cbs study guide 2010 term 207

INSTITUTE OF

CERTIFIED PUBLIC ACCOUNTANTS OF SINGAPORE

PROFESSIONAL EXAMINATION

Module CORPORATE AND

BUSINESS STRATEGY (CBS)

9 November 2010

Official Study Guide

CONTENT PAGE 1 Detailed Syllabus 3

2 Course Assessment 5

3 Group Project 6

4 Reading References 10

5 Weekly Study Plan 12

6 Cases for Discussion Annex

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1 2 3 4 5 6 7

Important Dates and Information PE Transaction Form Project Submission Form Trainer Profile Past Year Paper – May 10 Past Year Suggested Solutions – May 10 Past Year Examiner’s Report – May 10

Annex 1 Annex 2 Annex 3 Annex 4 Annex 5 Annex 6 Annex 7

DETAILED SYLLABUS

ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2 Detailed Syllabus

AIM The strategic management course will equip you with the frameworks, tools, and concepts you will need to understand strategy formulation and implementation. This course will help you learn how to manage the firm’s competitive position and development, in order to ensure its long-term survival. It is designed to enhance your capacity to do the job of a general manager responsible for strategic decisions. Participants are placed in the position of key decision makers (or their advisors) and are asked to solve problems specific to each case. The topics and concepts are outlined below, and details on your assignments are provided in the following pages. Part of the grade will be the application of what you have learned throughout the program in an independent final project on a firm of your choice. OBJECTIVES On completion of this course, students should be able to: • understand the fundamental aspects of business and corporate strategy; • identify the important opportunities and challenges facing a business and setting out a

course of action for dealing with them; • generate strategy options for an company, evaluate alternative options, and select the most

appropriate strategy; • acquire familiarity with frameworks and techniques of strategic management, and

effectively use these to guide management decision; • effectively position a firm or a business unit within a globalized competitive environment; • formulate a strategic plan while considering the organization’s capabilities and

environment; and • build the necessary capabilities to develop a successful business. COURSE CONTENT This course is taught primarily through readings and the case method, but also includes workshops, and videos, if applicable. The learning experience results from the readings and the workshops, and from the preparation of cases, assignments and projects. The materials used in the course encompass a wide range of industries, businesses and issues in order to provide the greatest depth and breadth of experience. The cases and concepts will put you in a role of a key decision-maker, most often as a general manager. The case method requires you to use analytical tools taught in the course and to apply your personal judgment to a specific situation. There is no single correct solution to any of the case problems. There are, however, many wrong solutions. During the workshops, the instructor will cover the theory aspect of strategy, split the class in groups for discussion and answer your query regarding the readings and the cases. The instructor’s role in the class discussion is to help you, through intensive questioning, to develop your ideas.

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ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2 Detailed Syllabus

COURSE LESSON PLAN The general course lesson plan is as follows, subject to adjustments as the term progresses. References in brackets are to the Strategic Management and Business Policy, 12/E. Thomas L. Wheelen. David L. Hunger (WH), Pearson International Edition, and to cases that will be covered in class. Please refer to Cases for Discussion section for more details. Session 1: Basic Concepts of Strategic Management (WH Chapter 1 & Case 2: The Wallace Group) Session 2: Corporate Governance (WH Chapter 2 & Case 1: The Recalcitrant Director at Byte Products, Inc.) Session 3: Social Responsibility & Ethics in Strategic Management (WH Chapter 3 & Case 5: Everyone Does it) Session 4: The External Environment (WH Chapter 4 & Case 16: Harley Davidson INC, 2008: Thriving Through a Recession) Session 5: Internal Scanning: Organizational Analysis (WH Chapter 5 & Case 24: The Haier Group: US Expansion) Session 6: Strategy Formulation: Situation Analysis and Business Strategy (WH Chapter 6 & Case 18: Carnival Corporation & Plc (2006): Twelve Distinct Brands Serving Seven Continents) Session 7: Strategy Formulation: Corporate Strategy (WH chapter 7 & Case 20: The Home Depot (2006): Executive Leadership) Session 8: Strategy Formulation: Functional Strategy and Strategic Choice (WH chapter 8 & Case 30: Church & Dwight Builds a Corporate Portfolio) Session 9: Strategy Implementation: Organizing for Action (WH Chapter 9 & Case 17: JetBlue Airways) Session 10: Strategy Implementation: Staffing and Directing (WH Chapter 10 & Case 13: Google: An Internet Search Engine Company) Session 11: Evaluation and Control (WH Chapter 11 & Mini Case 32: Six Flags, Inc: The 2006 Business Turnaround)

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COURSE ASSESSMENT

ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2 Course Assessment

COURSE ASSESSMENT The assessment components are listed below: Group Project report (20%) You are to form a group (minimum of 1 student to maximum of 4 students) and perform an industry, company and strategy analysis of a company in any of the following sectors: 1. Agriculture and Fishing 2. Water Supply, Sewerage and Waste Management 3. Mining and Quarrying 4. Education 5. Transport and Storage 6. Electricity and Gas Supply 7. Financial and Insurance

Details of the group project are listed in the following Group Project section. Final examination (80%): The final, open-book examination is of 3 (three) hours duration and covers the entire course. The case will be given to you about 5 days prior to the exam. Further information will be provided as the term progresses.

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GROUP PROJECT

ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2 Group Project

RESTRICTION ON COMPANY & SECTOR SELECTION 1. Each sector may be selected by a maximum of 3 groups. 2. None of the groups are to select the same company. 3. The company selected must not be any of the companies covered in the Course Lesson

Plan found on page 4 of this study guide. 4. The company selected must have a significant role and market power. DEADLINES FOR COMPANY SELECTION & PROJECT SUBMISSION 1. You are required to submit your selection details (as indicated in the format below) no later

than one week after the first workshop, i.e. by 6 August 2010 (Friday), 5pm via email to [email protected]:

Group Members (1 to 4 candidates per group) Name Candidate ID1. Group Leader (to indicate) 2. Group Member 1 3. Group Member 2 4. Group Member 3 Project Selection Company Name Sector1st Choice (in order of preference) 2nd Choice 3rd Choice

The final company selection will be allocated by the Institute on a first-come-first-served basis. In the event that your first choice has been selected earlier by another group, you will be allocated your second or third choice accordingly.

2. The deadline for project submission is 5 November 2010 (Friday), 5pm. No marks will be awarded for reports submitted after the deadline. The report must be submitted in soft copy format (MS Word or PDF) via email to [email protected]. No hardcopy is required for submission.

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REPORT GUIDELINES 1. The number of words must not exceed 2500. These words refer to those in the main report

(not Appendices) and not inclusive of words in Figures and Tables.

2. Both in-text and a Reference list are compulsory. Format required for the referencing is Harvard Referencing Format or also known as the Author-Date Format.

3. The final report should be typed, double-spaced on A4-sized document, with equal left

and right margins of 3 cm. Times New Roman (font size 12) is required. Your report should contain 2 parts: Industry Analysis and Company Strategy Analysis. Part 1 – Industry Analysis Your group industry analysis should focus on industry trends and on the firm competitive environment. Feel free to adjust the outline below in the most meaningful way for the industry you selected. The important point is to cover all essential areas in a clear and concise manner, and to highlight the main external strategic issues the firm is confronted to. The last part will ask you to focus on the firm strengths and weaknesses to elaborate a company strategy. To do so, you must have a clear understanding of the environment in which the firm operates. Suggested outline A. Title Page (but no table of contents) B. Executive Summary (key findings; maximum 1 page)

• The content shall not include any company history. • The purpose of the executive summary is to inform the reader of the key elements

contained in the paper.

C. Industry Analysis • Relevant industry trends (e.g. segmentation, costs / technology aspects, competitors,

and main government/trade regulations) with implications for the firm performance and strategy

• What are the most noticeable changes in the industry environment? • Strategic Group Map • Attractiveness of the industry using the Porter 5 Forces model (i.e. analysis of forces’

strengths, changes in forces’ strength, etc.) o Remember Porter’s analysis is an industry-level (not firm-level) analysis o Who are the firm’s present/future customers? ...competitors?

• Key success factors in the industry

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D. Environmental Scan (external forces/stakeholders) • Most important Opportunities • Most important Threats

E. Internal Scan (company) • Key Strengths • Key Weaknesses

What would be your strategic recommendations to the firm based on your SWOT analysis? Part 2 – Company Strategy Analysis The purpose of this analysis is to recommend a strategic course of action for the company you selected. You should use analytical techniques and frameworks covered in class to examine the firm's strategic intent, its strategic position, and viable alternatives/strategic options. Suggested outline A. Mission Statement/Strategic intent/Vision.

• Why is this company in this business, and what does it do? • You can reproduce the company's published mission statement/vision. You must also

include a very brief critique of that mission/vision.

B. Assessment of the firm’s strategy • What is the firm’s generic strategy, if any?

a. Cost strategy (e.g. value chain analysis, experience curve) b. Differentiation strategy (e.g. sources of differentiation along the value chain,

customer segmentation) • What resources and/or capabilities does the firm have (or require) to implement its

strategy? o Consider the firm’s key resources that could lead to long term competitive

advantages – those that are rare, valuable, non-substitutable and inimitable. • What is the firm's competitive position in the industry (e.g. analysis of market share,

cost position, resources/capabilities to meet key customer needs relative to key competitors)

• Address the most important challenges of the firm? What is the significance of each? • Has the firm been successful? Why? Very broadly, where is the firm heading for?

Consider a 3-5 years time frame C. Identify growth options.

• Shall the company grow organically, or through cooperative strategy (e.g. horizontal or vertical alliances) or acquisition?

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D. What change or changes in strategy do you recommend? • In your recommendations, have you taken into consideration any possible competitor

responses (i.e. strategic interactions)? What would it be? How would it affect the competitive dynamics ?

• Have you demonstrated the feasibility of your recommendations? What would be the implementation pathway?

E. Endnotes (references)

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READING REFERENCES

ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2 Reading Reference

REQUIRED TEXTBOOK Strategic Management and Business Policy, 12/E. Thomas L. Wheelen. David L. Hunger. Pearson International Edition. ALTERNATIVE BOOKS 1. Hitt, Michael A., R.D. Ireland & R.E. Hoskisson. 2003. Strategic Management:

Competitiveness and Globalization, 5th Edition, (Cincinnati: ITP Southwestern Publishing Co).

2. De Kluyver, Cornelius A. 2000. Strategic Thinking: An Executive Perspective. Upper Saddle River, NJ: Prentice Hall

3. Pearce-Robinson. Strategic Management: Formulation, Implementation, and Control . 10th Edition. Mc Graw Hill International edition

4. Mintzberg, H., Ahlstrand, B., Lampel, J. (1998), Strategy Safari: A Guided Tour Through the Wilds of Strategic Management, Free Press, New York, NY,

5. Robert A. Pitts & David Lei. Strategic Management: Building and Sustaining Competitive Advantage. 4th edition. Thomson Higher Education, 2006

6. Thompson-Strickland. Strategic Management, Concepts and Cases, 12th Edition. Mc Graw Hill International Edition.

7. Bob de Wit. Ron Meyer. Strategy - Process, Content, Context, an International Perspective. 2nd Edition, International Thomson, 1998

8. Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2007). Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases (15th ed.). Boston: McGraw Hill, Irwin.

REFERENCE TEXTS & READINGS 1. Veronique Ambrosini ; Gerry Johnson ; Kevan Scholes, Exploring Techniques of

Analysis and Evaluation in Strategic Management, Pearson Higher Education (UK) 1998. ISBN 0-135-70680-7

2. Michael E Porter, Competitive Strategy: Techniques for Analysing Industries and Competitors, The Free Press, New York 1998 (revised print) ISBN 0-684-84148-7

3. Richard A D’Aveni, Hypercompetitive Rivalries: Competing in Highly Dynamic Environments, The Free Press, New York 1995 (revised print) ISBN 0-02-874112-9

4. Gary Hamel and C K Pralahad, Competing for the Future, Harvard Business School Press 1996 ISBN 0-87584-716-1

5. Jim Collins, Good to Great, HarperCollins 2001 ISBN 06-662099-6 6. Larry Bossidy and Ram Charan, Execution: The Discipline of Getting Things Done,

Crown Business New York 2002. ISBN 0-609-61057-0

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ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2 Reading Reference

REFERENCE ARTICLES 1. Michael E Porter, What is Strategy? Harvard Business Review November-December

1996 2. Michael E Porter, Strategy and the Internet, Harvard Business Review March 2001 3. Michael E Porter, How Competitive Forces Shape Strategy, Harvard Business Review

March-April 1979 4. Warnock Davies, Understanding Strategy, Strategy & Leadership May 2000 5. Campbell and Yeung, Creating a Sense of Mission, Long Range Planning Vol 24 No 4,

1991 6. Langeler, The Vision Trap, Harvard Business Review, Mar/Apr 1992 7. Campbell and Alexander, What’s Wrong with Strategy? Harvard Business Review

Nov-Dec 1997 8. Mintzberg and Lampel, Reflecting on the Strategy Process, Sloan Management Review

Spring 1999 9. Fuller, Strategic Planning in an era of Total Competition, Strategy & Leadership May-Jun

96 10. Lorange, Strategic Planning for Rapid Profitable Growth, Strategy & Leadership May –

Jun 96 11. Magretta, Why Business Models Matter, Harvard Business Review, May 2002 12. Derek Abell, Competing Today While Preparing for Tomorrow, Sloan Management

Review, Spring 1999.

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WEEKLY STUDY PLAN

ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2 Weekly Study Plan

I. SUGGESTED STUDY / REVISION SCHEDULE Week No.

Week beginning Monday

Topic Text Readings

FOUNDATION OF STRATEGY

01

2 Aug 2010

Basic Concepts of Strategic Management

• What is Strategic Management? • Strategy Formulation and

Implementation Case 2: The Wallace Group

WH Chap 1

3 Aug 2010 CBS Preparatory Course: Session 1

Tue 7.30pm to 10.30pm

02

10 Aug 2010

Corporate Governance

• The Role of the Board of Directors • The Role of Top Management

Case 1: The Recalcitrant Director at Byte Products, Inc.

WH Chap 2

ANALYSIS

03

16 Aug 2010

Social Responsibility & Ethics in Strategic Management

• Social Responsibility of strategic Decision Makers

• What is Social Responsibility? • Ethical Decision Making

Case 5: Everyone Does it

WH Chap 3

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04

23 Aug 2010

The External Environment • Environmental Scanning • Industry Analysis

o Porter Model o Strategic Groups

• Competitive Intelligence

Case 16: Harley Davidson INC, 2008: Thriving Through a Recession

WH Chap 4

STRATEGY FORMULATION

05

30 Aug 2010

Internal Scanning: Organizational Analysis

• Using Resources to Gain competitive Advantages

• Industry & Corporate Value-Chain Analysis

Case 24: The Haier Group: US Expansion

WH Chaps 5

31 Aug 2010 CBS Preparatory Course: Session 2 Tue 7.30pm to 10.30pm

06

6 Sep 2010

Strategy Formulation: Situation Analysis and Business Strategy

• SWOT Analysis • Business Strategies

o Competitive Strategies o Cooperative Strategies

Case 18: Carnival Corporation & Plc (2006): Twelve Distinct Brands Serving Seven Continents

WH Chap 6

13


07

13 Sep 2010

Strategy Formulation: Corporate Strategy

• Directional Strategy • Portfolio Analysis: BCG and GE matrix • Corporate Parenting

Case 20: The Home Depot (2006): Executive Leadership

WH Chap 7

08

20 Sep 2010

Strategy Formulation: Functional Strategy and Strategic Choice

• The Sourcing Decision: Location of Functions

• Strategies to Avoid • Strategic Choice: Selecting the Best

Strategy Case 30: Church & Dwight Builds a Corporate Portfolio

WH Chaps 8

21 Sep 2010 CBS Preparatory Course: Session 3 Tue 7.30pm to 10.30pm

09 27 Sep 2010 Revision Week

STRATEGY EXECUTION

10

4 Oct 2010

Strategy Implementation: Organizing for Action

• How is Strategy to Be Implemented? • Corporate Development &

Organizational Life-cycle • International Alliances • Centralization vs. Decentralization

Case 17: JetBlue Airways

WH Chap 9

4 Oct 2010 CBS Preparatory Course: Session 4


14


11

11 Oct 2010

##Strategy Implementation: Staffing and Directing

• Selection and Management Development

• Leading • Management by Objectives • TQM

Case 13: Google: An Internet Search Engine Company

WH Chap 10

19 Oct 2010 CBS Preparatory Course: Session 5


12

18 Oct 2010

Evaluation and Control

• Measuring Performance • Strategic Information Systems • Problems in Measuring Performance • Strategic Incentive Management

Mini Case 32: Six Flags, Inc: The 2006 Business Turnaround

WH Chap 11

13-14 25 Oct & 4 Nov 2010 Revision Week

15

11 May 2010

Exam Date: 9 November 2010, 10am to 1pm

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CASES FOR DISCUSSION

ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2 Cases for Discussion

CASES: PREPARE FOR DISCUSSION Case 2: The Wallace Group 1. What do you think the Wallace Group has a clear Mission and Vision? Please support

your answer. 2. Identify the issues facing the Wallace Group? Please elaborate. 3. Identify what basic strategic concepts can the Wallace Group use to improve their

current situation? 4. Discuss how the strategic concepts identified in Question 3 will help the Wallace Group

address their issues identified in Question 2. Case 1: The Recalcitrant Director at Byte Products, Inc. 1. Discuss the Board of Directors’ duties. 2. Did the board perform their duties as directors? 3. Was management responsible in their actions? Case 5: Everyone Does it 1. What are the factors Jim should consider when deciding which launch date to use? 2. Are ISI and its competitors (e.g. Lockart, Global Science) ethical in their business

practices? 3. Does a practice become ethical just because “Everyone does it”? 4. What can be done to ensure that the industry develops and use higher standards of

ethics? Case 16: Harley Davidson INC, 2006 1. Is the motorbike business an attractive business to be in? 2. What opportunities and threats exist in this market? 3. What would be a PEST model application to the motorbike business? 4. What are the keys success factors in this industry? Case 24: The Haier Group: US Expansion 1. Discuss Haier’s business strategy. Does Haier have a sustainable competitive advantage

over its competitors? 2. Compare Haier`s position in major home appliances and in consumer electronics in the

US: 3. Which growth alternative is better? Case 18: Carnival Corporation & Plc (2006): Twelve Distinct Brands Serving Seven

Continents 1. What is the company corporate strategy? 2. How sustainable are Carnival’s sources of competitive advantages?

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ICPAS Professional Examination - Corporate & Business Strategy (CBS) 2010 Term 2 Cases for Discussion

3. Examine the role placed by acquisitions in Carnival’s globalization strategy 4. Study Carnival’s organizational structure and examine how such a structure enables

efficient and effective knowledge management at the company Case 20: The Home Depot (2006): Executive Leadership 1. What is the importance of corporate culture to Home Depot? Is it being lost or just

changed to adjust to a new environment? 2. How can differentiation and low-cost competitive strategies be used simultaneously? 3. What core competencies does Home Depot possess that can be transferred to the

professional contractor market? To going international? Are any distinctive? 4. What should Home Depot do next to ensure continued growth? Case 30: Church & Dwight Builds a Corporate Portfolio 1. Do an internal analysis of Church & Dwight 2. Analyze Church & Dwight’s Internationalization strategy 3. Are there synergies between Church & Dwight’s two divisions (chemical and consumer

products)? Should there be? 4. What future strategy would you recommend to Church & Dwight? What should Church

& Dwight pay attention too? Case 17: JetBlue Airways 1. Identify JetBlue’s strategy for success. 2. How did JetBlue implement their organizational routines to support their strategy? 3. Did JetBlue have centralized or decentralized systems and routines in place? 4. How did JetBlue’s centralize or de-centralized systems and routines influenced their

ability to cope with “The Customer Service Fiasco – pg 704”? Case 13: Google: An Internet Search Engine Company 1. What does Google do to remain competitive? 2. Are programs such as MBO and TQM appropriate for Google? Please elaborate. 3. What does Google do to meet with its staffing requirements? 4. How does Google’s staffing decisions impact its overall organizational strategy? Mini Case 32: Six Flags, Inc: The 2006 Business Turnaround 1. Recommend relevant performance measures can be used to help six flags in its quest

towards profitability? 2. Recommend strategic information systems can be developed to facilitate Six Flag’s

turnaround strategy? 3. What are the key issues which Six Flags might face when using your recommendations

in Questions 1 and 2?

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1. For First Time Assessment Application (Not Applicable to Existing Candidates)

Term 1 / Yr 10 Term 2 / Yr 10

a) Assessment Application Closing Date 01 Oct 09 01 Apr 10b) Confirmation Date for Application Status 14 Dec 09 14 Jun 102. Module Examination

(Only applicable for ICPAS PE Candidates)Term 1 / Yr 10 Term 2 / Yr 10

a) Module Examination Registration Commencement Date 14 Dec 09 14 Jun 10b) Module Examination Registration Closing Date 13 Jan 10 14 Jul 10c) Academic Term Commencement Date 05 Feb 10 01 Aug 10d) Examination Results Release Date 25 Jun 10 24 Dec 10

Module Examination Dates Term 1 / Yr 10 Term 2 / Yr 10FRD - Financial Reporting & Disclosure 10 May 10 08 Nov 10CBS - Corporate & Business Strategy 11 May 10 09 Nov 10AUD - Audit & Assurance 12 May 10 10 Nov 10LCG - Company Law & Corporate Governance 13 May 10 11 Nov 10ATX - Advanced Taxation 14 May 10 12 Nov 10

3. Preparatory Course for ICPAS PE (Optional) Term 1 / Yr 10 Term 2 / Yr 10a) Preparatory Course Enrolment Commencement Date 14 Dec 09 14 Jun 10b) Preparatory Course Early Enrolment Closing Date 05 Feb 10 23 Jul 10

Detailed Information1. Assessment Application

ICPASEMAIL: [email protected] | URL: www.icpas.org.sg/pe.asp

ICPAS PE - IMPORTANT DATES AND INFORMATION

SAA-GEEMAIL: [email protected] | URL: www.saa.org.sg/pe.html

pp-

--

2. Module Examination Registration--

-

-

3. Preparatory Course for ICPAS PE--

-

4. Written Examination---

Note:1)2)

3)

4)

Candidates MUST come down personally to SAA-GE’s Raffles Quay Campus within 2 working days from the date of online enrolment, to sign the student contract & pay the FPS insurance, in order for the enrolment to be confirmed.

All examinations will commence at 10am and end at 1pm on each of the given dates, unless otherwise stated.Results will be released on the stated dates. Candidates are required to log in to their individual account to view their published results.

ICPAS reserves the rights to amend any of the published date or time in this document without prior notice.Events occuring on dates published in this document that coincide with a weekend / public holiday will be postponed to the next working day.

The latest available information will published on the ICPAS PE website and will supercede all previous disseminated information. Candidates are strongly encouraged to visit the ICPAS PE website for the latest available information.

Important announcements will be published on the ICPAS PE website and / or disseminated via email.Candidates are required to provide a valid email address and to check the provided email account regularly.In the event of changes of existing email address, candidates are required to log in to their individual candidate account in the ICPAS PE website to perform an update

Module examination dates corresponding to enrolled modules are listed in the table above.

Enrolments received by the Early Enrolment Closing Date will be entitled to discounted rate.

Examinations are available twice a year, in the months of May and November.

Modules need not be attempted in a particular sequence and are not compulsory every term. Candidates can attempt modules at their own pace, provided that examinations for all modules are successfully attempted within the candidature period of 5 years.Candidates can only enrol for modules after payment of candidate fee.

Upon confirmation of application status (i.e. the applicant is eligible for entry to PE), payment of first year Candidate Fee is required. Payment due date is within a month from the approval date.Subsequent Annual Candidate Fee will be billed in December (due on 2nd January).Active candidates is not required to submit Assessment Application Form during the period of valid candidature (5 years).

Candidates may enrol for a maximum of 3 modules per term by the Module Examination Registration Closing Date.

Please refer to the Enrolment Procedure at www.saa.org.sg/pe.html for details.

ICPAS PE website to perform an update.

Updated May 10ANNEX 1

1. For First Time Assessment Application (Not Applicable to Existing Candidates)

Term 1 / Yr 11 Term 2 / Yr 11

a) Assessment Application Closing Date 01 Oct 10 01 Apr 11b) Confirmation Date for Application Status 15 Dec 10 15 Jun 112. Module Examination

(Only applicable for ICPAS PE Candidates)Term 1 / Yr 11 Term 2 / Yr 11

a) Module Examination Registration Commencement Date 15 Dec 10 15 Jun 11b) Module Examination Registration Closing Date 14 Jan 11 14 Jul 11c) Academic Term Commencement Date 01 Feb 11 01 Aug 11d) Examination Results Release Date 24 Jun 11 23 Dec 11

Module Examination Dates Term 1 / Yr 11 Term 2 / Yr 11FRD - Financial Reporting & Disclosure 09 May 11 07 Nov 11CBS - Corporate & Business Strategy 10 May 11 08 Nov 11AUD - Audit & Assurance 11 May 11 09 Nov 11LCG - Company Law & Corporate Governance 12 May 11 10 Nov 11ATX - Advanced Taxation 13 May 11 11 Nov 11

3. Preparatory Course for ICPAS PE (Optional) Term 1 / Yr 11 Term 2 / Yr 11a) Preparatory Course Enrolment Commencement Date 15 Dec 10 15 Jun 11b) Preparatory Course Early Enrolment Closing Date 21 Jan 11 22 Jul 11

Detailed Information1. Assessment Application

ICPAS PE - IMPORTANT DATES AND INFORMATIONICPAS

EMAIL: [email protected] | URL: www.icpas.org.sg/pe.asp

SAA-GEEMAIL: [email protected] | URL: www.saa.org.sg/pe.html

pp-

--

2. Module Examination Registration--

-

-

3. Preparatory Course for ICPAS PE--

-

4. Written Examination---

Note:1)2)

3)

4)

All examinations will commence at 10am and end at 1pm on each of the given dates, unless otherwise stated.

Upon confirmation of application status (i.e. the applicant is eligible for entry to PE), payment of first year Candidate Fee is required. Payment due date is within a month from the approval date.Subsequent Annual Candidate Fee will be billed in December (due on 2nd January).Active candidates is not required to submit Assessment Application Form during the period of valid candidature (5 years).

Examinations are available twice a year, in the months of May and November.Candidates may enrol for a maximum of 3 modules per term by the Module Examination Registration Closing Date. Modules need not be attempted in a particular sequence and are not compulsory every term. Candidates can attempt modules at their own pace, provided that examinations for all modules are successfully attempted within the candidature period of 5 years.

Results will be released on the stated dates. Candidates are required to log in to their individual account to view their published results.

ICPAS reserves the rights to amend any of the published date or time in this document without prior notice.Events occuring on dates published in this document that coincide with a weekend / public holiday will be postponed to the next working day.

The latest available information will published on the ICPAS PE website and will supercede all previous disseminated information. Candidates are strongly encouraged to visit the ICPAS PE website for the latest available information.

Important announcements will be published on the ICPAS PE website and / or disseminated via email.Candidates are required to provide a valid email address and to check the provided email account regularly.In the event of changes of existing email address, candidates are required to log in to their individual candidate account in the ICPAS PE website to perform an update

Candidates can only enrol for modules after payment of candidate fee.

Enrolments received by the Early Enrolment Closing Date will be entitled to discounted rate.Candidates MUST come down personally to SAA-GE’s Raffles Quay Campus within 2 working days from the date of online enrolment, to sign the student contract & pay the FPS insurance, in order for the enrolment to be confirmed.Please refer to the Enrolment Procedure at www.saa.org.sg/pe.html for details.

Module examination dates corresponding to enrolled modules are listed in the table above.

ICPAS PE website to perform an update.

Updated May 10ANNEX 1

# Please tick where appropriate. * Please refer to the Important Dates and Information available on PE website for enrolment closing and examination dates.

Please read the “Terms and Conditions” carefully before you proceed to fill up the form.

Name as in NRIC or Passport:

(in block letters and underline surname/family name)

Salutation: ( Dr/ Mr/ Mrs/ Mdm/ Ms)#

NRIC/ Fin/ Passport no#:

<PART A> To update your personal details To update your particulars, please fill up the below.

Mailing Address: _____________________________________________________________________________

Contact Number: (Home) (Mobile) (Office) (Fax)

Email Address: ______________________________________________________________________________

<PART B> Transaction to perform Please select the following transactions by ticking the box and proceed to the respective sections.

TYPES OF MODULES FRD - Financial Reporting and Disclosure CBS - Corporate and Business Strategy AUD - Audit and Assurance

LCG - Company Law and Corporate Governance ATX - Advanced Taxation

Candidate Fee Candidate fee is applicable for all candidates to maintain the candidature.

AMOUNT FOR OFFICIAL

USE

First year - for the term commencing in January - S$315

First year - for the term commencing in July - S$168

Annual Renewal (subsequent year) - S$315

S$315

S$168

Module Examination Registration* Candidates are required to register for the respective module to qualify for its examination.

AMOUNT FOR OFFICIAL

USE

(i) Deferred Module(s) Module Examination Registration fee is not required.

FRD

CBS

AUD

LCG

ATX

(ii) New Enrolment

FRD

CBS

AUD

LCG

ATX

S$630 (1 module)

S$1,260 (2 modules)

S$1,890 (3 modules)

Module Script Review The Module Script Review allows the candidates to gain a better understanding of their performance relative to the examination through a detailed report.

AMOUNT FOR OFFICIAL

USE

FRD

CBS

AUD

LCG

ATX

S$63 (1 module)

S$126 (2 modules)

S$189 (3 modules)

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ANNEX 2


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ANNEX A

ICPAS PROFESSIONAL EXAMINATION Tel 65 6597 5720 | Fax 65 67498879| Email [email protected] | Webpage http://www.icpas.org.sg/pe.asp

12 Aljunied Road, #03-01, KH Plaza @ Aljunied, Singapore 389801

ANNEX 2

ICPAS Professional Examination

PROJECT SUBMISSION FORM

Kindly attached this form with the CBS project (word doc or PDF) and email to [email protected] by the due date and time.

CANDIDATE NO(S):

MODULE CODE: CBS MODULE TITLE: CORPORATE AND BUSINESS STRATEGY ASSIGNMENT TITLE:

DATE DUE: 5 NOVEMBER 2010 Friday 5:00pm CANDIDATE(S) SIGNATURE:

ANNEX 3

Clive has more than 20 years of working experience in Business Development, Sales & Marketing, and Corporate Training. He previously held senior managerial positions for large Japanese and European MNCs, with extensive experiences in the Asian Pacific business environment. Clive has successfully managed large businesses in this region, working closely with direct sales force as well as distribution channels. His areas of expertise include business strategies, managing direct sales force, distribution channels and establishing dealers’ network. Clive has been consulted by both for-profit and non-profit organizations in the areas of business planning and strategies. Besides providing consultancy work, Clive conducts Corporate Training for various listed companies. He has delivered seminars and courses for many working professionals and established organizations. Clive is a Lecturer with Nanyang Business School (NBS), Nanyang Technological University (NTU) in the Strategy, Management and Organization Division where he teaches Strategic Management in the final-year of the Business and Accounting degree programme. Also, he is pursuing PhD in Management. Other than his passion in academic and business consulting work, Clive serves in various capacities in Sports and societal work. He is currently serving as a Council Member for NTU Sports Council. He is active in promoting community sports as a Grassroot leader. Clive is also a workshop facilitator volunteer in REACH Family Services Centre, an organization under the Ministry of Community Development, Youth and Sports.

Module: Corporate & Business Strategy (CBS)

Trainer: Mr Clive Choo

hweehong

Typewritten Text

ANNEX 4

ICPAS PROFESSIONAL EXAMINATION

MAY 2010

CORPORATE AND BUSINESS STRATEGY (CBS)

INSTRUCTIONS TO CANDIDATES 1. The time allowed for this examination paper is 3 hours.

2. This examination paper has a total of FOURTEEN (14) pages (including this

instruction sheet) comprising the following: i. Structured Questions - FOUR (4) questions (1 page). ii. Case – “Caffeine Satisfaction: Rivalry Among the Coffee Shops” (12 pages)

– this has been distributed to candidates prior to examination.

3. Answer ALL FOUR (4) questions.

4. The number of marks allocated is shown at the end of each question.

5. All answers must be written in the answer booklet.

6. Begin your answer to each question on a separate page of the answer book.

7. Answers will be graded for content and appropriate presentation.

8. All answers must be handwritten.

9. Write legibly in ink.

ANNEX 5

ICPAS PROFESSIONAL EXAMINATION Corporate and Business Strategy – May 2010 ______________________________________________________________________

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All questions are based on the case “Caffeine Satisfaction: Rivalry Among the Coffee Shops”. Question 1 How attractive is the Coffee Retailing Industry?

(30 marks) Question 2 (i) How does the strategy of Starbucks and Dunkin’ Donuts differ?

(20 marks)

(ii) Does Krispy Kreme pose a threat to either? (5 marks)

Question 3 Identify Starbuck's Strengths and Capabilities. How sustainable are Starbucks' competitive advantages? Please elaborate.

(30 marks) Question 4 What recommendations would you have for Allied Domecq (The parent company of Dunkin Donuts) if they wanted to compete with the major coffee chains (e.g. Starbucks, Seattle’s Best) head on in the specialty coffee business?

(15 marks)

- END OF PAPER -

ANNEX 5


CORPORATE AND BUSINESS STRATEGY (CBS)

MAY 2010 EXAM PAPER SUGGESTED SOLUTIONS

ANNEX 6

ICPAS PROFESSIONAL EXAMINATION Corporate and Business Strategy – May 2010 _____________________________________________________________________________________________

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Question 1 Defining the relevant market as one for specialty coffee beverages is too narrow. Defining it as a market for beverages may be too broad. Starting with a definition of the industry as “Retailing coffee beverages (coffee shops),” then we can proceed to analyze the industry using the five + 1 forces model: a) Barriers to entry: Low to medium

While setting up chains require heavy investment in stores or building a franchising system, individual coffee shops require much less investment, and are frequently seen in many towns. Location in high traffic areas is important.

(5 marks) b) Intensity of rivalry: High

Product differentiation is strong for consumers with specific product knowledge, but most consumers lack that kind of specific knowledge. Exit costs are low to medium, and scale economies are limited. Competitors offer a range of products along with coffee and also differentiate on that basis. There are also many competitors. There is an increased focus on price competition. It is easy for competitors to watch each other’s moves.

(5 marks)

c) Power of substitutes: High In regard to consumer products, there is substitution on the demand side. It is safe to

assume that customers do no easily substitute between coffees and carbonated and/or fruit beverages. However, they may be more willing to substitute between specialty coffee and generic coffee that is available in other fast food chains such as McDonalds. Substitutes include convenience stores (standalone or attached to gas stations), restaurant, department stores, and vending machines. The other issue is whether the market is national, or is composed of smaller regional markets. The yardstick of substitutability can again be used here. It is not very likely that a consumer seeking a quality cup of coffee is willing to travel ten miles to get to one, but may settle for what he or she can purchase at a neighboring store.

(5 marks)

d) Bargaining power of buyers: low-Medium Low switching costs, multiple options available (and the number of options is on the

increase), falling consumption in the United States increase buyers’ bargaining power. Demand is not concentrated, and it is a small value item. However, buyers do not bargain on price and do not buy in bulk.

(5 marks)

e) Bargaining power of suppliers: low Coffee production has been outstripping consumption. Production is owned by

distributors (e.g. Starbucks), thereby eliminating supplier’s bargaining power, or major buyers approach producers directly eliminating middlemen. There is an

ANNEX 6


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oversupply on the market. Product differentiation is low. Coffee chains are large (much larger than the farms they buy from) and buy in large quantities.

(5 marks)

f) At this stage, we can introduce two other forces: The first is the power of stakeholders, which is weak in this industry (e.g. local

governments /or agencies are to enforce health standards).

The second is the power of complementors. While there may not be a complementor industry to coffee shops, we may consider the complementary products to coffee beverages (e.g. whole beans in packets, coffee-related equipment, merchandised items) as an influence on strategies followed in the industry. The complementors also influence substitutability and thus their power or influence can be rated a high.

There will be max 5 points for mentioning stakeholder or complementors.

(5 marks)

On the basis of the above, the overall conclusion would be that the industry is moderately attractive. Question 2(i) The contrast of Starbucks and Dunkin Donuts is revealing. Although both Starbucks and Dunkin’ Donuts sell coffee beverages, their focus, segmentation and basis for differentiation are different. Differentiation often extends beyond the products and covers everything that influences the way a consumer derives value. Thus a knowledgeable staff, who can talk about the product, and the design of the store (which encourage people to linger or provide them with product quickly) are all part of the differentiation strategy. Starbucks sees itself as primarily a coffee shop, selling high quality coffee beverages (regular, latter, espresso, and the) to discerning consumers. Thus, it offers a wide range of flavors, and types of coffee beverages, with some supplementary products such as pastries, cookies and biscuits, books and CDS. They wish to create an image of a professional and upscale lifestyle. Dunkin’ Donuts is designed for the “average Joe”. Coffee accounts for only about 50% of sales of Dunkin’ Donuts. Although it supplies good quality coffee which has its own following, it is also in the business of selling bagels, breakfast sandwiches, pastries like doughnuts, and so on in addition to coffee. The firm is also innovative in coming up with new products and variations on existing products. While it does not innovate, it adapts quite well.

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1 point should be awarded for each relevant difference. Additional points should be awarded for elaboration (up to a maximum of 2 points per category discussed – listed below)

Category Starbucks Dunkin’ Donuts Store philosophy Leisure, lifestyle, specialty

drinks Convenience, everyday routines

Product focus Coffee beverages, beans Coffee beverages, beans, doughnuts, and bagels

Store ownership Mostly company-owned Mostly franchised Store ambience Upscale design, Internet

Connection Basic furniture, easy access

Service orientation Store staff knowledgeable about coffee, customers spend time on the premise

Speed of service, designed to handle high traffic volume

Store location Clustering of stores to saturate the market locally

Location aims coverage and avoids cannibalization

Rivals Tully’s Coffee, Seattle best, Caribou Coffee, ect.

Krispy Kreme

While the above suggests several differences in products and differentiation strategies between the two, there is a significant segment of the public that would consider them as comparable options when thinking of a cup of coffee. Hence, in their actions, the two firms also reveal a keen awareness that they also compete for the same type of customer. Starbucks has introduced a prepaid card so customers in a hurry can use the card and save the time involved in paying for their purchase. Dunkin’ Donuts, on the other hand, recognize that some discerning customers want variations on the delivery of their favorite beverages – hence, it has introduced latte and espresso, but has automated part of the preparation so that its stores can keep lines moving fast. These areas of convergence are where its rivalries are the sharpest.

(20 marks) Question 2(ii) The expansion of Kripsy Kreme offers a greater challenge to Dunkin Donuts rather than Starbucks because of the similarity of their formats. Starbucks and Dunkin Donuts are not direct rivals.

(5 marks)

Question 3 Marks to be given – 1 mark per point identified (up to 2 marks if the point is elaborated further) – maximum marks for this section: 18 marks Strengths & Capabilities (12 Identified) Large scale of operations to gain economies of scale and scope.

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Strong brand recognition for the quality of its coffee.

Strong partnerships with well known brand names such as United Airlines, Barnes &

Noble.

Strong related diversification and partnerships with Dreyers (selling Starbuck’s ice Cream), Pepsico (bottled Frappacinno) and Kraft (Distribute grounded and whole Starbucks coffee beans)

Human resources (believes in hiring smart people– experts in various content areas and experienced middle management from related organizations such as Taco Bell, Wendy’s and Blockbuster).

Effective and extensive use of technology (– experts in various content areas and experienced middle management from related organizations such as Taco Bell, Wendy’s and Blockbuster) .

Efforts made to build other systems to facilitate growth

Funding sources (Venture Capitalist provision of funds for growth)

Strong policies to treat employee well, even going back to purchasing coffee ethically (under a fair trade program)

In-house team of architects, real estate personnel and construction managers to find the right locations and create the right structure.

A systematic process of structured sequential of expansion (setting up a logistical and managerial base/hub coupled with store clustering) was used to reduce location competition and facilitate further expansion within an area.

Geographic diversity leading to a global brand name Marks given for showing the sustainability of Starbuck’s competitive advantage: 2 marks if they use a relevant framework such as VRINE, or base it on the 5 traits

mentioned in the text (to determine sustainability) – The 5 traits being: Durability, Imitability, Transparency, Transferability, Replicability.

2 marks given if they elaborate on a specific logic that will impact / influence sustainability (e.g. tacit knowledge, the logic behind VRINE or the 5 traits mentioned in Wheelen and Hunger)

1 more mark if they integrate the logic behind sustainability with the framework.

For each core strength identified, and elaborated upon, a maximum of 5 marks per

ANNEX 6


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strength deemed as sustainable can be given. The maximum marks for this section would be 20 marks (i.e. up to 3 strengths well elaborated upon to show sustainability or a combination of marks given for the use of a framework and the logic, together with elaboration of strengths)

*Note that the total marks for the question will still be capped at 30. Example of a sustainable competitive advantage using the framework by Wheelen and Hunger: Strong partnerships with known players such as United Airlines, Barnes & Noble, Pepsico, Kraft, etc. a) Durability - The resources required to develop and maintain meaningful relationships

with key partners is something that takes time to be developed and maintained. The fact that Starbucks have managed to secure and maintain good working relationships with key players shows durability.

b) Imitability – These processes are difficult replicate by competitors. It requires tacit knowledge, a wide range of contacts, and processes which most coffee places will not have. As such, it is difficult to imitate.

c) Transparency – The processes that govern this strength/capability is very opaque and competitors are not able to observe how Starbucks formed these partnerships. As such, it is difficult for them to understand how to go about and erode this advantage.

d) Transferability – Competitors might be able to replicate this somewhat by forming their own partnerships with other relevant players. However, each partnership will be inherently different and so there can never be total transferability. This helps ensure some degree of sustainability. A credible challange is possible, albeit very difficult.

e) Replicability – Since the routines which govern a successful partnership is difficult to

ascertain and the resources which Starbucks use are tact in nature, it is difficult to attempt direct replication by using similar resources and capabilities.

All 5 points support the notion that the strength of strong partnerships has a decent degree of sustainability. Other points which can be argued as sustainable to an extent include: Branding and globalization combined (i.e. a strong global brand)

Human resources and processes supporting employee functions

Scale and the use of technologies and systems to support growth and scale

(30 marks) Question 4 The idea here is for candidates to leverage off their knowledge of corporate strategy, while

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making use of the case information. Potential recommendations include: Leveraging off their ownership of Dunkin Donut as a means to secure better contracts for

coffee, develop training programs for employees, etc (elaboration on this possible up to a maximum of 5 marks)

Setting up another company (Dunkin Donut has too much connotation to Donuts and does not bring out the focus on coffee) while leveraging off their ownership on Dunkin Donuts (max 2 more marks in addition to the max of 5 marks for the previous point) – elaboration on the setting up of a new company possible (e.g. details on the set up, etc – another 3 more marks max)

Rebranding Dunkin Donut (or have a spin-off) to focus on coffee – details of the rebranding can include aspects regarding employee training on coffee and the brewing process, setting up specific elements of the supply chain, etc (2 marks for the recommendation, up to 3 more marks for elaboration to a maximum of 5 marks total)

Introduction of a new specialty range of coffee within Dunkin Donut and this can be pushed towards its other businesses (e.g. under the quick service restaurants) where it is seen as being of premium quality (2 marks for the suggestion)

Basically, there are many possibility of making meaningful recommendations. The base guideline for grading is 1 mark for a possible recommendation, 2 marks for a meaningful recommendation, additional marks for elaboration, up to a maximum of 5 marks for the recommendation and elaboration, subjected to the question total limit of 15 marks.

(15 marks)

ANNEX 6


CORPORATE & BUSINESS STRATEGY (CBS)

MAY 2010 EXAMINER’S REPORT

ANNEX 7

2 | P a g e

Question 1 Students generally did not seem to have a problem identifying a relevant framework (e.g. Porter’s forces model) to use in order to determine the attractiveness of the coffee retailing industry. However, a number did not do an in-depth analysis, and their rationalization lacked a holistic assessment of the attractiveness of the coffee retailing industry. A few students also did not use any framework and this further reduced the comprehensiveness of their analysis. Question 2 Most students did a comparison and were able to tease out differences between the strategy used by Starbucks and Dunkin Donuts. However, a lot of them failed to elaborate on they key characteristics of the differences. In addition, most students had problems determining the rationale to explain if Krispy Kreme would be a threat to either Starbucks or Dunkin Donuts. Question 3 Students were generally able to identify the strengths and capabilities of Starbucks. However, elaboration of how and why these were strengths and capabilities were lacking at times. In addition, only the minority used a framework such as VRIN to determine the sustainability of Starbuck's competitive advantages. Question 4 Some students were able to formulate an approach and fundamental logic towards their recommendations. However, the bulk of students had problems in developing a basis for their recommendations.

ANNEX 7

cbs study guide 2010 term 207

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