Question 1
(a) Set up the 2×2 matrix strategic planning tool that provides a framework to help
executives, senior managers, and marketers devise strategies for future growth.
(8 marks)
(b) State with supporting reasons, the type of generic strategy adopted by the
following companies.
(i) McDonald’s is known for yielding low margins that can make
competition with other restaurants in the industry difficult. However,
McDonald’s has been extremely successful with the strategy they have
adopted by offering basic fast food meals at low prices. They can keep
prices low through a division of labour that allows it to hire and train
inexperienced employees rather than trained cooks. It also relies on a few
managers who generally earn higher wages. These staff savings allow the
company to offer its food at bargain prices.
(3 marks)
(ii) Build-A-Bear workshop offers customers an enjoyable interactive process
of designing and assembling teddy bears. Its customers are prepared to
pay a premium price because they receive a unique and hands-on
experience rather than simply buying a stuffed toy off-the-shelf in a
shopping mall.
(3 marks)
(c) Consider Marks & Spencer from the United Kingdom and Primark from Europe,
which have successful balanced supply and demand strategies. What framework
have these companies formulated to achieve a well-balanced and successful
supply and demand management?
(11 marks)
Question 2
(a) A novel keyboard was recently launched in the market. It is very different from
the conventional QWERTY keyboard. This new keyboard requires lesser finger
motion and produces fewer errors compared to the standard QWERTY keyboard.
However, the placement of alphabets in the new keyboard is totally different from
the QWERTY keyboard. Debate if this new product will be a success. Support
your answer with reasons.
(8 marks)
(b) Demonstrate briefly the rate of major innovation in products and services that
follows a three-phase pattern over time.
(9 marks)
SST301e Copyright © 2017 Singapore University of Social Sciences (SUSS) Page 3 of 4
Examination – July Semester 2017
(c) Read the abstract below and answer the questions that follow.
At a time when many things Americans consumed were “supersized”, Internet
access in the United States was decidedly sparing. Instead of using always-onbroadband to gulp down Internet access, most Americans sipped the Web through
slow dial-up connections. For the unfortunates using dial-up, the World Wide
Web became the “World Wide Wait” as it took several minutes for a graphic-rich
and therefore bit-intensive webpage to download at those speeds. The reasons for
the slower-than-expected adoption of broadband in the United States varied
according to the viewpoint. Slowly the penetration of broadband improved.
However, for all of the promise of new broadband delivery technologies such as
Wi-Fi, WiMax, and BPL, for the near future, it seemed that most Americans who
purchased broadband access would use cable or DSL.
(i) What strategic tool can be used to illustrate the growth in the technology
described in the abstract? Relate the growth of Internet in terms of this
strategic tool.
(6 marks)
(ii) What do you think can be done once the technology reaches a certain level
of development and starts to stagnate? Suggest a method to overcome this
problem.
(2 marks)
Question 3
Read the abstract below and answer the questions that follow.
Started as a joint U.S.-Japanese enterprise, NEC was established in 1899 as a telephone
manufacturer, financed by the Western Electric Company. Not only until after the Second
World War did NEC become a consumer-oriented firm, when Koji Kobayashi, then
managing director, initiated a plan to establish radio wireless communications as the
company’s new core business. In 1967, NEC established an electronics parts division as
a new key business because it realised that electronics devices would enable
communication devices and computers to be linked. To take advantage of economies of
scale, NEC sought a worldwide market, expanding its semiconductor business through
the 1970s and 1980s. Concentrating on computers and communications (C&C) became
NEC’s corporate goal. At that time, the head of the device development division also
stressed on R&D as he stated that “We should select some technologies which are
common to our business divisions as the key technologies of our company”. As more and
more advanced knowledge emerged around the world, companies from many countries
established strategic sites in foreign countries in order to access new information as well
as markets. They also had to move new products from development to market very
quickly. In 1984, the senior managing director of NEC and Dawon Kahng began
discussing plans for a new R&D lab. Recognising that it was no longer possible to
introduce new technologies from abroad, the two set about implementing their visionary
plans for a basic research facility of NEC. A lot of emphasis was placed on the new R&D
site, hoping that this new site would contribute to the progress of knowledge

Sample Solution