MGT $499/$SPRING $2024$

EXAMS $2$

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THIS IS A CLOSED BOOK EXAM

Answer the CASE STUDY in section A and $2$ other questions from section B

SECTION A: CASE STUDY

D is a manufacturer of specialized electronic tracking equipment used by police forces. The equipment allows the tagging, and tracing, of valuable equipment and also of prisoners. The company, which was started only five years ago, has a virtual monopoly in its own country. However, there are limited opportunities for growth in that country. As in most countries, the police forces in D$$s country are funded by the government. The Board of Directors, which owns the company, wish to see the same level of growth in revenue and profits continue.

The equipment, which has been available for five years, is protected by a number of patents and involves some sophisticated technology both in terms of the manufacturing process and the components which each device contains. Since the equipment is physically robust, there is only a limited replacement market.

The external cases for the tracking equipment are bought in from an outside supplier but most of the other components are manufactured by D in its own factories.

The Board of Directors of D has decided that to pursue a growth strategy it will need to develop an export market and wants, within five years, to develop a presence in all major markets in the world. The Managing Director has said that he expects the company to grow rapidly into a multinational company, operating in a number of countries.

The Board has identified a number of countries as possible areas in which D might operate. The Board of Directors of D recognizes that the political, economic, cultural and legislative environments differ from those which exist in its own country and that this might create problems for performance and control of operations abroad.

Required:

$($a$)$ Evaluate four market entry strategies that D could use to develop a market in one of its identified countries.

$($b$)$ Recommend, with justification, the most appropriate strategy for market entry for D$.$

$($c$)$ Discuss the performance and control issues that D may face if it starts operations in other countries.

SECTION B: Attempt only $2$ questions in this section

$$Strategic planning is a generally straightforward exercise; the strategist$$s real problems are those of effective implementation$.$ Identify the barriers to effective implementation that strategists typically encounter and suggest how, if at all barriers might be reduced.

Discuss the BCG matrix and explain the benefits and limitations of developing a Boston Consulting Group Matrix.

Critically compare and contrast restructuring and reengineering.

What is contingency planning; also describe the seven$-$step process of effective contingency planning in strategy evaluation.

Discuss the three challenges that strategists face today.

Finance and Accounting are essential to strategy implementation. Identify the essentials to implementation. Also, explain how to perform a projected financial statement.