Management Question

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 1
Strategic Management (MGT 401)
Due Date: 01/03/2025 @ 23:59
Course Name: Strategic Management

Student’s Name:

Course Code: MGT 401

Student’s ID Number:

Semester: Second

CRN:
Academic Year:2024-25-2nd

For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
Out of 10

Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY
•
•
•
•
•
•
•
•

The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

Learning Outcomes:
CLO1- Recognize the basic concepts and terminology used in Strategic Management.
CLO2-Describe the different issues related to environmental scanning, strategy formulation, and
strategy implementation in diversified organizations
CLO5-Demonstrate how executive leadership is an important part of strategic management.

Assignment Question(s): (2.5 marks for each question)
1. What is a learning organization? How is this approach very important for strategic
management? Give an example of a learning organization from the Saudi market
and assess its competitive advantage.
2. Why does a corporation need a board of directors? Discuss the relationship
between the board of directors, CEO, and shareholders.
3. Is it possible for a company to have a sustainable competitive advantage when its
industry becomes hyper-competitive? Justify your answer and give at least one
example from the real market.
4. Choose any corporation from the Saudi market and discuss the forces driving its
industry competition (review chapter 4-slide 18).

Notes:
– Your answers MUST include at least four scholarly peer-reviewed references, using a proper
referencing style (APA). Remember that these scholarly references can be found in the Saudi
Digital Library (SDL).
– Make sure to support your statements with logic and argument, citing all sources referenced.

Answers

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 1
Strategic Management (MGT 401)
Due Date: 01/03/2025 @ 23:59
Course Name: Strategic Management

Student’s Name: SEU ELITE

Course Code: MGT 401

Student’s ID Number:

Semester: Second

CRN:
Academic Year:2024-25-2nd

For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
Out of 10

Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY
•
•
•
•
•
•
•
•

The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

Learning Outcomes:
CLO1- Recognize the basic concepts and terminology used in Strategic Management.
CLO2-Describe the different issues related to environmental scanning, strategy formulation, and
strategy implementation in diversified organizations
CLO5-Demonstrate how executive leadership is an important part of strategic management.

Assignment Question(s): (2.5 marks for each question)
1. What is a learning organization? How is this approach very important for strategic
management? Give an example of a learning organization from the Saudi market
and assess its competitive advantage.
2. Why does a corporation need a board of directors? Discuss the relationship
between the board of directors, CEO, and shareholders.
3. Is it possible for a company to have a sustainable competitive advantage when its
industry becomes hyper-competitive? Justify your answer and give at least one
example from the real market.
4. Choose any corporation from the Saudi market and discuss the forces driving its
industry competition (review chapter 4-slide 18).

Notes:
– Your answers MUST include at least four scholarly peer-reviewed references, using a proper
referencing style (APA). Remember that these scholarly references can be found in the Saudi
Digital Library (SDL).
– Make sure to support your statements with logic and argument, citing all sources referenced.

Answers

1A learning organization is an organization that has a culture and systems in place
to continuously learn, adapt, and improve. It is characterized by a commitment to
ongoing learning, knowledge sharing, and innovation. In a learning organization, learning
is not limited to individual employees but is embedded within the organization’s
processes, practices, and structures. The learning organization approach to strategic
management is considered superior to the traditional top-down approach for several
reasons. Firstly, in a rapidly changing business environment, the top-down approach can
be slow and rigid, making it difficult for organizations to adapt to new challenges and
opportunities. In contrast, a learning organization is flexible and responsive, as it
encourages employees at all levels to contribute their knowledge and expertise, fostering
innovation and agility. Secondly, the top-down approach often relies on a few individuals
at the top of the hierarchy to make strategic decisions. This can lead to limited
perspectives and a lack of buy-in from employees, resulting in resistance to change and
decreased motivation. In a learning organization, decision-making is decentralized, with
employees empowered to participate in strategic discussions and contribute their insights.
This participatory approach fosters a sense of ownership and engagement among
employees, leading to better implementation of strategic initiatives. Lastly, the learning
organization approach recognizes the importance of continuous learning and knowledge
sharing. It promotes a culture of curiosity, experimentation, and reflection, where
mistakes are seen as opportunities for growth rather than failures. This mindset enables
organizations to continuously improve their processes, products, and services, enhancing
their competitive advantage in the long run.

An example of a learning organization from the Saudi market is the Saudi
Arabian Oil Company (Saudi Aramco). The mission statement of Saudi Aramco is “to
provide the world with reliable, secure and sustainable energy supplies”. The vision of
the company is “to be the world’s leading integrated energy and chemicals company”.
Saudi Aramco is considered a learning organization because it is constantly adapting and
evolving in order to stay competitive in the market. It is focused on continuous learning
and improvement and is open to new ideas and approaches. Saudi Aramco is a successful
learning organization. It has been able to remain competitive in the market and has
achieved several successes, such as the successful launch of its IPO in 2019. However,
the organization has faced some challenges in implementing its learning organization

approach. One of the main challenges is the need to balance the need for innovation and
creativity with the need for stability and consistency. Additionally, the organization has
faced challenges in managing the cultural differences between its employees, as well as
the need to ensure that all employees are given the opportunity to contribute to the
organization’s learning and development.

2-

A corporation needs a board of directors to ensure effective oversight,
accountability, and strategic direction. The board plays a crucial role in protecting the
interests of shareholders by monitoring management actions, approving major decisions,
and ensuring ethical practices. Active boards contribute significantly to strategic
management by offering valuable guidance, monitoring financial performance, and
shaping long-term goals.
The relationship between corporate governance and social responsibility is
integral. Good corporate governance requires companies to be accountable not just to
shareholders but also to other stakeholders, including employees, customers, and the
environment. For instance, firms like Johnson & Johnson have implemented ethical
frameworks that influence corporate decisions, ensuring alignment with societal
expectations. Corporate social responsibility (CSR) goes beyond legal requirements,
addressing ethical and discretionary responsibilities, such as philanthropy and
environmental sustainability, which are closely tied to good governance

3–

According to D’Aveni, companies in a hypercompetitive industry learn to quickly
imitate the successful strategies of market leaders – making it increasingly difficult to
sustain any competitive advantage. As explained in Chapter Four, competitive advantage
in a hypercompetitive industry comes from an up-to-date knowledge of environmental
trends and competitive activity coupled with a willingness to risk a current advantage for
a possible new advantage. Companies must thus be willing to cannibalize their own
successful products in order to sustain their competitive advantage. Since
hypercompetitive industries go through escalating stages of competition, the only real
sustainable competitive advantage lies not in a corporation’s product line, but in its ability
to learn and to adapt to constantly changing conditions. “Course hero “

4In the Saudi market, Saudi Aramco serves as a prominent example of a corporation
driven by intense industry competition. The key forces driving competition in
Aramco’s industry, based on Porter’s Five Forces Model, include:
• Threat of new entrants: While the capital-intensive nature of the oil and gas
industry acts as a barrier to entry, the rise of alternative energy sources (solar,
wind) and technological advancements could introduce competition
• Bargaining power of suppliers: Aramco controls vast oil reserves, limiting supplier
power. However, technology providers in drilling or refinery processes hold
moderate influence.
• Bargaining power of buyers: Large consumers and governments (as buyers of
crude oil) have significant bargaining power, especially during fluctuating oil prices.
• Threat of substitutes: The global shift toward renewable energy and electric
vehicles represents a growing substitute threat.
• Industry rivalry: Aramco faces competition from other oil giants like ExxonMobil,
BP, and national oil companies, which push for competitive pricing and
technological innovation

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