MAF661- STRATEGIC MANAGEMENT

FINAL ASSESSMENT
SET 1
DATE: 8 FEBRUARY 2021 (MONDAY)
Name: FARAH NADIAH KAMARUDDIN
Student no: 2014110205

Question 1:

a. HOSB uses the Differentation Business Level strategy

The competitive advantage for the business is the unique taste and flavor of the organic
food produced by HOSB and the value perceived by the customers. The uniqueness of
other competitor is selling more various food and product health with cheap prices.

The strategic target is broad target market to meet the need of the high income and
customer hunter health conscious. HOSB should also cater to several local and
international food health hunter.

b. 3 potential pitfalls
1. Uniqueness that is not valuable
A differentiation strategy must provide uniqueness in term of product features that
customer value hihly. It is not enough just to be different. For instance, the Centre
Hill Mall has provided options to having more stores selling affordable health food,
organically grown food products and health supplement. Thus, despite Centre Hill
Centre being more choice of customer to choose, it may not be perceived as
valuable by customer.

2. Differentiation that easily imitated

HOSB through Centre Hill Mall may attain differentiation strategy that is successful
for a time. However, competitors can erode the advantage through imitation. For
instance, the unique features of the food health are easily imitated by rivals. Thus,
the product becomes no longer unique to the customers

3. Perceptions of differentiation may vary between buyer and sellers

HOSB must realize that although it may perceive Centre Hill Mall as differentiated,
their customers may view them as commodities. This is due to the fact that many
product and services in the current marketplace have been reduced to commodities.
Thus HOSB may include all outstanding features deemed unique into its competitor
product and lose margin altogether if has to lower prices to reflect market realities.
MAF661- STRATEGIC MANAGEMENT
FINAL ASSESSMENT
SET 1
DATE: 8 FEBRUARY 2021 (MONDAY)
c. Turnover strategies to ensure business remain competitive
1. Piecemeal productivity improvements. There are many ways in which a firm can
eliminate costs and improve productivity. Although individually these are small
gains, they cumulate over a period of time to substantial gains. Improving business
processes by reengineering them, benchmarking specific activities against industry
leaders, encouraging employee input to identify excess costs, increasing capacity
utilization, and improving employee productivity lead to a significant overall gain.

2. Asset and cost surgery. Very often, mature firms tend to have assets that do not
produce any returns. These include real estate, buildings, etc. Outright sales or sale
and lease back free up considerable cash and improve returns. Investment in new
plants and equipment can be deferred. Firms in turnaround situations try to
aggressively cut administrative expenses and inventories and speed up collection of
receivables. Costs also can be reduced by outsourcing production of various inputs
for which market prices may be cheaper than in-house production costs

3. Selective product and market pruning. Most mature or declining firms have many
product lines that are losing money or are only marginally profitable. One strategy is
to discontinue such product lines and focus all resources on a few core profitable
areas.Process and product improvement - Besides people and strategy, another
thing that you need to focus upon is the re-innovation of the products and the
business operations. Without regular upgradation and innovation of products and
services, customers soon tend to lose interest, and this could be the reason for your
downfall. Make sure offering consumers something that they cannot find anywhere
else. Regular changes in the products according to the demands of the market and
MAF661- STRATEGIC MANAGEMENT
FINAL ASSESSMENT
SET 1
DATE: 8 FEBRUARY 2021 (MONDAY)
Name: Farah Nadiah Kamaruddin
Student no: 2014110205

Question 2:

a. Potential problem of acquisition WDSB

1. it can create internal fallout - When an acquisition strategy is implemented, some
employees may feel like their job security has been threatened. The strategy may
include areas of diversification that are difficult to bring together as well. It may require
some managers to be responsible for duties, services, or products of which they are
completely unfamiliar. When this occurs, high levels of internal fallout may occur. This
process can turn a healthy organization into an unhealthy one very quickly.
2. It may come to high cost - When an acquisition strategy doesn’t go as planned, the costs
of it can climb quickly and steeply. Those costs may exceed all initial projections. There
may not be enough value in the acquisition to justify it, yet the process may be too far
along to stop it as well.

b. Good idea for MFP to employ acquisition strategy

1. It allows for an evolving business model. -With an acquisition strategy in place, firms
are able to transition from their current business model to a new one that may have
more lucrative revenues waiting for them. It is much cheaper to acquire a new model
than to develop one internally

2. it saves time. - An acquisition strategy helps develop internal resources very quickly
because those resources are directly purchased. It’s like being hungry and wanting a
hamburger. If you go to the local diner, you can have one ready in a few minutes and
do zero work to have a meal. At home, you’ll have to do all the work, pay a similar cost
for the ingredients, and create a value for your time involvement. It’s easier to order
the burger from someone else.

3. It reduces training costs. - An acquisition strategy is able to reduce internal training

costs because you’re bringing in resources that you’ve acquired. These resources are
already fully developed. You can then use those resources to train others within the
organization to diversify the internal skill set of everyone. At the same time, you’re
bringing in the customers, contacts, or prospects that the experienced individuals,
businesses, or brands have already developed.
MAF661- STRATEGIC MANAGEMENT
FINAL ASSESSMENT
SET 1
DATE: 8 FEBRUARY 2021 (MONDAY)

c. Attributes of effective acquisition that MFP should consider before making the
acquisition strategy.
1. Get to know team management of WDSB - to get to know better the management of
the target who will eventually be part of the acquisition, and deliver on the promises
presented. MFP also need to assess the team that you will work with before
acquiring a business. Managing the people in the targeted company should be high
on to-do list. Recognize the talents need to retain who are crucial to the business,
and who be bringing in to run and lead the newly acquired business. Understanding
soft skills is crucial to a successful M&A.

2. Proper Integration plan – MFP have to work on an integration plan before the
acquisition. Ensure that have a dedicated team for the integration after acquisition,
or that management is aware that a reasonable part of its time might be allocated to
integration. A proper integration plan also defines clearly some short- and mid-term
objectives to deliver. Seek external help as certain third party providers are experts
in this field. The vast majority of acquisitions fail because of a lack of focus on
integration

3. Focus on human capital - Human capital is the most precious asset in most
transactions. Never underestimate the impact on the employees of both entities,
especially the target. During your pre-acquisition work, MFP need to focus on the
immediate and follow up messaging to employees, convey a message as clear as
possible, and ensure they are the first ones to know about the acquisition, before
clients and the press.
MAF661- STRATEGIC MANAGEMENT
FINAL ASSESSMENT
SET 1
DATE: 8 FEBRUARY 2021 (MONDAY)

Name: Farah Nadiah Kamaruddin

Student no: 2014110205

Question 3:

a. The importance having a right organizational structure

First, an organizational structure is a system for accomplishing and connecting the activities
that occur within a work organization. People rely on structures to know what work they should
do, how their work supports or relies on other employees, and how these work activities fulfil
the purpose of the organization itself.

Second, organizational design is the process of setting up organizational structures to address

the needs of an organization and account for the complexity involved in accomplishing business
objectives.

Next, organizational change refers to the constant shifts that occur within an organizational
system for example, as people enter or leave the organization, market conditions shift, supply
sources change, or adaptations are introduced in the processes for accomplishing work.
Through managed change, leaders in an organization can intentionally shape how these shifts
occur over time.

b. Drawback of the simple organizational

1. expanding the employees job scope or increasing the employees hired is became
uncontrolled and to be managed

2. Risky - everything depends on one person. bureaucracy. Highly routine operating

tasks. If an owner is sick, in a meeting or on a business trip, the entire company can
become paralyzed, because no one can move forward to take advantage of an
opportunity or to solve a problem until the owner is available again.
MAF661- STRATEGIC MANAGEMENT
FINAL ASSESSMENT
SET 1
DATE: 8 FEBRUARY 2021 (MONDAY)

c. Reason to change organizational structure

1. The most appropriate types of structure depends on nature and magnitude growth of
the firm. As APE has been constantly expanding its product lines. The simple
organizational is no longer suitable ti the APE expansion strategy. Such growth places
additional pressure for the firm to control data and information of customer. The simple
structure cannot cope with voluminous data. Thus, instead creating coordination and
control problem.
2. The functional structure enabling owner to monitor the performance each unit as a
profit centre. The corporate headquarters have responsibility to design the overall
strategic framework and manage at each structure organizational for their services in
company. Thus, it will enable the owner to track impact of the profitability for each
business unit.
3. The functional structure will give greater decentralization of authority to each unit of
business APE to react more quickly in decision making. It also make it easier to manager
of each unit control their own unit since they have direct access to each of them.
MAF661- STRATEGIC MANAGEMENT
FINAL ASSESSMENT
SET 1
DATE: 8 FEBRUARY 2021 (MONDAY)

Name: Farah Nadiah Kamaruddin

Student no: 2014110205

Question 4:

Question a

There are two types of rewards is tangible and intangible. Tangible rewards are money,
vacations, and material objects.

The best way to use money as a reward is to give a specific amount as a bonus directly related
to the performance of a task or the achievement of a goal. Some companies make the mistake
of giving a person a permanent pay increase for achieving a specific performance target, but
then they are locked into that higher level of pay whether or not the employee ever repeats
that performance. Specific, discrete bonuses are usually better.

Intangible rewards can be things such as prizes, plaques, and awards given at annual
celebrations for exceptional performance.

Question b
innovation dilemmas faced by Khairil that may slow down TCSB’s performance in competing
with rival companies is pursuing innovation is challenging for businesses that are affected by
environmental uncertainty which may cause dilemmas in decision making

to be the leader in innovation by helping clients and the community to reap benefits in their
undertakings besides creating new markets in the era of Malaysian industry 4.0 transformation.
In order to encourage employees’ creativity, an effective reward and incentive system has been
implemented by TCSB top management team as a mechanism to promote innovative culture
among the employees
MAF661- STRATEGIC MANAGEMENT
FINAL ASSESSMENT
SET 1
DATE: 8 FEBRUARY 2021 (MONDAY)
question c
1. Link to strategy and the goals of the firm – an effective performance measurement
starts with the goal, objectives or outcomes to be achieved. A good performance
measure embodies a strategic objective. It is designed to help the organization monitor
whether it is on track to achieve goals.
2. Simplicity – performance measures must be understanble. Employees must know what
is being measured, how incentives work and what they do to affect the outcome.
Complex KPI that consist ratio or multiple calculation are difficult to understand and not
clearly action.
3. Actinable – performance should be measure by actionable. If a measure trend
downward employees should know what correctives action to tke improve performance