| 1. | (a) | State whether the following statements, are ‘True’ or ‘False’. If ‘False’, put up with the correct statement: | 1x5 | |
| | | (i) | ‘Concentric Diversification’ consists of making entirely new products for new classes of customers. | | (0) |
| | | (ii) | ‘Divestment’ is pulling out from certain product market areas. | | (0) |
| | | (iii) | ‘Forward Integration’ means in–house production of critical inputs for the main business. | | (0) |
| | | (iv) | ‘Leveraged take–over’ is achieved using a high production of debt. | | (0) |
| | | (v) | ‘Merger’ is the purchase of controlling interest of another company. | | (0) |
| | (b) | Define the following terms in not more than two sentences: | 1x5 | |
| | | (i) | Counter trade; | | (0) |
| | | (ii) | Core business; | | (0) |
| | | (iii) | Fiscal policy; | | (0) |
| | | (iv) | Loss Leader; | | (0) |
| | | (v) | Tax haven. | | (0) |
| | (c) | Choose the most appropriate one from the stated options and write it down: | 1x10 | |
| | | (i) | ‘Harvesting’ allows a market share to | (A) | Fall in order to earn better short–run profits | | (B) | Rise in order to earn better short–run profits | | (C) | Fall in order to earn long–run profits | | (D) | Rise in order to earn long–run profits. |
| | (0) |
| | | (ii) | The scheme of gaining ownership and control of raw materials and component supplies is termed | (A) | Forward integration strategy | | (B) | Backward integration strategy | | (C) | Horizontal integration strategy | | (D) | Downstream integration strategy. |
| | (0) |
| | | (iii) | ‘Corporation vision’ is the same as | (A) | Corporate dream | | (B) | Corporate mission | | (C) | Corporate goal | | (D) | Corporate strategy. |
| | (0) |
| | | (iv) | ‘Niche’ is similar to the | (A) | Growth strategy | | (B) | Milking strategy | | (C) | Flanking strategy | | (D) | Survival strategy. |
| | (0) |
| | | (v) | PIMS attempts to establish | (A) | The profitability of various marketing strategies | | (B) | The link between the size of return on capital and market share | | (C) | Both of (A) and (B) | | (D) | None of (A) and (B) |
| | (0) |
| | | (vi) | Successful ‘differential strategy’ allows a company to | (A) | Gain buyer loyalty to its brands | | (B) | Charge too high a price premium | | (C) | Have product quality that exceeds buyers’ needs | | (D) | Depend only on intrinsic product attributes |
| | (0) |
| | | (vii) | For an actor in Bollywood, his outstanding performance would be a/an | (A) | Asset | | (B) | Strategic asset | | (C) | Core competency | | (D) | Capability |
| | (0) |
| | | (viii) | Intensity of competition is ……… in lower–return industries. | (A) | Lowest | | (B) | Non–existent | | (C) | Highest | | (D) | Non important |
| | (0) |
| | | (ix) | A supplier group is powerful if | (A) | It is not concentrated | | (B) | Offers unique products | | (C) | Its customers can backward integrate | | (D) | There are no switching costs. |
| | (0) |
| | | (x) | A company’s actual strategy is | (A) | Mostly hidden to outside view and is known only to top–level managers. | | (B) | Typically planned, well in advance and usually deviates little from the planned set of actions and business approaches because of the risks of making on the spot changes. | | (C) | Partly proactive and partly reactive to changing circumstances. | | (D) | Mostly a function of the strategies being used by rival companies particularly those companies that are industry leaders. |
| | (0) |
| 2. | "The government as a segment my be regarded both as an aid and as an impediment to business." Discuss clearly. | 8+8 | (0) |
| 3. | (a) | Unrelated Diversification can sometimes work well. What are the reasons behind the success? Elaborate giving an example. | 8 | (0) |
| | (b) | What do you mean by the term ‘barriers of entry’? Briefly state some of the categories of ‘barriers of entry’. | 2+6 | (0) |
| 4. | Case Study:
X Ltd., is a small family controlled manufacturing company. In its 60 year history, the company has grown to the extent that it now employs 75 employees, producing a wide and diverse range of industrial products and special components. The company has increased in size from its small original base. However, it has never employed a strategic management approach for its development and has relied on operational decision – making to determine priorities. X Ltd., has never gathered any information relating to its markets. In recent years, the company has experienced a reduction in turnover and profitability and is assessing how it might redress the situation. | (a) | You explain how strategic management different from operational management to the directors of X Ltd. After being convinced, the directors of X Ltd., have now decided to introduce strategic management approach. Which will assist in the selection of appropriate strategies for future development of the company. |
| (b) | Discuss the cultural and organizational changes which X Ltd., will need to implement in order to successfully introduce strategic management. |
| 6+10 | (0) |
|
| 5. | (a) | Discuss the role of product development as a part of an overall marketing strategy. | 8 | (0) |
| | (b) | Explain why a direct relationship between the cost of production and selling price may be inappropriate as a pricing strategy. | 8 | (0) |
| 6. | Explain the following product market strategies that a firm can pursue; | 4x4 | |
| | (a) | Market penetration; | | (0) |
| | (b) | Product development; | | (0) |
| | (c) | Market development; | | (0) |
| | (d) | Diversification. | | (0) |
| 7. | (a) | You are considering the acquisition of a company that is in a turnaround situation. Which are the factors to which you would give particular attention at each of the three phases of the merger process? | 8 | (0) |
| | (b) | ‘Once a farm has identified the right segment, the appropriate positioning is normally obvious.’ Do you agree? Justify your answer with some real life examples. | 8 | (0) |
| 8. | Write short notes on any four out of the following: | 4x4 | |
| | (a) | Organizational Buying Behavior; | | (0) |
| | (b) | Family Branding Strategy; | | (0) |
| | (c) | Momentum Strategy; | | (0) |
| | (d) | Core Business Analysis; | | (0) |
| | (e) | Internet as a major technological force changing business around the world; | | (0) |
| | (f) | Major factors on which the intensity of competition depends. | | (0) |
