Final Exam

Arab Academy Strategic Management Wed.
25 March 2020
MBA Program (4 P) Final Exam -Online 8 – 11 pm
Answer the following questions (40points)

Question I: Critically analyze, and compare the two following mission statements. Give
your suggestions for each. (20 points)
1. Federal Express Mission

“FedEx will produce superior financial returns for shareowners by providing high value-
added supply chain, transportation business and related information services through
focused operating companies. Customer requirements will be met in the highest quality
manner appropriate to each market segment served. FedEx will strive to develop mutually
rewarding relationships with its employees, partners and suppliers. Safety will be the first
consideration in all operations. Corporate activities will be conducted to the highest
ethical and professional standards”.
2. TNT’s Mission
“Our mission is to exceed customers’ expectations in the transfer of their goods and
documents around the world. We deliver value to our customers by providing the most
reliable and efficient solutions in distribution and logistics. We lead the industry by:
 Instilling pride in our people
 Creating value for our shareholders
 Sharing responsibility for our world
To achieve our objective of industry leadership through operational excellence, financial
clarity and a strong global brand are prerequisites, as are integrity and proper corporate
governance. Yet we place additional emphasis on social responsibility. Efforts on all these
fronts improve our reputation with employees, stakeholders and the world, enhance
employee pride throughout the company and create value for our shareholders.
Question II: In each of the following situation, define and explain the strategy adopted by
the organization (20 points)
1. Lvei Strauss & Co. recently cut 20 % of the nonretail and manufacturing work-force
as a part of cost reduction policy aimed at streamlining the firm’s operations and
generate cost savings nearly $200 million per year. The company is having trouble
competing in the intensely competitive retail clothing industry, marked by fleeting
fashions and “sale only” shoppers.
1
2. Although Honda Motor Company is best known for its cars and trucks, the company
actually started out in the motorcycle business. Through competing in this business,
Honda developed a unique ability to build small and reliable engines. When
executives decided to move into the automobile industry, Honda was successful in
part because it leveraged this ability within its new business. Honda also applied its
engine-building skills in the all-terrain vehicle, lawn mower, and boat motor
industries.”
3. General Electric, formed by Thomas Edison in 1890, began as a lighting business.

Shortly after the company was formed, it engaged in horizontal mergers and other
forms of expansion that resulted in producing radios, refrigerators and wind
turbines. GE developed World War I aircraft and eventually became the largest
manufacturer of jet engines through GE Aviation, a new line of business. Besides
successfully acquiring television networks, financial services firms and aerospace
companies, General Electric (GE) has also engaged in oil drilling and computer
manufacturing, among other ventures. The notable distinction between GE and
other companies is its success rate. General Electric is the only company from the
original 12 companies listed on the Dow Jones Industrial Average that remains.
Moreover, it has sold companies for billions of dollars, as well as purchased
underperforming companies engaged in similar GE’s activities and successfully
improved and expanded these businesses.
4. Air Asia is a Malaysian-based airline. It is Asia's largest low-fare, no-frills airline and
a pioneer of low-cost travel in Asia. Air Asia group operates scheduled domestic and
international flights to over 65 destinations spanning 18 countries. Together with the
associate companies (Air Asia X, Thai Air Asia, Indonesia Air Asia, Philippines' Air
Asia Inc. and Air Asia Japan) the company is ready to serve valuable and memorable
flight with its believable, “Now Everyone Can Fly.” Air Asia applies its strategy on its
whole operations which characterized as; high aircraft utilization, no frills (no free
foods, no seat assigned, ticketless, no refundable ticket, no loyalty program),
modernize operations (simple process, single class seating, standardized operations),
basic services, point to point network, lean distribution system, positioning, and lean
distribution system, positioning, and low operating cost.

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Arab Academy Strategic Management Wed.

Answer the following questions (40points)

1. Federal Express Mission

3. General Electric, formed by Thomas Edison in 1890, began as a lighting business.

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