|Perfect Number of Pages to Order||5-10 Pages|
Strategic Management Assignment (MGT3150)
Trimester 1 of 2021 Final Exam
Type of Assessment: Take-Home Exam
50 percent weighting
ULO 1, 2, 3, and 4 were assessed as learning outcomes.
Wednesday, June 16, 2021 at 11:59 p.m. (ASET)
After each question, type your answers and save the file as a Word document. Moodle is required for all submissions. Submissions received after the deadline will not be accepted.
Question 1 (4+4+4+4+4 = 16 points)
The market for big commercial jet aircraft has long been dominated by only two companies: Boeing and Airbus. Boeing jets accounted for 50% of the world’s commercial jet aircraft fleet in early 2012, while Airbus planes accounted for 31%. The global market was divided among numerous smaller competitors, including Embraer of Brazil and Bombardier of Canada, both of which had a 7% stake. The market as a whole is huge and increasing.
Air travel demand has grown at a compounded annual rate of 5% per year since 1980, driving demand for new aircraft. According to Boeing, the global economy would grow at 3.2 percent per year between 2011 and 2031, while airline traffic will grow at 5% per year as more people from emerging economies travel by air for business and pleasure. Clearly, the size of future demand presents a huge profit opportunity for Boeing and Airbus, the two primary incumbents. With five makers rather than two in the market, it appears that rivalry in the narrow-bodied portion of the business will heat up, perhaps lowering prices and earnings for the main two incumbents.
(Continue reading on the next page)
a) Explain why only two players can profitably compete in the wide-body section of the major commercial jet aircraft business at the moment. What does your response mean in terms of entrance obstacles into this market? (4 points)
b) Are the entrance obstacles for the narrow-bodied sector and the wide-bodied segment the same? Give an explanation for your response. (4 points)
c) What would your long-term development strategy be if you were a new entrant into the narrow-bodied business, as Comac and Bombardier are? (4 points)
d) What can Boeing and Airbus do to discourage new entrants into the business and/or keep them confined to the lower end of the market (smaller, narrow-body planes)? (4 points)
Question 2 (9 points = 3 + 3 + 3).
a) When do you think a company’s competitive edge will last the longest? (3 points)
b) Is it conceivable for a corporation to be the lowest-cost producer in its industry while still producing the best valuable product for customers? Discuss. (3 points)
c) Why is it critical to comprehend the factors that influence profitability as measured by return on invested capital? (3 points)
Question 3 (10 points = 3 + 4 + 3).
a) Under what circumstances may horizontal integration be incompatible with the goal of profit maximization? (3 points)
b) How does the internal value chain of a company differ from the industry value chain? What is the connection between vertical integration and the value chain of an industry? (4 points)
b) What activities should a corporation outsource to independent providers in order to create value? What are the dangers of outsourcing these functions? (3 points)
Question 4 (four plus eight plus three equals fifteen points)
More than 75% of the world’s population used mobile phones in 2012, with 80% of those accessing the mobile Web. Mobile payment systems had the potential to allow all of these users to conduct financial transactions on their phones in the same way that they would on their personal computers. Although browsing the web on a mobile device is similar to doing it on a laptop, there was no popular mobile payment mechanism in place at the time. Near Field Communication (NFC) chips for smartphones have been developed by leading companies to facilitate wireless transactions and permit purchase without contact. Customers’ information was transmitted via a downloaded application and the web by companies that did not require NFC chips. Customers could simply enter their phone numbers and a PIN number or use their PayPal-issued card to complete payments, giving companies like PayPal a clear edge.
Interesting mobile banking alternatives were gaining hold even faster in other regions of the world where mobile phones are utilized more than banks. As a result, the opportunity to provide such people with quick and low-cost money transfers is considerable. Inter-bank is India’s most popular system. The National Payments Corporation of India created the Mobile Payment Service (NPCI). This approach assigns each person a unique identity that is linked to his or her bank account.
With such far-reaching implications, mobile payments were seen as a once-in-a-lifetime possibility by 2013. It has the potential to boost e-commerce, smartphone use, and worldwide financial services. Obstacles still persist, however, due to the incompatibility of numerous mobile payment systems.
a) What are the benefits and drawbacks of consumers and businesses adopting mobile banking systems? (4 points)
b) What are the key factors that influence whether a) consumers, b) merchants, c) banks, and d) credit card firms find certain mobile payment methods appealing or unappealing? (8 points)
c) What factors are most likely to influence the success of mobile banking systems? (3 points)
THE EXAM PAPER COMES TO AN END
T1 2021 1 MGT3150 Final Exam