FALL 2018 EXAMINATIONS @ ICMA STRATEGIC WUSTRATECIG LEVEL @ Pakistan oan Friday, the 22nd February 2019 Extra Reading 15 Minutes funn e {Minute Maximum Marks: 100 Roll No, @ Attempt all questions. (i) Write your Roll No, in the space provided above. (ii) Answers must be neat, relevant and brief. Itis not necessary to maintain the sequence. (iv) Use of non-programmable scientific calculators of any model is allowed. (¥) Read the instructions printed inside the top cover of answer script CAREFULLY before attempting the paper. (vi) In marking the question paper, the examiners take into account clarity of exposition, logic of arguments, effective presentation, language and use of clear diagrany chart, where appropriate. (vil) DO NOT write your Name, Reg, No. or Roll No., or any irrelevant information inside the answer script (vil) Question Paper must be returned to invigilator before leaving the examination hall. DURING EXTRA READING TIME, WRITING IS STRICTLY PROHIBITED IN THE ANSWER SCRIPT. EXAMINEES ARE ADVISED TO MANAGE SOLUTIONS/ ANSWERS WITHIN PROPOSED TIME Question No. 4 Proposed Time: 45 Min. | Total Marks : 24 A USA based Food Corporation (FC) is a popular global chicken restaurant chain, with 12,000 restaurants in more than 100 countries and territories around the world, where approximately eight million customers are served everyday. FC Pakistan operates over 80 restaurants/ outlets in almost 16 major cities of the country. In view of the increasing outlets in the prominent metropolitan cities, the need was felt to link all the outlets on one network. Additionally, due to increasing traffic congestions and convenience eating, there were increasing expectations to provide home-delivery services as well. It was sometime in 2003 when FC Pakistan took initiative to connect all outlets on the network and to start home-delivery services. This was major step towards online food services and to monitor sales of nationwide outlets. It was planned to connect the sales with efficient supply chain for timely and fresh availability of food ingredients FC's requirements clearly pointed to the need for a local partner who could address both these areas simultaneously, at the same time ensuring round-the-clock support. AWN Tech, with its focused business lines of Consulting, Outsourcing and Technology, became FC's partner of choice after a mutual agreement. AWN Tech’s solution provides FC with: * Call centre facility and infrastructure * Order Delivery Software + Comprehensive reporting solution AWN Tech's approach involved connecting FC’s outlets in Karachi via a DSL connection and also linking them to the head office. Customers calling FC have their calls directed to the call centre at AWN Tech's premises. This facility is powered by technology from Acaya, world leader in contact centre. Initially, 20 Customer Service Representatives (CSR) were available to receive calls. CSR take the order and coordinate electronically with the respective outlet, at the same time recording the order in the database through the call centre’s Order Delivery Software. FC's Karachi head office receives a daily update of their CSR performance and call reports. Additionally, they can retrieve sales and financial reports as and when needed FC's customers have benefited immensely from the home-delivery service since the inception of the FC call centre. Service levels of the facility are superior to levels observed at similar setups. Performance Indicators FC's Service Levels Average speed of answer (seconds) 141 Average monthly service level 99% All trunk busy status ° Abandoned calls 0.4%. The call centre has added significant value to FC's operations in Karachi by linking consumers directly with the fast-food chain. CSR start receiving home-delivery orders from consumers as early as 09:00 am till they close at 02:00 am. The management acknowledges the call centre's role in FC's increasing sales. Surat 2016 10f3 Marks PTOBoth Call Centre and Mobile Application Home-Delivery systems made a major impact on dine-i and takeaway business which is continue to decline. This is the reason that there is stagnancy in expansion of physical outlets. Required (a)_ In today's business, use of information technology plays a key role in overall success including profitability and customers’ satisfaction. Discuss SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of FC's Call Centre’s Home-Delivery service. (b) Discuss the following four system of ordering pattems of FC in the light of Boston Consulting Group (BCG) matrix and the pattem in which FC need to penetrate and retrench (i) Home-Delivery through own Call Centre’s Order Delivery System Home-Delivery through own Mobile Applications Home-Delivery through online food services iv) Dine-in and takeaway from FC Restaurants/ Outlets (i Question No. 2 Proposed Time: 30 Min. | Total Marks : 16 In the case of acquisitions and mergers in Pakistan, though at very low level compared to recent global activity, foreign companies/ investors and well-performing domestic groups that have reached saturation in a particular type of business are looking to diversity, through acquisitions and joint ventures and are seen making decisions more on a country’s vision rather than a simple opportunity. Within the domestic market, there is a strong desire to diversify through the acquisition of existing enterprises. Many professionally run corporations have acquired business volumes, scale and entrepreneurial ability to qualify themselves for joint venture partnerships with multinationals. Required: (a) Discuss any four potential benefits of merging with or acquiring another company. (b) Discuss any four key reasons of failure of mergers and acquisitions. (c) Discuss any four motives behind proliferation of mergers. (4) Why a leveraged buyout (LBO) is a better option than hostile takeover? Question No. 3 Proposed Time : 30 Min. | Total Marks : 1 (a) Strategy formation is not just a task for top Executives. Middle and lower level management also must be involved in the strategic planning process to the extent possible. Enlist and explain briefly the strategies levels works in: (i) Large firms i) Small firms (b) If a company has Rs. 10 million to spend on a new strategy and is considering market development versus product development. What determining factors would be most important to consider? Question No. 4 Proposed Time: 20 Min. | Total Marks : 13 In the implementation of strategies, setting ‘annual objectives’ is the major area for organization's progress. It is supported by strategies related to policies, resource allocation, managing conflicts, structure, performance appraisal, change management, supportive culture, production and operations, and human resource. Required: (a) Why setting annual objectives are important for any company? (b) Briefly discuss significance of policies to support annual objectives. (c) Which four types of resources are important to achieve set objectives? (d) While managing conflicts during difference of opinion, how Diffusion Approach can better support the organization's objectives? SMF 2018 203 Marks 08 04 04 04 04 04 04 04 04 07 09 04 03 03 03Question No. 5 Proposed Time: 30 Min. | Total Marks : 16 A Textiles (Pvt. Ltd. was established in 1990 at Lahore, Pakistan. It was one of the first composite vertically integrated knitwear manufacturing units in Pakistan, which received ISO.9001 and ISO 14001 certifications. It had the distinguished honour of being first knitwear company in Pakistan to be awarded WRAP (Worldwide Responsible Accredited Production) certificate. The company owned and operated production composite facilities. At that time, the total production capacity was 18,000 dozens per month. They were into 100% export to USA, UK and Canada. The numbers of employees were more than 1,000. They were implementing an integrated management system that covers the requirements of ISO 9001, ISO 14001 and WRAP standards. Since few years, the company is facing productivity issues and achievements of quality and targets became a major challenge. As qualitative productivity become indispensable for export oriented organizations, the company decided to approach professional consultant to diagnose the problems. The consultant identified that the company was encountering following problems: 1. Low productivity machine and labour 2. Production targets were not achieved 3. Problems in the production process (reworks, wastages, etc.) 4. Problems in the planning process 5. Lack of team work and sense of responsibilities among staff 6. _ Improper organizational structure 7. Lack of training and sense of Total Quality Management (TQM) among staff 8. _ Lack of knowledge on changing intemational customers’ preferences for quality Required: Discuss the following in the light of Strategy-Evaluation Framework for A Textiles (Pvt) Ltd (a) Based on stated problems, identify key functional areas or departments that need to be focused while reviewing bases of strategy. (b) While measuring organizational performance, there can be many quantitative and qualitative factors which may be assessed on monthly, quarterly, annually or any periodical basis. Specify three critical quantitative intemal and extemal comparisons to measure organizational performance. (c) Discuss any four characteristics of an effective evaluation system, (d) What possible corrective measures are required? Question No. 6 Proposed Time: 25 Min. | Total Marks : 15 (a) What is the goal of risk assessment? (b) Briefly explain the following (i) Credit) Counterparty Risk (ii) Operational Risk (iii) Transaction Risk (iv) Interest Rate Risk THE END SMF 2018 3 of3 Marks 04 03 04 05 03 03 03 03 03