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Ms-11 Question bank (12)
Ms-11 Question bank
Ms-11 Dec 2009
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-11 Dec, 2009
MS-11 : STRATEGIC MANAGEMENT
1. Briefly discuss two important changes in the Indian Business Environment in each of the following areas giving examples.
—Economic
- Social
—Political
---Technological
2. Explain the different levels of strategy. Discuss the importance of strategy for an organisation.
3. What are Mergers and Acquisitions as a part of diversification strategy ? Discuss the different forms of Mergers with suitable examples. Give five reasons of Merger and Acquisition Strategy
4. Critically discuss the perspectives on strategy and structure with respect to :
a) Porter's Perspective
b) Peter and Waterman's Perspective
5. Write short notes on any two of the following :
a) Leadership styles
b) Diversification
c) Experience curve
d) Mckinsey's 7s framework
6. Read the analyse the case and answer the questions given at the end.
The mobile phone industry
Competitive rivalry
By 2004 the competitive rivalry between network operators was becoming intense in most countries. In the UK numerous different packages were on offer. Initially if a customer threatened to withdraw, operators would offer a new free phone and several free months of line rental as an enticement to stay. However, as markets matured, emphasis was placed on price, coverage, general customer service and the offering of new products and services (with the advent of 3G technology).
Buying power
Buying power of consumers was high as they had so much choice. The danger for providers was confusing potential customers with over-complex offers. Independent retailers (e.g. in the UK Carphone Warehouse) competed with those owned by network operators (e.g. Vodafone). Others offered cheaper deals through newspaper adverts and the internet.
Power of suppliers
Equipment manufacturers competed for market share. Prior to 3G launch the big manufacturers-
Nokia, Motorola and Ericsson - had concerns about market saturation. Supplier power was increasing as their sector consolidated through alliances (such as 'Casio and Hitachi in 2003). Network operators could be held back by supply difficulties as with the Hutchison (3-UK) launch of 3G services in 2003/4.
Threat of substitutes
In the 1990s the main threat of substitution was 'technological regression' where customers returned to fixed-line telephony because of high mobile call charges. By 2000 price decreases and the 'need' for everyone to have a mobile phone reduced this threat. By 2004 the greatest threat was the convergence of mobile telephony with PDAs (Personal Digital Assistants) and with the internet (e.g. MSN Messenger). This could switch both voice and text messaging onto the internet -avoiding mobile phone operator networks.
Location technology in mobile phones (making the caller easy to find) might encourage this 'drift'.
Threat of entry
The threat of entrants was low because of the enormous cost in both licences (-E22bn (€33bn) in the UK alone) and in the general investment needed to be a player in new 3G (broadband) technology.. Power was a function of who was ahead of the game in 3G and had the licences to operate a service. There was only a threat of entrants if public policy towards this heavy regulation of the sector changed in future.
Questions :
Viewing this industry through the eyes of a network operator (such as Vodaphone).
1. Which would you regard as the three most important threats to your business ?
2. How could you respond to each of these to lessen their impact ?
3. Answer questions 1 and 2 for an equipment manufacturer - such as Nokia.
4. What are the main benefits and limitations of five forces analysis ?
Ms-11 Dec 2010
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-11 Dec, 2010
MS-11 : STRATEGIC MANAGEMENT
1. Briefly discuss the process of strategy
(a) for a Single Business Unit (SBU)
(b) for a Multiple Business Units. Illustrate your answer with the help of examples.
2. 'Technological factors represent major opportunities and threats which must be taken into account while formulating strategies. Critically comment on the statement keeping in mind the technological advances in the field of agriculture. Also explain how these advances have affected in tapping the opportunities available overseas.
3. Explain the relationship between corporate level strategy, business unit strategy and functional strategy. How are these strategies different from each other ? Explain with the help of examples.
4. Briefly explain 'Ansoff's Product Market Expansion Grid', as a useful tool in discovering growth opportunities.
5. Write short notes on any two of the following:
(a) Shell's Directional Policy Matrix
(b) Mother - Daughter Type structure
(c) Business Portfolio Analyks
(d) Strategic Alliances.
6. Read the following illustration and answer the questions given at the end : Agility through outsourcing with British Telecom
British Telecom (BT) promotes its outsourcing business with the strap-line 'Agility
through Outsourcing'. Many organisations both in the public and private sector have reviewed their internal processes and found that they lack the necessary resources to meet the increasing challenges put on them by changing demands of their customers... They have turned to companies whose core competences fill the gaps in their internal structure. They hand over the running of whole business functions, such as payroll or training, gaining the expertise they need to meet that step change requirement forced on them by the expectations of their customers, but at a predictable cost.
BT offers its clients the opportunity to outsource its information, communication and technology (ICT) functions to provide them with 'freedom from technology' : Making an investment in technology requires a great deal of expert knowledge to ensure that it becomes an enabler for business rather than a barrier to it. Often organisations find they don't have that expertise in - house. The solution is either buying that expertise in, further raising the level of investment, or handing over the responsibility of managing their ICT systems to a third party like BT that has the relevant skills at its core.
BT has such skills, it argues, because in its own transformation from a public sector organisation to a private company, it placed ICT processes and management at its core, reducing its own cost base and focusing on competitive advantage and customer care by aligning its people, processes and technology. The result is that it believes it can offer a:
Totally integrated approach to IT infrastructure, software systems and applications which enables us to manage more effectively on behalf of our customers... BT can take some or all of the operational responsibility on behalf of the clients' ICT departments.
We are able to provide a customised communication service that involves taking over the customer's existing network, including services from other carriers. All solutions are tailored to meet the specialised needs of each customer... our services will go to the extent of transferring assets including staffing resources. We buy the assets from our customers that we need to serve their top technology needs. As a result they get a capital injection by removing those assets from the balance sheet... these organisations can then plough the money they saved into products that benefit their core competences, focused on giving a high quality service to their customers.
BT suggests further benefits to potential clients. Its services : Greatly benefit organisations that have a specific process or service, which depends greatly on leading edge technology, but for which there is little in-house expertise. The benefits include :
• Achieving costs savings and predictable costs, improving piece of mind through reduced risk.
• Gain access to funds which otherwise would not be available for potential large scale projects.
• Reduce the risk of business change by involving economies of scale from BT.
• Increased agility to reach new markets or new geographies.
• Increased agility to change your business in line with changes in the environment.
• Take advantage of access to resources in expertise not available internally.
• Improve access to technology, innovation and scarce technical skills.
• Reduce management overheads and supplier interfaces.
• Achieve productivity gains leading to lower costs.
Questions :
(1) Other than ICT, what other areas of business operations might benefit from outsourcing ? Specify some of the benefits that might be gained.
(2) Given the benefits stated in this illustration why might businesses choose to keep their ICT or other business operations in-house ? Explain.
Ms-11 Dec 2011
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-11 Dec, 2011
MS-11 : STRATEGIC MANAGEMENT
1. Distinguish between
(a) Strategy v/s Policies
(b) Strategy v/s Tactics and explain giving examples.
2. How does the value chain framework work as a guide to any firm's strengths and weaknesses? Give examples in support of your answer.
3. (a) Discuss the cost of differentiation under following leads :
(i) Training.
(ii) Promotion of a product.
(iii) Hiring skilled workforce.
(iv) I mproving quality of the product.
(b) Discuss the Advantages and Disadvantages of Differentiation.
4. ' An organization can "go international" by crossing domestic borders as it employs various growth stratagies'. Keeping the statement in mind explain various ways through which a firm can expand internationally. Give examples in support of your answer.
5. What are the different methods of control ? Discuss them in brief giving examples.
6. Read The following case and answer the questions given at the end.
Abhinav Kumar never failed to enjoy his company's establishment-day jamboree. That was one time in the year when his company, Total Industries, really splurged on its employees. Assistant managers and about 122 of them-would be flown into Mumbai from all the branch offices, and lodged in hotels for 2 days.
The get-together cost the company Rs. 50 lakhs, but Kumar knew it was a small price to pay for the credibility it generated. After all, Total was no longer the textile peddling, one-man outfit his grandfather had founded back in 1927. Rather, it was a Rs. 6,000 crores plus conglomerate with interest in consumer electronics, switchgears, batteries, soaps and oils.
Being a largely family managed company, Total is likely to be perceived as a benevolent
employer. Today, watching is employees come together. like a big family, Kumar felt proud about his grand-father and father. He turned his gaze to where his father was sitting, 2 tables away to his right, chatting animatedly with Srikant Suresh, President (Consumer Durables Division). In another 5 minutes, Kumar Senior would be up on the dais, making his annual address to the empolyees. Kumar knew what his father would be talking about. They had discussed it over dinner last night. Ratika Sahai, the young President (Batteries), took the microphone as soon as the evening's last item, a dance recital, came to an end. "Thank you Rachana for your wonderful performance. Ladies and Gentlemen, before we wrap up this evening. I would like to invite our Chairman to the dais for his customary address". Amidst loud applause, Deepak made his way to the dais.
"I hope all of you had a good time over the last 2 days. Although this is only our fourth get-together in as many years, I feel a tremendous sense of belonging. I hope you feel the same because, as a company, we will prosper only when all of us contribute our
best".
Total Vision 2010'
To become a market-leader in each of the four business segments by ensuring total
quality, customer satisfaction, and continuous innovation.
"As I see it, " Deepak continued," the challenges before us are many. We need to become a more efficient company. We need to become more cost-competitive. Our products need to be of better quality, and we need to become more customer-friendly. The business environment today is vastly different from what it was when I joined Total. Unless we regularly re-vitalise the organization, change our mindsets, and revisit our basics, we cannot be competitive. What kind of company should Total be in another decade?"
For about half a minute nobody replied. Then, Manoj Kohli, the President of the switchgears division, stood up to answer the question. "Probably the largest company in the country", he said.
"Certainly the largest company, Manoj, but also the market-leader in all the segments we choose to be in", Deepak elaborated. "Do all of you feel that way ?" he threw the question at the audience.
"Yes," pat came the chorus.
"Let's keep that in mind when we return to our jobs tomorrow morning, and work towards making it happen. Once again, thank you all for being here, and I hope it was worth your while," Deepak said concluding his address. Kumar met up with his father near the exit, "Sir can you give me a ride back home," he asked. Kumar always "Sir-ed" his father in front of other executives.
"What happened to your car ?"
" I have it but I want to talk to you".
Deepak gave him a quizzical look but did not say anything. After saying good bye to his departing colleagues, Abhinav joined his father who was already seated in the car.
"So, what do think dad? Did it go off well ?"
"Of course, it did. Do you have any doubts?"
"Not about the party but something did strike me as odd."
"What ?" Deepak asked, his curiosity piqued.
"Remember when you asked what kind of a company Total should be in another 10 years?"
"Yes, What about it ?"
Didn't it strike you as odd that there was a long silence before Manoj replied ?
"I think they were hesitant. It's not everyday that I ask them a question like that."
"They were hesitant, dad, but not because they were shy. Don't you realize they don't know what we want Total to be ?rThey do not know what our vision for Total is."
"Bah ...don't give me your management jargon. I don't care if they don't know of our
"vision". We have done perfectly well over the last 73 years without your 'vision' thing," Deepak scoffed.
"Those days, our executives just took orders from you and grandpa. But, today we are asking them to act like profit-centres: Don't you think having a common vision which
everybody knows about will help ?"
"Do you think Total got to where it is today without a vision ?"
"No. But the vision is locked up inside the heads of people like you, me, and our top executives. We have not discussed its contours and documented a formal statement".
"I don't know' Abhi, I would still trust my gut feel than go by some fancy vision
statement. It looks good hanging from your office wall".
"No, dad," Abhinav persisted. "It's just like you and I having our breakfast or dinner
talks. Only, this time it will be communicated to all the employees in the company".
"I don't feel comfortable about your management mumbo-jumbo. But we will do it
anyway".
The car pulled into the drive-way of their sprawling mansion.
"Thanks, dad. Eventually, you'll see that it works."
"I hope so, Good night, son". Next morning, Abhinav asked his four presidents-Srikant
Suresh of Durables, Manoj Kohli of Switchgears, Guneen Roy of soaps and oils, and
Ratika Sahai of Batteries-to join him in the conference room. Without much ado, he
got to the point as soon as the meeting began.
"Tell me something frankly. Do you think Total has a vision where it wants to go?"
His audience of 4 was momentarily taken aback by the question. They looked at each
other, before Guneen replied : "Of course, aren't all of us committed to making Total
the best company in the industry?"
There are two things involved here, Guneen. One, only you and I seem to know where
Total is headed. And two, even we see the final goal differently. We have been so
caught up with our day-to-day operations that we haven't articulated the big picture".
"You are right, "Kohli said.
"But how do you develop a vision, for a company that is as diversified as ours ?"
Questioned Ratika. "Should we find a common thread that runs across all our businesses and build the vision around it, or develop separate vision statement for each of them?"
"I think the unit-specific vision would make sense provided we were to spin off our divisions into separate companies, "Guneen said... "Given our current position, we should identify the unique set of skills that straddles the 4 divisions".
"In fact, I do see some common characteristics," said Kumar "One, our businesses are volume-driven. Two, the sales are largely dealer-led. Three, our products cater to the mass market, and they are sold on the economy plank. So, what is the core proposition
that binds them all ? Obviously, it is value-for-money. So, should our vision be built
around this proposition ?"
It's my sense that we should," Kohli said "Look at our market shares. In refrigerators, we have 1/5 th of the market; it's 23 percent in switchgears, and 17 percent in CTVs.
Our market share in batteries is modest because it's a relatively new business for us. Of course, soaps and oils is a legacy business, which Guneen is trying hard to turn around".
I feel that connected to the issue of vision is also the question of strategy," Ratika noted.
"It must make a fit with the vision."
"I think this is what we should do", Kumar opined. "As a first step, do an in-house vision poll to find out what our people feel about it. We'll work on the strategy thereafter."
It took Total about 2 months to finish the in-house poll. The results were revealing.
There was a stark absence of vision awareness below the middle-management level. In fact, the clerical cadre was not even sure that Total had a vision.
"This is scary, dad," Kumar had told his father the evening the poll results came in.
"But do you think all our employees are capable of understanding the complexities of the business ?" his father had asked.
"May be not, but they'll appreciate transparency. And if we keep our vision simple-not simplistic, though I don't see why they won't buy it".
"I have my reservations, Abhi. Can we develop a meaningful, shareable vision for all our businesses ? How should the vision be put across, and how should we manage the mechanics of developing this vision without trivialising what we have toiled to build over the years, or scaring our employees away with too high a vision ?"
QUESTIONS :
(a) What should be the basis of the vision statement of Total Industries: Value for money or anything else ? Explain clearly.
(b) How can Total Industries develop a meaningful shareable vision for all its businesses ?
(c) Is it possible for Total Industries to develop the vision statement through active employee involvement and participation ? If yes, outline the steps in a sequential way.
(d) What are the dangers of building a vision statement through a bottom-up process ?