Master of Business Administration- MBA Semester 4

MB0052-Strategic Management and Business Policy

Q1 Define the term strategy. Explain the concept of strategic window.

Ans. Strategy is a common direction set for the company and its various componentsto
accomplish a desired position in the future. A meticulous planning process results
instrategy. It is the comprehension of the goals which has logical step by step process.
Itdefines the general mission and vision of an organisation. It is important to consider
thatthe decisions taken by an organisation are likely to affect the employees, customers
andcompetitors.Strategy guides the organisation to achieve a long term goal. The strategy
is advantageousto the organisation through its configuration of resources within a
challenging environment.It helps to meet the requirements of market and stakeholder
expectations.Strategy is a plan that is aimed to give a competitive advantage to
the organisation overrivals through differentiation. Creating a strategy begins with extensive
research andanalysis. It is a process through which senior management concentrates on top
priorityissues tackled by the company to be successful in a long term.It is the design of
decisions in an organisation that sets its goals and plans to achieve it. Theorganisation plans
the future goals to contribute at large to its shareholders, customers andto the society.
Strategy is always improving and is amendable. It is a plan of futureactivities which is
aimed at the progress of an organisation. It is a set of directions toenhance the position of
the organisation in the overall market. Business strategy is themethod by which an
organisation achieves and maintains its success. If an organizationcannot identify its
strategy clearly then it will struggle to survive in the competitive market.A steadfast
strategy should be built to grow in the market.A fundamental concept is required to direct
an organisation to create a sustainable andsuccessful plan. The organisation must
understand the customer requirements and relate toits customers for the success of business
strategy. This understanding should be based onthe attitude of the organisation to progress
rather than focusing on a specific competitor oron current objectives. It is from this
principle that the other objectives follow. Businessstrategy is used to achieve competitive
advantage. The efficient development andimplementation of strategy depends on the
capability of the organisation. This includes theability to prepare the strategic goals and
implement the plans through strategicmanagement.
Levels of strategy
Strategy exists at different business levels. The different levels of strategies are as follows:


Corporate Strategy

This is regarding the general function and scope of the
business to meet the stakeholders expectations. As it is significantly
influenced bythe investors in the business, it is also called the critical level strategy.


Business Strategy

This is regarding how a business competes effectively in aparticular market. It includes
strategic decisions about the selection of products andmeeting customer requirements.


Operational Strategy

This is regarding how each part of the business is organisedand delivered to the corporate
and business level. Operational strategy focuses onissues of resources and practices of
an organisation.
Difference between Goals and Objectives of Business : -
Goals are statements thatprovide an overview about what the project should achieve. It
should align with thebusiness goals. Goals are long-term targets that should be achieved in a
business. Goals areindefinable, and abstract. Goals are hard to measure and do not have
definite timeline.Writing clear goals is an essential section of planning the strategy.






Q2. The essence of business continuity is that businesses need to be planned not only
for today, but also for tomorrow, that is, for the future. Write the meaning and
importance of business continuity planning. Explain any two strategies for business
continuity planning.

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Q3. Write a brief note on Strategic Audit.

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Q4. Price or market competitiveness of a product or business depends on its cost
competitiveness. Cost competitiveness implies two things: cost efficiency and cost
effectiveness. Explain the concept of cost efficiency of an organization. Analyze the
major factors of cost efficiency.

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Q5. Write short notes on the following:
(a) Divestment strategy
(b) Liquidation strategy
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Q6 Describe the different approaches to business ethics.
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