FINAL EXAMINATION
ONLINE EXAMINATION
NOVEMBER 2021 SEMESTER
COURSE
COURSE CODE
DURATION
DATE
TIME
FACULTY
PROGRAMME
LECTURER &
PHONE NO
: STRATEGIC MANAGEMENT
: PMS3393
: 3 HOURS
: 16 MARCH 2022
: 2.30 PM – 5.30 PM
: BUSINESS AND ACCOUNTANCY
: BACHELOR OF ACCOUNTANCY (HONS)
BACHELOR OF BUSINESS MANAGEMENT (HONS)
BACHELOR OF FINANCE (HONS)
BACHELOR OF HUMAN RESOURCE MGMT (HONS)
BACHELOR OF BUSINESS ADMINTRATION (HONS)
: MDM. SHARIFAH HILMI SYED ABDULLAH 0199508980)
: MDM NORJIAH MUSLIM (0173501967)
INSTRUCTIONS TO CANDIDATES.
This paper consists of ONE section:
Section A – case study questions (3 questions)
Answer all questions in Section A.
Read CAREFULLY the instructions for each section.
Students must ensure that they have stable internet connectivity during the examination
period.
Students must ensure that they include their full name and student identification number
at the top of the first page of the answer document.
Students must submit the answers via the quiz activity or file submission in Words
/PDF/JPEG format via assigment activity allocated to the exam before the published
submission deadline.
DECLARATION:
I hereby declare that all the answers I have submitted is entirely my own work, and I
understand that there are disciplinary penalties for cheating, plagiarism and inappropriate
collusion.
This Question Paper consists of 17 PAGES.
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SECTION A: CASE STUDY QUESTIONS (100 MARKS)
ANSWER ALL QUESTIONS
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QUESTION 1 (26 MARKS)
Below is the mission statement for the World Wildlife Fund for Nature (WWF)
posed by a strategist and the mission statement of its competitors as given by the
textbook:
World Wildlife Fund (WWF) for Nature
“The WWF strives to implement innovative wildlife protection projects by
partnering with climate savers on a global initiative, ensuring the perpetuity
of renewable natural resources and biological diversity by strategically
focusing on conserving critical places and critical species that are
particularly important for their habitat or people. Furthermore, we strive to
educate and grow to inspire involvement in preservation that will ensure our
objectives continue.”
The Nature Conservancy (www.nature.org)
“Building upon a strong foundation of science, partnership and field
demonstration, CI empowers societies to responsively and sustainably care for
nature, our global biodiversity, for the well-being of humanity.”
Wildlife Conservation Society (www.wcs.org)
“WCS saves wildlife and wild places worldwide through science, conservation
action, education, and inspiring people to value nature.”
a.
Evaluate the World Wildlife Fund for Nature (WWF) 's mission statement
according to the major characteristics of a good mission statement. Is this
mission statement a good one? Justify your answer.
(18 marks)
b.
Do a comparison between The Nature Conservancy’s mission statement and
Wildlife Conservation Society's mission statement based on the characteristics
of a mission statement.
(8 marks)
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QUESTION 2 (36 MARKS)
a.
Given below is the competitor's profile matrix (CPM) for the World Wildlife
Fund for Nature (WWF) and its two nearest competitors, as mentioned in the
case study.
Table 1:Competitive Profile Matrix
WWF
THE NATURE
CONSERVANCY
CONSERVATION
INTERNATIONAL
Weight
Critical Success Factors
1. ____________
0.10
3
4
1
2. ____________
0.20
3
4
2
3. ____________
0.20
3
4
2
4. Collaborative efforts
0.10
3
4
1
5. Revenue
0.05
2
4
1
6. Employee dedication
0.10
3
2
1
7. Financial position
0.05
2
4
1
8. Expense efficiency
0.03
3
2
1
9. Market Share
0.03
2
4
1
10. Project quality
0.05
3
4
2
11. Fundraising expenses
0.03
3
4
1
12. Project quality
0.06
3
4
1
Total Score
1.00
i.
_____
_____
Weighted
Score
Rating
Weighted
Score
Rating
Weighted
Score
Rating
(CSF)
_____
Identify the THREE (3) missing critical success factors (CSF number 1 –
3) that are very important for these non-profit organizations to compete.
(3 marks)
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ii.
Calculate the weighted and total scores for each organization.
(12 marks)
iii. Explain your CPM according to the ranking in the industry and suggest
the area of improvement for WWF.
(4 marks)
b.
Below is the financial ratio analysis for WWF and its major competitor as
calculated by one analyst.
Table 2: Financial Ratio Analysis
WWF
The Nature
Conservancy
Current Ratio
2.34
6.43
Total Assets Turnover
0.59
0.17
Accounts
14.55
Receivable
Turnover
25
Average Collection Period
Comment
5.02
73
Net Profit Margin
4%
32%
Return on Total Assets
(ROA)
3%
5%
Return on Equity (ROE)
4%
6%
i. Make a comparison and comment on each ratio according to the financial
perspectives.
(14 marks)
ii. Compare the overall financial performance of WWF with The Nature
Conservancy.
(3 marks)
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QUESTION 3 (38 MARKS)
Given below are the internal and external audits of WWF.
External Audit
Opportunities:
1. Commercial and non-profit partnering - 53 Fortune 100 companies
report savings of $1.1 billion annually through energy efficiency and
renewable energy.
2. President Obama committed the US to cut emissions 26 - 28 % from
2005 levels. Chinese President announced China's first cap on emissions
by 2030.
3. Over $10 billion in US funding was secured in FY11-FY14
congressional appropriations for Development Assistance and the
Global Environment Facility.
4. Donations worth a total of $26.3 billion across seven regions - up
from $19 billion in 2012 - suggest that major philanthropy is
becoming more prevalent.
5. The world's highest nominal GDP, the US boasts the highest per capita
GDP - $14.66 trillion.
Threats:
1. The World Bank reports that 80 countries now have water shortages,
and two billion people lack access to clean water due to the decline in
the freshwater supply.
2. Motor vehicles cause most air pollution, releasing more than 60% of the
dangerous gases into the air. In large cities cars produce 80% of the air
pollution.
3. Globally, land degradation affects 33% of the Earth's land surface,
with consequences hitting more than 2.6 billion people in more than
100 countries.
4. Threats to biodiversity and ecosystems include over-harvesting of plant
and animal species, introducing non-native species, and pollution.
5. Panel on Climate Change (IPCC) forecasts a temperature rise of 2.5 to 10
degrees Fahrenheit over the next century.
Internal Audit
Strengths:
1. WWF is in the top tier for revenue conversion to programs - WWF
spent $224.46 million on programs supporting its mission in 2014,
representing 77% of its total revenue.
2. Operationally efficient in administration expenses (below 15%) and
fundraising expenses (below 10%) compared to industry norms.
3. WWF had an expense of $0.0985 for each $1.00 raised - placing it
as one of the top non-profit organizations that are efficient with
advertising to raise capital.
4. WWF & The Coca-Cola Company - emissions levels from the
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company's operations in developed countries were 9% below 2004
baseline emissions, ahead of the 2015 goal of 5%.
5. A combined effort with Coca-Cola - first two years of Arctic Home
raised over $3 million in donations for WWF's work on this initiative.
(Polar bear initiative)
Weaknesses:
1. In-kind contributions have decreased - $64.30 to $46.96 from 2013
to 2014, indicating a significant decrease in potential resources at
WWF's disposal
2. 2014 Annual Report shows that while individuals contributed 32% of
total revenue, corporations only contributed 4%
3. Less funding was diverted to public education of conservation in 2014
($64.17 million) compared to 2013 ($81.74 million)
4. Individuals and groups poaching and polluting do not see the WWF as
a threat - Rhino poaching in South Africa increased from 13 to 1,004
between 2007 and 2013.
5. Net income on commercial building operations decreased from $1.16
million (2013) to $0.25 million (2014)
a.
Develop a SWOT Matrix for WWF and further suggest;
i. TWO (2) SO strategies,
ii. TWO (2) WO strategies,
iii. TWO (2) ST strategies,
iv. TWO (2) WT strategies.
(34 marks)
b. The global condition of wildlife and wild areas has steadily declined, especially
in the ocean. The WWF's 2014 Annual Report states that 60 per cent of the
world ecosystems, including water supplies, fish stocks, and fertile soils, are in
decline.
Propose TWO (2) strategies from your SWOT analysis to overcome these issues.
(4 marks)
END OF QUESTION PAPER
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