- 1 Marks
BMIS – L1 – SA – Q5.2 – Introduction to business strategy
Identifies where a company expresses its purpose.
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(a) With reference to the organizational aims set out above, state what Guardian Group’s corporate objectives should address.
(b) Guardian Group is a divisionalised conglomerate operating across the Zamfrican continent. Discuss the sources of strategic management information that the directors of Guardian Group may use in order to formulate group strategy and explain how such information may be used in strategic decision-making.
(c) Evaluate the performance of the AE division of Guardian Group and make recommendations to the directors about the manner in which divisional appraisal should be carried out.
(d) Discuss the factors that the board of Guardian Group would need to consider in deciding whether or not to acquire another company.
(e) Assuming that the acquisition in (d) above has been made, discuss how the directors of Guardian Group could evaluate whether the AE division is adding value to the enterprise.
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(a)With reference to the organizational aims set out above, state what Apex Shipping Ltd.’s corporate objectives should address. (b) It has been argued that an organization which operates in a turbulent environment should include flexibility as an objective in order that it can be responsive to changing environmental conditions.
Explain how Apex Shipping Ltd could achieve flexibility in its operations and discuss potential areas of stakeholder conflict which may occur in satisfying its organizational objectives. (c) Discuss the change in turnover and profit of the shipping divisions within Apex Shipping Ltd in the last financial year, and state, with reasons, whether you consider the chairman’s statement reflects the divisional results achieved.
(d) With reference to Porter’s five competitive forces model, assess the nature of the cruise and ferry shipping market in which Apex Shipping Ltd is engaged, and discuss what opportunities and threats exist in respect of its market share.
(e)Discuss how monitoring through an audit system can be implemented to ensure that Apex Shipping Ltd.’s environmental policy is being achieved.
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