BSDW MM-FT_PT 2021 Exam Part B 5 June 2021 Clean.docx

**University of the Witwatersrand, Johannesburg** Course or topic Course or topic name(s) Paper Number and title Examination to be held during Year of Study (Art & Science leave blank) Degrees/Diplomas for which this course is prescribed Faculty presenting candidates Internal examiner Ext...

**University of the Witwatersrand, Johannesburg** Course or topic Course or topic name(s) Paper Number and title Examination to be held during Year of Study (Art & Science leave blank) Degrees/Diplomas for which this course is prescribed Faculty presenting candidates Internal examiner External examiner Time allowance Instructions to candidates: **Fill in your details here:** **First name** ----------------------- -- **Surname** **Student Number** **Cell-phone number** **e-mail address** **\ ** **Business Strategy for a Digital World** Master of Management in the Field of Digital Business, 2021, BUSA 7464A **Final Examination** Total marks available: 120 marks (Part A 64 marks; Part B 56 marks) Duration: 3.5 hours Venue: Online +-----------------------------------------------------------------------+ | **[Instructions to Students]** | | | | Welcome to the exam for **Business Strategy for a Digital World,** | | Master of Management in the Field of Digital Business 2021. | | | | This is an [Open Book Exam]. The [exam is | | timed] and you must take less than 3.5 hours to complete | | it. | | | | The Exam comprises two parts: | | | | **Part A** is Multiple Choice, where you answer by checking boxes or | | entering letters as applicable. Please note that in some cases | | negative marking of incorrect answers applies | | | | You need to complete Part A separately, in Qualtrics, by clicking on | | the link provided in the exam instructions on Ulwazi. | | | | This **Part B** is free-form text, where you answer questions in your | | own words and style. This section needs to be **completed in this | | Word document**, which, when you are finished, you must upload to | | Ulwazi. | | | | Please be brief and succinct. Bulleted lists are fine. If you are | | able, tables, grids and diagrams are also acceptable provided they | | are your own original work. The word-count indications are merely a | | guideline. They are not hard limits. | | | | For the essay style questions the high level assessment criteria are | | provided. | | | | It is suggested that you save your answers regularly to ensure that | | whatever happens nothing gets lost. Please also save a version on | | your computer. At least five minutes before the exam time is you need | | to start uploading the documents you have completed or are working | | on. T**he onus is on you to ensure you upload your work on | | time**. **It is recommended you set an alarm to remind you** | | | | **As back-up, please also send your Part B to** [Patrick | | Zhuwao](file:///C:%5CUsers%5Cbrianarmstrong%5CDocuments%5CWits%5CCour | | ses%5CBSDW%5CBSDW%20Generic%[email protected]) | | | | To ensure we can coordinate your results, please enter your name, | | student number and email address in this document also. These are | | compulsory. The file name of your document must include your name and | | surname please. | | | | This is **[an individual examination]** and discussing it | | with fellow students, including via electronic means, is not | | permitted. You need to work independently. Copy and paste from the | | internet is forbidden. The usual non-plagiarism rules apply. | | | | Your end score of this exam (Parts A & B together) will count 50% | | towards your final mark. | | | | Good luck! | +-----------------------------------------------------------------------+ **[PART B: Written Answers and Essays] Total 56 Marks** **Note this part of the exam has a case study on Lyft, with 4 questions based on the case study, and then another 4 general question not related to the Lyft case study.** LYFT CASE STUDY {#lyft-case-study.ListParagraph} =============== **Based on a case study of Lyft -- Patrick Zhuwao - 10th May 2021** Introduction {#introduction.ListParagraph} ------------ **Lyft, with a 30% market share, is the second-largest ride sharing company in the United States after Uber. Lyft develops, markets, and operates a mobile app offering vehicles for hire, motorized scooters, a bicycle-sharing system, and a food delivery service amongst other services. The company is based in San Francisco, California and operates in 644 cities in the United States and 12 cities in Canada. In March 2019, Lyft became the first ride-sharing company to hold an initial public offering raising \$2.34 billion. The company set aside some shares to be given to long-time drivers. In April 2021, Lyft sold the self-driving technology it had been developing to Toyota for US\$550 million** **Figure 1: *Lyft Timeline*** Lyft services and operations {#lyft-services-and-operations.ListParagraph} ---------------------------- **Depending on the location, Lyft offers various service levels including shared rides with other passengers traveling in the same general direction (suspended during the Covid-19 Pandemic), private rides, or larger or luxury vehicles.** **Lyft service is generally accessed via mobile app. Riders must download the Lyft mobile app to their smartphone, sign up, enter a valid phone number, and enter a valid form of payment (either a credit card, Lyft Gift card, or link to an Apple Pay, Google Wallet, or PayPal account). Users set up a personal profile with a name, phone number, other information, and payment preference, which could be a credit card, e-commerce payment system or, in some cases, cash. Once the trip is completed, funds are debited from the funding source.** **Drivers provide a vehicle, which could be owned, rented, or leased. Drivers must meet requirements for age, health, car age and type, have a driver's licence and a smartphone or tablet, and may be required to pass a background check. In many cities, vehicles must pass annual safety inspections and/or must have an emblem posted in the passenger window. Some cities also require drivers to have a business license. After each transaction, drivers and customers may rate each other and users with low ratings may be deactivated.** Origins and early history of Lyft as Zimride {#origins-and-early-history-of-lyft-as-zimride.ListParagraph} -------------------------------------------- **Lyft was launched in the summer of 2012 by computer programmers Logan Green and John Zimmer as a service of Zimride, a long-distance intercity carpooling company they founded in 2007. The name Zimride came from the country Zimbabwe, where, during a trip in 2005, Green observed locals sharing minivan taxis. Zimride launched at Cornell University, where, after six months, the service had signed up 20% of the campus. Zimride was focused on college campuses.** **When Facebook opened its API to third-party developers in 2008, Green said he thought \"Here's the missing ingredient.\" Zimride linked drivers and passengers through the Facebook Connect application. By using Facebook profile information, student drivers and passengers could learn about each other.** Recent history and developments at Lyft {#recent-history-and-developments-at-lyft.ListParagraph} --------------------------------------- **In May 2013, the company officially changed its name from Zimride to Lyft. Lyft launched as a ridesharing company for shorter trips within cities. The change from Zimride to Lyft was the result of a hackathon that sought a means of daily engagement with its users, instead of once or twice a year. In July 2013, Lyft sold Zimride to Enterprise Holdings, the parent company of Enterprise Rent-A-Car, to enable the company to focus exclusively on the growth of Lyft.** Regulatory issues {#regulatory-issues.ListParagraph} ----------------- **In April 2014, Lyft hired two lobbying firms, TwinLogic Strategies, and Jochum Shore & Trossevin, to address the regulatory barriers and opposition it had received since its launch. Due to regulatory hurdles in New York City, the company altered its business model when establishing Lyft on the East Coast of the United States. Lyft\'s launch in New York City occurred on the evening of July 25, 2014, and, in accordance with the Taxi and Limousine Commission (TLC) and the approval of the Manhattan Supreme Court, only drivers registered with the TLC were permitted to drive Lyft-branded vehicles in New York City.** **Lyft and other ride sharing companies have, in some cases, been accused of unfair practices when dynamic pricing has resulted in extreme surcharges during emergencies such as Hurricane Sandy, the 2014 Sydney hostage crisis, and the 2017 London Bridge attack. Due to dynamic pricing models, prices for the same route may vary based on the supply and demand for rides at the time the ride is requested. When rides are in high demand in a certain area and there are not enough drivers in such area, fares increase to get more drivers to that area. In the United States, drivers do not have any control over the fares they charge; lawsuits allege that this is an illegal restraint on trade in violation of the Sherman Antitrust Act of 1890.** Growth {#growth.ListParagraph} ------ **In August 2014, the company introduced a shared ride concept, which provides cheaper fares. In December 2015, Lyft became the first ridesharing company allowed to pick up passengers at Los Angeles International Airport. In December 2017, Lyft expanded into Canada, with operations in the Greater Toronto Area, Hamilton, Ontario and Ottawa.** **In March 2018, Lyft partnered with Allscripts to create a platform allowing healthcare providers to arrange rides for patients who lack transportation to appointments. The service would be available to 2,500 hospitals, 180,000 physicians, and approximately 7 million patients. In November 2018, Lyft acquired Motivate, a bicycle-sharing system and the operator of Capital Bikeshare and Citi Bike. The company also announced plans to add 28,000 Citi Bikes and expand its service.** **In August 2020, Lyft began its partnership with rental car company Sixt in order to let users access rental cars through the \"Rentals\" tab in their app. Most of the rental cars are owned and operated by Sixt, a predominantly European company (German-owned) with 85 locations in the US. For each car rental made through the app, Lyft will receive a commission. The program began as Lyft Rentals in 2019 with Lyft owning and operating its own rental fleet in Los Angeles and San Francisco.** Developing autonomous vehicles {#developing-autonomous-vehicles.ListParagraph} ------------------------------ **In January 2016, Lyft announced an autonomous car partnership with General Motors. On May 5, 2016, Lyft and General Motors announced, as part of their partnership, that it planned to begin testing self-driving cars within the next year. On June 6, 2017, Lyft announced a new partnership with Boston-based autonomous self-driving car start-up NuTonomy to eventually put autonomous, on-demand vehicles on the road. In September 2017, Lyft partnered with Ford Motor Company to develop and test autonomous vehicles.** **In March 2018, Lyft partnered with GoMentum Station to test its self-driving technology. On March 14, 2018, Lyft partnered with Magna International to co-fund, develop, and manufacture autonomous vehicle systems to produce self driving technology that will be available to all car manufacturers. In October 2018, Lyft acquired Blue Vision Labs, a London-based augmented reality startup, for \$72 million. This expertise is expected to help autonomous cars to extract useful information from street-level images.** **In December 2020, Lyft announced that it will launch a multi-city U.S. robotaxi service in 2023 with Motional.** Lyft sells its self-driving technology to Toyota for US\$550 million {#lyft-sells-its-self-driving-technology-to-toyota-for-us550-million.ListParagraph} -------------------------------------------------------------------- **In April 2021, Lyft sold its self-driving technology to Toyota for US\$550 million in a deal that allowed Lyft to offload a cash burning burden and risk of developing a costly technology that has yet to enter the mainstream. Lyft will now focus on what it can do best with autonomous vehicles by offering services such as routing, consumer interface and managing, and maintaining and cleaning partners\' autonomous vehicle fleets, which could mean added revenue.** **Lyft intends to focus on reviving their core division following a bruising pandemic year. Lyft also believes human ride-hail drivers will remain important for the foreseeable future to serve customers during peak demand periods, bad weather, or in areas that self-driving cars are unable to navigate.** **Lyft already allows consumers to book rides in self-driving vehicles in select cities in partnerships with Alphabet Inc's Waymo and Motional, the joint venture between Hyundai Motor Co and Aptiv. It will continue to collect real-world driving data through some 10,000 vehicles it rents out to consumers and ride-hail drivers. The data is valuable for the development of self-driving vehicles that Toyota's Woven Planet will have access to under the deal.** **\ ** QUESTIONS RELATED TO THE LYFT CASE STUDY {#questions-related-to-the-lyft-case-study.ListParagraph} ======================================== Question B.1: Abundance and Scarcity in the case of Lyft (3 marks) {#question-b.1-abundance-and-scarcity-in-the-case-of-lyft-3-marks.ListParagraph} ------------------------------------------------------------------ **Can you identify and explain one instance of how abundance has assisted in the development of Lyft and its product portfolio?** **(3 marks)** **Explain abundance (1 mark), identify an instance of abundance (1 mark) and apply to Lyft (1 mark).** Enter your answer here: Question B.2: Platform Ecosystems and Lyft (6 marks) {#question-b.2-platform-ecosystems-and-lyft-6-marks.ListParagraph} ---------------------------------------------------- What features of Lyft platform ecosystem have enabled the business concept to thrive within the US and not developed within the Zimbabwean environment from which the originally idea was conceptualised? Enter your answer here: Question B.3: Platform launch strategies adopted by Lyft (6 marks) {#question-b.3-platform-launch-strategies-adopted-by-lyft-6-marks.ListParagraph} ------------------------------------------------------------------ Can you identify the different launch strategies that Lyft has used since it was launched as Zimride in 2007? Enter your answer here: Question B.4: Exponential Organisations -- IDEAS -- as applied by Lyft (4 marks) {#question-b.4-exponential-organisations-ideas-as-applied-by-lyft-4-marks.ListParagraph} -------------------------------------------------------------------------------- What are the two most important features of the internal IDEAS components of Lyft as a potential exponential organisation and why do you say these two are the most important? Enter your answer here: GENERAL QUESTIONS (NOT RELATED TO THE LYFT CASE STUDY) {#general-questions-not-related-to-the-lyft-case-study.ListParagraph} ====================================================== Question B.5: Porter's 5 forces and digitalisation 10 marks {#question-b.5-porters-5-forces-and-digitalisation-10-marks.ListParagraph} ----------------------------------------------------------- List one example for each of Porter's 5 forces of how digitalisation may make an industry [less] attractive for existing participants / incumbents, and briefly describe why this is the case. **Answers (complete all 5):** a. Rivalry between participants b. Threat of new Entrants c. Threat of Substitutes d. Power of Suppliers e. Power of Buyers Question B.6: Learning Organisations 5 marks {#question-b.6-learning-organisations-5-marks.ListParagraph} -------------------------------------------- Discuss why the Learning Organisation is an appropriate strategic response to the recognition that the Emergent School of strategy at least partly reflects the way strategy actually plays out in most large organisations. Your answer will be assessed on how well but succinctly you relate why the principles of the learning organisation address the challenge of ensuring that emergent strategy delivers the purpose of the organisation. (Guide: \~ 200 words) *Enter your answer here* Question B7: MSMPs compared to Traditional Schools of Strategy 15 marks {#question-b7-msmps-compared-to-traditional-schools-of-strategy-15-marks.ListParagraph} ----------------------------------------------------------------------- Some scholars suggest that platform business models are a fundamentally new school of strategy and indeed "turn many precepts of traditional strategy on their heads"; others argue that platforms are rather a particular means of executing strategy but that the core principles of strategic theory remain valid. The strategy process has been summarized as illustrated in the figure below. Discuss how Multi-Sided Marketplace Platform (MSMP) business models relate to this diagram. Argue where, and the extent to which, they are aligned with this model, where they extend the concepts and theories encapsulated in the model, or where they contrast with such. **Figure 1:** *Overview of the Strategy Process* *Your answer will be assessed on how complete and compelling your assessment of platform business model theory (as presented in the lectures, course material and prescribed reading) is in relation to each of the blocks in the* figure above. Your answer will be assessed on a) the completeness of identifying the relevant aspects of traditional schools of strategy in each block; b) how the core principles of MSMPs relate to each of these or not; c) any new aspects of MSMPs that are not covered by traditional schools of strategy; and d) literary quality. The marks breakdown for each block of the diagram is as follows: a. Purpose, Values and Vision: ±10% b. External Context ±20% c. Internal Context ±20% d. Strategic Analysis & Choices; strategy formulation ±15% e. Execution Plans, goals and objectives ±15% f. Continuous Appraisal ±10% g. Literary quality and flow ±10% [We strongly advise that your answer should closely follow the outline above], i.e., a) through to f) *(Guide: ± 250 to ± 500 words)* *Enter your answer here* Question B.8: The role of the Board in Strategy -- Eskom example 8 marks {#question-b.8-the-role-of-the-board-in-strategy-eskom-example-8-marks.ListParagraph} ------------------------------------------------------------------------ Argue what you believe the Eskom Board's role should be in formulating strategy for Eskom? What is the range of choices (and describe each option briefly), and assess each option with regard its suitability for Eskom. Your answer will be assessed on a) completeness of addressing the principles of Boards role in the strategy formulation process (30%); b) the application of these principles to Eskom (60%); c) literary quality (10%) (Guide: ± 200 to ± 400 words Enter your answer here: **\ ** **[End of Exam Part B]**