The companyaims at becoming themarket leader in automobiles in East Africa by 2020. KMCLhas embarked on a

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Question:

The companyaims at becoming themarket leader in automobiles in East Africa by 2020. KMCLhas embarked on a strategic planning process that will guide its business actions in the medium-term. Qualitative and quantitative data have been collected to provide a basis of planning in the competitive environment.In order to keep its production costs low, KMCLuses Ugandan suppliers ofiron products and other fabricated materials.In the recent past, the Ugandan iron products have become costly due to a virgin export market especially to South Sudan which is undergoing reconstruction.KMCLhas already produced vehicles that are branded KAIRU series insaloon cars, semi-trailers and buses. The KAIRU series are already selling on East African markets. However, a recent customer satisfaction survey revealed that KAIRU saloon cars and buses were less resilient,especially on dry weather roads. This prompted most customers in the survey to indicate that they preferred reconditioned vehicles to KAIRU series. Given the company's success over the past five years of operation, Kenya and Rwanda are benchmarking Uganda in the automobile industry.The governments of the two countries have provided heavy funding and imported experts from Japan, Europe and Americato train their local engineers in automobile industry.Since someEast African countries have embraced construction of standard gauge railway, it is projected that the future market for trailers and semi trailers shall decline significantly in ten yearsto come.Although East African governments were excited over production of affordable brandy new vehicles in the region, the price has remained higher than the imported used vehicles in the region.In the recent job-satisfactionsurvey conductedby the human resource manager, employees expressed willingness to continue working with KMCLfor theforeseeable future.They cited high task variety, innovation, self-fulfilment, and good quality of work life as reasons for their continued commitment to the company.

Business Policy & Strategy -Paper 151 June, 2018Page 3of 6KMCLinitially developedand supplied 1,000 solar powered city buses of KAIRU brand to all East African City Authorities for in-city transport. The solar-powered vehicles are strictly used for urban transportfor efficient results. The KAIRU saloon cars use petrol and are sold to individuals who want to use brand new vehicles as they can travel long distances. However, a recent study on production costs revealed that the salooncars contributed over 80% of KMCL's profitability compared to buses and semi-trailers. Therefore, there was need to target individual customers to realize more profitsother than institutional customers such as City Authorities. Heavy research has been launched through universities to produce high quality but low cost vehicles in order to counter the imported competition. The above aside, global automobile companies have raised complaints on some technologies in which they allegeunfair competition and copying of theirtechnology in KMCL's engines. KMCLwas reported to be lobbying East African states to ban importation of used vehicles that were manufactured over5 years ago. KMCLhas decided to undertake a clear strategic planning process with the aim of dominating the East African automobile market by 2025anddominating the rest of African automobile market by 2040. The initial 10-yearstrategic plan has just been implemented. The company plansto adopt a low cost strategy, achieve high customer profitability and ensure fair and ethical competition.You are the businessdevelopment manager at KMC.

Required:

Write memo to the BOD of KMCL:

(a)Examining the key contents of a strategic planthat KMCL should take into account.(16marks)

b)Discussing, with the help of Michael Porter's five forces model,the factors thatare currently affecting KMCL's business operations.

(c)examiningthe factors that may lead to KMCL'sfailureto implement a strategic plan.(12marks)(d)examiningthe various types of innovation that should be considered by KMCL inoperationali sing the organization's creativity and initiatives.

Question:

Eshande Producers Ltd (EPL) is a local producer of natural sweet juice made out of bananas. The company started as a small agriculture value addition project with support from Government Operation Wealth Creation Program in 2010.Over the years,EPL has expanded in production and now makes over Shs500millionin sales annually. In order to expand its operations, the company has embarked on drawing a business plan.The business plan shall help in securing a development finance loan from a Development Finance Bank (DFB) to support its expansion plans. As part of pre-requisite of accessingthe finance, EPL is required to drawa comprehensive strategic marketing plan trending consumer behaviour and showing how the juice will be marketed.You are the marketing manager at EPL.

Required:

Write memo to the Managing Director of EPL:

(a)examining the role of marketing in business developmentin the 21stcentury.

(b)Examiningthe relevance of consumer behaviour in preparing a strategic marketing plan.

(c)Discussing the factors that may lead to failure of business plans.

Question:

Stramapro Commercial Bank Group(SCBG) recently acquired Universal Commecial Bank (UCB)that was,until acquisition,government owned commercial bank. The acquisition was part of the recent privatization banking process. However, since the acquisition, the overall corporate cost of business operations has tripled. This was attributed to high fixed costsespecially in wages for over 4,000 employees that were inheritedfrom the government bank. It is reported that the employeesacquired hada laisez faire culturegiventhat they hadmainly been recruited to reduce on youth unemployment.The tall organizational structure has also stifled creativity and innovation. SCBGwould like to carry out an organizational development process aimed at bridging the gap between "what is" and "what ought to be"happeningto achievehigh levels of efficiency and effectiveness of the new SCBG. The new management is set to cause a planned change arising out of the new acquisition through an organizational development process. SCBG hired you as anorganizational development (OD) specialist to apply the action research model in diagnosing the current structures, policies and procedures that are impeding achievement of the synergetic gains expected in the new acquisition. The immediate deliverables expected from the OD specialist are organizational diagnosis and HR interventions aimed at improving cost efficiency of labourin SCBG arising out of the recent acquisition.

Required:

(a)Discuss the roleof the human resource management function in implementation of organisational strategyat SCBG.(12marks)

(b)Using McKinney'sorganisational diagnostic model,examine the factors that should beconsidered incarrying out organizational diagnosisat SCBG.

Question:

Civil Construction Company Ltd(CCCL) is a Ugandan company engaged by Government and private organisations to execute multi-billion civil works in roads and buildings.The company's head office monitors works viasatellite and wages are paid based on results achieved within the set timeframe. These and otherinformation systems now support decision making for most functions including design in civil works, bills of quantities, tracking physical progress, financial systems among other functions. In order for the company to achieve set targets, workers and spouses are provided with devices that enable them to interact online,such as Skypeand whatsappwithout leaving the work sites.

Required:

Write memo to Managing Director of CCCL:

(a)Discussingthe ethical and moral issues of information systemsprevailing in the current information technology and system trends.(13 marks)(b)discussingthe factors that CCCLshould consider for results oriented management to be implemented effectivelyat the company.

Question:

Generoza East Africa Ltd (GEAL) is involved in the manufacture of household utensils out of plastic, clay and steel. GEAL has been operating in Uganda for over ten years.Someof its products are exported mainly to South Sudan.In its strategic plans, GEAL is considering cost-leadership strategy in the present market.As part of the cost saving strategy, GEAL shall reengineer itsoperating processes to ensure efficiency in its value chain. GEAL'smanagement believesthat cost leadership shall help in attaining a competitive advantage over other players through diffusing the competitive forces in the present markets. They are also convinced that itmay support diversification in future.As the finance and administration director, you are positioned to play a key leadership role in advancing the competitiveness of GEAL.

Required:

Write report to the Board of Directors:

(a)With the help of Michel Porter's generic strategies model, critically examininghow the cost leadership strategy can help to diffuse the competitive forces in the current and proposed markets.

(b)Discussing the application of diversification strategyin new markets in East Africa.