Strategic Management – Answer Compilation
I. Multiple Choice Questions
1. 1. Transformational leadership style is appropriate in turbulent environments because
it uses charisma and enthusiasm to inspire employees to embrace major changes, such
as those in dynamic industries.
2. 2. An hourglass structure has a constricted middle level due to reduced middle
management roles, replaced by technology linking top and bottom levels.
3. 3. Management control is practiced when focusing on integrated activities of a complete
department or division, ensuring efficient goal achievement.
4. 4. Budgetary control is chosen for operational control as it involves maintaining
expenditures within set financial standards.
5. 5. Changing behavior patterns involves compliance, identification, and internalization
during Kurt Lewin's change phase to adopt new behaviors.
6. 6. Operational control is not a strategic control type; strategic controls include premise
control, surveillance, special alert, and implementation control.
II. Scenario-Based Questions
Digital Transformation Strategy for Small Manufacturer
Begin with united top leadership communicating a clear vision.
Assess current operations to ensure changes are necessary and employee-supported.
Minimize disruption via early communication, training, and change agents.
Foster open communication channels for feedback and collaboration.
Treat change as ongoing, adapting continuously to new technologies.
PQR Ltd.'s Divisional Structure
Structure: Divisional (four units: Manufacturing, Retail, Services, Technology).
Attributes:
- Clear accountability for unit managers.
- Local control over operations.
- Easy addition of new products/businesses.
- Career development opportunities.
Benefits: Higher morale, competitive internal climate, and responsiveness to local
markets.
York Investors' McKinsey 7S Model
Model: McKinsey 7S (aligns strategy, structure, systems, shared values, skills, style,
staff).
Explanation: Training enhances skills; technology streamlines systems; communication
systems improve staff coordination, ensuring holistic alignment with strategic goals.
Leadership Styles of Ramesh and Yashpal
Ramesh: Transactional leadership—uses formal rewards/punishments to motivate.
Yashpal: Transformational leadership—inspires enthusiasm and involvement for
shared goals.
Advice to Suresh Sinha (SBU Head)
Monitor progress, resolve execution issues.
Foster team unity and high performance.
Keep the unit responsive to changes and innovation.
Push corrective actions for improvement.
Aditya Bandopadhyay's CEO Responsibilities
Make strategic decisions and formulate action plans.
Ensure effective communication and manage human capital.
Drive change, build corporate culture, and sustain performance.
Manoj's Telecom Organization Structure
Structure: Functional (CEO oversees departments: Accounts, Administration, Sales,
Customer Service, Vendor Coordination).
CEO
├── Telecom Operations
├── Accounts & Finance
├── Marketing (Sales, Customer Creation, After-Sales)
└── Administration (HR, Vendor Coordination)
Moonlight Private Limited's SBU Structure
Structure: Strategic Business Unit (SBU).
Benefits: Groups related businesses for unified planning, clarifies accountability,
optimizes resource allocation, and reduces strategic confusion.
Sanya Private Limited's Control Process
Set measurable standards for resources and behavior.
Monitor performance against standards.
Detect deviations and analyze causes.
Feed back corrective actions to realign operations.
III. Descriptive Questions
Strategic Business Unit (SBU)
A distinct business segment with its own competitors, managed separately for strategy.
Advantages: Better planning, resource allocation, accountability, and performance
tracking.
Divisional Structure
Diagram:
Chief Executive
├── Corporate Functions (Finance, Legal)
└── Divisions (A, B, each with Marketing, Production, HR)
Advantages: Accountability, local control, career growth.
Disadvantages: High costs, duplicated roles, inconsistent practices.
Hourglass Structure
Three layers: wide top (executives), narrow middle (minimal managers), wide bottom
(staff).
Benefits: Cost reduction, faster decisions by empowering staff, and flexibility.
Transformational vs. Transactional Leaders
Transformational: Inspire change through vision (e.g., turbulent times).
Transactional: Focus on efficiency via rewards/punishments (e.g., stable environments).
Strategic Change & Kurt Lewin's Process
Change: Shifts in strategy for new markets/products.
Lewin's Process:
1. Unfreezing: Prepare for change (e.g., awareness campaigns).
2. Changing: Adopt new behaviors (e.g., training).
3. Refreezing: Reinforce changes as norms (e.g., policy updates).
Operational vs. Management Control
Operational: Task-specific (e.g., inventory control).
Management: Department-wide (e.g., divisional performance).
Strategic Control & Types
Purpose: Ensure strategy implementation and results.
Types:
- Premise Control: Monitor strategy assumptions (e.g., economic shifts).
- Strategic Surveillance: General environmental scanning.
- Special Alert Control: Crisis response (e.g., disasters).
- Implementation Control: Assess incremental steps (e.g., milestone reviews).
Implementation Control
Purpose: Adjust strategy during execution.
Forms:
- Strategic Thrusts: Track key initiatives.
- Milestone Reviews: Reassess at critical points (e.g., post-resource allocation).
IV. Case Scenario Questions
Case: Zing Automotive
Product innovation and design (invested in aesthetics and eco-tech).
Branded software and switching costs (made switching expensive).
Inconsistent quality and service (led to negative reviews).
Business level strategy (distribution partnerships for market reach).
Partnering with established dealerships (achieved 80% national coverage).
Case: Café Delight
Growth Stage (used social media to expand to 25+ stores).
Low-power, high-interest stakeholders (e.g., locals via targeted campaigns).
Leveraging customer loyalty and word-of-mouth (organic growth via quality).
Business level strategy (premium pricing for differentiation).
Focused differentiation strategy (unique Australian-Indian fusion niche).
Case: Swasthya Healthcare
Safeguards quality and aligns with strategic risk assessment (prevents disruptions).
Introducing value-added services (e.g., telemedicine for innovation risks).
Comprehensive alignment of all 7 elements (strategy, structure, systems, values, skills,
style, staff).
Translates vision into tangible outcomes (local execution aligns with long-term goals).
Middle Management (implements strategy and customer-first culture).
Case: MuseoGoa
Mendelow's matrix (prioritized locals as key stakeholders).
Cost leadership strategy (affordable tickets to attract tourists).
Market development strategy (expanded to Pune/Trivandrum).
Strategy (social media/pricing as competitive tools).
Strategic partnerships (with local influencers for market entry).
Case: Connect Innovations (Poppy)
Sequence: (III) Identify, (I) Understand, (II) Strengths/weaknesses, (IV) Consolidate.
Implementation (annual targets guide execution).
Retrenchment strategy (exited smartphones for accessories).
Cash cow (high-profit, low-investment accessories).
Economies of scale (mass production to lower costs and deter competitors).
