FACULTY OF BUSINESS AND MANAGEMENT STUDIES

UNDERGRADUATE BUSINESS PROGRAMME

ACADEMIC YEAR 2019-2020, Second Semester
July - 2020
PORT1

Programme Title: BMS,A&F, MM, BE, BIS

Module Title:Strategic Management
Module Code:GSP6000
Assessment Method: PORT 1
Level: 6 Block: 1
Module Credits: 20 Weighting: 50%
Due Date:10-May-2020, 12:00 AM Word Count: 3,000
Examiners: Dr. Gina G. Jocson

Version: 1
 Gulf College – Faculty of Business and Management Studies – In academic

Affiliation with CARDIFF SCHOOL OF MANAGEMENT

A. Written work

 A signed declaration that the work is your own (apart from otherwise referenced
acknowledgements) must be included after the reference page of your assignment
 Each page must be numbered.
 Where appropriate, a contents page, a list of tables/figures and a list of abbreviations
should precede your work.
 All referencing must adhere to School/Institutional requirements.
 A word count must be stated at the end of your work.
 Appendices should be kept to the minimum and be of direct relevance to the content of
your work.
 All tables and figures must be correctly numbered and labelled.

B. Other types of coursework/assignments

 Where coursework involves oral presentations, discussions, poster presentations, etc.,

specific instructions will be provided by your module leader/team.

---------------------------------------------------------------------------------------------------------------------------------------------
Rewrite below part just after the References of your assignment.

WORK DECLARATION

I,[Name of Student],hereby declare that the uploaded PORT 1 through Turnitin is my own work. I
affirm that this has been researched and completed in accordance with the college rules and
regulations on plagiarism.

I acknowledge the advice given by the module tutors on proper referencing to avoid plagiarism and
the rules on the academic unfair practice.

I acknowledge that I read and understand the plagiarism guide written at the end of this
assessment. Any academic misconduct will be handled according to the rules and regulations of the
university.

[Name of Student]

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General instructions

PORT 1 must be submitted online through Turnitin before due date. An acknowledgement will be
given to you by your teacher upon presentation of the finance clearance. This is your receipt, keep
it.

The only circumstance in which assignments can be uploaded late via Turnitin is if a Mitigating
Circumstances (MC) form is submitted at the same time. In these circumstances work may be
submitted within five (5) working days. Make sure to secure MC form and submit the same to the
concerned staff.

Write the number of words used, excluding references, at the end of your assignment. Provide the
list of sources you used at the last page of your assignment with proper label ‘References’. You may
include diagrams, figures etc. without word penalty. The number of words will be + or – 10% of the
total words allowed.

A work declaration must be included just after the reference page of your assignment. This ensures
that you prepare your work in good faith. Any form of collusion and/or academic unfair practice will
be dealt with according to the pertinent rules and regulations of the partner university. Please read
carefully the plagiarism guide.

Assessment Details

This PORT 1 comprises 50% of the total assessments marks. It contains four different small tasks.
These will develop the following skills:

 Communication skills. Through the compilation of literature and reviews, students will be
able to practice their writing skills which are needed in the workplace.
 Analytical skills. The report enables the students to analyse and evaluate the benefits of the
different activities done in the class. This skill will eventually help them evaluate options
necessary to make decisions in the workplace.
In addition, the assessment will test the following learning outcomes:

 Develop the ability to accurately deploy established strategy techniques and approaches, as well as
the latest thinking, regarding analysis, enquiry and application to strategy related concepts and
practical situations.
 Develop a range of problem solving techniques and approaches which can be used to understand
and resolve theoretical and practical situations.
 Be able to apply the methods, techniques and approaches learnt to review, consolidate extend and
apply their knowledge of strategy and related areas to initiate strategy related tasks and projects,
from theoretical or practitioner perspectives.
 Understand and critically evaluate arguments, assumptions, abstract concepts, uncertainties and
data relating to strategy, which will enable them to frame questions, make judgements and develop
solutions to theoretical and practical problems relating to strategy and its environment.

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 Assessment Tasks
Case Analysis: FACEBOOK’S ACQUISITION OF INSTAGRAM

Consider this unlikely snapshot: A recent start-up with less than a dozen employees distributes a
free app that allows consumers to retouch photos on their mobile phones and share them easily
with others on social network platforms. The company has no real revenue stream, but the app has
30 million users and the firm was valued at $20 million last year (2011) during a venture capital
funding round. Enter Facebook, which offers the start-up — Instagram — $1 billion as a purchase
price.

Facebook on April 9, 2012, announced a billion- dollar-deal to buy the start-up behind the wildly
popular smart phone photo sharing application Instagram. The big-ticket purchase was seen by
some as a move by Facebook to strengthen the defences against Google and blazingly hot new
comer Pinterest in the weeks ahead of what promises to be a history making stock market debut.

“For years, we have focused on building the best experience for sharing photos with your friends
and family,” Facebook cofounder Mark Zuckerberg said in announcing the deal. Zuckerberg called
the acquisition “an important milestone for Facebook because it is the first time we have ever
acquired a product and company with so many users” but promised it was a rare acquisition.

Instagram is one of many apps that allow for creative alteration and sharing of images. So what sets
it apart? Simplicity is one element: It enables users to apply instant filters to accomplish effects that
would take considerably more effort using other programs. “The product is unique,” says Karthik
Hosanagar, the Wharton Operations and Information Management Professor. He also adds “Lots of
consumers take pictures on their mobile devices, but the share rate for those pictures was low
because these pictures … looked mundane. Instagram changed that by making these pictures novel
and a better candidate for sharing. They addressed the [fact] that people like to share pictures of
where they are, but want to share something that looks worthy of sharing.”

Another Wharton Operations and Information Management Professor Eric Clemons notes that
“Increasingly, young Facebook users are blurring the distinction between a real camera and an
iPhone camera, if you shoot with a digital SLR, you process your photos in photoshop before you
upload to Facebook. But if you shoot with an iPhone and upload directly, then you can’t do any
processing. Instagram lets you process your photos, and Facebook is a logical owner.”

“Instagram has built a sizeable mobile photo sharing community,” said NPD analyst Linda Barrabee.
“Clearly the value proposition of instagram’s offering is a solid fit for Facebook.” The free mini
program lets people give classic looks to square photos using ‘filters’ and then share them at
Twitter, Facebook or other social networks. Apple crowned Instagram its app-of-the-year for 2011.

“We are psyched to be joining Facebook,” Systrom said in a message at the Instagram website. “It’s
important to be clear that Instagram is not going away,” He continued. “We will be working with
Facebook to evolve Instagram and build the network.” Facebook users flood the world’s largest
social network with images to share with friends, but the website hasn’t proven to be an ideal stage
for organizing pictures around topics-a forte that has made Pinterest a star.

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“Facebook is pushing into the Pinterest space,” said analyst Tim Bajarin of Creative Startegies. “The
thing about Instagram and Pinterest is that they are really interesting in the context of posting
pictures around topics,” he continued.

Silicon Valley analyst Rob Enderle said that Facebook is building a defence against Pinterest which
has been luring people’s attention from the social network. “Instagram is a reasonable competitive
hedge against Pinterest,” Rob Enderle said. “At the heart of both start-ups is picture indexing, they
are just handled differently.”

So, what does Facebook get for a billion dollars? According to Hosanagar, in addition to taking out a
potentially big competitor in photo sharing, the company will gain “a firm hold in the mobile
environment where it is more vulnerable” — and was therefore probably more willing to pay a high
cost now “rather than later when the cost could be even higher.” Wharton operations and
information management professor Eric Clemons adds that “Facebook needed some of Instagram’s
functionality, and Instagram is worth much more to Facebook than it is alone. It makes sense for
Facebook to add this capability. It is probably worth hundreds of millions to [them].”

“Clearly, Facebook as well as the Instagram founders felt that the market opportunity was big,”
Hosanagar says. “At the end of the day, Instagram’s bankers and management did a great job, and I
suspect that they probably created a nice bidding war for [the company].” Still, he views Instagram
as “a novelty today. For me, it was unclear how long it would last and how it would be monetized.
So I feel the price was just too high.”

While Bajarin referred to the billion-dollar price tag for Instagram ‘boggling’, Enderle contended
that it could prove to be a bargain if it helps Facebook shine for its IPO on Wall Street. Facebook in
February filed for a stock offering and could raise as much as US $10bn in the largest floatation ever
by an Internet company on Wall Street. Facebook-the leading social network in all but 6 countries
notably China and Russia-claims more than 845mn users. Facebook’s value has been estimated
between US$ 75bn and US$ 100bn.

“The Instagram buy could be worth tens of billions of dollars if it holds off Pinterest and Facebook
remains on top.” Enderle said.

“Given what Facebook is trying to do-get a massive valuation when it goes public-a billion dollars is
a trivial sum.”

Facebook likely wanted to keep Instagram out of the hands of rivals such as Google while at the
same time ramping up mobile offerings as people increasingly weave smart phones and tablet
computers into lifestyle, according to analysts.

Sources: Adapted from the following

 http://knowledgetoday.wharton.upenn.edu/2012/04/facebook-and-instagram-how-much-
is-a-picture-worth/
 http://www.forbes.com/sites/anthonykosner/2012/04/15/facebook-wants-to-be-your-
mobile-app-provider-instagram-is-just-a-1-billion-objec
 t-lesson/http://www.bbc.co.uk/news/technology-17658264

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Assignment Tasks:

Based upon the case, prepare an essay of 3,000 words. Your essay should consider the following
tasks:

TASK 1: Using SWOT analysis, critically identify and discuss the strategic opportunities and threats
facing Facebook? Present the identified opportunities and strengths in tabular form followed by
the critical discussion in each of the opportunities and strengths identified.

TASK 2: Determine what the different methods of strategic development are and why companies
opt for external methods of growth. Critically evaluate which method of growth is applicable in the
case of Facebook’s acquisition of Instagram.

TASK 3: With the aid of the TOWS matrix, critically analyse the strategic decision made by
Instagram’s management to join forces with Facebook.

***END OF ASSIGNMENT TASK***

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 GSP6000 - Strategic Management
AY: 2019-2020/ Second Semester

Marking Scheme

CRITERIA DESCRIPTION Marks

 Overview of the theories/concepts applicable to the case.

INTRODUCTION  A brief profile of the case. 15
 Objectives of the assignment

Discussions should be relevant and convincing evidence to

support answers that are presented. The structure should be well
organized and easy to follow. Assignment tasks must be followed
in content discussions.
60
CONTENT
 Breadth and Depth ( 40 Marks)

 ACCURACY AND RELEVANCE (10 marks)

 ORGANIZATION (10 marks)

CONCLUSION These should be drawn according to the objectives of the

assignment mentioned in the introduction and must be based 15
only upon discussed theories.
REFERENCES An authority that contributes to your answers should be 10
mentioned accordingly using the Harvard Referencing.
TOTAL 100

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Plagiarism

1. Plagiarism, which can be defined as using without acknowledgement another person’s words or
ideas and submitting them for assessment as though it were one’s own work, for instance by
copying, translating from one language to another or unacknowledged paraphrasing. Further
examples of plagiarism are given below:

Use of any quotation(s) from the published or unpublished work of other persons, whether
published in textbooks, articles, the Web, or in any other format, which quotations have not been
clearly identified as such by being placed in quotation marks and acknowledged.

Use of another person’s words or ideas that have been slightly changed or paraphrased to make it
look differentfrom the original.

Summarising another person’s ideas, judgments, diagrams, figures, or computer programmes

without reference to that person in the text and the source in a bibliography or reference list.

Use of services of essay banks and/or any other agencies.

Use of unacknowledged material downloaded from the Internet.

Re-use of one’s own material except as authorised by the department.

2. Collusion, which can be defined as when work that has been undertaken by or with others is
submitted and passed off as solely as the work of one person. This also applies where the work of
one candidate is submitted in the name of another. Where this is done with the knowledge of the
originator both parties can be considered to be at fault.

3. Fabrication of data, making false claims to have carried out experiments, observations, interviews or
other forms of data collection and analysis, or acting dishonestly in any other way.
Plagiarism Detection Software (PDS)

As part of its commitment to quality and the maintenance of academic standards, the University reserves
the right to use Plagiarism Detection Software (PDS), including Turnitin. Such software makes no judgment
as to whether a piece of work has been plagiarised; it simply highlights sections of text that have been found
in other sources.

The use of plagiarism detection software fulfills two functions. The first is to enhance student learning (i.e. as
a developmental tool); the second is to guard against and identify unfair practice in assessment.

Further information and guidance can be found in the University’s policy on the Use of Plagiarism Detection
Software.

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GSP6000 - Strategic Management
Marking Rubrics
0 20 30 40 50 60 70 80 100

Criteria No answer Very Poor Poor Satisfactory Good Very Good Excellent Outstanding Exceptional
introduction No answer given or An attempt to Poor discussion Basic discussion Good Very good Excellent Outstanding Exceptional
a totally irrelevant answer the basic of the of the discussion of discussion of the discussion of discussion of discussion of
answer. requirements of assessment task; assessment points in the points in the the main the main the main
the task but irrelevant ideas task; limited assessment; assessment task; points in the points in the points in the
lacks clarity; and concepts; ideas and relevant ideas; relevant ideas assessment assessment assessment
highly irrelevant irrelevant concepts; relevant and concepts; task; highly task; highly task; highly
ideas and materials which limited use of materials relevant relevant ideas relevant ideas relevant ideas
concepts; highly reflects very relevant reflects subject materials and concepts; and concepts; and concepts;
irrelevant limited subject materials which knowledge; reflects excellent outstanding exceptional
materials which knowledge; no reflects limited assignment thoroughness of presentation of presentation of presentation of
reflects very clear assignment subject objectives are subject relevant relevant relevant
limited subject objectives knowledge; set knowledge; materials materials materials
knowledge; no assignment assignment which reflects which reflects which reflects
assignment objectives are objectives are thoroughness thoroughness thoroughness
objectives set unclear defined of subject of subject of subject
knowledge; knowledge; knowledge;
clearly defined clearly defined clearly defined
assignment assignment assignment
objectives objectives objectives
CONTENT No answer given or An attempt to Poor Basic Good Very good Excellent Outstanding Exceptional
a totally irrelevant examine the examination of examination of examination of examination of examination of examination of examination of
TASK 1 answer. case but no the case with no the case with the case with the case with the case with a the case with a the case with a
originality; very originality; ideas limited originality; perception and high degree of high degree of high degree of
poor are not originality; ideas organised originality; perception and perception and perception and
organisation of organised; poor not properly ideas; organised originality; originality; originality;
ideas; very poor analysis of organised; basic organised thoughts and highly highly highly
analysis of arguments; very analysis with arguments; ideas; analysis organised organised organised
arguments; no limited concepts limited compare- displays thoughts and thoughts and thoughts and
details and with no relevant arguments; contrast organised ideas; analysis ideas; analysis ideas; analysis
evidences; no evidences; compare- concepts arguments; displays a displays a displays a
theories used to limited theories contrast supported by compare- strong and strong and strong and
address the to address issues concepts with details; contrast and well-organised well-organised well-organised
issue limited details distinguish differentiation of arguments; arguments; arguments;
and evidences; theories to concepts compare- compare- compare-

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 limited use of address issues supported by contrast and contrast and contrast and
theories to relevant details; differentiation differentiation differentiation
address issues distinguish of concepts of concepts of concepts
theories with supported by supported by supported by
evidences to relevant details relevant details relevant details
address issues. and evidences; and evidences; and evidences;
distinguish distinguish distinguish
relevant relevant relevant
theories with theories with theories with
related related related
evidences to evidences to evidences to
address issues address issues address issues.
CONTENT No answer given or An attempt to Poor Basic Good Very good Excellent Outstanding Exceptional
a totally irrelevant examine the examination of examination of examination of examination of examination of examination of examination of
TASK 2 answer. case but no the case with no the case with the case with the case with the case with a the case with a the case with a
originality; very originality; ideas limited originality; perception and high degree of high degree of high degree of
poor are not originality; ideas organised originality; perception and perception and perception and
organisation of organised; poor not properly ideas; organised originality; originality; originality;
ideas; very poor analysis of organised; basic organised thoughts and highly highly highly
analysis of arguments; very analysis with arguments; ideas; analysis organised organised organised
arguments; no limited concepts limited compare- displays thoughts and thoughts and thoughts and
details and with no relevant arguments; contrast organised ideas; analysis ideas; analysis ideas; analysis
evidences; no evidences; compare- concepts arguments; displays a displays a displays a
theories used to limited theories contrast supported by compare- strong and strong and strong and
address the to address issues concepts with details; contrast and well-organised well-organised well-organised
issue limited details distinguish differentiation of arguments; arguments; arguments;
and evidences; theories to concepts compare- compare- compare-
limited use of address issues supported by contrast and contrast and contrast and
theories to relevant details; differentiation differentiation differentiation
address issues distinguish of concepts of concepts of concepts
theories with supported by supported by supported by
evidences to relevant details relevant details relevant details
address issues. and evidences; and evidences; and evidences;
distinguish distinguish distinguish
relevant relevant relevant
theories with theories with theories with
related related related
evidences to evidences to evidences to
address issues address issues address issues.

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CONTENT No answer given or An attempt to Poor Basic Good Very good Excellent Outstanding Exceptional
a totally irrelevant examine the examination of examination of examination of examination of examination of examination of examination of
TASK 3 answer. case but no the case with no the case with the case with the case with the case with a the case with a the case with a
originality; very originality; ideas limited originality; perception and high degree of high degree of high degree of
poor are not originality; ideas organised originality; perception and perception and perception and
organisation of organised; poor not properly ideas; organised originality; originality; originality;
ideas; very poor analysis of organised; basic organised thoughts and highly highly highly
analysis of arguments; very analysis with arguments; ideas; analysis organised organised organised
arguments; no limited concepts limited compare- displays thoughts and thoughts and thoughts and
details and with no relevant arguments; contrast organised ideas; analysis ideas; analysis ideas; analysis
evidences; no evidences; compare- concepts arguments; displays a displays a displays a
theories used to limited theories contrast supported by compare- strong and strong and strong and
address the to address issues concepts with details; contrast and well-organised well-organised well-organised
issue limited details distinguish differentiation of arguments; arguments; arguments;
and evidences; theories to concepts compare- compare- compare-
limited use of address issues supported by contrast and contrast and contrast and
theories to relevant details; differentiation differentiation differentiation
address issues distinguish of concepts of concepts of concepts
theories with supported by supported by supported by
evidences to relevant details relevant details relevant details
address issues. and evidences; and evidences; and evidences;
distinguish distinguish distinguish
relevant relevant relevant
theories with theories with theories with
related related related
evidences to evidences to evidences to
address issues address issues address issues.

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CONCLUSION No answer given or An attempt to Poor Basic Good Very good Excellent Outstanding Exceptional
a totally irrelevant examine the examination of examination of examination of examination of examination of examination of examination of
answer. case but no the case with no the case with the case with the case with the case with a the case with a the case with a
originality; very originality; ideas limited originality; perception and high degree of high degree of high degree of
poor are not originality; ideas organised originality; perception and perception and perception and
organisation of organised; poor not properly ideas; organised originality; originality; originality;
ideas; very poor analysis of organised; basic organised thoughts and highly highly highly
analysis of arguments; very analysis with arguments; ideas; analysis organised organised organised
arguments; no limited concepts limited compare- displays thoughts and thoughts and thoughts and
details and with no relevant arguments; contrast organised ideas; analysis ideas; analysis ideas; analysis
evidences; no evidences; compare- concepts arguments; displays a displays a displays a
theories used to limited theories contrast supported by compare- strong and strong and strong and
address the to address issues concepts with details; contrast and well-organised well-organised well-organised
issue limited details distinguish differentiation of arguments; arguments; arguments;
and evidences; theories to concepts compare- compare- compare-
limited use of address issues supported by contrast and contrast and contrast and
theories to relevant details; differentiation differentiation differentiation
address issues distinguish of concepts of concepts of concepts
theories with supported by supported by supported by
evidences to relevant details relevant details relevant details
address issues. and evidences; and evidences; and evidences;
distinguish distinguish distinguish
relevant relevant relevant
theories with theories with theories with
related related related
evidences to evidences to evidences to
address issues address issues address issues.
REFERENCES: No references given Includes very Includes very Includes a Includes a list Includes a Includes a Includes a Includes a
limited list of limited list of limited list of of required comprehensive comprehensive comprehensive comprehensive
references from references references number of list of references list of list of list of
online sources mostly from mostly from references but mostly from references references references
with no Harvard online sources sources mostly from sources from all from all from all
referencing style which are not including books sources including books, sources sources sources
following proper and online including e-books, online including including including
Harvard sources with no books, online sources, books, e- books, e- books, e-
referencing proper Harvard sources, and journals and books, online books, online books, online
system referencing journals with publications with sources, sources, sources,
system lapses on on minor mistakes newspapers, newspapers, newspapers,
the use of on the use of journals and journals and journals and
Harvard Harvard publications publications publications

Pg.12 Version1
 referencing referencing using the using the using the
system system proper Harvard proper Harvard proper Harvard
referencing referencing referencing
system system system

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