MGMT2130_FinalExam_Questions-F23 (2)

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Feb 20, 2024

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FINAL EXAM MGMT 2130 F ALL 2023 M ANAGEMENT P RACTICES AND P RINCIPLES P ROFESSOR : ENOC VELAZQUEZ NAME: Angelica Ezetah STUDENT#201750191 1. You have 120 minutes (2 hours) to complete the exam. Late exams will not be accepted. 2. Please type your responses in this document for each question 3. The questions correspond to the case on Suncor. Only use information from this case and course material in your responses. You are permitted to use a 2-sided 8”x11” study sheet (typed or printed). 4. Your answers must be based only on your own ideas. Any collaboration with other students or use of AI tools (e.g., ChatGPT) will result in a grade of 0 on this exam. 5. You must hand back the paper copy of the case study. Failure to return the case study will result in a grade of 0 on this exam. 6. When you are finished, please submit your answers as a Word document or PDF using the link on our course D2L page. 7. This exam is out of 52 marks and is worth 35% of your final grade Good Luck!

Whe answering all of the following questions, be sure to provide details from the case to serve as evidence. Responses without evidence from the case will not receive full marks. 1. Identify and discuss 3 key (internal) strengths for Suncor (6 marks). Market Dominance; Suncor is one of Canada’s largest energy companies, with a market capitalization of $58 billion. The company’s new CEO Rich Kruger has nearly 40 years of experience at global energy giant ExxonMobil, Kruger led Exxon’s Canadian subsidiary Imperial Oil Ltd. The company will be able to benefit greatly from the CEO having his experience. “Two of the board directors serving on the CEO search committee were named to Suncor’s board in July, as part of the deal struck to appease US-based activist investor Elliot Investment Management” US-based actvist investor could invest greatly into the company. 2. Identify and discuss 3 key (internal) weaknesses for Suncor (6 marks). “Elliot publicly expressed frustration last spring at what it called a recent decline in performance at the energy producer. The activist investor also criticized Suncor for its safety record” If safety record is not improved, we could lose potential investments from Elliot Investment Management which could be a huge loss to the company. A highly competitive market may limit growth and opportunity. The energy and oil industry are huge industries filled with different competitors, this could potentially limit growth and opportunities. “The company suffered a high-profile cybersecurity incident in June but says the breach did not have any effect on its financial results for the quarter” The company needs to adhere to data protection and privacy laws even if it might not have financials effects. 3. Identify and explain the 2 most important opportunities facing Suncor (6 marks). “As of August 1, 535 of these jobs' reductions have already occurred, Kruger said, resulting in a cost reduction of about $125 million so far” Global Expansion; With a US- based activist investor, there’s leveraging alliances and market presence for international growth.

4. Identify and explain the most significant threat facing Suncor (4 marks). Evolving regulations on emissions, data privacy and safety standards and pressure to meet stricter environmental standards. 5. a) New Suncor CEO Rich Kruger recently replaced interim CEO Kris Smith. As described in the case, he quickly engaged in significant cost-cutting measures. What are the 4 most important leadership traits/characteristics that Kruger will need to effectively implement these measures ? Why ? (8 marks). Intelligence- Kruger needs to understand the impact this cost-cutting measure could have on the company and be able to solve any problems that come with it. High energy- Kruger needs to be able to deal with the many demands that come with these measures, that he might face. Dominance- Kruger needs to be able to implement new rules and methods to help managers influence their subordinates to achieve the organizational goals. Knowledge and expertise: with Kruger's experience he should be able to help managers make good decisions and discover ways to increase effectiveness and efficiency. b) Using the 5 main types of power, what 2 types of power will be most effective for CEO Rich Kruger as he implements the cost cutting measures? Why ? (6 marks) Expert power: “The company’s new CEO Rich Kruger has nearly 40 years of experience at global energy giant ExxonMobil, Kruger led Exxon’s Canadian subsidiary Imperial Oil Ltd. The company will be able to benefit greatly from the CEO having his experience.” Expert power is derived from possessing knowledge

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and expertise in a particular area and with his experience his opinions, ideas and decisions should be held in high regard by the employees. Legitimate power: power derived from the position a person holds in an organization’s hierarchy. As the CEO Rich Kruger possesses a lot of power and should be able to implement these cost cutting measures easily. 6. a) Imagine that Suncor’s board of directors decided to offer CEO Rich Kruger $20M worth of Suncor stock if he is able to save the company another $400 million in cost savings in 2024. Select a process theory of motivation and use its main ideas to analyze how this incentive would likely increase Kruger’s work motivation (6 marks). Goal setting theory: states that the goal setting is essentially linked to task performance. States that specific and challenging goals along with appropriate feedback contribute to a higher and better task performance. The goal of achieving $400 million in cost savings is clearly set and Kruger should focus his efforts on this goal. The $20M worth of Suncor Stock is the reward to achieving this goal, so this is a pull for kruger to work closely to meeting this goal. Progress towards the goal and its impact on the company's performance would likely be regularly communicated to Kruger. According to the theory, setting challenging goals leads to increased effort and persistence. The substantial incentive of $20M worth of stock is likely to drive Kruger to put in extra effort. 6. b) Should Suncor focus on using feedforward control or feedback control to achieve this $400 million cost savings goal? Why ? (4 marks). Feedforward control allows an organization’s managers to anticipate potential problems. It is control that occurs before the work is underway. Suncor should use feedforward control to achieve this $400 million cost savings goal, so he is able to foresee any problems and fix them.

7. Discuss and provide an example of how Suncor can use the following (below) , in its goal to increase workplace safety: a) output contro l (2 marks), Financial measures of performance can be put in place, these will motivate, regulate and coordinate employees. b) behavioral control (2 marks), Suncor can put methods in place that will help or assist employees to achieve organizational goals like direct supervision or management by objectives c) and clan control (2 marks), -makes control possible even when there are no managers available. Suncor can implement certain standards of performance and codes of ethics, so employees know what’s always expected of them.

MGMT2130_FinalExam_Questions-F23 (2)

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