FINAL EXAMINATION / PEPERIKSAAN AKHIR

SEMESTER JUN – SESSION 2022 / 2023 / SEMESTER JUN – SESI 2022 / 2023

PROFESSIONAL MASTER IN BUSINESS ADMINISTRATION

COURSE CODE : MMEH 1943

KOD KURSUS

COURSE NAME : STRATEGIC MANAGEMENT

NAMA KURSUS

DURATION : 2 HOURS (EXAMINATION) & 2HOURS (SUBMISSION

TEMPOH TIME)
2 JAM (PEPERIKSAAN) & 2 JAM ( MASA PENGHANTARAN)

DATE & TIME : 04 SEPTEMBER 2022

TARIKH & MASA (9:00 PM-11:00AM) EXAM TIME
(11:00 AM – 01:00 PM) SUBMISSION TIME

LECTURER’S NAME : MR FRANKLYN

NAMA PENSYARAH

MARKS : 40 MARKS/ 40 MARKAH

MARKAH

INSTRUCTION / ARAHAN:
1. Answer ALL questions on the answer sheet.
Jawab SEMUA soalan pada kertas jawapan.
2. Write your name, matric no., identity card no., course code, course name, section no. and
lecturer’s name on the first page (in the upper left corner) and every page thereafter on the answer
sheet.
Tulis nama anda, no. matrik, no. kad pengenalan, kod kursus, nama kursus, no. seksyen dan nama
pensyarah pada muka surat pertama (penjuru kiri atas) kertas jawapan dan pada setiap muka
surat jawapan.
3. Each answer sheet must have a page number written at the bottom right corner.
Setiap helai kertas jawapan mesti ditulis nombor muka surat pada bahagian bawah penjuru
kanan.
4. Answers should be handwritten, neat and clear.
Jawapan hendaklah ditulis tangan, kemas dan jelas menggunakan huruf cerai.

WARNING / AMARAN
Students caught copying / cheating during the examination will be liable for disciplinary actions and
may recommend the student to be expelled from sitting for exam.
Pelajar yang ditangkap meniru / menipu semasa peperiksaan akan dikenakan tindakan disiplin dan
boleh mengesyorkan pelajar diusir dari menduduki peperiksaan.

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 This examination paper consists of 7 pages including the cover.
Kertas soalan ini mengandungi 7 muka surat termasuk kulit hadapan.

Answer all questions.

Jawab semua soalan.

FINAL EXAMINATION / PEPERIKSAAN AKHIR

PROJECT PAPER- PROFESSIONAL DIPLOMA IN MANAGEMENT, UTMSPACE
SECTION A 10 MARKS
BAHAGIAN A – 10 MARKAH

INSTRUCTION: ANSWER ALL QUESTIONS

ARAHAN: JAWAB SEMUA SOALAN

Question 1

1. The purpose of strategic planning is to set overall goals for your business and to develop
a plan to achieve them. In view of this, explain what is a Business Level Strategies?
(10 marks)

Tujuan perancangan strategik adalah untuk menetapkan matlamat keseluruhan untuk

perniagaan anda dan untuk membangunkan rancangan untuk mencapainya. Sehubungan
dengan itu, terangkan apakah itu Strategi Tahap Perniagaan?
(10 markah)

Question 2

Organizational capabilities are closely related to organizational competitive advantage. How

do an organizations develop their organizational capabilities to ensure sustained
competitive advantage?
(10 marks)
Keupayaan organisasi berkait rapat dengan kelebihan daya saing organisasi.
Bagaimanakah sesebuah organisasi membangunkan keupayaan organisasi mereka untuk
memastikan kelebihan daya saing yang mampan?

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 SECTION B 20 MARKS: CASE STUDY
BAHAGIAN B 20 MARKAH: PENILAIAN KES

INSTRUCTION :ANSWER ALL QUESTIONS

ARAHAN : JAWAB SEMUA SOALAN

How Starbuck’s Growth Destroyed Brand Value

Starbuck’s announcement that it will close 600 stores in the US is a long overdue admission
that there are limits to growth.

In February 2007, a leaked internal memo written by founder Howard Schultz showed that
he recognized the problem that his own growth strategy had created: “Stores no longer have
the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood
store.” Starbucks tried to add value through innovation, offering wi-fi service, creating and
selling its own music. More recently, Starbucks attempted to put the focus back on coffee,
revitalizing the quality of its standard beverages. But none of these moves addressed the
fundamental problem: Starbucks is a mass brand attempting to command a premium price
for an experience that is no longer special. Either you have to cut price (and that implies a
commensurate cut in the cost structure) or you have to cut distribution to restore the
exclusivity of the brand. Expect the 600 store closings to be the first of a series of
downsizing announcements. Sometimes, in the world of marketing, less is more.

Schultz sought, admirably, to bring good coffee and the Italian coffee house experience to
the American mass market. Wall Street bought into the vision of Starbucks as the “third
place” after home and work. New store openings and new product launches fueled the stock
price. But sooner or later chasing quarterly earnings growth targets undermined the
Starbucks brand in three ways.

First, the early adopters who valued the club-like atmosphere of relaxing over a quality cup
of coffee found themselves in a minority. To grow, Starbucks increasingly appealed to grab
and go customers for whom service meant speed of order delivery rather than recognition by
and conversation with a barista. Starbucks introduced new store formats like Express to try
to cater to this second segment without undermining the first. But many Starbucks veterans
have now switched to Peets, Caribou and other more exclusive brands.

Second, Starbucks introduced many new products to broaden its appeal. These new
products undercut the integrity of the Starbucks brand for coffee purists. They also
challenged the baristas who had to wrestle with an ever-more-complicated menu of drinks.
With over half of customers customizing their drinks, baristas hired for their social skills and
passion for coffee, no longer had time to dialogue with customers. The brand experience
declined as waiting times increased. Moreover, the price premium for a Starbucks coffee
seemed less justifiable
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 for grab and go customers as McDonald’s and Dunkin Donuts improved their coffee offerings
at much lower prices.

Third, opening new stores and launching a blizzard of new products create only superficial
growth. Such strategies take top management’s eye off of improving same store sales year-
on-year. This is the heavy lifting of retailing, where a local store manager has to earn brand
loyalty and increase purchase frequency in his neighborhood one customer at a time. That
store manager’s efforts are undercut when additional stores are opened nearby. Eventually,
the point of saturation is reached and cannibalization of existing store sales undermines not
just brand health but also manager morale.

None of this need have happened if Starbucks had stayed private and grown at a more
controlled pace. To continue to be a premium-priced brand while trading as a public
company is very challenging. Tiffany faces a similar problem. That’s why many luxury brands

like Prada remain family businesses or are controlled by private investors. They can stay
small, exclusive and premium-priced by limiting their distribution to selected stores in the
major international cities.

Source: John A. Quelch, Harvard Business Review

Bagaimana Pertumbuhan Starbuck Memusnahkan Nilai Jenama

Pengumuman Starbuck bahawa ia akan menutup 600 kedai di AS adalah pengakuan yang

sudah lama tertunggak bahawa terdapat had untuk pertumbuhan.

Pada Februari 2007, memo dalaman yang bocor yang ditulis oleh pengasas Howard Schultz

menunjukkan bahawa dia menyedari masalah yang dicipta oleh strategi pertumbuhannya

sendiri: "Kedai tidak lagi mempunyai jiwa masa lalu dan mencerminkan rangkaian kedai

berbanding perasaan hangat seorang kedai kejiranan.” Starbucks cuba menambah nilai

melalui inovasi, menawarkan perkhidmatan wi-fi, mencipta dan menjual muziknya sendiri.

Baru-baru ini, Starbucks cuba untuk meletakkan kembali fokus pada kopi, menggiatkan

semula kualiti minuman standardnya. Tetapi tiada satu pun daripada langkah ini menangani

masalah asas: Starbucks ialah jenama besar-besaran yang cuba mendapatkan harga

premium untuk pengalaman yang tidak lagi istimewa. Sama ada anda perlu mengurangkan

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 harga (dan itu membayangkan pemotongan yang setimpal dalam struktur kos) atau anda

perlu mengurangkan pengedaran untuk memulihkan eksklusiviti jenama. Jangkakan 600

penutupan kedai menjadi yang pertama daripada siri pengumuman pengecilan saiz.

Kadang-kadang, dalam dunia pemasaran, less is more.

Schultz berusaha, dengan mengagumkan, untuk membawa kopi yang enak dan

pengalaman kedai kopi Itali ke pasaran besar-besaran Amerika. Wall Street membeli visi

Starbucks sebagai "tempat ketiga" selepas rumah dan kerja. Pembukaan kedai baharu dan

pelancaran produk baharu menyemarakkan harga saham. Tetapi lambat laun mengejar

sasaran pertumbuhan pendapatan suku tahunan menjejaskan jenama Starbucks dalam tiga

cara.

Pertama, pengguna awal yang menghargai suasana santai seperti kelab sambil menikmati

secawan kopi berkualiti mendapati diri mereka dalam minoriti. Untuk berkembang,

Starbucks semakin merayu untuk merebut dan pergi pelanggan yang perkhidmatannya

bermaksud kelajuan penghantaran pesanan dan bukannya pengiktirafan oleh dan perbualan

dengan barista. Starbucks memperkenalkan format kedai baharu seperti Express untuk

cuba memenuhi segmen kedua ini tanpa menjejaskan segmen pertama. Tetapi ramai

veteran Starbucks kini telah beralih kepada Peets, Caribou dan jenama lain yang lebih

eksklusif.

Kedua, Starbucks memperkenalkan banyak produk baharu untuk meluaskan daya

tarikannya. Produk baharu ini menjejaskan integriti jenama Starbucks untuk penulen kopi.

Mereka juga mencabar barista yang terpaksa bergelut dengan menu minuman yang

semakin rumit. Dengan lebih separuh daripada pelanggan menyesuaikan minuman mereka,

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 barista yang diupah untuk kemahiran sosial dan minat mereka terhadap kopi, tidak lagi

mempunyai masa untuk berdialog dengan pelanggan. Pengalaman jenama merosot apabila

masa menunggu

meningkat. Lebih-lebih lagi, harga premium untuk kopi Starbucks nampaknya kurang wajar

untuk pelanggan grab and go kerana McDonald's dan Dunkin Donuts menambah baik

tawaran kopi mereka pada harga yang jauh lebih rendah.

Ketiga, membuka kedai baharu dan melancarkan ribut salji produk baharu mencipta

pertumbuhan yang cetek sahaja. Strategi sedemikian mengambil perhatian pengurusan

atasan untuk meningkatkan jualan kedai yang sama tahun ke tahun. Ini adalah tugas berat

peruncitan, di mana pengurus kedai tempatan perlu memperoleh kesetiaan jenama dan

meningkatkan kekerapan pembelian di kawasan kejiranannya seorang pelanggan pada satu

masa. Usaha pengurus kedai itu dikurangkan apabila kedai tambahan dibuka berdekatan.

Akhirnya, titik tepu dicapai dan kanibalisasi jualan kedai sedia ada menjejaskan bukan

sahaja kesihatan jenama tetapi juga moral pengurus.

Tiada keperluan ini berlaku jika Starbucks kekal peribadi dan berkembang pada kadar yang

lebih terkawal. Untuk terus menjadi jenama berharga premium sambil berdagang sebagai

syarikat awam adalah sangat mencabar. Tiffany menghadapi masalah yang sama. Itulah

sebabnya banyak jenama mewah

seperti Prada kekal sebagai perniagaan keluarga atau dikawal oleh pelabur swasta. Mereka

boleh kekal kecil, eksklusif dan berharga premium dengan mengehadkan pengedaran

mereka kepada kedai terpilih di bandar antarabangsa utama.

Sumber: John A. Quelch, Kajian Perniagaan Harvard

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 Question 3

Formulate the vision and mission statement that best describes Starbucks.

Vision statement describes what the organization or company wants to achieve in the future.

At least 5 points with explanation.

[Total: 10 marks]

Merumuskan pernyataan visi dan misi yang paling menggambarkan Starbucks.

Pernyataan visi menerangkan perkara yang ingin dicapai oleh organisasi atau syarikat pada

masa hadapan.

Sekurang-kurangnya 5 mata dengan penjelasan.

Question 4

Identify the major stakeholders of Starbucks pertaining to the case study.

[Total: 10 marks]

Kenal pasti pihak berkepentingan utama Starbucks yang berkaitan dengan kajian kes.

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