Referring to the recommendation in Business-Level Strategy or Corporate-Level Strategy, what are the TOP TWO Expense Items (i.e. the two expense areas that you as a leader should pay the most attention to). (6 marks, max 3 marks each)

In answering this question, you do NOT need to do any calculation or include any figures (if you dont have them on hand). Instead, you should clearly explain why you think they are the top two expense items (i.e. the importance of managing these two expense items in recommendation implementation).

Your recommended strategies may involve additional costs on manpower, R&D, venues, distribution channels, production, licences, etc. In answering this question, you need to elaborate

(i) why (and where) these additional expenses will be incurred and

(ii) why these are important expenses requiring attention from senior leaders.

For those of you who choose status quo for your chosen type of strategy, it is understood that no additional expenses may be incurred. In this case, you need to describe the two expense items which your case organization should pay special attention. You should focus on why these two expense items are so important, either at present, in the near future or both? You do not need to do any calculation or include any figures. Instructors want to know your sensitivity to cost implications when making strategic recommendations.