IMT 56 Strategic Management M2 - Sample

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IMT-56
SECTION - A
Q. 1. Define strategy, What are the common elements in successful strategy.

Answer: A good business strategy steers clear of destructive competition. It has to focus on
uniqueness, geared to delivering unique value to the important needs of target customers. Strategy
should not be confused with aspiration. For example, "to become a leader in technology" is as a
goal, not a strategy. A well-formulated business
Key Elements of Good Business Strategy
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Q. 2. Explain the multiple roles of strategy in a business firm.

Answer:Business people often hear the term "strategy" discussed in meetings with co-workers,
clients and other stakeholders. Yet there is considerable confusion about the meaning of the word
and how the development of a business strategy can be used to guide the company forward. A
business strategy helps marshal all of the company's resources toward a common goal.Business
strategies help to keep a company's focus on competition and profit improvement.
Roles of strategy in a business firm are:
Q. 3. Describe Value; does it have an importance in strategic business decisions?

Answer:A definition of value is, at a simplistic level, to 'do no harm'. An understanding of the
definition of business values and values in decision making is important in today's business
environment. Once you've gained that understanding, it is necessary to consider the impact of
valuable decision making and problem
Importance of value in strategic decision making
Q. 4. Explain the meaning of profits, what are the main determents of industry profit?
Answer: The surplus remaining after total costs are deducted from total revenue, and the basis on
which tax is computed and dividend is paid. It is the best known measure of success in an enterprise.
Profit is reflected in reduction in liabilities
Q. 5. Describe the role of organizational capabilities in strategy formulation.

Answer: Strategy is concerned with matching a firms resources and capabilities to the opportunities
that arise in the external environment. So far, the emphasis of the book has been on the
identification of profit opportunities in the external environment of the firm. In this chapter, our
emphasis shifts from the interface
Organizational role in strategy formation:
SECTION B
Q. 1. Identify the circumstances in which a firm can create a competitive advantage over a rival.
Answer:Competitive advantage is what enables a business organization to thrive. It is the objective
of strategy. It is the combination of elements in the business model which enables a business to
better satisfy the needs in its environment, earning economic rents in the process.
A firm may create competitive advantage due to the below reasons
Q. 2. What do you understand by the word Innovation, what mechanisms are effective in
protecting innovations.
Answer:The process of translating an idea or invention into a good or service that creates value or
for which customers will pay. To be called an innovation, an idea must be replicable at an
economical cost and must satisfy a specific need. Innovation involves deliberate application of
information, imagination and initiative in deriving greater or different values from resources, and
includes all processes by which new ideas
Protecting Innovation
Q. 3. Define vertical integration, what are the different types of vertical relationships.
Answer:When a company expands its business into areas that are at different points on the same
production path, such as when a manufacturer owns its supplier and/or distributor. Vertical
integration can help companies reduce costs and improve efficiency by decreasing transportation
expenses and reducing turnaround time, among other advantages.
Q. 4. Explain the benefits of a global strategy for a multinational corporation,
Answer: An enterprise operating in several countries but managed from one (home) country.
Generally, any company or group that derives a quarter of its revenue from operations outside of its
home country is considered a multinational corporation.
Benefits of global strategy
Q. 5. What is diversification; explain the various types of diversification.

Answer: Diversification is a risk management technique a company uses that makes use of a wide
variety of investments within the company. The under lying principle behind this system is that
asserts that different kinds of investment
Types of diversification
SECTION C
Q. 1. Describe a multibusiness firm, what are the problems these firms face in strategy
implementation.
Answer: Recent evolution of strategic analysis and choice has expanded on the core
competencynotion to focus on a series of fundamental questions that multi-business companies
shouldaddress in order to make diversification work.
Problems of successful implementation centre around how well or badly the existing organization
responds and how adequate its reporting proves to be.
Q. 2. What do you understand by the external environment, how does it help in building up a firms
strategy .
Answer: The external environment of an organization are those factors outside the company that
affect the company's ability to function. Some external elements can be manipulated by company
marketing, while others require the organization to make adjustments. Monitor the basic
components of your company's external environment, and keep a close watch at all times.
A company's external environment consists of threats and opportunities. Threats refer to

circumstances that could negatively influence sales and profits. Continuing with the bakery example,
the entry of a big-box grocery store next door could force the owner to change his product mix and
prices to retain existing customers and attract new customers. External opportunities refer to events
that could positively influence sales. The entry of a big-box store could be a positive because it will
attract hundreds of customers to the neighborhood every day.
Q. 3. The economic world is dynamic, how does a company manage in economic crisis.
Answer
Large or small, even the best managed businesses may be hit by an unexpected public relations
crisis. These can be recalls of dangerous or contaminated products, a civil product liability law suit,
or some other unforeseen disaster that may hurt sales, the bottom line, and reflect badly on a
company's image.
When a public relations crisis strikes, a CEO's initial reaction may be to stonewall the press and
refuse to comment. Public relations experts who have successfully handled numerous crises which
threatened to destroy a company's sales and public image say this is the wrong way to handle the
problem. In fact
Q. 4. Costs have a strong implication in having a competitive advantage do you agree with this
statement, what are the sources of cost advantage .
Answer:
Sources of cost advantage
Economies of scale
Economies of learning
Production techniques
Q. 5. Explain differentiation, what advantages does a firm accrue in differentiation.

Answer:Differentiation is an operation that allows us to find a function that outputs the rate of
change of one variable with respect to another variable. Your differentiation strategy is an
integrated set of action designed to produce or deliver goods or services that customers perceive as
being different in ways that are important to them.
Creates Value
CASE STUDY 1
Questions
Q. 1.What were the reasons for Lehman brothers bankruptcy?
Answer: The bankruptcy of Lehman Brothers was a result of the investment banks exposure to the
2007-2010 financial crisis. In fact, the demise of the investment bank would come to symbolize the
crisis. Therefore, in order to understand the Lehman Brothers bankruptcy, a consummate
understanding of the 2007-2010 financial crisis is requisite. As such, an examination of crisis will
serve as introductory.
Below are the main reasons
Q. 2.What lessons would you learn from the Lehman brothers bankruptcy?
Answer:
Lessons:
CASE STUDY - 2
Questions
Q. 1. What was the type of strategy Tatas adopted during the launch of Nano.
Answer: The introduction of the Nano received media attention due to it's targetedlow price. The
car is expected to boost the Indian Economy, create entrepreneurial-opportunities across India as
well as expand the Indian car market by 65%.
Strategy:
Q. 2.pl help the company in working out a suitable strategy for the success of the car.
Answer:
Focus on youth: To build a youthful and aspirational value around the brand, Tata Motors through its
'awesomeness' branding and marketing campaign should work on makeover campaign
more variants with new and advanced features
Q. 3.by using a SWOT analysis outline the failure of the car in the Indian markets.
Answer:
SWOT Analysis
Q. 4.what in your opinion is the future of such cars in Indian markets.

Answer: Rapidly growing populations and rising incomes will drive an enormous rise in car use and
greenhouse gas emissions across Latin America, Africa, the Middle East and Asia by 2050.
These

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For complete answer contact http://solvedcare.com or email solvedcare@gmail.

com for best and

Q. 1. Define strategy, What are the common elements in successful strategy.

Q. 2. Explain the multiple roles of strategy in a business firm.

Q. 3. Describe Value; does it have an importance in strategic business decisions?

Profit is reflected in reduction in liabilities

Q. 5. Describe the role of organizational capabilities in strategy formulation.

Q. 5. What is diversification; explain the various types of diversification.

A company's external environment consists of threats and opportunities. Threats refer to

Q. 5. Explain differentiation, what advantages does a firm accrue in differentiation.

Q. 4.what in your opinion is the future of such cars in Indian markets.

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