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 your ability to think critically, and your understanding of the subject. You are not being tested for your ability to memorize and recite, but your ability to find and use information, 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 asked to 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) slows you 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 you have to. Your own analysis is more important..

Take Home Test

Page 1 of 7 Mid-year

Strategic Management Instructor: Amir Wassef 27 February 2013 Be 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 particular choice. 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 for answers 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 -<Moustafa Mahmoud Ibrahim Ghanem>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 : wassef@ieee.org AND cc Hala.gheryani@eslsca.org 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 the test start time/date.

Take Home Test

Page 2 of 7 Mid-year

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 important tourist and business areas of Egypt and South Africa. Having the two largest airlines in Africa onboard is good news for the African economy. South African Airways, joined by EGYPTAIR, provides a strong, wellconnected presence for the Alliance, especially when the efforts of nine other Star Alliance carriers are included 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 to exist] 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

Take Home Test

Page 3 of 7 Mid-year

Strategic Management Instructor: Amir Wassef 27 February 2013 Create value for our customers, employees, owners and stakeholders

Using the definitions of Vision, Mission, and Objectives statements, answer the questions listed in Wheelen & 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 on your choice of competitive strategies. Hint: Examine table 4.1 in Wheelen & Hunger Some Important Variables in the Societal Environment and take into consideration the prevailing conditions in Egypt. (Demographic distributions, income, age distribution, etc) Select 2 variables for each of the PESTEL variables (i.e. 2 factors for Political, 2 factors for Economics, 2 factors for Societal, etc) for the following industries in Egypt, bearing in mind that the economy is mostly a factor-based and investment-led economy, and explain why these factors are relevant 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 to this industry?

Take Home Test

Page 4 of 7 Mid-year

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) Economic

Variable

Justify Your Choice: Why is it important to this industry?

Technological

Political

Sociocultural

Legal

Take Home Test

Page 5 of 7 Mid-year

Strategic Management Instructor: Amir Wassef 27 February 2013

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, you can 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 or petroleum ) 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 the interpreting of services, in other words, the total cost needed to bring a project to a commercially operable status. High capital cost, we can consider it as one of entry barriers because how the investors go about securing funding for the project and how much of a return must 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:

Take Home Test

Page 6 of 7 Mid-year

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 will use 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 and weaknesses?

4.2- What does the IFAS matrix tell you about your firm?

Take Home Test

Page 7 of 7 Mid-year