MONDAY: 4 December 2023. Morning Paper. Time Allowed: 3 hours.
Answer ALL questions. Marks allocated to each question are shown at the end of the question. Do NOT write anything on this paper.
QUESTION ONE
MWANANCHI WOOD AND ROOFING PRODUCTS LIMITED (MWRPL)
Mwananchi Wood and Roofing Products Limited (MWRPL) started its operations in the year 2011 as a partnership business run by Peter and Patrick. Both partners were accomplished entrepreneurs and were officials of the County Chamber of Commerce which greatly assisted its members in generating business ideas. The partnership converted into a private company in the year 2015 as a result of significant business growth. Peter and Patrick were the first directors of MWRPL. When the partnership converted into a private company, the directors moved their head office from Murungaru, a small town in Nyandarua County to Nairobi City.
The two were involved in the day to day running of their company though they were board members. Peter was the chairman of the board of directors while Patrick was the chief executive officer (CEO). Patrick was responsible for operations in the company, Peter was responsible for leadership, marketing and human resource in addition to carrying out the chairman’s role. This at times brought about confusion in the company leading to bad decisions.
Due to the complexities associated with the shift from partnership to a company and the confusion in decision making, MWRPL hired the services of Mamlaka Management Consultancy (MMC) to assist in establishing working structures and recruitment of relevant key personnel. Before the consultants came on board, the business had a workforce of 67 employees, a few working on permanent basis while majority were engaged on temporary contracts. The Consultants analysed the defunct partnership business to establish strengths and weaknesses and recommended a divisional structure. They also advised that all the employees who were retained by the business after conversion into a company for them to change their mindset. MMC also recommended to MWRPL to recruit new employees in order to
fill identified skills gap. The consultants insisted that the staff recruited be apt in intuition, technology, data collection, analysis and dissemination of information to ensure decisions in the company were mainly arrived at scientifically. The new employees were to focus on both internal and external matters affecting the company.
The company’s main objective as stated in its Memorandum of Association was to offer wood and roofing products in the country. MWRPL segmented its market by offering tailor made solutions to two classes of customers; furniture for home owners and roof construction for the construction industry. The company adopted diverse marketing as its primary marketing strategy.
Most of the company’s operations took a job shop approach. For each segment, the company worked on one project at a time before moving to the next project. Project scheduling skills were necessary to the production managers so as to ensure customer orders were completed on time. This ensured high levels of customer satisfaction.
To continuously improve the quality of its products, MWRPL invested heavily in technology and customer service. A slogan was devised and circulated “think and delight the customer”. Improved quality of its products and services has resulted into lowering of the production cost. As compared to the competitors, the market now prefers MWRPL’s products due to quality and affordability.
The company diversified its services to capture new customers and markets. In year 2021 and after carrying out an environmental analysis, MWRPL noted an opportunity through its research and marketing department and included solar appliances in its products offering. This targeted low-income earners in rural areas who were not connected to the national electricity power grid.
By mid-2022, the demand for the wood products and roofing services had exponentially expanded with the company’s clientele being spread in all the 47 counties in the country. MWRPL has since expanded its operations and services and has opened branches in all East African Countries. The company has future plans of opening branches in West African countries.
Required:
1. Explain why the following are important to MWRPL:
Internal analysis. (2 marks)
External analysis. (2 marks)
2. The County Chamber of Commerce assisted its members in generating business ideas.
Discuss FIVE techniques that could have been used by the members to generate business ideas. (10 marks)
3. Analyse FIVE characteristics of the organisational structure recommended by Mamlaka Management
Consultancy (MMC). (5 marks)
4. Despite being board members, Peter and Patrick were involved in the day to day running of their company leading to bad decisions.
With reference to the above statement, analyse FOUR inhibitors to effective decision making. (8 marks)
5. MWRPL adopted diverse marketing as its primary marketing strategy.
Propose to MWRPL, SEVEN strategies that they could use while developing a diverse marketing campaign. (7 marks)
6. MWRPL’s production managers were expected to possess project scheduling skills in order for them to be effective.
Highlight SIX contents they could have included in their project schedules. (6 marks)
(Total: 40 marks)
QUESTION TWO
1. Enumerate FIVE characteristics of transactional leadership style. (5 marks)
2. Explain FIVE challenges associated with delegation of duties. (5 marks)
3. Suggest FIVE demerits of charismatic leadership in an organisation. (5 marks)
(Total: 15 marks)
QUESTION THREE
1. Explain FOUR triggers of change in an organisation. (4 marks)
2. Describe FIVE shortcomings of Abraham Maslow’s theory of motivation. (5 marks)
3. Outline SIX ways in which a business organisation could use macro environment to its advantage. (6 marks)
(Total: 15 marks)
QUESTION FOUR
1. Examine FIVE aspects of Mary Parker Follett’s management theory. (5 marks)
2. Discuss FIVE elements of the marketing mix. (10 marks)
(Total: 15 marks)
QUESTION FIVE
1. Examine FIVE benefits of contingency theory of leadership to an organisation. (5 marks)
2. Assess FIVE benefits of proper planning in an organisation. (10 marks)
(Total: 15 marks)
