| 1. | (a) | State whether the following statements are ‘True’ or ‘False’ with justification for your answer. If any given statement is ‘False’, you are required to give the correct statement. No credit will be given for answers without justifications. | 1x5 | |
| | | (i) | ‘Meta–Technology’ is the science and study of sociological and technological developments, value and trends–with a view to planning for the future. | | (0) |
| | | (ii) | ‘Loss Leader’ is the leader, who is unable to conceptualize and analyze strategic problems. | | (0) |
| | | (iii) | ’Management buy–in‘ refers to the purchase of all or part of a business firm from its owners by its managers. | | (0) |
| | | (iv) | ‘Merger’ is the purchase of controlling interest of another company. | | (0) |
| | | (v) | ‘Dogs’ are the products in a high–growth market but where they have a low market share. | | (0) |
| | (b) | Define the following terms (in not more than two sentences): | 1x5 | |
| | | (i) | Cash Cow | | (0) |
| | | (ii) | Tax haven | | (0) |
| | | (iii) | Franchising | | (0) |
| | | (iv) | Man power strategy | | (0) |
| | | (v) | Transfer price | | (0) |
| | (c) | Choose the most appropriate one from the stated options and write it down: | 1x10 | |
| | | (i) | The acquisition of ‘Hutch’ by ‘Vodafone’ is an example of | (1) | Horizontal Integration | | (2) | Forward Integration | | (3) | Vertical Integration | | (4) | Concentric Diversification |
| | (0) |
| | | (ii) | The agreement of Standard Chartered Bank with Manhattan Bank to acquire the letter’s entire issued share capital illustrates the case of | (1) | Take over Strategy | | (2) | Acquisition Strategy | | (3) | Merger Strategy | | (4) | Horizontal Integration Strategy |
| | (0) |
| | | (iii) | A Product line is a group of products that | (1) | Are closely related | | (2) | Are marketed through the same channel | | (3) | Perform a similar function for being sold to the same customers | | (4) | All of the above. |
| | (0) |
| | | (iv) | Michael Porter’s competitive forces model does not touch upon | (1) | Threats of new entrants | | (2) | Threats of substitute products or services | | (3) | Price strategy of substitute products or services | | (4) | Bargaining power of suppliers and customers. |
| | (0) |
| | | (v) | The BCG growth matrix is based on the two dimensions: | (1) | Market Size and Market Share | | (2) | Market Size and Profit Margins | | (3) | Market Size and Competitive Intensity | | (4) | None of the above. |
| | (0) |
| | | (vi) | Outsourcing is the | (1) | Spinning off of a value–creating activity to create a new firm | | (2) | Selling of a value–creating activity to other firms. | | (3) | Purchase of a value–creating activity from an external supplier. | | (4) | Use of computers to obtain value–creating data from the Internet. |
| | (0) |
| | | (vii) | New entrants to an industry are more likely when | (1) | It is difficult to gain access to distribution channels | | (2) | Economies of scale in the industry are high | | (3) | Product differentiation in the industry is low | | (4) | Capital requirement in the industry are high. |
| | (0) |
| | | (viii) | Which of the following is NOT an entry barrier to an Industry? | (1) | Expected competitor retaliation | | (2) | Economies of scale | | (3) | Customer product loyalty | | (4) | Bargaining power of suppliers. |
| | (0) |
| | | (ix) | Competitive advantage typically comes from | (1) | Individual resources | | (2) | One unique resource | | (3) | Several outstanding resources used independently | | (4) | The unique bundling of several resources. |
| | (0) |
| | | (x) | The existence of price–wars in the airline industry in India indicates that | (1) | Customers are relatively weak because of the high switching costs created by frequent flyer programs. | | (2) | The industry is moving towards differentiation of services. | | (3) | The competitive rivalry in the industry is severe. | | (4) | The economic segment of the external environment has shifted, but the airline strategies have not changed. |
| | (0) |
| 2. | (a) | "The internal environment of a typical business firm is assessed by a number of factors as a part of the internal appraisal". Explain briefly these appraisal factors. | 8 | (0) |
| | (b) | How can the business–level strategies of "Cost Leadership" and "Differentiation" be used to position the firm relative to the five forces of competition in a way that permits the earning of above average returns? | 4+4 | (0) |
| 3. | (a) | Discuss briefly the different strategies of "Joint Venture". | 8 | (0) |
| | (b) | Identify and discuss at least four major differences that make ‘services’ distinctive from the ‘products’. | 8 | (0) |
| 4. | (a) | List down separately the buyers‘motives and sellers’ motives for two firms negotiating a ‘merger’. | 4+4 | (0) |
| | (b) | Explain the Porters’ analysis on various activities of an organization into value chain. | 8 | (0) |
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| 5. | (a) | What is BCG Matrix? Discuss the Boston classification in detail. | 8 | (0) |
| | (b) | Discuss the buying process and its stages. | 4+4 | (0) |
| 6. | Bring out the difference between ‘Marketing’ and ’Societal Marketing’ concepts. Why is the latter so important? | 8+8 | (0) |
| 7. | (a) | Given below is an extract from the literary supplement of a leading newspaper. An Imprint of one's own "Earlier, Publishing houses, focusing on writing by women and books on women–oriented subject, might have been inconceivable. But now such Publishing houses, mostly with a distinct feminist slant to what they publish, have become a reality worldwide. Virago, Women's Press, Kali for Women, Stree, Labyrinth, Attic Press, Minnesota Women's Press, Street Women Press etc., have not only given women a voice long due to them, but have also earned themselves a respectable position in the Publishing Industry. In fact, Seagull Bookstore is possibly the only bookstore in the city of Kolkata that has a separate shelf for books on "gender". Seagull Bookstore has translated a lot of Mahasweta Devi’s works into English, which have reached many people all over the world." Does this convey any strategy–related message? If so, write in brief a note on the same. | 8 | (0) |
| | (b) | M/s. XYZ Ltd., is business organized as three divisions and Head office. The divisions are based on market groupings, which are Retail, Wholesale and Government. The divisions do not trade with each other. The main method of control of the divisions has been the requirement to earn a return on investment (ROI) of 15% per annum. The definition of return and capital employed is provided by Head office, as is the criterion rate of 15%. The recent experience of M/s. XYZ Ltd., is that the group, as a whole, has been able to earn 15% ROI but there have been wide variations between the results obtained by different divisions. This infringes upon another group policy that forbids cross–subsidization i.e., each and every division must earn the criterion ROI. M/s. XYZ Ltd., is now considering divestment strategies and this could include the closure of one or more of its divisions. The Head office is aware that the Boston Product Market Portfolio Matrix (BPMPM) is widely used within the divisions in the formulation and review of marketing strategies. As it is so widely known within the group and is generally regarded by the divisions as being useful, the Head office is considering employing this approach to assist in the divestment decision.
You are required to: | (i) | Evaluate the use by M/s. XYZ Ltd., of the ROI and its policy that forbids cross–subsidization. |
| (ii) | Describe the extent to which the BPMPM could be applied by M/s. XYZ Ltd., in its divestment decision. Evaluate the appropriateness of the use of BPMPM for this purpose. |
| 4+4 | (0) |
| 8. | Write a short notes on: | 4x4 | |
| | (a) | Market Signals | | (0) |
| | (b) | Market Databases | | (0) |
| | (c) | Target Markets | | (0) |
| | (d) | Market Positioning. | | (0) |
