1. Explain resistance to change and the reasons for resistance to change.

2. Explain the factors that can create barrier to entry to new entrants in the market.
• Economies of scale: Existing firms may have lower average costs due to large-scale
production, which makes it difficult for new entrants to compete on price.
• Product differentiation: Existing firms may have established strong brand loyalty and
customer preferences, which makes it hard for new entrants to attract customers.
• Capital requirements: Entering a market may require a large initial investment in fixed
assets, such as machinery, equipment, or research and development, which may deter
new entrants who lack sufficient financial resources.
• Government regulations: Existing firms may benefit from legal or regulatory barriers
that limit the entry of new competitors, such as patents, licenses, tariffs, or subsidies.
• Network effects: Existing firms may benefit from positive feedback loops that increase
the value of their products or services as more customers use them, creating a loyal
customer base and high switching costs. This makes it hard for new entrants to attract
customers who are already satisfied with the incumbent’s offerings. For example, social
media platforms, online marketplaces, and software applications often rely on network
effects to maintain their market dominance.
3. Describe cost leadership strategy, differentiation strategy and focus strategy.
4. What are the advantages and disadvantages of acquisitions?
5. How important is strategic planning to a business engaged in health service and to a small
building contractor?
6. A newspaper is planning for the next 5 years. What are the PESTEL factors?
7. Short notes on Baldrigde Excellence Performance Model.

(For extra content go to page 130 of SBL Study text)

8. JV Ltd manufactures cleaning chemicals (search in study material)

9. Six main areas covered by codes of corporate governance.

• Leadership: how the board of directors provides direction and oversight for the
organisation, sets the tone and culture, and ensures accountability and transparency.
• Effectiveness: how the board of directors operates, including its composition, skills,
diversity, induction, development, evaluation, and succession planning.
• Accountability: how the board of directors ensures the integrity of financial and non-
financial reporting, maintains effective internal controls and risk management, and
oversees external audit.
• Remuneration: how the board of directors determines the level and structure of
remuneration for directors and senior executives, aligns it with the long-term interests
of the organisation and its stakeholders, and discloses it transparently.
• Relations with shareholders: how the board of directors engages with shareholders and
other stakeholders, facilitates their participation in general meetings, and communicates
with them effectively.
• Social responsibility: how the board of directors considers the social and environmental
impacts of the organisation’s activities, promotes ethical and responsible behaviour, and
contributes to the public good.
10. Short notes on agency cost and 3 aspect of agency cost.

11. Short note on synergistic gains.

12. Reasons for having board committees and write about any 2 board committees.
13. Short notes on Mendelow's Stakeholder Interest.
14. Advantages and disadvantage of growth through internal development.

15. Apply five forces analysis that does garden maintenance for households.
16. The new system is too complicated (search in material).
 17. Short note on corporate strategy.

18. Reasons for agency conflict

Agency conflict occurs when the interests of the principal (the owner) and the agent (the manager)
are not aligned. This can lead to the agent acting in their own self-interest rather than in the best
interest of the principal. Some of the reasons for agency conflict are:
• Asymmetric information: The agent may have more information than the principal
about the performance and prospects of the organisation and may use this information
to their advantage or hide poor results.
• Different risk preferences: The agent may have a different attitude towards risk
than the principal and may choose projects or investments that are either too risky or
too conservative for the principal’s objectives.
• Different time horizons: The agent may have a shorter- or longer-term view than
the principal and may focus on short-term gains or long-term survival rather than
maximising the value of the organisation.
• Diversion of resources: The agent may use the organisation’s resources for their
own benefit, such as excessive remuneration, perks, or personal projects, rather than for
the benefit of the principal.
19. Advantages and disadvantages of franchising.
20. Short note on trait theory of leadership.

21. Advantages of unitary board and two-tier board.

22. A health provider has only large edge of town hospital (search in study material)
23. Different stages in strategic drift and how to avoid them.

24. Explain Porter's Diamond Model.

Porter’s diamond is a model that explains how a nation’s competitive advantage in an
industry is influenced by four interrelated factors: factor conditions, demand conditions,
related and supporting industries, and firm strategy, structure and rivalry. These factors form
the four points of a diamond, and each point can affect and be affected by the others. The
model can be used to analyse the strengths and weaknesses of a nation’s industry and its
potential for international success.
25. Write short notes on BCG Matrix.
 26. Perform threats and opportunities analysis to a passenger airline service.

27. Importance of ratio analysis.

Ratio analysis is a technique that uses financial ratios to evaluate the performance, profitability,
efficiency, liquidity and risk of a business. Ratio analysis can help to compare different businesses or
the same business over time. It can also provide insights into the strengths and weaknesses of a
business and its potential opportunities and threats. Some of the ratios that can be used for ratio
analysis are:
• Return on capital employed (ROCE): This measures how well a business uses its
capital to generate profits. It is calculated as operating profit divided by capital
employed, expressed as a percentage. A higher ROCE indicates a more efficient and
profitable use of capital.
 • Gross margin: This measures the profitability of a business before deducting any
overheads, interest or tax. It is calculated as gross profit divided by sales revenue,
expressed as a percentage. A higher gross margin indicates a higher mark-up on the cost
of goods sold and a lower cost of sales.
• Net margin: This measures the profitability of a business after deducting all
expenses, interest and tax. It is calculated as net profit divided by sales revenue,
expressed as a percentage. A higher net margin indicates a higher retention of profit
from sales and a lower operating cost.
• Asset turnover: This measures how efficiently a business uses its assets to generate
sales. It is calculated as sales revenue divided by capital employed. A higher asset
turnover indicates a higher sales generation from a given level of assets.
• Current ratio: This measures the liquidity of a business, or its ability to meet its
short-term obligations with its current assets. It is calculated as current assets divided by
current liabilities. A higher current ratio indicates a greater ability to pay off debts as
they fall due.

28. A full price airline is considering setting up a no-frills low fare subsidiary (search in study
material)

(Just for FUN )

29. A company a vehicle manufacturer is considering vertical integration (search in material)
30. What are the arguments for and against a rules-based approach?
31. What is the impact of product process service development and innovation in supporting
organisation strategy?
32. What are the 5 elements of an effective internal control system? (For more info search green text)

33. What are the different ways by which differentiation strategies can be achieved?
34. Write short notes on nominations committee.
35. Perform threats and opportunities analysis to a passenger train service.