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Mid Term ExaminationMaster of Business AdministrationMBA-S-BBA-FRMGT604Strategic ManagementTime: 2 hours, Full Marks: 30

1. Answer the following questions (Any Two) 2*7.5=15

a. What is strategic management? Discuss the different tasks of strategic management process.The term strategic management refers to the managerial process of forming a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy and then over time initiating whatever corrective adjustments in the vision, objectives, strategy, and execution are deemed appropriate.Thus, it is the process through which managers undertake efforts to ensure long-term adaptation of their organization to its environment.

Developing a strategic vision and business mission; Setting objectives; Creating a strategy to achieve the objectives; Implementing and Executing the Strategy; Evaluating Performance, Monitoring New Developments and Initiating Corrective Adjustments.

b. What is companys external environment? Explain how a company can analyze the competitive pressures and strength of its external forces. All relevant forces outsides a companys boundaries called External Environment.

c. How value chain analysis can help a firm? Explain the company value chain and value chain for an entire industry with figures.Value chain analysis can help organisations to gain better understanding of key capabilities and identify areas for improvement. It can help them to understand how competitors create value; and help organisations to decide whether to extend or outsource particular activities.

2. Answer the following questions in brief (Any Five) 5*3=15a. Explain the strategies that are initiated in diversified enterprises.

Corporate Strategy is the overall managerial game plan for a diversified company.Corporate strategy consists of the moves made to establish business portions in different industries and approaches used to manage the companys group of businesses. Business strategy refers to the managerial game plan for single business. It is mirrored in the pattern of approaches and moves crafted by management to produce successful performance in one specific line of business.For a single business company, corporate strategy and business strategy are one and the same. Functional strategy refers to the managerial game plan for a particular functional activity, business process, or key department within a business.

A companys marketing strategy, for example, represents the managerial game for running the marketing part of business. A company needs a functional strategy for every major business activity and organizational unit. Operating Strategy concerns the even narrower strategic initiatives and approaches for managing key operating units (plants, distribution centers) and handling daily operating tasks. Operating level strategies

b. What is the purpose of strategy making? Please mention four strategic issues that stand in the way of companys success in the years ahead.

Positioning your company to be different from your competitors: either by performing different activities or else by performing similar activities differently. Strategy tells you whatnotto do so that you can prioritize effort to set your product or organization apart.

How to stave off market challenges from new foreign competitors? How to combat price discounting of rivals? How to reduce a companys high costs? How to sustain a companys present growthin light of slowing buyer demand? Whether to expand a companys product line? Whether to acquire a rival firm? Whether to expand into foreign markets rapidly or cautiously? What to do about aging demographics of a companys customer base?

c. What is low-cost provider strategy? Explain the reasons for the failure of the low-cost strategy.A companys strategy of selling its products at a price lower than its competitors is known as low cost strategy;

It may invite aggressive cutting by competitors. It may lead to price-war that may lead to lower profitability; Cost advantages may not sustain if competitors can easily imitate the strategy. When competitors are able to copy the cost advantages, low cost strategy will fail; If the low-cost product does not contain enough attributes to be attractive to prospective buyers, the strategy may fail. Low price is not always appealing to buyers; Attractiveness may be lost if the product is featured-poor or quality deficient; Cost saving technological breakthroughs by the competitors or the emergence of lower cost value chain models can nullify a low cost strategy.

d. Why is company situation analysis necessary? Name the questions mentioned by Thompson and Strickland that are considered in performing company situation analysis. Companys situation analysis prepares the groundwork for matching the companys strategy both its external and to its internal resources and competitive capabilities.

Question 1: How Well Is the Companys Present Strategy Working?Question 2: What Are the Companys Resource Strengths and Weaknesses and Its External Opportunities and Threats?Question 3: Are the Companys Prices and Costs Competitive?Question 4: Is the Company Competitively Stronger or Weaker than Key Rivals?Question 5: What Strategic Issues and Problems Merit Front-Burner Managerial Attention?

e. What is Differentiation Strategy? Name the common pitfalls and mistakes done in pursuing differentiation.

Differentiation strategies seek to produce a competitive edge by incorporating attributes and features into a companys product/service offering that rivals dont have;Anything a firm can do to create buyer value represents a potential basis for differentiation; If buyers see little value in unique attributes or capabilities a company stresses, then its differentiation strategy will get a ho-hum market reception. Common pitfalls and mistakes in pursuing differentiation include: Appealing product features are easily copied by rivals; Differentiating on a feature buyers do not perceive as lowering their cost or enhancing their well-being; Over-differentiating such that product features exceed buyers needs; Charging a price premium buyers perceive is too high; Not understanding or identifying what buyers consider as value.

f. What is SWOT analysis? Explain the steps in SWOT analysis.S W O T represents the first letter in S trengths W eaknesses O pportunities T hreats For a companys strategy to be well-conceived, it must be Matched to its resource strengths and weaknesses Aimed at capturing its best market opportunities and erecting defenses against external threats to its well-being

g. How focused low cost strategy differs from focused differentiation strategy?A focused (or market niche) strategy based on lower cost: concentrating on a narrow buyer segment and outcompeting rivals by serving niche members at a lower cost than rivals;

A focused (or market niche) strategy based on differentiation: concentrating on a narrow buyer segment and outcompeting rivals by offering niche members customized attributes that meet their tastes and requirements better than rivals product.

Mid Term ExaminationMaster of Business AdministrationMBA-S-BBA-FRMGT604Strategic ManagementTime: 2 hours, Full Marks: 30

1. Answer the following questions (Any Two) 2*7.5=15

d. What are the factors that shape a companys strategy? Discuss the strategies which are initiated at different levels in a diversified company?

e. Explain the value chain of a firm as an analytical tool of strategic cost analysis. Why a firm should use value chain technique for situation analysis?The primary analytical tool of strategic cost analysis is a value chain identifying the separate activities, functions, and business process that are performed in designing, producing, marketing, delivering, and supporting a product or service. A companys value chain shows the linked set of activities and functions internally. The value chain includes a profit margin because a markup over the cost of performing the firms value creating activities is customarily part of the price borne by buyers---creating value that exceeds the cost of doing so is a fundamental objective of business.

f. What is competitive strategy? Discuss the generic competitive strategies used to achieve or defend competitive advantage of a company. Competitive strategy consists of business approaches and initiatives it undertakes to attract customers and fulfill their expectations, to withstand competitive pressures, and to strengthen its market position;Competitive strategy has a narrower scope than business strategy. It deals exclusively with management action for competing successfully and providing superior value to customers.

2. Answer the following questions in brief (Any Five) 5*3=15h. State the advantages of strategic management in a business organization.

Providing better guidance to the entire organization on the crucial point of what it is we are trying to do; Making managers and organizational members more alert to the winds of change, new opportunity and threatening developments; Helping to unify the organization; Creating a more proactive management posture; Promoting the development of a constantly evolving business model that will produce sustained bottom-line success for the enterprise and ; Providing managers with rationale for evaluating competing budget requests-a rationale that argues strongly for steering resources into strategy-supportive, results-producing areas.

i. What is Driving Forces that tend to change competitive condition in the industry? Give some examples of most common Driving Forces.Industries change because forcesare driving industry participantsto alter their actions

Driving forces are themajor underlying causesof changing i