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 2 MGT101 (1st Term 2024-2025)
Deadline: 02/11/2024 @ 23:59
(To be released to students on BB in Week 7)
Course Name: Principles of
Management
Course Code: MGT101

Student’s Name:

Semester: 1st

CRN:

Student’s ID Number:

Academic Year: 1446 H (2024-2025)1st Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: /10

Level of Marks: High/Middle/Low

Instructions: Please Read them carefully
•
•

This assignment is an individual assignment.
Due date for Assignment 2 is 02/11/2024.

•

The Assignment must be submitted on BB only in WORD format 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.

Restricted – ‫مقيد‬

‫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 Purposes/Learning Outcomes:
After completion of Assignment-2 students will able to understand the
CLO1: State the concept of management functions, roles, skills of a manager and the
different theories of management
CLO 4: Employ knowledge and techniques of strategic planning, problem solving, decission
making and change management.

Note: Length of each answer should be around 300-350 words.

Part A
Please go through the Case and answer the question
Industry competitiveness
It is interesting to compare two completely different industries in terms of competitive rivalry. The
world fashion industry has many famous names that compete for our attention and for our
‘consumer dollar’. The images of these businesses, such as Versace, Armani and Chanel, have
been carefully built up with celebrity endorsements and expensive advertising. It would be difficult
for new firms trying to break into the industry to compete with these. Certainly, using low prices
to attract consumers to buy an ‘exclusive’ new brand of clothing is unlikely to be successful.
Exclusive shops often have agreements with fashion companies to be their exclusive outlets –
again making it difficult for new firms to get established. However, the rapid growth of technology
could make traditional retailers old fashioned and consumers may be happy in future to buy even
top fashion names through e-commerce.
The world car industry has huge excess capacity. An industry specialist has forecast that total car
sales was 40 million, yet the production capacity of the world’s car factories is around 60 million.
The only new mass- market producers in recent years have come from Korea, such as Hyundai,
and China, and the cost advantages they enjoy have reduced output in the USA and Europe, which
has reduced the economies of scale of producers in these countries. The technological expertise
and capital needed to build a new mass-market car factory make it very unlikely that new firms
will now join the world car industry. There is likely to be a number of mergers and takeovers.

Restricted – ‫مقيد‬

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
However, small niche market producers – such as makers of electric cars or super-fast sports cars
– are still launching new products in a desperate attempt to create product differentiation.
Q1. Using Porter’s Five Forces model, the information above and any other information you have
researched, compare the likely competitive rivalry in these two markets. (4 marks)

Part B
Q1. Honda & Fiat motors are often claimed to have core competence in building powerful and
efficient petrol & diesel engines respecttively. Black & Decker is recognised as having a core
competence in making small electric motors.
Research into the range of products offered either by Honda, Fiat or Black & Decker. Discuss the
benefits to any one of these businesses of having the core competence outlined above. (3 marks)

Part C
Use the website to look up more mission
statements for well-known corporations.
Q1. Evaluate the usefulness of any one of these mission statements for planning of future strategies
for this business. Also Suggest how these mission statements might be communicated to three
different stakeholder groups.

Restricted – ‫مقيد‬

(3 marks)

‫اﻟﻤ ﻤ ﻠﻜ ﺔ اﻟﻌ ﺮ ﺑﯿﺔ اﻟﺴ ﻌ ﻮ د ﯾﺔ‬
‫و ز ار ة اﻟﺘﻌ ﻠﯿﻢ‬
‫اﻟﺠ ﺎﻣ ﻌ ﺔ اﻟﺴ ﻌ ﻮ د ﯾﺔ اﻹ ﻟﻜ ﺘﺮ و ﻧﯿﺔ‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 2 MGT101 (1st Term 2024-2025)
Deadline: 02/11/2024 @ 23:59
(To be released to students on BB in Week 7)
Course Name: Principles of
Management
Course Code: MGT101

Student’s Name: SEU|ELITE

Semester: 1st

CRN:

Student’s ID Number:

Academic Year: 1446 H (2024-2025)1st Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: /10

Level of Marks: High/Middle/Low

Instructions: Please Read them carefully
•
•

This assignment is an individual assignment.
Due date for Assignment 2 is 02/11/2024.

•

The Assignment must be submitted on BB only in WORD format 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.

Restricted – ‫ﺪ‬-‫ﻣﻘ‬

‫اﻟﻤ ﻤ ﻠﻜ ﺔ اﻟﻌ ﺮ ﺑﯿﺔ اﻟﺴ ﻌ ﻮ د ﯾﺔ‬
‫و ز ار ة اﻟﺘﻌ ﻠﯿﻢ‬
‫اﻟﺠ ﺎﻣ ﻌ ﺔ اﻟﺴ ﻌ ﻮ د ﯾﺔ اﻹ ﻟﻜ ﺘﺮ و ﻧﯿﺔ‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
Assignment Purposes/Learning Outcomes:
After completion of Assignment-2 students will able to understand the
CLO1: State the concept of management functions, roles, skills of a manager and the
different theories of management
CLO 4: Employ knowledge and techniques of strategic planning, problem solving, decission
making and change management.

Note: Length of each answer should be around 300-350 words.

Part A
Please go through the Case and answer the question
Industry competitiveness
It is interesting to compare two completely different industries in terms of competitive rivalry. The
world fashion industry has many famous names that compete for our attention and for our
‘consumer dollar’. The images of these businesses, such as Versace, Armani and Chanel, have
been carefully built up with celebrity endorsements and expensive advertising. It would be difficult
for new firms trying to break into the industry to compete with these. Certainly, using low prices
to attract consumers to buy an ‘exclusive’ new brand of clothing is unlikely to be successful.
Exclusive shops often have agreements with fashion companies to be their exclusive outlets –
again making it difficult for new firms to get established. However, the rapid growth of technology
could make traditional retailers old fashioned and consumers may be happy in future to buy even
top fashion names through e-commerce.
The world car industry has huge excess capacity. An industry specialist has forecast that total car
sales was 40 million, yet the production capacity of the world’s car factories is around 60 million.
The only new mass- market producers in recent years have come from Korea, such as Hyundai,
and China, and the cost advantages they enjoy have reduced output in the USA and Europe, which
has reduced the economies of scale of producers in these countries. The technological expertise
and capital needed to build a new mass-market car factory make it very unlikely that new firms
will now join the world car industry. There is likely to be a number of mergers and takeovers.

Restricted – ‫ﺪ‬-‫ﻣﻘ‬

‫اﻟﻤ ﻤ ﻠﻜ ﺔ اﻟﻌ ﺮ ﺑﯿﺔ اﻟﺴ ﻌ ﻮ د ﯾﺔ‬
‫و ز ار ة اﻟﺘﻌ ﻠﯿﻢ‬
‫اﻟﺠ ﺎﻣ ﻌ ﺔ اﻟﺴ ﻌ ﻮ د ﯾﺔ اﻹ ﻟﻜ ﺘﺮ و ﻧﯿﺔ‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences
However, small niche market producers – such as makers of electric cars or super-fast sports cars
– are still launching new products in a desperate attempt to create product differentiation.
Q1. Using Porter’s Five Forces model, the information above and any other information you have
researched, compare the likely competitive rivalry in these two markets. (4 marks)

Part B
Q1. Honda & Fiat motors are often claimed to have core competence in building powerful and
efficient petrol & diesel engines respecttively. Black & Decker is recognised as having a core
competence in making small electric motors.
Research into the range of products offered either by Honda, Fiat or Black & Decker. Discuss the
benefits to any one of these businesses of having the core competence outlined above. (3 marks)

Part C
Use the website to look up more mission
statements for well-known corporations.
Q1. Evaluate the usefulness of any one of these mission statements for planning of future strategies
for this business. Also Suggest how these mission statements might be communicated to three
different stakeholder groups.

Restricted – ‫ﺪ‬-‫ﻣﻘ‬

(3 marks)

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

‫اﻟﻤ ﻤ ﻠﻜ ﺔ اﻟﻌ ﺮ ﺑﯿﺔ اﻟﺴ ﻌ ﻮ د ﯾﺔ‬
‫و ز ار ة اﻟﺘﻌ ﻠﯿﻢ‬
‫اﻟﺠ ﺎﻣ ﻌ ﺔ اﻟﺴ ﻌ ﻮ د ﯾﺔ اﻹ ﻟﻜ ﺘﺮ و ﻧﯿﺔ‬

College of Administrative and Financial Sciences

Part A: Competitive Rivalry in the Fashion and Car Industries
Using Porter’s Five Forces model, we can analyze the competitive rivalry in the fashion and car
industries by considering industry rivalry, the threat of new entrants, the bargaining power of
suppliers and buyers, and the threat of substitutes. The fashion industry experiences high rivalry
due to established brands like Versace, Armani, and Chanel, which leverage strong brand loyalty,
celebrity endorsements, and premium pricing strategies. This intense competition is fueled by
consumer preferences for exclusivity and innovation. In contrast, the car industry is characterized
by significant rivalry among established players, but it also faces high excess capacity, where
production capability exceeds sales (Kotler & Keller, 2016). In terms of new entrants, the fashion
industry presents relatively high barriers due to strong brand equity and exclusive agreements with
retailers, making it challenging for newcomers to gain market share. Conversely, the car industry
has high barriers as well, stemming from the substantial capital investment and technological
expertise required for mass production (Grant, 2016). While niche players in electric and luxury
markets are emerging, entry into the mass market remains daunting. Regarding suppliers, fashion
industry suppliers have moderate bargaining power, particularly if they provide unique materials.
In the automotive sector, suppliers of specialized parts can exert significant power, especially as
manufacturers innovate (Porter, 1985). Buyers in the fashion industry wield considerable power,
easily switching between brands due to low switching costs, whereas automotive consumers often
exhibit brand loyalty despite having numerous options (Kotler & Keller, 2016). Finally, in terms
of substitutes, the fashion industry faces rapid emergence of alternatives through fast fashion and
second-hand markets, while the automotive sector is increasingly threatened by public transport
and car-sharing services. In summary, both industries face significant competitive rivalry, but the
fashion industry is characterized by high brand loyalty and marketing barriers, while the car
industry contends with overcapacity and high thresholds for new entrants.

Restricted – ‫ﺪ‬-‫ﻣﻘ‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

‫اﻟﻤ ﻤ ﻠﻜ ﺔ اﻟﻌ ﺮ ﺑﯿﺔ اﻟﺴ ﻌ ﻮ د ﯾﺔ‬
‫و ز ار ة اﻟﺘﻌ ﻠﯿﻢ‬
‫اﻟﺠ ﺎﻣ ﻌ ﺔ اﻟﺴ ﻌ ﻮ د ﯾﺔ اﻹ ﻟﻜ ﺘﺮ و ﻧﯿﺔ‬

College of Administrative and Financial Sciences
Part B: Core Competence of Honda
Honda is renowned for its core competence in building powerful and efficient petrol and diesel
engines, which provides several benefits across its product range, including motorcycles, cars, and
power equipment. Firstly, Honda’s engineering excellence in engine manufacturing allows for
superior performance and fuel efficiency, which differentiates its vehicles and attracts customers
seeking reliable transportation (Kotler & Keller, 2016). This differentiation not only helps Honda
capture a larger market share but also fosters brand loyalty, as consumers associate Honda with
innovation and reliability. Additionally, Honda’s reputation enhances its overall brand image,
encouraging customers to consider various offerings from the same manufacturer, thereby creating
cross-selling opportunities. Moreover, Honda’s expertise in engine production enables the
company to achieve economies of scale, lowering the cost per unit as production volumes increase.
This cost efficiency not only improves profitability but also allows Honda to remain competitive
in pricing (Grant, 2016). Finally, Honda’s commitment to continuous innovation in engine
technology allows for investment in research and development, leading to advancements that can
meet environmental regulations and explore alternative fuel sources. This strategic focus on
innovation can result in a first-mover advantage in emerging markets, such as electric vehicles.
Inconclusion, Honda’s core competence in engine manufacturing significantly strengthens its
competitive position through product differentiation, brand loyalty, cost efficiency, and ongoing
innovation.
Part C: Evaluating Mission Statements
Considering Google’s mission statement—“To organize the world’s information and make it
universally accessible and useful”—we can evaluate its usefulness for guiding future strategies
(Google, n.d.). This statement serves as a core principle for Google’s strategic planning,
encapsulating its purpose and aligning with long-term goals centered on innovation and usercentric development. Such clarity enables Google to focus on

Restricted – ‫ﺪ‬-‫ﻣﻘ‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

‫اﻟﻤ ﻤ ﻠﻜ ﺔ اﻟﻌ ﺮ ﺑﯿﺔ اﻟﺴ ﻌ ﻮ د ﯾﺔ‬
‫و ز ار ة اﻟﺘﻌ ﻠﯿﻢ‬
‫اﻟﺠ ﺎﻣ ﻌ ﺔ اﻟﺴ ﻌ ﻮ د ﯾﺔ اﻹ ﻟﻜ ﺘﺮ و ﻧﯿﺔ‬

College of Administrative and Financial Sciences
expanding its range of services, including search, cloud computing, and artificial intelligence,
which are all aimed at enhancing access to information (Kotler & Keller, 2016). The mission also
promotes a culture of inclusivity and accessibility, driving initiatives that bridge the digital divide.
In terms of communication, Google can share its mission with employees through internal training
sessions and newsletters, emphasizing how individual roles contribute to this overarching goal,
thereby boosting engagement and motivation. For consumers, Google can incorporate its mission
into marketing campaigns and product features, reinforcing brand loyalty by clearly
communicating its commitment to accessibility. Lastly, Google can present its mission during
investor presentations and in annual reports, illustrating how strategic initiatives align with longterm growth, which can enhance investor confidence (Grant, 2016). In summary, Google’s mission
statement effectively guides its strategic objectives and can be communicated to various
stakeholders through tailored approaches that foster understanding and engagement.

References
Google. (n.d.). Mission statement. Retrieved from
Grant, R. M. (2016). Contemporary strategy analysis (9th ed.). Wiley.
Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson.
Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free
Press

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