3.1 In your own words, explain the aim of Porters Five Forces Model. (4 marks)

3.2 In your own words, briefly discuss six (6) characteristics of strategic decisions. (7 marks)

3.3 Read the case study below and answer the questions that follow: E-tech Ltd E-tech Ltd is a South African company listed on the Johannesburg Stock Exchange (JSE). They have a portfolio of over 380 products and are considered a successful company within the South African electronic goods retail & e-marketplace. After much consideration, the board of E-tech Ltd has decided that the priority long-term goal is to delist from the JSE due to the restrictions and costs associated with being a listed company and instead list with AltX (an alternative exchange within the JSE with fewer restrictions and expenses). E-tech Ltd has a reputation for its exceptional product offerings and availability when meeting South African consumer trends. E-tech Ltd is always ahead of the curve regarding the latest colours, designs and software. But, as a result of the changing landscape brought about by the 4IR, AI, Robotics and the recent advent of the Russian-Ukraine War, E-tech Ltd has experienced significant difficulties in managing its supply network, and as a result, a lack of control over their relationships with their supplier base. It has forced E-tech and its suppliers to reconsider and realign their strategies with their organisational vision and mission statement. As a result, relationships were lost, and new ones were formed in due time. In addition to the abovementioned outages, the companys closest rivals had recently headhunted the head of your organisation, Dr Schalk Grobler, who has been with the organisation for over 16 years. Dr Schalk Grobler has joined Innotecx Ltd (the companys closest rivals) as part of their research and design department. The takeover of Dr Grobler will place Innotecx Ltd at the very top of the South African electronic goods marketspace, possibly encompassing E-techs market share that is currently in the first spot. He is the competitive edge the company has been looking for. It is important to note that Innotecx Ltd and E-tech Ltd form part of an oligopoly market system. Newly appointed CEO of E-tech Ltd, Leo Ndlovu, is here to take action in the form of redress and transformation. He will be responsible for the smooth and successful delisting of the company from the JSE, and the move over to AltX, as part of the long term strategy for the organisation. In addition, Leo will need to ensure the organisational strategy is in line with the organisational goals. Leo Ndlovu decided, as a first action, that he will develop a new set of principles for the company and company culture, focused on: Quality Flexibility Sustainability Durability Innovation Disruption These principles are aimed and aligned with the outcomes set out in the countries National Development Plan (NDP) to ensure there is coherence and strategic alignment with laws, regulations and rules, internally and externally of the organisation. After much consideration and market research, Leo Ndlovu decided its time for E-tech Ltd to diversify its product offerings by entering the export market space. The decision has come as a result of research and development initiatives, where E-tech discovered oil boreholes, with unlimited capacity outside the borders of Mozambique. The exports of important oil minerals will commence straight away, allowing E-tech to diversify its product offering, and enter into a new market space, which provides both new opportunities and threats for the organisation. It is anticipated that E-techs new growth strategy initiative will increase their market value, in rand terms, by 200%, by 2030. To compete in this new marketplace, there is a need for competent, reliable, innovative and adaptable employees, since they are the most important resource in the organisation and are regarded as the lifeblood of the organisation - without people there are no operations. Within the recruitment process currently ongoing, E-tech is in search of employees who has a unique and diverse set of capabilities, each crafted and experienced within their own diverse field of study/expertise. In order to achieve the goal of diversification over industry rivals Innotecx Ltd, IOEC and Contour logistics ZA and to achieve a competitive advantage, E-tech needs managerial leadership filters, which comes in the form of organisational structures, mechanisms, concepts, and tools, through a collective approach. Lastly, Leo has instructed the organisational quality control team to measure employee and organisational performance on a regular basis (weekly), to ensure they remain committed to their objectives, vision and mission statement. Employee productivity will be measured in the form of Key Performance Indicators (KPIs) and organisational productivity will be measured against market share. The preceding is to ensure E-tech does not deviate from its planning function. *Hypothetical scenario. Strategy can be broken down into six (6) component questions:

Where is the business trying to get in the long term? (2 marks)

Which markets should the business compete in? (2 marks)

How can the business perform better than its competitors? (8 marks)

Which resources are required to compete? (2 marks)

Which external environmental factors affect the businesss ability to compete? (4 marks)

What are the values and expectations of those with power in and around the business? (2 marks) Required: Provide examples from the case study to answer each of the six (6) component questions listed above. Be guided by the marking allocation listed above. (20 marks)