BA5302-Strategic Management PDF
BA5302-Strategic Management PDF
BA5302-Strategic Management PDF
QUESTION BANK
III SEMESTER
Regulation – 2017
Prepared by
Conceptual framework for strategic management, the Concept of Strategy and the Strategy Formation
Process – Stakeholders in business – Vision, Mission and Purpose – Business definition, Objectives
and Goals - Corporate Governance and Social responsibility-case study.
9 ii) Can you make a distinction between goals and BTL 3 Applying
objectives?
(6 Marks)
i) Define corporate social responsibility. (4Marks)
PART - C
QUESTIONS:
a) Do you think is the coco-cola socially responsible company?
b) How can coco-cola regain its market?
2. Apple has considered the GRI G3.1 indices relating to the economy, the environment,
humanrights, society and labour for its publication on Governance, Product Environmental
Reports, Recycling and Facilities Environmental Report and Supplier Responsibility. For
Supplier Responsibility, Apple, for example, has taken into account the indicator which
reports on measures it has taken to contribute to the elimination of child labour. With regard
to Product Environmental Reports, Apple has used the EN26 performance indicator,115 and
sets out initiatives to lessen the environmental impact of its products. Apple designs its
products with the aim of being as energy efficient as possible, and it is the only company
that can claim all electronic goods are Energy Star qualified.116 Apple’s products have
become more powerful while, at the same time, fewer materials are used and fewer carbon
emissions are generated. Almost all of Apple’s products are outsourced for manufacturing
overseas. But the limited transparency of Apple’s supplier sustainability policy has often
been criticized in the media. In February 2010 Apple also turned down two shareholders‟
sustainability proposals to establish a sustainability report on Apple’s environmental policies
and the impact that climate change has on the company. The other
proposalwastoestablishaboardofdirectors‟sustainabilitycommittee. A well-known conflict
involving Apple’s suppliers is the suicides at Foxconn. It is the largest contracted electronics
manufacturer in the world, with dealings involving Dell and Sony. Foxconn is the
manufacturer of iPhones and iPads and employs over 900,000 workers, of whom 420,000
employees work at the Foxconn Shenzhen plant. This plant covers 15 factories, including
dormitories, a hospital, a bank, a grocery store and restaurants. The workers live and work
inside the complex. In 2006 the Chinese local press reported on the excessively long working
hours and the discrimination of mainland Chinese workers by Taiwanese superiors. In May
2010 several media sources reported several cases of suicide at Foxconn. From 2009 to 2010
a total of 13 workers had committed suicide. The first worker, Sun Danyong, committed
suicide after he had been interrogated on the loss of an iPhone 4 prototype that he had in his
possession. When the former CEO Steve Jobs was asked about the suicides at Foxconn, he
responded: „Foxconn is not a sweatshop. Comment on the above case study and give your
viewpoints in it.
4.Dr.Sukumar inherited his father’s Dey’s Lab in Delhi in 1995. Till 2002, he owned 4 labs
in the National Capital Region (NCR). His ambition was to turn it into a National chain.
The number increased to 7 in 2003 across the country, including the acquisition of Platinum
lab in Mumbai. The number is likely to go to 50 within 2-3 years from 21 at present. Infusion
of Rs.28 crores for a 26% stake by Pharma Capital has its growth strategy.The lab with a
revenue of Rs.75 crores is among top three Pathological labs in India with Atlantic (Rs.77
crores) and Pacific (Rs.55 crores). Yet its market share is only 2% of Rs.3,500crores market.
The top 3 firms command only 6% as against 40- 45% by their counterparts in the
USA.There are about 20,000 to 1,00,000stand alone labs engaged in routine pathological
business in India, with no system of mandatory licensing and registration. That is why
Dr.Sukumar has not gone for acquisition or joint ventures. He does not find many existing
laboratories meeting quality standards. His six labs have been accredited nationally
whereon many large hospitals have not though of accreditation. The College of American
Pathologists accreditation of Dey‟s lab would help it to reach clients outside India.InDey‟s
Lab, the bio- chemistry and blood testing equipments are sanitized every day. The bar coding
and automated registration of patients do not allow any identity mix-ups. Even routing tests
are conducted with highlysophisticated systems. Technical expertise enables them to carry
out 1640 variety of tests. Same day reports are available for samples reaching by 3 p.m. and
by 7 a.m. next day for samples from 500 collection centres located across the county. Their
technicians work round the clock, unlike competitors. Home services for collection and
reporting is also available.There is a huge unutilized capacity. Now it is trying top other
segments. 20% of tis total business comes through its main laboratory which acts as a
reference lab for many leading hospitals. New mega labs are being built to encash
preclinical and multi – centre clinical trails questions.
1. What do you understand by them Vision? What is the difference between„ Vision ‟and„
Mission‟?
2. What vision Dr.Sukumar has at the time of inheritance of Dey‟s lab? Has it been achieved?
(8 Marks)
3. For growth what business strategy has been adopted by Dr. Sukumar? (2Marks)
PART – C
1. Perform an external environment analysis using Porters five force model in the purview of an
automobile company.
2. Taking a firm of your choice, explain how competitive advantage is developed and sustained over a
long period of time.
3. The Icarus paradox is based on the Greek myth of Icarus, who made himself a pair of wings from
wax and feathers and then flew so well that he went too close to the sun, which melted the wings, and
he plunged to his death. The paradox suggests that his greatest asset, his ability to fly, gave rise to his
demise. Many successful companies become so dazzled by their own early success that they believe
that operate in the same way will lead to future success. This attitude, finally leads a company to
become so specialized and inner-directed that it loses sight of market realities .Sooner or later failure
mustensue.Here a typical example is the DEC Company. By 1990, DEC‟s superiority in producing
high quality VAX minicomputers made it one of the largest corporations in the world However, the
company’s success carried the seeds of its destruction. An increasingly narrow focus on engineering
capability led to a neglect of other functions, such as marketing, servicing and so on. The firm became
dull to the dynamic customer needs and industry conditions. Then DEC went through a terrible
change of fortune in the early 1990s, and finally was acquired by Compaq in 1998. (Compaq was
acquired by Hewlett Packard in2001.)
4. Everyone was made to wear identical shirts to work, with the Pepsi logo emblazoned on the pockets,
right across their hearts. There were no „bosses‟ or „sirs‟. Suman would be addressed as Suman by
the entire team. In every visit to the market, in every conference Suman would make sure that he
projected salesman as the real heroes of PepsiCo. Even the television commercials showed salesman
doing everything possible for the company. Everyone including the truck drivers was made to believe
that he/she is out on a battle ready to kill the enemy Coke. People say that is what made Pepsi win
the battle in India against Coke. In fact, if you stopped a Pepsi truck and asked the salesman what he
was doing, chances would be high that he would say he is helping Pepsi win the Cola war. Not just
selling Pepsi. Remember what the then President of America, John F Kennedy was greeted with when
he posed a question to the janitor working at the Kennedy Space Centre, Florida, „what do you do
here?‟ She replied “I am helping America put a man on the moon!” And that is what is called as
Vision sharing. When employees share the vision, they can scale new heights continually and put the
company on top of the world, quite easily. Questions:
a) How PepsiCo India did have won the war withCoke?
b) What kind of strategy had adopted by Mr.Suman to get success for PepsiCoIndia?
PART - C
1. Obviously, a well-known transformational story is APPLE, Jobs has successfully
transformed APPLE from a PC firm to a promising diversified organization, this has great strategic
flexibility to innovate in the market. This revolution process is certainly full of adventure and
difficulties. In the PC industry where the product has become a commodity, it is the low cost player
which can deliver the best quality at the lowest cost will win. Historically this has been Dell,
Lenovo and HP. However, Apple is protected in the sense that it has a uniquely differentiated
product in a commodity industry. It has the advantages of brand loyalty, ease of use, and design
elegance. After the early year‟s failure of marketing PC, Apple has been very successful with the
iPod, iTunes and iPhones. In a decade APPLE has gone from a computer manufacture to a world
beater in personal music players, mobile phones, music retail, tablet computing, TV hardware
manufacture. Especially, the firm has actually dominated the market for mobile phone applications
by being open and rewarding developers with generous profit sharing. In 2010 it hosted over
250,000 „„apps‟‟ from outside developers, and while it is criticized for being „„closed‟‟ in
operating a strict policy in monitoring the content of these apps, it is generating almost $1bn a year
throughthe innovation and has made many developers millionaires. There are a number of reasons
for Apple‟s successful organizational transformation. Firstly, the iPod itself was technologically
sophisticated and cool, the design elegance helped to drive demand. Secondly, iTunes files could
only be played on the iPod created a closed world in which copyright violations were less likely
to occur. This helped to allay the fears of music publishers regarding illegal file sharing. Last but
not the least, Apple offered the music companies a great deal – of the$0.99 paid for every
download, $0.89 reportedly goes straight to the music companies. They capture most of the
economic profit. With regards to iPhone, although the iPhone was not the first smart phone, its
market share is growing rapidly. The reason is clear now: Apple has realized the importance of
applications for sales of the iPhone, and is creating incentives for third part developers to make
and sell applications through its appsstore.
Essentially, Apple is leveraging a network effect successfully. The more valuable apps offered on
the iPhoneplatform, the greater the utility of owning an iPhone, the greater demand will be created,
and the more apps will be offered. Previously, Microsoft utilized such a network effect with
Windows, now Apple is trying to utilize it with its iPhone. The successful organizational
transformation of Apple‟s success in the iPhone business depends in large part upon its ability to
win what is rapidly becoming a format war in the smart phone business. To dothat, it must exploit
network effects, and so far Apple seems to be doing a better job than itscompetitors.
Questions:
Do a SWOT analysis for the AppleInc.
2.Assume a company of your own and conduct a ETOP and GAP analysis.
PART - C
2. The MSIL has a market share of about 55% in the Indian passenger car segment and is the
largest manufacture of small cars in India. The company has been voted as first by Indian customers
for level of customer service and customer satisfaction. The company manufactures affordable
small cars which serve the needs of average Indian customers faithfully and hence have a strong
brand image as the common man‟s car in India, which an average Indian customer identifies with.
Such a strong brand image and huge customer base can sustain the position of the company as the
market leader in the Indian small car segment. Well Developed Sales and Service Network
throughout India: The Maruti Suzuki India and a huge service network of more 2,750 franchises of
service outlets spreading about 1,300 cities throughout India. Such a widely distributed sales and
service network can help the company to relate with its Customers across India, also facilitates
bargaining power with suppliers and increases profitability. Very Strong Knowledge of Indian
Market: The Maruti Suzuki India has a strong knowledge of the Indian market which has helped
them to grow their sales and market share in India.
Questions:
A. How core competencies of MSIL are explained in above case?
B. What kind of strategy can be adopted by MSIL to get commercial success of
car business in domestic as well as global market?
3. The balanced scorecard immediately played a role in the transformation of Infosys. The
executive team used the scorecard to guide discussion during its meetings. The continual process
of adaptation, execution, and management that the scorecard fostered helped the team respond
to, and even anticipate, its client’s evolving needs. Eventually, use of the scorecard for
performance measurement spread to the rest of the organization, with monetary incentive linked
to the company’s performance along the different dimensions. Over time, the balanced scorecard
became part of the Infosys culture. In recent years, Infosys has begun using the balanced
scorecard concept to create “relationship scorecard” for many of its largest clients. Using the
scorecard framework, Infosys began measuring its performance for key clients not only on
project management and client satisfaction, but also on repeat business and anticipating client’s
future strategic needs. The balanced scorecard helped successfully steer the transformation of
Infosys from a technology outsources to leading business consultancy. From 1999 to 2007, the
company had a compound annual growth rate of 50%, with sales growth from $120 million in
1999 to more than $3 billion in 2007. Infosys was recognized for its achievements by making
the Wired 40, Business Week IT 100, and Business Week Most Innovative Companies lists.
Questions:
A. Make a balance scorecard report for Infosys in your own understanding.
B. Suggest measures to prepare balance scorecard for Infosys.
4. A major contract with Reebok, followed by another from Digital Equipment turned the
fortunes for Infosys and Murthy did not look back thereafter. Murthy was perhaps the first Indian
middle-class entrepreneur to share his wealth with his employees, including drivers and office
boys. At last count, Infosys three-bedroom house in Jayanagar, Bangalore. He avoid five star
hotels, travels economy, even cleans the bathroom of his house and refuses to use the company
car for private purposes. But his vision is truly global. Even when the company had truckloads
of cash, acquisitions were never carried out in a rash manner – during the internet boom. Murthy
never believed in importing ideas from elsewhere. In a world that is prepared to do anything for
acquiring power, Murthy stepped down from mainstream business operations voluntarily. Top
management changes at the top level are very smooth and never make headline news – thanks
to the highly admirable moralistic path that Murthy has so carefully chosen to take the company
to greater heights. Not surprising to find is the fact that the company’s CEO, Sri Gopalakrishnan,
paid penalty in 2008 to the stock exchange for having failed to inform within mandated time,
performing last rites for his departed mother! His recent move to commit his entire stake for
social projects is, indeed, shocking news for many in this materialistic world.
Questions:
• What kinds of organizational changes have been laid down by Mr. Murthy,
to exploit the Infosys as an organization? From the above case, which instance
shows the conflict situation and its management
UNIT- V OTHER STRATEGIC ISSUES
Managing Technology and Innovation-Strategic issues for Non Profit organisations. New Business
Models and strategies for Internet Economy-case study.
Q.NO PART - A BT LEVEL COMPETENCE
1 What is a lead user? BTL 1 Remembering
2 Explain corporate entrepreneurship BTL 2 Understanding
How would you show your understanding on the BTL 3 Applying
3 concept of organizational design for corporate
entrepreneurship?
4 Identify new business models in internet economy. BTL 4 Analysing
5 Can you assess the importance of entrepreneurial venture? BTL 5 Evaluating
Interpret the need for the strategic management processes in BTL 6 Creating
6
small business?
7 What is innovation in business context? BTL 1 Remembering
8 List down the factors influencing success of a new venture? BTL 2 Understanding
9 Analyze the concept of strategic piggybacking. BTL 3 Applying
10 Why innovation management is critical for business? BTL 4 Analysing
11 What is a nonprofit organization? BTL 5 Evaluating
Evaluate the characteristics of innovative entrepreneurial BTL 6 Creating
12
culture?
13 What is “Brick & click strategy? BTL 1 Remembering
14 What are the issues in alliances with foreign companies? BTL 2 Understanding
15 Are performance based budgets suitable for NPOs BTL 3 Applying
16 Identify the factors influencing strategic resource allocation. BTL 4 Analysing
17 How technological advancements can be managed? BTL 1 Remembering
18 Mention the role of technology in strategic management. BTL 2 Understanding
List the strategic issues of a profit organization of your BTL 1 Remembering
19
choice.
20 How do you explain the term ‘internet economy’? BTL 1 Remembering
Q.NO PART – B BT LEVEL COMPETENCE
1 Explain the sources of innovation .Explain the factors
BTL 1 Remembering
influencing success of a new venture.
i) “Strategic organization”- discuss(9Marks)
2 ii) Outline the concept “Strategic piggybacking”. BTL 2 Understanding
(4Marks)
3 State different types of strategic control. Brief the link
BTL 3 Applying
between organization structure and strategic control.
i) Define strategic control system .Distinguish strategic
4 control and operational control(7 Marks)
BTL 4 Analysing
ii) Identify the characteristics of an effective
strategic control system. (6 Marks)
5 Generate the strategies for internet economy. BTL 5 Evaluating
i) Highlight the role of technology & innovation in
6 strategic management with example. (7 Marks) BTL 6 Creating
ii) Explain the barriers in strategic evaluation. (6Marks)
7 What are new business models and strategies for the internet
BTL 1 Remembering
economy?
8 What kind of conflicts arises in the process of strategy
BTL 2 Understanding
implementation? How are they resolved?
i) Identify the subtypes in small business development.
(7Marks)
9 ii) “Innovation Discuss the statement and BTL 3 Applying
discuss the type of growth avenues available at
different stages of an innovation. (6 Marks)
10 What are the merits and de-merits of technology leadership? BTL 4 Analysing
i) Define the term technology environment. (4Marks)
11 ii) Discuss the relevance of strategy formulation BTL 1 Remembering
in a changing technological environment.
(9 Marks)
12 Elucidate the characteristics of internet market structure. BTL 1 Remembering
PART – C
3) In 1968, Spencer Silver was working at 3M to create a super strong adhesive for use in the
aerospace industry. Instead, he accidently created an incredibly weak, pressure sensitive adhesive.
While useless for his project the new adhesive had two interesting features. First, when stuck to a
surface, it could be removed without leaving residue, and second, it was reusable. Unable to use
this product in his work, Silver then tried to introduce bulletin boards coated with the adhesive as
an alternative to pushpins. While effective, the bulletin board market was too small to offer any
real promise and the project was shelved.Silver found himself in a sticky situation. His product
failed.3M encouraged Silver to continue seeking suggestions from other employees and for nearly
five years the adhesive stayed in the company as an interesting, but useless innovation. In a
moment of frustration chemical engineer and 3M employee Art Fry suggested that perhaps Silver
had been using the adhesive backwards all along. Fry had struggled with keeping his page markers
in his hymn book, and having learnt about the adhesive from one of Silver‟s lectures thought this
adhesive could be the key.The key difference he explained was instead of coating bulletin boards,
3M could put the adhesive on a piece of paper and stick it to anything. By applying this adhesive
to a strip of paper, Fry could mark his pages, move the markers around and easily flip between
hymns without damaging the books.And the Post-It note was born. Spencer Silver could have
easily thrown away his weak adhesive and today there would be no Post-It notes. However,
because 3M encouraged Silver to share his discovery with coworkers in other fields, Art Fry was
able to keep track of his hymnalpages.
Questions:
• Elaborate the concept of intrepreneurship and how it helped spencer to be successful.
4) In 1994, Ken Kutaragi, a junior employee in Sony‟s sound labs bought his daughter a
Nintendo game console. Disappointed by the primitive sound effects he began working on sound
chip to improve Nintendo‟s next generation of consoles.Kutargi was nearly fired when Sony found
out. Then-CEO Norio Ohga decided to transform this side project into a joint partnership with
Nintendo. Instead of firing Kutaragi, he recognized the value of his innovation and encouraged the
creation of the “SPC7000” sound chip for Nintendo‟s CD ROM based gaming system, the Super
Famicom. Things were going well until Nintendo publically scrapped the partnership, striking a
deal with Sony competitor Phillips. Frustrated, Ohga then put Kutaragi to work developing Sony‟s
own gaming system, the PlayStation. The first PlayStation made Sony a major player in the games
market and introduced Sony‟s Computer entertainment division.Kutaragi was quickly promoted
through the ranks to manage this new area and continue to grow Sony‟s business, making the
PlayStation Two one of the most profitable gaming systems in history.Learning from Mistakes--
Had Sony fired Kutaragi upon discovering his side project, they would have lost one of their most
creative minds. Instead Ohga recognized entrepreneurship and creativity in his employee and saw
where it could take him. Luckily for Ohga, this act of faith turned into a remarkably profitable
investment changing the future of Sony‟s business.Great companies recognize talent and
innovation lurking within their organizations.No one understands businesses‟ daily operations
quite like its employees. This makes them the best source of potential knowledge for growth and
innovation.Internalentrepreneurs (better known as Intrapreneurs) represent a very special breed
capable turning ideas from daily life into remarkable business solutions.
Questions:
• Critically analyze the case and throw the light on the concepts covered.