TECHNO 2023

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Question 1

CASE STUDY: PROCTA EXPANSION STORY

Procta Industries is a company dealing in office furniture. The company chose to diversify its operations
to improve its growth potential and increase market share. As the project was important, many
alternatives were generated for the purpose and were discussed amongst the members of the organisation.
After evaluating the various alternatives, Twilimo, the Managing Director of the company, decided that
they should add 'Home Interiors and Furnishings' as a new line of business activity. Moreover, Mr.
Twilimo also decided to start a campaign to create awareness among people for developing clean
surroundings in their area. He formed a team of 10 members to list the different ways for cleaning the
surroundings. One suggested taking the help of local residents, another suggested that they may involve
school-going children in their venture. One more suggestion was to take the help of the unemployed
youth. On evaluation of different ways, it was decided to take the help of local residents. To achieve the
desired goal, various activities are identified like:

Purchase of necessary items like dustbins, garbage bags, etc.

Collection of garbage;
Disposal of garbage, etc.
After identification of different activities, the work was allocated to different members.

a) With the aid of a diagram, identify and justify the framework or structure, which the diversified
organisation should adopt to enable it to cope with the emerging complexity?

Procta Industries should adopt a Divisional Organizational Structure to effectively manage its diversified
operations. In a divisional structure, each business segment, such as “Office Furniture” and “Home
Interiors and Furnishings,” operates as a semi-autonomous unit with its own resources, goals, and
management. This structure allows Procta to specialize within each line of business, improving focus,
efficiency, and accountability. Each division can focus on product-specific goals while aligning with the
overall corporate strategy.

Procta Industries (Head Office)

/ \

Office Furniture Home Interiors and Furnishings

/ \

Production, Marketing, Production, Marketing,

Sales, Finance, HR Sales, Finance, HR

Justification:

Specialization: Each division can focus on its specific product line, allowing deeper expertise
and better decision-making.

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 Flexibility: The structure allows quick adaptation to market changes within each product line,
enhancing responsiveness.
Clear Accountability: Managers in each division are responsible for performance, promoting
accountability and simplifying performance tracking.

b) According to Mintzberg, explain decisional roles to be performed by Mr. Twilimo. [8 marks]

Answer:

Mintzberg’s decisional roles include:

1. Entrepreneur: Mr. Twilimo initiates change within Procta Industries by diversifying into a new
product line, “Home Interiors and Furnishings.” In this role, he evaluates market opportunities
and introduces innovation to keep the company competitive.
2. Disturbance Handler: As the company expands, Mr. Twilimo will need to manage any
disruptions, such as potential conflicts between divisions or resource allocation issues. This role
ensures stability and maintains smooth operations.
3. Resource Allocator: Mr. Twilimo decides on the allocation of financial, human, and operational
resources to both the existing office furniture line and the new home interiors division. His
decisions directly impact each division’s effectiveness and contribute to achieving strategic
objectives.
4. Negotiator: Mr. Twilimo engages with various stakeholders, from suppliers to team members, to
secure agreements beneficial to Procta. For example, he may negotiate with local councils to
support the clean surroundings campaign, which boosts the company’s corporate image.

c) Identify and explain any two (2) functions of management involved in the above case study.

1. Planning: Mr. Twilimo and his team identified multiple ways to diversify operations and decided
on adding “Home Interiors and Furnishings” after careful evaluation. Planning is evident as they
defined goals, analyzed alternatives, and formulated strategies for both business growth and
social impact initiatives, such as the community cleanliness campaign.
2. Organizing: Mr. Twilimo organized resources by identifying various tasks (e.g., purchasing
dustbins, garbage collection) for the cleanliness campaign. Work was then allocated among team
members, ensuring roles were clear, tasks aligned, and resources were effectively utilized to
achieve the desired results.

Question 2

a) Using practical examples, evaluate any four (4) major differences between strategic and operational
plans in an organization of your choice.

For this answer, let’s consider Toyota as the chosen organization.

1. Time Frame:

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 Strategic Plans: These are long-term, covering 3-5 years or more. For instance, Toyota’s
strategic plan may focus on expanding its electric vehicle (EV) market share globally
over the next decade.
Operational Plans: Short-term plans focused on daily or weekly tasks. For Toyota, this
might include daily production schedules at specific plants to meet immediate demand.

2. Scope:

Strategic Plans: Broad in scope, impacting the entire organization. Toyota’s goal to
achieve carbon neutrality by 2050 is a strategic plan affecting all departments, from R&D
to marketing.
Operational Plans: Narrow in scope, typically confined to individual departments. An
operational plan for Toyota’s logistics team could involve the specific routing and timing
of supply deliveries to production facilities.

3. Focus:

Strategic Plans: Focus on growth, market expansion, and innovation. Toyota’s strategic
focus might be on becoming a leader in the autonomous vehicle sector.
Operational Plans: Focus on efficiency and process optimization. An operational goal
for a Toyota manufacturing plant could be to reduce production downtime by 15% within
six months.

4. Flexibility:

Strategic Plans: Generally flexible and subject to adjustment based on external factors
like market trends or competitor activity. For example, if consumer preferences shift
drastically, Toyota might revise its strategy to prioritize hybrids over EVs.
Operational Plans: Typically less flexible and require strict adherence to meet short-
term goals. A production line plan for a particular Toyota model may follow a fixed daily
target, with little room for deviation.

b) Illustrate how forecasting is used in strategic plans.

Forecasting plays a critical role in strategic planning by helping organizations anticipate future conditions,
make informed decisions, and set realistic goals. Here’s a breakdown of how forecasting is used in
strategic plans:

1. Market Demand Forecasting: Organizations predict future demand for their products or
services based on historical data, market trends, and economic indicators. This helps in deciding
product lines, setting sales targets, and allocating resources effectively.
2. Financial Forecasting: Forecasting revenue, expenses, and profits helps companies estimate
future financial conditions, enabling them to plan investments, control costs, and ensure sufficient
liquidity. Financial projections are often central to a strategic plan.
3. Resource Allocation: Forecasting identifies upcoming resource needs, such as workforce,
materials, and technology. This allows companies to plan recruitment, training, and procurement,
optimizing resources based on projected demand.

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 4. Risk Management: By forecasting economic trends and potential market disruptions,
organizations can identify risks and develop contingency plans. This helps mitigate losses and
ensures resilience against unexpected changes.
5. Competitive Analysis: Forecasting includes analyzing competitor trends, market share changes,
and industry shifts. Strategic plans incorporate these insights to develop competitive advantages
and adapt to market dynamics.
6. Capacity Planning: Forecasting production or service capacity ensures that organizations can
meet projected demand without overextending or underutilizing resources. This helps maintain
efficiency and customer satisfaction.
7. Technological Advancements: Predicting technological trends allows businesses to stay updated
and plan investments in innovation. Strategic plans may include adopting new technologies to
maintain a competitive edge.
8. Supply Chain Forecasting: Anticipating supply chain needs and potential disruptions ensures
smooth operations. This includes planning inventory levels, supplier relationships, and logistics to
avoid bottlenecks.
9. Long-Term Goal Setting: Forecasting helps set realistic long-term goals and objectives by
providing a data-driven view of future growth potential and market conditions. These goals form
the foundation of the strategic plan.
10. Alignment with Vision and Mission: Forecasting ensures that strategic initiatives align with the
company’s vision and mission, guiding the organization toward its intended future state.

Question 3:

(a) Using a Stakeholder Analysis Grid, explain how the National Dandemutande Company can
prioritize its stakeholders.

A Stakeholder Analysis Grid helps organizations like Dandemutande, a telecommunications company,

prioritize stakeholders by categorizing them based on their power (ability to impact the company) and
interest (degree of concern or involvement). This analysis guides resource allocation to maintain strong
relationships and achieve strategic objectives.

1. High Power, High Interest (Manage Closely):

Investors and Board Members: These stakeholders provide capital and set expectations
for growth and returns. They have a vested interest in financial performance and strategic
decisions, often influencing operational shifts. Regular engagement through quarterly
reports and strategic meetings keeps them informed and aligned.
Government Regulatory Bodies: Authorities like the Postal and Telecommunications
Regulatory Authority of Zimbabwe (POTRAZ) hold significant power over licensing and
compliance. Regular updates on regulatory changes and compliance audits are critical to
maintain operations.

2. High Power, Low Interest (Keep Satisfied):

Suppliers and Infrastructure Partners: Dandemutande relies on these stakeholders for

essential services such as equipment supply, technology updates, and network support.
While they may not be deeply involved in the company's internal workings, consistent

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 and timely communication about contract terms and requirements maintains satisfaction
and reliability.

3. Low Power, High Interest (Keep Informed):

Customers: As the primary source of revenue, customers care about service quality,
network reliability, and pricing. Engaging them through customer service, surveys, and
social media updates allows the company to gather feedback, build loyalty, and identify
opportunities for service improvement.

4. Low Power, Low Interest (Monitor):

Local Communities: Although these groups have limited influence, community relations
are crucial for Dandemutande’s public image and corporate social responsibility (CSR).
Periodic engagement through community projects or sponsorships of local events can
build goodwill.

By allocating resources in line with this prioritization, Dandemutande can manage relationships
effectively, focus on high-impact stakeholders, and align stakeholder expectations with its strategic goals.

(b) Explain the main interests and power/influence of any three stakeholders of your choice.

1. Investors:

Interest: High interest in profitability, company growth, and return on investment.

Power: Very high, as they influence corporate strategy, funding decisions, and even
board composition. Investors often participate in decision-making processes, especially
during periods of expansion or restructuring.

2. Government Regulatory Bodies:

Interest: Ensuring compliance with industry standards, protecting consumer rights, and
maintaining market stability.
Power: High power due to authority over licensing, operational permissions, and the
imposition of fines. Regulatory bodies like POTRAZ can impact Dandemutande’s
operations, which necessitates strict adherence to telecom laws and active collaboration.

3. Customers:

Interest: Interested in affordable, high-quality telecom services with reliable connectivity,

customer support, and transparency in billing.
Power: While individual customers have limited influence, collectively, they can affect
reputation and drive revenue. Customer feedback can prompt improvements, and their
satisfaction is crucial for business growth through word-of-mouth referrals and customer
retention.

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Question 4:

Analyse the five sources of power which are generally recognised as underpinning leadership.

1. Legitimate Power:

Derived from a leader’s formal role or position in the organizational hierarchy, giving
them authority to make decisions and enforce policies. For instance, a CEO has
legitimate power to set the organization’s strategic direction. However, reliance solely on
legitimate power can sometimes limit a leader's influence, as it may lack the personal
connection that inspires teams.

2. Reward Power:

This power stems from a leader’s ability to provide incentives, such as bonuses,
promotions, or recognition, to motivate employees. Leaders with reward power foster
loyalty by acknowledging achievements, but over-reliance on rewards may reduce
intrinsic motivation over time.

3. Coercive Power:

Based on the authority to impose consequences, such as demotions, reprimands, or

dismissals. Coercive power can ensure compliance in critical situations; however,
excessive use can harm morale, leading to fear-based cultures. Skilled leaders balance
this power carefully to maintain discipline without eroding trust.

4. Expert Power:

Gained through specialized knowledge or expertise, expert power commands respect and
often allows leaders to influence others through advice rather than authority. For instance,
a technical manager with in-depth knowledge can guide engineering teams effectively.
Leaders with expert power are trusted advisors, especially valued in complex industries
like technology or healthcare.

5. Referent Power:

Rooted in a leader’s charisma, integrity, or personal appeal, referent power inspires

loyalty and admiration. Leaders with referent power influence by embodying
organizational values, fostering a strong sense of unity and motivation. This power type
is effective for building a positive organizational culture, as employees feel inspired to
follow a leader they respect.

Question 5:

(a) Using an organization of your choice, explain any four reasons why today’s managers should
prioritize monitoring and measuring organizational performance.

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Organization Chosen: National Dandemutande Company

1. Goal Alignment:

Monitoring and measuring performance ensures that all departments within

Dandemutande align with the company’s strategic objectives. By regularly tracking
performance metrics, such as service delivery rates and customer acquisition costs,
management can ensure that teams are working cohesively towards shared goals, such as
increasing market share in the competitive telecom landscape.

2. Resource Optimization:

Effective performance measurement allows Dandemutande to identify areas where

resources are being underutilized or wasted. For example, if data shows that customer
support resources are disproportionately allocated during off-peak hours, managers can
optimize staffing schedules to improve efficiency and reduce operational costs.

3. Continuous Improvement:

Regular performance evaluations facilitate a culture of continuous improvement at

Dandemutande. By analyzing customer feedback, service outages, and network
performance metrics, management can identify trends and areas for improvement, leading
to innovations in service delivery and enhancements in customer experience. This is
crucial for maintaining a competitive edge in the telecommunications sector.

4. Employee Accountability:

By establishing clear performance metrics, Dandemutande promotes accountability

among employees. Setting specific targets for teams—such as reducing customer
complaint resolution times—encourages staff to take ownership of their roles. Managers
can use performance reviews to recognize high achievers and address underperformance,
fostering a motivated workforce aligned with the company’s objectives.

(b) Explore any three tools a technopreneur can use to measure organizational performance.

1. Balanced Scorecard:

A comprehensive tool that measures performance across multiple perspectives (financial,

customer, internal processes, and learning/growth). Technopreneurs can use this to ensure
they’re not solely focusing on financial outcomes but are also tracking customer
satisfaction and operational efficiency.

2. Key Performance Indicators (KPIs):

KPIs measure specific performance metrics, such as revenue growth, customer retention
rates, or website traffic. Technopreneurs benefit from setting clear KPIs to evaluate their
business’s health and make data-driven decisions that foster sustainable growth.

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 3. Customer Relationship Management (CRM) Software:

CRM tools provide insights into sales, customer interactions, and satisfaction. By
analyzing CRM data, technopreneurs can improve customer service, tailor marketing
strategies, and track client retention, which is crucial for growth and loyalty in a
competitive market.

Question 6:

Using examples, outline any five reasons why financial management is important to a technopreneur.

1. Budgeting and Resource Allocation:

Efficient budgeting allows technopreneurs to allocate funds to the most critical areas. For
example, a startup founder might allocate a larger budget to product development in early
stages to ensure quality, adjusting the budget as the company scales.

2. Cash Flow Management:

Cash flow management is essential for day-to-day operations and sustainability. By

tracking cash flow, a technopreneur can anticipate funding needs and avoid liquidity
crises. For example, a tech startup needs steady cash flow to cover costs like server
maintenance and employee salaries.

3. Investment Decisions:

Financial management helps evaluate potential investments, guiding decisions on scaling

or diversifying. A technopreneur might assess the return on investing in cloud
infrastructure versus hiring more developers to determine the best use of funds.

4. Risk Management:

With financial planning, technopreneurs can establish emergency funds and prepare for
uncertainties, such as market downturns or technology disruptions. Setting aside funds
allows a business to navigate unexpected expenses, protecting long-term growth.

5. Profitability and Growth:

Financial management helps technopreneurs understand profit margins, optimize pricing,

and ensure sustainable growth. By regularly reviewing profits, they can reinvest in areas
with the highest potential, like expanding a successful product line, to fuel future growth.

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