Strategic Management DEC 2025

Description

Strategic Management

Dec 2025 Examination

 

 

Q1. Queens Magic Land, a leading theme park operator, diversified into the quick service restaurant (QSR) sector by leveraging its success with healthy food options in its parks. Despite initial customer interest, the chain quickly faced losses due to high competition, operational costs, and fading novelty. The QSR market is saturated with established brands like McDonald’s, KFC, and local players, making it difficult for the new entrant to sustain its premium, health-focused positioning. The management is now evaluating how to reposition the QSR business using Porter’s cost leadership, differentiation, or focus strategies to carve out a sustainable niche and improve profitability. Given the scenario, how can Queens Magic Land apply Porter’s generic strategies to reposition its quick service restaurant (QSR) business and regain competitive advantage in a crowded market with both international and domestic players? (10 Marks)

Ans 1.

Introduction

Queens Magic Land, a well-known theme park operator, entered the quick service restaurant (QSR) sector by building on its brand image of offering healthy food choices within its parks. While the concept initially attracted attention, the chain soon faced heavy losses due to intense competition, high operational costs, and the challenge of sustaining novelty in a saturated market. Established global players like McDonald’s and KFC, along with local QSR brands, dominate the space with strong cost efficiency and brand loyalty. In this scenario, Queens Magic Land needs a clear strategic direction to regain competitiveness. Porter’s generic strategies—cost leadership, differentiation, and focus—offer a structured framework for repositioning the QSR business and carving out a

 

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Q2(A). Let us assume that Marico Limited, which is a leading player in the beauty and wellness industry, has implemented a range of sustainability initiatives, including energy efficiency, renewable energy adoption, and waste reduction. These efforts have required significant operational adjustments and ongoing commitment. However, the company faces challenges in managing the trade-offs between environmental sustainability and other business priorities, such as cost control and supply chain efficiency. The management team is evaluating whether their current environmental scanning practices adequately capture both the risks and opportunities presented by ecological and societal trends. Critically assess Marico Limited’s approach to sustainability and efficient manufacturing in the context of environmental scanning. Briefly explain how well Marico balance the strategic opportunities and risks associated with ecological and societal trends. (5 Marks)

Ans 2a.

Introduction

Marico Limited, a leader in the beauty and wellness industry, has embedded sustainability into its operational framework by focusing on energy efficiency, renewable energy adoption, and waste reduction. These initiatives signify a proactive shift toward responsible business practices. However, sustainability often requires balancing ecological goals with cost control, profitability, and supply chain optimization. The company’s ability to use environmental scanning effectively becomes critical in navigating this balance, as it

 

 

Q2(B). A large conglomerate with multiple business units across various industries relies heavily on the BCG Growth-Share Matrix to allocate resources and make investment decisions. While the matrix provides a clear visual representation of business unit performance, some managers argue that it oversimplifies complex realities and may lead to suboptimal decisions, especially in fast-changing markets. Critically assess the decision of a diversified conglomerate to use the BCG Growth-Share Matrix as its primary tool for portfolio analysis. Briefly explain the limitations of this approach in today’s dynamic business environment, and how the company might improve its strategic decision-making process. You may use relevant examples to support your analysis. (5 Marks)

Ans 2b.

Introduction

The BCG Growth-Share Matrix has long been used by diversified conglomerates to assess the performance of business units and allocate resources accordingly. Its simplicity, through categorizing units into stars, cash cows, question marks, and dogs, offers a quick visualization of relative market share and growth prospects. However, in today’s dynamic and complex business environment, overreliance on the BCG Matrix can oversimplify realities. This may lead to suboptimal investment decisions and undermine long-term