Strategic Management
Dec 2025 Examination
Q1. Queens Magic Land, a leading theme park operator, diversified into the quick service restaurant (QSR) sector by leveraging its success with healthy food options in its parks. Despite initial customer interest, the chain quickly faced losses due to high competition, operational costs, and fading novelty. The QSR market is saturated with established brands like McDonald’s, KFC, and local players, making it difficult for the new entrant to sustain its premium, health-focused positioning. The management is now evaluating how to reposition the QSR business using Porter’s cost leadership, differentiation, or focus strategies to carve out a sustainable niche and improve profitability. Given the scenario, how can Queens Magic Land apply Porter’s generic strategies to reposition its quick service restaurant (QSR) business and regain competitive advantage in a crowded market with both international and domestic players? (10 Marks)
Ans 1.
Introduction
Queens Magic Land (QML), a major theme park operator, is facing considerable issues in maintaining its recently opened quick service restaurant (QSR) chain owing to severe competition, expensive operating expenses, and waning novelty. To reclaim a competitive edge, the corporation may strategically reposition its QSR business by using Porter’s general strategies of cost leadership, differentiation, or focus. Each model provides unique
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Q2(A). Let us assume that Marico Limited, which is a leading player in the beauty and wellness industry, has implemented a range of sustainability initiatives, including energy efficiency, renewable energy adoption, and waste reduction. These efforts have required significant operational adjustments and ongoing commitment. However, the company faces challenges in managing the trade-offs between environmental sustainability and other business priorities, such as cost control and supply chain efficiency. The management team is evaluating whether their current environmental scanning practices adequately capture both the risks and opportunities presented by ecological and societal trends. Critically assess Marico Limited’s approach to sustainability and efficient manufacturing in the context of environmental scanning. Briefly explain how well Marico balance the strategic opportunities and risks associated with ecological and societal trends. (5 Marks)
Ans 2A.
Introduction
Marico Limited, a major participant in the beauty and wellness business, has aggressively pursued sustainability via efforts such as energy efficiency, renewable energy adoption, and waste reduction. These initiatives demonstrate the company’s acknowledgement of the rising relevance of environmental stewardship and its ability to affect both customer perception and long-term operational effectiveness. However, incorporating sustainability into company concerns such as cost control, supply chain efficiency, and market competitiveness poses considerable hurdles. Assessing Marico’s strategy via the prism of environmental scanning reveals how efficiently the firm handles these trade-offs while capitalising
Q2(B). A large conglomerate with multiple business units across various industries relies heavily on the BCG Growth-Share Matrix to allocate resources and make investment decisions. While the matrix provides a clear visual representation of business unit performance, some managers argue that it oversimplifies complex realities and may lead to suboptimal decisions, especially in fast-changing markets. Critically assess the decision of a diversified conglomerate to use the BCG Growth-Share Matrix as its primary tool for portfolio analysis. Briefly explain the limitations of this approach in today’s dynamic business environment, and how the company might improve its strategic decision-making process. You may use relevant examples to support your analysis. (5 Marks)
Ans 2B.
Introduction
The BCG Growth-Share Matrix has long been a popular tool for diverse conglomerates to analyse their portfolio of business units and efficiently allocate resources. The matrix provides a clear visual framework for investment and divestment choices by categorising units as Stars, Cash Cows, Question Marks, or Dogs based on market growth and relative market share. However, although its simplicity and clarity make it appealing for managerial usage, using it as the principal decision-making tool in today’s rapidly
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