QUESTION ONE (30 MARKS)
Required:
Considering that strategic management is an integral part of project management:
a) Describe the various organizational levels that would be involved in the strategy formulation. (9
marks)
Corporate level strategy
Sets long term direction for the total enterprise: By formulation of portfolio planning model,
growth and diversification strategies, retrenchment and restructuring, global strategies and
cooperative strategies. It focuses on what business the organization going to enter the market.
For instance, a company may have three distinct lines of business projects investments,
namely, automobiles, steel, and tea. The corporate level strategy will outline whether the
organization should invest in or withdraw from each of these lines of businesses, and in which
business unit, investments should be increased, in line with the vision of your Company
(Bruin, 2020).
Business level strategies
This level answers the question of how you are going to compete or invest. It plays a role in
those organization which have smaller units of business and each is considered as the strategic
business unit (SBU) (Bruin, 2020).It entails defining the competitive position of a strategic
business unit. This level is based upon the standard strategies of competitive strategy model,
cost leadership, differentiation, and focus.
Functional level strategy
This level focuses on how an organization is going to grow. It outlines daily actions including
allocation of resources to deliver corporate and business level strategies. At functional level
involves putting in short-terms functional objectives, the attainment will lead to the business
level strategy.
For instance, the marketing strategy for a tea business which is following the differentiation
strategy may translate into launching and selling a wide variety of tea variants through
company-owned retail outlets. The realization of the functional strategies in the form of
quantifiable and measurable objectives will result in the achievement of business level
strategies as well (Bruin, 2020).
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b) Why is it essential to involve strategists in strategy implementation activities?
Strategists are the employees within the corporation who have
(4 marks)
skills of planning and
regulations/policies or actionable constructs to assist them attain a competitive advantage (Francis,
2017). It is essential to involve strategists in strategy implementation because, they are individuals
who give you huge commercial strategies, and they only know how to implement the best and produce
results from them. They also know how to control them efficiently and when to take necessary
corrective actions. The strategy includes planning the goals, methods to achieve them, resources to
use, and how to use them in the best fashion, and looking back for feedback and control (Francis,
2017).
c) Discuss the various types of the external environment that would affect the implementation of the
project.
i.
(7 marks)
Political- The extent to which a government may have an impact on the economic system and
thereby influence project implementation. This consists of government policies, political stability,
and trade and tax policy (Messineo, 2023).
ii.
Economic: How economic situations shift supply and demand directly have an effect on an
company projects implementation. This includes financial growth or decline, and fluctuations in
interest and inflation prices (Messineo, 2023).
iii.
Social: rising tendencies and styles in population analytics, demographics, and customer behavior
may additionally suggest changes in consumer wants and needs; it may also display a need for
change in the place of works (Messineo, 2023).
iv.
Technological: How innovation and development evolve a market or industry. This includes
automation, technology awareness and adoption rates, and new services or products (Messineo,
2023).
Environmental: The ecological and environmental components that have an effect on a company’s
v.
projects implementation or customer demand. (Messineo, 2023) This consists of access to
renewable resources, weather or weather modifications, and corporate duty tasks.
vi.
Legal: The current legal allowances or requirements within countries or territories in which
an organization operates. This includes health and safety requirements, labor laws, and
consumer protection laws (Messineo, 2023).
d)

Explain the possible causes of failure in the above project.
(5 marks)
Complexity of the project If strategic plans aren’t capable of being effectively communicated
because of the complexity of the project, then team members cannot be expected to carry out the
project as intended.
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
Financial estimates are significantly inaccurate-Underestimating financial requirements. If KPLC
could have underestimated the financial requirement or having project without adequate financial
controls and checks in place, it will lead to higher cost or project being incomplete. This can not
only increase financial costs, but can also extend to customer satisfaction and project reliability.

If project plan was based on insufficient data-Without a proper tool in place to help teams flexibly
modify plans as a project evolves and more information becomes available, If plan was based on
wrong assumptions due to insufficient or misunderstood data will drive the project towards
disaster from the start, particularly if there is no other alternative in place and no means with
which to easily modify the plan before the project slides out of control.

undefined team roles and responsibilities-Unclear roles for project implementers between the two
teams will result in delays and waste of resource e.g time and finance.

Staffing requirements are not fully understood-Human resource a crucial part of the project
planning process, and, if not carefully implemented, incorrect assumptions and estimates made
regarding human resource requirements, including the number, role, skill, and timing perspectives
can impact project timeframe and overall bottom line costs thus delaying project or being
incomplete.

Project scope inflexible to changes-Project might not go as expected. It’s never a good thing when
the scope of a project changes and it can usually be avoided through proper planning. Without
flexibility to adopt alternative plans, project goals will be threatened.

lack of focus and resources- Project may be existing on paper to please the public, with a good
strategic plan which focuses, clearly defined number of goals, objectives, and programs. Adequate
resources allocation to accomplish these goals and objectives outlined in the plan and execution
of the plan this project will face all of challenges.
e)
What are the five 5 steps in making the strategic decision successful? (5 marks)
Strategic decision making refers to identifying the best way to achieve goals and objectives. Strategic
decision making is used in competitive companies and is intended to give a company a competitive
advantage by transitioning its scope and the way the company runs its activities. The five steps in
making strategic decision successful are;

Gather Information. Initial stage involving defining the problem that needs strategic decision to
be solved. Collecting, scrutinizing and providing information for strategic decision , gathering
from the internal and external factors influencing the organization by gathering data from
stakeholders who are affected by the problem. Research, benchmarking studies, interviews with
credible sources, observed events (EU Business School, 2021).
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
Formulation of strategic decision-This is developing and evaluating options coming up with wide
range of options or selecting options that portrays promise. Weighing merits and demerits of each
option. While weighing options, cost of implantation, potential team morale loss, time to
implement, if it meets the standard and how the solution is practical need to be taken into
consideration. Predict the options’ consequence and the worst solution (EU Business School,
2021).

Choose the Best Action-Select the option that best meets the decision objective. After weighing
up the option through matrix analysis, considering the data and intuition the be course of action is
decided. Compromising on competing decision may yield be decision (EU Business School,
2021).

Strategic decision Implementation– Step-by-step process or actions for solving the problem by
bring strategic decision into practicality. Involves notifying to stakeholders progress through
proper communication method, resource identification and allocation. Setting time line for
implementation

Monitoring and Evaluation of implanted decision strategy - Final step of strategic decision.
Monitoring and evaluation activities are: appraising the implemented decision against plan strategic
decision, measuring performance against standard or benchmark , and taking remedial /corrective
actions. (EU Business School, 2021) Evaluation makes sure that the organizational strategy as well
as its implementation meets the organizational objectives.
f)
What is the role of the project stakeholders?
(5 marks)
Stakeholder is anyone who can positively or negatively influence the project. Role of stakeholder are;

The creation of the project charter and the project scope statement.

Project management plan development and approving project changes and being on the change
control board.

Identifying constraints, identifying requirements and risk management. The stakeholders may also
become risk response owners.

Due to their experience in project perspective, they contribute ideas/ decisions that help the project
manager meet the project objectives and goals.

Stakeholders can mobilize necessary resources and materials for project implementation.
If stakeholders don’t like the results, the project can often be considered a failure, even if all goals
were met. Project managers should keep stakeholders happy by providing strategic stakeholder
management, this involves direct and timely communications and information their expectations and
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time frame of the project. Such management builds trust and confidence amongst project stakeholders
and affirms their buy-in, or positive cooperation.
g) Describe the 5 steps in the change management process.

(5 marks)
Preparing employee for change-The first step in preparing the organization for successful change
implementation. Preparing organization involves both culturally and logistically. Cultural
preparation comes first before logistic. Managers point of focus is helping employees to realize
the importance of change (Miller, 2020) .This is through awareness of various problems and
challenges organization is facing thus resulting to change of direction or from status quo so that it
can increase performance.

Crafting of Vision and plan for change-Once the organization is ready to embrace change,
managers must develop a thorough and realistic plan for bringing it about (Miller, 2020). Involves
developing strategic goals which will assist the organization work toward, Key performance
indicators to measure success or baselines compare performance. Outlining project team and
stakeholders to manage the implementation of change is highly important. The scope of change is
also important to be defined by giving what falls inside and what falls outside. It is important to
have a structured approach, the plan should also account for any unknowns or roadblocks that
could arise during the implementation process and would require agility and flexibility to
overcome.

Changes implementation-Steps outlining implementation of change will guide the process.it will
involves changes to company structure, strategy, system, process, employee behaviors and other
necessary aspects as indicated change initiation part (Miller, 2020). At this stage change managers
focuses on empowering employees to take necessary steps so that organization goals are achieved.
They should be keen to anticipate barriers, prevent, remove or mitigate. Constant communication
of the organization’s vision is critical throughout the implementation process to remind team
members why change is being pursued.

Embedding changes within company culture and practice. Making changes to be norms is
important. Managers have to prevent falling back to prior state or status quo. Good plans and
preventions measures are important for organizational change related to business processes such
as workflows, culture, and strategy formulation because without enough plans employees
backsliding is inevitable. New organizational structures, controls, and reward systems should all
be considered as tools to help change stick (Miller, 2020).
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
Review Progress and Analyze Results-After implementing and making change as norm within an
organization, it important to conduct review. It helps the organization leadership to determine
whether a change was a success, failure or mixed result. It can also offer valuable insights and
lessons that can be leveraged in future change efforts (Miller, 2020).
QUESTION TWO (10 MARKS)
Critically examine the ethical issues in strategic management.

(5 marks)
Self-Gain One of the biggest problems companies face when it comes to corruption occurs when
executives or other powerful people use their power to effect transactions that benefit them and
harm the company or its stakeholders, including shareholders and workers (Bianca, 2017).
Companies should develop a code of ethics that holds all employees accountable for their own
decisions, including prohibiting them from using company business relationships, knowledge,
equipment and other resources to personal financial gain.

Social impact - A business strategy may require finding the most profitable way to produce goods
for the business (Bianca, 2017). For example, outsourcing to factories in developing countries can
save companies a lot of money because labor and materials are cheaper; however, if workers are
employed in shops where wages are extremely low and working conditions difficult, the social
impact on the company's brand may not be significant. A company must reflect its social
responsibility by taking into account the ethics of the services it pays for both domestically and
abroad.

Environmental Impact -Companies also take actions at one or more of their operating sites that
have a negative impact on the natural environment, such as pollution and the extraction of natural
resources (Bianca, 2017). By using the standards of an environmental management system,
companies can make better decisions and protect the environment. The system may include
standards shared by companies in the same industry or business sector, including compliance with
laws and regulations, research into the health and safety impacts of business practices and
products, and open collaboration with the public and government agencies to meet acceptable
standards.

Public Interest -Business can grow and operate in such a vast area that the amount of resources
they control makes them more powerful than a small, resource-poor country (Bianca, 2017). In
this way, corporate decisions that appear to benefit one part of the company and serve the public
and economic interests of one country may harm the interests of another. Companies must
examine the implications of their business strategies across borders, within regions and within
small communities to determine if they are in the public interest.
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QUESTION THREE (10 MARKS) (10 marks)
Describe the 5 steps of the strategic management process.
(10 Marks)
Clarify Your Vision-The purpose of goal setting is to outline business vision. This is the first stage
involves identifying three key areas: Firstly, defining short- and long-term objectives. Secondly,
determine the process to achieve goals. Finally, tailoring the process for employees, giving everyone
a task they can complete successfully. During this process, remember that your goals should be
detailed,
realistic,
and
aligned
with
the
values
of
vision.
Typically, the last step in this phase is to write a mission statement, which succinctly communicates
your goals to shareholders and employees (Clayton, 2019).
Environmental Scanning - Environmental scanning is the process of collecting, analyzing and
presenting information for strategic purposes, analyzing the internal and external factors affecting an
organization. Once the required data is collected, management continually assesses it and strives to
improve its resource data. The analysis should focus on understanding the needs of the business as a
sustainable entity, its strategic direction, and identifying initiatives that will help the business grow.
Checking to see if there are any external or internal environment that could affect business goals.
Internal issues of the organization will outline strengths and weaknesses while the external issues
define threats and opportunities that may arise along the way (Clayton, 2019).
Strategy Formulation- Strategy formulation is the process of determining the best course of action
to achieve organizational goals, thereby achieving the organizational objective. After performing an
environmental analysis, managers at this stage develop corporate, business, and functional strategies.
The issues facing business should be prioritized based on their importance to success. Once the
priorities have identified, strategy development starts . Since business and economic conditions are
fluid, it is essential at this stage to develop alternatives for each stage of the plan (Clayton, 2019).
Strategy Implementation– Strategy implementation is about making the strategy work as intended
or putting into practice the strategy chosen by the organization. Implementing the strategy involves
designing organizational structures, allocating resources, If the overall strategy does not match the
current business structure, a new structure should be put in place at the start of this phase. Everyone
in the organization needs to be clear about their responsibilities and obligations and how they fit into
the overall goals. In addition, all resources or funding for the joint venture must be secured at this
stage. Once the financing is in place and the workforce is ready, execute the plan (Clayton, 2019).
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Strategy Evaluation- This is simply strategic assessment, it is the last step in the strategic
management process. The main strategy evaluation activities are to assess the internal and external
factors that are driving the current strategy, to measure performance and to take corrective action.
Evaluation ensures that organizational strategy and its implementation meet organizational objectives.
Monitoring internal and external issues will also allow to respond to any major changes in the
company's environment. If found that the strategy is not driving the business to achieve its goals, take
corrective action. (Clayton, 2019) If these actions fail, the strategic management process is repeated.
Since internal and external issues are constantly evolving, all data obtained during this phase should
be retained to aid in the development of any future strategy.
QUESTION FOUR (10 MARKS)
Discuss Michael Porter’s five factor model of competitive forces and how it applies to
institutions of higher learning in Kenya.
(10 marks)
Michael porter is an American academic who has written widely in business strategies and economics
theories. Porter’s 5Forces is a time tested strategy framework that consider five competitive forces.
Competition in the industry-The first of Porter’s 5 forces is the number of competitors in institutions
of higher learning in Kenya. Michael porter is indicating that competitors are the core of this strategy
frame work. The Porter’s 5 Forces is shown in below diagram, He place competitors in the centre and
the other four forces are placed around.
When institutions operates in an area in which there are other institution offering similar courses, all
have lesser power. This is because many are trying to get more students. This is a situation students
have more options to choose from. Therefore, students will go for the best, the cheapest, the coolest
and so on. On other hand if an institution of higher learning offering courses that are not found in
other institutions and marketable courses for that matter e.g. medicine, nursing etc. Student taking
these courses have to pay more school fees. The reason is in absence of another alternative institutions,
students will have no choice but to join that institution offering those particular courses with higher
fee.
Threat of new entrants-The second of Porter’s 5 forces is. This is emergences of new competitors.
Due improve in technology, availability of communication networks and internets, online leaning is
well established and was accelerated by Corona pandemic. Students in Kenya can learn/study in
higher learning institution in overseas countries, this is a threat of local institutions. Local institution
can carb this threat by investing in the institution infrastructure to attract more students through online
learning. So, in such cases, the threat of new entrants becomes low .
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Bargaining power of suppliers-The third of Porter’s 5 forces is the power of suppliers. suppliers are
the ones organizations or individuals offering materials, information, or knowledge that permit an
organization to create product and provide services. Governments and private foundations that
provide funds and economic resources for universities are the suppliers of the universities .
Academicians/lecturers are the other suppliers who provide knowledge for these universities. High
schools are suppliers to universities because they provide the students. Suppliers affect institutions of
higher learning. If we have many lecturers for a particular course, and institution has options of
acquiring a lecture without much effort. On the other hand you can find courses where a lecturer
dictates what he/she wants because they are few. Also, if high schools channel few students to
universities, institutions will scrabble for available few students, and if high school channel many
student, universities have option during selection and they can even raise the cut off points.
Bargaining power of buyers-The fourth of Porter’s 5 forces is the power of customers. Michael
porter expounded the role of customer in this strategic frame work. In a case of higher education
institutions in Kenya, if institutions only serves a small number of students, then students have more
power to choose university with lower fee because of many options choice. Therefore, institutions
have to tailor basing on the small number of students by reducing fee or cut off marks to attract student
. On the other hand, if universities have very high number of students, institutions can dictate cut off
marks and fee.
The threat of substitutes The fifth of Porter’s 5 forces is the threat of substitute products. A company
can sell a very popular product that generates high profits, but with a new product in the market with
same taste and cheaper can downfall the product. When it comes to higher education, students are
increasingly educated with a consumer mindset. This results in grade inflation to better accommodate
special needs. Four-year degrees are now spread with gap years, two-year courses, online courses,
summer courses, and life experiences and employer short course trainings to elevate employees to do
graduates jobs. All of these competing options are driven by rising traditional tuition fees, rising
student debt, declining returns on investment, and pressure on colleges to adapt to ever increasing
changes in student demand.
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Threat of New
Entrants
Power of
Suppliers
Competitors in the
Industry
Power of
consumers
Threat of
Substitutes
References
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https://bizfluent.com/info-8293943-ethical-issues-strategic-management.html
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https://smallbusiness.chron.com/five-stages-strategic-management-process18785.html
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from
Clearpoint
strategy:
Messineo, R. (2023, 02 22). How To Identify External Factors That May Affect Your Strategic Plan.
Retrieved
from
www.clearpointstrategy.com:
https://www.clearpointstrategy.com/blog/external-factors-that-affect-a-business
Miller, K. (2020, 3 19). 5 Critical Steps in the Change Management Process | HBS Online. Retrieved
from Business Insights : https://online.hbs.edu/blog/post/change-management-process
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