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Strategic Management Instructor: Amir Wassef 27 February 2013
Instructions to Students
Open Book, Take Home Exam
This exam is an open book exam. You may use any material to answer the test.
Materials might be:
your notes
readings, reference materials or textbooks
equipment like calculators, drafting tools etc.
Questions in the open book test
The questions in the test evaluate yourability to think critically, and yourunderstanding of the subject.
You are not being tested for your ability to memorize and recite, but your ability to find and useinformation, and submit and defend your arguments.
Exam Time
Your answers must be submitted by email within 72 hours from the test date. Any test papers submitted
after the 72 hour period will not be considered.
Hints
Read all the questions carefully
Before you start the exam, read all the questions carefully and understand what it is you are being askedto do. Look for the Clue Words in the questions.
Use the exam time wisely
Answer the 'easy' questions first. Starting with the 'hard' questions (questions you are unsure of) slowsyou down and can leave you with insufficient time to address the others that you can do well in.
Don't use too many quotations
Don't copy/paste from the text or waste time quoting extensively. Use very few quotations if youhave to.
Your own analysis is more important..
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Strategic Management Instructor: Amir Wassef 27 February 2013Be brief and to the point
Answer the question, and be concise, accurate, and thoughtful
In strategy, opinions are usually subjective. Justify your answers and explain why you made a particularchoice.
More is not always better. You will not be graded by quantity!
Cheating
This is not a group task. Any students presenting similar answers or consulting with each other foranswers will eliminate BOTH tests from their results and will be graded with an F.
Answering the Test
This document is a template. Save As SM Take Home Test --March2013.docx
Save the test document (template dot) on your PC.
Answer the questions by writing your answers in this document.
Submit it to ESLSCA by email :[email protected]
AND cc [email protected]
Deadline is 72 hours after test publishing date.
Submit a hard copy of your answers to ESLSCA , Ms. Hala Gheryany within the 72 hours following thetest start time/date.
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Strategic Management Instructor: Amir Wassef 27 February 2013
Take Home Test
Strategic Management Course
Scope of the test:
Mission & Objectives Statements
The External Environment
Industry Environment and Porter 5 Forces
Internal Environment: Resources, Capabilities, and Core Competences
Text and Questions
Question 1: Mission, Vision & Objectives
Star Alliance is a strategic partnership between some airlines in Europe, Africa, the US and Asia.
In 2008, EGYPTAIR joined the Alliance, giving added reach into Africa, particularly into the importanttourist and business areas of Egypt and South Africa. Having the two largest airlines in Africa onboard isgood news for the African economy. South African Airways, joined by EGYPTAIR, provides a strong, well-connected presence for the Alliance, especially when the efforts of nine other Star Alliance carriers areincluded
Star Alliance Mission Statement
Our Mission Statement sums up what the Alliance is all about:to contribute to the long-term profitability of its members beyond their
individual capabilities. That continues to be our raison detre [reason toexist] as we progress through our 12th year.
Egyptair Vision Statement (from Egyptair Annual Report, 2006-2007)
Deliver competitive customer service with true Egyptian spirit
Egyptair Mission
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Strategic Management Instructor: Amir Wassef 27 February 2013Create value for our customers, employees, owners and stakeholders
Using the definitions of Vision, Mission, and Objectives statements, answer the questions listed inWheelen & Hunger Strategy Highlight 1.1 to evaluate each of the 3 statements above.
Write your opinion about each statement separately.
1- Star Alliance Mission Statement
Opinion:
2- Egyptair Vision Statement (from Egyptair Annual Report, 2006-2007)
Opinion:
3- Egyptair Mission
Opinion:
Question 2: The External Environment
When examining the external environment for a particular industry you can select many variables,depending on the industry to which you belong. These external variables will have a strong influence onyour choice of competitive strategies.
Hint: Examine table 4.1 in Wheelen & Hunger Some Important Variables in the Societal Environmentand take into consideration the prevailing conditions in Egypt. (Demographic distributions, income, agedistribution, etc)
Select 2 variables for each of the PESTEL variables (i.e. 2 factors for Political, 2 factors forEconomics, 2 factors for Societal, etc) for the following industries in Egypt, bearing in mind that theeconomy is mostly a factor-based and investment-led economy, and explain why these factors arerelevant for this industry.
1- Automobile dealership selling a wide range of new and used cars (Ex: Tarek Ismail Dealership)
Automobile dealership(New/ used Cars Sales)
Variable Justify Your Choice: Why is it important tothis industry?
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Strategic Management Instructor: Amir Wassef 27 February 2013
Economic
Technological
Political
Sociocultural
Legal
2- A new 4 or 5 stars Hotel to be built in the region of Alexandria Governorate
Luxury Hotel(Ex Sheraton Montazah)
Variable Justify Your Choice: Why is it important tothis industry?
Economic
Technological
Political
Sociocultural
Legal
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Question 3: Industry Environment and Analysis (Porter 5 forces)
Product Differentiation: How can you compete by differentiating your product?
Competitive markets provide customers with a lot of choices. The best way compete is to be different, youcan focus on different differentiating ideas and drive it into peoples minds:
1. design your product with distinctive feature (quality material technological)2. put your price at a level that your target segment is willing to pay for your product
3. be available (location time) through multiple locations, longer hours of operation, or you can use
on line service
4. Offering better customer service, after sales service
5. Concentrate to your competitive advantage to be differentiation than other
Capital Requirements: In an industry dominated by very high capital costs, (ex: semiconductor industry orpetroleum ) discuss how high capital costs affect entry barriers.
Capital costs are the costs acquired on the purchase of land, buildings,construction and equipment to be used in the production of goods or theinterpreting of services, in other words, the total cost needed to bring a projectto a commercially operable status.
High capital cost, we can consider it as one of entry barriers because how theinvestors go about securing funding for the project and how much of a returnmust be generated in order to make the profit .
Exit Barriers: In fragmented industries, (see Porter Definition), are exit barriers high or low? Explain
Threat of Substitutes: Is Coca-Cola a Substitute for Pepsi Cola? Why or Why not?
Bargaining power of Buyers: If your industry is dominated by powerful buyers, explain how they can affect
you:
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Strategic Management Instructor: Amir Wassef 27 February 2013
Question 4: Internal Environment
Internal scanning is used in order to identify critical strengths and weaknesses that will shape how you willuse your resources to gain a competitive advantage over your competitors.
4.1- What does the value chain analysis reveal? How could it be used to uncover your strengths andweaknesses?
4.2- What does the IFAS matrix tell you about your firm?
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