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Question 1

ABC Pharmaceuticals, a leading pharmaceutical company, is in the process of formulating its

strategic intent. The top management of ABC Pharmaceuticals wants to define the company's
future direction, objectives, and goals. Their aim is to create a vision that sets the
organization apart and provides a roadmap for future growth. ABC Pharmaceuticals aspires to enrich
the lives of people by producing high- quality pharmaceutical products at competitive prices and
wants to become the world's leading pharmaceutical company by 2030." Based on this context,
draft a vision and mission statement that could be formulated by the top management of ABC
Pharmaceuticals.

ANSWER :

ABC Pharmaceuticals may have following vision and mission:

Vision: Vision implies the blueprint of the company’s future position. It describes where the organisation
wants to land. ABC Pharmaceuticals may have vision "To be the globally recognized leader in
pharmaceutical innovation and enriching the lives of people worldwide by providing high-quality,
affordable, and accessible pharmaceutical products."

Mission: Mission delineates the firm’s business, its goals and ways to reach the goals. It explains the
reason for the existence of the firm in society. It is designed to help potential shareholders and investors
understand the purpose of the company.

ABC Pharmaceuticals may identify mission in the following lines:

• To improve the well-being of individuals and communities by relentlessly pursuing excellence in

pharmaceutical research, development, and manufacturing.
• Committed to producing safe, effective, and sustainable medicines that address unmet medical
needs and enhance the quality of life for patients.
• Through innovation, collaboration, and ethical practices, we aim to make a positive impact on
global healthcare and become the trusted partner of healthcare providers and patients alike.

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Question 2

Define Strategic Management. Also discuss the limitations of Strategic Management.

ANSWER :

The term ‘strategic management’ refers to the managerial process of developing a strategic vision,
setting objectives, crafting a strategy, implementing and evaluating the strategy, and initiating corrective
adjustments were deemed appropriate.

The presence of strategic management cannot counter all hindrances and always achieve success as
there are limitations attached to strategic management. These can be explained in the following lines:

• Environment is highly complex and turbulent. It is difficult to understand the complex

environment and exactly pinpoint how it will shape-up in future. The organisational estimate about
its future shape may awfully go wrong and jeopardise all strategic plans. The environment affects
as the organisation has to deal with suppliers, customers, governments and other external factors.
• Strategic Management is a time-consuming process. Organisations spend a lot of time in
preparing, communicating the strategies that may impede daily operations and negatively impact
the routine business.
• Strategic Management is a costly process. Strategic management adds a lot of expenses to an
organization. Expert strategic planners need to be engaged, efforts are made for analysis of
external and internal environments, devise strategies and properly implement. These can be really
costly for organisations with limited resources particularly when small and medium organisation
create strategies to compete.
• Competition is unpredictable. In a competitive scenario, where all organisations are trying to
move strategically, it is difficult to clearly estimate the competitive responses to the strategies.

Question 3

Tech Innovators Inc., a rapidly expanding technology company, aims to lead in artificial intelligence
(AI) and machine learning (ML). With recent growth, the company is evaluating which organizational
structure will best support its vision for innovation and leadership in AI technologies. They are
considering three options: the Functional and Divisional Relationship for specialization, the Horizontal
Relationship for flat, collaborative management, and the Matrix Relationship for cross- functional
teams. Which of these relationships—Functional and Divisional, Horizontal, or Matrix—will most
effectively achieve Tech Innovators Inc.’s strategic goals, and why?

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ANSWER :

The Matrix Relationship is the most effective structure for Tech Innovators Inc. to achieve its vision
of leadership in AI technologies. This structure promotes cross-functional collaboration, essential for
managing complex AI projects and fostering innovation. By integrating expertise from various
departments into temporary, task-based teams, the Matrix Relationship supports dynamic project
management and aligns well with the company’s strategic goals for advancing AI technologies. Despite
its complexity, this approach provides the flexibility and collaboration necessary for a leading-edge
AI and ML focus.

Relationship Benefits Drawbacks Suitability for AI

Leadership
Functional and Specialization, clear Potential for Less effective
Divisional management of Functions and departmental isolation, for cross-
products. limited collaboration. functional AI
. projects.
Horizontal Open communication, Hard to scale, unclear Suitable for
encourages innovation and roles and startups, less for
fast idea sharing. responsibilities. large AI initiatives.
Matrix Facilitates cross- Complex reporting Ideal for
functional collaboration, structures, potential managing diverse,
flexible resource conflicts. innovative AI
management for projects.
complex projects.

Question 4

Strategic management helps an organization to work through changes in the environment to gain
competitive advantage. In light of statement discuss its benefits.

ANSWER :

Strategic management involves developing the company’s vision, environmental scanning, strategy
formulation, implementation, evaluation and control. It emphasizes the monitoring and evaluation of
external opportunities and threats in the light of a company’s strengths and weaknesses and designing
strategies for survival and growth. It helps in the creation of a competitive advantage to outperform
the competitors and also guides the company successfully through all changes in the environment.

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The major benefits of strategic management are:

• Strategic management gives directions to the company to move ahead. It defines the goals and
mission.
• It helps organisations to be proactive instead of reactive in shaping their future.
• It provides frameworks for all major decisions of an enterprise such as decisions on businesses,
products, markets, manufacturing facilities, investments and organisational structure. It
provides better guidance to the entire organisation on the crucial point - what it is trying to
do.
• It helps organisations to identify the available opportunities and identify ways and means to
achieve them.
• It serves as a corporate defence mechanism against mistakes and pitfalls.
• It helps to enhance the longevity of the business.
• It helps the organisation to develop certain core competencies and competitive advantages that
would facilitate survival and growth.

Question 5

XYZ Enterprises operates in various sectors, including renewable energy solutions, organic skincare
products, eco-friendly packaging, and smart home technologies. The organization is currently in the
process of recruiting a Chief Executive Officer. In this scenario, imagine yourself as an HR
consultant for XYZ Enterprises. Identify the strategic level that encompasses this role within XYZ
Enterprises. Provide an overview of the key duties and responsibilities falling under the Chief
Executive Officer's scope.

ANSWER :

The Chief Executive Officer (CEO) position within XYZ Enterprises operates at the Corporate Level.
This executive level is key in leading the overall direction, performance, and success of the entire
organization. The CEO assumes a central role in shaping the company's strategic vision, overseeing diverse
business sectors, and ensuring alignment with organizational goals.

Key Duties and Responsibilities of the CEO:

The CEO's role encompasses various strategic responsibilities at the Corporate Level, involving:

1. oversee the development of strategies for the whole organization;

2. defining the mission and goals of the organization;
3. determining what businesses, it should be in;

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4. allocating resources among the different businesses;

5. formulating, and implementing strategies that span individual businesses;
6. providing leadership for the organization;
7. ensuring that the corporate and business level strategies which company pursues are consistent
with maximizing shareholders wealth; and
8. managing the divestment and acquisition process.

Given the diverse nature of XYZ Enterprises, including renewable energy solutions, organic skincare
products, eco-friendly packaging, and smart home technologies, the CEO's responsibilities are tailored
to navigate the unique challenges and opportunities presented by each sector. In conclusion, the CEO at
the Corporate Level plays a critical role in guiding XYZ Enterprises strategically, ensuring cohesive
leadership, and driving sustainable success across its diverse business domains.

Question 6

‘A company's mission statement is typically focused on its present business scope.' Explain
the significance of a mission statement.

ANSWER :

A company's mission statement is typically focused on its present business scope, who we are and
what we do. Mission statements broadly describe an organization's present capability, customer focus,
activities, and business make up. Mission for an organization is significant for the following reasons:

• It ensures unanimity of purpose within the organization.

• It develops a basis, or standard, for allocating organizational resources.
• It provides a basis for innovating the use of the organisation’s resources
• It establishes a general tone or organizational climate, to suggest a business-like operation.
• It serves as a focal point for those who can identify with the
• organisation's purpose and direction.
• It facilitates the translation of objectives and goals into a work structure involving the
assignment of tasks to responsible elements within the organization.
• It specifies organizational purposes and the translation of these purposes into goals in such a
way that cost, time, and performance parameters can be assessed and controlled.

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Question 7

Ramesh Sharma has fifteen stores selling consumer durables in the Delhi Region. Four of these
stores have been opened in the last three years. He believes in managing strategically and
enjoyed significant sales of refrigerators, televisions, washing machines, air conditioners and like
till four years back. With shift to the purchases to online stores, the sales of his stores came
down to about seventy per cent in the last four years.

Analyse the position of Ramesh Sharma in light of limitations of strategic management.

ANSWER :

Ramesh Sharma is facing declining sales on account of the large-scale shift of customers to online
stores. While he is using the tools of strategic management, they cannot counter all hindrances and
always achieve success. There are limitations attached to strategic management as follows:

• The environment under which strategies are made is highly complex and turbulent. Entry of
online stores, a new kind of competitor brought a different dimension to selling consumer durables.
Online stores with their size power could control the market and offer stiff competition to
traditional stores.
• Another limitation of strategic management is that it is difficult to predict how things will shape-
up in future. Ramesh Sharma, although managing strategically failed to see how online stores
will impact the sales.
• Although strategic management is a time-consuming process, he should continue to manage
strategically. The challenging times require more effort on his part.
• Strategic management is costly. Ramesh Sharma may consider engaging experts to find out
preferences of the customers and attune his strategies to better serve them in a customized
manner. Such customized offerings may be difficult to match by the online stores.
• The stores owned by Ramesh Sharma are much smaller than online stores. It is very difficult for
him to visualize how online stores will be moving strategically.

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Question 8

Explain in brief the term ‘objectives’ as part of strategic intent. Also outline the characteristics,
the objectives of a company must possess to be meaningful and to serve the intended role.

ANSWER :

Objectives are an organization’s performance targets – the results and outcomes it wants to achieve.
They function as yardsticks for tracking an organization’s performance and progress. Objectives with
strategic focus relate to outcomes that strengthen an organization’s overall business position and
competitive vitality.

Objectives, to be meaningful to serve the intended role, must possess the following characteristics:

• Objectives should define the organisation’s relationship with its environment.

• They should be facilitated towards the achievement of mission and purpose.
• They should provide the basis for strategic decision-making.
• They should provide standards for performance appraisal.
• They should be concrete and specific.
• They should be related to a time frame.
• They should be measurable and controllable.
• They should be challenging.
• Different objectives should correlate with each other.
• Objectives should be set within the constraints of organisational resources and the external
environment.

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QUESTION NO 1 (RTP MAY 25)

Easy Access is a marketing services company providing consultancy to a range of business clients. Easy Access
and its rivals have managed to persuade the Government to require all marketing services companies to complete
a time-consuming and bureaucratic registration process and to comply with an industry code of conduct. Do
you think that by doing this Easy Access and its rivals has an advantage in some ways to fight off competitors?
Explain.
ANSWER

Yes, Easy Access and its rivals get advantage from this move. The new bureaucratic process is making it
more complicated for organizations to start up and enter the Easy Access market, increasing barriers to
entry and thereby reducing the threat of new entrants. New entrants can reduce an industry’s
profitability, because they add new production capacity, leading to increase in supply of the product,
sometimes even at a lower price and can substantially erode existing firm’s market share position.
However, New entrants are always a powerful source of competition. The new capacity and product range
they bring in throws up a new competitive pressure. The bigger the new entrant, the more severe the
competitive effect. New entrants also place a limit on prices and affect the profitability of existing
players, which is known as Price War.

QUESTION NO 2 (RTP MAY 25)

Yash is planning to launch his new tech start-up. He is exploring different locations across the
country to establish his company in the right business environment. One option is the city of
Bengaluru, the Silicon Valley of India, with an engaging network of entrepreneurs, investors, advisors
and mentors. Coupled with various subsidies for new ventures and tax benefits, Bengaluru might be
an ideal choice for Yash to establish his company and increase the chances of success.

Define the term Business Environment with respect to the above scenario. Explain the different
ways in which the interaction of a business with its environment can be helpful in developing a
successful strategy.

ANSWER

Business Environment refers to all external factors, influences, or situations that affect business
decisions, plans, and operations. In Yash's case, these factors include the dynamic and evolving conditions
in Bengaluru, which impact the strategic decisions for his tech start-up.

Benefits of Interaction with the Business Environment

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 Determine Opportunities and Threats: Interaction with the environment helps Yash identify new
consumer needs, emerging trends, and potential market opportunities. This insight can guide the
development of innovative products and services that meet market demands. Understanding
changes in laws, social behaviors, and competitor actions enables Yash to anticipate and mitigate
potential threats, ensuring the start-up remains resilient and adaptive.
 Give Direction for Growth: By analyzing the external environment, Yash can pinpoint areas for
expansion and growth. Recognizing market trends and technological advancements allows him to
strategize effectively, ensuring the start-up scales successfully. Awareness of the changes around
the business environment facilitates better planning and strategic decisions, aligning the start-
up’s goals with the market dynamics.
 Continuous Learning: Continuous interaction with the environment motivates Yash and his team to
update their knowledge, understanding, and skills. Staying informed about industry trends and
advancements ensures the start-up remains competitive. This ongoing learning process enhances
the start-up's ability to adapt to changes, promoting innovation and responsiveness to market
shifts.
 Image Building: Understanding and responding to environmental needs help the start-up build a
positive image. For instance, adopting sustainable practices or contributing to local initiatives can
enhance the company’s reputation. Demonstrating sensitivity to the business environment shows
that the start-up is responsible and community-focused, attracting customers and partners who
value corporate social responsibility.
 Meeting Competition: Interaction with the environment allows Yash to analyze competitors’
strategies and adapt accordingly. Understanding competitors’ strengths and weaknesses helps in
crafting strategies that provide a competitive edge. By leveraging insights from the environment,
the start-up can position itself uniquely in the market, differentiating its offerings from those of
competitors.

QUESTION NO 3 (RTP JAN 25)

Mr. Arun Kumar has built a successful business in the handmade ceramic products industry in
Gujarat. His company, CeramiCrafts, is renowned for crafting distinctive, high-quality ceramic home
décor items that have gained a strong foothold in the market. However, recent market shifts and
rising competition have impacted sales. Seeking professional guidance, Mr. Kumar consults a strategic
advisor who recommends an in-depth analysis of the competitive landscape. To comprehend the
competitive landscape, what steps should Mr. Kumar follow?

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ANSWER

Understanding the competitive landscape is crucial for Mr. Arun Kumar to navigate the handmade ceramic
products industry in Gujarat successfully. This involves identifying both direct and indirect competitors
while gaining insights into their vision, mission, core values, niche markets, and strengths and weaknesses.
Here are the structured steps Mr. Kumar should follow to comprehend the competitive landscape and
bolster his strategic position:

(i) Identify the competitor: The first step to understanding the competitive landscape is to identify the
competitors in the handmade ceramic products industry. Mr. Kumar should gather actual data on the
market share and positioning of competitors within the industry.
(ii) Understand the competitors: Once the competitors have been identified, Mr. Kumar can use market
research reports, the internet, newspapers, social media, industry reports, and various other sources to
understand the products and services offered by competitors. This will help him comprehend how they
position themselves in different markets and their unique selling propositions.
(iii) Determine the strengths of the competitors: Mr. Kumar should assess what the competitors excel at.
Do they offer superior product quality? Are they using marketing strategies that reach a wider
customer base? Why do consumers choose them over others? Understanding these strengths will help
Mr. Kumar identify areas where his company, CeramiCrafts, can enhance its offerings.
(iv) Determine the weaknesses of the competitors: Weaknesses of competitors can be identified by
reviewing customer feedback, consumer reports, and reviews. Consumers often share their experiences,
especially when products or services are either exceptional or subpar. By examining these weaknesses,
Mr. Kumar can find opportunities to position CeramiCrafts as a better alternative.
(v) Put all of the information together: At this stage, Mr. Kumar should consolidate all the information
gathered about competitors. This will help him identify gaps in the market that his company can fill, as
well as areas where CeramiCrafts needs to improve. By understanding the competition thoroughly, he
can devise strategies that strengthen his market position.

By following these steps, Mr. Kumar can gain a comprehensive understanding of the competitive landscape,
enabling him to make informed strategic decisions for CeramiCrafts. This tailored approach ensures that
the insights gained are directly applicable to the handmade ceramic products industry in Gujarat.

QUESTION NO 4 (RTP JAN 25)

According to Michael Porter, what are the five competitive forces that exist within an industry?

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ANSWER

Michael Porter's Five Forces model is a widely utilized tool for systematically analyzing the competitive
forces within an industry. The model identifies five competitive forces that shape the overall competitive
landscape:

 Threat of New Entrants: New entrants bring added capacity and product variety, intensifying
competition and impacting prices. The size of new entrants magnifies their competitive influence,
placing constraints on prices and affecting existing players' profitability.
 Bargaining power of Buyers: The ability of buyers to form groups or cartels influences their
bargaining power. This force, particularly in industrial products, impacts pricing and often leads to
demand for better services, influencing costs and investments for producers.
 Bargaining power of Suppliers: Suppliers with specialized offerings exert significant bargaining
power, especially when limited in number. Supplier bargaining power determines raw material costs,
affecting industry attractiveness and profitability.
 Rivalry among Current Players: Existing players engage in competition, influencing strategic
decisions across various levels. This rivalry is evident in pricing, advertising, cost pressures, and
product strategies, impacting the overall competitive landscape.
 Threats from Substitutes: Substitute products can alter an industry's competitive dynamics,
offering price advantages or performance improvements. Substitutes limit prices and profits, and
industries with substantial R&D investments are particularly susceptible to threats from
substitute products.

These forces collectively determine industry’s attractiveness and profitability by influencing factors
such as costs and investments required for industry participation. The strength of these forces varies
across industries, ultimately shaping the potential for earning attractive profits.

QUESTION NO 5 (RTP SEP 24)

A company has recently launched a new product in the market. Initially, it faced slow sales growth,
limited markets, and high prices. However, over time, the demand for the product expanded rapidly,
prices fell, and competition increased. Identify the stages of the product life cycle (PLC) that the
company went through.

ANSWER

The company went through the following stages of the product life cycle (PLC):

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Introduction stage: Initially, the company faced slow sales growth, limited markets, and high prices,
which are characteristic of the introduction stage. During this stage, competition is almost negligible, and
customers have limited knowledge about the product.

Growth stage: Over time, the demand for the product expanded rapidly, prices fell, and competition
increased. These are typical features of the growth stage in the PLC. In this stage, the product gains
market acceptance, and customers become more aware of the product's benefits and show interest in
purchasing it.

QUESTION NO 6 (RTP SEP 24)

Rajiv Arya owns an electrical appliance company specializing in the manufacture of domestic vacuum
cleaners. The market is competitive, with four other manufacturers offering similar products and
achieving comparable sales volumes. Additionally, these rival firms hold several patents related to
the vacuum cleaner technology. The supplier base for raw materials is extensive, with multiple
suppliers available. Identify and explain the significant forces from Porter’s Five Forces framework
that are relevant to Rajiv Arya’s company.

ANSWER

The competitive rivalry will be a significant force in case of company of Rajiv Arya as all the rivals are
similar in sizes and are manufacturing similar products. It is difficult for any single manufacturer to
dominate the market. Large number of patents will make it difficult for new entrants to break into the
market. Further, as there are a large number of small suppliers the power that suppliers can exert will
also be low.

There is no information relating to substitutes and bargaining power of customers in the information
given in scenario. However, a domestic vacuum cleaner will directly compete with other options such as
house maids. Availability of house maids at low cost can significantly disturb the sales of products.

Further, as the products are similar customers can easily shift from one company to another. This will
only enhance competitive rivalry.

QUESTION NO 7 (RTP MAY 24)

Riya Sharma owns a confectionery business in Jaipur, specializing in homemade chocolates

and candies. Despite holding a substantial market share in the central region, her business
has experienced declining sales of these products over the last few years. Concerned

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about the market dynamics, Riya consults a management expert for guidance. The consultant
recommends a comprehensive understanding of the competitive landscape. Explain the steps
to be followed by Riya Sharma to understand the competitive landscape to address the sales
decline.
ANSWER

Steps to understand the competitive landscape are as follows:

(i) Identify the competitor: The first step to understanding the competitive landscape is to
identify the competitors in the firm’s industry and have actual data about their respective
market share.
(ii) Understand the competitors: Once the competitors have been identified, the strategist
can use market research report, internet, newspapers, social media, industry reports, and
various other sources to understand the products and services offered by them in different
markets.
(iii) Determine the strengths of the competitors: What is the strength of the competitors?
What do they do well? Do they offer great products? Do they utilize marketing in a way
that comparatively reaches out to more consumers. Why do customers give them their
business?
(iv) Determine the weaknesses of the competitors: Weaknesses (and strengths) can be
identified by going through consumer reports and reviews appearing in various media. After
all, consumers are often willing to give their opinions, especially when the products or
services are either great or very poor.
(v) Put all of the information together: At this stage, the strategist should put together all
information about competitors and draw inference about what they are not offering and what
the firm can do to fill in the gaps. The strategist can also know the areas which need to be
strengthened by the firm.

QUESTION NO 8 ( RTP MAY 24)

Explain the concept of Experience Curve and highlight its relevance in strategic management.

ANSWER

Experience curve akin to a learning curve which explains the efficiency increase gained by workers
through repetitive productive work. Experience curve is based on the commonly observed
phenomenon that unit costs decline as a firm accumulates experience in terms of a cumulative
volume of production. It is based on the concept, “we learn as we grow”. The implication is
that larger firms in an industry would tend to have lower unit costs as compared to those for

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smaller companies, thereby gaining a competitive cost advantage. Experience curve results from
a variety of factors such as learning effects, economies of scale, product redesign and
technological improvements in production.
Experience curve has following features:

 As business organisation grow, they gain experience.

 Experience may provide an advantage over the competition. Experience is a key barrier to
entry.
 Large and successful organisation possess stronger “experience effect”.
A typical experience curve may be depicted as follows:

Figure: Experience curve

As a business grows, it understands the complexities and benefits from its experiences.

The concept of experience curve is relevant for a number of areas in strategic management. For instance,
the experience curve is considered a barrier for new firms contemplating entry in an industry. It is
also used to build market share and discourage competition.

QUESTION NO 9 (MTP MAY 24/MODEL 1)

ABC Corp, a multinational consumer electronics company, is planning to expand its operations into a
new country. The company's senior management is evaluating the potential risks and opportunities
of entering this new market. As part of their analysis, they decide to use the PESTLE framework
to assess the external factors that could impact their decision. How can the PESTLE framework
help ABC Corp assess the external factors affecting its decision to expand into a new country?

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ANSWER

The PESTLE framework can help ABC Corp assess the external factors affecting its decision to expand
into a new country by considering the following aspects:

 Political Factors: These include the stability of the government, government policies on foreign
investment, trade agreements, and regulatory frameworks. By analyzing these factors, ABC Corp
can assess the political risks associated with entering the new market.
 Economic Factors: Economic factors such as GDP growth rate, inflation rate, exchange rates, and
economic stability can impact ABC Corp's decision. By analyzing these factors, the company can
understand the economic environment of the new market and its potential impact on business
operations.
 Social Factors: Social factors such as cultural norms, demographics, and lifestyle trends can
influence consumer behavior and demand for ABC Corp's products. Understanding these factors
can help the company tailor its marketing strategies to the new market.
 Technological Factors: Technological factors such as infrastructure, technological advancements,
and the level of technology adoption in the new market can impact ABC Corp's operations. By
assessing these factors, the company can determine the technological requirements for entering
the new market.
 Legal Factors: Legal factors such as laws and regulations related to foreign investment, intellectual
property rights, and labor laws can impact ABC Corp's decision. By analyzing these factors, the
company can ensure compliance with legal requirements in the new market.
 Environmental Factors: Environmental factors such as climate change, environmental regulations,
and sustainability practices can impact ABC Corp's operations and reputation. By considering these
factors, the company can assess the environmental risks and opportunities in the new market.

Overall, the PESTLE framework can provide ABC Corp with a comprehensive analysis of the external
factors that could impact its decision to expand into a new country, helping the company make
informed and strategic decisions.

QUESTION NO 10 (MTP MAY 24/MODEL 1)

A beverage company is launching a new line of energy drinks targeted at health-conscious consumers.
The strategic manager wants to study the market position of rival companies in the energy drink
segment. Which tool can be used for this analysis, and what is the procedure to implement it
effectively?

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ANSWER

To study the market position of rival companies in the energy drink segment, the strategic manager can
use strategic group mapping. This tool helps identify strategic groups, which consist of rival firms with
similar competitive approaches and positions in the market. The procedure for implementing strategic
group mapping effectively is as follows:

1. Identify the competitive characteristics that differentiate firms in the industry typical variables
that are price/quality range (high, medium, low); geographic coverage (local, regional, national,
global); degree of vertical integration (none, partial, full); product-line breadth (wide, narrow); use
of distribution channels (one, some, all); and degree of service offered (no-frills, limited, full).
2. Plot the firms on a two-variable map using pairs of these differentiating characteristics.
3. Assign firms that fall in about the same strategy space to the same strategic group.
4. Draw circles around each strategic group making the circles proportional to the size of the group's
respective share of total industry sales revenues.

By following these steps, the strategic manager can gain valuable insights into the competitive
landscape of the energy drink segment and identify potential positioning strategies for the new line
of energy drinks targeted at health-conscious consumers.

QUESTION NO 11 (MTP MAY 24/MODEL 2)

Imagine you are a consultant advising a small manufacturing company embarking on a digital
transformation journey. The company's leadership is concerned about managing the change
effectively. Using the best practices for managing change in small and medium-sized businesses,
outline a strategy to help the company navigate this transformation successfully.

ANSWER

To help the small manufacturing company navigate its digital transformation successfully, we would
recommend the following strategy:

1. Begin at the top: The leadership team should be united and committed to the digital transformation.
They should communicate clear vision for the future of the company and lead by example.
2. Ensure that the change is necessary and desired: Before implementing any changes, the company
should assess its current state and identify areas where digital transformation can add value.
3. Reduce disruption: Employee perceptions of change can vary, so it's important to minimize disruption.
This can be done by communicating early and often about the changes, providing training and support

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for employees, and empowering change agents within the organization. It's important to involve
employees in this process to ensure their buy-in.
4. Encourage communication: Create channels for employees to ask questions and provide feedback.
Encourage collaboration between departments to share ideas and innovations. Effective
communication can help alleviate fears and keep everyone aligned.
5. Recognize that change is the norm: Digital transformation is not a one-time project but an ongoing
process. The company should be prepared to adapt to new technologies and market conditions
continuously.

By following these best practices, the small manufacturing company can successfully navigate its digital
transformation and position itself for future growth and success.

QUESTION NO 12 (MTP SEP 24/MODEL 4)

GreenGardens, a small but growing organic farm, is assessing its business environment to strategically plan for
future growth. The farm boasts high-quality, pesticide-free crops, but faces challenges with its limited
distribution channels. As the demand for organic products continues to rise, GreenGardens recognizes the
potential to broaden its market reach. However, unpredictable weather conditions and competition from larger
farms present significant obstacles. To effectively navigate these challenges and opportunities, GreenGardens
needs to conduct a comprehensive evaluation. Identify the type of analysis GreenGardens should conduct to
strategically plan for its future growth and outline the grid.
ANSWER

GreenGardens should conduct a SWOT analysis to strategically plan for future growth. This analysis will
help them understand their internal strengths and weaknesses, as well as external opportunities and
threats SWOT Analysis Grid for GreenGardens:

STRENGTHS WEAKNESSES
High-quality, pesticide-free produce Limited distribution channels
Strong brand reputation for organic products Small scale of operations
Dedicated and knowledgeable workforce Limited marketing and sales reach
OPPORTUNITIES THREATS
Rising demand for organic products Unpredictable weather conditions
Potential to expand into new markets Intense competition from larger farms
Increased consumer awareness of health and Regulatory changes affecting organic farming
sustainability

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By systematically evaluating these areas, GreenGardens can leverage its strengths, address its
weaknesses, capitalize on opportunities, and mitigate threats. This strategic planning will guide them
toward sustainable growth and success in the organic farming industry.

QUESTION NO 13 (MTP SEP 24/MODEL 4)

Define Strategic Performance Measures (SPM). Explain various types of strategic performance measures.
ANSWERS

Strategic Performance Measures (SPM) are metrics used by organizations to evaluate and track the
effectiveness of their strategies in achieving strategic goals and objectives. SPM provides a framework
for measuring the performance of key areas critical to the success of the organization's strategy. These
measures help in assessing whether the organization is progressing towards its desired outcomes and
allow for adjustments to be made to improve performance.

Types of Strategic Performance Measures

There are various types of strategic performance measures, including:

 Financial Measures: Financial measures, such as revenue growth, return on investment (ROI), and
profit margins, provide an understanding of the organization's financial performance and its ability
to generate profit.
 Customer Satisfaction Measures: Customer measures, such as customer satisfaction, customer
retention, and customer loyalty, provide insight into the organization's ability to meet customer
needs and provide high-quality products and services.
 Market Measures: Market measures, such as market share, customer acquisition, and customer
referrals, provide information about the organization's competitiveness in the marketplace and its
ability to attract and retain customers.
 Employee Measures: Employee measures, such as employee satisfaction, turnover rate, and
employee engagement, provide insight into the organization's ability to attract and retain talented
employees and create a positive work environment.
 Innovation Measures: Innovation measures, such as research and development (R&D) spending,
patent applications, and new product launches, provide insight into the organization's ability to
innovate and create new products and services that meet customer needs.
 Environmental Measures: Environmental measures, such as energy consumption, waste reduction,
and carbon emissions, provide insight into the organization's impact on the environment and its
efforts to operate in a sustainable manner.

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QUESTION NO 14 (MTP SEP 24/MODEL 4)

“Each organization must build its competitive advantage keeping in mind the business warfare. This
can be done by following the process of strategic management.” Considering this statement, explain
major benefits of strategic management.

ANSWER

Each organization has to build its competitive advantage over the competitors in the business warfare in
order to win. This can be done only by following the process of strategic management. Strategic
Management is very important for the survival and growth of business organizations in dynamic business
environments. Other major benefits of strategic management are as follows:

 Strategic management helps organizations to be more proactive rather than reactive in dealing
with its future. It facilitates to work within vagaries of environment and remains adaptable with
the turbulence or uncertain future. Therefore, they are able to control their own destiny in a
better way.
 It provides better guidance to entire organization on the crucial point – what it is trying to do.
Also provides frameworks for all major business decisions of an enterprise such as on businesses,
products, markets, organizational structures, etc.
 It facilitates to prepare the organization to face the future and act as pathfinder to various
business opportunities. Organizations are able to identify the available opportunities and identify
ways and means as how to reach them.
 It serves as a corporate defence mechanism against mistakes and pitfalls. It helps organizations
to avoid costly mistakes in product market choices or investments.
 Over a period of time strategic management helps organization to evolve certain core
competencies and competitive advantages that assist in the fight for survival and growth.

QUESTION NO 15 (MTP SEP 24/MODEL 5)

Reshuffle Corp is a company that manufactures and sells office furniture. They offer a range of
products, from desks and chairs to cabinets and shelves. Recently, the company has been facing
increased competition from online retailers offering similar products at lower prices.

Analyzing the characteristics of products in the furniture industry, discuss how Reshuffle Corp can
differentiate its products to maintain a competitive edge in the market.

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ANSWER

To maintain a competitive edge in the face of increased competition, Reshuffle Corp can differentiate its
products in several ways:

• Tangible and Intangible Aspects: Reshuffle Corp can focus on the tangible aspects of its products,
such as using high-quality materials and innovative designs to create furniture that is both functional and
aesthetically pleasing. Additionally, they can emphasize the intangible aspects of their products, such as
excellent customer service and a strong brand reputation for reliability and durability.

• Pricing Strategies: While market prices are often dictated by competition, Reshuffle Corp can work on
cost optimization to maintain profitability. They can also consider offering value-added services, such as
free installation or extended warranties, to justify a higher price point.

• Product Features: By continually optimizing their product features based on customer feedback and
market trends, Reshuffle Corp can ensure that their products deliver maximum satisfaction to their
target customers. This may include features that enhance functionality, design, quality, and overall user
experience.

• Product Centric Approach: Reshuffle Corp should keep their products at the center of their strategic
activities, ensuring that all business processes, from production to sales and marketing, are aligned to
meet customer needs and expectations.

• Product Life Cycle Management: Reshuffle Corp should be aware of the life cycle of their products
and plan for reinvention or replacement accordingly. They can introduce new product lines or upgrade
existing ones to keep up with changing customer preferences and market trends.

QUESTION NO 16 (MTP SEP 24/MODEL 5)

StarTech Solutions, an aerospace technology firm, operates in a highly competitive industry. Despite the
fierce competition in the aerospace sector, StarTech has carved out a niche for itself by focusing on serving
unique, high-end clients. Unlike its competitors, StarTech has chosen not to diversify its target market and
instead specializes in providing cutting-edge solutions to this niche market.
Identify and explain the strategy adopted by StarTech Solutions. Discuss the advantages and disadvantages
of this strategy.

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ANSWER

The strategy adopted by StarTech Solutions is Focused differentiation. This strategy involves targeting
a specific segment of the market with unique products or services that are perceived as valuable by
customers in that segment. By specializing in serving unique, high-end clients, StarTech is able to
differentiate itself from competitors and create a competitive advantage.

Advantages of Focused Differentiation:

• Strong Customer Loyalty: By catering to a specific niche market, StarTech can build strong relationships
with its customers, leading to higher customer loyalty and retention.

• Higher Profit Margins: Serving a niche market allows StarTech to command higher prices for its
specialized products or services, leading to higher profit margins.

• Reduced Competition: By focusing on a niche market that other firms are not targeting, StarTech faces
less competition, allowing it to establish itself as a leader in that segment.

• Better Resource Allocation: Focusing on a specific market segment allows StarTech to allocate its
resources more efficiently, concentrating on areas that will provide the greatest return on investment.

Disadvantages of Focused Differentiation:

• Limited Market Size: The niche market that StarTech is targeting may be limited in size, restricting
the company's potential for growth.

• Risk of Market Changes: Changes in the market or customer preferences could impact on the demand
for StarTech's specialized products or services, leading to potential revenue loss.

• Higher Costs: Serving a niche market may require specialized resources and expertise, leading to higher
costs of operation.

• Imitation by Competitors: If StarTech's success in the niche market attracts competitors, they may
attempt to imitate its strategy, eroding its competitive advantage.

Overall, the focused differentiation strategy adopted by StarTech Solutions has allowed it to
differentiate itself in a competitive industry and build a strong position in the market. However, the
company must be aware of the potential challenges and risks associated with this strategy and continue
to innovate and adapt to maintain its competitive edge.

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QUESTION NO 17 (MTP SEP 24/MODEL 5)

Strategic alliances are formed if they provide an advantage to all the parties in the alliance. Do you agree?
Explain in brief the advantages of a strategic alliance.
ANSWER

Strategic alliances are formed if they provide an advantage to all the parties in the alliance. These
advantages can be broadly categorised as follows:

(i) Organizational: Strategic alliances may be formed to learn necessary skills and obtain certain
capabilities from the strategic partner. Strategic partners may also help to enhance productive capacity,
provide a distribution system, or extend supply chain. A strategic partner may provide a good or service
that complements each other, thereby creating a synergy. If one partner is relatively new or untried in a
certain industry, having a strategic partner who is well-known and respected will help add legitimacy and
creditability to the venture.

(ii) Economic: Alliances can reduce costs and risks by distributing them across the members of the
alliance. Partners can obtain greater economies of scale in an alliance, as production volume increases,
causing the cost per unit to decline. Finally, partners can take advantage of co-specialization, where
specializations are bundled together, creating additional value.

(iii) Strategic: Organizations may join to cooperate instead of competing. Alliances may also create
vertical integration where partners are part of the supply chain. Strategic alliances may also be useful to
create a competitive advantage by the pooling of resources and skills. This may also help with future
business opportunities and the development of new products and technologies. Strategic alliances may
also be used to get access to new technologies or to pursue joint research and development.

(iv) Political: Sometimes there is need to form a strategic alliance with a local foreign business to gain
entry into a foreign market either because of local prejudices or legal barriers to entry. Forming strategic
alliances with politically influential partners may also help improve overall influence and position.

QUESTION NO 18 (MTP JAN 25/MODEL 6)

“Each organization must build its competitive advantage keeping in mind the business warfare. This
can be done by following the process of strategic management.” Considering this statement, explain
major benefits of strategic management.

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ANSWER

Each organization has to build its competitive advantage over the competitors in the business warfare in
order to win. This can be done only by following the process of strategic management. Strategic
Management is very important for the survival and growth of business organizations in dynamic business
environments. Other major benefits of strategic management are as follows:

 Strategic management helps organizations to be more proactive rather than reactive in dealing
with its future. It facilitates to work within vagaries of environment and remains adaptable with
the turbulence or uncertain future. Therefore, they are able to control their own destiny in a
better way.
 It provides better guidance to entire organization on the crucial point – what it is trying to do.
Also provides frameworks for all major business decisions of an enterprise such as on businesses,
products, markets, organizational structures, etc.
 It facilitates to prepare the organization to face the future and act as pathfinder to various
business opportunities. Organizations are able to identify the available opportunities and identify
ways and means as how to reach them.
 It serves as a corporate defence mechanism against mistakes and pitfalls. It helps organizations
to avoid costly mistakes in product market choices or investments.
 Over a period of time strategic management helps organization to evolve certain core
competencies and competitive advantages that assist in the fight for survival and growth.

QUESTION NO 19 (MTP JAN 25/MODEL 6)

EasyLife Corporation, a leading manufacturer of consumer electronics, considering launching a new

line of smart home devices. As a strategic manager, conduct a SWOT analysis for EasyLife
Corporation to assess the feasibility and potential success of this new venture. Consider both internal
and external factors that could impact the success of the new product line.

ANSWER

SWOT Analysis for EasyLife Corporation’s New Smart Home Devices Venture:

STRENGTHS WEAKNESS
 Access to technological expertise for product  Limited experience in the smart home
development. devices market.
 Financial resources to support product  May require additional investments in
 launch and marketing. research and development.
 Strong brand reputation in

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 consumer electronics.  Potential challenges in integrating a new

 Established distribution network. product line with existing offerings.
 Lack of established customer base for
smart home devices
OPPORTUNITIES THREATS
 Growing market for smart home devices  Intense competition from established players
due to increasing consumer interest in the smart home devices market
in home automation.  Rapid technological advancements lead
 Possibility of partnering with existing to short product lifecycles.
smart home platform providers.  Potential for cybersecurity threats in
 Potential to leverage brand loyalty from connected devices
existing customers.  Economic factors impacting consumer
 Ability to differentiate through spending on discretionary items.
innovative features and design.
The SWOT analysis highlights that while EasyLife Corporation has several strengths that can support
the launch of a new smart home devices line, there are also significant weaknesses and threats to
consider. To maximize the chances of success, EasyLife Corporation should focus on leveraging its brand
reputation and distribution network while carefully addressing the weaknesses and threats identified.

Additionally, staying informed about technological developments and consumer trends will be essential
for maintaining competitiveness in the dynamic smart home devices market.

QUESTION NO 20 (MTP JAN 25/MODEL 7)

Strategic alliances are formed if they provide an advantage to all the parties in the alliance. Do
you agree? Explain in brief the advantages of a strategic alliance.

ANSWER

Strategic alliances are formed if they provide an advantage to all the parties in the alliance. These
advantages can be broadly categorised as follows:

(i) Organizational: Strategic alliances may be formed to learn necessary skills and obtain certain
capabilities from the strategic partner. Strategic partners may also help to enhance productive capacity,
provide a distribution system, or extend supply chain. A strategic partner may provide a good or service
that complements each other, thereby creating a synergy. If one partner is relatively new or untried in a
certain industry, having a strategic partner who is well-known and respected will help add legitimacy and
creditability to the venture.

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(ii) Economic: Alliances can reduce costs and risks by distributing them across the members of the
alliance. Partners can obtain greater economies of scale in an alliance, as production volume increases,
causing the cost per unit to decline. Finally, partners can take advantage of co-specialization, where
specializations are bundled together, creating additional value.

(iii) Strategic: Organizations may join to cooperate instead of competing. Alliances may also create
vertical integration where partners are part of the supply chain. Strategic alliances may also be useful to
create a competitive advantage by the pooling of resources and skills. This may also help with future
business opportunities and the development of new products and technologies. Strategic alliances may
also be used to get access to new technologies or to pursue joint research and development.

(iv) Political: Sometimes there is need to form a strategic alliance with a local foreign business to gain
entry into a foreign market either because of local prejudices or legal barriers to entry. Forming strategic
alliances with politically influential partners may also help improve overall influence and position.

QUESTION NO 21 (MTP JAN 25/MODEL 7)

Analyze the role of Key Success Factors (KSFs) in determining competitive success within an industry.

ANSWER

As industry’s Key Success Factors (KSFs) are those things that most affect industry members’ ability to
prosper in the marketplace – the particular strategy elements, product attributes, resources,
competencies, competitive capabilities and business outcomes that spell the difference between profit &
loss and ultimately, between competitive success or failure. KSFs by their very nature are so important
that all firms in the industry must pay close attention to them. They are the prerequisites for industry
success, or, to put it in another way, KSFs are the rules that shape whether a company will be financially
and competitively successful.

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Question 1 (RTP May 24)

ABC Ltd. is a beverage manufacturing company. It chiefly manufactures soft drinks. The products are
priced on the lower side, which has made the company a leader in the business. Currently it holds 35
percent of the market share. The R & D of the company developed a formula for manufacturing sugar-free
beverages. On successful trial and approval by the competent authorities, the company was granted to
manufacture sugar free beverages. This company is the pioneer to launch sugar free beverages which are
sold at a relatively higher price. This new product has been accepted widely by a class of customers.
These products have proved profitable for the company. Identify the strategy employed by the company
ABC Ltd. and mention what measures could be adopted by the company to achieve the employed strategy.
ANSWER:

According to Porter, strategies allow organizations to gain competitive advantage from three different
bases: cost leadership, differentiation, and focus. Porter called these base generic strategies.

ABC Ltd. has opted for the Differentiation Strategy. The company has invested a huge amount in R &
D and developed a formula for manufacturing sugar-free beverages to give the customer value and quality.
They are pioneers and serve specific customer needs that are not met by other companies in the
industry. The new product has been accepted by a class of customers. Differentiated and unique
sugar- free beverages enable ABC Ltd. to charge relatively higher for its products, hence making higher
profits and maintaining its competitive position in the market.

Sugar free beverage of ABC Ltd. is being accepted widely by a class of customers. Differentiation
strategy is aimed at a broad mass market and involves the creation of a product or service that is
perceived by the customers as unique. The uniqueness can be associated with product design, brand
image, features, technology, and dealer network or customer service.

Achieving Differentiation Strategy

To achieve differentiation, following strategies are generally adopted by an organization:

a) Offer utility to the customers and match products with their tastes and preferences.
b) Elevate/Improve performance of the product.
c) Offer a high-quality product/service for buyer satisfaction.
d) Rapid product innovation to keep up with dynamic environment.
e) Taking steps to enhance brand image and brand value.
f) Fixing product prices based on the unique features of product and buying capacity of the
customer.

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Question 2 (RTP May 24)

There are four specific criteria of sustainable competitive advantage that firms can use to determine those
capabilities that are known as core competencies. Explain.
ANSWER:

Four specific criteria of sustainable competitive advantage that firms can use to determine those
capabilities that are core competencies. Capabilities that are valuable, rare, costly to imitate, and
non- substitutable are core competencies.

Valuable: Valuable capabilities are the ones that allow the firm to exploit opportunities or avert the
threats in its external environment. A firm created value for customers by effectively using
capabilities to exploit opportunities. Finance companies build a valuable competence in financial services.
In addition, to make such competencies as financial services highly successful requires placing the right
people in the right jobs. Human capital is important in creating value for customers.

Rare: Core competencies are very rare capabilities and very few of the competitors possess these.
Capabilities possessed by many rivals are unlikely to be sources of competitive advantage for any one
of them. Competitive advantage results only when firms develop and exploit valuable capabilities that
differ from those shared with competitors.

Costly to imitate: Costly to imitate means such capabilities that competing firms are unable to develop
easily.

Non-substitutable: Capabilities that do not have strategic equivalents are called non-substitutable
capabilities. This final criterion for a capability to be a source of competitive advantage is that there
must be no strategically equivalent valuable resources that are themselves either not rare or imitable.

Question 3 (RTP Sep 24)

Inspite of high commodity inflation, shortage of components and the threat of third wave of COVID-19
pandemic in India, manufacturers of packaged goods, home appliances and consumer electronics
are expecting the business to grow by 12 to 25 percent in the coming months. After one-and-a-half
years of disruption, manufacturers are now confident about managing their inventories better, keeping their
supply channels well-stocked and preparing themselves to minimalize the impact of any COVID related
restrictions even as they gear up for the festive season, which usually accounts for 25 to 35 percent of
their yearly sales.
The home appliances sector could be an example. After a dismal April- June quarter in the year 2021,
producers of air conditioners, refrigerators and washing machines are expecting their business to grow by 15-

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20 percent in the months to come. All the companies operating in the sector have geared up to grab
the opportunities available in the market.
A leading company in the home appliances domain, XXP India, is planning to launch various innovative
product designs and offer loyalty programmes to lure consumers.
With reference to Michael Porter’s generic strategies, identify which strategy XXP India has planner for?
Explain how this strategy will be advantageous to the company to remain profitable?

ANSWER:

According to Michael Porter, strategies allow organizations to gain competitive advantage from three
different bases: cost leadership, differentiation, and focus. Porter called these base generic
strategies.

XXP India Ltd. has planned for Differentiation Strategy. The company is planning to launch various
innovative product designs and offer loyalty programmes to lure customers.

Differentiation strategy should be pursued only after a careful study of buyers’ needs and preferences
to determine the feasibility of incorporating one or more differentiating features into a unique product
that features the desired attributes. A successful differentiation strategy allows a firm to charge a
higher price for its product and to gain customer loyalty, because consumers may become strongly
attached to the differentiated features.

Advantages of Differentiation Strategy

A differentiation strategy may help an organisation to remain profitable even with rivalry, new entrants,
suppliers’ power, substitute products, and buyers’ power.

i. Rivalry - Brand loyalty acts as a safeguard against competitors. It means that customers will be
less sensitive to price increases, as long as the firm can satisfy the needs of its customers.
ii. Buyers – They do not negotiate for price as they get special features, and they have fewer
options in the market.
iii. Suppliers – Because differentiators charge a premium price, they can afford to absorb higher
costs of supplies as the customers are willing to pay extra too.
iv. Entrants – Innovative features are an expensive offer. So, new entrants generally avoid these
features because it is tough for them to provide the same product with special features at a
comparable price.
v. Substitutes – Substitute products can’t replace differentiated products which have high brand
value and enjoy customer loyalty.

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Question 4 (RTP Sep 24)

How can Mendelow's Matrix be used to analyze and manage the stakeholders effectively?

ANSWER:

Mendelow's Matrix can be used effectively to analyze and manage stakeholders through a grid-based
approach by the following steps:

i. Identify Stakeholders: Begin by identifying all relevant stakeholders for your project or
organization. This includes individuals, groups, or organizations that may be impacted by or have
an impact on your activities.
ii. Assess Power and Interest: For each stakeholder, assess their power to influence your project
or organization and their level of interest in its success. Power can be assessed based on
factors such as authority, resources, and expertise, while interest can be gauged by their level of
involvement, expectations, and potential benefits or risks.
iii. Plot Stakeholders on the Grid: Create a grid with Power on one axis and Interest on the
other. Plot each stakeholder on the grid based on your assessment. Stakeholders with high power
and high interest are placed in the "Key Players" quadrant, those with high power but low interest
are in the "Keep Satisfied" quadrant, those with low power but high interest are in the "Keep
Informed" quadrant, and those with low power and low interest are in the "Low Priority"
quadrant.
iv. Develop Strategies for each Quadrant: Based on the placement of stakeholders in the grid,
develop specific strategies for managing each quadrant
 Key Players: Fully engage with these stakeholders, seek their input, and keep them informed.
They are crucial for the success of your project, so their needs and expectations should be
a top priority.
 Keep Satisfied: These stakeholders have significant power but may not be as interested in your
project. Keep them satisfied by providing regular updates and addressing any concerns they may
have to prevent them from becoming detractors.
 Keep Informed: While these stakeholders may not have much power, they are highly interested
in your project. Keep them informed to ensure they remain supportive and to leverage their
insights and feedback.
 Low Priority: These stakeholders have low power and interest. Monitor them for any changes
but allocate minimal resources to managing their expectations.
v. Monitor and Adapt: Continuously monitor the power and interest of stakeholders and adjust
your strategies accordingly. Stakeholders may move between quadrants based on changing
circumstances, so it's important to remain flexible and responsive.

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By using Mendelow's Matrix as a grid-based tool, you can effectively analyze and manage
stakeholders by tailoring your engagement strategies to their specific needs and expectations,
ultimately increasing the likelihood of project success.

Question 5 (RTP Jan 25)

ABC Corporation, a leading manufacturer of consumer electronics, is considering launching a new line of smart
home devices. As a strategic manager, conduct a SWOT analysis for ABC Corporation to assess the feasibility
and potential success of this new venture. Consider both internal and external factors that could impact
on the success of the new product line.
ANSWER:

SWOT Analysis for ABC Corporation's New Smart Home Devices Venture:

Strengths Weaknesses
Strong brand reputation in consumer Limited experience in the smart home
electronics. devices market.
Established distribution network. May require additional investments in research
and development.

Access to technological expertise for product Potential challenges in integrating a new product
development. line with existing offerings.

Financial resources to support product launch Lack of established customer base for smart
and marketing. home devices.

Opportunities Threats
Growing market for smart home devices due Intense competition from established players in
to increasing consumer interest in home the smart home devices market.
automation.

The possibility of partnering with existing Rapid technological advancements lead to short
smart home platform providers. product life cycles.

Potential to leverage brand loyalty from Potential for cybersecurity threats in

existing customers. connected devices.

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Ability to differentiate through innovative Economic factors impacting consumer spending on

features and design. discretionary items.

The SWOT analysis highlights that while ABC Corporation has several strengths that can support the
launch of a new smart home devices line, there are also significant weaknesses and threats to consider.
To maximize the chances of success, ABC Corporation should focus on leveraging its brand reputation and
distribution network while carefully addressing the weaknesses and threats identified. Additionally, being
informed about technological developments and consumer trends will be essential for maintaining
competitiveness in the dynamic smart home devices market.

Question 6 (RTP Jan 25)

What are channels? Why is channel analysis important? Explain the different types of channels?
ANSWER:

Channels represent the distribution system through which organizations distribute their products or
provide services to customers. They play a pivotal role in reaching target markets, maximizing sales,
and establishing competitive advantages.

Channel analysis is important when the business strategy is to scale up and expand beyond the current
geographies and markets. When a business plans to grow to newer markets, they need to develop or
leverage existing channels to get to new customers. Thus, analysis of channels that suit one’s products
and customers is of utmost importance.

There are typically three channels that should be considered: sales channel, product channel and
service channel.

 The sales channel - These are the intermediaries involved in selling the product through each
channel and ultimately to the end user. The key question is: Who needs to sell to whom for
your product to be sold to your end user? For example, many fashion designers use agencies to
sell their products to retail organizations, so that consumers can access them.
 The product channel - The product channel focuses on the series of intermediaries who
physically handle the product on its path from its producer to the end user. This is true of
Australia Post, who delivers and distributes many online purchases between the seller and
purchaser when using eBay and other online stores.
 The service channel - The service channel refers to the entities that provide necessary
services to support the product, as it moves through the sales channel and after purchase by
the end user. The service channel is an important consideration for products that are complex

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in terms of installation or customer assistance. For example, a Bosch dishwasher may be sold
in a Bosch showroom, and then once sold it is installed by a Bosch contracted plumber.

Question 7 (RTP May 25)

EliteWheels Ltd. is a luxury automobile manufacturer that caters to affluent customers seeking exclusivity
and high-end features. The company offers premium vehicles with cutting-edge technology, showed
customization options, and top-tier customer service. Unlike mass- market car brands, EliteWheels Ltd.
charges a significant premium for its automobiles, ensuring that only a niche segment of customers can
afford them. Additionally, the company invests heavily in advanced engineering and innovation to maintain its
superior quality and brand prestige. Identify and explain the strategy adopted by EliteWheels Ltd
ANSWER:

According to Michael Porter, competitive advantage can be derived from three generic strategies: cost
leadership, differentiation, and focus.

EliteWheels Ltd. targets a niche market segment by offering unique and high-value automobiles tailored
to the needs of affluent consumers. While the company manages its costs efficiently, it does not
compromise on the quality or exclusivity of its products. By maintaining superior craftsmanship, advanced
technology, and high personalization levels, the brand commands a premium price for its vehicles. Thus,
the strategy adopted by EliteWheels Ltd. is Focused Differentiation.

A focused differentiation strategy involves offering distinctive features that cater to a specific
market segment. Companies employing this strategy may target a specific customer demographic,
geographic region, or sales channel. Firms that compete based on uniqueness and focus on a specialized
market segment follow a Focused Differentiation Strategy.

Question 8 (RTP May 25)

Write short note on SWOT analysis.

ANSWER:

SWOT analysis is a tool used by organizations for evolving strategic options for the future. The term
SWOT refers to the analysis of strengths, weaknesses, opportunities and threats facing a company.
Strengths and weaknesses are identified in the internal environment, whereas opportunities and threats
are located in the external environment.

 Strength: Strength is an inherent capability of the organization which it can use to gain
strategic advantage over its competitor.
 Weakness: A weakness is an inherent limitation or constraint of the organisation which creates
strategic disadvantage to it.

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 Opportunity: An opportunity is a favourable condition in the external environment which

enables it to strengthen its position.
 Threat: An unfavourable condition in the external environment which causes a risk for, or
damage to the organisation’s position.

The major purpose of SWOT analysis is to enable the management to create a firm-specific business
model that will best align, fit or match organisational resources and capabilities to the demands of the
environment in which it operates.

Question 9 (MTP May 24)

Write a short note on Matrix Structure.

ANSWER:

In matrix structure, functional and product forms are combined simultaneously at the same level of the
organization. Employees have two superiors, a product / project manager and a functional manager.

The “home” department - that is, engineering, manufacturing, or marketing - is usually functional and is
reasonably permanent. People from these functional units are often assigned temporarily to one or more

product units or projects. The product units / projects are usually temporary and act like divisions

in that they are differentiated on a product-market basis. The matrix structure may be very appropriate
when organizations conclude that neither functional nor divisional forms, even when combined with

horizontal linking mechanisms like strategic business units, are right for the implementation of their
strategies. Matrix structure was developed to combine the stability of the functional structure with
flexibility of the product form. It is very useful when the external environment (especially its
technological and market aspects) is very complex and changeable.

A matrix structure is most complex of all designs because it depends upon both vertical and horizontal
flows of authority and communication.

It may result in higher overhead costs due to more management positions. The matrix structure is often
found in an organization when the following three conditions exist:

1. Ideas need to be cross-fertilized across projects or products;

2. Resources are scarce; and

3. Abilities to process information and to make decisions need to be improved.

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Question 10 (MTP May 24,Sep 24,Jan 25)

Major core competencies are identified in three areas – competitor differentiation, customer value and
application to other markets.Discuss.

ANSWER:

According to C.K. Prahalad and Gary Hamel, major core competencies are identified in three areas -
competitor differentiation, customer value, and application to other markets.

Competitor differentiation: The company can consider having a core competence if the competence is
unique and it is difficult for competitors to imitate. This can provide a company an edge compared to
competitors. It allows the company to provide better products or services to market with no fear that
competitors can copy it.

Customer value: When purchasing a product or service it has to deliver a fundamental benefit for the
end customer in order to be a core competence. It will include all the skills needed to provide fundamental
benefits. The service or the product has to have real impact on the customer as the reason to choose to
purchase them.

If customer has chosen the company without this impact, then competence is not a core competence.

Application of competencies to other markets: Core competence must be applicable to the whole
organization; it cannot be only one particular skill or specified area of expertise. Therefore,

although some special capability would be essential or crucial for the success of business activity, it will
not be considered as core competence, if it is not fundamental from the whole organization’s

point of view. Thus, a core competence is a unique set of skills and expertise, which will be used throughout
the organisation to open up potential markets to be exploited.

Question 11 (MTP May 24)

EasyLife Corporation, a leading manufacturer of consumer electronics, is considering launching a new line
of smart home devices. As a strategic manager, conduct a SWOT analysis for EasyLife Corporation to
assess the feasibility and potential success of this new venture. Consider both internal and external
factors that could impact the success of the new product line.

ANSWER:

SWOT Analysis for EasyLife Corporation’s New Smart Home Devices Venture:

Strengths Weaknesses

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Strong brand reputation in consumer Limited experience in the smart home

electronics. devices market.
Established distribution network. May require additional investments in research
and development.

Access to technological expertise for product Potential challenges in integrating a new product
development. line with existing offerings.

Financial resources to support product launch Lack of established customer base for smart
and marketing. home devices.

Opportunities Threats
Growing market for smart home devices due Intense competition from established players in
to increasing consumer interest in home the smart home devices market.
automation.

The possibility of partnering with existing Rapid technological advancements lead to short
smart home platform providers. product life cycles.

Potential to leverage brand loyalty from Potential for cybersecurity threats in

existing customers. connected devices.

Ability to differentiate through innovative Economic factors impacting consumer spending on

features and design. discretionary items.

The SWOT analysis highlights that while EasyLife Corporation has several strengths that can support
the launch of a new smart home devices line, there are also significant weaknesses and threats to
consider. To maximize the chances of success, EasyLife Corporation should focus on leveraging its brand
reputation and distribution network while carefully addressing the weaknesses and threats identified.

Additionally, staying informed about technological developments and consumer trends will be essential
for maintaining competitiveness in the dynamic smart home devices market.

Question 12 (MTP May 24, Jan 25)

Vikram Patel owns a chain of ten bookstores across the Mumbai region. Three of these stores were
launched in the past two years. He has always believed in strategic management and enjoyed robust sales
of books, magazines, and educational materials until about five years ago.

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However, with the increasing preference for online shopping, the sales at his physical stores have declined
by approximately sixty percent over the last five years. Analyze Vikram Patel's current position in light
of the limitations of strategic management.

ANSWER:

Vikram Patel is facing declining sales due to a significant shift of customers toward online platforms.
Although he employs strategic management tools, they cannot always overcome every obstacle or

guarantee success. The limitations of strategic management in Vikram’s situation include:

The environment in which strategies are developed is highly complex and unpredictable. The entry of
online bookstores, a new type of competitor, introduced a different dynamic to the book retail

industry. These online platforms, with their extensive reach and pricing power, have dominated the
market, posing a formidable challenge to traditional bookstores.

Another limitation of strategic management is the difficulty in forecasting future developments.

Despite his strategic management efforts, Vikram Patel did not anticipate the extent to

which online bookstores would impact his sales.

While strategic management is a time-consuming process, it is crucial for Vikram to continue managing
strategically. These challenging times demand increased effort and adaptability on his part.

Strategic management can be costly. Vikram Patel might consider hiring experts to understand customer
preferences better and adjust his strategies to offer more personalized services. These

customized offerings could be difficult for online stores to replicate, giving him a competitive edge.

The bookstores owned by Vikram Patel are much smaller in scale compared to online stores. This makes
it challenging for him to predict how online platforms will manoeuvre strategically.

Question 13 (MTP Jan 25)

You are a strategic manager for a tech company launching a new smartphone model. The company wants
to target tech-savvy consumers who value innovation and cutting-edge technology. Using the concept of

customer behavior, develop a marketing strategy to promote the new smartphone.

ANSWER:

To target tech-savvy consumers for the new smartphone model, the tech company can develop a marketing
strategy based on customer behavior.

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Consumer behaviour may be influenced by a number of things. These elements can be categorised into the
following conceptual domains:

• External Influences: Utilize online platforms and tech forums to generate buzz around the new
smartphone. Partner with tech influencers and bloggers to review the product and create awareness

among tech-savvy consumers.

• Internal Influences: Appeal to the desire for innovation and advanced features among tech-savvy
consumers. Highlight the unique selling points of the new smartphone, such as its cutting-edge

technology, performance, and design.

• Decision Making: Recognize that tech-savvy consumers are early adopters who value functionality and
performance. Provide detailed specifications and comparisons with other smartphones to help them

make an informed decision.

Post-decision Processes: Offer excellent customer service and support to address any technical issues
or concerns. Encourage customers to provide feedback and reviews to build credibility and

trust among tech-savvy consumers.

By understanding the behavior of tech-savvy consumers and aligning the marketing strategy with their
preferences, the tech company can effectively promote the new smartphone and attract this
demographic.

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Question 1 RTP May 24

XYZ Corporation is a multinational conglomerate operating in various industries. They have a diverse
portfolio of businesses, including a leading consumer electronics division, a growing e-commerce
platform, a mature industrial machinery division, and a newly established software development unit.
Which division of XYZ Corporation would most likely be classified as a "Star" in the BCG Growth-
Share Matrix?

ANSWER :

In the BCG Growth-Share Matrix, divisions or business units are classified into four categories: Stars,
Cash Cows, Question Marks, and Dogs. These classifications are based on a combination of market share
and market growth rate.

A "Star" in the BCG Matrix represents a business unit with a high market share in a high-growth market.
In the scenario, the newly established software development unit would be classified as a "Star." The
software development unit is described as "newly established," suggesting that it is operating in a high-
growth market. Additionally, the potential for high market share can be inferred if the unit is
strategically positioned to become a leader in the software development industry.

Stars typically require significant investment to fuel their growth, but they have the potential to become
future Cash Cows as the market matures. Therefore, the software development unit's high growth
potential and the opportunity to capture a substantial market share align with the characteristics of a
BCG Matrix "Star."

Question 2 RTP May 24

Justify the statement "Stability strategy is opposite of Expansion strategy".

ANSWER :

Stability Strategies, as the name suggests, are intended to safeguard the existing interests and
strengths of business. It involves organisations pursuing established and tested objectives, continue on
the chosen path, maintaining operational efficiency and so on. A stability strategy is pursued when a firm
continues to serve in the same or similar markets and deals in the same products and services. In stability

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strategy, few functional changes are made in the products or markets, however, it is not a ‘do nothing’
strategy. This strategy is typical for mature business organizations. Some small organizations also
frequently use stability as a strategic focus to maintain comfortable market or profit position.

On the other hand, expansion strategy is an aggressive strategy as it involves redefining the business by
adding the scope of business substantially, increasing the efforts of the current business. In this sense,
it becomes the opposite to stability strategy. Expansion is a promising and popular strategy that tends to
be equated with dynamism, vigor, promise and success. Expansion also includes diversifying, acquiring and
merging businesses. This strategy may take the enterprise along relatively unknown and risky paths, full
of promises and pitfalls.

Question 3 RTP Sept 24

Pizza Galleria was India's first pizza delivery chain enjoying monopoly for several years. However,
after the entry of Modino and Uncle Jack it is struggling to compete. Both Modino and Uncle Jack
have opened several eateries and priced the product aggressively. In the last four years the chain
has suffered significant losses. The chain wishes to know whether they should go for a turnaround
strategy. List out components of action plan for turnaround strategy.

ANSWER :

Pizza Chain may choose to have turnaround strategy if there are:

• Persistent negative cash flow from business.

• Uncompetitive products or services.
• Declining market share.
• Deterioration in physical facilities.
• Over-staffing, high turnover of employees, and low morale.
• Mismanagement.

For turnaround strategies to be successful, it is imperative to focus on the short and long-term financing
needs as well as on strategic issues. The chain may attempt to leverage the potential Indian market by
engaging a new logistics partner. It may bring innovation in food items, as well as quality and improvements
in the overall dine-in and delivery experience. During the turnaround, the “product mix” may be changed,
requiring the organization to do some repositioning

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A workable action plan for turnaround would involve:

Stage One – Assessment of current problems: The first step is to assess the current problems and get
to the root causes and the extent of damage the problem has caused.

Stage Two – Analyze the situation and develop a strategic plan: Before making any major changes;
determine the chances of the business’s survival. Identify appropriate strategies and develop a
preliminary action plan.

Stage Three – Implementing an emergency action plan: If the organization is in a critical stage, an
appropriate action plan must be developed to stop the bleeding and enable the organization to survive. A
positive operating cash flow must be established as quickly as possible and enough funds to implement the
turnaround strategies must be raised.

Stage Four – Restructuring the business: The financial state of the organization’s core business is
particularly important. If the core business is irreparably damaged, then the outlook for the entire
organization may be bleak. Efforts to be made to position the organization for rapid improvement.

Stage Five – Returning to normal: In the final stage of turnaround strategy process, the organization
should begin to show signs of profitability, return on investments and enhancing economic value-added.
Emphasis is placed on a number of strategic efforts such as carefully adding new products and improving
customer service, creating alliances with other organizations, increasing the market share, etc.

Question 4 RTP Sept 24

Distinguish between Concentric Diversification and Conglomerate Diversification. ".

ANSWER :

The following are the principal points of distinction between concentric diversification and conglomerate
diversification :

i. Concentric diversification occurs when a firm adds related products or markets. On the other
hand, conglomerate diversification occurs when a firm diversifies into areas that are unrelated to
its current line of business.
ii. In concentric diversification, the new business is linked to the existing businesses through
process, technology or marketing. In conglomerate diversification, no such linkages exist; the new
business/product is disjointed from the existing businesses/ products.

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iii. The most common reasons for pursuing concentric diversification are that opportunities in a firm’s
existing line of business are available. However, common reasons for pursuing a conglomerate
growth strategy are that opportunities in a firm's current line of business are limited or
opportunities outside are highly lucrative.

Question 5 RTP Jan 25

InnovaTech, a technology company with a range of business units, is assessing its investment
opportunities. To allocate resources effectively, InnovaTech uses a matrix that evaluates each
business unit based on two key factors: industry attractiveness and business unit strength. For
example, the AI solutions division, positioned in a highly attractive industry with a strong competitive
edge, receives a "go ahead" for further investment. In contrast, its legacy software division,
operating in a less attractive industry with a weaker position, receives a "be careful" rating,
suggesting limited investment. Identify and explain which analytical tool InnovaTech is using for this
evaluation

ANSWER :

InnovaTech is using the GE Matrix, a strategic tool designed to assess the resource allocation needs of
different business units based on two factors: industry attractiveness and business unit strength. This
matrix is a nine-cell grid that helps companies prioritize investments by categorizing units into “grow,”
“hold,” or “harvest” zones, depending on their positions within the matrix.

For InnovaTech, the AI solutions division, which operates in a highly attractive industry with a strong
competitive position, falls into the “grow” category, meriting further investment. Meanwhile, the legacy
software division operates in a less attractive industry with weaker positioning, likely placing it in the
“harvest” or “hold” category, where investments are minimized.

The GE Matrix enables companies like InnovaTech to systematically evaluate each business unit’s
potential, optimize resource allocation, and focus on divisions that align with long-term growth and
profitability goals.

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Question 6 RTP Jan 25

What do you understand by Strategic Alliance? Discuss its advantages.

ANSWER :

A strategic alliance is a relationship between two or more businesses that enables each to achieve certain
strategic objectives which neither would be able to achieve on its own. The strategic partners maintain
their status as independent and separate entities, share the benefits and control over the partnership,
and continue to make contributions to the alliance until it is terminated. The advantages of strategic
alliance can be broadly categorised as follows:

a) Organizational: Strategic alliance helps to learn necessary skills and obtain certain capabilities
from strategic partners. Strategic partners may also help to enhance productive capacity, provide
a distribution system, or extend supply chain.
b) Economic: There can be reduction in costs and risks by distributing them across the members of
the alliance. Greater economies of scale can be obtained in an alliance, as production volume can
increase, causing the cost per unit to decline. The partners can also take advantage of co-
specialization, creating additional value.
c) Strategic: Rivals can join together to cooperate instead of competing. Strategic alliances may
also be useful to create a competitive advantage by the pooling of resources and skills. This may
also help with future business opportunities and the development of new products and technologies.
Strategic alliances may also be used to get access to new technologies or to pursue joint research
and development.
d) Political: Sometimes strategic alliances are formed with a local foreign business to gain entry into
a foreign market either because of local prejudices or legal barriers to entry.

Question 7 RTP May 25

Jynklo Ltd. is an established online children gaming company in Japan. They are performing good in
the gaming industry. The management of Jynklo Ltd. has decided to expand its business. They
decided to start a premium sports drink named JynX for athletes. Identify and explain the growth
strategy adopted by Jynklo Ltd.?

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ANSWER :

Currently Jynklo Ltd. is performing in the children’s gaming industry. But now its management has decided
to expand their business by starting a premium sports drink named JynX for athletes. As there are no
links to both products with respect to customer groups, customer functions, or the technologies being
used, Jynklo Ltd. have opted Conglomerate diversification.

Jynklo Ltd. diversifies in a business that is not related to their existing line of products and can be
termed as conglomerate diversification. In conglomerate diversification, the new businesses/ products
are disjointed from the existing businesses/products in every way; it is an unrelated diversification. In
process/ technology/ function, there is no connection between the new products and the existing ones.
Conglomerate diversification has no common threat at all with the firm's present position.

Question 8 RTP May 25

Write a short note on the role of ADL Matrix in assessing the competitive position of a firm.

ANSWER :

The ADL matrix has derived its name from Arthur D. Little which is a portfolio analysis method based on
product life cycle. The approach forms a two-dimensional matrix based on stage of industry maturity and
the firm’s competitive position, environmental assessment and business strength assessment. The role of
ADL matrix is to assess the competitive position of a firm based on an assessment of the following
criteria:

a) Dominant: This is a comparatively rare position and in many cases is attributable either to a
monopoly or a strong and protected technological leadership.
b) Strong: By virtue of this position, the firm has a considerable degree of freedom over its choice
of strategies and is often able to act without its market position being unduly threatened by its
competitors.
c) Favourable: This position, which generally comes about when the industry is fragmented and no
one competitor stand out clearly, results in the market leaders a reasonable degree of freedom.
d) Tenable: Although the firms within this category are able to perform satisfactorily and can
justify staying in the industry, they are generally vulnerable in the face of increased competition
from stronger and more proactive companies in the market.

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e) Weak: The performance of firms in this category is generally unsatisfactory although the
opportunities for improvement do exist.

Question 9 MTP May 24

Imagine you are a strategic consultant advising a retail company that is facing increasing competition
from online retailers. The company is considering several strategic options to improve its market
position. Using the concept that strategy is partly proactive and partly reactive, explain how the
company can develop a strategic approach to address this challenge.

ANSWER :

The retail company can develop a strategic approach that is both proactive and reactive to address the
challenge of increasing competition from online retailers. To achieve this, the company can:

• Proactive Strategy: The company can proactively analyze market trends and customer
preferences to identify opportunities for growth. For example, it can invest in market research to
understand what customers value in a retail experience and tailor its offerings to meet those
needs. This proactive approach can help the company stay ahead of competitors and attract new
customers.
• Reactive Strategy: In addition to proactive measures, the company should also be prepared to
react to changes in the market environment. For example, if a competitor launches a new online
shopping platform, the company should quickly assess the impact on its business and develop a
response. This reactive strategy can help the company adapt to changing market conditions and
maintain its competitiveness.
By combining proactive and reactive strategies, the retail company can develop a comprehensive approach
to addressing the challenge of increasing competition from online retailers. This approach will allow the
company to capitalize on opportunities for growth while also mitigating risks and responding to threats in
the market.

Question 10 MTP May 24

The CEO of a textile mill believes that his company, currently operating at a loss, can be turned
around. Develop an action plan outlining steps the CEO can take to achieve this turnaround.

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ANSWER :

A workable action plan for turnaround of the textile mill would involve:

• Stage One – Assessment of current problems: In the first step, assess the current problems
and get to the root causes and the extent of damage.
• Stage Two – Analyze the situation and develop a strategic plan: Identify major problems and
opportunities, develop a strategic plan with specific goals and detailed functional actions after
analyzing strengths and weaknesses in the areas of competitive position.
• Stage Three – Implementing an emergency action plan: If the organization is in a critical stage,
an appropriate action plan must be developed to stop the bleeding and enable the organization to
survive.
• Stage Four – Restructuring the business: If the core business is irreparably damaged, then the
outlook for the entire organization may be bleak. Efforts to be made to position the organization
for rapid improvement.
• Stage Five – Returning to normal: In the final stage of turnaround strategy process, the
organization should begin to show signs of profitability, return on investments and enhancing
economic value- added.

Question 11 MTP May 24

Distinguish between Concentric Diversification and Conglomerate Diversification.

ANSWER :

The following are the principal points of distinction between concentric diversification and conglomerate
diversification:

i. Concentric diversification occurs when a firm adds related products or markets. On the other
hand, conglomerate diversification occurs when a firm diversifies into areas that are unrelated to
its current line of business.
ii. In concentric diversification, the new business is linked to the existing businesses through
process, technology or marketing. In conglomerate diversification, no such linkages exist; the new
business/product is disjointed from the existing businesses/products.
iii. The most common reasons for pursuing concentric diversification are that opportunities in a firm’s
existing line of business are available. However, common reasons for pursuing a conglomerate

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growth strategy are that opportunities in a firm's current line of business are limited or
opportunities outside are highly lucrative.

Question 12 MTP May 24

ABC retail chain regularly monitors consumer trends and supply chain flexibility. The retail chain
tracks consumer trends to adjust its offerings, ensuring they meet customer needs. Simultaneously,
it maintains a flexible supply chain to respond swiftly to demand fluctuations. This strategy enables
ABC retail chain to anticipate market shifts and adapt to them effectively, ensuring its
competitiveness and customer satisfaction. Which type of strategy is the retail chain employing?

ANSWER :
The retail chain is employing a strategy that combines both proactive and reactive elements. Monitoring
consumer trends and adjusting product offerings accordingly demonstrates a proactive approach to
anticipate and meet customer needs. On the other hand, maintaining a flexible supply chain to respond
quickly to changes in demand reflects a reactive strategy to address unforeseen shifts in the market.

This combination allows the retail chain to both anticipate future trends and react effectively to
immediate market changes, making its strategy partly proactive and partly reactive. This dual strategy
of proactive trend monitoring and reactive supply chain flexibility enables the retail chain to anticipate
market shifts and adapt to them effectively, ensuring its competitiveness and customer satisfaction.

Question 13 MTP May 24

Reshuffle Corp is a company that manufactures and sells office furniture.They offer a range of
products, from desks and chairs to cabinets and shelves. Recently, the company has been facing
increased competition from online retailers offering similar products at lower prices.
Analyzing the characteristics of products in the furniture industry, discuss how Reshuffle Corp can
differentiate its products to maintain a competitive edge in the market.

ANSWER :

To maintain a competitive edge in the face of increased competition, Reshuffle Corp can differentiate
its products in several ways:

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• Tangible and Intangible Aspects: Reshuffle Corp can focus on the tangible aspects of its
products, such as using high-quality materials and innovative designs to create furniture that is
both functional and aesthetically pleasing. Additionally, they can emphasize the intangible aspects
of their products, such as excellent customer service and a strong brand reputation for reliability
and durability.
• Pricing Strategies: While market prices are often dictated by competition, Reshuffle Corp can
work on cost optimization to maintain profitability. They can also consider offering value-added
services, such as free installation or extended warranties, to justify a higher price point.
• Product Features: By continually optimizing their product features based on customer feedback
and market trends, Reshuffle Corp can ensure that their products deliver maximum satisfaction
to their target customers. This may include features that enhance functionality, design, quality,
and overall user experience.
• Product Centric Approach: Reshuffle Corp should keep their products at the center of their
strategic activities, ensuring that all business processes, from production to sales and marketing,
are aligned to meet customer needs and expectations
• .Product Life Cycle Management: Reshuffle Corp should be aware of the life cycle of their
products and plan for reinvention or replacement accordingly. They can introduce new product lines
or upgrade existing ones to keep up with changing customer preferences and market trends.

Question 14 MTP May 24

StarTech Solutions, an aerospace technology firm, operates in a highly competitive industry. Despite
the fierce competition in the aerospace sector, StarTech has carved out a niche for itself by
focusing on serving unique, high-end clients. Unlike its competitors, StarTech has chosen not to
diversify its target market and instead specializes in providing cutting-edge solutions to this niche
market. Identify and explain the strategy adopted by StarTech Solutions. Discuss the advantages
and disadvantages of this strategy.

ANSWER :

The strategy adopted by StarTech Solutions is Focused differentiation. This strategy involves targeting
a specific segment of the market with unique products or services that are perceived as valuable by
customers in that segment. By specializing in serving unique, high-end clients, StarTech is able to
differentiate itself from competitors and create a competitive advantage.

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Advantages of Focused Differentiation:

• Strong Customer Loyalty: By catering to a specific niche market, StarTech can build strong
relationships with its customers, leading to higher customer loyalty and retention.
• Higher Profit Margins: Serving a niche market allows StarTech to command higher prices for its
specialized products or services, leading to higher profit margins.
• Reduced Competition: By focusing on a niche market that other firms are not targeting, StarTech
faces less competition, allowing it to establish itself as a leader in that segment.
• Better Resource Allocation: Focusing on a specific market segment allows StarTech to allocate its
resources more efficiently, concentrating on areas that will provide the greatest return on
investment.

Disadvantages of Focused Differentiation:

• Limited Market Size: The niche market that StarTech is targeting may be limited in size,
restricting the company's potential for growth.
• Risk of Market Changes: Changes in the market or customer preferences could impact on the
demand for StarTech's specialized products or services, leading to potential revenue loss.
• Higher Costs: Serving a niche market may require specialized resources and expertise, leading to
higher costs of operation.
• Imitation by Competitors: If StarTech's success in the niche market attracts competitors, they
may attempt to imitate its strategy, eroding its competitive advantage.

Overall, the focused differentiation strategy adopted by StarTech Solutions has allowed it to
differentiate itself in a competitive industry and build a strong position in the market. However, the
company must be aware of the potential challenges and risks associated with this strategy and continue
to innovate and adapt to maintain its competitive edge.

Question 15 MTP May 24

Strategic alliances are formed if they provide an advantage to all the parties in the alliance. Do
you agree? Explain in brief the advantages of a strategic alliance.

ANSWER :

Strategic alliances are formed if they provide an advantage to all the parties in the alliance. These
advantages can be broadly categorised as follows:

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i. Organizational: Strategic alliances may be formed to learn necessary skills and obtain certain
capabilities from the strategic partner. Strategic partners may also help to enhance productive
capacity, provide a distribution system, or extend supply chain. A strategic partner may provide a
good or service that complements each other, thereby creating a synergy. If one partner is
relatively new or untried in a certain industry, having a strategic partner who is well-known and
respected will help add legitimacy and creditability to the venture.
ii. Economic: Alliances can reduce costs and risks by distributing them across the members of the
alliance. Partners can obtain greater economies of scale in an alliance, as production volume
increase, causing the cost per unit to decline. Finally, partners can take advantage of co-
specialization, where specializations are bundled together, creating additional value.
iii. Strategic: Organizations may join to cooperate instead of compete. Alliances may also create
vertical integration where partners are part of supply chain. Strategic alliances may also be useful
to create a competitive advantage by the pooling of resources and skills. This may also help with
future business opportunities and the development of new products and technologies. Strategic
alliancesmay also be used to get access to new technologies or to pursue joint research and
development.
iv. Political: Sometimes there is need to form a strategic alliance with a local foreign business to gain
entry into a foreign market either because of local prejudices or legal barriers to entry. Forming
strategic alliances with politically-influential partners may also help improve overall influence and
position.

Question 16 MTP Sept 24

Orion Tech Solutions Pvt. Ltd. is renowned for its ability to launch groundbreaking software products.
Despite the relaxed and casual work environment at Orion, there is a strong commitment to meeting
deadlines. Employees at Orion believe in the "work hard, play hard" ethic. The company has shifted
from a formal, hierarchical structure to a more results-oriented approach. Employees are deeply
committed to the company’s strategies and work diligently to achieve them. They safeguard
innovations and maintain strict confidentiality and secrecy in their operations. Their work culture is
closely aligned with the organization's values, practices, and norms. What aspects of an organization
are being discussed? Explain.
ANSWER :

The scenario being referred to is the organizational culture at Orion Tech Solutions Pvt. Ltd. A strong
culture encourages effective strategy execution when there is alignment and drives performance even

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when there is minimal alignment. A culture rooted in values, practices, and behavioural norms that align
with the requirements for successful strategy execution energizes employees across the organization to
perform their roles in a manner that supports the strategy. Orion's culture, built around principles such
as listening to customers, encouraging employees to take pride in their work, and providing a high degree
of decision-making autonomy, is highly conducive to successfully executing a strategy focused on
delivering superior software solutions.

A strong strategy-supportive culture at Orion makes employees feel genuinely better about their jobs,
work environment, and the organization's goals. It motivates them to embrace the challenge of realizing
the company’s vision, perform their duties competently and enthusiastically, and collaborate effectively
with others.

Question 17 MTP Sept 24

Analyze the role of Key Success Factors (KSFs) in determining competitive success within an industry.

ANSWER :

As industry’s Key Success Factors (KSFs) are those things that most affect industry members’ ability to
prosper in the marketplace – the particular strategy elements, product attributes, resources,
competencies, competitive capabilities and business outcomes that spell the difference between profit &
loss and ultimately, between competitive success or failure. KSFs by their very nature are so important
that all firms in the industry must pay close attention to them. They are the prerequisites for industry
success, or, to put it in another way, KSFs are the rules that shape whether a company will be financially
and competitively successful.

Question 18 MTP Sept 24

TechNova, a leading software development firm known for its cutting-edge operating systems, is
developing a groundbreaking new platform. ElectroWave, an emerging player in the electronics and
hardware industry, specializes in manufacturing advanced devices. TechNova and ElectroWave have
decided to join forces to design innovative laptops and smartphones, aiming to tap into new markets
and broaden their business horizons. What kind of external growth strategy is being considered by
TechNova and ElectroWave?

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ANSWER :

The collaboration between TechNova, a software development firm, and ElectroWave, an electronics and
hardware manufacturing company, represents a co-generic merger. This type of external growth strategy
involves the merger of companies from related but non-competing industries, allowing them to leverage
complementary strengths and diversify their product offerings.

TechNova specializes in creating cutting-edge software, while ElectroWave focuses on manufacturing

advanced electronic devices. By joining forces, they can combine their expertise to design innovative
laptops and smartphones, creating products that neither company could have developed as effectively on
their own. This strategic partnership allows them to enter new markets, enhance their competitive
advantage, and explore synergies between software and hardware.

The co-generic merger provides significant opportunities for both companies to capitalize on shared
technologies, streamline their operations, and expand their customer base. It is a strategic move that
enables them to diversify while maintaining a strong focus on their core competencies, ultimately helping
them to grow and compete more effectively in the global market.

Question 19 MTP Sept 24

Which strategy is implemented by redefining the business, by enlarging its scope of business and
substantially increasing investment in the business? Explain the major reasons for adopting this
strategy.

ANSWER :

The strategy in question is the growth/expansion strategy.

The Growth/Expansion strategy involves redefining the business, expanding its scope, and significantly
increasing investments. This dynamic and vigorous approach is synonymous with promise and success. It
entails a substantial reformulation of goals, major initiatives, and strategic moves, including investments,
exploration into new products, technologies, and markets, and innovative decision-making. While promising
growth, this strategy navigates the enterprise through relatively unknown and risky paths, rich with
potential but also pitfalls.

Major Reasons for Adopting Growth/Expansion Strategy:

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• It may become imperative when environment demands increase in pace of activity.

• Strategists may feel more satisfied with the prospects of growth from expansion; chief
executives may take pride in presiding over organizations perceived to be growth-oriented.
• Expansion may lead to greater control over the market vis-à-vis competitors.
• Advantages from the experience curve and scale of operations may accrue.
• Expansion also includes intensifying, diversifying, acquiring and merging businesses.

Question 20 MTP Jan 25

You are a strategic manager for a tech company launching a new smartphone model. The company
wants to target tech-savvy consumers who value innovation and cutting-edge technology. Using the
concept of customer behavior, develop a marketing strategy to promote the new smartphone.

ANSWER :

To target tech-savvy consumers for the new smartphone model, the tech company can develop a marketing
strategy based on customer behavior. Consumer behaviour may be influenced by a number of things. These
elements can be categorised into the following conceptual domains:

• External Influences: Utilize online platforms and tech forums to generate buzz around the new
smartphone. Partner with tech influencers and bloggers to review the product and create
awareness among tech-savvy consumers.
• Internal Influences: Appeal to the desire for innovation and advanced features among tech-savvy
consumers. Highlight the unique selling points of the new smartphone, such as its cutting-edge
technology, performance, and design.
• Decision Making: Recognize that tech-savvy consumers are early adopters who value functionality
and performance. Provide detailed specifications and comparisons with other smartphones to help
them make an informed decision.
• Post-decision Processes: Offer excellent customer service and support to address any technical
issues or concerns. Encourage customers to provide feedback and reviews to build credibility and
trust among tech-savvy consumers.
By understanding the behavior of tech-savvy consumers and aligning the marketing strategy with their
preferences, the tech company can effectively promote the new smartphone and attract this
demographic.

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Question 21 MTP Jan 25

Explain in brief the various basis of differentiation strategies.

ANSWER :

There are several basis of differentiation, major being: Product, Pricing and Organization.

Product: Innovative products that meet customer needs can be an area where a company has an advantage
over competitors. However, the pursuit of a new product offering can be costly – research and
development, as well as production and marketing costs can all add to the cost of production and
distribution. The payoff, however, can be great as customers’ flocks are among the first to have the new
product.

Pricing: It fluctuates based on its supply and demand and may also be influenced by the customer’s ideal
value for a product. Companies that differentiate based on product price can either determine to offer
the lowest price or can attempt to establish superiority through higher prices.

Organisation: Organisational differentiation is yet another form of differentiation. Maximizing the

power of a brand or using the specific advantages that an organization possesses can be instrumental to
a company’s success. Location advantage, name recognition and customer loyalty can all provide additional
ways for a company to differentiate itself from the competition.

Question 22 MTP Jan 25

Leatherite Ltd. was started as a leather company to manufacture footwear. Currently, they are in
the manufacturing of footwears for males and females. The top management desires to expand the
business in leather manufacturing goods. To expand they decided to purchase more machines to
manufacture leather bags for males and females. Identify and explain the strategy opted by the
top management of Leatherite Ltd.

ANSWER :

Leatherite Ltd. is currently manufacturing footwears for males and females and its top management has
decided to expand its business by manufacturing leather bags for males and females. Both the products
are similar in nature within the same industry. The strategic diversification that the top management of

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Leatherite Ltd. has opted for is concentric in nature. They were in business manufacturing leather
footwear and now they will manufacture leather bags as well. They will be able to use existing
infrastructure and distribution channels. Concentric diversification amounts to related diversification.

In concentric diversification, the new business is linked to the existing businesses through process,
technology or marketing. The new product is a spin-off from the existing facilities and
products/processes. This means that in concentric diversification too, there are benefits of synergy with
the current operations.

Question 23 MTP Jan 25

A business consultancy firm focuses on providing specialized services in environmental management

consultancy. It assists client companies in establishing robust environmental management accounting
systems for the measurement, recording, and analysis of environmental costs. A significant portion
of the firm’s operations involve conducting environmental audits to verify compliance with international
assurance standards in environmental management—an exclusive service not offered by its
competitors. While the firm also undertakes other management consultancy projects, these
constitute only a minor share of its total annual revenue. Identify the strategy categories by Michael
Porter which best describes the strategy of this firm.

ANSWER :

By concentrating primarily on the market for consultancy services in environmental management, the firm
is pursuing a focus strategy. Its provision of audit services, which rival firms do not offer, highlights a
differentiation strategy within this specific market niche. Therefore, the firm is following a focused
differentiation strategy. A focused differentiation strategy involves offering unique features that cater
to the specific needs of a narrow market segment. As with the focused low-cost strategy, narrow markets
can be defined differently depending on the context. For instance, some firms using this strategy focus
on a particular sales channel, such as exclusively selling online, while others may target specific
demographic groups. Firms that compete on uniqueness while addressing the needs of a narrow market
exemplify the focused differentiation strategy.

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Question 24 MTP Jan 25

Rohit Patel has a small chemist shop in the central part of Ahmedabad. What kind of competencies
Rohit can build to gain competitive advantage over online medicine sellers?

ANSWER :

Capabilities that are valuable, rare, costly to imitate, and non-substitutable are core competencies. A
small chemist shop has a local presence and functions within a limited geographical area. Still, it can build
its own competencies to gain competitive advantage. Rohit Patel can build competencies in the areas of:

(i) Developing personal and cordial relations with the customers.

(ii) Providing home delivery with no additional cost.

(iii) Developing a system of speedy delivery that can be difficult to

match by online sellers. Being in the central part of the city, he can

create a network to supply at wider locations in the city.

(iv) Having extended working hours for convenience of buyers. Providing easy credit or a system of
monthly payments to the patients consuming regular medicines.

Question 25 MTP Jan 25

Strategic alliances are formed if they provide an advantage to all the parties in the alliance. Do
you agree? Explain in brief the advantages of a strategic alliance.

ANSWER :

Strategic alliances are formed if they provide an advantage to all the parties in the alliance. These
advantages can be broadly categorised as follows:

i. Organizational: Strategic alliances may be formed to learn necessary skills and obtain certain
capabilities from the strategic partner. Strategic partners may also help to enhance productive
capacity, provide a distribution system, or extend supply chain. A strategic partner may provide a
good or service that complements each other, thereby creating a synergy. If one partner is

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relatively new or untried in a certain industry, having a strategic partner who is well-known and
respected will help add legitimacy and creditability to the venture.
ii. Economic: Alliances can reduce costs and risks by distributing them across the members of the
alliance. Partners can obtain greater economies of scale in an alliance, as production volume
increases, causing the cost per unit to decline. Finally, partners can take advantage of co-
specialization, where specializations are bundled together, creating additional value.
iii. Strategic: Organizations may join to cooperate instead of competing. Alliances may also create
vertical integration where partners are part of the supply chain. Strategic alliances may also be
useful to create a competitive advantage by the pooling of resources and skills. This may also help
with future business opportunities and the development of new products and technologies.
Strategic alliances may also be used to get access to new technologies or to pursue joint research
and development.
iv. Political: Sometimes there is need to form a strategic alliance with a local foreign business to gain
entry into a foreign market either because of local prejudices or legal barriers to entry. Forming
strategic alliances with politically influential partners may also help improve overall influence and
position.

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CHAPTER 5 - Strategy Implementation and Evaluation

Question 1 RTP (MAY 24)

York Investors, recognizing the importance of aligning its organizational elements with strategic objectives,
has strategically invested in training programs, technology, and communication systems. The company aims
to enhance the skills and capabilities of its workforce through comprehensive training initiatives.
Simultaneously, York Investors leverages cutting-edge technology to streamline its operations and improve
overall efficiency. The investment in communication systems ensures seamless collaboration and information
flow across various departments. Identify and explain the model used by York Investors to achieve its strategic
objectives.

ANSWER :

York Investors is employing the McKinsey 7S Model to achieve its strategic objectives. The model
focuses on seven interdependent elements within an organization, categorized into "Hard Ss" and
"Soft Ss." In this case:

Strategy (Hard S): Investing in training programs and technology aligns with the strategic objective of
enhancing workforce skills and operational efficiency.

Structure (Hard S): The investment suggests a structural alignment to support the strategic initiatives,
indicating a deliberate organization of resources.

Systems (Hard S): The use of cutting-edge technology and communication systems reflects a
commitment to optimizing daily tasks and improving overall efficiency, addressing the system component
of the model.

Shared Values (Soft S): The emphasis on comprehensive training initiatives indicates a commitment to
shared values, reflecting a focus on developing a skilled and capable workforce.

Style (Soft S): The leadership style is implied in the strategic decision to invest in technology and
training for workforce development and operational efficiency.

Staff (Soft S): The commitment to enhancing skills and capabilities reflects a focus on the talent pool
within the organization.

Skills (Soft S): The strategic investment in training programs directly addresses the development of
key skills within the workforce.

York Investors' approach demonstrates a holistic application of the McKinsey 7S Model, emphasizing
the interconnectedness of both hard and soft elements to achieve strategic alignment and organizational
effectiveness.

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Question 2 RTP (MAY 24)

Why is change management crucial during digital transformation, and what are some key strategies for
navigating change effectively?

ANSWER :
Change management is essential during digital transformation to ensure the success of the process.
Here are some key strategies to navigate change effectively:
Specify the digital transformation's aims and objectives: Clearly defining the intended outcomes and
objectives helps ensure everyone is aligned and working towards the same goals.

Always communicate: Regular and transparent communication is crucial to help people understand the
goals of digital transformation and how it will impact various stakeholders, including employees, clients,
and other parties.

Be ready for resistance: Change, even if beneficial, can be met with resistance. Having a strategy in
place to address resistance is important for overcoming challenges and ensuring a smooth transition.

Implement changes gradually: Instead of making all changes at once, gradual implementation allows
individuals to adapt to new ways of doing things without feeling overwhelmed by too much change
simultaneously.

Offer assistance and training: Providing support, guidance, and training for employees is crucial as they
navigate new procedures, software applications, and other aspects of digital transformation.

In conclusion, meticulous planning and effective change management are vital for the successful
completion of digital transformation projects. Without proper change management, these efforts are
more likely to fail, and organizations can enhance the integration of new digital systems by anticipating
and managing the necessary changes.

Question 3 RTP (SEP 24)

A Mumbai-based conglomerate, PQR Ltd., has announced a major restructuring of its business operations.
The company has decided to split its business into four separate units: Manufacturing, Retail, Services, and
Technology. Each unit will operate as a separate business, with delegated responsibility for day-to-day
operations and strategy to the respective unit managers. Identify the organization structure that PQR
Ltd. has planned to implement. Discuss any four attributes and the benefits the firm may derive by
using this organization structure.

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ANSWER :

PQR Ltd. has planned to implement the Strategic Business Unit (SBU) structure. Very large
organisations, particularly those running into several products, or operating at distant

geographical locations that are extremely diverse in terms of environmental factors, can be better
managed by creating strategic business units. SBU structure becomes imperative in an organisation with
increase in number, size and diversity.

The attributes of an SBU and the benefits a firm may derive by using the SBU Structure are as follows:

A scientific method of grouping the businesses of a multi – business corporation which helps the
firm in strategic planning.

An improvement over the territorial grouping of businesses and strategic planning based on territorial
units.

Strategic planning for SBU is distinct from rest of businesses. Products/ businesses within an SBU
receive same strategic planning treatment and priorities.

Each SBU will have its own distinct set of competitors and its own distinct strategy.

The CEO of SBU will be responsible for strategic planning for SBU and its profit performance.

Products/businesses that are related from the standpoint of function are assembled together as a
distinct SBU.

Unrelated products/ businesses in any group are separated into separate SBUs.

Grouping the businesses on SBU lines helps in strategic planning by removing the vagueness and
confusion.

Each SBU is a separate business and will be distinct from one another on the basis of mission,
objectives etc.

Question 4 RTP (SEP 24)

Why Strategic Performance Measures are essential for organizations?

ANSWER :

Strategic performance measures are essential for organizations for several reasons:

Goal Alignment: Strategic performance measures help organizations align their strategies with their
goals and objectives, ensuring that they are on track to achieve their desired outcomes.

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Resource Allocation: Strategic performance measures provide organizations with the information they
need to make informed decisions about resource allocation, enabling them to prioritize their efforts
and allocate resources to the areas that will have the greatest impact on their performance.

Continuous Improvement: Strategic performance measures provide organizations with a framework for
continuous improvement, enabling them to track their progress and make adjustments to improve their
performance over time.

External Accountability: Strategic performance measures help organizations demonstrate

accountability to stakeholders, including shareholders, customers, and regulatory bodies, by providing
a clear and transparent picture of their performance.

Question 5 RTP (JAN 25)

EcoTec, a company specializing in sustainable technology solutions, is facing challenges due to shifts in
environmental regulations and market preferences. To manage these uncertainties, they regularly review and
update their business assumptions and strategic plans based on changing regulatory environments and
consumer trends. This proactive approach helps them stay aligned with evolving market conditions and maintain
a competitive edge. Explain which approach is EcoTech to adapt to changes in regulations and market
conditions?

ANSWER :

EcoTech is using Premise Control to adapt to changes in regulations and market conditions. Premise
Control is a strategic management approach focused on continuously monitoring and reviewing the
underlying assumptions that form the basis of an organization’s strategy. By regularly assessing
these assumptions—such as environmental regulations and consumer preferences, EcoTech ensures that
its strategic plans remain relevant and responsive to external changes. This proactive process helps
the company make timely adjustments to its strategies, allowing it to stay competitive and aligned with
the evolving market environment.

Question 6 RTP (JAN 25)

GloWare Ltd., an apparel manufacturer, has been in the market for over a decade. Until 2023, it
operated on the founding principles of its CEO, focusing on a limited regional market. With new growth
opportunities arising, GloWare is now interested in developing new competencies in areas such as digital
marketing, product innovation, sustainable materials, and financial management. Recognizing that changing
one area may impact others, the company wants a comprehensive understanding of the interconnected elements
that contribute to its operational effectiveness. As a strategist, you are tasked with creating a questionnaire

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to analyze both the "hard" and "soft" elements of the organization. This assessment will enable GloWare to
understand the factors that influence its effectiveness and to strategically align its structure, skills, and
culture with its growth ambitions.

ANSWER :

In addressing the strategic needs of GloWare Ltd., the McKinsey 7-S Model serves as a valuable tool.
This model examines how various "hard" and "soft" elements within the organization interact, with the
understanding that modifying one aspect can create a ripple effect on other elements, helping to maintain
a balanced and effective organizational structure. By analyzing these elements, GloWare can gain

insights into its organizational design and make strategic adjustments to improve performance.

The McKinsey 7-S Model categorizes elements into hard and soft

components:

Hard Elements (directly managed by the company):

Strategy: The organization's direction and competitive approach, designed to leverage core competencies
and achieve industry leadership.

Structure: The chosen organizational setup, shaped by resource availability and the degree of
centralization or decentralization desired by management.

Systems: The daily operations, processes, and teams that execute objectives in an efficient and effective
manner.

Soft Elements (influenced by organizational culture and more challenging to define):

Shared Values: Core beliefs that shape the culture and ethical code within the organization.

Style: Leadership style and its impact on decision-making, employee motivation, and goal delivery.

Staff: The talent pool and workforce capabilities.

Skills: The key competencies of employees that contribute to organizational success.

While the McKinsey 7-S Model provides a structured approach to analyzing organizational
effectiveness, it has certain limitations:

Limited Focus on External Environment: The model focuses only on internal elements, potentially
overlooking external factors impacting the organization.

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Undefined Organizational Effectiveness: It does not clearly explain how to measure or achieve
organizational effectiveness.

Static Nature: The model is considered more static and may lack flexibility in dynamic decision-making
situations.

Potential Gaps in Strategy Execution: It may not fully capture gaps between strategy development
and execution.

By applying the McKinsey 7-S Model, GloWare Ltd. can gain a comprehensive understanding of the
interconnected elements within its organization and how they impact overall performance. Insights
gathered from a questionnaire based on this model can inform strategic decisions, allowing GloWare to
enhance growth, operational efficiency, and competitiveness in a changing market.

Question 7 RTP (MAY 25)

EcoPure Ltd., a sustainable packaging manufacturer, faces challenges in goal alignment, resource allocation,
and customer satisfaction. As a strategic consultant, analyze how strategic performance measures can address
these issues. Propose a structured approach to implementation and explain how goal alignment, continuous
improvement, and external accountability will drive long-term success and enhance stakeholder confidence.

ANSWER :
Strategic performance measures are critical for EcoPure Ltd. as they provide a structured approach
to addressing the company’s challenges. By implementing these measures, EcoPure Ltd. can enhance
efficiency, optimize resources, and improve stakeholder confidence.

Goal Alignment ensures that all departments work towards EcoPure Ltd.'s sustainability and customer
satisfaction objectives. By setting clear goals, the company can ensure consistency in decision-making
and strategic execution.

Resource Allocation helps the company make informed investment decisions, prioritizing areas like
production efficiency, innovation, and supply chain improvements. This enables EcoPure Ltd. to optimize
resources while maintaining high-quality standards.

Continuous Improvement allows the company to track key performance indicators such as delivery
timelines, product quality, and operational efficiency. Regular analysis and refinements in processes will
help the company enhance performance over time.

External Accountability builds trust with stakeholders, including investors, customers, and regulatory
bodies. By maintaining transparency in reporting and demonstrating commitment to sustainability,
EcoPure Ltd. can strengthen its market reputation.

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By leveraging strategic performance measures in these areas, EcoPure Ltd. can overcome its
challenges, enhance customer satisfaction, and drive long-term success.

Question 8 RTP (MAY 25)

Distinguish between Strategic Planning and Operational Planning.

ANSWER :

Strategic planning Operational planning

Strategic planning shapes the Operational planning deals with current
organisation and its resources. deployment of resources.
Strategic planning assesses the impact of Operational planning develops tactics rather
environmental variables. than strategy.
Strategic planning takes a holistic view of the Operational planning projects current
organisation. operations into the future.
Strategic planning develops overall Operational planning makes modifications to
objectives and strategies. the business functions but not fundamental
changes.
Strategic planning is concerned with the Operational planning is concerned with the
long-term success of the organisation. short-term success of the organisation.
Strategic planning is a senior Operational planning is the responsibility of
management responsibility. functional managers.

Question 8 MTP (MAY 24)

GreenEdge Solutions, a mid-sized technology company, has implemented a new strategic plan focused on
achieving sustainable growth and strengthening its market presence. The leadership team is determined to
monitor the effectiveness of their strategies to ensure they align with the organization’s overall goals and
objectives. They seek a systematic approach to assess key performance areas critical to their success. What
are Strategic Performance Measures (SPM), and how can GreenEdge Solutions effectively use them to evaluate
and enhance the success of their strategic plan?

ANSWER :

Strategic Performance Measures (SPM) are metrics organizations use to evaluate and track the
effectiveness of their strategies in achieving their goals and objectives. SPM provides a framework for
monitoring key areas critical to the organization’s success, ensuring progress toward desired outcomes

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and enabling timely adjustments to improve performance. For GreenEdge Solutions, various types of SPM
can be utilized:

• Financial Measures: Metrics like revenue growth, return on investment (ROI), and profit margins help
evaluate the company’s financial health and profitability.

• Customer Satisfaction Measures: Assessments of customer satisfaction, retention, and loyalty

indicate how well the company meets customer needs.

• Market Measures: Market share, customer acquisition, and referral rates reflect competitiveness and
market position.

• Employee Measures: Employee satisfaction, engagement, and turnover rate help track workplace
culture and talent retention.

• Innovation Measures: R&D spending, patent filings, and new product launches gauge the company’s
innovation capabilities.

• Environmental Measures: Monitoring energy consumption, waste reduction, and carbon emissions
ensures the company aligns with sustainability goals.

Using these measures, GreenEdge Solutions can systematically assess its strategy and make informed
decisions to drive sustainable growth and success.

Question 9 MTP (MAY 24)

Leatherite Ltd. was started as a leather company to manufacture footwear. Currently, they are in the
manufacturing of footwears for males and females. The top management desires to expand the business
in leather manufacturing goods. To expand they decided to purchase more machines to manufacture leather
bags for males and females. Identify and explain the strategy opted by the top management of Leatherite
Ltd.

ANSWER :

Leatherite Ltd. is currently manufacturing footwears for males and females and its top management has
decided to expand its business by manufacturing leather bags for males and females. Both the
products are similar in nature within the same industry. The strategic diversification that the top
management of Leatherite Ltd. has opted for is concentric in nature. They were in business
manufacturing leather footwear and now they will manufacture leather bags as well. They will be able to
use existing infrastructure and distribution channels. Concentric diversification amounts to related
diversification.

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In concentric diversification, the new business is linked to the existing businesses through process,
technology or marketing. The new product is a spin-off from the existing facilities and
products/processes. This means that in concentric diversification too, there are benefits of
synergy with the current operations.

Question 10 MTP (MAY 24)

A Mumbai-based conglomerate, PQR Ltd., has announced a major restructuring of its business operations.
The company has decided to split its business into four separate units: Manufacturing, Retail, Services, and
Technology. Each unit will operate as a separate business, with delegated responsibility for day-to-day
operations and strategy to the respective unit managers. Identify the organization structure that PQR Ltd.
has planned to implement. Discuss any four attributes and the benefits the firm may derive by using this
organization structure.

ANSWER :

PQR Ltd. has planned to implement the Strategic Business Unit (SBU) structure. Very large organisations,
particularly those running into several products, or operating at distant geographical locations that
are extremely diverse in terms of environmental factors, can be better managed by creating strategic
business units. SBU structure becomes imperative in an organisation with increase in number, size and
diversity.

The attributes of an SBU and the benefits a firm may derive by using the SBU Structure are as follows:

♦ A scientific method of grouping the businesses of a multi – business corporation which helps the firm
in strategic planning.

♦ An improvement over the territorial grouping of businesses and strategic planning based on territorial
units.

♦ Strategic planning for SBU is distinct from rest of businesses. Products/ businesses within an SBU
receive same strategic

planning treatment and priorities.

♦ Each SBU will have its own distinct set of competitors and its own distinct strategy.

♦ The CEO of SBU will be responsible for strategic planning for SBU and its profit performance.

♦ Products/businesses that are related from the standpoint of

function are assembled together as a distinct SBU.

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♦ Unrelated products/ businesses in any group are separated into

separate SBUs.
♦ Grouping the businesses on SBU lines helps in strategic planning

by removing the vagueness and confusion.

♦ Each SBU is a separate business and will be distinct from one

another on the basis of mission, objectives etc.

Question 11 MTP (MAY 24)

Explain the concept of forward and backward linkages between strategy formulation and implementation in
strategic management, using relevant examples. How do these linkages impact the overall strategic decision
making process of an organization?

ANSWER :

The concept of forward and backward linkages between strategy formulation and implementation in
strategic management highlights the interconnected nature of these two phases and their impact on the
overall strategic decision-making process of an organization.

Forward Linkages: Forward linkages refer to the impact of strategy formulation on strategy
implementation. When an organization formulates a new strategy or revises an existing one, it sets the
direction for the organization's future actions. For example, if a company decides to expand its product
line to target a new market segment, this decision will require changes in the organization's structure,
resources allocation, and possibly its leadership style. These changes are necessary to align the
organization's operations with the new strategic direction. Thus, the formulation of strategies has
forward linkages with their implementation, as it sets the stage for how the strategy will be executed.

Backward Linkages: Backward linkages, on the other hand, refer to the impact of implementation on
strategy formulation. As an organization implements its strategies, it gains valuable insights and feedback
from the implementation process. This feedback can influence future strategic decisions. For example, if
a company faces unexpected challenges or discovers new opportunities during the implementation of a
strategy, it may need to reevaluate its strategic choices. Similarly, past strategic actions and their
outcomes can also influence the formulation of future strategies. Over time, these incremental changes
in strategy and implementation take the organization from its current state to where it aims to be,
reflecting the dynamic nature of strategic management. In conclusion, the forward and backward linkages
between strategy formulation and implementation highlight the iterative and interconnected nature of

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strategic management. By understanding and leveraging these linkages, organizations can enhance their
strategic decision-making process and improve their overall performance.

Question 12 MTP (MAY 24)

Define Strategic Performance Measures (SPM). Explain various types of strategic performance measures.

ANSWER :

Strategic Performance Measures (SPM) are metrics used by organizations to evaluate and track the
effectiveness of their strategies in achieving strategic goals and objectives. SPM provides a framework
for measuring the performance of key areas critical to the success of the organization's strategy. These
measures help in assessing whether the organization is progressing towards its desired outcomes and
allow for adjustments to be made to improve performance. Types of Strategic Performance Measures
There are various types of strategic performance measures, including:

♦ Financial Measures: Financial measures, such as revenue growth, return on investment (ROI), and profit
margins, provide an understanding of the organization's financial performance and its ability to generate
profit.

♦ Customer Satisfaction Measures: Customer measures, such as customer satisfaction, customer

retention, and customer loyalty, provide insight into the organization's ability to meet customer needs
and provide high-quality products and services.

♦ Market Measures: Market measures, such as market share, customer acquisition, and customer
referrals, provide information about the organization's competitiveness in the marketplace and its ability
to attract and retain customers.

♦ Employee Measures: Employee measures, such as employee satisfaction, turnover rate, and employee
engagement, provide insight into the organization's ability to attract and retain talented employees and
create a positive work environment.

♦ Innovation Measures: Innovation measures, such as research and development (R&D) spending, patent
applications, and new product launches, provide insight into the organization's ability to innovate and
create new products and services that meet customer needs.

♦ Environmental Measures: Environmental measures, such as energy consumption, waste reduction, and
carbon emissions, provide insight into the organization's impact on the environment and its efforts to
operate in a sustainable manner.

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Question 13 MTP (SEP 24)

Write a short note on Matrix Structure.

ANSWER :

In matrix structure, functional and product forms are combined simultaneously at the same level of the
organization. Employees have

two superiors, a product / project manager and a functional manager.

The “home” department - that is, engineering, manufacturing, or

marketing - is usually functional and is reasonably permanent. People

from these functional units are often assigned temporarily to one or more

product units or projects.

The product units / projects are usually temporary and act like divisions

in that they are differentiated on a product-market basis. The matrix

structure may be very appropriate when organizations conclude that

neither functional nor divisional forms, even when combined with

horizontal linking mechanisms like strategic business units, are right for

the implementation of their strategies. Matrix structure was developed to

combine the stability of the functional structure with flexibility of the

product form. It is very useful when the external environment (especially

its technological and market aspects) is very complex and changeable.

A matrix structure is most complex of all designs because it depends

upon both vertical and horizontal flows of authority and communication.

It may result in higher overhead costs due to more management

positions.

The matrix structure is often found in an organization when the following

three conditions exist:

1. Ideas need to be cross-fertilized across projects or products;

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2. Resources are scarce; and

3. Abilities to process information and to make decisions need to be

improved.

Question 14 MTP (SEP 24)

Strategic alliances are formed if they provide an advantage to all the parties in the alliance. Do you agree?
Explain in brief the advantages of a strategic alliance.

ANSWER :

Organizations should consider the following factors when choosing

strategic performance measures:

1. Relevance: The measure should be relevant to the organization's

goals and objectives, providing actionable and meaningful

information. This ensures that the performance measures are

directly aligned with what the organization aims to achieve, and that

the information obtained can drive improvements and strategic

decisions.

2. Data Availability: The measure should be based on data that is

readily available and can be collected and analyzed in a timely

manner. This is important to ensure that the organization can

efficiently gather and utilize data without significant delays or

obstacles.

3. Data Quality: The measure should be based on high-quality data that is accurate and reliable.
Accurate and reliable data are crucial for making informed decisions and assessing the true
performance of the organization.

4. Data Timeliness: The measure should be based on data that is

current and up-to-date. Timely data allows organizations to make

informed decisions quickly, enabling them to respond promptly to

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changes and emerging challenges.

These factors are important because they provide a framework for

organizations to assess the success of their strategies, identify areas for

improvement, and make informed decisions about resource allocation and strategic adjustments.
Effective strategic performance measures

should be relevant, meaningful, easy to understand, and regularly

reviewed and updated to ensure their continued alignment with the

organization's goals and objectives.

Question 15 MTP (SEP 24)

Orion Tech Solutions Pvt. Ltd. is renowned for its ability to launch groundbreaking software products. Despite
the relaxed and casual work environment at Orion, there is a strong commitment to meeting deadlines.
Employees at Orion believe in the "work hard, play hard" ethic. The company has shifted from a formal,
hierarchical structure to a more results-oriented approach. Employees are deeply committed to the company’s
strategies and work diligently to achieve them. They safeguard innovations and maintain strict confidentiality
and secrecy in their operations. Their work culture is closely aligned with the organization's values, practices,
and norms. What aspects of an organization are being discussed? Explain.

ANSWER :

The scenario being referred to is the organizational culture at Orion Tech Solutions Pvt. Ltd. A strong
culture encourages effective strategy execution when there is alignment and drives performance even
when there is minimal alignment. A culture rooted in values, practices, and behavioural norms that align
with the requirements for successful strategy execution energizes employees across the organization
to perform their roles in a manner that supports the strategy. Orion's culture, built around principles
such as listening to customers, encouraging employees to take pride in their work, and providing a
high degree of decision-making autonomy, is highly conducive to successfully executing a strategy
focused on delivering superior software solutions.

A strong strategy-supportive culture at Orion makes employees feel genuinely better about their jobs,
work environment, and the organization's goals. It motivates them to embrace the challenge of realizing
the company’s vision, perform their duties competently and enthusiastically, and collaborate effectively
with others.

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Question 16 MTP (SEP 24)

Describe the principal aspects of strategy-execution process, which are included in most situations.

ANSWER :

Implementation or execution is an operations-oriented, activity aimed at shaping the performance of

core business activities in a strategy supportive manner. In most situations, strategy-execution
process includes the following principal aspects:

♦ Developing budgets that steer ample resources into those activities that are critical to strategic
success.

♦ Staffing the organization with the needed skills and expertise, consciously building and
strengthening strategy-supportive

competencies and competitive capabilities and organizing the work

effort.

♦ Ensuring that policies and operating procedures facilitate rather than impede effective execution.

♦ Using the best-known practices to perform core business activities and pushing for continuous
improvement.

♦ Installing information and operating systems that enable company personnel to better carry out their
strategic roles day in

and day out.

♦ Motivating people to pursue the target objectives energetically.

♦ Creating culture and climate conducive to successful strategy implementation and execution.

♦ Exerting the internal leadership needed to drive implementation forward and keep improving strategy
execution.

Question 17 MTP (JAN 25)

GreenEdge Solutions, a mid-sized technology company, has implemented a new strategic plan focused on
achieving sustainable growth and strengthening its market presence. The leadership team is determined to
monitor the effectiveness of their strategies to ensure they align with the organization’s overall goals and
objectives. They seek a systematic approach to assess key performance areas critical to their success.
What are Strategic Performance Measures (SPM), and how can GreenEdge Solutions effectively use them to
evaluate and enhance the success of their strategic plan?

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ANSWER :

Strategic Performance Measures (SPM) are metrics organizations use to evaluate and track the
effectiveness of their strategies in achieving their goals and objectives. SPM provides a framework for
monitoring key areas critical to the organization’s success, ensuring progress toward desired outcomes
and enabling timely adjustments to improve performance. For GreenEdge Solutions, various types of SPM
can be utilized:

• Financial Measures: Metrics like revenue growth, return on investment (ROI), and profit margins help
evaluate the company’s financial health and profitability.

• Customer Satisfaction Measures: Assessments of customer satisfaction, retention, and loyalty

indicate how well the company meets customer needs.

• Market Measures: Market share, customer acquisition, and referral rates reflect competitiveness and
market position.

• Employee Measures: Employee satisfaction, engagement, and turnover rate help track workplace
culture and talent retention.

• Innovation Measures: R&D spending, patent filings, and new product launches gauge the company’s
innovation capabilities.

• Environmental Measures: Monitoring energy consumption, waste reduction, and carbon emissions
ensures the company aligns with sustainability goals.

Question 18 MTP (JAN 25)

Jupiter Electronics Ltd. is known for its ability to come out with path breaking products. Though the work
environment at Jupiters is relaxed and casual, there is a very strong commitment to deadlines. The employees
believe in a “work hard play hard" ethic. The organisation has moved away from formal and hierarchical set
up to a more results-driven approach. Employees are committed to strategies and work towards achieving
them. They guard innovations, maintain confidentiality and secrecy in their work. They are closely related to
values, practices, and norms of organisations. What aspects of an organization are being discussed? Explain

ANSWER :

The scenario being referred to is culture in Jupiter Electronics. Strong culture promotes good strategy
execution when there’s fit and impels execution when there’s negligible fit. A culture grounded in
values, practices, and behavioral norms that match what is needed for good strategy execution helps

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energize people throughout the organization to do their jobs in a strategy-supportive manner. A culture
built around such business principles as listening to customers, encouraging employees to take pride in
their work, and giving employees a high degree of decision

making responsibility. This is very conducive to successful execution of a strategy of delivering superior
customer service.

A strong strategy-supportive culture makes employees feel genuinely better about their jobs and work
environment and the merits of what the company is trying to accomplish. Employees are stimulated to
take on the challenge of realizing the organizational vision, do their jobs competently and with
enthusiasm, and collaborate with others.

Question 19 MTP (JAN 25)

How the 'Strategic Business Unit’ (SBU), structure becomes imperative in an organization with increase in
number, size and diversity of divisions?

ANSWER :

SBU is a part of a large business organization that is treated separately for strategic management
purposes. The concept of SBU is helpful in creating an SBU organizational structure. It is a separate
part of large business serving product markets with readily identifiable competitors. It is created by
adding another level of management in a divisional structure after the divisions have been grouped under
a divisional top management authority based on the common strategic interests.

Very large organisations, particularly those running into several products, or operating at distant
geographical locations that are extremely diverse in terms of environmental factors, can be
better managed by creating strategic business units. SBU structure becomes imperative in an
organisation with increase in number, size and diversity. SBUs helps such organisations by:

• Establishing coordination between divisions having common strategic interest.

• Facilitate strategic management and control.

• Determine accountability at the level of distinct business units.

• Allow strategic planning to be done at the most relevant level within the total enterprise.

• Make the task of strategic review by top executives more objective and more effective.

• Help to allocate resources to areas with better opportunities.

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