Strategic management past paper.kasneb
CS31 Page 1
Out of 2
CERTIFIED SECRETARIES (CS)
ADVANCED LEVEL
STRATEGIC MANAGEMENT
MONDAY: 20 April 2026. Morning Paper. Time Allowed: 3 hours.
This paper consists of five (5) questions. Question one is a case study. 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
UMOJA HEALTH SERVICES LIMITED (UHSL)
Umoja Health Services Limited was established in 1998 as a family-owned healthcare provider operating a single
outpatient clinic in Nakuru. Over time, the company expanded into diagnostics, pharmacy services specialist care and
now runs facilities in several Counties. Its long history has created a strong internal identity but it has also led to deeply
rooted routines and assumptions about how the organisation should compete and serve patients.
For many years, the company relied on its reputation for personalised service and trusted relationships with local
communities. However, the healthcare sector has changed significantly due to digital health platforms, rising patient
expectations, new regulatory requirements, insurance pressures and increased competition from both hospitals and low-
cost walk-in clinics. The board is concerned that the Company’s old way of operating may no longer be sufficient in the
current environment.
At a recent board retreat, disagreement emerged over the Company’s strategic direction. Some directors argued that the
Company’s mission had remained too general and was being interpreted differently across departments. Others noted
that while the Company’s publicly promoted patient-centred care, some internal practices seemed more focused on short-
term revenue targets than quality outcomes. The board therefore resolved to review the Company’s mission, strategic
objectives and values.
The Management also realised that the Company had not systematically assessed whether its internal resources and
capabilities were still a source of competitive advantage. Some executives believed that the Company’s long-standing
relationships with communities, strong clinical reputation and integrated service model remained valuable strengths.
Others argued that these advantages would erode unless they were supported by technology, better process coordination
and stronger performance monitoring.
To address these concerns, the board proposed a strategic review process that would include scenario planning, a review
of the Company’s value-creating activities and a redesign of the performance measurement system. It was also suggested
that the Company should establish stronger strategic surveillance and use better information systems to support long-
term strategic control.
Required:
(a)
Explain how the history of Umoja Health Services Limited could influence its present strategy using the
concepts of path dependency and history as a resource. (8 marks)
(b)
Drawing from the above case:
(i) Explain FOUR reasons why Umoja Health Services Limited should ensure that its strategic objectives
are consistent with its mission (4 marks)
(ii) Using the information in the case, analyse FOUR internal weaknesses or strategic gaps that may
undermine Umoja Health Services Limited’s competitiveness. (4 marks)
(c)
Explain FOUR ways on how scenario planning and gap analysis could help the UHSL respond to uncertainty
and avoid strategic drift. (8 marks)
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(d)
Discuss FOUR ways on how the use of VRIO analysis and the value chain/value system could help UHSL
company identify and sustain competitive advantage. (8 marks)
(i) Explain how the Balanced Scorecard and Strategy Map could help UHSL align departmental priorities
and improve performance monitoring. (4 marks)
(ii)
Discuss how Strategic Information Systems and Strategic Surveillance could strengthen UHSL’s
strategic control and long-term effectiveness. (4 marks)
(Total: 40 marks)
QUESTION TWO
(a)
Explain THREE benefits of analysing the political, economic, sociocultural, technological, ecological and legal
(PESTEL) environment in strategic management. (6 marks)
(b)
Describe TWO roles of industry analysis that could assist an organisation to identify opportunities, threats and
its competitive position when formulating strategy. (4 marks)
(c)
Summarise FIVE effects of industry life cycle analysis on strategic choice. (5 marks)
(Total: 15 marks)
QUESTION THREE
(a)
Explain Bowman’s Strategy Clock model and illustrate how it can be used to evaluate an organisation’s
strategic positioning. (4 marks)
(b)
Analyse the role of each of the following strategies in shaping competitive behaviour.
(i) Cooperative strategy. (2 marks)
(ii) Game theory. (2 marks)
(c)
Describe SEVEN features of an effective business model. (7 marks)
(Total: 15 marks)
QUESTION FOUR
(a)
Propose FOUR strategic reasons why an organisation might adopt vertical integration. (8 marks)
(b)
Describe SEVEN ways in which portfolio matrices could support strategic decision making in an organisation.
(7 marks)
(Total: 15 marks)
QUESTION FIVE
(a)
Assess FOUR applications of the McKinsey 7-S framework for diagnosing strategic alignment problems in an
organisation. (8 marks)
(b)
Evaluate SEVEN contributions of strategy communication to the success of strategy implementation in an
organisation. (7 marks)
(Total: 15 marks)
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CS31 Page 1
Out of 3
CERTIFIED SECRETARIES (CS)
ADVANCED LEVEL
STRATEGIC MANAGEMENT
MONDAY: 1 December 2025. Morning Paper. Time Allowed: 3 hours.
This paper consists of five (5) questions. Question one is a case study. 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
SUNRISE ELECTRONICS LTD.
Sunrise Electronics Ltd, a mid-sized Kenyan company specialising in consumer electronics, has long enjoyed steady
growth in the smartphone, tablet and household appliance markets. However, recent disruptions in global supply chains,
fierce competition from Asian firms and changing consumer preferences have forced the company to rethink its
strategy. In response, management embarked on a comprehensive strategic management exercise, relying on the
PESTEL model, the BCG matrix, a matrix organisational structure and cultural considerations in strategy formulation.
The PESTEL analysis provided critical insights into the external environment shaping the company’s future. Politically,
Kenya’s relatively stable environment continued to attract investment, although election-related uncertainties
occasionally posed risks. John Ochieng, the Chief Executive Officer (CEO), pointed out in a boardroom discussion that
the government’s push for digital literacy offered both opportunities in educational gadgets and challenges due to high
import duties. Economic pressures were equally pronounced, with fluctuating exchange rates and inflation increasing
the cost of imported components. Peter Mutua, the Operations Manager, remarked that rising shipping costs were
eroding profit margins and that local sourcing had to be considered more seriously. On the social front, younger
consumers increasingly demanded trendy yet affordable smartphones, while middle-class families sought energy-
efficient appliances. Aisha Tum, Head of Marketing, explained to her team that the cultural emphasis on status made
consumers prefer premium-looking devices, even when affordability remained a major factor. Technological forces
added further complexity, as rapid advances in 5G connectivity and smart home integration created opportunities while
heightening pressure to innovate. Ecological awareness was another driver, pushing Sunrise Electronics Ltd. to adopt
eco-friendly packaging and energy-efficient products. Lucy Mandera, the Human Resource (HR) Director, emphasised
in a staff forum that employees themselves were becoming more concerned about sustainability and wanted the
company’s practices to reflect this commitment. Finally, the legal environment demanded compliance with labour laws,
intellectual property rights and consumer protection regulations. Jointly, these factors outlined both opportunities and
threats the company had to navigate.
Alongside the environmental scanning the leadership turned to BCG matrix to review its product portfolio.
Smartphones, with a high market share in a fast-growing sector, emerged as the company’s star product, demanding
heavy investment in research, development and marketing. Home appliances, with steady sales and reliable profits,
were classified as cash cows, providing the financial backbone to fund innovation. Tablets, though facing declining
global demand, were placed as question mark, with potential for niche use in the educational sector. DVD players,
however, were deemed dogs, with falling sales and little prospect of revival, prompting discussions of phasing them
out. During a strategy session, John Ochieng stressed that smartphones would be the future growth engine, but cash
cows like appliances had to be maintained to fund ongoing initiatives. To implement these strategic decisions, the
company relied on a matrix organisational structure, where employees reported both to functional heads such as
marketing, operations and HR and to product managers overseeing categories like smartphones and appliances. This
structure encouraged collaboration across functions and allowed the company to respond quickly to market shifts while
leveraging specialised expertise. However, it also created challenges, in that employees sometimes complained of
confusion caused by dual reporting, while conflicts over resource allocation between departments were frequent. Lucy
Mandera later admitted that staff often felt pulled in two directions, with the marketing team pushing for faster product
launches while operations department insisted on maintaining strict quality and cost controls. To mitigate these
conflicts, HR introduced training on collaboration and conflict resolution, while the leadership appointed project
coordinators to smooth communication.
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