CITY COLLEGE

INTERNATIONAL FACULTY OF THE UNIVERSITY OF SHEFFIELD

MSc in Management
MSc in Human Resource Management
MSc in Logistics and Supply Chain Management
MSc in Leisure and Tourism Management

TIME: 2 HOURS
MSc LEVEL: SIT EXAMINATION
CBE6100: STRATEGY FORMULATION

This examination paper consists of FOUR (4) questions. Answer TWO (2) questions ALL
questions are of equal value.

Students are expected to support their arguments using examples. All answers should
draw upon academic literature.

Question 1
Gardini SA, a company located in Italy, which manufactures furniture for mid income
customers, is facing escalating competition from Asian manufacturers, who offer
similar products at much lower prices. To address this challenge Gardini management
has decided to implement a cost leadership strategy. Critically discuss the factors
that determine the companys cost competitiveness and ways to successfully
address its cost disadvantages. 100%

Question 2
Critically discuss the structuralist and reconstructionist approaches. Under what
circumstances should a company consider fitting or stretching the market? Give
examples to support your answer. 100%

Question 3
Critically analyze the differentiation strategy. Give examples of companies that have
implemented this strategy and discuss the reasons for their success or failure. How
would you compare this strategy to a best cost provider strategy and what would be
the comparative advantages of the latter strategy. Draw strategic maps to support
your answer. 100%

Question 4
Critically discuss five forces analysis as a tool for external environment analysis. How
can a company that is in an unattractive industry reinvent its business model to
ensure growth and profitability? Perform five forces analysis for an industry of your
choice. What are the implications for strategy development? 100%



END OF EXAM PAPER