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SPM Ass

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Individual assignment for the course strategic performance management

Instruction
- Answer each question after a thorough reading of
chapter hinted in the brackets.
- Clarity, Coherence and language are highly
valued
- Direct shooting is strictly forbidden
- Any sort of plagiarism is subjected to serious
disciplinary measures
- Use of hypothetical illustration is highly rewarded.
- All questions are mandatory

1. Edward Deming, a famous businessman, once said, “In God we trust. All others
bring data.” What did Deming mean in terms of developing a strategic plan? (Read
chapter one).

2. Compare and contrast vision statements with mission statements in terms of


composition and importance. (Read chapter two).
3. Explain how to conduct an external strategic-management audit (External
environment analysis). Support your answer with hypothetical example. (Read
chapter three).

4. After conducting an internal audit, a firm discovers a total of 100 strengths and 100
weaknesses. What procedures then could be used to determine the most important
of these? Why is it important to reduce the total number of key factors? (Read
chapter four).

5. Dashen brewery is one of the most successful companies in the beer industry of
Ethiopia. It is well known for its strong capital, production capacity and manpower.
Available information about the beer industry in Ethiopia indicates that the
industry is characterized by untapped markets, rapidly becoming global in scope
and channels of distribution are high both in number and quality. The top
management of Dashen brewery is currently looking for an intensive strategy with
the aim of improving their company competitive position in the beer industry. What
intensive strategy do you recommend for the top management of Dashen brewery?
Why? Explain why you are not recommended intensive strategies that you are not
recommended? (Read chapter five).

6. How are the SWOT Matrix, SPACE Matrix, BCG Matrix, IE Matrix, and Grand
Strategy Matrix similar? How are they different? (Read chapter six).

7. Would you recommend a divisional structure by geographic area, product,


customer, or process for a medium-sized bank in your local area? Why? (Read
chapter seven).

8. Given the information in the following table, develop a BCG Matrix and an IE
Matrix: (Read chapter six)

Divisions 1 2 3
Profits $10 $25 $25

sales $100 $50 $100

Relative Market Share 0.2 0.5 0.8

Industry Growth Rate +.20 +.10 -.10

IFE Total Weighted Scores 1.6 3.1 2.1

EFE Total Weighted Scores 2.5 1.8 3.3

9. How does strategic management differ in for-profit and nonprofit organizations?


(Based on overall reading).

10. Allocating resources can be a political and an ad hoc activity in firms that do not use
strategic management. Why is this true? Does adopting strategic management
ensure easy resource allocation? Why? (Based on overall reading).

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