Compilation TEST MAF661 Random PDF

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MAF661 2018SUGGESTED SOLUTIONNote to examiners: Please read each student’s answer carefully, line by line, word byword and understand what the student is putting on paper. Do not make your own assumptions about what the students are trying to put forward. Please use yourdiscretion wisely and give ma...

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MAF661 2018 SUGGESTED SOLUTION Note to examiners: Please read each student’s answer carefully, line by line, word by word and understand what the student is putting on paper. Do not make your own assumptions about what the students are trying to put forward. Please use your discretion wisely and give marks accordingly.

a) Discuss in detail three (3) resons for Rehan and her team to perform a SWOT analysis on The Brilliant Bookstore before formulating new strategies for the business. (10 marks) A SWOT analysis is a tool that is usually used by businesses to learn about their internal ‘happenings’ as well as their external surroundings, so that they are better able to check for the ‘business-health’. It is important to do the SWOT analysis before formulating new strategies because: 1. Before formulating new strategies, the management should conduct the feasibility of the intended strategy. The management of The Brilliant wants to revamp the image so they must now study the external environment particularly the customer’s acceptance. By doing a thorough SWOT analysis, management would be able to learn the needs and desires and also expectation of customers so that it can better adopt an image that the customers desire. Otherwise changing an image could be disastrous as customers might reject it. 2. The management of The Brilliant Bookstore must also study whether the business itself is capable of undertaking the new concept by studying the internal affairs such as managerial abilities, financial capabilities as well as availability of resources. So, it must study the strengths of its business so that these core competencies can be further harness to make the new concept something that could really differentiate Brilliant Bookstore from its competitors. As for internal weaknesses, these must first be improved before the business can move on with its new initiatives. Otherwise if the weaknesses are not overcome, it may impede progress and the new image could not be realized. 3. Before formulating new strategies, the management should be more sensitive towards the externalities such as threats. So before coming out with new strategies, from finding of SWOT, the management would be able to compare as to whether competitors have also undertaken such strategies, if so then management should not duplicate competitors. The manaegement can seek out for opportunities abd design strategies to take advantage of those opportunities.

MAF661 2018 b) The competitive environment consists of many factors that are particularly relevant to a firm’s strategy. i.

In your opinion, is the newly opened community library a threat to the Brilliant Bookstore? Explain your answer in the light of the threat of substitute of the five forces of competition. (5 marks) Threat of substitute is the library’s ability to ‘steal away’ customers of the bookstore. That is, after visiting the library the customers would not want to visit the bookstore anymore. Thus may cause a reduction in sales. However, in this case the library is simply a place for people to read books and just borrow books for a stipulated period only. So, in my opinion the library is not a threat to The Brilliant Bookstore because the satisfaction that buyers can enjoy at the bookstore is incomparable to that at the library. Satisfaction comes in many forms such as ambiance at the Brilliant Bookstore and the pleasure of owning books. Other than that, as the fact to case suggests that the government is encouraging people to read, thus more may purchase books since they can read it whenever they like and not just during the ;library hours’. Therefore, the Brilliant Bookstore would not feel threatened by the existence of the library. (Note: students may answer that library poses a threat to the Brilliant Bookstore; marks to be given accordingly) ii.

Discuss the intensity of rivalry between competitors if The Brilliant Bookstore implements the recommendation by Rehan to go on-line. (5 marks) With the existence of the Brilliant Bookstore online, the existing players would felt the heat as its customers may switch to the Brilliant Bookstore to get what they want. The traditional bookstore needs to compete with the Brilliant Bookstore that enters into online business with modern technology which enticed the IT savvy customers. The existing competitors probably may not want to indulge into price war with the Brilliant Bookstore since they would merely be at disadvantageous position. Companies like Cahaya Bookshop and Kedai Buku Bistari would have to think of tactics to lower its prices so as to enable them to compete with the Brilliant Bookstore who managed to minimize their costs through online offerings. Overall, it could be an intense rivalry reaction towards the Brilliant Bookstore and the competitors in the industry would probably retaliate. c) Discuss the impact of two (2) relevant general environmental segments that may have a negative impact on The Brilliant Bookstore business. (10 marks) Technological Developments in technology lead to new products and services and improve how they are produced and delivered to the end users. Innovations and stateof-the-art technology can create entirely new industries and alter the

MAF661 2018 boundaries of existing industries. There are now magazine websites and digital magazines growing in popularity that may cause negative impact to the Brilliant Bookstore. The Internet too offers new exciting possibilities for magazines such as sound and video, thus making on-line magazines a fun medium for leisure reading. With all the new innovations, the speed information is brought to the end users is now at ‘real time’ which would make news in printed materials stale by the time the magazine available in the market. The innovations of iPad, smartphones and other mobile reading devices have had a direct effect on the sales of the Brilliant Bookstore. The advancement in technology is surely ‘eating-up’ most printed magazine sales and that the Brilliant Bookstore may severely affected. Socio-cultural Some magazine websites are also expanding their offerings to include blogs and streaming video and audio which appeal to the present IT-savvy society. These interactive features, combined with people’s thirst for up-to-date materials, news, make the websites an increasingly appealing choice for readers. The Internet too offers new exciting possibilities such as sound and video, thus making on-line magazines a fun medium for leisure reading. Rehan also noted the switch to iPad, smartphones and other mobile reading devices have had a direct effect on the sales of the Brilliant Bookstore. (5 marks X 2 = 10 marks) (Note: student may give other segment such as Government; marks should be given accordingly) d) Discuss whether the new concept implemented in The Brilliant Bookstore is a sustainable competitive advantage. (10 marks) Before answering the question, student must know what is ‘that’ they are required to test for. In the above requirement, they are to test on the new concept implemented. In the case, the new concept is clearly explained about introducing non-core activities to the bookstore. 1. Valuable means that this trait is something that customers find difficult to resist and it is very meaningful for the customers. This new concept is valuable as can be seen from the case where customers are very attracted to go to the bookstore

MAF661 2018 as they find that the activities given are valuable to them both in providing entertainment and educational values. This new concept is also valuable to the Brilliant Bookstore as without these new activities Brilliant would lose out on the competitors. 2. Rare means that this attribute is seldom found in the industry; if it exists it is found in very few of the players. This new concept is rare and is in fact one of its kind in Desa Emas. Even the two other competitors and the library do not have such activities. So being rare, it would be the place for buyers to shop for books. It is this new concept that makes it unique, thus adding another rare trait in the industry. 3. Costly to imitate is the disability of competitors to copy since the costs (sources of inimitability) of copying is far too expensive. Thus competitors would not be able to duplicate the work of another. This new concept is surely costly to imitate as the activities are varied and thus require huge amount of funding. Having noncore activities in the bookstore, to constantly plan for new activities, to add new product line (deli) thus, would incur additional costs that competitors may not be willing to partake. Therefore, competitors may find it very costly to simply copy the activities of Brilliant. 4. Non substitutable is the ability of a player in the industry to provide ‘products and/or services’ that cannot be replaced by another substitute. This new concept is non substitutable as one cannot simply replace these non-core activities with ‘alternative core activities’. The existing rivals cannot replace the new concept of Brilliant with their own activities or perhaps selling more books or different types of books or even by allowing customers to pay by installments. All these strategies cannot replace the creative fun activities provided by Rehan’s bookstore. Conclusion: the analysis above proves that the new concept gives the Brilliant Bookstore a sustainable competitive advantage over its competitors. (2.5 marks x 4 = 10 marks) (Total: 40 marks)

MAF 661 MAC 2019_TEST_SOLUTION [MeccaMedin Travel and Tours SdnBhd –MMTT) a) Based on the case, perform a SWOT analysis for MMTT by explaining any two (2) relevant answers for each component of the SWOT technique. (10 marks) Strengths • • •

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MMTT offers premium tailor-made Hajj and Umrah packages, as well as, Muslim tour holidays. MMTT’s packages as comfortable, affordable and practical since the Hajj, Umrah and Muslim tour packages can also be tailor-made to their needs. MMT provides attractive packages which diligently designed mainly focusing on the client’s comfort, convenience and confidence, guided by well trained, experienced, knowledgeable and committed staffs. MMTT provides direct flight arrangement from Kuala Lumpur to Jeddah or Medina and accommodation at comfortable hotels which is in close proximity to the great mosques in Makkah and Medina to enable pilgrims to perform prayer and other religious activities with ease besides their excellent ground services in terms of transportation and meals.

Weakness (in MMTT service operation) •

•

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MMTT offer the airfare at a higher price as compared with the competitor. MMTT do not use the national air carrier to provide reliable charter flight service and do not use massive aircraft thus MMTT could not enjoy the economies of scale. Lacking in managing their resources such as capital investment, human capital, and technology investment effectively so that MMTT could not render quality service to its clients by considering the current competitive business landscape of the Hajj-Umrah and Muslim tours industry. MMTT is using traditional service to provide hajj and umrah training session, instead of using the latest technology and digitalization as a new platform to communicate and interacts with travelers, especially millennials.

Opportunities •

• •

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The rise in the number of pilgrims can be linked to increasing awareness to fulfill one of the Muslim’s obligations, increase in the level of income, thus ensuring business demand. The awareness of Hajj and Umrah travelers in choosing an only licensed and reliable travel agency. The Malaysian Government announcement in the 2019 budget that Muslim civil servants are entitled to take one time seven days unrecorded leave when performing Umrah. The government new policy gives further opportunity in this industry for the likes of MMTT especially as it has been ranked as the top five, Hajj and Umrah services provider. Develop a strategic alliance with the national air carrier and the established travel agents (TiH, Dalus and Ikhlas Travel) to achieve synergy and increase market power.

MAF 661 MAC 2019_TEST_SOLUTION Treats •

Intense of rivalry from TiH, Dalus and ikhlas travel. The competitive advantage that these companies have such as providing excellent and satisfactory Hajj services to Malaysian pilgrims, received global recognition, use the national air carrier to provide reliable charter flight service using A380, a massive aircraft that benefited them in terms of economies of scale and offer at a cheaper airfare.

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MMTT will face a new challenge when young Muslim travelers are soon to make their arrangements for accommodations and other related Umrah needs via the ‘do-it-yourself Umrah’ (DIY Umrah-minor pilgrimage).

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The changes in technology and this technology is being used by the competitors. The traditional service roles of pilgrimage providers will be replaced by webconnected applications and virtual reality (VR). (Any 8 relevant points x 1.25 = 10 marks)

b) Discuss the impact of any two (2) relevant general environment segments on MMTT’s business. Technology •

•

Technology changes give a stronger pressured to MMTT to remain competitive. When the traditional service roles of pilgrimage providers will be replaced by web-connected applications and virtual reality (VR). This technology will provide new Umrah solutions; thus more pilgrims, in particular, the younger ones, will be able to book and arrange their own Umrah trips without needing to depend on a travel agent or join an Umrah tour group. The use of VR will give pilgrims an extra dimension incorporated into their learning of the rituals of performing Umrah thus it could enhance the pilgrimage experience. Pilgrims can immerse themselves at the Masjidil Haram premises, with details and expose them to the actual surroundings. Besides, the Artificial Intelligence (AI) and Robotic Process Automation (RPA) will also be widely used for visa processing and other processes, replacing the traditional method that is used currently. The online business concept used by the competitor such as TripNgo. TripNgo.umrah.com giving pilgrims access to more than 1,800 approved accommodation options in Makkah and Medina, offered at TripNgo’s best rates. The E-umrah packages will be a complete airport-to-airport package, which includes visa, transportation, hotels, and Umrah and “ziarah” tours. E-Umrah service would also enable pilgrims to apply for Umrah visas on their own.

Demographic factor •

The growing interest among the younger generation to perform annual HajjUmrah pilgrimage via the ‘do-it-yourself Umrah’ (DIY Umrah-minor pilgrimage). The young Muslim travelers prefer to make their arrangements for accommodations and other related Umrah needs on their own using the technology.

MAF 661 MAC 2019_TEST_SOLUTION •

When the level of income for Malaysian society is increasing it will enable them to perform the hajj and umrah. The price offered by Hajj and Umrah services provider is at a reasonable rate resulted in an increase in the demand of Malaysian society to perform these worship.

Political •

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The Malaysian Government announced in the 2019 budget that Muslim civil servants are entitled to take one time seven days unrecorded leave when performing Umrah. The Arab Saudi government policy that allows the pilgrims to apply for the visa on their own. (Any 2 relevant external environment factors x 5 marks = 10 marks)

c) Explain how MMTT’s operation and its human resources could create value to its customers, thus enable MMTT to remain competitive. i.

Operation • Efficient workflow operating system 

•

MMTT could provide an effective and efficient workflow of their direct flight arrangement from Kuala Lumpur to Jeddah by developing a strategic alliance with the national air carrier. This strategic alliance could enable MMTT flight arrangement to become easier and MMTT also could enjoy the economies of scale, thus the airfare could be offered at the lower price. Besides, the transportation arrangement, the strategic alliance with established travel agents (TiH, Dalus and Ikhlas Travel) also could support their financial capability thus can be used to provide comfortable charter hotels service that is close proximity to the great mosques in Makkah and Medina to enable pilgrims to perform prayer and other religious activities with ease. By using chartered hotel and transport services, MMTT could fully maximize the utilization during low season and no shortage issues during peak season. Thus, could minimize and reduce the cost of operation.

Incorporation with appropriate process technology 



MMTT needs to incorporate the used of VR in providing training to the pilgrims in learning of the rituals of performing Hajj and Umrah and expose the clients to the actual surroundings. Use new technology as a platform to communicate and interacts with travelers, especially millennials. For example, using Customer relationship management (CRM), a technology for managing all the company’s relationships and interactions with customers and potential customers. The goal is to improve business relationships. A CRM system helps companies stay connected to customers, streamline processes, and improve profitability. (Any 2 relevant point x 2.5 marks = 5 marks)

MAF 661 MAC 2019_TEST_SOLUTION ii.

Human resources • Effective recruiting, development and retention mechanism for employee • Provide continuous training to ensure that MMTT staffs are well trained, knowledgeable and committed. • Reward and incentive programs to motive all employees (Any 2 relevant point x 2.5 marks = 5 marks)

d) The competitive environment consists of many factors that are particularly relevant to a firm’s strategy.

ii.

•

Discuss how the implementation of E-Umrah concept in Malaysia can become a threat of substitute to the Hajj and Umrah services provider.

•

The E-umrah packages will become a substitute for the traditional umrah services provider. E-Umrah enables the pilgrims to complete airport-to-airport package, which includes visa, transportation, and hotels on their own, without needing to depend on a travel agent or join an Umrah tour group. This could reduce the sales of the umrah services provider. Besides, the use of webconnected applications and virtual reality (VR) in providing digital training and learning of the rituals of performing Hajj and Umrah. (5 marks)

Discuss the impact of the intensity of rivalry on Hajj and Umrah services provider. •

There are numerous attractive packages options available offered by many registered and license Hajj and Umrah services provider. The package offers among hajj and Umrah services provider is similar, lack of service differentiation, thus switching cost is low and enable the pilgrims to switch easily to another hajj and Umrah services provider according to their preferences. The package price and service quality are on par among Hajj and Umrah services provider led to the intensity of rivalry. (5 marks) (Total: 40 marks)

MAF661 TEST

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STRATEGIC MANAGEMENT (MAF661) TEST 1 (15%) Time: 1 ½ hours

The Brilliant Bookstore is a popular bookstore in Desa Emas, a big township in the heart of the city. The Brilliant Bookstore and its rivals, Cahaya Bookshop and Kedai Buku Bistari sell a variety of books meeting the needs of a wide range of its customers. These bookstores also boasted of personalized service provided to its patrons and a customer-friendly environment that encourages one to browse and mingle. For years, the three bookstores have been competing for the market share in Desa Emas. Then the Local Municipal Council opened a public library in its neighborhood in response to the government’s call to encourage the reading culture among Malaysi...