MNG3701/101/3/2016 Tutorial Letter 101/3/2016 Strategic Planning MNG3701 Semesters 1 and 2 Department of Business Management IMPORTANT INFORMATION: Please activate your myUnisa and myLife email addresses and ensure you have regular access to the myUnisa module site, MNG3701-2016-S1-S2, as well as your group site. Note: Since this is an online module, it is available on myUnisa. However, in order to support you in your learning process, you will also receive some study material in a printed format. MNG3701/101 CONTENTS 1 INTRODUCTION .......................................................................................................................... 3 2 PURPOSE OF AND OUTCOMES FOR THE MODULE................................................................ 5 2.1 Purpose ........................................................................................................................................ 5 2.2 Specific outcomes and assessment criteria .................................................................................. 5 3 CONTACT DETAILS .................................................................................................................... 8 3.1 Lecturers....................................................................................................................................... 8 3.2 Department ................................................................................................................................... 9 3.3 University ...................................................................................................................................... 9 4 MODULE-RELATED RESOURCES ........................................................................................... 10 4.1 Joining myUnisa ......................................................................................................................... 10 4.2 Printed support materials ............................................................................................................ 10 4.3 The prescribed textbook.............................................................................................................. 10 4.4 Online tutorials at Unisa .............................................................................................................. 10 5 MODULE-SPECIFIC APPROACH ............................................................................................. 11 5.1 Blended approach ....................................................................................................................... 11 6 ASSESSMENT ........................................................................................................................... 12 6.1 Assessment plan ........................................................................................................................ 12 6.2 Submission of assignments ........................................................................................................ 13 6.3 Assignments guidelines .............................................................................................................. 14 7 SEMESTER MARK AND THE EXAMINATION .......................................................................... 17 8 OTHER ASSESSMENT METHODS ........................................................................................... 17 9 EXAMINATION ........................................................................................................................... 18 9.1 Format of the examination .......................................................................................................... 18 10 FREQUENTLY ASKED QUESTIONS (FAQs) ............................................................................ 18 11 CONCLUSION............................................................................................................................ 19 ANNEXURE A: CASE STUDY: MARUTI SUZUKI - Managing competition ....................................... 20 ANNEXURE B: COMPULSORY ASSIGNMENT 01 FOR 2016 - SEMESTER 1 ................................... 23 ANNEXURE C: COMPULSORY ASSIGNMENT 02 FOR 2016 - SEMESTER 1 ................................... 25 ANNEXURE D: COMPULSORY ASSIGNMENT 01 FOR 2016 - SEMESTER 2 ................................... 27 ANNEXURE E: COMPULSORY ASSIGNMENT 02 FOR 2016 - SEMESTER 2 ................................... 29 ANNEXURE F: DECLARATION STATEMENT...................................................................................... 31 Please note: Strategic Planning is a semester and not a year module. You will be enrolled for either semester 1 or semester 2. Kindly ensure that you complete the correct assignments for the semester for which you have enrolled. 2 MNG3701/101 1 INTRODUCTION Dear Student Welcome to the Strategic Planning module of the 2016 academic year. We trust that you will find this module both interesting and valuable, and that it will contribute to your personal and professional development. Strategic planning is an exciting field of study. It focuses on choosing effective strategies that balance the organisation's resources, capabilities, values and goals with its external environment. Managers of strategy are thus responsible for establishing a clear strategic direction for the organisation, ensuring that the organisation reaches its goals through the creation of strong competitive positions, and implementing the strategy in such a way that the organisation's architecture and activities are synergistically integrated with a view to ensuring efficiency. As you may be aware, the contemporary business environment is characterised by unpredictable revolutionary change and complexity, and as a result, having a competitive advantage in the globalised world of today is no guarantee of success tomorrow. Furthermore, organisations also need to be sustainable and good corporate citizens and ensure that they have good corporate governance practices in place. In this module you will learn the art of strategic planning in a complex business environment. As such, you will be referred to strategy formulation in individual business organisations in both the private and public sectors. We hope that you will gain valuable theoretical knowledge and have the opportunity to apply strategic management concepts in real business contexts. As this is a third-year module, we incorporate contemporary strategic management content using the latest resources in your study material. In addition, you will be introduced to case studies in your formative assessments (assignments) and the same will apply with your summative assessment (examination). It is important to note that Strategic Management consists of two modules: Strategic Planning (MNG3701) and Strategy Implementation and Control (MNG3702). This module, MNG3701, precedes MNG3702, which means that MNG3702 builds on this module. Strategic Planning focuses on all the issues involved in strategy formulation, on the other hand, Strategy Implementation and Control involves the execution of the strategic plan, as well as effective strategy evaluation and control. This tutorial letter is the first tutorial letter for this module. The main aim of this tutorial letter is to:  introduce you to the concepts of strategy, strategic management and strategic planning;  introduce you to the learning outcomes that you need to master by the end of the semester as stated in section 2.2;  provide information on the programme and our approach to this module;  provide information on the requisite learning materials and tutorial matter;  inform you about your lecturers and their contact information; and 3 MNG3701/101  list the compulsory assignments that have to be submitted during the semester, as well as the self-assessment assignments that you have to attempt on your own. This Tutorial Letter (TL101) contains important information on the module outcomes and the learning units for this module. It also provides essential information on the prescribed textbook, and how to obtain it. It is vital for you to read this tutorial letter carefully and to use it in conjunction with the prescribed textbook and the learning guide. Throughout the course of the semester you will receive a number of tutorial letters. These tutorial letters will contain crucial information on the assignments and other issues, which may evolve during the semester. Certain tutorial letters will contain model answers, which provide feedback on the assignments, improvement areas that you need to consider and how to communicate with the University. Remember, before you schedule a meeting or pick up the telephone, first consult the brochure, my Studies @ Unisa, myUnisa, and this tutorial letter (TL101). You may be pleasantly surprised to find that one of these three resources will contain the answer you are looking for. Should you still have a query, you are most welcome to contact us for assistance. Most importantly should you have any academic queries, do not hesitate to contact your e-tutors or us and we will work together to clarify your understanding of MNG3701. Since this is a blended module comprising of both printed and online materials, it will be beneficial for you to use myUnisa to study and complete the learning activities for this module. You also need to visit the websites on myUnisa for MNG3701 regularly. Depending on your registration period, the websites for your module are MNG3701-15-S1 or MNG3701-15-S2, for the first and second semesters, respectively. We wish you every success in your academic journey and we are looking forward to meeting you on the myUnisa discussion forum. 4 MNG3701/101 2 2.1 PURPOSE OF AND OUTCOMES FOR THE MODULE Purpose After completion of this module students are expected to critically evaluate the competitive strategic choices of a business and explain the complexity of these processes in dynamic and changing environments. This module focuses on strategic planning in a complex, volatile and increasingly competitive business environment. As such, you will be referred to strategy formulation in single business organisations in both the private and public sectors. 2.2 Specific outcomes and assessment criteria As a student, there are several outcomes that you need to master on completion of the module by the end of the semester. These outcomes are stated in each assessment criterion as stated below: Specific outcome 1: Explain strategic management as an innovative approach to managing organisations. Assessment criteria  Define strategy, strategic planning and strategic management.  Illustrate and explain the strategic management process.  Explain the rationale for new perspectives on strategy.  Explain the nature of strategic decisions.  Describe the different levels of strategy in organisations.  Explain the importance, benefits and risks of strategy.  Describe the tests for a winning strategy. Specific outcome 2: Have a sound understanding of and insight into the traditional process perspective, as well as the more recent strategy-as-practice approach to strategic management, strategising and the role of strategists in strategic management. Assessment criteria  Explain the traditional process perspective on strategic management.  Explain the importance of strategic thinking and strategic direction setting in strategic planning and strategic management.  Criticise the traditional process perspective on strategic management.  Differentiate meaningfully between deliberate and emergent strategies as a basis for strategic decision-making and strategising.  Explain strategy-as-practice as an effective approach to managing new strategic realities.  Explain the concept of strategising and the role of strategists and managers in the context of strategy-as-practice. 5 MNG3701/101 Specific outcome 3: Explain the role and strategic importance of analysing an organisation's broad or macro-environment and its task or industry environment as part of its strategic planning process. Assessment criteria  Explain the structure of the external environment that organisations have to deal with.  Explain the strategic importance of analysing the external environment.  Discuss the relevant macro-environmental factors and forces.  Explain the need for macro-environmental analysis in strategy formulation.  Explain the various methods for macro-environmental analysis.  Explain the term "industry" in the context of the external environment.  Analyse the structure, dynamics and attractiveness of industries.  Identify the impact of industry forces on profitability.  Describe the importance of and approach to competitor analysis. Specific outcome 4: Have a sound understanding of the internal analysis of an organisation's strengths and weaknesses, its resources, capabilities and competencies as sources of competitive advantage, and the relationship between its competitive advantage and its strategy. Assessment criteria  Critically discuss the importance of internal analysis in identifying organisational strengths and weaknesses for strategy formulation.  Describe an organisation's strategic resources, capabilities and competencies.  Explain resources, capabilities and competencies as sources of sustainable competitive advantage.  Explain how the value of resources, capabilities and competencies is appraised.  Explain the role of the resource-based view in internal analysis.  Explain the use of the value chain in internal analysis.  Explain the concept of sustainable competitive advantage. Specific outcome 5: Have an understanding of the prevailing institutional and external environments for business in Africa, as well as of the strategies for emerging markets in general and markets in Africa in particular. Assessment criteria  Explain the structure of the external environment that organisations have to deal with and the institutional environment of Africa in broad terms, with specific reference to the African Union (AU) and the Southern African Development Community (SADC).  Explain the external environment relating to Africa as a frame of reference for doing business in Africa.  Identify and critically discuss the drawbacks and obstacles in doing business in Africa.  Compare the approach to strategy and strategic management in emerging economies to the approach in the developed world.  Describe suitable approaches for strategies in emerging markets in general, and markets in Africa and sub-Saharan Africa in particular.  Explain the role of governments in enhancing business conditions in Africa. 6 MNG3701/101 Specific outcome 6: Explain what sustainable organisations are and evaluate strategic decisions to determine how they contribute to sustainability. Assessment criteria  Explain why corporate sustainability is important.  Describe the four pillars of corporate sustainability.  Explain what sustainable organisations are and why they are important.  Explain the "triple-bottom line" and why it is important.  Explain what corporate social responsibility (CSR) is and give examples of CSR activities in a company.  Explain the importance of stakeholders and stakeholder management for sustainable business.  Conduct an analysis of stakeholder salience and make recommendations based on your analysis.  Explain the importance of ethical business and give examples of what organisations can do to promote it.  Explain the role of corporate governance in corporate sustainability.  Evaluate corporate sustainability in a practical setting.  Make recommendations on how organisations can improve their sustainability. Specific outcome 7: Examine the various generic competitive business level strategies available to organisations and explain their appropriateness in specific situations. Assessment criteria  Explain the importance of choosing appropriate business level strategies.  Explain the levels of strategy in organisations.  Distinguish between the different types of business level strategies.  Explain how business level strategies are chosen.  Assess the advantages and disadvantages of each type of business level strategy.  Explain how business level strategies are evaluated. After mastering the learning outcomes in each assessment criterion stated above, you will now be ready to tackle your assignments and the examination. 7 MNG3701/101 3 CONTACT DETAILS 3.1 Lecturers Lecturers are there to support you for any module- or content-related queries. You are more than welcome to contact us via e-mail or telephone or for any face-to-face appointments. The contact details of lecturers responsible for this module can be found below: Name Mrs NV Moraka Capacity Primary lecturer Office Telephone E-mail AJH van der Walt +27 12 429 thakha@unisa.ac.za Building, Room 4- 8752 20, Pretoria Campus Prof N Sewdass Secondary lecturer AJH van der Walt +27 12 429 sewdan@unisa.ac.za Building, Room 4- 2795 51, Pretoria Campus Mr A Thakhathi Graduate development fellow AJH van der Walt +27 12 429 thakha@unisa.ac.za Building, Room 3- 6292 36, Pretoria Campus It is important to note that module- or content-related queries are of an academic nature and should be directed to your e-tutor first, and if you do not get the desired outcome, contact your lecturers. Typically these queries may include questions about the content of assignments, difficult concepts that you struggle to grasp, examination questions discussion and general information regarding the syllabus of the module. Please have your study material at hand when you contact us. All queries sent via e-mail must include your student number and the module code (MNG3701) in the subject line. If you are unable to contact the e-tutors or your lecturers, you may also contact the postgraduate assistants in the strategic management section. In due course, details of the postgraduate assistants will be posted on myUnisa via announcements. 8 MNG3701/101 Administrative queries, such as questions about examination timetables and assignment marks, should be addressed to the relevant administrative section. Consult the brochure, my studies @ Unisa, in this regard. Always have your student number at hand when you call the University. PLEASE NOTE: Letters to lecturers may not be enclosed with or inserted in assignments. 3.2 Department This module is offered in the Department of Business Management. This contact details of this department for administrative queries are as follows:   3.3 Telephone number: +27 12 429 4220 E-mail address: busman@unisa.ac.za University Communication with the University If you need to contact the University about matters not related to the content of this module, please consult the brochure, my Studies @ Unisa. This brochure contains information on how to contact the University (e.g. to whom you can write for different queries, important telephone and fax numbers, addresses and details of the times certain facilities are open). Remember to always have your student number at hand when you contact the University. Below is a quick reference guide to the contact details of various administrative departments that students contact often and to which your queries should be addressed. Directorate/Business unit Student Admissions and Registrations Student Assessment Administration Description of enquiry Applications and registrations Assignments and examinations Short SMS code 43578 E-mail address Study-info@unisa.ac.za 43584 Despatch Finance ICT (myUnisa & myLife) Study material Student accounts myUnisa myLife e-mail 43579 31954 43582 For assignment queries: Assign@unisa.ac.za For examination queries: Exams@unisa.ac.za despatch@unisa.ac.za finan@unisa.ac.za MyUnisaHelp@unisa.ac.za MyLifeHelp@unisa.ac.za 9 MNG3701/101 4 MODULE-RELATED RESOURCES 4.1 Joining myUnisa You can quickly access resources and information at the University if you have access to a computer that is linked to the internet. The myUnisa learning management system is Unisa's online campus that will help you to communicate with your e-tutor, lecturers, other students and the administrative departments at Unisa - all through the computer and the internet. You can start on the main Unisa website, http://www.unisa.ac.za, and then click on the myUnisa orange block. This will take you to the myUnisa website. To go to the myUnisa website directly, go to https://my.unisa.ac.za. When you are on the myUnisa website, click on "Claim UNISA Login" on the right-hand side of the screen. You will then be prompted to give your student number in order to claim your initial myUnisa and myLife login details. Please consult my Studies @ Unisa for more information on myUnisa. 4.2 Printed support materials To contribute to your success in this online module, we will also provide you with some of the study materials in printed format. This will allow you to read the study material, even when you are not online. Bear in mind that the printed support material is a copy of everything that you can find online on myUnisa. No extra information is contained in the printed material you will receive. In other words, you should NOT wait for the printed support material to arrive before you start studying. 4.3 The prescribed textbook Assignments and examinations are based on the prescribed textbook. You will not be able to complete the assignments or study for the examination without using the following prescribed textbook: Venter, P. (ed), Jansen van Rensburg, M, Davis, A, Nieuwenhuysen, C, Van Zyl, J, Meyer, J, Singh, C & Brevis, T. 2014. Practising Strategy: A Southern African Perspective. Cape Town: Juta. 4.4 Online tutorials at Unisa As an additional support, please note that online tutorials (e-tutorials) will be made available to you. After your registration has been completed, you will be allocated to a group of students with whom you will be interacting with during the tuition period. You will also be allocated an e-tutor who will be your tutorial facilitator. Thereafter, you will receive an SMS or email informing you about your group, the name of your e-tutor and instructions on how to log on to myUnisa in order to receive further information on the e-tutoring process. Online tutorials are conducted by qualified e-tutors who are appointed by Unisa, and the service is free of charge. All you need to participate in e-tutoring is a computer with an internet connection. If you live close to a Unisa regional centre or a telecentre contracted to Unisa, you can visit either of these to access the internet. E-tutoring takes place on myUnisa where you are expected to connect with other students in your allocated group. It is the role of the e-tutor to guide you through your study material during this interaction process. For you to make the most of online tutoring, you need to participate in the online discussions that the e-tutor will be facilitating. 10 MNG3701/101 There appear to be certain modules that students repeatedly fail. Face-to-face tutors have been appointed for these modules, and tutorials will be offered at the Unisa regional centres. Although these tutorials are also offered free of charge, you are required to register at your nearest Unisa Regional Centre to confirm your attendance of these classes. Additional information regarding face-to-face tutors will be communicated to you during the course of the semester. 5 MODULE-SPECIFIC APPROACH 5.1 Blended approach We follow a blended approach in this module to deliver study materials and provide student support. This means that official study materials are made available in printed format and online. Student support for the module is primarily given in an online environment through myUnisa tools and e-tutors. More specifically, communication between students and the University takes place in an online environment - by e-mail, via the myUnisa Discussion Forum and FAQ tools. You will find our approach in this module different from the approaches followed in most - if not all - of your other modules, with the exception of MNG3702. In this module, you will take charge of your progress; which means that you are responsible for mastering the outcomes, and you will, therefore, have to adhere to a strict study schedule. We will give you all the support that we possibly can, but ultimately it will be up to you to decide how you are going to master the required knowledge, skills and values in the relevant context. You are probably used to memorising facts from a prescribed textbook and reproducing them in the examination in order to pass a module. This module, MNG3701, is not about memorising facts. It is about mastering certain outcomes and learning how to implement them in organisations. It is about going out into the world and appreciating the many sources from which you can draw to find answers to your questions - including your own experiences. It is about asking questions, and it is a wonderful way of discovering more about the real business world. To achieve the outcomes for this module, you will have to plan your learning experience strategically. To do this, you will have to carefully read and reread the section in the learning guide entitled, 'Overview'. This section contains critical information to enable you to plan your studies, such as the number of hours you will have to spend in order to master the outcomes (120 hours), the number of learning units to cover (7), and so on. When planning your learning experience, remember that your examination preparation starts today. Consider each activity in the learning units as a potential examination question. This should be good news to you, because it means that you will not have to put yourself through the torment of doing a crash course a week before the examination starts. Please ensure that you devote quality time to each activity, reflect on the issues raised, ask questions, find answers, question the questions and question the answers. By the time you write the examination, you should be well prepared, provided you have completed all the activities in the study guide, participated actively in the online 'Discussion Forums' option and have mastered the outcomes and the learning outcome standards listed at the beginning of each learning unit. 11 MNG3701/101 6 ASSESSMENT 6.1 Assessment plan The aims of the assignments are to encourage you to study the prescribed textbook, and learning guide, and to read and reread certain sections in them, and to think about the tutorial matter in terms of its practical application. With these remarks in mind, the assignment questions may sometimes be difficult, and some may even seem ambiguous. The idea is not to trick you or catch you out, but to encourage you to think critically about strategic planning. The assessment plan for this module comprises the following:  Formative assessment - takes place through the compulsory Assignments 01 and 02 that you are required to submit. Feedback on Assignment 01 and 02 will be provided in Tutorial Letters 201 and 202, respectively. The assessment template (rubric) and assessment criteria for assignments appear after the assignment questions in the relevant annexures.  Summative assessment - comprises a two-hour written, closed-book examination in which you will be assessed on the relevant theory as well as practical applications within the context of the syllabus and learning outcomes. The University has a policy of compulsory assignments in all modules for 2016. Assignments 01 and 02 for MNG3701 are, therefore, compulsory. However, you must submit ASSIGNMENT 01 to gain admission to the examination. You will gain admission by submitting the assignment and NOT on the strength of the marks you obtain for it. Failure to submit Assignment 01 will mean that you will not be admitted to the examination, regardless of whether or not you have submitted Assignment 02. VERY IMPORTANT Please ensure that your assignments reach us on or before the due dates. You will not be admitted to the examination if your assignment is submitted later than the due date. Please do not phone us with requests to be admitted to the examination if you have not submitted an assignment, or if you submitted it later than the due date. The assignments for the year appear in Annexures B, C, D and E of this tutorial letter. Please note that the assignments for the first semester differ from those for the second semester. It is your responsibility to ensure that you submit the correct assignment for your semester of enrolment. If you submit an assignment for the wrong semester of enrolment, it will not be marked and you will receive a mark of zero (0) for it. Below is the breakdown of the formal assignments, as they occur in the semester. 12 MNG3701/101 First semester (Annexures B and C) Assignment number (Only for those students who are enrolled for the January to June semester period.) Due date Unique number 01 29 February 2016 730978 02 31 March 2016 842798 Second semester (Annexures D and E) Assignment number (Only for those students who are enrolled for the July to December semester period.) Due date Unique number 01 08 August 2016 766432 02 05 September 2016 896037 Assignments are regarded as part of the learning material for this module. As you do the assignments, study the prescribed textbook and the study guide, consult other resources and discuss the work with fellow students with whom you are actively engaged in learning. Looking at the assessment criteria given for each assignment in Annexures B, C, D and E will help to give you a clearer understanding of what is required of you. 6.2 Submission of assignments Assignments can be submitted in two ways - either by post or electronically via myUnisa. Bear in mind that assignments may not be submitted by fax or e-mail. For detailed information on and the requirements for assignments, see my Studies @ Unisa. Postal assignments should be addressed to: The Registrar PO Box 392 Unisa 0003 To submit assignments via myUnisa:        Go to www.unisa.ac.za. Go to myUnisa. Log in using your student number and password. Select the programme and the module. Click on Assignments. Click on Submit Assignments. Follow the instructions. 13 MNG3701/101 6.3 Assignments guidelines 6.3.1 Plagiarism Plagiarism is the act of taking the words, ideas and thoughts of others and passing them off as your own. It is a form of theft and involves a number of dishonest activities. Examples of plagiarism include copying verbatim from the prescribed textbook or any other source, or copying from fellow students and passing off their work as your own work. All students receive the Disciplinary Code for Students (2004) when they register. You are advised to study the Code, especially sections 2.1.13 and 2.1.14 (2004:3-4). Kindly read the University's Policy on Copyright Infringement and Plagiarism as well. Note: Although students may work together when preparing assignments, each student must write and submit his or her own individual assignment. In other words, you must submit your own ideas in your own words, sometimes interspersed with relevant short quotations that are properly referenced. It is unacceptable for students to submit identical assignments on the basis that they worked together. That is copying (a form of plagiarism), and none of these assignments will be marked. Furthermore, you may be penalised or subjected to disciplinary proceedings by the University. 6.3.2 Guidelines on answering assignments Below are some guidelines that may assist you with written assignments: Technical requirements           14 Always provide a heading for your assignment and a table of contents on the first page. Use headings and subheadings and number them. Start your answer with an introduction, briefly explaining your approach and the contents of the answer. You should have only one introduction and one conclusion for the entire assignment. Include a conclusion to indicate your own perspectives and new insights, based on the information in your assignment. You can also make recommendations. Conclude your assignment with a short summary in which you repeat the main points of your discussion and draw a conclusion. Use text references correctly. Use the Harvard Referencing Method in your assignments to refer to sources you have consulted. If you do not include in-text references and a bibliography, you will be guilty of plagiarism. Include a bibliography at the end of your assignment. A bibliography is an alphabetical list of all the references (books, articles, journals, internet sources, etc.) cited in your assignment. The bibliography must also be compiled according to the Harvard Referencing Method. You will be penalised in the assignments if you do not include a bibliography. When you use the internet, you need to provide the details. In the bibliography, indicate the name of the author (if available), the full name of the website, the web address and the date on which you have accessed the site. The date is important because information on the internet changes continuously. Your work should be of a high technical standard. Use the following page margins: top 2 cm, bottom 2 cm, left 2 cm and right 5 cm (to allow space for the marker's comments). Set your computer to Arial or Times New Roman, font size 11 or 12 and 1.5 line spacing. MNG3701/101       The page limit is a maximum of ten pages (1.5 line spacing) for each assignment. This excludes the cover page, table of contents and bibliography. You may be penalised if you exceed the maximum number of pages. The cover page of your assignment must clearly indicate your student number, the module code and the assignment number. The way in which you present your assignments clearly reflects your character. Do not submit untidy and badly presented assignments. Be proud of the work you present. Assignments should be typed if at all possible. If you cannot type your assignment, you must ensure that your handwriting is legible. The presentation of the assignment and adherence to the format requirements will also contribute five marks towards your assignment mark. The body of an assignment is composed of a discussion under several headings and subheadings. These headings should relate to the question numbers. Each of these headings is numbered, as indicated in the table in the table below. HEADING TABLE OF CONTENTS 1 INTRODUCTION 2 SELECT AN APPROPRIATE HEADING (question 1) 2.1 Subheading (an aspect of the topic mentioned in the heading) 2.2 Subheading (another aspect) 2.3 Subheading (another aspect) 3 SELECT AN APPROPRIATE HEADING (question 2) 3.1 Subheading (aspect of the topic in 3) 3.2 Subheading (aspect of the topic in 3) 4 SELECT ANOTHER APPROPRIATE HEADING (question 3) (Continue in this way until the topic has been fully discussed.) 5 SUMMARY/CONCLUSION 6 BIBLIOGRAPHY The body of your assignment  Your answers should reflect your ability to approach a problem in a structured, analytical way. Apply the theories and concepts of strategic management in a coherent way to the assignment problem.  Refer to Tutorial Letter MNALLEQ 301, which was sent to you with your study material package (also available on myUnisa "Official study material") regarding guidelines on how to interpret how questions are formulated.  Discussions of theory should be concise and to the point: use words economically - in other words, say as much as possible, but as concisely as possible.  Develop a style of writing in which sentences and paragraphs follow one another in a logical sequence. 15 MNG3701/101    Arguments should follow a logical pattern and be substantiated with suitable references or facts. Conclusions should not be based on intuition. Vague generalisations and halftruths should be avoided in your assignments. Note that the assignment questions will not require you to merely rewrite the material in the prescribed textbook. In all cases, you will be required to show your insight into the topic. Make sure you understand the questions in the assignment. If you copy from the prescribed textbook or any other sources, you could be penalised. Arranging your thoughts in such a way that the points follow one another logically is an art. Make sure that what you have to say under a specific heading relates to the subject of that heading. Important: Please ensure that your assignments reach us on or before the due date. Do not e-mail your assignments to your lecturer. Do not telephone the lecturer with requests to be admitted to the examination if you have not submitted the assignment, or if you submitted it later than the due date. NO excuses will be accepted. Your assignment will be marked and returned to you. You will receive feedback on Assignments 01 and 02 in Tutorial Letters 201 and 202, respectively. Remember Keep a copy of your assignment before you submit the original. 6.3.3 Comments and feedback on assignments All assignments are marked and constructive and ample feedback is provided. Note that you need to submit the compulsory assignments and not the self-assessment questions. Feedback on Assignments 01 and 02 will be provided in Tutorial Letters 201 and 202, respectively, as discussed above. As soon as you receive the comments, please check your answers. The assignments and the comments on them are a vital part of your learning and should help you to be better prepared for the next assignment and the examination. 6.3.4 Assessment guidelines and performance standards In your preparation for the assignments and the examination, you will probably want to know how you will be assessed. There are different standards for assessing performance. Since this module is based on the mastery of certain outcomes, we have identified the following specific criteria that we will use when assessing your work:   16 Your mastery of certain abilities (e.g. your ability to access relevant sources of information and identify key concepts in the sources). Your ability to attain certain levels of performance (the minimum level of overall performance in this module is 50%). MNG3701/101 6.3.5 The assessment process This module has been structured in such a way that you will be able to continuously assess your own progress and mastery of all the stated outcomes. To assess your mastery of the outcomes, you will obviously have to complete the two assignments and self-assessment questions. Once you have done this, we will give you feedback through marker comments and the attached rubric (scoring sheet) for each of your assignments for the compulsory questions. Note: At this early stage of your learning experience, we need to sound a warning. Not doing the assignments and simply memorising the contents of the textbook or the answers provided in Tutorial Letters 201 and 202 could mean that you will fail the examination. Summative assessment (examination) takes place during the May/June (semester 1) and October/November (semester 2) examination periods. The purpose of assessment is to evaluate your mastery of all the stated outcomes. 7 SEMESTER MARK AND THE EXAMINATION Your final mark for this module will be calculated as follows:  The semester mark (a combination of the two assignment marks) will contribute a maximum of 20% to your final assessment mark for the module, while your examination mark will contribute 80%.  Irrespective of the semester mark you receive, you must obtain a subminimum of 40% in the examination. You will, therefore, not pass the module if your examination mark is less than 40%. Example 1: If you receive an assignment mark of 50% for Assignment 01 and 50% for Assignment 02, the average ((50%+50%)/2) for the two assignment marks is multiplied by 20%. This equals 10% of the final assessment semester mark. If you obtain 35 out of a possible 70 marks in the examination (50%), this percentage is multiplied by 80%. This equals 40% of the final assessment examination mark. The assignment (semester) mark and the examination mark are then added together (10% + 40%) to give a final assessment mark of 50% for the module. Example 2: If you receive an assignment mark of 60% for Assignment 01 and 80% for Assignment 02, the average ((60%+80%)/2) for the two assignment marks is multiplied by 20%. This equals 14% of the final assessment semester mark. If you then obtain 44 out of 70 marks (or 63%) in the examination, this figure is multiplied by 80% to give 50,2% of the final assessment mark. The two results are then added to give you a final assessment examination mark of 64% (14% + 50, 2%) for the module. 8 OTHER ASSESSMENT METHODS There are no other assessment methods for this module except for the self-assessment questions, which you have to attempt on your own or with assistance and guidance of your allocated e-tutor. 17 MNG3701/101 9 EXAMINATION 9.1 Format of the examination The format of the examination paper is as follows: Duration: 2 hours Marks: 70 Type of question: A brief case study and compulsory short essay or paragraph-type questions. Previous examination papers are available on myUnisa under Official study material. We advise you, however, not to use previous examination papers as your preparation for the examination. Rather use them as revision exercises or even to check the format of the examination and what to expect in terms of how questions are formulated and structured. Examination papers change from year to year. You may, however, accept that the types of questions that are asked in the examination will be similar to those asked in the assignments. Important note: Only examination papers of the 2015 academic year may be consulted as they are aligned with your current prescribed material and learning outcomes. Note also that the memorandums for previous examinations are not available to students. Please do not contact us with requests for model answers. 9.2 Alternative assessment: students who qualify for the final-year (FI) concession The my Studies @ Unisa brochure contains important information on the FI concession procedure to assist those students who still require one or two modules to obtain their degree. All students who qualify for the final-year (FI) concession will receive an SMS/e-mail to this effect from the Student Assessment Administration. For this module, FI students have the option to be referred to the next formal examination opportunity or to engage in an alternative method of assessment. The alternative method of assessment will be determined by the lecturers concerned. More information on the alternative method of assessment will be communicated directly to the qualifying students. Alternative methods of assessment are subject to stringent academic rules and processes and should not be considered an easier option. Failure to achieve the learning outcomes for the module, through the alternative method of assessment will result in a student failing and having to re-register for the module concerned. 10 FREQUENTLY ASKED QUESTIONS (FAQs) See my Studies @ Unisa for a list of the most frequently asked general questions. For MNG3701 specifically, FAQs will be posted on the FAQ tool on the myUnisa site. 18 MNG3701/101 11 CONCLUSION We trust that you are looking forward to an exciting semester of study. We hope that you will apply everything you learn in this module to help you and those around you recognise the importance of thinking and acting strategically. This could go a long way towards proactively anticipating possible challenges and opportunities within your respective environments, thereby preparing you to deal with challenges and opportunities swiftly. You are welcome to contact us if you have any queries about this tutorial letter and the academic contents of the module as a whole. Good luck with your studies! Kind regards Mrs NV Moraka Prof N Sewdass Mr A Thakhathi 19 MNG3701/101 ANNEXURE A: CASE STUDY: MARUTI SUZUKI - Managing competition Maruti Suzuki India Limited commonly referred to as Maruti, and formerly known as Maruti Udyog Limited, is an automobile manufacturer in India. It is a subsidiary of the Japanese automobile and motorcycle manufacturer, Suzuki. As of November 2012, it had a market share of 37% of the Indian passenger car markets. Maruti Suzuki manufactures and sells a complete range of cars from the entry level Maruti 800 (discontinued), Alto, to the hatchback Ritz, Celerio, A-Star, Swift, Wagon R, Zen and sedans DZire, Ciaz, Kizashi and SX4, in the 'C' segment Eeco, Omni, multi-purpose vehicle Suzuki Ertiga and sports utility vehicle Grand Vitara. INDUSTRY ANALYSIS 1. GLOBAL FOUR-WHEELER INDUSTRY Evolution The automobile industry has undergone significant changes since Henry Ford first introduced the assembly line technique for the mass production of cars. Production concepts, processes and the associated technologies have changed dramatically since the first cars were built. Some 70 years ago, car assembly was primarily manual work. Today, the process of car assembly is almost fully automated. In the old days, firms attached importance to the production of virtually every part in a single plant, while today, carmakers concentrate on only a few specific production stages (i.e. car assembly). Parts and module production, services and related activities have been shifted to other specialised firms (outsourcing of production steps). Since the 1980s, it has become clear that further productivity gains to retain competitiveness can be possible only by outsourcing and securing greater flexibility. For example, firms, especially small car producers whose markets have been threatened by imports, have diversified their production programmes (e.g. by building off-road cars or convertibles), thereby introducing greater flexibility in the production process. Also, firms and their production have become more internationalised in lieu of outsourcing. Current scenario The global passenger car industry has been facing the problem of excess capacity for quite some time now. Efforts to shore up capacity utilisation have prompted severe price competition, thus affecting margins and forcing fundamental changes in the industry. The pressure on sales and margins is driving players to emerging markets in pursuit of better growth opportunities and/or access to low-cost manufacturing bases.  The concept of selling in the passenger car industry is changing from original sales towards lifecycle value generation, encompassing financing, repairs and maintenance, cleaning, provision of accessories, and so on.  Vehicle manufacturers are moving into completely new materials and technologies - partly guided by environmental legislation - in striving to come up with radically different products. Some of these new technologies involve parts that can be bolted on to an existing vehicle with relatively few implications for the rest of the vehicle. Others are much more fundamental, and are likely to have a profound impact throughout the supply chain. The examples include battery, electric or hybrid power trains, and alternatives to the all-steel body. Carmakers are increasingly outsourcing component production, and focusing on product design, brand management and consumer care, in contrast to the traditional emphasis on manufacturing and engineering.  The increasing need to attain global scales underscores the importance of platform-sharing among carmakers. All original equipment manufacturers (OEMs) are trying to reduce the number of vehicle platforms, but raise the number of models produced from each platform. This means producing a number of seemingly distinct models from a common platform.  As in manufacturing, distribution in the automobile industry is undergoing significant changes, involving internet use, retailer consolidation, and unbundling of services provided by retailers. 20 MNG3701/101 2. INDIAN FOUR-WHEELER INDUSTRY Evolution The Indian automobile industry developed within the broader context of import substitution during the 1950s. The distinctive feature of the automobile industry in India was that in line with the overall policy of State intervention in the economy, vehicle production was closely regulated by an industrial licensing system until the early 1980s that controlled output, models and prices. The cars were built mostly by two companies, Premier Automobiles Limited and HM. However, the Indian market got transformed after 1983 following the relaxation of the licensing policy and the entry of MUL into the car market. In 1991, car imports were insignificant, while component imports were equivalent to 20% of the domestic production, largely because of the continuing import of parts by MUL. The liberalisation of the Indian automotive industry that began in the early 1990s was directed at dismantling the system of controls over investment and production, rather than at promoting foreign trade. Multinational companies were allowed to invest in the assembly sector for the first time, and car production was no longer constrained by the licensing system. However, QRs on built-up vehicles remained, and foreign assemblers were obliged to meet local content requirements even as export targets were agreed with the Government to maintain foreign exchange neutrality. The new policy regime and large potential demand led to inflows of foreign direct investment (FDI) by the mid-1990s. By the end of 1997, Daewoo, Ford India, GM, DaimlerChrysler and Peugeot had started assembly operations in India. They were followed by Honda, HMIL and Mitsubishi. Current scenario - major players Bajaj Tempo Limited, DaimlerChrysler India Private Limited, Fiat India Automotive Private Limited, Ford India Limited, General Motors India Limited, Hindustan Motors Limited, Honda Siel Cars India Limited, Hyundai Motor India Limited, Mahindra & Mahindra Limited, Maruti Udyog Limited, Skoda Auto India Limited, Tata Motors Limited, Toyota Kirloskar Motors Limited. Current scenario in the passenger car category The dominant basis of competition in the Indian passenger car industry has changed from price to pricevalue, especially in the passenger car segment. While the Indian market remains price-sensitive, the stranglehold of economy models has been slackening, giving way to higher-priced products that better meet customer needs. Additionally, a dominant trend in the Indian passenger car segment is the increasing fragmentation of the market into subsegments, reflecting the increasing sophistication of the Indian consumer. With the launch of new models from FY2000 onwards, the market for MUVs has been redefined in India, especially at the upper-end. Currently, the higher-end MUVs, commonly known as sports utility vehicles (SUVs), occupy a niche in the urban market, having successfully shaken off the tag of commercial vehicles attached to all MUVs until recently. Domestic car manufacturers are now venturing into areas such as car financing, leasing and fleet management, and used-car reconditioning/sales, to complement their mainstay-business of selling new cars. COMPETITIVE FORCES IN THE INDIAN PASSENGER CAR MARKET Critical issues and future trends The critical issue facing the Indian passenger car industry is the attainment of break-even volumes. This is related to the quantum of investments made by the players in capacity creation and the selling price of the car. The amount of investment in capacities by passenger car manufacturers in turn depends on the production strategies of the car manufacturers. Setting up integrated manufacturing facilities may require higher capital investments than establishing assembly facilities for semi-knocked-down kits or complete knocked-down kits. In recent years, even though the ratio of sales to capacity (an important indicator of the ability to reach break-even volumes) of the domestic car manufacturers has improved, it is still low for quite a few car manufacturers in India. India is also likely to increasingly serve as the sourcing base for global automotive companies, and automotive exports are likely to gain increasing importance over the medium term. However, the growth rates are likely to vary across segments. Although the mini-segment 21 MNG3701/101 is expected to sustain volumes, it is likely to continue losing market share; growth in the medium term is expected to be led largely by the compact and mid-range segments. Additionally, in terms of engine capacity, the Indian passenger car market is moving towards cars of higher capacity. This apart, competition is likely to intensify in the SUV segment in India following the launch of new models at competitive prices. Threat from the new players: Increasing     Market strength suppliers: Low   Most of the major global players are present in the Indian market; few more are expected to enter. Financial strength assumes importance as high are required for building capacity and maintaining adequacy of working capital. Access to distribution network is important. Lower tariffs in post-World Trade Organisation (WTO) may expose Indian companies to threat of imports. Rivalry within the industry: High of  A large number of automotive components suppliers. Automotive players are rationalising their vendor base to achieve consistency in quality.  There is keen competition in select segments (compact and mid-size). New multinational players may enter the market. Market strength of consumers: Increasing    Threat from substitutes: Low to medium  22 With consumer preferences changing, inter- product substitution is taking place (mini-cars are being replaced by compact or mid-sized cars). Increased awareness among consumers has increased expectations. Thus the ability to innovate is critical. Product differentiation via new features, improved performance and after-sales support is critical. Increased competitive intensity has limited the pricing power of manufacturers. MNG3701/101 ANNEXURE B: COMPULSORY ASSIGNMENT 01 FOR 2016 - SEMESTER 1 DUE DATE: 29 FEBRUARY 2016 [UNIQUE NUMBER: 730978] Each assignment addresses a number of the learning units and learning outcomes. The outcomes in learning units 1, 2, 3 and 4 will be assessed in Assignment 01. Kindly note, the learning outcomes clearly indicate the level of thinking skill you need to demonstrate when answering each question in the assignment. Also note that the learning outcomes are NOT the assessment questions that should be answered. For Assignment 01, semester 1, you must answer the question in section 1.2 below, based on the case study in Annexure A: (MARUTI SUZUKI - Managing competition successfully). Hint: Before completing the question in section 1.2 and self-assessment questions in section 1.3, read chapters 1, 4, 5, 7, and 8 in the prescribed textbook and learning units 1, 2, 3 and 4 in the learning guide. Note: You need to answer the question in section 1.2 for Assignment 01 submission. Self-assessment questions in section 1.3 are not for submission but for you to attempt on your own. 1.1     1.2 ASSIGNMENT 01 - SEMESTER 1: INSTRUCTIONS Answer the question in section 1.2 for Assignment 01 submission. You must follow the guidelines on answering essay-type questions (see section 6.3 above). In addition, merely copying facts from prescribed textbooks, without substantiating your answers where necessary, is insufficient. You need to be able to demonstrate that you understand the course theory and are able to apply it in practice. You need to comply with the prescribed technical requirements. Structure your answers. Include an introduction, main body of discussion and conclusion in your essay. Include references and number your headings in the text. Note that up to five marks will be deducted for failing to adhere to the technical requirements. The body of your assignment may not exceed five pages, excluding the cover page, introduction, conclusion and references. ASSIGNMENT 01 - SEMESTER 1: QUESTION Critically explain what is meant by industry analysis in the context of external environment. In your answer analyse the attractiveness of the industry in which Maruti Suzuki is operating. [35] Consult the rubric (scoring sheet) in section 1.4 below for the assessment criteria that will be used to assess your answers. 1.3 SELF-ASSESSMENT QUESTIONS (NOT FOR SUBMISSION) Question 1 Provide a critical discussion of the concepts of strategy, strategic planning and strategic management. Use practical examples (3 or more) to support your discussion. [20] Question 2 Critically discuss the shortcomings of the traditional process approach to strategic management and identify the new perspectives on strategic management that have emerged in response to these shortcomings. [20] Question 3 Discuss what is meant by the resource-based view. In your discussion identify Apple's sources of resources, capabilities and core competencies. [20] 23 MNG3701/101 1.4 ASSESSMENT CRITERIA FOR ASSIGNMENT 01 - SEMESTER 1 QUESTION UNACCEPTABLE (FAIL) 0-40% Vague critical explanation of industry analysis in the context of external environment and inadequate analysis of the attractiveness of the industry in which Maruti Suzuki is operating. Common-sense approach; very poor understanding of industry analysis in the context of external environment and inadequate analysis of the attractiveness of the industry in which Maruti Suzuki is operating. 0-12 marks Technical aspects CLOSE TO FAILING 40-60% GOOD PASS 60-80% Satisfactory critical explanation of industry analysis in the context of external environment and satisfactory analysis of the attractiveness of the industry in which Maruti Suzuki is operating. Good critical explanation of industry analysis in the context of external environment and good analysis of the attractiveness of the industry in which Maruti Suzuki is operating. Excellent critical explanation of industry analysis in the context of external environment and very good analysis of the attractiveness of the industry in which Maruti Suzuki is operating. Some understanding demonstrated of the critical explanation of industry analysis in the context of external environment and satisfactory analysis of the attractiveness of the industry in which Maruti Suzuki is operating. Good understanding demonstrated of the critical explanation of industry analysis in the context of external environment and good analysis of the attractiveness of the industry in which Maruti Suzuki is operating. In-depth understanding demonstrated of the critical explanation of industry analysis in the context of external environment and excellent analysis of the attractiveness of the industry in which Maruti Suzuki is operating. 12-18 marks 19-24 marks 24-30 marks Table of contents and headings are used Sources are acknowledged/correct referencing technique is used Bibliography included Introduction included Conclusion included 1 1 1 1 1 MARK Subtotal for the question Technical requirements Total No table of contents and no headings are used 0 Sources are not acknowledged/incorrect referencing technique used Bibliography not included Introduction not included Conclusion not included PERCENTAGE MARK FOR ASSIGNMENT 01 24 OUTSTANDING +80% 0 0 0 0 Max 30 /30 /5 /35 MNG3701/101 ANNEXURE C: COMPULSORY ASSIGNMENT 02 FOR 2016 - SEMESTER 1 DUE DATE: 31 March 2016 [Unique number: 842798] Each assignment addresses a number of the learning units and learning outcomes. The outcomes in learning units 5, 6 and 7 will be assessed in Assignment 02. The learning outcomes clearly indicate the level of thinking skill you need to demonstrate when answering each question in the assignment. Also note that the learning outcomes are NOT the assessment questions that should be answered. For Assignment 02, semester 1, you must answer the questions in section 1.2 below, based on the case study in Annexure A: MARUTI SUZUKI - Managing competition successfully. Hint: Before completing the question in section 1.2 and self-assessment questions in section 1.3, read chapters 1, 2, 3, 6, 7 and 9 in the prescribed textbook and learning units 5, 6 and 7 in the learning guide. Note: You need to answer the question in section 1.2 for Assignment 02 submission. Self-assessment questions in section 1.3 are not for submission but for you to attempt on your own. 1.1     1.2 ASSIGNMENT 02 - SEMESTER 1: INSTRUCTIONS Answer the question in section 1.2 for Assignment 02 submission. You must follow the guidelines on answering essay-type questions (see sec 6.3 above). In addition, merely copying facts from prescribed textbooks, without substantiating your answers where necessary, is insufficient. You need to be able to demonstrate that you understand the course theory and are able to apply it in practice. You need to comply with the prescribed technical requirements. Structure your answers. Include an introduction, main body of discussion and conclusion in your report. Include references and number your headings in the text. Note that up to five marks will be deducted for not meeting the technical requirements. The body of your assignment may not exceed five pages excluding the cover page, introduction, conclusion and references. ASSIGNMENT 02 - SEMESTER 1: QUESTION Critically distinguish between different types of business level strategies and explain how business level strategies are evaluated. Recommend suitable business level strategy/strategies for Maruti Suzuki. [35] Consult the rubric (scoring sheet) in section 1.4 below for the assessment criteria that will be used to assess your answers. 1.3 SELF-ASSESSMENT QUESTIONS (NOT FOR SUBMISSION) Question 1 Identify and explain the obstacles of doing business in an African context. Use practical examples (3 or more) to support your discussion. [20] Question 2 Critically explain the levels of strategy in organisations. Support each business level strategy discussed with a practical business example. [20] Question 3 Critically explain the importance of an ethical business and provide examples on what organisations can do to promote it. [20] 25 MNG3701/101 1.4 ASSESSMENT CRITERIA FOR ASSIGNMENT 02 - SEMESTER 1 UNACCEPTABLE (FAIL) 0-40% Vague critical differentiation between different types of business level strategies and poor explanation of how business level strategies are evaluated. GOOD PASS 60-80% OUTSTANDING +80% Satisfactory critical differentiation between different types of business level strategies and adequate explanation of how business level strategies are evaluated. Good critical differentiation between different types of business level strategies and good explanation of how business level strategies are evaluated. Excellent and detailed critical differentiation between different types of business level strategies and very good explanation of how business level strategies are evaluated. Satisfactory recommendation of suitable business level strategy/strategies for Maruti Suzuki. Good recommendation of suitable business level strategy/strategies for Maruti Suzuki. Excellent recommendation of suitable business level strategy/strategies for Maruti Suzuki. Totally inadequate critical differentiation between different types of business level strategies and unsatisfactory explanation of how business level strategies are evaluated. Reasonable critical differentiation between different types of business level strategies and satisfactory explanation of how business level strategies are evaluated. Good understanding demonstrated of the critical differentiation between different types of business level strategies and good explanation of how business level strategies are evaluated. In-depth understanding demonstrated of the critical differentiation between different types of business level strategies and very good explanation of how business level strategies are evaluated. Poor recommendation of suitable business level strategy/strategies for Maruti Suzuki. 0-12 marks Technical aspects CLOSE TO FAILING 40-60% Poor/No recommendation of a suitable business level strategy/strategies for Maruti Suzuki. QUESTION Satisfactory recommendation of suitable business level strategy/strategies for Maruti Suzuki. Good recommendation of suitable business level strategy/strategies for Maruti Suzuki. Excellent recommendation of suitable business level strategy/strategies for Maruti Suzuki. 12-18 marks 18-24 marks 24-30 marks Table of contents and headings are used Sources are acknowledged/Correct referencing technique is used Bibliography included Introduction included Conclusion included P