Advantage over a bank’s competitors is through Competior Analysis. In your role as the Head of Marketing of your Bank who needs some resources to enable you conduct effective Competior Analysis, you are to submit a paper to your Chief Executive Officer explaining the four (4) key benefits the bank will derive from understanding the activities of your competitors.
(20 marks)
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- 19 Marks
BSIM – April 2024 – L3 – Q8 – Impact of IMS and FinTech, Strategic Alignment with IS
Examine four real-life impacts of IMS and FinTech on financial services, and explain four strategic reasons for aligning bank vision with information systems.
Question
a. Examine four (4) real-life instances illustrating the transformative impact of implementing an Information Management System and FinTech on Financial Service Delivery. (10 marks)
b. State and explain four (4) strategic reasons why a bank’s Executive Management team will have to adopt and align the Bank’s Vision, Mission, Strategic Goals and Objectives with its Information Systems. (10 marks)
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- 20 Marks
BSIM – April 2024 – L3 – Q3 – Reducing Turnaround Time with Information Management Systems
Measures to reduce customer complaint turnaround time using IMS and how information systems can shorten credit appraisal processes for competitive edge.
Question
a. The Manager of the Customer Service Department of a Financial Institution has been tasked to reduce the turnaround time on Customer Complaints and Enquiries. As a Manager, state four (4) practical measures you will implement with the introduction of Information Management System in order to achieve the objective of reducing turnaround time on Customer Complaints and Enquiries. (10 marks)
b. How could an Information System decrease the duration of Credit Appraisal Processes within a Financial Institution? Illustrate with four (4) examples how this could provide the Institution with a Competitive Advantage over its peers. (10 marks)
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- 20 Marks
SCS – Mar 2025 – L3 – Q3 – Competitive advantage, International financial
Analyze AML's employee management using IR Framework and evaluate the appropriateness of its diversification strategy into lithium mining.
Question
a) Akosa Minerals Limited (AML) operates in both local and international mining markets, with operations spread across different regions, including Ghana, Mali and Burkina Faso. AML faces pressures for local adaptiveness, such as meeting the specific needs of employees in diverse communities, and global integration, which requires maintaining consistent HR policies and performance standards across all operations. The IntegrationResponsiveness (IR) Framework helps organisations determine how to balance these competing pressures to achieve strategic objectives.
Required:
i) Explain the Integration-Responsiveness (IR) Framework, and show how AML can manage its employees across various locations by balancing the pressures for local adaptiveness and global integration. (6 marks)
ii) Suggest TWO situations where AML should emphasise local adaptiveness and TWO where it should prioritise global integration. Provide examples to support your response. (4 marks)
b) AML diversified its operations by integrating lithium extraction into its core business. Diversification is appropriate in some situations but not in others.
Required: Explain FIVE reasons why the diversification strategy of AML is appropriate and THREE factors that could make the diversification strategy inappropriate. (10 marks)
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- 30 Marks
CSME – Nov 2023 – L2 – Q1 – Business-Level Strategies
Analyze DITA’s strategy consistency with Porter’s six principles of strategic positioning and classify its strategic position.
Question
Adeoye Oladejo was an exceptionally brilliant student. He graduated from the Department of Wildlife and Ecotourism in the Second-Class Upper Division. He was fortunate to undertake his youth service in Lagos with Dovic International Travel Agency (DITA), which apart from sales of tickets and hotel reservations, is reputed for organizing tours for individuals and groups to different parts of the world. By dint of hard work and impressive results in attracting clients to the travel agency, Adeoye was made a sales manager immediately after completing his service year. He held this position for two years, after which he was made a senior operations manager, a position he held before becoming the CEO.
The motto of the company is “service optimized,” and the company is very clear about its primary strategic goal, which is to optimize profit in the short, medium, and long terms. Hence, Adeoye, as the company CEO, undertook a specialized MBA course in International Business Management. He also wrote a book titled Optimizing Profit in International Tourism. In addition, he employed a business manager and an operations manager with very strong backgrounds in financial planning and strategic thinking, apart from the vast experience they acquired in the field of international tourism.
To ensure that DITA remains highly competitive in the global tourism arena, the company has different tourism packages for its clients from all parts of the world. These include cheap airfares, highly-rated hotels at unbelievably low prices, amazing tourist attractions, and the inclusion of rated artists (musicians, comedians, etc.) for the pleasure of their clients. What is quite significant is the fact that DITA has been able to establish excellent working relationships with airlines, hotels, and various service providers in the tourism industry, enabling it to provide world-class services at unbelievably cheap rates that its competitors find difficult to match.
Of course, the services that DITA offers are similar to those of its competitors in the tourism industry, but DITA has been able to introduce special flavors into its packages that render them more attractive than those of its competitors. These include free massages, horse riding, scuba diving, exquisite dinners, welcome parties, limousine airport shuttles, and much more.
However, DITA’s business strategies have trade-offs, which in the short, medium, and long terms offer it some competitive advantage. For instance, it does not offer services to large groups of people exceeding 50 at a time. Thus, it does not offer pilgrimage services. Nonetheless, DITA has become very popular among rated organizations, family groups, groups of friends, and other relatively small teams interested in organized tours to special places worldwide. Another trade-off of DITA’s strategies is that it does not sell travel tickets to individuals, only to groups.
Over two years, the CEO of DITA, in conjunction with the business and operations managers, has successfully established a synergy of all the elements of their business, making them intricately and seamlessly linked together, resulting in great success and a high return on investment for DITA.
To ensure continuity of its strategic direction, DITA organizes periodic training retreats for its staff and sends them on specialized training to enhance their productivity and commitment to the vision, strategic goals, and core values of the company. By doing so, it is systematically creating an impressive organizational culture that is key to its success. Overall, DITA has become a huge success story and a remarkable leader in the international tourism industry.
Required:
a. Discuss how the operations of DITA are consistent with Porter’s six principles of strategic positioning and how individual firms can achieve sustainable competitive advantage. (24 Marks)
b. A business entity can be classified as any one of the FOUR types in terms of strategic position.
i. Identify and briefly explain each of these types. (3 Marks)
ii. To which of these does DITA belong? (3 Marks)
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- 15 Marks
FM – Nov 2022 – L3 – Q5 – Business Valuation Techniques
Calculate the equity value of APL using SVA and outline three methods for funding the MBO.
Question
Aderupoko Plc (ADP), a large listed media group, has been the holding company of Adamu Publishers Limited (APL) since 2015. The publishing company (APL) is 100% owned by ADP since inception.
Recently, the directors of APL informed ADP’s board of their readiness to make a management buy-out (MBO) of APL. Accordingly, ADP’s board decided to value APL using the shareholder value analysis method (SVA). ADP’s board estimates that APL has a four-year competitive advantage over its competitors (to 30 September 2024) and the following data regarding APL’s value drivers and additional financial information has been collected:
| Year to 30 September | 2021 | 2022 | 2023 | 2024 | 2025+ |
|---|---|---|---|---|---|
| Sales growth (%) | 5% | 4% | 3% | 2% | 0% |
| Operating profit margin | 8% | 9% | 10% | 10% | 10% |
| Incremental non-current asset investment (% of sales increase) | 5% | 6% | 3% | 2% | 0% |
| Incremental working capital investment (% of sales increase) | 6% | 5% | 4% | 4% | 0% |
Financial Information:
- Sales for the current year to 30 September 2020: ₦80 million
- Annual depreciation (equal to annual replacement of non-current asset expenditure): ₦2.0 million
- Par value of 6% debentures in issue (current market value ₦95.00, nominal value ₦100): ₦10.0 million
- Short-term investments held: ₦0.8 million
- Company tax rate: 20%
- Current WACC: 10%
Required:
a. Calculate the value of APL’s equity using SVA.
(12 Marks)
b. Outline three methods by which APL’s directors might raise the funds necessary for the proposed MBO of the company. (3 Marks)
(Total 15 Marks)
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- Tags: Competitive Advantage, Equity, Funding Methods, MBO, SVA, Valuation
- Level: Level 3
- Topic: Business Valuation Techniques
- Series: NOV 2022
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- 15 Marks
MGE – Nov 2014 – L2 – Q5 – Innovation and Strategic Renewal
Developing strategies for recruiting and retaining innovative staff to sustain competitive advantage.
Question
Hi-Tech Industries Limited is a leading manufacturer of computers and mobile phones in the country. The company is considering the implementation of low-cost, differentiation, and innovation strategies aimed at sustaining and improving its competitive position. Hi-Tech plans to make its flagship product, Zeta Phone, the mobile phone of choice, offering innovative and cutting-edge technology to its consumers.
For the company to transform into an innovative organization as the business strategy requires, it must employ staff workgroups with highly skilled, innovative, and energetic people who can bring life to new ideas quickly and inject the same into the organization.
A skills audit recently conducted by the company showed that the company does not have enough staff that possess those qualities. To address this deficit, the management decided to train existing staff, employ, and retain the best candidates that the labor market can offer.
Required:
Formulate strategies that Hi-Tech Industries may adopt in its policy for employment and retention of human resources.
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- 30 Marks
CSME – May 2023 – L1 – SA – Q1 – Strategic Implementation
Strategies for market expansion, sustainable advantage, and industry environment for a medium-scale food processing firm.
Question
Oyinbo Industries Limited is a medium-scale enterprise involved in the processing and packaging of local (traditional) food items for the Nigerian market. Its product portfolio includes Instant Elubo Powder, Instant Pounded Yam Powder, and Instant Beans Powder, all of which have been successful in the Nigerian market. The company hopes to expand its market coverage to the United States, United Kingdom, France, Canada, and the United Arab Emirates, which are believed to be viable new markets for the products.
To achieve these goals, the company plans to strengthen its position in the Nigerian market, focusing on increasing market share, sales growth, and profitability. Recently, it expanded its product range by introducing Instant Plantain Powder, Instant Soya Beans Powder, and Garri Ijebu. The table below shows current market and sales growth for each product:
*Products introduced into the market in 2021
The company’s current market growth rate for each product is over 10%, largely due to population growth and concerns about food hygiene in open markets. Oyinbo Industries seeks to leverage this opportunity to become a leader in processed and packaged foods in Nigeria.
However, competitors are mainly cottage industries and small-scale producers who, despite limited resources, control substantial market share. These firms primarily depend on small rural farmers for raw materials, which are abundant but lack regulation.
As part of its growth plan, Oyinbo Industries intends to secure a raw material supply by acquiring farmland in Kwara State. It also aims to collaborate with a local fabricator for its processing equipment. In the next phase, the firm plans to leverage its distribution network and internal capabilities to expand market share in Nigeria and increase sales of new products. However, challenges such as frequent power outages and equipment breakdowns remain.
Required:
- (a) Advise on strategies for each product that align with the company’s strategic direction using Ansoff Growth Vector Analysis. (13 Marks)
- (b) Explain how to achieve sustainable competitive advantage using Michael Porter’s Six Principles. (6 Marks)
- (c) Describe key business environment elements using the PESTEL framework. (6 Marks)
- (d) Identify the type of integration strategy being pursued and discuss potential drawbacks. (5 Marks)
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- 10 Marks
SCS – Nov 2021 – L3 – Q2 – Environment Analysis
Analyze and present factors negatively impacting the strategic position of COM from both external and internal perspectives.
Question
The board members discussed the future of the BRIGHT strategy of the company in the context that the strategic position of the company continues to evolve at a rather unpredictable rate. The board is interested in gaining a thorough insight into the factors that will pose material downside and upside risk to the strategic position of the company. The chairman of the board would like to discuss the draft memorandum of the company’s strategic position with the CEO prior to the next plenary board meeting.
Required:
Prepare a draft presentation explaining to the Board Chairman the current factors that are negatively impacting the strategic position of the company from the general external environment and internal perspectives.
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- 10 Marks
SCS – Dec 2022 – L3 – Q6a – Internal analysis
Draw Shell Directional Policy Matrix and recommend strategies for TCWL products based on their performance.
Question
The Consultant undertook analysis of the performance of TCWL products using Shell Directional Policy Matrix. The management of the company is interested in receiving a report that contains the matrix and the strategies to be adopted for each product.
Required:
i) Draw Shell Directional Policy Matrix and clearly locate each product in an appropriate quadrant/cell in the matrix based on the product’s performance. (2 marks)
ii) Recommend and explain the appropriate strategy or strategies that TCWL should adopt for each product as suggested by Shell Directional Policy Matrix. (8 marks)
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- 10 Marks
SCS – Dec 2022 – L3 – Q2 – Competitive forces
Using Porter’s Diamond model to evaluate the factors influencing the competitiveness of TCWL in Ghana.
Question
The competitiveness of a business operating in a country is determined by the presence of a combination of some factors and conditions. The management of TCWL wants to understand the factors in Ghana that have influenced its success or otherwise over the years and which should be considered as it expands to Kenya and South Africa.
Required:
Using Porter’s model for determining national competitive advantage (Porter’s Diamond), evaluate FOUR (4) factors that have influenced the competitiveness of TCWL in Ghana for which the management must consider as it expands its operations internationally. (10 marks)
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- 10 Marks
SCS – Apr 2022 – L3 – Q3 – Competitive advantage
Analyse how HPC can achieve competitive advantage using Porter’s six principles when expanding to Nigeria and Togo.
Question
Consistent with its strategic ambition to expand its business into other countries, HPC is considering expanding to Nigeria and Togo.
Required:
Using Porter’s six principles of strategic positioning, analyse how HPC can achieve sustainable competitive advantage if it decides to expand the business to Nigeria and Togo. (10 marks)
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- 10 Marks
SCS – Nov 2023 – L3 – Q1b – Competitive advantage
Application of Johnson and Scholes’ six-step approach to achieve competitive advantage in the Shito industry.
Question
Mr. Martinson highlights the company’s CSFs to include lasting customer satisfaction, consistent taste, unrivaled quality, operational efficiency, and compliance with regulatory requirements. These are very essential considering the highly competitive environment within which NSL operates.
Required:
Using Johnson and Scholes’ six-step approach to using CSFs, explain the six-step approach NSL could employ to effectively achieve competitive advantage in the Shito industry.
(10 marks)
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- Tags: Business Strategy, Competitive Advantage, CSFs
- Level: Level 3
- Topic: Competitive Advantage
- Series: NOV 2023
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- 10 Marks
BMF – May 2017 – L1 – SB – Q1a – Business and Organizational Structures and Choices
Discusses how strategic alliances and joint ventures can be used to gain competitive advantage, and briefly explains restricting competition and cartel concepts.
Question
In order to survive and achieve a competitive advantage, companies may need to enter into collaboration with stakeholders.
Required:
Using Strategic Alliances and Joint Ventures, explain how collaboration can be used in business to achieve competitive advantage.
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- 10 Marks
CSEG – Nov 2015 – L2 – Q3a – Internal control and audit
Explain the composition and functions of an Audit Committee in corporate governance.
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- 20 Marks
CSEG – May 2019 – L2 – Q3 – Strategic alternatives, analysis and selection
Analysis of competitive advantage bases and factors influencing industry rivalry, with application of Porter’s Five Forces model to the mobile money industry.
Question
a) Asawasi Company, a relatively new company, is in the business of designing and building farm equipment and machinery. Whilst it has been successful in its first few years of operation, sales are now in decline as competition in the industry has intensified and there is greater rivalry between the competing organisations.
A review undertaken by consultants has recommended that in order to gain sustained competitive advantage, the company needs to establish the basis on which it can compete more effectively against its rivals in the future.
Required:
i) Describe the concept of competitive advantage and include references to the different bases Asawasi Company could use to achieve competitive advantage.
(5 marks)
ii) Describe the factors that can create competitive rivalry between organisations.
(5 marks)
b) An introduction of a new technology is an introduction of a new business. This is a statement of fact and evidence abounds in many African economies. The introduction of mobile phones came with space-to-space business and eventually gave rise to mobile money services.
Required:
Using Porter’s Five Forces model, identify the competitive forces that influence the state of competition in the mobile money industry and the profit potential of the industry as a whole.
(10 marks)
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- 10 Marks
CSEG – May 2017 – L2 – Q3a – Strategic alternatives, analysis and selection
Discuss the impact of strategic alliances on companies and how they contribute to competitive advantage.
Question
Strategic alliances have become an important part of the corporate world, with companies joining forces for various strategic reasons. A well-formed alliance can provide a competitive advantage to the companies involved.
Required:
a) Explain FIVE ways in which strategic alliances can impact companies.
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- Tags: Competitive Advantage, Strategic Alliances, Strategic Management
- Level: Level 2
- Topic: Strategic alternatives, analysis and selection
- Series: MAY 2017
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- 10 Marks
BMIS – Dec 2023 – L1 – Q5b – Finance, R&D and marketing strategies
Explains five elements of the 7 Ps of the marketing mix that businesses can use to gain competitive advantage.
Question
Marketing experts have suggested that businesses, particularly service organizations that desire to have efficient and effective performance and gain competitive advantage, should adopt and apply all the 7 Ps of the marketing mix.
Required:
Explain FIVE (5) of these Ps.
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- Tags: 7 Ps, Competitive Advantage, Marketing Mix, Service Marketing
- Level: Level 1
- Topic: Finance, R&D and marketing strategies
- Series: DEC 2023
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