GENTECH 4FT3: Strategic Management Final Exam Information F2023

Date and Time:

Friday, December 15, 2023 9:00-11:30am (EST-online)
• If you need a quiet place to write the online exam, the following rooms have been reserved on campus:
JHE/376 and TSH/B128
o These are drop-in and are open between 8:00AM-10:00PM
o NOTE: you must supply your own laptop (remember to bring a long power cord)

Final Exam Worth:

• 30% (total of 75 marks)
• Note: Students must achieve a passing mark on the final exam assessment to pass the course. Meaning students
must achieve an overall passing grade in all the other course assessments, plus achieve a minimum score of 15/30
on the final exam to pass the course.

Preparation Assets:
• eTextbook chapter readings • Supplemental Readings
• Topic Course Notes • Supplemental Videos
• Self-Directed Video Lectures • 1on1 GLO-BUS Status Meeting Discussions

Permitted/required:
• There are no restrictions on using the course resources (assets) when writing the exam.
• You are NOT REQUIRED to enable any online proctoring software (i.e., Respondus) or have Zoom open during this
final exam. (There will be a zoom link available if you need to contact the instructor during the exam period)
• Completing the exam in Avenue to Learn is a signed acknowledgment that you have read and understood the
McMaster Academic Integrity Policy, and all work submitted is your own. Note – All written response questions will
be submitted to associated drop-boxes on Avenue to Learn with Turnitin® plagiarism software enabled. Any
collaboration between students or other sources on exam material submissions will be enforced to the full extent
(ZERO TOLERANCE) of McMaster's Academic Integrity Policy.

Exam Format (4 Parts):

• Part 1: Written Response Scenarios (30 marks)
o Choose three (3) scenarios from the four (4) listed on pages 2-3 and be prepared to scrutinize the associated
course concept themes listed.
o In each scenario, there are connected topic themes from the course listed that will be assessed. Be prepared
on the final exam; you will be required to answer specific questions related to the strategic management
themes in the scenario's context.
o Each written response scenario is worth a total of 10 marks
o The specific questions will be given on the Submission Sheets during the exam.
o IMPORTANT: You must select the scenarios and the corresponding topic questions to be answered;
▪ If you complete more than three scenarios, only the first three (3) will be graded,
▪ If you complete all four (4) corresponding topic questions for a specific scenario, only the first three
(3) will be graded. (Note: the instructor will not choose the best of answer from your responses)

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• Part 2: GLO-BUS Written Response Scenario (10 marks)

o One mandatory written response scenario related to the GLO-BUS Simulation.
o See more explanation on page 4 of this document.

• Part 3: Case Analysis Written Response (25 marks)

o There will be a one-page case on the final exam in which you will be required to perform an analysis using
the Diamond-E framework elements
o See more explanation on pages 4-5 of this document.

• Part 4: Written Response Reflective Question (10 marks)

o Must choose and answer one (1) written response reflection question from the three (3) listed on page 6
and reflect on the concepts examined in the course.

All instructions and details for the final exam will be made available on the homepage of the GENTECH 4FT3 course shell
on Avenue. Login to Avenue on December 15th and navigate to the homepage. The final exam online drop-boxes will be
open from 8:50 to 11:30am on December 15th. How you decide to use your time is up to you, the same as with a regular
exam. Whether you do your case analysis and written response questions or vice-versa, it is up to you.

Part 1: Written Response Scenarios (30 marks)

In Part 1 of the exam's written response section, you will apply the course concepts to the scenarios provided. You are
expected to connect the course concepts to the situation explicitly. You cannot offer a generic response answer; it must
be related and informed by the scenario description.
The written response scenario questions must be completed using a supplied formatted Submission Sheet and
associated drop-boxes on Avenue to Learn, available during the exam. Links are provided on the homepage during the
exam for easy navigation. Responses must be TYPED into the specific Submission Sheets and uploaded to designated
drop-boxes in either Word or PDF format. DO NOT handwrite or screenshot your written responses for uploading to
dropbox.
PART 1: SCENARIO SELECTION
• Choose three (3) scenarios from the four (4) listed on pages 3-4 and be prepared to scrutinize the associated
course concept themes listed.
• Be prepared on the exam to answer specific questions related to the topic theme that will guide your
connection of the strategic management topic area to the scenario's context.
• The specific topic questions will be given on the Submission Sheets during the exam and will not be available
in advance.
I suggest preparing summary notes on the identified theme areas to prepare for the Scenario Written Response
section of the final exam. This way, you will be more equipped to answer the specific question on the exam. See the
written response exemplar on pages 7-9 of this document as an example.
In the exam's written response section, you will apply the course concepts to the scenarios listed below (Note – these
are the same scenarios on the final exam).

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PART 1: Written Response Scenarios (you must choose 3)

SCENARIO 1
Terry Klein is President of Klein Holdings Inc. (KHI), a large company with many different companies in various industries.
KHI has sales of $7 billion annually and operates in five (5) sectors (automotive manufacturing, robotics, biofuel, retail
clothing, and regional freight trucking). Terry is looking for cost savings across all his companies and is considering
merging several firms together between industries. At the moment, he is considering connecting all automotive
companies with all the robotics companies to have one large company with sales of $3 billion.
QUESTION THEMES TO BE EXPLORED RELATED TO SCENARIO 1:
• Strategy Framework
• Organizational Design
• Organizational Culture

SCENARIO 2
Khoah Kim Electrical Equipment Ltd (KKE) in Vietnam manufactures high-quality electric accessories such as power bars,
extension cords and LED bulbs. They want to expand into the North American market but have no brand strength. KKE
has approached Noma Inc., a company specializing in re-branding electrical accessory products under their Noma
name. Noma does not buy, sell or distribute any products from any manufacturer. Noma's business model is to license
their trusted name (for a royalty) to manufacturers who require brand awareness in a market. If Noma licensed their
name for KKE products, Noma would assign a "Noma" product number code to each of KKE's products and provide
access to North American distribution channels.

QUESTION THEMES TO BE EXPLORED RELATED TO SCENARIO 2:

• Strategy Components
• Bases of Differentiation
• VRIO Framework

SCENARIO 3
Blockbuster Video started in 1985 and was a chain of American-based DVD rental shops. At its peak in 2004, Blockbuster
consisted of 9,094 stores and employed approximately 84,300 people: 58,500 in the United States and 25,800 in other
countries. However, in 2010 it declared bankruptcy, and by 2014 all the company stores were closed worldwide. Netflix
started just over ten years later, in 1997, as a DVD rental service and used the post office to distribute DVDs to its
customers. However, Netflix has continued to evolve and prosper over the years, especially compared to its early rival,
Blockbuster. In 2020, Netflix became the largest entertainment and media company by market capitalization globally.

QUESTION THEMES TO BE EXPLORED RELATED TO SCENARIO 3:

• Strategy Components
• Environmental Analysis
• Strategic Choice

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SCENARIO 4
Walmart has a cost strategy and adds a slight differentiation in the form of online grocery shopping with free curbside
pickup, which was initially piloted in Denver in 2013. The company has expanded this offering and plans to reach
customers near its 3,100 stores by the end of 2020 with its free Grocery Pickup service. A company managing a cost
strategy has distinctive challenges from a company doing a differentiation strategy, so Walmart appears to be taking a
gradual scaling approach with its grocery service.

QUESTION THEMES TO BE EXPLORED RELATED TO SCENARIO 4:

• GM Perspective
• Strategy Frameworks
• Environmental Analysis

Part 2: Mandatory GLO-BUS Written Response (10 marks)

One mandatory written response application-focused scenario related to your GLO-BUS Simulation.

It will be completed using the supplied formatted Submission Sheet and associated drop-box on Avenue to Learn. Links
are provided on the homepage for easy navigation. Responses will be TYPED into the Submission Sheet and uploaded to
the designated dropbox in either Word or PDF format. DO NOT handwrite or screenshot your written responses for
uploading to dropbox.

Be prepared to answer specific questions related to strategic management topic areas within the context of the GLO-
BUS Simulation with some connections to the Diamond-E framework. Specific questions will be given on the
Submission Sheet during the exam.

The GLO-BUS scenario and written response questions WILL NOT be revealed until the final exam. See the written
response exemplar on pages 9-10 of this document as an example.

Part 3: Mandatory Case Analysis Written Response (25 marks)

There will be a one-page case on the final exam in which you will be required to perform an analysis using the Diamond-
E framework elements. The case WILL NOT be revealed until the final exam.

It will be completed using the supplied formatted Submission Sheet and associated drop-box on Avenue to Learn. Links
are provided on the homepage for easy navigation. Responses will be TYPED into the Submission Sheet and uploaded to
the designated dropbox in either Word or PDF format. DO NOT handwrite or screenshot your written responses for
uploading to dropbox.

The Diamond-E assessment topics and sub-topics provided on the practice case worksheets WILL NOT be provided on
the final exam Submission Sheet. You are expected to know all the components (nodes) of Environment (E), Resources
(R), Management Preference (MP), and Organizational Capabilities (C). For example: For E, you need to know that E
involves assessing PEST + Porter's 5 Forces subtopic elements. It is the same for all the other Diamond-E nodes.

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When assessing the case, it's recommended to use the following approach;
• Read the case thoroughly once
• Re-read the case identifying information you believe is essential based on the Diamond-E framework's various
components.
• When answering case analysis, ensure that you;
o Identify each link of the Diamond-E analysis with a subtitled – i.e. Resources or Management Preferences.
Make the process of reading and ultimately grading your answer easy for the instructor – it's in your best
interest.
o Also, identify the conclusion section with a sub-title.
• For your analysis, please assume the role of an arms-length industry analyst who judges whether the strategy is a
good idea or not. DO NOT perform your analysis from the point of view of an employee or manager in the company.
• Discuss ALL the Diamond-E links. Even though your analysis may conclude that the strategy is not feasible at (say)
the Management Preferences link, and therefore the analysis stops, you must discuss ALL the links for the final
exam.
• Important Note: the case will not provide complete and detailed information about all components of strategic
analysis. You must make inferences (assumptions) to support your analysis in some of your comments. When you do
this, please explain your assumptions so we know what your analysis is based on because, unfortunately, we can't
read your mind.
o For example, you could be analyzing the environment, and there is no direct information regarding the
"bargaining power of suppliers" within the industry sector. However, you should include this as part of your
analysis and state what impact suppliers have on firms in the industry based on your general knowledge –
but state your assumption about supplier characteristics clearly in your answer.
• We are looking for your ability to think and logically use Diamond-E to organize your thoughts critically.

Part 4: Written Response Reflection Question (10 marks)

Competence in any discipline starts at the individual contributor level by acquiring knowledge, skills, and experience and
reflecting on what you have learned and experienced. Unfortunately, "reflection" is something we don't usually allow
ourselves to experience because we are too busy hurrying to the next assignment that we don't pay attention
thoroughly to what we have created or experienced. We are too busy grappling with the next hurdle or course
assignment rather than analyzing why we felt a certain way about our completed work.

PART 4: REFLECTION QUESTION Choose and answer ONE (1) Reflection Question from the three (3) options listed on
page 6 and reflect on the concepts explored in the course. You can prepare this reflection before the exam.

IMPORTANT DETAILS FOR REFLECTION QUESTION:

• Ensure you relate your response to the course material and carefully consider the topics and content covered this
semester. Connections of concepts and topic areas to reflection must be clear and well explained.
• When crafting your answer, consider what a reflection IS NOT: 1) it is not just conveying information, 2) it is not
pure description, though there may be descriptive elements and 3) it is not straightforward judgment (e.g., about
whether something is right or wrong, good or bad). You need to go beyond the experience and look to make sense
of what happened in the context of other relevant events from school or work.

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• See the rubric used to assess your Written Response Reflection Question answer on page 11 of this
document.
• Your chosen reflection question answer requires a 250-word minimum and 500 maximum-word response.
• The Reflection Question answer MUST BE completed using the supplied formatted Submission Sheet and associated
drop-box on Avenue to Learn. o Links are provided on the homepage during the exam for easy navigation.
• Include the question number and topic name on the Submission Sheet.
• Responses must be TYPED into the Submission Sheet and uploaded to the designated dropbox in either
Word or PDF format. DO NOT handwrite or screenshot your written responses for uploading to dropbox.

PART 4: Reflection Questions (you must choose 1)

1. Persistence
Struggling is a normal part of the learning process. Describe an occasion in this course where you struggled with a model
or concept and initially had the wrong idea but later realized your error. In this instance, in what ways was a struggle or
the mistake valuable to your eventual understanding? Also, discuss whether struggling built aspects of character in you,
such as endurance, self-confidence, grit, competence to solve new problems, etc. and how these virtues might benefit
you in future professional endeavours.

2. Disposition toward beauty

Consider one idea or concept from the course that you have found beautiful, and explain why it is beautiful to you. Your
answer should: (1) explain the idea or concept in a way that could be understood by a classmate who has not yet taken
this course, and (2) address how this beauty is similar or different from other kinds of beauty that human beings
encounter.

3. Enjoyment
What three (3) ideas/concepts did you most enjoy from the course, and why? Choose one idea/concept of moderate
difficulty and reconstruct how you would explain it to others using real-world examples or an analogy.

To prepare for the Reflection Written Response section of the final exam, I strongly recommend you complete
your reflection question answer in advance. You can then just cut and paste your response into the required
submission sheet at the beginning of the exam period and upload it to the associated drop-box on A2L.

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Written Response Scenario Exemplars (i.e., good answers):

Your Written Response requires a definitive understanding of the course concepts identified and application-specific to
the scenario. You are expected to connect the course concepts to the situation explicitly. Meaning you cannot provide a
generic response answer; it must be related and informed by the scenario description. See Part 1 and Part 2 exemplar
examples of written response scenarios.

PART 1: EXEMPLAR SCENARIO (this scenario will not be on the final exam; this is just an example)
Google acquires glasses maker North: After its failed effort at consumer smart glasses with Google Glass, the search
giant announced the acquisition of North in June 2020 for an undisclosed amount. The Canadian company makes the
stylish Focals Smart Glasses and will join the Google office in its native Kitchener-Waterloo. "Google has always strived
to be helpful to people in their daily lives. We're building towards a future where helpfulness is all around you, all your
devices work together, and technology fades into the background. We call this ambient computing," Rick Osterloh,
Senior Vice President for devices and services at Google, stated.

QUESTION THEMES TO BE EXPLORED RELATED TO THE EXEMPLAR SCENARIO:

Strategy Components, Organizational Resources, Organizational Capabilities

Below are examples of specific exam questions to be answered connected to the themes
provided. The actual exam questions will be different for each scenario:

Q1: Identify and discuss specific business strategy components that could impact this acquisition of North by Google
(3 marks)

Q1: Potential answer areas that could be considered for: STRATEGY COMPONENTS
• Goals: Google used this acquisition to impact its hard goals, such as market position, growth and profitability.
Whereas North they have certainly added to its hard-economic value goals, such as growth, profitability, and
shareholders' return. Along with helping their employees with soft goals such as opportunities to advance in their
roles and potential increased economic security. North senior management goals for enhancing status would also be
reached now that they are part of the companies under the Google (Alphabet) umbrella.

• Core Activities: The acquisition would positively impact North's value chain elements. The direct sales and
marketing activity would now be handled directly by Google rather than North's Sales & Marketing department,
which most likely will be eliminated or substantially reduced through integration with Google. Many of North's
support activities, such as 'HR and firm infrastructure (accounting, legal, and administrative functions),' will be
phased over time as the parent company can now handle them. On the other hand, Google would gain substantial
primary activities in its ambient computing and smart glass division with North's acquisition. The primary core
critical activity would be in 'operations' that North can now provide and the secondary technological development
activity of 'research and manufacturing techniques for the augmented reality glass division.

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Q2: Discuss potential resources that both Google and North would gain with the acquisition (2 marks)

Q2: Potential answer areas that could be considered for: ORGANIZATIONAL RESOURCES
Many executives regard buying a company to access markets, products, technology, resources, or management talent as
less risky and speedier than gaining the same objectives through internal efforts.

• Google: Certainly, the driving force to acquire North was to gain research and development resources and expertise
that Google lacked to bring Google's Smart Glasses to a consumer adoption level required to be a sustainable
product for the firm. They would also gain technical talent (HR) and operational excellence resources to scale their
Google Smart Glasses product vision.

• North: They would undoubtedly gain immediate financial resources by selling their company and achieving the
corporate reputation and branding that comes from being under Alphabet's umbrella. They would no longer be
North – but more likely Google Glass North, so to speak, based in Waterloo.

Q3: For the acquisition to succeed, there must be a strategic fit between the acquirer (Google) and its target (North)
to ensure that the proposed subsidiary can contribute to the parent's strategy. Discuss the organizational fit between
the two firms through the lens of "management process" elements and "organizational culture" and identify potential
gaps to ensure the fit to help guarantee the acquisition's success. (5 marks)

Q3: Potential answer areas that could be considered for: ORGANIZATIONAL CAPABILITIES
• Management Processes:
o Decision-Making Processes: Is the board review process for acquisitions as detailed and rigorous as other
matters? Does any high-level group exist within North that can review the acquisition process and decisions
dispassionately?
o Operating Processes: Have acquiring executives (Google) clarified what the company expects from the new
subsidiary (North)? Have they defined minimum acceptable expectations for it? Have they stated these
requirements clearly as nonnegotiable points? Have they also recognized and accepted the nonnegotiable
concerns of the target company? Have both parties identified negotiable items that operating managers can
resolve after the deal has gone through?
o Performance Assessment & Reward Processes: What senior executive reward structure issues could impact
acquisition? For example, are Google's senior executive rewards based on acquiring the company or making
the best decision aligned with their strategy? Do the people involved with the acquisition in both firms
receive promotions for completing the deal? Will they be evaluated negatively if they suggest pulling out?
• Organization Culture:
o Cultural factors and organizational alignment are critical to mergers' success (and avoiding failure). Yet
executives often don't give culture the attention it warrants—an oversight that can lead to poor results.
Senior executives must learn about each company's culture as early as possible in the merger process. From
the standpoint of strategy, several key questions should be considered. What is the "secret sauce" of the
target company (North) or the factors that must be preserved because they are intrinsic to its value for the
acquirer (Google)? How can the acquirer benefit culturally from the target? How can the target benefit
culturally from the acquirer?
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o Once leaders understand the existing cultures, they can begin to manage meaningful differences in building
a single high-performing organization, i.e., identifying the gaps to shift "from" – "to" and the tactics
required.
o The next step is to codify a specific set of management practices to strengthen the new company further.
For example, one change could involve transitioning the organization (North) away from a performance-
management approach with unclear roles and responsibilities to one with very clearly defined roles and
specific performance targets for each employee. Ensure cultural artifacts, such as a new vision, mission, and
values, are reinforced further through symbols, emblems, and branding. Such artifacts are essential
prerequisites for getting culture right and must be developed with a clear idea of exactly which employee
and management behaviours they are designed to reinforce.

PART 2: GLO-BUS EXEMPLAR SCENARIO (this particular scenario will not be on the final exam; this is just an example)
In the GLO-BUS simulation, the competitive intelligence reports presented bubbles (market share), which often overlap
as companies chase the same target market. As groups realized this, they learned that financial performance generally
suffers, necessitating a change or strategy adaptation.

Example of specific final exam questions to be answered related to the exemplar scenario. On the
exam, the GLO-BUS scenario will be different, as will the associated questions:

Q1: How are these overlapping bubbles in GLO-BUS consistent with Porter's 5 Forces theory regarding the level of
rivalry between companies in the same industry? (3 marks)

Q1: Potential Answer Areas to be Considered

• Overlapping bubbles indicate that rival firms are chasing the same customers in the same industry
• There is limited customer purchasing power within a target market, and rivalry increases as firms fight to retain or
try to steal market share from other firms.
• Porter's five forces theorize that if an industry is not growing enough to expand its overall market, the rivalry will
increase as firms fight among themselves to gain more.

Q2: Provide an example of a change in strategy that a student group might do if one of the bubbles overlapped with
several other bubbles. (2 marks)

Q2: Potential Answer Areas to be Considered

• A strategy could involve moving to a sector of the industry that has less rivalry. For example, if there is a lot of
overlap in the mid-range market, the firm may move to a low-cost target market with less rivalry in that zone.
• The move to a new strategic position must include the capabilities to do so and use the Diamond-E framework to
assess the new strategy. For example, has the company made appropriate investments in R&D and upgraded
facilities to support being competitive as it moved into another target market?

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Q3: If a new strategy is to be adopted, what are some dangers of doing so? (5 marks)

Q3: Potential Answer Areas to be Considered

• Moving too quickly or dramatically to a new strategy could confuse the marketplace as to what the company stands
for re: its brand positioning (image rating)
• Competing firms may move to a new strategy as well, and the bubbles may again overlap once again in a different
zone of the market
• All functional areas (marketing, operations, R&D, finance) need to support the strategy appropriately and must be
carefully managed to change their processes and procedures to match the new strategy
• The firm may lack the resources or cumulative investments to date (cash on hand, equity capital, or R&D) necessary
for the new strategy to be successful
• Some functional areas, due to lack of co-manager buy-in, may rebel against the move and could sabotage the new
strategy through lack of sincere effort moving forward
• The firm may lack the appropriate workforce productivity elements or capabilities (workstations, robotics, etc.) to
move to the new strategy to remain competitive with rival firms. This would require careful and staged coordinated
management effort decisions to remedy

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PART 4: Reflection Question Final Exam Rubric

Criteria Target Acceptable Developing Incomplete

(Total Points: 10) (Total Points: 5) (Total Points: 3.25) (Total Points: 0)
Thoughtful answer to the Well-thought-out A sufficient attempt at Minimal attempt at No response given
given reflection question reflection. reflection. reflection
and connection to the
course. Engaging discussion Good discussion with Weak discussion with
with obvious obvious connections very little connection
connections to the to the course between statement
course. and connections to the
course

Section Points: 3 Section Points: 1.5 Section Points: 1 Section Points: 0

Completeness of response, Appropriate evidence Sufficient evidence or Minimal attempt at No response given
including examples or or artifacts given; artifacts given reflection
specific evidence/artifacts.
All elements of the question Fully discussed with Sufficient discussion, Weak discussion with
have been considered. clear connections to however, lacks depth very little connection
the topic area. and/or obvious between statement
connection and connections to the
course

Section Points: 3 Section Points: 1.5 Section Points: 1 Section Points: 0

The response is valid - all Validity is apparent, Response occasionally The response does not No response given
statements and discussions and the response stays drifts off-topic. stay on topic or is not
are pertinent to the subject on topic. directly related to the
of the question chosen intended question.

Section Points: 3 Section Points: 1.5 Section Points: 1 Section Points: 0

The written response is All requirements for Most requirements for Either too short, too No response given
error-free (spelling, writing and writing and long, or so many
punctuation, syntax) and presentation met. presentation met. spelling errors make
meets the length reading difficult.
requirements

Section Points: 1 Section Points: 0.5 Section Points: 0.25 Section Points: 0

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