STRATHMORE UNIVERSITY
FACULTY OF INFORMATION TECHNOLOGY
END OF SEMESTER EXAMINATION
BBIT 1205: PRINCIPLES OF MANAGEMENT
DATE: 23RD AUGUST 2019
TIME: 2 HOURS
Instructions
1. Question ONE is CUMPULSORY
2. Answer Question ONE (30 marks) and any other TWO questions (for 20 marks each), a
total of THREE Questions for 70 possible marks.
QUESTION ONE (COMPULSARY)
Read the following case study and answer all the questions asked on it below.
Facing the Challenge - General Electric: Social Responsibility and Ethics
For essentially all of its life, General Electric Corporation (GE) has been
well and continues to be one of the most admired companies in the world. It’s previous
CEO, Jack Welch, is still considered one of the best managers ever, if not the best.
Fortune Magazine named him “manager of the century” in 1999.
There was good reason for the popularity and prominence of GE and Jack Welch.
Welch was a strong believer in the things that lead to profitability and high return
for stakeholders. In the 20 years that he was CEO, he led the company from a
market value of $14billion to $400 billion. The company continues to have the highest
market value of any company in the world.
How then can one explain why GE was ranked 72nd in social responsibility in a
survey conducted of investors, high-level managers, activists, and regulators, in the United
States and Europe? But is that a problem? GE is still very successful financially.
GE has been involved in some practices that are considered questionable; the
most questionable case is the dumping of PCBs, a very toxic substance to people and
animals, into Hudson River over many years. Perhaps more troublesome is the company’s
slow pace in cleaning it up. GE’s conducting business with the country of Iran is
considered questionable by some also.
Jack Welch was known for being a very successful manager and being extremely
successful in increasing the financial value of GE. He was not known for making GE a
leader in corporate social responsibility. The current CEO, Jeffrey Immelt is trying t
change that. Is that a good move?
Source: Journal of Business Ethics, 55 No.2 (December 2004) :125 “Money and Morals
at GE,”
Required:
a) The case study indicates several goals that were desirable in the organization.
Evaluate FOUR of the goals you can trace in the narrative. (10marks)
b) Analyze FOUR Issues that the case study identifies as significant ethical issue
violated by GE
(10marks)
c) From the essential characteristics for a successful manager, learnt in class, discuss
the characteristics you would attribute to the success of Jack Welch as the CEO the chief manager of GE.
(10marks)
Total marks for question one
(30marks)
QUESTION TWO
a) Successful managers like Welch of GE are known to possess a variety of skills or
proficiencies to perform particular tasks. Describe THREE types of skills which are
necessary for mangers in an organization
(10marks)
b) Analyze the FIVE Human needs which are also referred to as Maslow’s hierarchy of
human needs. (10marks)
QUESTION THREE
Top-level managers are the highest ranking in any organization.
a) Explain the composition of the management at this level. (10marks)
b) Discuss FIVE main differences between top-level and other levels of managers in an
organization. (10marks)
:
QUESTION FOUR
Stewart (2000) defines business environment as a “process that involves ,monitoring and
evaluating changes and trends in the environment where business is undertaken.
a) Describe five internal areas or factors where a manager would be interested to be aware
of any changes taking place. (10marks)
b) Analyze five key external issues, which a manager would target to understand and
successfully respond to in a business environment. (10marks)
QUESTION FIVE
a) Discuss your understanding of the term “Business plan”
(10marks)
b) Explain the main benefits expected by a business that prepares and implements a
business plan. (10marks)