Midterm+MGT+OM+670+Virtual+Class+Fall+2023

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Kenyatta University *

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AUDITING

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Management

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Nov 24, 2024

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Name : [please fill this part out and make sure the file name is your name Midterm MGT OM 670 Fall 2023] Course Title : Strategic Planning and Management Course Number : MGT OM 670 Instructor : Anthony S. Mattia Midterm Exam The deadline to upload the completed exam to Canvas is October 23, 2023, 11:59pm Maximum Points Your Score Comments Part I 1 10 2 25 3 25 4 20 5 5 Subtotal 85 Part II 10 Part III 5 Penalty for late submission Up to 1 day -10 points, up to 2 days - 20, >2 days - 100 There’s no grace period. There are no partial day penalties. Lateness starts after 11:59pm on October 23. Total 100 Note: Don’t delete the grid above or any of the questions from this document. Don’t rearrange the questions. Just add spaces below each question and put your answers there. Keep it in Microsoft Word, black font. The Midterm Guidelines memo will give you an idea of how to answer the questions. Part I (85 points maximum) Answer all of the following questions with respect to Snap-On Inc. (“Snap-On Tools”) and use the case materials on Snap-On Tools that I posted. Y OU NEED THE DATA AND OTHER INFORMATION IN THOSE MATERIALS TO ANSWER THESE QUESTIONS . G ENERAL DESCRIPTIONS ARE NOT ENOUGH . You should not use any outside information. Using any other materials on Snap-On Tools will result in a lower score. In each of the answers, do not just list factors; you need to provide a succinct description with information that has been provided. Again, if there is data you should use it. Provide APA citations (in-text citations and a reference list). Any use of artificial intelligence or any collaboration with others is not allowed and will result in heavy penalties and possibly a zero score for the exam. 1
1. Describe the Snap-On Tools business model (10 points) 2. Prepare an analysis of the external environment faced by Snap-On Tools (i.e., STEEP analysis) (25 points) 3. Using the Porter approach, prepare an analysis of the industry in which Snap-On Tools operates. (25 points) 4. Describe the strengths of Snap-On Tools (20 points) 5. Describe the weaknesses of Snap-On Tool (5 points) Part II (10 points maximum) Congratulations! For this question you are the newly appointed CEO of Foods R Us, a supermarket company. It is now December 2019. You have been approached by a national advocacy group that has discovered that some of the jobs at Foods R Us pay less than what they consider a living wage. These are jobs in the stores and warehouses, not the headquarters. This advocacy group wants the wages of that group raised to $30 per hour. This would be a doubling of the wages of those employees. Your CFO estimated that this wage increase would have caused 2018 net income to drop from $600 million to $300 million. The 2018 net profit margin was 2.6% of total revenue and it has been consistently at that level for many years. Another group has approached you. This group believes that the price of food in Foods R Us is too high and beyond the reach of many consumers. They want you to drop the prices so that more people can afford to shop there. This group is making an argument about the right to good nutrition. This was a fairly general proposal, so your CFO was unable to quantify the effect. Assume that you are looking at this from a social responsibility point of view and have read the works of Milton Friedman and Archie Carroll. You are also familiar with the concept of stakeholder analysis, and you have already studied the company’s strategic analysis. Explain what decisions you will make to address or not address the interests of each of these groups. Be sure to make a compelling argument. You have to make two decisions (the wage increase and the price drop), and don’t pick the “we need to explore this more” or “we need more information” position. Focus on the quality of your argument, not whether you think I would side with Friedman or Carroll. I could make an argument for either side in these situations. Part III Administrative points (all or nothing) (5 points) File named as directed above Uploaded file is in Microsoft Word Student name on exam Grading grid not removed Questions not removed, rearranged, or modified 2
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