SM QB Sybms

Tilak Education Society’s
S.K College of Science and Commerce, Nerul

SYBMS IIIrd Sem Question Bank
Subject: Strategic Management
UNIT I
1. What is a Business Policy? Explain its features and advantages
2. Explain The Process Of Strategic Management
3. Explain The Levels Of Strategic Management
4. What is an Strategic Business Units (SBU’s) and state its importance
5. What is a Vision statement, explain its importance
6. What is a Mission statement, explain its importance
7. Explain significance and types of objectives
8. Explain different component of strategic plans
UNIT II
1. Explain the importance of environmental analysis
2. Discuss different Growth strategies
3 Write short notes on stability strategy
4 Explain in detail Retrenchment Strategy
5 Explain in detail different types of integration strategies
6 What are different Business Level Strategies
UNIT III
1. What is BCG Matrix and how does it help organizations to understand its growth
potential
2. Explain GE 9Cell matrix as a framework for evaluating business portfolio
3. What are Porters competitive 5 Forces which affects industry
4 Write short notes on McKinsey 7-S model
5 Discuss process of Strategy Implementation.
6 Write short notes on Process Implementation
UNIT IV
1. Explain process of Strategic Evaluation & Control
2. What is synergy and its types?
3 Explain briefly concept of Change Management
4 With the help of Fish Bone diagram explain concept of porters value chain
5 Define Balanced Scorecard and briefly explain its perspectives
6 Write short notes on 1) MBO and 2) PERT/CPM
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OBJECTIVES
UNIT1
Filll in the blanks
1) Marketing strategy is formulated at Functional level of the business firm.
(a) Project (b) Procedural (c) Behavioral (d) Functional

2) Strategic management requires integrated approach.
(a) Isolated (b) integrated (c) comprehensive (d) separate
3) Objectives are more specific and concrete in nature
(a) Goals (b) Objectives (c) Plans (d) Mission statements

4) The Vision states what an organization wants to achieve in the long term.
(a) Vision (b)Mission (c) Plan (d) Goal
5) Objectives serve as standards for measuring organizational performance.
(a) Objectives (b) Goal (c) Plans (d) Strategies

Q2. True or False
1) Mission statement is dynamic in nature and many undergo changes from time to time - True
2) The term strategic management is applicable only to business organizations. -False

3) Strategy for increasing market-share is formulated at the SBU/Business level. -True
4) Objectives set should not be challenging in nature. – False
5) Generally, the chief executive plays a major role in formulating a mission statement both formally and
informally. - True
Q3. Match the following
Column A Column B
1. SBU a. Purposes behind the firm’s exixtence
2. Objectives b. Deciding the future course of action
3. Strategy intent c. Operating division of a corporation
4. Vision d. Specific aims of the firm
5. Plans e. Future outlook of the firm
1- c 2-d 3-a 4-e 5-b
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UNITII
Fill In the blanks
1. Merger and acquisition takes place in Expansion Strategy.

2. profit sharing strategy is stability strategy of business Unit.
3. In Amalgamation the companies which combines into one unit are dissolved.
4. Market Segmentation helps in selecting the target market.
5. corporate strategy are related to managing a portfolio of business
True or False.
1. The term Environmental scanning and environmental analysis are synonymous- False
2. A threat is an unfavorable condition in organization internal environment- False
3. corporate strategy relate to restructuring of business- True
4. Focus strategy is very risky to adopt - False
5. Four element of marketing mix are interrelated -True
Match the following
Group A Group B
1) Stability a)Increase in size of Business
2)Growth b)Entering in new line of business
3)Retrenchment c)profit strategy
4)Diversification d)Combination of strategy
5)Amalgamation e)Divestment
f) Formation of new company
1-c 2-a 3-e 4-b 5-f
UNITIII
Q1. Fill in the blanks
1) BCG Matrix is a technique to know the growth potential of various businesses for resource allocation.
(a) Planning model (b) BCG Matrix (c) 7s Frame work (d) Porter 5 forces
2) Question Marks are businesses with high industry growth but low market share.
(a) Stars (b) Cash cows (c) Question Marks (d) Dogs
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3) Project implementation creates required infrastructure needed for the day to day operations in an
organization.
(a) Structural (b) Procedural (c) Project (d) Behavioural
4) Behavioural covers the aspects such as leadership, corporate culture, corporate politics and use of
power and so on.
(a) Behavioural (b) Functional (c) Procedural (d) Project

5) 7s Framework has been developed to improve organizational excellence in order to achieve successful
strategy implementation.
(a) BCG Matrix7 (b) s Framework (c) GE 9 cell (d) Porter 5 forces
Q2. True or False
1) Adaptive model is characterized by reactive actions or measures required to be taken by the firm – True
2) Strategic analysis is done only at the corporate level for selecting an appropriate strategy. - False
3) Mostly new entrants have a comparatively higher sales volume and revenue and they lower the returns
for all the firms in the industry. -False
4) Supplier’s supplying standard products enjoy high bargaining power. – False

5) Functional implementation deals with the techniques, methods and practices for improving efficiency
and effectiveness in the organization. - True
Q3. Match the following
Column A Column B
1. BCG Matrix a. Strategic decision making
2. GE Nine-cell matrix b. Systematic approach
3. Models of strategy making c. Industry growth rate and relative market

share
4. Entrepreneurial model d. Industry attractiveness and business strenth
5. Planning model e. Dynamic approach
1- c 2-d 3-a 4-e 5-b
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UNITIV
Q.1. Fill in the blanks
1. Conducting variance analysis is a part of strategy control.
a) formulation b) making c) control
2. Change is inevitable.
a) avoidable b) inactive c) inevitable
3. Budgetary control is a controlling device.
a) controlling b) discipline c) management
4. Standards can be either quantitative or qualitative.

a) numerical b) qualitative c) quota
5. Social work-benefit analysis benefits the society.
a) employers b) government c) society
Q.2. True or False

1. Corrective measures is a step in a evaluation and control. True
2. ROI is a measure of financial performance. True
3. Social goal setting directed towards uplifting poor people. True

4. Operational synergy streamlines management skills. False
5. Change has no beginning and no end. True
Q.3. Match the following
Group A Group B
1. Evaluation and control a) Controlling tool
2. Variance analysis b)Teamwork
3. Premise control c)Michael Porter
4. Generic strategies d)Standards of performance
5. Synergy e)Validity criteria
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1-d 2-a 3-e 4-c 5-b
QUESTIONS
Unit- 1
1. What is a Business Policy? Explain its features and advantages
The word policy is derived from Greek word Politia meaning government or policy in
Business,
Policy is by top management they put down board guideline and skeleton within which the
line manager decide their course of action.
Business Policy defines the scope or spheres within which decisions can be taken by the
subordinates in an organization.
Features of Business Policy

An effective business policy must have following features-
1. Specific- Policy should be specific/definite. If it is uncertain, then the implementation
will become difficult.
2. Clear- Policy must be unambiguous. It should avoid use of jargons and connotations.
There should be no misunderstandings in following the policy.
3. Reliable/Uniform- Policy must be uniform enough so that it can be efficiently followed
by the subordinates.
4. Appropriate- Policy should be appropriate to the present organizational goal.
5. Simple- A policy should be simple and easily understood by all in the organization.
6. Inclusive/Comprehensive- In order to have a wide scope, a policy must be
comprehensive.
7. Flexible- Policy should be flexible in operation/application. This does not imply that a
policy should be altered always, but it should be wide in scope so as to ensure that the
line managers use them in repetitive/routine scenarios.
8. Stable- Policy should be stable else it will lead to indecisiveness and uncertainty in
minds of those who look into it for guidance.
Importance of Business Policy
1. Clear-cut policies help the organization to have consistency in execution process and
also performance of the executives.
2. Policies deal with the nature and process of choice about the future of the business
activities. These policies are to be handled by the top level and middle level executives.
3. Policies are not a set of rigid of clear-cut rules and regulations instead they are living
precepts guiding an enterprise to continue within the set pattern of behavior.
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4. They are overall guides determining the direction of managerial action subject to policy
restrictions.
5. Business Policies govern the planning, decision making, coordination, direction, control
and other managerial functions
2 Explain The Process Of Strategic Management
 Process of strategic management:
1- Environmental Analysis:
 In this stage company is going to collect, scrutinize the information needed by
company.
 Here the company is looking for its external factors, as well as internal factors &
company is going to do SWOT about themselves.
 From here only the company is get to know about their capabilities, weaknesses,
opportunities & threat.
2-Strategy Formulation
 Strategy formulation is the process of deciding best course of action for accomplishing
organizational objectives and hence achieving organizational purpose.
 After conducting environment scanning, managers formulate corporate, business and
functional strategies.
 Here the company form a strategy according to goals & objectives of an organization.
 At this stage the company is first makes a plans then accordingly they act & take
decision.
 Here the company is done SWOT about resources available.
 At this stage SBU’S are formed & company choose a best course of action.
3-. Strategy Implementation:
 Implies making the strategy work as intended or putting the organization’s chosen
strategy into action.
 Strategy implementation includes designing the organization’s structure, distributing
resources, developing decision making process,
 Here the company is actually going to implement the strategies as per available
resources & organizational structure.
 Here the company is going to set a budget which should be economical for making
maximum profit.
 Company is going to implement the strategies as per proper steps & process .
4- Strategy Evaluation & control :
 Strategy evaluation is the final step of strategy management process.
 The key strategy evaluation activities are: appraising internal and external factors that
are the root of present strategies, measuring performance, and
taking remedial / corrective actions.
 Evaluation makes sure that the organizational strategy as well as it’s implementation
meets the organizational objectives.
 There is a proper process of evaluation that is as follow ;
1. Fixing the benchmark of performance.
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2. Measuring the actual performance with desired performance.

3. Analyse deviations / Varience .
4. take corrective actions,
These components are steps that are carried, in chronological order, when creating a new
strategic management plan. Present businesses that have already created a strategic
management plan will revert to these steps as per the situation’s requirement, so as to make
essential changes.
3 Explain The Levels Of Strategic Management

 Strategy operates at different levels because there are single product companies and multi
product companies.
 Bata India Limited is a footwear company whereas HUL is a multi product company. HUL
produces consumer goods like soap, shampoo, detergent, toothpaste, tea, coffee etc.
 The multi product companies have different businesses organized as divisions. Such
business units are called Strategic Business Units(SBUs).
The following are the levels of strategy.
1. Corporate level strategy:
 Corporate level strategy is long term strategy.
 It covers the entire organization. It deals with the basic questions such as what is
purpose of business? How to get into business? What is the nature of business?
 This strategy occupies the highest level of strategic decision making.
 It concentrates on acquisition and allocation of resources and coordination of
strategies to obtain optimum results.
 Forming corporate level strategy is the responsibility of top management.
 Corporate level strategy states the mission and character of business.
 It is formed by board of directors, CEO, etc. this strategy is value oriented,
conceptual and less accurate.
2. Business level strategy:
 Business level strategy relates to decisions concerning product mix, market
segments and achieving competitive advantage.
 For this reason, this strategy is sometimes called competitive strategy. Business
level strategy decides the strategy to succeed in the business.
 This strategy enables the organization to compete effectively and contribute to
overall prosperity.
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 This strategy has to operate within the existing framework of main strategy.
 This strategy deals with different matters related to the successful operation of
business.
 This strategy must remain truthful to the corporate philosophy.
3. Functional level strategy:
 Functional level strategy deals with a single functional operation.
 This strategy is department oriented.
 Hence functional level strategy covers areas like marketing, finance, operations
auditing, human resource, and R&D.
 This strategy is formulated by the heads of functional departments.
 Because of this reason, functional strategy covers narrow areas of activity.
According to Hofer an Schendel “Corporate and business level strategies are
concerned with doing the right thing ; functional strategies stress on doing thing
right.”
4 What is an Strategic Business Units (SBU’s) and state its importance

 A strategic business unit, popularly known as SBU, is a fully- functional unit of a
business that has its own vision and direction.
 Typically, a strategic business unit operates as a separate unit, but it is also an
important part of the company.
 It reports to the headquarters about its operational status.
 For example, LG as a company makes consumer durables, It makes refrigerators,
washing machines, air-conditioners as well as televisions
Importance of SBU
1. Responsibility – One of the first role of strategic business units is to assign
responsibility and more importantly outsource responsibility to others. With this, the
top management has an overview of work being done in each individual unit and they
do not have to get involved in day to day activities for these strategic business units.
2. Accountability – When handling multiple brands or products, it is easier if there are

separate business units which are accountable for the success or failure of the business
or product. By making these business units accountable, the company can directly take
a call when hard decisions are to be taken.
3. Accountancy – Profit and loss and balance sheets will look more prettier and more
manageable if the statements are prepared separately for separate strategic business
units. This makes the accountancy more transparent and at the same time, when
companies have to make investment decision than this accountancy will come in use
for the company.
4. Strategy – Companies like Nestle have 4 different strategic units. One SBU like
Maggi deals in Food products, another deals in Dairy products like Nestle milkmaid,
the third SBU deals in Chocolate products like Kitkat so on and so forth. Thus, in the
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above example, it is very simple to change strategy for each business unit because the
strategy for each is independent of the other.
5. Independence – The managers of the strategic business units get more independence
to manage their own unit which gives them the opportunity to be more creative and
innovative and empowers them for making decisions. The best thing that can happen
for SBU’s are fast decision making which is possible only when these SBU’s are given
independence to work by themselves.
6. Funds allocation – The last but not the least advantage of strategic business units are
that funds allocation becomes simpler for the parent company. Depending on the
performance of the SBU, funds allocation can be done on priority.
5 What is a Vision statement, explain its importance
 A vision statement is used to describe the future state of the organization, i.e., what
the organization hopes to become in the future.
 It is, therefore, a long-term goal provides direction for the organization.
 It also communicates the purpose of the organization to the employees and other
stakeholders and provides them with the inspiration to achieve that purpose.
Importance of Vision statement is:

1. Written: A company’s vision may be written on the hearts of its founders and leaders,
but to be sure, put it on paper (and on your corporate Website).
2. To vision statement be clear and exact and to reduce the chance of being
misunderstood, it is good to write the vision statement for all to see
3. Widely known and understood: Once a vision is created, it must be disseminated, so
it becomes the shared vision of everyone in the organization. It is not always easy to
spread a vision through the business, so the key part of creating shared vision is in
articulating it and communicating it in an enduring fashion. An example of well-
articulated vision is Wal-Mart’s “Low prices, every day.” This vision statement is
clear, concise, and easy to remember.
4. Motivating: A strong vision statement paints a compelling scenario. It requires the
ability to expand one’s sense of possibilities without drifting into the ethereal, and then
to focus on what new initiatives can lead to this stretching yet realistic image of the
future. Vision statements are motivational if they are based on shared values and if the
actions of the company authenticate the truth of the vision.
5. Achievable: A vision statement cannot be wildly impractical. Even though vision

directs us to the future, it is experienced in the present. Powerful visions are never an
escape from reality. A motivating and effective vision will connect today’s reality to a
view of a better future. It should be achievable in the near future—within an
employees’ working lifetime.
6. Drives Decisions: Do the people in your company use your vision as a guide for
decision making–from strategic decisions to operational decisions? If not, it may need
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some work. A good vision statement informs and drives critical decisions. If a
company and its leaders are instead making decisions only for immediate benefit, they
may have lost sight of the vision. Every critical decision made by an organization
should propel it, first, toward its vision.
6 What is a Mission statement, explain its importance

 A mission statement describes the current state of an organization and its primary goals
or objectives.
 It provides detailed information about what the organization does, how it does it, and
who it does it for.
 Unlike the vision statement, it is short-term in nature.
 However, it is related to the vision statement in that it outlines the primary goals that
will help to achieve the future the organization desires (i.e, the vision).
Importance of Mission statement is:

1. The mission statement defines the purpose of the organization and instil a sense of
belonging and identity to the employees.
2. This motivates them to work harder in order to achieve success.
3. The mission statement acts as a “North Star”, where it provides the direction that is
to be followed by the organization while the vision statement provides the goal (or the
destination) to be reached by following this direction.
4. The mission statement helps to properly align the resources of an organization
towards achieving a successful future.
5. The mission statement provides the organization with a clear and effective guide for
making decisions, while the vision statement ensures that all the decision made are
properly aligned with what the organization hopes to achieve.
6. The mission statement provides a focal point that helps to align everyone with the
organization, thus ensuring that everyone is working towards a single purpose.
7. This helps to increase efficiency and productivity in the organization.
7 Explain significance and types of objectives
Significance of setting objectives
Commitment:
 Towards Environment
 Social responsibility towards employees, customers, suppliers, distributors,
government, society
Vision & Mission
 Objectives help in achieving vision & mission
Strategic Planning & Decision Making
 Provide basis/ directions for strategic planning
 Highlight weaker areas where strategic decisions are required
Performance Appraisal
 Provide standards for appraising performance of individual & organization
 Corrective actions if performance not up to standard
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Co-ordination
 Efficient & Effective functioning, better coordination among activities of departments
 Organizational objectives Departmental/ sectional objectives
Motivation of Employees
 Given target in period of time
 Achieving targets accompanied by incentives
 Utilization of Resources
 Reduce Wastage & optimum utilization of physical, financial & human
Types of organizational objectives
8 Explain different component of strategic plans

1. Procedure or steps undertaken to prepare a plan
a. To classify the task/jobs
i. Understand and classify task/ jobs for implementing strategy
b. To determine the objectives
i. Objectives must be clear & precise
ii. Objectives gives direction to planning
iii. Objectives in terms of profits, sales, production etc.
c. To collect corporate information or data
i. Data from internal & external sources
ii. Collected information is analyzed & interpreted to draw conclusions
d. To determine alternative plans
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i. Different course of action for achieving results

ii. Best alternative plan is implemented
UNIT- 2
1 Explain the importance of environmental analysis
 Environmental analysis is a process by which organizations keep track of relevant
environment in order to identify opportunities and threats influencing their business.
 The organizations single out the most important factors of present in the environment
which will help to achieve its objectives.
 Environment analysis a part of SWOT analysis.
 Environmental analysis is also called environmental scanning.
 It should be linked to current planning and operations Environmental analysis requires
information inputs which can be obtained from:
i. Forecasting
ii. Management information system
iii. Written information
iv. Audio visual reports
v. Newspapers
vi. Sales personnel
Importance:
1. Continuous process: Environmental analysis is an ongoing process. It enables the
organization to develop new trends. These rends can be evaluated in the light of
organizational requirements. Changes in environment take place but the analysis
process is continuous.
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2. Exploratory process: It is an exploratory process because it not only considers the

present situation but also takes in to account the different dimensions of future. It is
time tested to work out alternative courses of action.
3. Identifies SWOT: Environmental analysis also helps us to identify the SWOT of the
company. It helps us to identify the strength, weakness, opportunities and threats.
These 4 factors help the business to survive and gain profit through its activities. It
helps the company to grab opportunities and get alert of threats.
4. Social acceptance: environmental analysis guides business to become consumer
oriented. In order to achieve fast growth, the business must appeal the social groups.
Social acceptance is the best situation for a business to emerge victorious by defeating
competitors.
5. Adopt monitoring: Environmental analysis enables the organization to monitor
prevailing trends in the market. The main purpose of monitoring is to organize data to
see clearly whether certain trends are developing. Monitoring helps the raw data to
exact data. Monitoring describes environmental trends and identifies areas for future
analysis.
6. Adopt forecasting: One of the major contributions of environmental analysis is that it
makes use of forecasting. Forecasting is an exercise to estimate the events of the future
based on the analysis of past and present situation. With the help of forecasting the
business is better prepared to present future projections and alternative plans.
2 Discuss different Growth strategies
Growth Strategy
 A growth strategy could be implemented by expanding operations both globally and
locally; this is a growth strategy based on internal factors which can be achieved through
internal economies of scale.
 Aside from the illustration of internal growth strategies above, an organization can also
grow externally through mergers, acquisitions and strategic alliances.
The two basic growth strategies are concentration strategies and diversification strategies.
1. Concentration strategy: This is mostly utilized for company’s producing product lines
with real growth potentials. The company concentrates more resources on the product
line to increase its participation in the value chain of the product. The two main types of
concentration strategies are vertical growth strategy and horizontal growth strategy.
 Vertical growth strategy:

 As mentioned above, by utilizing this strategy, the company participates in the value
chain of the product by either taking up the job of the supplier or distributor.
 If the company assumes the function or the role previously taken up by a supplier, we
call it backward integration, while it is called forward integration if a company
assumes the function previously provided by a distributor.
 Horizontal growth strategy:
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 Horizontal growth is achieved by expanding operations into other geographical locations

or by expanding the range of products or services offered in the existing market.
 Horizontal growth results into horizontal integration which can be defined as the degree
in which a company increases production of goods or services at the same point on an
industry’s value chain.
2. Diversification Strategy:
A company is diversified when it is in two or more lines of business operating in distinct
and diverse market environments.
Two basic types of diversification strategies are concentric and conglomerate.
 Concentric Diversification:
 This is also called related diversification. It involves the diversification of a company
into a related industry.
 This strategy is particularly useful to companies in leadership position as the firm
attempts to secure strategic fit in a new industry where the firm’s product knowledge,
manufacturing capability and marketing skills it used so effectively in the origina l
industry can be used just as well in the new industry it is diversifying into.
 Conglomerate Diversification:
 This is also called unrelated diversification; it involves the diversification of a company
into an industry unrelated to its current industry.
 This type of diversification strategy is often utilized by companies in saturated industr ies
believed to be unattractive, and without the knowledge or skill it could transfer to related
products or services in other industries.
3 Write short notes on stability strategy
Stability Strategy:
 Stability strategies are mostly utilized by successful organizations operating in a
reasonably predictable environment.
 It involves maintaining the current strategy that brought it success with little or no
change. There are three basic types of stability strategies, they are:
No change Strategy:
 When a company adopts this strategy, it indicates that the company is very much happy
with the current operations, and would like to continue with the present strategy.
 This strategy is utilized by companies who are “comfortable” with their competitive
position in its industry, and sees little or no growth opportunities within the said industry.
Profit Strategy:
 In using this strategy, the company tries to sustain its profitability through artific ia l
means which may include aggressive cost cutting and raising sales prices, selling of
investments or assets, and removing non-core businesses.
The profit strategy is useful in two instances:
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 To help a company through tough times or temporary difficulty; and

 To artificially boost the value of a company in the case of an Initial Public Offering
(IPO)
Pause/ Proceed with caution Strategy:
 This strategy is used to test the waters before continuing with a full- fledged strategy.
 It could be an intermediate strategy before proceeding with a growth strategy or
retrenchment strategy.
 The pause or proceed with caution strategy is seen as a temporary strategy to be used
until the environment becomes more hospitable or consolidate resources after prolonged
rapid growth.
4 Explain in detail Retrenchment Strategy

 Retrenchment is a short-run renewal strategy designed to overcome organizational
weaknesses that are contributing to deteriorating performance.
 It is meant to replenish and revitalize the organizational resources and capabilities so
that the organization can regain its competitiveness. Retrenchment may be thought as a
minor surgery to correct a problem.
 Retrenchment means reducing the scope of its activities, due to lack of resource
availability.
 Retrenchment is because of instable internal as well as external factors.
 Eg: Telegram
Nokia
Fountain pen
Pager
Turnaround retrenchment
Turnaround strategy is adopted by companies when there is;
 Continuous losses
 Poor management
 Wrong corporate strategies
 Negative cash flow
 Decline in market share
 In this stage the company is going to adjust their internal factors, such as they can
optimum use of resources through they can minimize the losses.
 Turnaround strategy means backing out, withdrawing or retreating from a decision
wrongly taken earlier in order to reverse the process of decline.
1. Liquidation :
 The Liquidation Strategy is the most unpleasant strategy adopted by the organization
that includes selling off its assets and the final closure or winding up of the business
operations.
 It is the most crucial and the last resort to retrenchment since it involves serious
consequences such as a sense of failure, loss of future opportunities, spoiled market
image, loss of employment for employees, etc.
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 Company is going to adopt this strategy when there is;

 Failure of corporate Strategy.
 Continuous Losses.
 Outdated products / process.
 Business becoming unprofitable.
 Poor management.
 Lack of co-operation between departments.
 Here company wholly closing down the firm & sells out there all the assets.
 In this kind of retrenchment, the company lost their identities.
3. Divestment Retrenchment:
 Divestment strategy involves the sale or liquidation of a portion of business, or a major
division, or SBU.
 Divestment is usually a part of rehabilitation or restructuring plans & is adopted when
turnaround is unsuccessful.
 The company adopts divestment when
 Continuous negative cash flow from a particular division.
 Company is unable to meet the competition.
 Huge divisional losses.
 Difficulty in integrating the business within the company.
 Better alternatives of investment.
 Lack of integration between the departments or divisions.
 Lack of technological upgradation due to non-affordability.
 Market share is too small.
5 Explain in detail different types of integration strategies

 Integration strategy involves expanding externally by combining with other firms.
Combination involves association and integration among different firms and is
essentially driven by need for survival and also for growth by building synergies.
 Combination of firms may take the merger or consolidation route. Merger implies a
combination of two or more concerns into one final entity.
 Firms use integration to (1) increase market share, (2) avoid the costs of developing
new products internally and bringing them to the market, (4) reduce the risk of entering
new business, (5) speed up the process of entering the market, (6) become more
diversified and (7) quite possibly to reduce the intensity of competition by taking over
the competitor’s business.
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Vertical integration is a strategy used by a company to gain control over its suppliers or
distributors in order to increase the firm’s power in the marketplace, reduce transaction costs
and secure supplies or distribution channels.
Forward Integration: If the company acquires control over distributors, then it is

downstream or forward integration.
Backward Integration: When the company acquires control over its supplier, then it is
upstream or backward integration
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Horizontal Integration
 Horizontal integration, as we have seen, is a company’s acquisition of a similar or a
competitive business—it may acquire, but it may also merge with or takeover, another
company to strengthen itself—to grow in size or capacity, to achieve economies of
scale or product uniqueness, to reduce competition and risks, to increase markets, or
to enter new markets.
 Integration of Exxon and Mobil, oil companies to increase market dominance is an
example of Horizontal Integration.
Advantages of horizontal integration
Economies of scale: The bigger, horizontally integrated company can achieve a higher
production than the companies merged, at a lower cost.
Increased differentiation: The company will be able to offer more product features to
customers.
Increased market power: The new company, because of the merger of companies, will become
a bigger customer for its old suppliers. It will command a bigger end-product market and will
have greater power over distributors.
Ability to enter new markets: If the merger is with an organization abroad, the new company
will have an additional foreign market.
6 What are different Business Level Strategies

 Business level strategies detail actions taken to provide value to customers and gain a
competitive advantage by exploiting core competencies in specific, individual product
or service markets.
 Business- level strategy is concerned with a firm's position in an industry, relative to
competitors and to the five forces of competition.
Cost Leadership – Organizations compete for a wide customer based on price. Price is based
on internal efficiency in order to have a margin that will sustain above average returns and
cost to the customer so that customers will purchase your product/service. Works well when
product/service is standardized, can have generic goods that are acceptable to many customers,
and can offer the lowest price. Continuous efforts to lower costs relative to competitors is
necessary in order to successfully be a cost leader. This can include:
 Building state of art efficient facilities (may make it costly for competition to imitate)
 Maintain tight control over production and overhead costs
 Minimize cost of sales, R&D, and service.
How to Obtain a Cost Advantage?
 Determine and Control Cost

 Reconfigure the Value Chain as Needed Risks
 Technology
Page 19 of 36
 Imitation
 Tunnel Vision
2) Differentiation - Value is provided to customers through unique features and
characteristics of an organization's products rather than by the lowest price. This is done
through high quality, features, high customer service, rapid product innovation, advanced
technological features, image management, etc. (Some companies that follow this strategy:
Rolex, Intel, Ralph Lauren)
Create Value by:

 Lowering Buyers' Costs – Higher quality means less breakdowns, quicker response to
problems.
 Raising Buyers' Performance – Buyer may improve performance, have higher level of
enjoyment.
 Sustainability – Creating barriers by perceptions of uniqueness and reputation, creating
high switching costs through differentiation and uniqueness.
Risks of Using a Differentiation Strategy

 Uniqueness
 Imitation
 Loss of Value
3) Focused Niche market - Organizations not only compete based on differientation, but also
select a small segment of the market to provide goods and services.
Focused Strategies - Strategies that seek to serve the needs of a particular customer segment
Companies that use focused strategies may be able serve the smaller segment (e.g. business
travelers) better than competitors who have a wider base of customers. This is especially true
when special needs make it difficult for industry-wide competitors to serve the needs of this
group of customers. By serving a segment that was previously poorly segmented an
organization has unique capability to serve niche.
Risks of Using Focused Strategies:
 Maybe out focused by competitors (even smaller segment)
 Segment may become of interest to broad market firm(s)
UNIT3
1. What is BCG Matrix and how does it help organizations to understand its growth
potential
 BCG is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA.
 It is the most renowned corporate portfolio analysis tool.
 It provides a graphic representation for an organization to examine different businesses
in its portfolio on the basis of their related market share and industry growth rates.
 It is a two dimensional analysis on management of SBU’s (Strategic Business Units).
 According to this matrix, business could be classified as high or low according to their
industry growth rate and relative market share.
 Relative Market Share = SBU Sales this year leading competitors sales this year.
Market Growth Rate = Industry sales this year - Industry Sales last year.
Page 20 of 36
 BCG matrix has four cells, with the horizontal axis representing relative market share
and the vertical axis denoting market growth rate.
 The mid-point of relative market share is set at 1.0. if all the SBU’s are in same
industry, the average growth rate of the industry is used.
 While, if all the SBU’s are located in different industries, then the mid-point is set at
the growth rate for the economy.
 Resources are allocated to the business units according to their situation on the grid.
 The four cells of this matrix have been called as stars, cash cows, question marks and
dogs. Each of these cells represents a particular type of business.
10 x 1x 0.1 x
Figure: BCG Matrix

1. Stars-
 Stars represent business units having large market share in a fast growing industry.
 They may generate cash but because of fast growing market, stars require huge
investments to maintain their lead.
 Net cash flow is usually modest. SBU’s located in this cell are attractive as they are
located in a robust industry and these business units are highly competitive in the
industry.
 If successful, a star will become a cash cow when the industry matures.
2. Cash Cows-
 Cash Cows represents business units having a large market share in a mature, slow
growing industry.
 Cash cows require little investment and generate cash that can be utilized for
investment in other business units.
 These SBU’s are the corporation’s key source of cash, and are specifically the core
business. They are the base of an organization.
 These businesses usually follow stability strategies.
 When cash cows lose their appeal and move towards deterioration, then a retrenchment
policy may be pursued.
Page 21 of 36
3. Question Marks-
 Question marks represent business units having low relative market share and located
in a high growth industry.
 They require huge amount of cash to maintain or gain market share.
 They require attention to determine if the venture can be viable.
 Question marks are generally new goods and services which have a good commercial
prospective.
 There is no specific strategy which can be adopted.
 If the firm thinks it has dominant market share, then it can adopt expansion strategy,
else retrenchment strategy can be adopted.
 Most businesses start as question marks as the company tries to enter a high growth
market in which there is already a market-share.
 If ignored, then question marks may become dogs, while if huge investment is made,
then they have potential of becoming stars.
4. Dogs-
 Dogs represent businesses having weak market shares in low-growth markets.
 They neither generate cash nor require huge amount of cash.
 Due to low market share, these business units face cost disadvantages.
 Generally, retrenchment strategies are adopted because these firms can gain market
share only at the expense of competitor’s/rival firms.
 These business firms have weak market share because of high costs, poor quality,
ineffective marketing, etc.
 Unless a dog has some other strategic aim, it should be liquidated if there is fewer
prospects for it to gain market share.
 Number of dogs should be avoided and minimized in an organization.
1.
2. Explain GE 9Cell matrix as a framework for evaluating business portfolio
Meaning
 GE nine-box matrix is a strategy tool that offers a systematic approach for the multi
business enterprises to prioritize their investments among the various business units.
 It is a framework that evaluates business portfolio and provides further strategic
implications.
Page 22 of 36
 Each business is appraised in terms of two major dimensions – Market Attractiveness

and Business Strength.
 If one of these factors is missing, then the business will not produce desired results.
 Neither a strong company operating in an unattractive market, nor a weak company
operating in an attractive market will do very well.2
 The vertical axis denotes industry attractiveness, which is a weighted composite
rating based on eight different factors. They are:
1. Market size and growth rate
2. Industry profit margins
3. Intensity of Competition
4. Seasonality
5. Product Life Cycle Changes
6. Economies of scale
7. Technology
8. Social, Environmental, Legal and Human Impacts
 What does the horizontal axis represent?
 It indicates business strength or in other words competitive position, which is again a
weighted composite rating based on seven factors as listed below:
1. Relative market share
2. Profit margins
3. Ability to compete on price and quality
4. Knowledge of customer and market
5. Competitive strength and weakness
6. Technological capability
7. Caliber of management
 The two composite values for industry attractiveness and competitive position are
plotted for each strategic business unit (SBU) in a COMPANY’S PORTFOLIO.
Page 23 of 36
 The PIE chart (circles) denotes the proportional size of the industry and the dark
segments denote the company’s respective market share.
 The nine cells of the GE matrix are grouped on the basis of low to high industry
attractiveness, and weak to strong business strength.
 Three zones of three cells each are made, indicating different combinations represented
by green, yellow and red colors.
 So it is also called ‘Stoplight Strategy Matrix’, similar to the traffic signal.
 The green zone suggests you to ‘go ahead’, to grow and build, pushing you through
expansion strategies.
 Businesses in the green zone attract major investment.
 Yellow cautions you to ‘wait and see’ indicating hold and maintain type of strategies
aimed at stability.
 Red indicates that you have to adopt turnover strategies of divestment and liquidation
or rebuilding approach.
 This matrix offers some advantages over BCG matrix in that, it offers intermediate
classification of medium and average ratings.
 It also integrates a larger variety of strategic variables like the market share and
industry size.
Advantages
 Helps to prioritize the limited resources in order to achieve the best returns.
 The performance of products or business units becomes evident.
 It’s more sophisticated business portfolio framework than the BCG matrix.
 Determines the strategic steps the company needs to adopt to improve the performance
of its business portfolio.
Disadvantages
 Needs a consultant or an expert to determine industry’s attractiveness and business unit
strength as accurately as possible.
 It is expensive to conduct.
 It doesn’t take into account the harmony that could exist between two or more business
units.
3. What are Porters competitive 5 Forces which affects industry

Five forces model was created by M. Porter in 1979 to understand how five key competitive
forces are affecting an industry. The five forces identified are:
Page 24 of 36
These forces determine an industry structure and the level of competition in that industry.
The stronger competitive forces in the industry are the less profitable it is.
An industry with low barriers to enter, having few buyers and suppliers but many substitute
products and competitors will be seen as very competitive and thus, not so attractive due to its
low profitability.
Threat of new entrants. This force determines how easy (or not) it is to enter a particular
industry. If an industry is profitable and there are few barriers to enter, rivalry soon intensifies.
When more organizations compete for the same market share, profits start to fall. It is essential
for existing organizations to create high barriers to enter to deter new entrants. Threat of new
entrants is high when:
 Low amount of capital is required to enter a market;
 Existing companies can do little to retaliate;
 Existing firms do not possess patents, trademarks or do not have established brand
reputation;
 There is no government regulation;
 Customer switching costs are low (it doesn’t cost a lot of money for a firm to switch to
other industries);
 There is low customer loyalty;
 Products are nearly identical;
 Economies of scale can be easily achieved.
Bargaining power of suppliers. Strong bargaining power allows suppliers to sell higher
priced or low quality raw materials to their buyers. This directly affects the buying firms’
profits because it has to pay more for materials. Suppliers have strong bargaining power when:
 There are few suppliers but many buyers;
 Suppliers are large and threaten to forward integrate;
 Few substitute raw materials exist;
 Suppliers hold scarce resources;
 Cost of switching raw materials is especially high.
Page 25 of 36
Bargaining power of buyers. Buyers have the power to demand lower price or higher
product quality from industry producers when their bargaining power is strong. Lower price
means lower revenues for the producer, while higher quality products usually raise production
costs. Both scenarios result in lower profits for producers. Buyers exert strong bargaining
power when:
 Buying in large quantities or control many access points to the final customer;
 Only few buyers exist;
 Switching costs to other supplier are low;
 They threaten to backward integrate;
 There are many substitutes;
 Buyers are price sensitive.
Threat of substitutes. This force is especially threatening when buyers can easily find
substitute products with attractive prices or better quality and when buyers can switch from
one product or service to another with little cost. For example, to switch from coffee to tea
doesn’t cost anything, unlike switching from car to bicycle.
Rivalry among existing competitors. This force is the major determinant on how competitive
and profitable an industry is. In competitive industry, firms have to compete aggressively for a
market share, which results in low profits. Rivalry among competitors is intense when:
 There are many competitors;
 Exit barriers are high;
 Industry of growth is slow or negative;
 Products are not differentiated and can be easily substituted;
 Competitors are of equal size;
 Low customer loyalty.
Although, Porter originally introduced five forces affecting an industry, scholars have
suggested including the sixth force: complements. Complements increase the demand of the
primary product with which they are used, thus, increasing firm’s and industry’s profit
potential. For example, iTunes was created to complement iPod and added value for both
products. As a result, both iTunes and iPod sales increased, increasing Apple’s profits.
4. Write short notes on McKinsey 7-S model

The Seven Elements
The McKinsey 7-S model involves seven interdependent factors which are categorized as
either "hard" or "soft" elements:
Hard Elements Soft Elements
Strategy Shared Values

Structure Skills
Page 26 of 36
Systems Style
Staff
"Hard" elements are easier to define or identify and management can directly influence them:
These are strategy statements; organization charts and reporting lines; and formal processes
and IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and
more influenced by culture. However, these soft elements are as important as the hard
elements if the organization is going to be successful.
The way the model the interdependency of the elements and indicates how a change in one
affects all the others.
 Strategy: the plan devised to maintain and build competitive advantage over the
competition.
 Structure: the way the organization is structured and who reports to whom.
 Systems: the daily activities and procedures that staff members engage in to get the job
done.
 Shared Values: called "superordinate goals" when the model was first developed, these
are the core values of the company that are evidenced in the corporate culture and the
general work ethic.
 Style: the style of leadership adopted.
 Staff: the employees and their general capabilities.
 Skills: the actual skills and competencies of the employees working for the company
5 Discuss process of Strategy Implementation.
Page 27 of 36
Definition: Strategy Implementation refers to the execution of the plans and strategies, so
as to accomplish the long-term goals of the organization. It converts the opted strategy into
the moves and actions of the organisation to achieve the objectives.
Simply put, strategy implementation is the technique through which the firm develops,
utilises and integrates its structure, culture, resources, people and control system to follow
the strategies to have the edge over other competitors in the market.
Strategy Implementation is the fourth stage of the Strategic Management process, the other
three being a determination of strategic mission, vision and objectives, environmental and
organisational analysis, and formulating the strategy. It is followed by Strategic Evaluatio n
and Control.
Process of Strategy Implementation
 Building an organization, that possess the capability to put the strategies into action
successfully.
 Supplying resources, in sufficient quantity, to strategy-essential activities.
 Developing policies which encourage strategy.
 Such policies and programs are employed which helps in continuous improvement.
 Combining the reward structure, for achieving the results.
 Using strategic leadership.
Page 28 of 36
The process of strategy implementation has an important role to play in the company’s
success. The process takes places after environmental scanning, SWOT analyses and
ascertaining the strategic issues.
6 Write short notes on Process Implementation

Procedural Issues in Strategy Implementation Following the procedures laid down for
implementation constitutes an important component of strategy implementation in the Indian
context:
•Licensing Procedure
•Foreign Collaboration Procedure
•FERA Requirements
•MRTP Requirements
•Capital Issue Control Requirements
•Import and Export Requirements
Licensing Procedure : •Registration & Licensing of industrial undertaking rules. a License is
necessary for establishing • new unit, •manufacturing a ‘new article’, •substantial expansion
of capacity in existing business, • changing location. 16
Foreign Collaboration Procedure: •Priority areas, •Export oriented or high technology
industries, •Permitting existing foreign investment in non-priority areas up to 40% of the
equity holding. This limit has been raised to 51% in 34 high-priority industries. •
MRTP Requirements: •To prevent monopolistic & restrictive trade practices, • The
concentration of economic power. •The mrtp act requires that any substantial expansion
which increases the assets or productive capacity or supply for distribution not less than 25%,
requires the approval of the central govt.
Capital Issue Control Requirements: Capital Issue Control Requirements The issue of
capital by companies is regulated through the Capital Issues Control Act, 1956 & the
Securities Contracts Regulation Act, 1956 for the purpose of ensuring that investments are
made in priority areas, & for the promotion of capital markets & protection of shareholders.
For the purpose of strategy implementation, these acts are relevant so far as the provision of
financial resources is concerned. Apart from this, these acts also affect mergers &
amalgamations as they regulate the capital reorganization plans for mergers.
Import & Export Requirements: •The Import Trade Control Policy Book (popularly called
the Red Book) is an annual govt. publication which outlines the import licensing policy for
individual industries & for different categories of importers (established, actual users &
registered). •Through the Import & Export Control Order, the govt. has delegated the power
to issue licenses & to administer the act to the Chief Controller of Imports & Exports
UNIT4
1. Explain process of Strategic Evaluation & Control
Meaning: Strategic control is the process used by organizations to control the formation and
execution of strategic plans; it is a specialized form of management control, and differs from
other forms of management control (in particular from operational control) in respects of its
need to handle uncertainty and ambiguity at various points in the control process.
Page 29 of 36
Strategic Evaluation & Control

Premise control:
 A company may base its strategy on important assumptions related to environmental
factors (e.g., government policies), industrial factors (e.g. nature of competition), and
organizational factors (e.g. breakthrough in R&D).
 Premise control continually verifies whether such assumptions are right or wrong. If
they are not valid corrective action is initiated and strategy is made right.
 The responsibility for premise control can be assigned to the corporate planning staff
who can identify for assumptions and keep a regular check on their validity.
Implementation control:
 Implementation control can be done using milestone review.
 This is similar to the identification-albeit on a smaller scale- of events and activities in
PERT/CPM networks.
 After the identification of milestones, a comprehensive review of implementation is
made to reassess its continued relevance to the achievement of objectives.
Strategic Surveillance:
 Strategic surveillance can be done through a broad based, general monitoring on the
basis of selected information sources to uncover events that are likely to affect the
strategy of an organization
Special Alert Control:
 This is based on a trigger mechanism for rapid response and immediate reassessment
of strategy in the light of sudden and unexpected events.
 Special alert control can be exercised through the formulation of contingency strategies
and assigning the responsibility of handling unforeseen events to crisis management
teams.
 Examples of such events can be the sudden fall of a government at the central or state
level, instant change in a competitor’s posture, an unfortunate industrial disaster, or a
natural catastrophe.
Strategic momentum control:
 These types of evaluation techniques are aimed at finding out what needs to be done in
order to allow the organization to maintain its existing strategic momentum.
2. What is synergy and its types?
Meaning:
Synergy word is derived from Greek word SYNERGOS that means working together.
Synergy can take place both internally i.e. by co-ordination units within the firm and
Externally ie by combining with other firm. i.e. by adopting strategies of merger or
acquisition, amalgamation joint venture. By pooling the resources, strength, capabilities the
two firm able to achieve high profitability. Synergy is the concept that the value and
performance of two companies’ combined will be greater than the sum of the separate
individual parts. Synergy is a term that is most commonly used in the context
of mergers and acquisitions.
Types of Synergy
1) Cost Synergy
Page 30 of 36
 Cost synergies refer to the opportunity, as a result of an acquisition, for the combined
company to reduce costs more than the two companies would be able to do
individually.
2)Revenue Synergies
 A revenue synergy is when, as a result of an acquisition, the combined company is able
to generate more sales than the two companies would be able to separately.
3)Financial Synergy
 In some cases, combining companies can result in financial advantages the stand-alone
companies would be otherwise unable to achieve individually.
 For example, smaller companies generally have to pay a premium when borrowing
money relative to larger companies.
 However, two mid-sized companies can merge and lower their combined cost of
capital more than they could individually.
 There may also be unique tax benefits and possibly an increased debt capacity as a
result of merging that would otherwise be unavailable.
4) Market synergy
 Synergy in marketing is when two marketing initiatives create a response greater than
the sum of the combined response the two would have elicited alone.
 For small businesses, which often lack the funds for an aggressive marketing budget,
the key to achieving marketing synergy is in multiple, low-cost initiatives.
5)Management Synergy
 Synergy in management and its relation to team work refers to combined effort of
individual as participant s of the team. It can be positive or negative.
 Positive synergy like improved efficiency in operation, greater exploitation of
opportunities, Use of resources etc. Negative synergy reduced efficiency, less use of
resources etc.
3. Explain briefly concept of Change Management

What is Change Management
 Change management refers to the task of managing change.
 Managing change refers to the making of changes in a planned and managed or
systematic fashion.
Change Management Process
 six main activities as under: • Identify potential change• Assess• Plan change•
Implement change• Review and• Close change.
Force Field Analysis
Page 31 of 36
Resistance to Change
 Change disturbs existing equilibrium, existing procedures, power structures etc. within
the system or organization, which may not be liked by many persons, thus leading to
resistance to change.
4. With the help of Fish Bone diagram explain concept of porters value chain
Page 32 of 36
Primary Activities
Primary activities are those processes that are directly involved with producing and supporting
a delivered product or service.
Inbound logistics – the activities dealing with how inputs are received, stored and distributed
to the production process.
Operations – the activities that relate to transforming inputs into a product or service.
Outbound logistics – the activities that deal with collection, storage and distribution of the
product or service.
Marketing and Sales – the activities associated with informing the customer about the
product and enabling the purchase by the customer.
Service – the processes and activities that support the ongoing value of the product to the
customer after it has been purchased.
Support activities enable each of the primary activities to take place whilst not being directly
involved with producing the product or service.
Procurement – the activities that relate to the purchasing of resources needed by the
organisation to operate.
Human resource management – the activities relating to the recruitment, training and
ongoing management of personnel.
Technological development – the activities concerned with managing information and the
development and protection of the business’s knowledge base.
Infrastructure – the activities and functions that support the business itself e.g.
administrative, accounting, legal and general management.
The profit margin of the business is the value created and delivered to the customer minus the
cost of creating that value.
5. Define Balanced Scorecard and briefly explain its perspectives
A model integrating financial and non-financial measures. (Kaplan & Norton 1996)
Causal link between outcomes and performance drivers of such outcomes
Page 33 of 36
Translates the vision and strategy of a business unit into objectives and measures in 4
distinct areas Financial Customer Internal Business process Learning and growth
Financial Perspective: How do we look to our Shareholders?
Customer Perspective: How do our customers look at us?
Learning and Growth: Perspective How can we continue to improve?
Internal Business: Perspective What we must excel at?
Balanced Scorecard
 Financial Perspective - This consists of costs or measurement involved, in terms of
rate of return on capital (ROI) employed and operating income of the organization.
 Customer Perspective - Measures the level of customer satisfaction, customer
retention and market share held by the organization.
 Business Process Perspective - This consists of measures such as cost and quality
related to the business processes.
 Learning and Growth Perspective - Consists of measures such as employee
satisfaction, employee retention and knowledge management.
6. Write short notes on 1) MBO and 2) PERT/CPM

PERT/CPM
Page 34 of 36
 Why PERT/CPM? Prediction of deliverables Planning resource requirements

Controlling resource allocation Internal program review External program review
Performance evaluation Uniform wide acceptance
 APPLICATIONS OF PERT/CPMTECHNIQUES • Construction of a Dam or Canal
• Construction of a building or highway • Maintenance or Overhaul of aircrafts • Space
Flights • Designing a Prototype of a Machine • Development of Supersonic Planes
 Steps in PERT/CPM 1. PLANNING 2. SCHEDULING 3. ALLOCATION OF
RESOURCES 4. CONTROLLING
 Framework for PERT and CPM Define the Project. The Project should have only
a single start activity and a single finish activity. Develop the relationships among
the activities. Draw the "Network" connecting all the activities. Assign time and/or
cost estimates to each activity Compute the critical path. Use the Network to help
plan, schedule
Management by Objective
 Management by objectives (MBO) is a systematic and organized approach that allows
management to focus on achievable goals and to attain the best possible results from
available resources.
 It aims to increase organizational performance by aligning goals and subordinate
objectives throughout the organization.
 Ideally, employees get strong input to identify their objectives, time lines for
completion, etc. MBO includes ongoing tracking and feedback in the process to reach
objectives.
 Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his
book The Practice of Management.
Page 35 of 36
Features and Advantages of MBO• Motivation – Involving employees in the whole process
of goal setting. Increasing employee empowerment increases employee job satisfaction and
commitment. • Better communication and Coordination – Frequent reviews and interactions
between superiors and subordinates helps to maintain harmonious relationships within the
enterprise and also solves many problems faced during the period.
Page 36 of 36

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Tilak Education Society’s

S.K College of Science and Commerce, Nerul

Filll in the blanks

1) Marketing strategy is formulated at Functional level of the business firm.

(a) Project (b) Procedural (c) Behavioral (d) Functional

(a) Isolated (b) integrated (c) comprehensive (d) separate

3) Objectives are more specific and concrete in nature

(a) Goals (b) Objectives (c) Plans (d) Mission statements

(a) Vision (b)Mission (c) Plan (d) Goal

5) Objectives serve as standards for measuring organizational performance.

(a) Objectives (b) Goal (c) Plans (d) Strategies

2) The term strategic management is applicable only to business organizations. -False

4) Objectives set should not be challenging in nature. – False

Q3. Match the following

Fill In the blanks

1. Merger and acquisition takes place in Expansion Strategy.

Match the following

1-c 2-a 3-e 4-b 5-f

Q1. Fill in the blanks

(a) Structural (b) Procedural (c) Project (d) Behavioural

(a) Behavioural (b) Functional (c) Procedural (d) Project

4) Supplier’s supplying standard products enjoy high bargaining power. – False

Q3. Match the following

1. BCG Matrix a. Strategic decision making

2. GE Nine-cell matrix b. Systematic approach

3. Models of strategy making c. Industry growth rate and relative market

4. Entrepreneurial model d. Industry attractiveness and business strenth

5. Planning model e. Dynamic approach

1- c 2-d 3-a 4-e 5-b

1. Conducting variance analysis is a part of strategy control.

a) formulation b) making c) control

3. Budgetary control is a controlling device.

a) controlling b) discipline c) management

4. Standards can be either quantitative or qualitative.

5. Social work-benefit analysis benefits the society.

a) employers b) government c) society

Q.2. True or False

2. ROI is a measure of financial performance. True

3. Social goal setting directed towards uplifting poor people. True

5. Change has no beginning and no end. True

Q.3. Match the following

1. Evaluation and control a) Controlling tool

2. Variance analysis b)Teamwork

3. Premise control c)Michael Porter

4. Generic strategies d)Standards of performance

5. Synergy e)Validity criteria

1-d 2-a 3-e 4-c 5-b

Features of Business Policy

Importance of Business Policy

2. Measuring the actual performance with desired performance.

3 Explain The Levels Of Strategic Management

4 What is an Strategic Business Units (SBU’s) and state its importance

2. Accountability – When handling multiple brands or products, it is easier if there are

Importance of Vision statement is:

5. Achievable: A vision statement cannot be wildly impractical. Even though vision

6 What is a Mission statement, explain its importance

Importance of Mission statement is:

Types of organizational objectives