Question 1

Health Foods Forever Limited (HFFL) is a family based foods and beverage restaurant founded by Mr Jacob and Mrs. Sherrie Kawunda in 2008. The restaurant is located in Bwaise (Ku biri) on the outskirts of Kampala city. After its formation, HFFL established itself as one of the best known restaurants in Kampala serving a variety of dishes to both mid and low (local) income customers. HFFL mainly specializes in dishes like "ekyenkya", "Luwombo" and "Kawomela" which all have great values to customers. Because of high quality standards and reliable delivery schedules, HFFL has been able to build and maintain a solid customer base around Kawempe division, with customers from other divisions driving to the restaurant to enjoy the unique dishes.

However, at the start of 2017, HFFL started to notice a declining trend in growth although the business was still profitable. This decline has been attributed to increasing competition in Kampala, from both existing and new food restaurants offering improved and cheaper substitute dishes. Despite all that, HFFL has managed to create strong bond with customers hence being able to retain them, in addition to attracting some new ones. One of the new customers, who was lured to eat at HFFL by her father, was quoted as remarking; "I have been passing-by this restaurant and had never picked interest in eating meals here because of the less appealing state in which the place is in, but now that I have tasted and liked the meals here. I will definitely be buying food from here every day. How I wish they could also include a variety of 'nice' foods like fast foods, chicken and liver on the menu!"

Mr Jacob Kawunda was so concerned about these remarks and decided to carry out a situational analysis of the existing range of foodstuffs and drinks offered at the restaurant. He stratified HFFL's services into three categories. The first category is the Juwakali (car mechanics) group. The car mechanics are mainly from Spana Motors Limited (SML), who is also the landlord of HFFL. This group is served with "ekyenkya" with a unique menu of boiled potatoes plus beans and 'tangawuzi' spiced tea in the early hours of the day. This unique venture creates high demand among car mechanics. Since inception, "ekyenkya" has been an innovative concept that has greatly contributed to HFFL's revenue mainly because of its primary customers who are car mechanics that work in nearby garages. Of late however, the demand for this product has dwindled as new restaurants have opened up in the same locality and provide substitute products like 'katogo' and 'Kitheri'.

These substitutes are eating into the market of HFFL's "ekyenkya''. When the workers asked Mr Jacob Kawunda to add 'katogo' to the HFFL's menu, he was reluctant fearing that 'katogo' is costly to prepare nd pays back meager returns. He argued that 'katogo' will be a future dish for HFFL and not an immediate target. His preliminary analysis revealed that a plate of 'katogo' costs Shs 2,500 to prepare nd is sold at Shs 3,000; a plate of 'Kitheri' costs Shs 1500 to prepare nd is sold at Shs 2,000; while "ekyenkya" costs Shs 1,200 to prepare nd is sold at Shs 3,000. Mr Jacob Kawunda is so worried that HFFL may soon lose the "ekyenkya" niche and is short of ideas on how to revive its consumption.

The second category is the "Bamusayi Muto" (WhatsApp) group. This group comprises of the working class or corporates, who work in companies within a proximal distance from where HFFL is located. This category also includes "My cars" that bring their vehicles for service and repairs in the neighbouring garages and washing bays. These are mainly attracted by the aroma or good taste of HFFL's boiled chicken and matooke (thus the name "Luwombo"), served with a free glass of juice. They are however, inconvenienced by HFFL's lack of a decent free eating place, with majority of these clients buying food and eating from their parked cars. This concern has not been addressed by HFFL management thus many customers have joined competition. One customer was quoted saying "... we have supported HFFL since 2015 despite the ever changing food prices but it seems management doesn't believe in the notion that a customer is a king." He added that "we drive miles to come and support this restaurant but customer care is zero". There is also rumour that HFFL chef is fond of slaughtering and preparing dead chicken and goats, obtained at low cost, and serving them to unsuspecting clients. This practice is not only a taboo to the muslim customers but also unethical. Mrs. Sherrie Kawunda has vehemently refuted these allegations calling them a mere propaganda by rival businesses that are envious of HFFL's performance. She added that "... at HFFL we can't entertain such unethical practices for the sake of winning customers while playing on their lives."

The third category is the "Batembeyi" (Hawkers) group. This market segment was formed to target vendors / hawkers escaping the wrath of the city authorities in the evening. Their major delicacy is "Kawomela", which is a kind of cassava or matooke mixed with fresh beans that is spiced with tamarind. It is largely demanded by hawkers during the evening hours. The product has recently received competition from other restaurants but its unique taste has helped "Kawomela" remain the most appealing product on the market. However, this group is not interested in the restaurant menu because most of hawkers are uneducated and they hardly understand the different dishes offered by HFFL.

Their interest is in the beautiful waitresses that HFFL employs who have tried to handle their expectations and concerns.

Having scanned the environmental opportunities in the restaurant business, Mr Jacob Kawunda made a decision to recruit Ms Pauline Zavuuga. She joins HFFL as a marketing director. Pauline is an experienced graduate of hospitality having worked for 5 years with one of the five star hotels in Kampala. In her tactical plans she noted that "there is lack of confidence in HFFL from customers. The tide is starting to turn and we have a lot of work to do. HFFL has to be competitive and has to match with the current customers' tastes and preferences." She revealed that HFFL's original strategy, of continuously targeting every available and emerging market niche, is worth revisiting. She has introduced a new product called "kashera" which is reaping abnormal profits and experiencing a growing number of consumers. While the other products of HFFL target clients who consume at specific times of the day, the "kashera" is demanded from morning to evening. HFFL is reaping huge profits from "kashera" before competitors can saturate the market with close substitutes. The only complaint customers have raised is that it is only available in small packs and they are agitating for bigger packs.

Meanwhile, Spana Motors Limited (SML) has offered HFFL an additional operating space to open another food outlet in their premises so that more customers are attracted to the garage. This expansion strategy requires additional funds, but Mr Jacob Kawunda fears external funding by debt thus the principal reason why he has run the business for years using personal funds. Pauline, being a risk taker, has advised that HFFL acquires a bank loan to facilitate the further expansion strategy. She is also highly motivated to help HFFL venture into new markets with new products in the near future. She has also convinced the shareholders of HFFL that it is high time HFFL ventured into the world market starting with the East African Community Partner States.

In the meantime, Pauline seems convinced that, as they await additional funding for expansion, HFFL needs to consolidate its current markets by simply improving services offered to existing customers using approaches like packaging, pricing and promotions. But this will require team work especially from knowledgeable persons like you to help analyze HFFL's existing strategies and devise new tactics to outwit competitors.

You have been hired as a consultant to advise HFFL's management on the current performance and best way forward.

Required:

1. (a)evaluating the strategies that HFFL can implement to enhance its competitiveness with the aid of Ansoff's matrix.
2. (20 marks)
3. (b)examining the strategy evaluation process by which HFFL can make objective analysis of its strategies.
4. (16 marks)
5. (c)assessing how HFFL could use pricing as a lead variable in developing a competitive market for its new and existing products.
6. (8 marks)
7. (d)discussing the unethical practices that HFFL should avoid in pursuit of competitiveness for its new and existing products.

SECTION B

Attempt two of the four questions in this section

Question 2

Tested and Trusted Travels Limited (TTTL) is currently facing a lot of management challenges which have adversely affected its profit margins. These challenges mainly include staff demotivation and low productivity. A human resource investigation report recently carried out at the company revealed the following:

Issue 1: Handling of voluntary staff

The report indicated that TTTL mainly uses voluntary staff to manage their marketing department but they do not have any written contract. They use company IDs to identify themselves to clients. Ms. Jane Tendo who has served as a volunteer for the last 2 years disclosed that she is not recognised as a company employee yet she is among those who bring most of the customers.

Issue 2: Safety of operations staff

The report revealed that TTTL operations staff have no protective equipment like tents, raincoats and gum boots for use when on tours in forests and mountains especially during the rainy season. Employees also complained about managers not being easily accessible for help and when complaints are raised they take months to respond. One staff in this category says that what keeps them going is the team spirit where those who have share with the rest.

Issue 3: Threats by top managers

The excerpts of the report also pointed to some top managers who are about to resign. The top management at TTTL are contemplating quitting their jobs as they perceive that their current jobs are too demanding and do not allow them to spend ample time with their families.

The shareholders of TTTL are so furious that despite using a professional recruitment firm to source its staff, they have continued to experience a high rate of employee turnover. As their oversight role, the shareholders are now considering choosing from two plans:

Plan 1: To ask their recruitment partner to modify the recruitment criteria such that highly motivated employees can be sourced.

Plan 2: To terminate the contract of the recruitment partner such that TTTL manages the recruitment process in-house.

You have been recommended to the shareholders of TTTL to provide consultancy on some of the issues affecting the performance of the company.

Required:

Prepare report to the shareholders of TTTL:

1. (a)discussing how TTTL can apply Maslow's hierarchy of needs theory to rebuild the motivation of its volunteers and employees at operational level.
2. (15 marks)
3. (b)examining the different sources of recruitment that TTTL can employ, if the shareholders chose Plan 1.
4. (10 marks) (Total 25 marks)

Question 3

Best Fitness Gym (BFG) is a fitness centre that recently opened up in the Kampala Central Business District. The company occupies two floors of the building, with the sports store and gym occupying one floor each. The centre targets fitness enthusiasts who work in the City Centre and do not wish to face the evening traffic out of the city, to fitness centres located in the suburbs around Kampala. Given the target market, BFG's proposition to clients is that one should walk from their offices in the city to BFG, also located in the city centre, thereby saving the time that would have been lost in traffic jams on the way to distant fitness centres. The gym also intends to tap into clients who can afford to spend their lunch hour break at the gym or those who wish to combine their fitness routine with other errands in the city centre.

With the launch of the gym, BFG has evolved from being just a sales point for sports gear and fitness accessories to a fully-fledged fitness centre. BFG now imports and distributes sports equipment and fitness accessories like trade mills, weights, skipping ropes, exercise balls, waist trimmers among others. The business line continues being operated with a new focus on clients' physical fitness as a related service. BFG occupies two floors of the building, with the sports store and gym occupying one floor each.

The proprietors have been advised that if their aspirations are to be achieved, they need to develop a rational approach to the marketing of company products and services. Although no marketing plan is in place yet, they have decided to implement selected elements of the marketing mix, commencing with the product. They are also interested in understanding the impact of the new services being introduced on the future marketing efforts at the firm.

Required:

Write memo to management at Best Fitness Gym advising on the key;

(a) considerations in the implementation of the 'Product' as an element of the marketing mix.

(b) characteristics of services and their marketing implications.

Question 4

Top Telcom Limited (TTL) is a Ugandan telecommunications firm that has been in operation for over 16 years. One of the key reasons that have enabled the firm to sustain its superior market position is the level of innovatiion that it has maintained over the years. The managing director recently said that one of the drivers of innovation at TTL is the continued use of new information systems to improve their services to the market. TTL currently has a number of technology driven systems that it is implementing as part of its strategic efforts to remain competitive. For instance, it is in the process of procuring a new technology which will enable its clients to test their blood group and monitor their sugar levels on their android "smart" phones. This innovation will be implemented in collaboration with a Chinese firm called Biotec Limited which deals in the manufacture of revolutionary mobile phones. It is hoped that future customers will have demand for such services.

Another technology in use is the Triple Check Technology (TCT) which was recently procured to enhance the current operations on the mobile money platform. TTL has been losing money over its mobile money platform to

technology-frauds and it is hoped that the TCT will curb all these frauds. The Mobile money niche is considerably big, continuously growing, and there are no signs that this trend will reverse in the near future. Some other technologies that TTL procured much earlier and are still in use include the Zimtex which is an application that enables one to send and manage bulk messages and graphic messages. It has been widely used in the past by loyal customers in promoting their products /services. However, new external technologies like 'whatsApp' have reduced the relevance of Zimtex technologies and TTL now looks at it as costly and of little relevance to the future success. On the whole, it seems like the continued adoption of technologies will forever be an unending phenomenon for TTL.

You are the head of business development at KT Consultants Limited, a company contracted by TTL to advise on the key issues at the company.

Required:

1. (a)With the help of the McFarlan's strategic grid, critically assess the impact of different technologies on the operations of TTL.
2. (15 marks)
3. (b)Evaluate the use of IT by TTL as a source of competitive advantage to concretize its leadership position in the telecom market.
4. (10 marks) (Total 25 marks)

Question 5

Statutory Printers Corporation (SPC) is a parastatal whose mandate has hitherto been limited to printing publications such as the national gazette and the national laws and regulations. The firm's operations have been running under the Ministry of Justice and Constitutional Affairs. Following a cabinet directive, the parastatal is set to merge with the National Communications Commission (NCC) and the Uganda Broadcasting Corporation (UBC).

The news about this development was met with anger by staff across the affected institutions, particularly those at SPC. It is understood that under the impending business combination, SPC and UBC will be absorbed under the NCC whose mandate will be expanded with supporting legislation amending the National Communications Commission Act.

According to a leaked cabinet document, the drivers for the decision include reduction in duplication of roles and improvement in general operational efficiency. Although not stated explicitly, it is understood that there could also be cost saving for government, which is already considering austerity measures given the increased budget pressures arising from revenue collection shortfalls.

Staff at SPC have not taken the matter lightly, with open resistance on display. Some of the senior staff have gone as far as openly criticizing the move in the media while the staff trade union has already petitioned court against the move. It is understood that at the core of the staff resistance are fears about terminal benefits and jobs.

You have been commissioned as a consultant to advise the NCC on matters regarding change management and organizational development.

Required:

As part of your inception report, write memo to management evaluating the;

1. (a)use of the Force Field Analysis model in managing the new changes at NCC.
2. (15 marks)
3. (b)organisational development process and its guidance to the consultancy