Differentiate between business level strategy and functional level strategy. (4)

Explain the strategic paradox of Profitability versus sustainability.(5)

Discuss the strategic Competitive Intelligence (CI) cycle. (10)

(Marks: 20) Question 4 Nedbank Profile: "Nedbank offers a wide range of wholesale and retail banking services, together with a growing insurance, asset management and wealth management offering. These solutions are offered through their frontline clusters Nedbank Corporate and Investment Banking, Nedbank Retail and Business Banking, Nedbank Wealth and the Rest of Africa, Update on Nedbank Group's performance for the three months to 31 March 2017: Nedbank continued to produce a solid performance for the first three months of 2017. In a difficult socio political and macro-economic environment, overall client activity and revenue growth was slower than expected, but this was partially offset by a better than expected credit loss experience. Net interest income grew at mid-single digit levels on the back of annualised growth in average interest-earning banking assets (AIEBA) at low single-digit levels. Legislative and Regulatory information: Nedbank's progressive transformation initiatives have ensured that the group maintained its externally verified level 2 broad-based black economic empowerment (BBBEE) rating for eight consecutive years. Nedbank Group is regulated by various entities, such as the South African Reserve Bank, Financial Services Board, National Credit Regulator, Johannesburg Stock Exchange, Financial Intelligence Centre, South African Revenue Service, National Treasury and Department of Labour The Nedbank Foundation: Nedbank's primary CSI arm, the Nedbank Foundation, focuses on long- term contributions to education skills development and job creation, health and community development. R30,3m in 91 projects, The Nedbank Eyethu Community Trust Through the Nedbank Foundation: The Nedbank Eyethu ujCommunity Trust funds students attending institutions of higher learning and research. R18,9m. The Nedbank Private Wealth Foundation: The foundation focuses particularly on youth between 15 and 25 years old through accredited skills-based learnerships, entrepreneurial skills training and identified programmes with a strong focus on obtaining fulltime employment. R8,8m for 23 organisations The Nedbank External Bursary Fund: The fund provides a number of external bursaries through the Nedbank Education Trust. R11m to 104 students. The Nedbank Affinities Programme: The programme donates to causes and organisations on our clients' behalf, at no cost to them, whenever they use their Nedbank Affinity-linked products. R39,3m across the four affinities. Alignment with industry best practice: Nedbank's sustainable risk management approach is informed by, among others, the following industry best practices: . The Equator Principles The United Nations Global Compact (UNGC). The UNGC's CEO Water Mandate. The Code for Responsible Investing in South Africa (CRISA). The Principles for Responsible Investment (through our parent company, Old Mutual plc). The United Nations Sustainable Development Goals (SDG)