CONFIDENTIAL 2 ACIFEB 2025/MAF661/640 QUESTION 1 Spine Relief Sdn Bhd (SRSB) is a leading Malaysian-based company with over 20 years of experience in designing and manufacturing customised ergonomic furniture specifically for patients suffering from slipped discs (herniated discs), These patients often experience chronic pain and, restricted mobility requiring specialised support for daily activities such as sitting, standing, and lying down. B it patients can experience significant improvement posture, and overall quali . SRSB has a well-equipped workshop to mi istomised furniture ranging from ergonomic chairs, adjustable standing desks, footrests, teclining sofas, ergonomic workstations, and ‘supportive stools. Customers found the furniture is not only comfortable and therapeutic but also of remarkable durability. Emphasising the finest quality material and maintaining a high standard of craftsmanship, are the rewarding facts that complement the premium price customers willing to pay for their Products. However, despite its strong brand and history of success, SRSB is currently facing a period of declining demand, mainly due to rising competition from its closest rivals similar products at lower prices. Recognising the need for a strategic shift, the Chief Executive Officer (CEO) has acknowledged the importance of reducing unnecessary costs and improving productivity to remain competitive. The CEO has ruled out the possibility of implementing a turnaround strategy if the situation becomes worsens. The company is considering a range of measures to revitalise growth and regain its market position. Required: a. Discuss three (3) pitfalls SRSB may face under its existing business-level strategy. (10 marks) b. Evaluate how SRSB can pursue the three (3) tumaround strategies to ensure its business remains competitive. (10 marks) QUESTION 2 Allan Electronic Corporation (AEC) consumer electronics sector. Over the years, AEC built a stror it has been grappling with, which has slowed growth counter these challenges, AEC’s Chief Offi underperforming busine 'n both related and un i : agi!CONFIDENTIAL 3 ACIFEB 2025/MAF661/640 ee atametenen, I$ also evaluating the possibilty of entering the e-commerce industry Way to reduce its reliance eng Platform operating in a different sector. Sees this move as pane Sat ence on the highly competitive consumer electronics industry and tap 'ew, high-growth markets. They also anticipate synergies by leveraging TEMA’s platform to sell AEC’s electronics products directly to consumers. However, there are still challenges. While acquiting EB could solidify AEC's postion in the consumer electronics sector, TEMA Gberates in a dynamic and rapidly evolving e-commerce business that requires technological Innovations and strategic agility. The leadership team must carefully weigh the potential risks and rewards of diversifying into such an industry. Required: a. lustrate thtee (3) benefits that can be significantly gained by AEC through diversification, (10 marks) b. Analyse three (3) potential limitations that AEC may restrain from successful acquisition. (19 marks) (Total: 20 marks) QUESTION 3 Solar Surf Technologies (SST) is a mid-sized renewable energy firm specialising in solar panel manufacturing and installation. Founded in 2014, SST has built a strong reputation for innovation and quality, primarily serving customers on the West Coast of Peninsula Malaysia. As demand for sustainable energy solutions surged, SST experienced significant revenue growth, expanding its workforce and operations to meet increasing customer needs. Under the leadership of founder and CEO, Rizal Man, the company has grown rapidly, resulting in a total of workforce over 100 employees. To sustain this momentum and explore new market Opportunities, BF ‘These experiences highlighted the need fora more structured governance framework and a balanced board of directors to navigate the arapi . SST currently operates under a functional organisational structure, with top-down decision- making. The company is divided into three main departments: Manufactuting, Sales, and Research & Development (R&D), each headed by a department manager who reports direct'y to Rizal Man. While this current structure has clearly defined roles and responsibilities, it has also limited creativity and initiative among lower-level employees. Rizal Man has identified several challenges faced by SST. Centralised decision-making has led to bottlenecks, delaying responses to market changes. Lowerlevel managers and employees feel disempowered, which has stifled initiative and slowed innovation. Additionally, the company's performance evaluation system is overly focused on short-term financial metrics, such as monthly profit and loss statements and budget variances, neglecting critical factors like customer satisfaction and employee engagement. As SST prepares to expand internationally, the current management control ‘system lacks the agility needed to respond to diverse regional market dynamics. Moreover, the board of directors lacks members with international expertise, which is essential for guiding SST's Expansion efforts. CONFIDENTIAL ce Hak cipta Univer TknooBl aNiid q AC/FEB 2025/MAF661/640 CONFIDENTIAL Rizal Man recognises the need to revise SST's strategie plan to enhance flexibility and ‘innovation, He envisions a more inclusive decision-making process that empowers lower-level ‘managers, alongside the implementation ofa balanced soprcard incorporating Hon fraser performance indicators like customer satisfaction and employee aaa L. ionally, 4 seeks to 4 n n it SST stands at a crossroads, where strategic decisions will shape its future in the renewable energy sector. By addressing organisational challenges and adopting a more holistic approach to management and governance, SST can position itself for sustainable growth and continued innovation in a rapidly evolving industry. Required: a. Analyse three (3) main capabilities that SST seeks in the new board of directors to enhance its effectiveness for strategic direction. (10 marks) b. Evaluate how the three (8) interdependent leadership activities could contribute to the success of SST. (10 marks) c Propose three (3) changes that could be made to SST’s organisation structure to promote a boundaryless design structure of organisation. (10 marks) (Total: 30 marks) QUESTION 4 yy Founded in 2016, Green Drive Sdn Bhd (GDSB) is a small but fast-growing electric vehicle (EV) manufacturer established by a group of engineers passionate about sustainability, innovation, and reducing carbon emissions in the automotive industry. GDSB focuses on producing affordable, compact, and energy-efficient electric vehicles tailored for urban markets. In 2018, the company launched its EcoMove, aimed at environmentally conscious urban drivers. EcoMove quickly gained market traction due to its low price point, minimalistic design, and practical range for city driving. With growing demand, DSB experienced rapid expansion and captured a small but significant market share in several countries. By 2024, the EV market had become intensely competitive, with major players such as Besla, Folkswagen, and many Chinese manufacturers competing for domination. These established firms introduced cutting-edge technologies such as self-driving cars, greater battery life, and faster charging, putting pressure on smaller competitors like GDSB. Furthermore, numerous governments began to reduce incentives for EV purchases, which had been crucial to GDSB's growth. GDSB faces a critical moment in its development. To maintain its position in the market, it must innovate, attract new customers, and fend off competition from industry titans. The company's leadership recognises the need fo adopt.a more a strategy while managing the risks inherent in a rapidly evolving mark rategy i ational and emerging markets, woCONFIDE! IAS 5 ACIFEB 2025/MAF661/640 Despite the challenges, GDSB sees significant opportunities, Stricter global sustainability regulations, especially arot ( a o-fri Additionally, global urbanisation ie Vs, creating a I ; particularly in Sot utheast Asia and South America, also offer potential due to rising air quality concerns and government interest in cleaner transportation alternatives. To take advantage of these prospects, GDSB is exploring various strategic alternatives. Diversifying its product portfolio to incorporate a medium-priced electric vehicle (EV) with an je will enhance the company's appeal to a wider demographic, specifically targeting customers who require vehicles capable of In addition, GDSB is actively studying the development of autonomous driving technology. They want to collaborate with technology companies to incorporate sae capabilities into their vehicles, to remain competitive in the fast-changing automotive indus GreenDrive's strategy prioritises the improvement of its innovation capabilities, recognising that cultivating an innovative culture is crucial for keeping up with the industry's fast-paced technical breakthroughs. Finally, the company is evaluating entry Into emerging markets, where there is a growing demand for il Required: a. Evaluate the advantages and risks of an adaptive new entry strategy for GDSB in the global electric vehicle (EV) market (10 marks) kiupy b. Explain how GDSB can integrate the five dimensions of entrepreneurial orientation to enhance its performance and competitiveness in the global electric vehicle (EV) market. (10 marks) G Elaborate on the challenges and pitfalls of managing corporate Innovation processes in GDSB. (10 marks) (Total: 30 marks) END OF QUESTION PAPER