CB676 Strategy Analysis & Tools, 2017-18 Main Exam PaperSECTION A.
1Read the press cutting exhibits on Carillion going into liquidation, published in The Financial Times, and answer all of the following questions:
(i)Compare the ‘shitometer’ description and its workings to the Kaplan and Norton balanced scorecard approach. Use these to explain how (non-)application of their principles potentially led to the collapse of Carillion. Draw primarily from pps.2-4and other common knowledge about Carillion’s stakeholders to support your answer.
(ii)The governance structure and funding model of Carillion are documented on pps.5-7.
Critically apply any threeof Mintzberg’s schools of the strategy process to explain the events leading to Carillion’s demise.
(iii)Use principles of organizing strategy to comment critically on Carillion’s use of ‘malus clauses’ within their annual reports as a fall-back strategy. Would any alternative mechanism have been more effective? Draw mainly from pps.8-10 and other common knowledge about Carillion to support your answer.
