CONFIDENTIAL BM/JAN2013/MGT657/658/650/649/HRM580

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE STRATEGIC MANAGEMENT/BUSINESS POLICY

AND STRATEGIC MANAGEMENT/BUSINESS
POLICY AND DECISION MAKING
COURSE CODE MGT657/658/650/649/HRM580
EXAMINATION JANUARY 2013
TIME 3 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of two (2) parts : PART A (Case study: 4 Questions)
PART B (5 Questions)

2. Answer ALL questions from PART A and any three (3) questions from PART B in the Answer
Booklet. Start each answer on a new page.

3. Do not bring any material into the examination room unless permission is given by the
invigilator.

4. Please check to make sure that this examination pack consists of:

i) the Question Paper

ii) an Answer Booklet - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 5 printed pages
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PART A

Tomei MD: Gold and jewellery business is not all glitter

It is often said that building on a business is more difficult than starting a new one and this
was the case for Ng Yih Pyng when he took over his family-owned Tomei Gold & Jewellery
(M) Sdn Bhd.

A finance graduate who also holds an MBA from Iowa State University, Ng found it tough
stepping into his father Tan Sri Ng Teck Fong's shoes initially as the business was already
doing well. Now group managing director of listed Tomei Consolidated Bhd, Ng said running
a gold and jewellery business is not all glitter and glamour but involves a lot of hard work.

Further, Ng said he did not believe in dramatic changes in the working environment.
Therefore, when he took over, he retained the way the business was run under his father's
stewardship.

"I understand people do not like dramatic changes when a new boss takes over so I just
retained the business as it was then. But I slowly brought in my own vision and practices," he
added. "We also sent our staff for training and started to build up the team. This business is
not just about me. It is about the team," said Ng, who believes in empowering his staff.

To get a better grasp of the business, he worked in every department, rising from director to
MD in 2003, then group MD in 2006. Although he has run the group for more than a decade
now, Ng still refers to his father for guidance and pointers from time to time. He is still
practicing what his father taught him - never rush to grow the business but grow it in a
steady manner.

"We are very careful in our ventures as we believe in having sustained growth, even if the
growth rate is a bit smaller," Ng stressed.

Tomei is one of the major local jewelers and has a retail network of more than 55 outlets
under the Tomei Gold & Jewellery, My Diamond, T.H Jewellery and Le Lumiere brands. The
group also has five outlets in Vietnam and six in China.

Ng said Tomei, founded by his father in 1968, celebrated its 40th anniversary last year after
surviving two economic crises and was still going strong. He said the group would weather
the current economic crisis and hoped to maintain its turnover and achieve a slight growth in
net profit this year.

For the year ended Dec 31, 2007, Tomei made a net profit of RM12.6mil on revenue of
RM223.8mil. For the nine months ended Sept 30, it recorded a net profit of RM14.7mil
against RM8.7mil in the previous corresponding period.

"We are not so badly affected by the economic crisis possibility due to the festive season.
Typically, sales booms during the second half of the year," Ng said, adding that gold
remained a good investment option.

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"We are also competing for the consumer ringgit with other stores," he added. "We had
already planned our cash-flow last year when the crisis started in the US so that the group
can ride through the crisis," he said.

Going forward, Tomei will open more retail outlets and improve its information technology
system. The group has budgeted RMIOmil for capital expenditure this year.

"As a retailer, I cannot be sitting around doing nothing. When there is a crisis, there is an
opportunity and the fittest survives. It is good to be conservative but if we do not do anything,
people might forget us. Either we grow or we stop operation. A lot of people are talking about
cutting cost and retrenchment of late. Personally, I think retrenchment is quite demoralising
for the staff," Ng said.

"To some our firm's gearing is relatively low, but to us it's very high. In fact, it is the highest in
our history. We have to do something about it since we are here for the long term. We hope
to grow Tomei for the next 100 years." he said.

Source: http://biz.thestar.com.my/news/story.asp?file=/2009/2/23/business

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QUESTION 1

Based on the above case, briefly state at least five (5) indicators that show Tomei strategies
are more likely well-conceived and well-executed.
(10 marks)

QUESTION 2

Discuss four (4) possible reasons why the founder and managing director of Tomei are very
careful in their business ventures, locally and abroad.
(10 marks)

QUESTION 3

Discuss two (2) feasible alternative strategies performed by Tomei and justify why these
strategies were chosen.

(10 marks)

QUESTION 4

If you were the managing director of Tomei, would you consider retrenchment as a cost-
cutting measure for Tomei? Give your rationale.

(10 marks)

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PARTB

QUESTION 1

a) Explain why organizational structure is so important in strategy implementation.

(10 marks)

b) Describe four (4) reasons why conflict may occur during objective-setting activities.

(10 marks)

QUESTION 2

a) Elaborate the roles of managers with respect to resources, capabilities and value
chain activities in ensuring profitable business performance.
(14 marks)

b) Compare and contrast business and military strategy.

(6 marks)

QUESTION 3

In overseeing the management of a firm, a board of directors operates as the

representatives of the firm's stakeholders. Explain four (4) major duties and responsibilities
of board of directors.

(20 marks)

QUESTION 4

a) Policies play an important role in strategy implementation. Elaborate this statement.

(10 marks)

b) How can an organization's reward system become more closely linked to strategic
implementation?
(10 marks)

QUESTION 5

Elaborate four (4) reasons why strategy evaluation is becoming more difficult in the 21 s t
century and briefly explain any two (2) challenges or issues that face all strategists today.

(20 marks)

END OF QUESTION PAPER

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