The governance structure and funding model of Carillion are documented on pps.5-7. Critically apply any three of Mintzberg’s schools of the strategy process to explain the events leading to Carillion’s demise.

 

CB676 Strategy Analysis & Tools, 2017-18 Main Exam Paper

SECTION A(Answer ALL parts of question 1):

1Read thepress cutting exhibits on Carillion going into liquidation, published in The Financial Times, and answer all of the following questions:

(i)Compare the ‘shitometer’ [page 2, para1] description and its workingsto the Kaplan and Norton balanced scorecard approach. Use these to explain how (non-)application of their principles potentially led to thecollapse of Carillion. Draw primarily from pps.2-4and other common knowledge about Carillion’s stakeholders to support your answer.(20marks)

(ii)The governance structure and funding model of Carillion are documented on pps.5-7. Critically apply any three of Mintzberg’s schools of the strategy process to explain the events leading to Carillion’s demise.(15marks)

(iii)Use principles of organizing strategy to comment critically on Carillion’s use of ‘malus clauses’within their annual reports as a fall-back strategy. Would any alternative mechanism have been more effective? Draw mainly from pps.8-10 and other common knowledge about Carillion to support your answer.(15marks)

SECTIONB(Answer any TWO of the following questions):

2It is 100 years since British women have been given the right to vote, which arguably triggered off an advantage for the UK in terms of its national competitiveness. Draw on the resource-based view of strategy to assess critically the extent to which women’s rights can be seen as a ‘strategic resource’ throughout the century and beyond. Give details of the contexts in which you are substantiating your claim.(25marks)

3Tesla, the electric car manufacturer, reporteda $675m loss in the 3 months to December 2017.While valuable lessons were learned from their experience, and with the continuation of the Model 3 sedan, “… [their]prior experience on the Model 3 ramp has demonstrated the difficulty of accurately forecasting specific production rates at specific points in time”. Evaluatethe use of Porter’s ‘generic strategy’ and ‘operational effectiveness’ by Tesla, and substantiate your claim.(25marks)

4Apple Corporation claims it is not in the music business “for the money”.Instead, its investments in the HomePod and Apple Music are aimed at “doing the right thing”. Use concepts and frameworks within corporate level strategy to explain the above statement and justifywhy a diversification strategy can be successful for the firm as a whole without the need to make money.(25marks)

5In a famous letter from Emperor Qianlong to King George III in 1793, China expressed its self-sufficiency to the UK: “… we possess all things. I set no value on objects strange or ingenious, and have no use for your country’s manufactures”. Contrast this statement to the purpose of UK Prime MinisterTheresa May’s state visit to China in February 2018. Draw on Porter’s Diamond model, and other frameworks within global level strategy to support your answer.(25 marks)

6The Commonwealth of Nations has secretly begun succession planning of Her Majesty the Queen Elizabeth II, as its head (of 53 states), upon her future death because the role is not hereditary and will not pass automatically tothe first in line heir to the throne,Prince Charles, the Prince of Wales(who will only head 15 nations). Critically assess the models of strategic leadership and relation to succession planning to make recommendations to the above situation.(25marks)

SECTION A(Answer ALL parts of question 1):

1Read the press cutting exhibits on Carillion going into liquidation, published in The Financial Times, and answer all of the following questions:

(i)Use the press articles in the information pack to assess the construction industry’s attractiveness with Porter’s Five Forces model. Draw on additional common knowledge to substantiate your analysis.(20marks)

(ii)The article on p.8 refers to “sins of omission on pay and debt …”. Examine the meaning of this in the context of the article and draw parallels with the 10 sins of objectives management. Use any of the other articles to substantiate your answer.(15marks)

(iii)Drawing fromthe press articles in the information pack, evaluate if there is any use of the resource-based view of strategy at any point during Carillion’s days of organizational survival/success. Present detailed examples to substantiate your answer.(15marks)

SECTION B(Answer any TWO of the following questions):

2In March 2018 the US movie producer, The Weinstein Company, filedfor bankruptcy but secured a rescue deal to buy its assets.Its sudden collapse was triggered by a series of criminal allegations against its co-founder in the preceding year. Critically discuss the importance of corporate image, corporate identity and the responsibilities of business. Explain why allegations against a senior company figure can have a serious widespread impact on society, especially for the movie industry, and in return for the company.(25marks)

3Lego, the Danish toy company, will be introducing plastics made from sugarcane from 2019 onwards “… as a great first step in our ambitious commitment of making all Lego bricks using sustainable materials”, although children would not notice the difference.Critically argue if this move is related to first-order dynamic capabilities of the firm, and if so, consider if second order dynamic capabilities (eg. JIT, lean production, etc) are consistently operationalised or contrastly hindered by the move. (25marks)

4Asset management company, Standard Life Aberdeen (SLA) recently soldits insurance business to Phoenix Group in a £3.2bn deal as part of its strategy of “building a world-class investment company”.They said it “completes [their]transformation to a capital light investment business”.Critically evaluate for SLA how ‘downscoping’is a valuable corporate level strategy.(25marks)

5HMD Global (present owner of the Nokia brand) is making a comeback in the smartphoneindustry by reintroducing retro phones. Its latest reinvention is the ‘Nokia bananaphone’ which in its heyday dominated the mobile phone market.If HMD Global is to compete successful against international brands like Huawei, Samsung and Apple, the model must successfully enter international markets. Explain and critically argue how the Nokia brand can use the four types of strategies for entering the home markets of Huawei, Samsung and Apple.(25 marks)

6A recent court rulingin Germany now allows German cities to ban some old diesel vehiclesfromentering zones affected by pollution. Critically assess how municipality management of implementing the ruling can be facilitated by the(Japanese derived)hoshin kanrimethodology of policy deployment. Draw from US, UK or Asian comparisons to support your answer.(25marks)

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