Professional Documents
Culture Documents
PROFESSIONAL
EXAMINATION
Module
CORPORATE AND
BUSINESS STRATEGY
(CBS)
9 November 2010
1 Detailed Syllabus 3
2 Course Assessment 5
3 Group Project 6
4 Reading References 10
Annex
DETAILED SYLLABUS
ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2
Detailed Syllabus
AIM
The strategic management course will equip you with the frameworks, tools, and concepts
you will need to understand strategy formulation and implementation. This course will help
you learn how to manage the firm’s competitive position and development, in order to ensure
its long-term survival.
It is designed to enhance your capacity to do the job of a general manager responsible for
strategic decisions. Participants are placed in the position of key decision makers (or their
advisors) and are asked to solve problems specific to each case.
The topics and concepts are outlined below, and details on your assignments are provided in
the following pages. Part of the grade will be the application of what you have learned
throughout the program in an independent final project on a firm of your choice.
OBJECTIVES
COURSE CONTENT
This course is taught primarily through readings and the case method, but also includes
workshops, and videos, if applicable. The learning experience results from the readings and
the workshops, and from the preparation of cases, assignments and projects.
The materials used in the course encompass a wide range of industries, businesses and issues
in order to provide the greatest depth and breadth of experience.
The cases and concepts will put you in a role of a key decision-maker, most often as a
general manager. The case method requires you to use analytical tools taught in the course
and to apply your personal judgment to a specific situation. There is no single correct
solution to any of the case problems. There are, however, many wrong solutions.
During the workshops, the instructor will cover the theory aspect of strategy, split the class
in groups for discussion and answer your query regarding the readings and the cases. The
instructor’s role in the class discussion is to help you, through intensive questioning, to
develop your ideas.
3
ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2
Detailed Syllabus
The general course lesson plan is as follows, subject to adjustments as the term progresses.
References in brackets are to the Strategic Management and Business Policy, 12/E. Thomas
L. Wheelen. David L. Hunger (WH), Pearson International Edition, and to cases that will be
covered in class. Please refer to Cases for Discussion section for more details.
Session 1: Basic Concepts of Strategic Management (WH Chapter 1 & Case 2: The
Wallace Group)
Session 2: Corporate Governance (WH Chapter 2 & Case 1: The Recalcitrant Director
at Byte Products, Inc.)
Session 3: Social Responsibility & Ethics in Strategic Management (WH Chapter 3 &
Case 5: Everyone Does it)
Session 4: The External Environment (WH Chapter 4 & Case 16: Harley Davidson INC,
2008: Thriving Through a Recession)
Session 5: Internal Scanning: Organizational Analysis (WH Chapter 5 & Case 24: The
Haier Group: US Expansion)
Session 6: Strategy Formulation: Situation Analysis and Business Strategy (WH Chapter
6 & Case 18: Carnival Corporation & Plc (2006): Twelve Distinct Brands Serving Seven
Continents)
Session 7: Strategy Formulation: Corporate Strategy (WH chapter 7 & Case 20: The
Home Depot (2006): Executive Leadership)
Session 8: Strategy Formulation: Functional Strategy and Strategic Choice (WH chapter
8 & Case 30: Church & Dwight Builds a Corporate Portfolio)
Session 9: Strategy Implementation: Organizing for Action (WH Chapter 9 & Case 17:
JetBlue Airways)
Session 10: Strategy Implementation: Staffing and Directing (WH Chapter 10 & Case 13:
Google: An Internet Search Engine Company)
Session 11: Evaluation and Control (WH Chapter 11 & Mini Case 32: Six Flags, Inc: The
2006 Business Turnaround)
4
COURSE
ASSESSMENT
ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2
Course Assessment
COURSE ASSESSMENT
You are to form a group (minimum of 1 student to maximum of 4 students) and perform an
industry, company and strategy analysis of a company in any of the following sectors:
Details of the group project are listed in the following Group Project section.
5
GROUP
PROJECT
ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2
Group Project
1. You are required to submit your selection details (as indicated in the format below) no later
than one week after the first workshop, i.e. by 6 August 2010 (Friday), 5pm via email to
profexam@icpas.org.sg:
Project Selection
Company Name Sector
1st Choice
(in order of
preference)
2nd Choice
3rd Choice
2. The deadline for project submission is 5 November 2010 (Friday), 5pm. No marks will
be awarded for reports submitted after the deadline. The report must be submitted in soft
copy format (MS Word or PDF) via email to profexam@icpas.org.sg. No hardcopy is
required for submission.
6
ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2
Group Project
REPORT GUIDELINES
1. The number of words must not exceed 2500. These words refer to those in the main report
(not Appendices) and not inclusive of words in Figures and Tables.
2. Both in-text and a Reference list are compulsory. Format required for the referencing is
Harvard Referencing Format or also known as the Author-Date Format.
3. The final report should be typed, double-spaced on A4-sized document, with equal left
and right margins of 3 cm. Times New Roman (font size 12) is required.
Your report should contain 2 parts: Industry Analysis and Company Strategy Analysis.
Your group industry analysis should focus on industry trends and on the firm competitive
environment. Feel free to adjust the outline below in the most meaningful way for the
industry you selected. The important point is to cover all essential areas in a clear and
concise manner, and to highlight the main external strategic issues the firm is confronted to.
The last part will ask you to focus on the firm strengths and weaknesses to elaborate a
company strategy. To do so, you must have a clear understanding of the environment in
which the firm operates.
Suggested outline
C. Industry Analysis
• Relevant industry trends (e.g. segmentation, costs / technology aspects, competitors,
and main government/trade regulations) with implications for the firm performance
and strategy
• What are the most noticeable changes in the industry environment?
• Strategic Group Map
• Attractiveness of the industry using the Porter 5 Forces model (i.e. analysis of forces’
strengths, changes in forces’ strength, etc.)
o Remember Porter’s analysis is an industry-level (not firm-level) analysis
o Who are the firm’s present/future customers? ...competitors?
• Key success factors in the industry
7
ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2
Group Project
The purpose of this analysis is to recommend a strategic course of action for the company
you selected. You should use analytical techniques and frameworks covered in class to
examine the firm's strategic intent, its strategic position, and viable alternatives/strategic
options.
Suggested outline
8
ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2
Group Project
E. Endnotes (references)
9
READING REFERENCES
ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2
Reading Reference
REQUIRED TEXTBOOK
Strategic Management and Business Policy, 12/E. Thomas L. Wheelen. David L. Hunger.
Pearson International Edition.
ALTERNATIVE BOOKS
1. Hitt, Michael A., R.D. Ireland & R.E. Hoskisson. 2003. Strategic Management:
Competitiveness and Globalization, 5th Edition, (Cincinnati: ITP Southwestern
Publishing Co).
2. De Kluyver, Cornelius A. 2000. Strategic Thinking: An Executive Perspective. Upper
Saddle River, NJ: Prentice Hall
3. Pearce-Robinson. Strategic Management: Formulation, Implementation, and Control .
10th Edition. Mc Graw Hill International edition
4. Mintzberg, H., Ahlstrand, B., Lampel, J. (1998), Strategy Safari: A Guided Tour
Through the Wilds of Strategic Management, Free Press, New York, NY,
5. Robert A. Pitts & David Lei. Strategic Management: Building and Sustaining
Competitive Advantage. 4th edition. Thomson Higher Education, 2006
6. Thompson-Strickland. Strategic Management, Concepts and Cases, 12th Edition. Mc
Graw Hill International Edition.
7. Bob de Wit. Ron Meyer. Strategy - Process, Content, Context, an International
Perspective. 2nd Edition, International Thomson, 1998
8. Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2007). Crafting & Executing
Strategy: The Quest for Competitive Advantage: Concepts and Cases (15th ed.).
Boston: McGraw Hill, Irwin.
10
ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2
Reading Reference
REFERENCE ARTICLES
11
Week Week
Text
No. beginning Topic
Readings
Monday
FOUNDATION OF STRATEGY
Tue
3 Aug 2010 CBS Preparatory Course: Session 1 7.30pm to
10.30pm
ANALYSIS
12
ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2
STRATEGY FORMULATION
Tue
31 Aug 2010 CBS Preparatory Course: Session 2 7.30pm to
10.30pm
13
ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2
STRATEGY EXECUTION
Tue
4 Oct 2010 CBS Preparatory Course: Session 4 7.30pm to
10.30pm
14
ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2
15
CASES FOR
DISCUSSION
ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2
1. What do you think the Wallace Group has a clear Mission and Vision? Please support
your answer.
2. Identify the issues facing the Wallace Group? Please elaborate.
3. Identify what basic strategic concepts can the Wallace Group use to improve their
current situation?
4. Discuss how the strategic concepts identified in Question 3 will help the Wallace Group
address their issues identified in Question 2.
1. What are the factors Jim should consider when deciding which launch date to use?
2. Are ISI and its competitors (e.g. Lockart, Global Science) ethical in their business
practices?
3. Does a practice become ethical just because “Everyone does it”?
4. What can be done to ensure that the industry develops and use higher standards of
ethics?
1. Discuss Haier’s business strategy. Does Haier have a sustainable competitive advantage
over its competitors?
2. Compare Haier`s position in major home appliances and in consumer electronics in the
US:
3. Which growth alternative is better?
Case 18: Carnival Corporation & Plc (2006): Twelve Distinct Brands Serving Seven
Continents
16
ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2
1. What is the importance of corporate culture to Home Depot? Is it being lost or just
changed to adjust to a new environment?
2. How can differentiation and low-cost competitive strategies be used simultaneously?
3. What core competencies does Home Depot possess that can be transferred to the
professional contractor market? To going international? Are any distinctive?
4. What should Home Depot do next to ensure continued growth?
Mini Case 32: Six Flags, Inc: The 2006 Business Turnaround
1. Recommend relevant performance measures can be used to help six flags in its quest
towards profitability?
2. Recommend strategic information systems can be developed to facilitate Six Flag’s
turnaround strategy?
3. What are the key issues which Six Flags might face when using your recommendations
in Questions 1 and 2?
17
ANNEX
ICPAS PE - IMPORTANT DATES AND INFORMATION
ICPAS
EMAIL: profexam@icpas.org.sg | URL: www.icpas.org.sg/pe.asp
1. For First Time Assessment Application Term 1 / Yr 10 Term 2 / Yr 10
(Not Applicable to Existing Candidates)
a) Assessment Application Closing Date 01 Oct 09 01 Apr 10
b) Confirmation Date for Application Status 14 Dec 09 14 Jun 10
2. Module Examination Term 1 / Yr 10 Term 2 / Yr 10
(Only applicable for ICPAS PE Candidates)
a) Module Examination Registration Commencement Date 14 Dec 09 14 Jun 10
b) Module Examination Registration Closing Date 13 Jan 10 14 Jul 10
c) Academic Term Commencement Date 05 Feb 10 01 Aug 10
d) Examination Results Release Date 25 Jun 10 24 Dec 10
Module Examination Dates Term 1 / Yr 10 Term 2 / Yr 10
FRD - Financial Reporting & Disclosure 10 May 10 08 Nov 10
CBS - Corporate & Business Strategy 11 May 10 09 Nov 10
AUD - Audit & Assurance 12 May 10 10 Nov 10
LCG - Company Law & Corporate Governance 13 May 10 11 Nov 10
ATX - Advanced Taxation 14 May 10 12 Nov 10
SAA-GE
EMAIL: paq_tuition@saa.org.sg | URL: www.saa.org.sg/pe.html
3. Preparatory Course for ICPAS PE (Optional) Term 1 / Yr 10 Term 2 / Yr 10
a) Preparatory Course Enrolment Commencement Date 14 Dec 09 14 Jun 10
b) Preparatory Course Early Enrolment Closing Date 05 Feb 10 23 Jul 10
Detailed Information
pp
1. Assessment Application
- Upon confirmation of application status (i.e. the applicant is eligible for entry to PE), payment of first year
Candidate Fee is required. Payment due date is within a month from the approval date.
- Subsequent Annual Candidate Fee will be billed in December (due on 2nd January).
- Active candidates is not required to submit Assessment Application Form during the period of valid candidature
(5 years).
4. Written Examination
- Module examination dates corresponding to enrolled modules are listed in the table above.
- All examinations will commence at 10am and end at 1pm on each of the given dates, unless otherwise stated.
- Results will be released on the stated dates. Candidates are required to log in to their individual account to view
their published results.
Note:
1) ICPAS reserves the rights to amend any of the published date or time in this document without prior notice.
2) Events occuring on dates published in this document that coincide with a weekend / public holiday will be postponed to the
next working day.
3) The latest available information will published on the ICPAS PE website and will supercede all previous disseminated
information. Candidates are strongly encouraged to visit the ICPAS PE website for the latest available information.
4) Important announcements will be published on the ICPAS PE website and / or disseminated via email.
Candidates are required to provide a valid email address and to check the provided email account regularly.
In the event of changes of existing email address, candidates are required to log in to their individual candidate account in the
ICPAS PE website to perform an update
update.
ANNEX 1
Updated May 10
ICPAS PE - IMPORTANT DATES AND INFORMATION
ICPAS
EMAIL: profexam@icpas.org.sg | URL: www.icpas.org.sg/pe.asp
1. For First Time Assessment Application Term 1 / Yr 11 Term 2 / Yr 11
(Not Applicable to Existing Candidates)
a) Assessment Application Closing Date 01 Oct 10 01 Apr 11
b) Confirmation Date for Application Status 15 Dec 10 15 Jun 11
2. Module Examination Term 1 / Yr 11 Term 2 / Yr 11
(Only applicable for ICPAS PE Candidates)
a) Module Examination Registration Commencement Date 15 Dec 10 15 Jun 11
b) Module Examination Registration Closing Date 14 Jan 11 14 Jul 11
c) Academic Term Commencement Date 01 Feb 11 01 Aug 11
d) Examination Results Release Date 24 Jun 11 23 Dec 11
Module Examination Dates Term 1 / Yr 11 Term 2 / Yr 11
FRD - Financial Reporting & Disclosure 09 May 11 07 Nov 11
CBS - Corporate & Business Strategy 10 May 11 08 Nov 11
AUD - Audit & Assurance 11 May 11 09 Nov 11
LCG - Company Law & Corporate Governance 12 May 11 10 Nov 11
ATX - Advanced Taxation 13 May 11 11 Nov 11
SAA-GE
EMAIL: paq_tuition@saa.org.sg | URL: www.saa.org.sg/pe.html
3. Preparatory Course for ICPAS PE (Optional) Term 1 / Yr 11 Term 2 / Yr 11
a) Preparatory Course Enrolment Commencement Date 15 Dec 10 15 Jun 11
b) Preparatory Course Early Enrolment Closing Date 21 Jan 11 22 Jul 11
Detailed Information
1. Assessment Application
pp
- Upon confirmation of application status (i.e. the applicant is eligible for entry to PE), payment of first year
Candidate Fee is required. Payment due date is within a month from the approval date.
- Subsequent Annual Candidate Fee will be billed in December (due on 2nd January).
- Active candidates is not required to submit Assessment Application Form during the period of valid candidature
(5 years).
4. Written Examination
- Module examination dates corresponding to enrolled modules are listed in the table above.
- All examinations will commence at 10am and end at 1pm on each of the given dates, unless otherwise stated.
- Results will be released on the stated dates. Candidates are required to log in to their individual account to view
their published results.
Note:
1) ICPAS reserves the rights to amend any of the published date or time in this document without prior notice.
2) Events occuring on dates published in this document that coincide with a weekend / public holiday will be postponed to the
next working day.
3) The latest available information will published on the ICPAS PE website and will supercede all previous disseminated
information. Candidates are strongly encouraged to visit the ICPAS PE website for the latest available information.
4) Important announcements will be published on the ICPAS PE website and / or disseminated via email.
Candidates are required to provide a valid email address and to check the provided email account regularly.
In the event of changes of existing email address, candidates are required to log in to their individual candidate account in the
ICPAS PE website to perform an update
update.
ANNEX 1
Updated May 10
ICPAS PROFESSIONAL EXAMINATION
Tel 65 6597 5720 | Fax 65 67498879| Email profexam@icpas.org.sg | Webpage http://www.icpas.org.sg/pe.asp
12 Aljunied Road, #03-01, KH Plaza @ Aljunied, Singapore 389801
PE Transaction Form
Please read the “Terms and Conditions” carefully before you proceed to fill up the form.
#
Salutation: ( Dr/ Mr/ Mrs/ Mdm/ Ms)
Name as in NRIC or Passport:
#
(in block letters and underline surname/family name) NRIC/ Fin/ Passport no :
TYPES OF MODULES
FOR OFFICIAL
Candidate Fee AMOUNT
Candidate fee is applicable for all candidates to maintain the candidature. USE
FRD
CBS S$200 (1 module)
AUD S$400 (2 modules)
LCG S$600 (3 modules)
ATX
FOR OFFICIAL
Other Fees
USE
Cheque / Bank Draft No.: _________ payable to ICPAS (Cheque must be submitted together with this form)
Note: VISA / Master / NETS are not available for registration submitted via PE Transaction Form. To pay by VISA / Master / NETS, please
submit the registration form via PE website at www.icpas.org.sg/pe.asp.
DECLARATION
I have read, understood and hereby accept the Terms and Conditions set out in Annex A. I acknowledge that ICPAS
may vary or reverse any decision regarding registration made on the basis of incorrect or incomplete information
provided by me.
ICPAS Professional Examination, 12 Aljunied Road, #03-01, KH Plaza @ Aljunied, Singapore 389801
ICPAS PROFESSIONAL EXAMINATION
Tel 65 6597 5720 | Fax 65 67498879| Email profexam@icpas.org.sg | Webpage http://www.icpas.org.sg/pe.asp
12 Aljunied Road, #03-01, KH Plaza @ Aljunied, Singapore 389801
(F) Fee
(i) All fees quoted are inclusive of GST. Our Institute GST registration number is M4-0001553-8.
(ii) All fees are accurate at time of print. The fees are reviewed periodically and may be revised. ICPAS reserves the right to adjust the
fees without prior notice.
Kindly attached this form with the CBS project (word doc or PDF) and
email to profexam@icpas.org.sg by the due date and time.
CANDIDATE NO(S):
ASSIGNMENT TITLE:
CANDIDATE(S) SIGNATURE:
ANNEX 3
Module: Corporate & Business
Strategy (CBS)
Trainer: Mr Clive Choo
Clive has more than 20 years of working experience in Business Development, Sales &
Marketing, and Corporate Training. He previously held senior managerial positions for
large Japanese and European MNCs, with extensive experiences in the Asian Pacific
business environment. Clive has successfully managed large businesses in this region,
working closely with direct sales force as well as distribution channels.
His areas of expertise include business strategies, managing direct sales force,
distribution channels and establishing dealers’ network. Clive has been consulted by
both for-profit and non-profit organizations in the areas of business planning and
strategies. Besides providing consultancy work, Clive conducts Corporate Training for
various listed companies. He has delivered seminars and courses for many working
professionals and established organizations.
Clive is a Lecturer with Nanyang Business School (NBS), Nanyang Technological
University (NTU) in the Strategy, Management and Organization Division where he
teaches Strategic Management in the final-year of the Business and Accounting degree
programme. Also, he is pursuing PhD in Management.
Other than his passion in academic and business consulting work, Clive serves in
various capacities in Sports and societal work. He is currently serving as a Council
Member for NTU Sports Council. He is active in promoting community sports as a
Grassroot leader. Clive is also a workshop facilitator volunteer in REACH Family
Services Centre, an organization under the Ministry of Community Development,
Youth and Sports.
ANNEX 4
ICPAS PROFESSIONAL EXAMINATION
MAY 2010
INSTRUCTIONS TO CANDIDATES
2. This examination paper has a total of FOURTEEN (14) pages (including this
instruction sheet) comprising the following:
i. Structured Questions - FOUR (4) questions (1 page).
ii. Case – “Caffeine Satisfaction: Rivalry Among the Coffee Shops” (12 pages)
– this has been distributed to candidates prior to examination.
6. Begin your answer to each question on a separate page of the answer book.
ANNEX 5
ICPAS PROFESSIONAL EXAMINATION
Corporate and Business Strategy – May 2010
______________________________________________________________________
All questions are based on the case “Caffeine Satisfaction: Rivalry Among the Coffee
Shops”.
Question 1
Question 2
(i) How does the strategy of Starbucks and Dunkin’ Donuts differ?
(20 marks)
Question 3
Question 4
What recommendations would you have for Allied Domecq (The parent company of
Dunkin Donuts) if they wanted to compete with the major coffee chains (e.g. Starbucks,
Seattle’s Best) head on in the specialty coffee business?
(15 marks)
- END OF PAPER -
- 2-
ANNEX 5
ICPAS PROFESSIONAL EXAMINATION
ANNEX 6
ICPAS PROFESSIONAL EXAMINATION
Corporate and Business Strategy – May 2010
_____________________________________________________________________________________________
Question 1
Defining the relevant market as one for specialty coffee beverages is too narrow. Defining it as a
market for beverages may be too broad. Starting with a definition of the industry as “Retailing
coffee beverages (coffee shops),” then we can proceed to analyze the industry using the five + 1
forces model:
-2-
ANNEX 6
ICPAS PROFESSIONAL EXAMINATION
Corporate and Business Strategy – May 2010
_____________________________________________________________________________________________
oversupply on the market. Product differentiation is low. Coffee chains are large
(much larger than the farms they buy from) and buy in large quantities.
(5 marks)
The second is the power of complementors. While there may not be a complementor
industry to coffee shops, we may consider the complementary products to coffee
beverages (e.g. whole beans in packets, coffee-related equipment, merchandised
items) as an influence on strategies followed in the industry. The complementors also
influence substitutability and thus their power or influence can be rated a high.
On the basis of the above, the overall conclusion would be that the industry is moderately
attractive.
Question 2(i)
The contrast of Starbucks and Dunkin Donuts is revealing. Although both Starbucks and Dunkin’
Donuts sell coffee beverages, their focus, segmentation and basis for differentiation are different.
Differentiation often extends beyond the products and covers everything that influences the way
a consumer derives value. Thus a knowledgeable staff, who can talk about the product, and the
design of the store (which encourage people to linger or provide them with product quickly) are
all part of the differentiation strategy.
Starbucks sees itself as primarily a coffee shop, selling high quality coffee beverages (regular,
latter, espresso, and the) to discerning consumers. Thus, it offers a wide range of flavors, and
types of coffee beverages, with some supplementary products such as pastries, cookies and
biscuits, books and CDS. They wish to create an image of a professional and upscale lifestyle.
Dunkin’ Donuts is designed for the “average Joe”. Coffee accounts for only about 50% of sales
of Dunkin’ Donuts. Although it supplies good quality coffee which has its own following, it is
also in the business of selling bagels, breakfast sandwiches, pastries like doughnuts, and so on in
addition to coffee. The firm is also innovative in coming up with new products and variations on
existing products. While it does not innovate, it adapts quite well.
-3-
ANNEX 6
ICPAS PROFESSIONAL EXAMINATION
Corporate and Business Strategy – May 2010
_____________________________________________________________________________________________
While the above suggests several differences in products and differentiation strategies between
the two, there is a significant segment of the public that would consider them as comparable
options when thinking of a cup of coffee. Hence, in their actions, the two firms also reveal a keen
awareness that they also compete for the same type of customer. Starbucks has introduced a
prepaid card so customers in a hurry can use the card and save the time involved in paying for
their purchase. Dunkin’ Donuts, on the other hand, recognize that some discerning customers
want variations on the delivery of their favorite beverages – hence, it has introduced latte and
espresso, but has automated part of the preparation so that its stores can keep lines moving fast.
These areas of convergence are where its rivalries are the sharpest.
(20 marks)
Question 2(ii)
The expansion of Kripsy Kreme offers a greater challenge to Dunkin Donuts rather than
Starbucks because of the similarity of their formats. Starbucks and Dunkin Donuts are not direct
rivals.
(5 marks)
Question 3
Marks to be given – 1 mark per point identified (up to 2 marks if the point is elaborated
further) – maximum marks for this section: 18 marks
ANNEX 6
ICPAS PROFESSIONAL EXAMINATION
Corporate and Business Strategy – May 2010
_____________________________________________________________________________________________
Strong partnerships with well known brand names such as United Airlines, Barnes &
Noble.
Strong related diversification and partnerships with Dreyers (selling Starbuck’s ice
Cream), Pepsico (bottled Frappacinno) and Kraft (Distribute grounded and whole
Starbucks coffee beans)
Human resources (believes in hiring smart people– experts in various content areas and
experienced middle management from related organizations such as Taco Bell, Wendy’s
and Blockbuster).
Effective and extensive use of technology (– experts in various content areas and
experienced middle management from related organizations such as Taco Bell, Wendy’s
and Blockbuster) .
Strong policies to treat employee well, even going back to purchasing coffee ethically
(under a fair trade program)
In-house team of architects, real estate personnel and construction managers to find the
right locations and create the right structure.
2 marks given if they elaborate on a specific logic that will impact / influence
sustainability (e.g. tacit knowledge, the logic behind VRINE or the 5 traits
mentioned in Wheelen and Hunger)
1 more mark if they integrate the logic behind sustainability with the framework.
For each core strength identified, and elaborated upon, a maximum of 5 marks per
-5-
ANNEX 6
ICPAS PROFESSIONAL EXAMINATION
Corporate and Business Strategy – May 2010
_____________________________________________________________________________________________
strength deemed as sustainable can be given. The maximum marks for this section
would be 20 marks (i.e. up to 3 strengths well elaborated upon to show sustainability
or a combination of marks given for the use of a framework and the logic, together
with elaboration of strengths)
*Note that the total marks for the question will still be capped at 30.
Example of a sustainable competitive advantage using the framework by Wheelen and Hunger:
Strong partnerships with known players such as United Airlines, Barnes & Noble, Pepsico,
Kraft, etc.
a) Durability - The resources required to develop and maintain meaningful relationships
with key partners is something that takes time to be developed and maintained. The fact
that Starbucks have managed to secure and maintain good working relationships with key
players shows durability.
c) Transparency – The processes that govern this strength/capability is very opaque and
competitors are not able to observe how Starbucks formed these partnerships. As such, it
is difficult for them to understand how to go about and erode this advantage.
All 5 points support the notion that the strength of strong partnerships has a decent degree of
sustainability.
Scale and the use of technologies and systems to support growth and scale
(30 marks)
Question 4
The idea here is for candidates to leverage off their knowledge of corporate strategy, while
-6-
ANNEX 6
ICPAS PROFESSIONAL EXAMINATION
Corporate and Business Strategy – May 2010
_____________________________________________________________________________________________
Rebranding Dunkin Donut (or have a spin-off) to focus on coffee – details of the
rebranding can include aspects regarding employee training on coffee and the brewing
process, setting up specific elements of the supply chain, etc (2 marks for the
recommendation, up to 3 more marks for elaboration to a maximum of 5 marks total)
Introduction of a new specialty range of coffee within Dunkin Donut and this can be
pushed towards its other businesses (e.g. under the quick service restaurants) where it is
seen as being of premium quality (2 marks for the suggestion)
Basically, there are many possibility of making meaningful recommendations. The base
guideline for grading is 1 mark for a possible recommendation, 2 marks for a meaningful
recommendation, additional marks for elaboration, up to a maximum of 5 marks for the
recommendation and elaboration, subjected to the question total limit of 15 marks.
(15 marks)
-7-
ANNEX 6
ICPAS PROFESSIONAL EXAMINATION
ANNEX 7
Question 1
Students generally did not seem to have a problem identifying a relevant
framework (e.g. Porter’s forces model) to use in order to determine the
attractiveness of the coffee retailing industry. However, a number did not do an in-
depth analysis, and their rationalization lacked a holistic assessment of the
attractiveness of the coffee retailing industry. A few students also did not use any
framework and this further reduced the comprehensiveness of their analysis.
Question 2
Most students did a comparison and were able to tease out differences between the
strategy used by Starbucks and Dunkin Donuts. However, a lot of them failed to
elaborate on they key characteristics of the differences. In addition, most students
had problems determining the rationale to explain if Krispy Kreme would be a
threat to either Starbucks or Dunkin Donuts.
Question 3
Students were generally able to identify the strengths and capabilities of
Starbucks. However, elaboration of how and why these were strengths and
capabilities were lacking at times. In addition, only the minority used a framework
such as VRIN to determine the sustainability of Starbuck's competitive
advantages.
Question 4
Some students were able to formulate an approach and fundamental logic towards
their recommendations. However, the bulk of students had problems in developing
a basis for their recommendations.
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ANNEX 7