INSTITUTE OF BANKERS IN MALAWI
ADVANCED DIPLOMA IN BANKING EXAMINATION
SUBJECT: STRATEGIC MANAGEMENT (IOBM – AD313)
Date: Tuesday, 3rd May 2011
Time Allocated: 3 hours (08:00 – 11:00 am)
INSTRUCTIONS TO CANDIDATES
1
This paper consists of TWO Sections, A and B.
2
Section A consists of 4 questions, each question carries 15 marks.
Answer ALL questions.
3
Section B consists of 4 questions, each question carries 20 marks. Answer ANY
TWO questions.
4
You will be allowed 10 minutes to go through the paper before the start of the
examination, you may write on this paper but not in the answer book.
5
Begin each answer on a new page.
6
Please write your examination number on each answer book used. Answer
books without examination number will not be marked.
7
DO NOT open this question paper until instructed to do so.
SECTION A
(60 MARKS)
Answer ALL questions from this section.
QUESTION 1
(a)
Briefly explain the difference between tactics and strategy in business.
(5 marks)
(b)
Describe the strategic management process and explain the need for integrating
analysis and intuition in strategic management.
(10 marks)
(Total 15 marks)
QUESTION 2
(a)
Describe the nature and role of vision and mission statements in strategic
Management.
(10 marks)
(b)
Formulate a mission statement of a newly established bank in your area and
evaluate it.
(5 marks)
(Total 15 marks)
QUESTION 3
(a)
In recent years, we have seen expansion of the banking sector through the
establishment of new institutions resulting in stiff competition in the market. As
such, each organization needs to review its strategic capabilities for competitive
advantage. Explain the nature and importance of strategic capability in view of
the above statement.
(10 marks)
(b)
Banks, just like any other organizations require continuous assessment of their
corporate capabilities. Why is innovation auditing an integral part of this process?
(5 marks)
(Total 15 marks)
QUESTION 4
Outline and discuss the Intensive Strategies that a firm requires for its competitive
position with existing products on the market environment.
(Total 15 marks)
A qualification examined by the Institute of Bankers in Malawi
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SECTION B
(40 MARKS)
Answer ANY TWO questions from this section.
QUESTION 5
Strategy implementation is the stage in strategic management that is essential because
successful strategy formulation does not guarantee successful implementation.
Discuss the statement and relate your views to the current situation in the banking
sector.
(20 marks)
(Total 20 marks)
QUESTION 6
A bank teller strongly disagrees with the bank manager on ethical grounds when the
bank manager overrides one of the requirements for a new customer who came to open
an account and happened to be his personal friend.
Discuss this statement in light of the nature of business ethics and ethical dilemma.
(20 marks)
(Total 20 marks)
QUESTION 7
(a)
There is a diverse view that organizations can be arenas for conflict on
individuals and groups. Briefly outline the nature of conflict and what employees
usually battle for within the organization.
(10 marks)
(b)
Discuss the main factors that might be helpful for managers to consider when
dealing with resistance to change.
(10 marks)
(Total 20 marks)
A qualification examined by the Institute of Bankers in Malawi
3
QUESTION 8
Effective leaders are willing to make candid and courageous yet pragmatic decisions
that may be difficult, but necessary in light of internal and external conditions facing the
firm.
Discuss this statement in the strategic leadership and strategic management practice.
(Total 20 marks)
END OF EXAMINATION PAPER
A qualification examined by the Institute of Bankers in Malawi
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