MBA STRATEGIC MANAGEMENT
MIDTERM EXAM
Answer the following items concisely and logically. Scores will be based on the completeness and
rational sense of your answer NOT on the length of your answers. Total points 80. Do not forget to
turned in
a. How will you implement the theory of Strategic Management to guarantee its realization in the
organization? Support your answer with one organizational example. 20points
b. If you are to invest doughnut business in SM Pampanga,1) what tool will you use to access at least
the profitability and market share in the given industry in that same locality? 2) Illustrate/show the tool
you used to assess and explain your answers in details. 3) Based on your assessment will you continue
to invest in the doughnut business why? 40points
c. Explain: 1) Why we need to prioritize the relative importance of strengths and weaknesses in an IFE
Matrix. 2) Why it’s not advisable to have more that 30 percent of the factors to be financial ratios in an
IFE Matrix. 10points respectively.
Name: Lea M. Banting
ANSWERS:
a. Strategic management is the process of specifying the organization’s objectives, developing policies
and plans to achieve these objectives, and allocating resources to implement the policies and plans to
achieve the organization’s objectives. It is an ongoing process that assesses the business and the
industries in which the company is involved. Implementing the theory of Strategic Management to
guarantee its realization in the organization involves the following:
Performing a situation analysis, self-evaluation and competitor analysis: both internal and external
Setting objectives by crafting vision and mission statements that should suggest a strategic plan.
Allocating resources
Establishing a chain of command such a cross functional teams.
Assigning responsibility of specific tasks to specific individual or group.
Monitoring results and comparing to benchmarks and best practices
Implementing specific program and developing the process, training, documentation and integration
with legacy processes.
Measuring the effectiveness of the organizational strategy.
b. The tool that I will be using in accessing the profitability and market share of doughnut business in
SM Pampanga is the SWOT Analysis presented below:
STRENGTHS WEAKNESSES
Convenience fast food choice Low entry barrier
Trained service staff Customer oriented
High quality doughnuts Delay in supply chain
Variety/choices Maintenance-need to upgrade machinery
Easily adaptable to choices/trends Initially limited cash flow
Freshy baked High staff turnover
Promotion campaign
Adheres to health regulations
Location
Qualified workers not required
OPPORTUNITIES THREATS
Online sales, customized products Health(fat, calories…peoples assumptions
Product augmentation that it is not healthy
Special requirements ex. gluten free lactose Change of government regulations to
Opportunities to expand manage health related issues
Selling through other companies Other competitors
Not a daily consumption
Failure in technology for production
Through SWOT Analysis of potential doughnut industry ideas, I have discovered that there are potential
strengths, weaknesses, opportunities and threats when considering to enter this field.
When considering to enter the doughnut business there are a few threats in which I need to mitigate, to
remain hopeful for success. Although I am aware that the sweetness of a donut is not a daily
consumption, I see little reason how this can impact the business on a great scale. Other factors such
as competition was also another interest needed to keep in mind. Based on this assessment I will
continue to invest in doughnut business.
c.The IFE Matrix is the Internal Factor Evaluation Matrix that assesses the major strengths (S) and weak
nesss (W) in the functional areas of the business. It also provides a basis for identifying and evaluating
relationships among those areas.
In strategicmanagement, it is important to prioritize each strength and weakness according to some wei
ghting scale like (1.0 for all important and 0.0 for not important) because common sense says that not al
l strengths and weaknesses contribute the same effect or weight. All the strengths would not each contri
bute equally to the total strength of the company. Similarly, all the weaknesses would not each
contribute equally to the total weakness of the company. For example, take the case of a company
where you have one firstclass honors graduate and one secondclass honors graduate. You certainly
would not expect that the “brainpower” contributions from both of them towards the company to be the s
ame. You must figure out a way to assess their relative contributions.
In developing an IFE Matrix, it is not advisable to have more than 30 percent of the key factors to be
financial ratios since financial ratios are generally the result of many factors, it is difficult to know what
particular strategies should be considered based on financial ratios.
