MB0052 – Strategic Management and Business Policy - 4Credits (Book ID: B1314)
Set- 1 (60 Marks)
Note: Each Question carries 10 marks. Answer all the questions.
1. What is meant by ‘Strategy’? Differentiate between goals and objectives. Answer:
Strategy:- The method by which an organization systematically achieves its future objectives. A business cannot progress for a long term without a reliable strategy. its conceptual evolution, scope and its importance, distinction between goals and objectives, analyzing strategic intent through vision and mission statements and finding out the significance of core competencies of business and critical success factors.
Difference between Goals and Objectives of Business
|Goals |Objectives | |Are long term |Are usually meant for short term | |Are general intentions with broad outcome |Are precise statements with specific outcome | |Cannot be validated |Can be validated | |Are intangible can be qualitative as well as quantitative |Are tangible are usually quantitative and measurable | |Are abstract |Are concrete |
2. Define the term “Strategic Management”. What are the types of strategies?
Strategic management is a systematic approach of analyzing, planning and implementing the strategy in an organization to ensure a continued success. Strategic management is a long term procedure which helps the organization in achieving a long term goal and its overall responsibility lies with the general management team. It focuses on building a solid foundation that will be subsequently achieved by the combined efforts of each and every employee of the organization.
Types of Strategies
The board of directors and chief executive officers are involved in developing strategies at corporate level. Corporate level strategies are innovative, pervasive and futuristic in nature
Business level strategy relates to a unit within an organization. Mainly strategic business unit (SBU) managers are involved in this level. It is the process of formulating the objectives of the organization and allocating the resources among various functional areas. Business level strategy is more specific and action oriented. It mainly relates to how a strategy functions rather than what a strategy is in corporate level.
Tactical of functional level
The functional strategy mainly includes the strategies related to specific functional area in the organization such as production, marketing, finance and personnel (employees). Decisions at functional level are often described as tactical decisions.
Operational level is concerned with successful implementation of strategic decisions made at corporate and business level. The basic function of this level is translating the strategic decisions into strategic actions.
3. Describe Porter’s five forces Model.
Porters Five Force model
Michael E. Porter developed the Five Force Model in his book, Competitive Strategy. Porter has identified five competitive forces that influence every industry and market. The level of these forces determines the intensity of competition in an industry. The objective of corporate strategy should be to revise these competitive forces in a way that improves the position of the organisation.
Figure 3.4 describes forces driving industry competitions....