Strategic Management Assessment

Assignment A (STRA02-7/DLO2 05/2025)

Total: 10 marks

Important please read this section before starting with your assignment.

The purpose of the assignment is to test your own competence and mastery of the applicable module outcomes. Therefore, it is of utmost importance that we see your own answers/thoughts/ideas expressed in your own words. You will be penalised for simply copying theory without explanation or application to the scenario/s provided. You should use the theory in support of your own answer. No marks will be awarded for theory copied from any source.

Any sources used when researching and drafting your answers must be referenced correctly, as stipulated in the Milpark Reference Guide. You must work through the reference guide to ensure your assignment complies with the referencing requirements. Note also that even if you reference a source correctly, you cannot simply copy reams of information directly from it. As stated in the above paragraph we want answers drafted in your own words.

Use of Artificial Intelligence (AI) tools for this assignment: the Milpark Good Conduct and Disciplinary Policy is very clear that using AI tools when drafting an assessment is academic misconduct. For purposes of this assignment, the use of AI tools of any kind is strictly prohibited. AI tools include any generative AI tools (eg. ChatGPT or Google Gemini) as well as any AI language and/or writing tools (eg. Grammarly or Quilbot). Failure to comply with this prohibition will result in sanctions being imposed.

If you are not sure whether an application or tool that you want to use is allowed, please reach out to your module tutor or academic owner to confirm before simply proceeding.

AI use declaration

Important: ALL assignments must include this declaration whether you used AI tools or not.

The AI use declaration is a personal acknowledgement that describes how you used AI tools/technologies to prepare your assignment. The declaration aims to create clarity and transparency about the following:

• the name and version of the AI tool/s with the URL used
• the prompt/s you used in the AI tool/s
• a brief (no longer than two sentences) explanation of how the output from the AI tools/technologies was used in the process of completing your assignment

Please include the declaration in the following format at the end of your assignment before your reference list.

Declaration of AI use

I ackowledge using [AI tool/technology name] and [URL/link] to generate.... Prompt: I entered the following prompt/s...

Use: I used the output to.../I modified the output to...

OR

I have not used any AI tools or technologies to prepare this assignment.

Example 1

I acknowledge using Google Gemini [https://gemini.google.com/] to generate an outline for my assignment.

I entered the following prompt:

Provide an outline for a 500-word essay on the impact of climate change on rural communities in South Africa.

I used the output at the initial stage of the assignment process to help plan my answer structure. I modified the outline generated, discarding several suggested paragraphs and replacing them with my own ideas based on the additional research and reading I completed and referenced below.

Example 2

I acknowledge the use of Grammarly [https://www.grammarly.com/] in helping me to proofread and review my assignment during the final editing stage.

I used the following features: Clarity and correctness. I used the following prompt:

Suggest ways to make my writing more scholarly.

I reviewed the feedback generated by Grammarly critically and, based on this, revised the writing using my own words and expressions.

SOLARTECH SOLUTIONS - 10 MARKS

Question 1 (10 marks)

Read the following article and answer the question that follows:

Case Study: SolarTech Solutions A Sustainable Energy Pioneer

Introduction

SolarTech Solutions was founded in 2010 by a team of engineers and environmentalists dedicated to providing innovative solar energy solutions. The company initially focused on supplying solar panels to residential customers but later expanded into commercial and industrial markets.

General Economic Environment Renewable Energy Sector

The demand for renewable energy in South Africa has surged due to rising electricity costs and frequent power outages. Government incentives and environmental policies have further supported the transition to sustainable energy sources. By 2023, the renewable energy market in South Africa had grown significantly, with projections showing continued expansion.

Global Market Considerations

SolarTech Solutions expanded into international markets to remain competitive, leveraging e-commerce platforms to reach customers in other African countries. The company introduced region-specific product offerings, considering climate and energy needs differences.

Industry Competition

SolarTech Solutions faced increasing competition from both local and international solar energy providers. Companies such as SunPower and Tesla Energy had already established strong brand identities and had extensive distribution networks.

Customer Bargaining Power

Initially, SolarTech Solutions had a competitive edge due to its innovative technology and affordable pricing. However, as more companies entered the market, customers had more choices, allowing them to negotiate better deals. The company responded by offering financing options and extended warranties to retain customers

Availability of Substitutes

Other renewable energy solutions, such as wind and hydroelectric power, provided alternatives to solar energy. Additionally, some large businesses opted for direct agreements with independent power producers instead of investing in their own solar solutions.

Competitive Landscape

Established global brands such as SunPower, Tesla Energy, and First Solar dominated the industry with strong supply chains and research and development investments. New entrants with innovative business models also posed a threat to SolarTech Solutions' market position.

SolarTech Solutions' Business Strategy

1. MarketExpansion

The company focused on expanding its reach by forming partnerships with property developers to install solar systems in newly built housing estates

2. Product Innovation

SolarTech developed smart solar solutions integrated with home automation systems, allowing users to monitor and optimise their energy usage via mobile apps.

3. Customer-Centric Approach

The company launched a customer loyalty programme that offered discounts on future purchases and free maintenance services for long-term clients.

4. Financial Incentives

SolarTech partnered with banks to offer flexible financing options, making solar installations more accessible to businesses and homeowners.

5. Sustainability Initiatives

The company committed to recycling solar panel components and reducing its carbon footprint throughout its supply chain.

Vision

SolarTech Solutions aims to become a leading provider of smart solar solutions in Africa, contributing to a greener, more sustainable future.

Source: SolarTech Solutions. (2024). A sustainable energy pioneer: A case study on strategic management. [Internal document]

Evaluate SolarTech Solutions' overall business strategy and discuss whether it provides a competitive advantage. Support your argument with examples from the case study. Your response should be structured using the following headings to ensure a well-organised answer:

• Leveraging Market Opportunities
• Product Innovation for Differentiation
• Customer Retention and Value Additio
• Strategic Partnerships for Market Expansion
• Financial Accessibility and Competitive Pricing (5 x 2 = 10)

TOTAL MARKS: 10