TRAINER MANUAL

Integrated Strategic
Management

Prepared by:

Mrs. Swati Bhandari

Lecturer
New Horizon Leadership Institute
Bangalore
I. COURSE OVERVIEW
Strategic or institutional management is the conduct of drafting, implementing and
evaluating cross-functional decisions that will enable an organization to achieve its long-
term objectives. It is the process of specifying the organization's mission, vision and
objectives, developing policies and plans, often in terms of projects and programs, which
are designed to achieve these objectives and then allocating resources to implement the
policies and plans, projects and programs. Strategic management has always been an
essential part of an organization. In today’s scenario, where global competition is existent
and everything is uncertain, survival of any company depends mainly upon the strategies
that it adopts.

Considering this need and importance of quality, the course is designed to provide a
theoretical and practical exposure to the students. The course will enable the students to
know about different strategies that they can apply in different situations in their
respective organizations. The course is structured in seven parts giving knowledge about
the different levels of strategies, strategic formulation process, SWOT analysis, strategic
implementation and strategic evaluation.

II. COURSE OBJECTIVE

To formulate strategies for an organization.

To be able to carry out strategic audit in an organization.

To understand the strategic management process from an integrated and holistic
view.

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III. COURSE STRUCTURE

1. Introduction to strategic management process

 Strategy and its characteristics

 Strategic Management
 Strategic Management Model
 Mission, Vision, Objectives
 Need and Challenges
 Role of Board of Directors and Top Management

2. External Environment

 External Audit
 External Environment Analysis – Scanning, Monitoring, Forecasting,
Assessing
 Analysis of General Environment – Demographic, Economic, Political,
Technological, Socio-Cultural
 Industry Analysis
 Competitor Analysis
 Porter’s 5 forces model driving industry competition

3. Internal Environment

 Internal Audit
 Organizational analysis
 Value chain analysis
 Resource Analysis

4. Business Level Strategy

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  Situation analysis using SWOT tool
 Generating alternatives strategies using TOWS matrix
 Porter’s Competitive strategies
 Business-level cooperative strategies

5. Corporate and Functional Strategy

 Corporate level cooperative strategies

 Corporate Level – Growth strategies, Stability strategy, Retrenchment
strategies
 Corporate Portfolio Frameworks – BCG Growth-share matrix
 Functional Strategies- Marketing, Financial, Production, R&D, Purchasing,
HR and Information system Strategies

6. Strategy Implementation

 Implementing Strategy
 Management Perspectives
 Organisation Architecture & Structure
 Structure & Strategy
 Organisational Culture

7. Evaluation and Control

 Strategy Evaluation Framework

 Process - Measuring Performance, problem in measuring performance, taking
corrective actions
 Auditing and Control

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IV. COURSE KEY LEARNING AREAS
The key learning areas are:

Learn the concept of strategy and its different types.

Learn the basic framework of strategic management.

Learn how to formulate strategies in an organisation.

Learn how to implement strategies.

Learn how to evaluate and control strategic management process.

V. COURSE OUTCOME
At the end of the course students would be able to:

Know about the concept of strategy and how formulating and implementing
strategies is important for an organization.

Know how to conduct SWOT analysis of an organization.

Know how strategies can be formulated at three levels of organization.

Know how various strategies can be implemented and evaluated in an
organisation.

VI. COURSE BENEFITS

This course would enable the students to-

Understand the concept of strategy and how its creation and management is
important.

Understand the basic concept and framework of Strategic Management.

Find ways to formulate and implement strategies effectively in the organization.

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VII. TEACHING/TRAINING METHODOLOGY
The method of training would be through lectures, power point presentations, case
studies, presentations by the students, group representation, task execution, assignments,
class tests and group discussions.
Guidelines for internal assessment:
Internal assessment would comprises of the following segments-

1. Quizzes- Quizzes would be taken after the completion of few chapters to test the
understanding of the concepts by the students. Objective type quizzes would also
prepare the students for the multiple type questions, thereby preparing them for the
examination.

2. Assignment-Topics for them would be prior given to the students during the course
tenure. Four assignments would have to be completed. These topics should be
comprehensively written covering all the possible aspects of it. Five assignments and
five case studies will be given to each student which has to be submitted as on when
requested.
3. Seminar / Class presentation- Students should present the case studies either in
group or individually depending upon the trainers request and this will test their
communicative ability, together with the knowledge of the subject, and their group
dynamics.

4. Class Test - Test will be conducted on a cycle basis on every Monday afternoon by
the respective subject trainer with the syllabus covered till that date. This helps the
trainer to continuous evaluation and the students will study day to day portions
covered.

5. Attendance – 85% of the attendance in each subject is compulsory to take up the

each trimester examinations failing on which the student will not be permitted to take
up the examinations.

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6. Paper Reading – Every student has to read the suggested paper and should note
down the important happening in the business world and should maintain the cuttings
of the same and should be produced when remained.

Satisfying all the above conditions a student is eligible for a healthy evaluation.

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 LESSON PLAN
POST GRADUATE DIPLOMA IN MANAGEMENT

Course: PGDM 304 Integrated Strategic Management

Session: 35 hours
Faculty: Swati Bhandari
No. of Pedagogical Planned Actual
Topics Remarks
Classes Tools Date Date
1 Strategy and its Slides/Blackboard 26/2/09
characteristics,
Strategic
Management
1 Strategic Slides/Blackboard 27/2/09
Management
Model, Mission
and Vision
2 Mission, Vision, Slides/Blackboard 2/3/09
Objectives -
Meaning,
Components/
Characteristics,
Preparation of
mission, vision
1 Preparation of Slides/Blackboard 5/3/09
mission, vision;
Mission vs. Vision
1 Hierarchy of Slides/Blackboard 6/3/09
objectives, Setting
Objectives
2 Need and Slides/Blackboard 9/3/09
Challenges of SM,
Role of Board of
Directors and Top
Management;
External Audit,
External
Environment
Analysis –
Scanning,
Monitoring,
Forecasting,
Assessing
1 Analysis of Slides/Blackboard 12/3/09

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 General
Environment –
Demographic,
Economic,
Political,
Technological,
Socio-Cultural
1 Industry Analysis Slides/Blackboard 13/3/09
2 Competitor Slides/Blackboard 16/3/09
Analysis, Porter’s and Discussion
5 forces model
driving industry
competition; Case
Study
1 Internal Audit, Slides/Blackboard 19/3/09
Organizational
analysis
1 Value chain Slides/Blackboard 20/3/09
analysis
2 Resource Analysis, Slides/Blackboard 23/3/09
Situation analysis
using SWOT tool,
Generating
alternatives
strategies using
TOWS matrix
1 Porter’s Slides/Blackboard 26/3/09
Competitive
strategies
2 Business-level Slides/Blackboard 30/3/09
cooperative
strategies;
Corporate level
cooperative
strategies,
Corporate Level –
Growth strategies
1 Corporate Level - Slides/Blackboard 2/4/09
Stability strategy,
Retrenchment
strategies,
Corporate
Portfolio
Frameworks –
BCG Growth-
share matrix

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1 Functional Slides/Blackboard 3/4/09
Strategies
2 Functional Slides/Blackboard 13/4/09
Strategies, Case
Study
1 Implementing Slides/Blackboard 16/4/09
Strategy,
Management
Perspectives
1 Organisation Slides/Blackboard 17/4/09
Architecture &
Structure
2 Organisation Slides/Blackboard 20/4/09
Architecture &
Structure,
Structure &
Strategy,
Organizational
Culture
1 Organisational Slides/Blackboard 23/4/09
Culture, Strategy
Evaluation
Framework
1 Strategy Slides/Blackboard 24/4/09
Evaluation
Framework,
Process -
Measuring
Performance
1 Problem in Slides/Blackboard 30/4/09
measuring
performance,
taking corrective
actions
1 Auditing and Slides/Blackboard 7/5/09
Control
1 Case Study Discussion 8/5/09
3 Revision Session/ Group 11/5/09
Assignment III Presentations
35

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 SUGGESTED READINGS

1. Ajit Prasad Extremely Short Cases on Strategic Management Excel Books 2003
2. Arthur A Thompson A J Strickland John E Gamble Arun K Jain Crafting and
Executing Strategy Concepts and Cases Tata McGraw- Hill Publishing 2006
3. Azhar Kazmi Business Policy and Strategic Management Tata McGraw- Hill
Publishing 2002
4. Charles W.L. Hill Gareth R. Jones Strategic Management An Integrated Approach
Biztantra An Imprint of Dreamtech 2004
5. Colin White Strategic Management Palgrave Macmillan 2004
6. Francis Cherunilam Strategic Management Himalaya Publishing House 1998
7. Hill, Jones Strategic Management: An Integration Approach 6th Edition Wiley India
2007
8. John A Pearce Richard B Robinson Strategic Management Tata McGraw- Hill
Publishing 2005
9. M.Jeyarathnam Business Policy and Strategic Management Himalaya Publishing
House 2007
10. Melissa A Schilling Strategic Management of Technology Management Tata
McGraw- Hill Publishing 2008
11. Michael A.Hitt Robert E.Hoskisson R.Duane Ireland Management of Strategy
Concepts and Cases Cengage Learning 2007
12. Parnell Strategic Management: Theory and Practices Wiley India 2007
13. Petter Fitzroy James M. Herbert Strategic Management Creating value in a turbulent
World John Wiley & Sons 2006
14. Robert A.Pitts David Lei Strategic Management Cengage Learning 2006
15. S B Budhiraja M B Athreya Cases in Strategic Management Tata McGraw- Hill
Publishing 1996
16. Sukul Lomash P K Mishra Business Policy and Strategic Management Vikas
Publishing House 2005
17. Upendra Kachru Strategic Management Excel Books 2005
18. V S P Rao V Hari Krishna Strategic Management Text and Cases Excel Books 2003

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 ASSIGNMENTS

Topics for assignment are general which would require the students to study current
situations, thereby giving practical solutions.

Assignment Topic- 1
A case study on strategic management

Submission Date – 15/3/09

Assignment Topic- 2
Select a company of your choice and write few of its recent significant strategies. Sources for
such information can be newspaper, magazine articles, websites etc.

Submission Date – 17/4/09

Assignment Topic- 3
Group Presentations on different topics of strategic management.

Presentation Date – Last few sessions of ISM

Hard Copy Submission Date – Last class of ISM

Topics for Discussion / Presentation

 Do companies practically apply Porter’s generic strategies?
 Are the renewal or retrenchment strategies justified?
 Is BCG growth-share matrix appropriate and practically applicable?

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 CASE STUDIES

The significance of case method as a teaching technique as against the methods of

class-room lecture and text-book reading is proved beyond doubt both for gaining sound
foundation in management principles and practices and for developing the requisite practice
and experience in decision-making in actual business situation .Of course, the case methods
is not to be regarded as a substitute of other methods of teaching. In order that the
participants are able to obtain the maximum value from the use of case method, they should
first understand the basic principles of the particular subject and then be asked to analyze the
case. The case method provides opportunities to business students to develop their analytical
abilities and decision-making skills and to utilize their imagination in devising feasible
course of action. Certain valuable skills that case analysis enables one to learn are given
below:
1. Thinking logically and meaningfully in a given business situation.
2. Identifying the basic problem amidst the complexities of business situation.
3. Analyzing, interpreting and weighing the available evidence bearing upon the
business.
4. Recognizing the limits of efficient decision-making where complete data are not
obtainable.
5. Recognizing what additional information can possibly be acquired.
6. Distinguishing relevant material from irrelevant material.
7. Reaching a decision with the co-operation of others.

Case will be presented to the students after the end of the topics. The case method has
come to occupy a significant in the tool-kit of management education. A case may be defined
as ‘narration of facts and other relating to problem-loaded business situation’.

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 To conclude, the case method has large educational value as the class-room
discussion of case studies helps the management trainees in developing necessary skills for
successful decision-making in actual business situations.
Case study method has also been found useful in training programmers or working
executives. The realism of the case material makes many managers relate what they are
learning to their own situations. They use their own experience in analyzing the cases and
derive management principles from the discussion their analysis.
Despite all the benefits, the case study method has its own limitations. The case
study method takes getting used to. Trainees who have not had previous experience with this
method can become quite frustrated when they find that there is no “right” answer to the case
problem and that there even may be a question as to just what the problem is. “How can I
learn to manage,” they ask, “if no one is sure of what is wrong or what should be done about
it?” Most trainees pass through this stage successfully; they learn eventually that
management situations often are ambiguous and that there frequently is no single best
solution.

CASE 1
Bernard Kroger was only 22 when he launched the Great Western Tea Company in
1883. Growing to 40 stores in the Cincinnati area, the company became known as Kroger
Grocery and Baking Company in 1902. Kroger continued to grow rapidly in the 1900s and
1910s, acquiring a number of smaller grocery stores. The company acquired Piggly Wiggly
stores in six states in the late 1920s, as well as most of the rival’s corporate stock (which it
did not sell until the early 1940s). Kroger reached 5,575 stores before the stock market crash
in 1929. Interestingly, Bernard Kroger sold his shares and retired just one year prior to the
crash.

After a brief decline in the number of stores during the depression, Kroger began to
grow again in the following three decades. In the 1970s, Kroger changed growth strategies
and began to pursue growth by enlarging its existing stores. During this decade, Kroger
added only a small number of new stores, but its total floor space nearly doubled.

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 In the 1980s and 1990s, Kroger returned to its external growth prowess, acquiring
several regional grocery chains. In 1999, Kroger acquired Fred Meyer, operator of about 800
stores mainly in the western United States. In 2000, the company bought 20 Hannaford stores
in Virginia, as well as 20 additional stores in Nebraska. In 2001, Kroger acquired additional
stores in New Mexico but also announced a restructuring plan to cut expenses, resulting in
the layoff of about 1500 employees.

Today, Kroger is the leading supermarket chain in the United States, operating more
than 2400 supermarkets, 800 convenience stores, 80 supermarket fuel centres and 400
jewellery stores. The company also manufactures and processes food for private label sales
in its own supermarkets. Kroger stores are primarily located in the Midwest, South and
western parts of the United States, although it continues to acquire smaller supermarkets
throughout the country, as well as poor performing outlets of its major competitors, from
time to time. Retail operations account for approximately 98% of company revenues.

Questions

Q1) What do you think is the company’s strength?

Q2) What kind of strategies have Kroger adopted from time to time? Do you think those
were justified as per the situation?
Q3) Should Kroger continue its acquisition strategy in the future? Why or why not?

CASE 2

Splendour is a new entrant in an established cosmetic industry characterised by

competitors with relatively high brand identity and strong market positions. As a strategic
consultant, how will you develop a proper set of strategies for Splendour for launching their
range of cosmetics for women? What strategies will you suggest Splendour to hold and
capture the market gradually?

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CASE 3

Fuel Cell Industry Analysis.pdf

CASE 4

Mr. Manoj Pandey started Garuda Constructions in 1989. It is a construction company which
was started on a small-scale in U.P. He got his first project from a private company which
planned to set up their office in Barielly. The company continued to survive on such small
projects unit 2002. In March 2002, the company got a project from ‘Sahara’ to construct its
large office in Lucknow.

After the success of this project, the company never looked back. The company expanded
exponentially in 2005 when it acquired various small construction companies in the states of
Bihar, M.P, Haryana and Delhi and also set up few new offices at these locations hiring a
large number of workforce.

Over the past few years, the company has seen an increase in its profits by about 70 % and it
is planning for expansion all over India. Infact, during current economic downturn, the
company managed to earn decent profits from all its units in different states except from
M.P.

a) What strategies the company has adopted so far?

b) What strategies will you suggest to the company in this period of recession and
thereafter?

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 FORMAT OF QUESTION PAPER

The paper is divided into four sections.

Total number Questions

Format of
Section of questions required to be Valuation
questions
given attempted
Section A Objective-type 20 20 20 X 1 = 20
questions
Section B Short-answer type 6 4 4 X 5 = 20
questions (about
80-100 words)
Section C Long-answer type 6 4 4 X 10 = 40
questions (about
150 words)
Section D Case Study 1 1 1 X 20 = 20

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MODEL QUESTION PAPER

New Horizon Leadership Institute

Ring Road, Panathur Post, Near Marathahalli
Bangalore-560 087
Subject: Enterprise Quality Management
Sub Code: PGDM 205
Duration: 3 Hours Total Marks: 100

Section –A (Answer all questions) 20 x 1=20

1. Policy assists decision making. (True/False)
2. Strategy is a short term plan. (True/False)
3. Purpose of business existence is made known by Mission statement. (True/False)
4. Environment throws open opportunities and threats. (True/False)
5. Environmental factors are controllable factors. (True/False)
6. Business and environment has to be matched. (True/False)
7. Cost leadership is not a strategy. (True/False)
8. SBU stands for strategic Business Understanding. (True/False)
9. KSF stands for Key Success Factors. (True/False)
10. Mission is what a business wants to become. (True/False)
11. Cost leadership is mainly achieved
a) By charging low price resulting in more sales b) By matching business with
environment c) By changing organization structure d) By competing
12. Focus strategy is
a) Focusing upon a particular business b) Focusing upon a specific segment of consumer
c) Focusing upon specific competitors d) None of the above.
13. During the times of recession, business should normally adopt
a) Growth strategy b) Cost leadership c) Stability strategy d) Retrenchment strategy
14. ERP stands for
a) Enterprise Resource Planting b) Enterprise Resource Pooling
c) Enterprise Resource Planning d) Enterprise Resource Program.
15. Every business must assume social responsibility, because
a) Society is a part of business b) Business is a part of society
c) Business is not a part of society d) Business and society are one and the
same
16. Social audit indicates
a) social performance of the business b) performance of the society
c) business performance d) performance of both society and business
17. Tall organization structure indicates
a) many levels in the organization structure b) few levels in the organization structure
d) two levels in the organization structure d) Nine levels in the organization structure
18. Which of the following is not among the four types of strategic control systems?
a) Implementation control b) Premise control
c) Strategic surveillance d) Special purpose control

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 19. Matrix structure is
a) a type of plan b) a type of control c) a type of organization d) a type of
leadership
20. Which of the following is not a growth strategy?
a) Horizontal integration b) Horizontal diversification
c) Strategic Alliance d) Divestment

Section -B (Answer any four) 4 x 5=20

21. What is SWOT analysis? What are its benefits?
22. “The major task of implementing strategy is to create a fit between the company’s goals and
other activities”. Discuss.
23. What is the difference between mission and vision of an organization?
24. Discuss Porter’s Five Force Model.
25. Should the business be socially responsible? If yes, Why?
26. Explain Ansoff’s direction matrix.

Section-C (Answer any four) 4 x 10=40

27. Discuss in detail the strategic management process.
28. “Value chain analysis is to understand the parts of a business’ operations that create value and
those that do not.” Justify the statement explaining the concept of value chain analysis.
29. Define environment. Discuss the various environmental factors.
30. Define and discuss the strategic evaluation and control process.
31. Discuss the various types of organization structure. How organizational structure is an
important factor in successful strategic implementation?
32. What can be the different types of corporate level strategies that a business can adopt in
different situations? Discuss the strategies briefly.

Section- D (Compulsory) 1 x 20=20

33. Tata Nano has beaten everybody on price front. For what a new Nano costs, one can also get
a 2002 model Hyundai Santro at Rs 1.6 Lacs, 2003 model Opel Corsa at Rs 1.5 Lacs, 2002
model Maruti Wagon R at Rs 1.3 Lacs, 2002 Model Maruti Zen at Rs 1.3 lacs, 2004 model
Tata Indica at Rs 1.25 lacs and 2002 Maruti Alto at Rs 1.25 Lakh.

As a strategic consultant, what strategies do you recommend for both Nano and the used car
(pre-owned car) industry?

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 QUESTION BANK

UNIT 1 INTRODUCTION TO STRATEGIC MANAGEMENT

PROCESS

Section A: Objective Type Questions

1. Strategy is a set of key decisions made to meet objectives. [True/False]
2. While making a strategy, the activities of an organization are to be matched with
the environment in which it operates. [True/False]
3. A sound Vision provides a strong foundation and motivates people to work
together. [True/False]
4. Mission is “What an organisation wants to become”. [True/False]
5. Mission gives the overall purpose of the organization. [True/False]
6. Mission should be generic and not specific. [True/False]
7. The two approaches to setting objectives are horizontal approach and vertical
approach. [True/False]
8. A mission is a declaration of attitude. [True/False]
9. Strategic management starts with formulation of mission and ends with strategy
evaluation. [True/False]
10. What is the arrangement of the following in the hierarchy from top to bottom:
I. Mission
II. Objectives
III. Strategy
IV. Vision

a) I, II, III, IV
b) IV, II, I, III
c) IV, I, II, III
d) I, IV, III, II
11. Which of the following is not a role of top management?
a) Formulating mission
b) Taking strategic decisions
c) Implementing important strategies
d) Setting individual objectives
12. The business process objectives are prepared by:
a) Top management
b) Middle management

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 c) Lower Level management
13. A good objective should not be:
a) Realistic
b) Achievable
c) Generic
d) measurable

Section B: Short-Answer Type Questions

14. What do you mean by strategy? What is strategic management?
15. What is strategy? What are its main characteristics?
16. What do you understand by mission and vision of an organization?
17. What is the difference between mission and vision? Discuss with an example.
18. What are the core components of vision statement of any organization?
19. What is vision? What are the benefits of having a vision statement?
20. What are the main characteristics of mission of any organization?
21. What are objectives? What are the two approaches of setting up objectives?
22. “A good objective should be SMART” Do you agree.
23. What is the need and significance of strategic management?
24. What is mission and vision? What is their value for strategic management
process?

Section C: Problems and Essay Type Questions

25. What is strategic management? Explain the strategic management model.
26. What is vision? What are the benefits of having a vision statement? How is it
different from mission?
27. What do you understand by mission and vision? How are they prepared?
28. What are objectives? What are the characteristics of a good objective?
29. Give the framework of setting objectives.
30. Explain the levels in the hierarchy of objectives.
31. How objectives are formulated, at what levels and by whom?
32. What is the need and challenges of strategic management?
33. What are the elements of strategic management process? How are they
interrelated?
34. What is the role of top management in an organization?

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 UNIT 2 & 3 EXTERNAL ENVIRONMENT AND INTERNAL
ENVIRONMENT

Section A: Objective Type Questions

35. External environment analysis involves scanning, forecasting, planning and
monitoring the environment. [True/False]
36. Forecasting is all about developing projections of anticipated outcomes based on
monitored changes and trends. [True/False]
37. The mega-environment of an organization is composed of elements in the broader
society that can indirectly influence industry and the companies within the
industry. [True/False]
38. Micro environment consists of all factors affecting an organization due to
competition present in the industry. [True/False]
39. The industry environment has an indirect effect on the firm’s strategic
competitiveness. [True/False]
40. Competition weakens when a firm identifies the opportunity to improve its
position or senses competitive pressure from other businesses in its industry.
[True/False]
41. Bargaining power of an industry’s buyers increases when they face few switching
costs and can freely change suppliers. [True/False]
42. Through External environment analysis, a firm determines what factors affect
them and what they might do. [True/False]
43. Internal audit focuses on internal factors that give an organization certain
advantages and disadvantages in meeting the needs of its target market.
[True/False]
44. A firm can create value by innovatively bundling their resources and capabilities.
[True/False]
45. A Firm’s Intangible Resources combine with Firm’s Capacity create Distinctive
Competencies. [True/False]
46. Knowledge, trust, capacity to innovate and reputation with customers give an
organisation a competitive advantage. [True/False]
47. Capabilities emerge over time through complex interaction among tangible and
intangible resources. [True/False]
48. Capabilities are generally developed for an organisation and cannot be developed
in specific functional areas. [True/False]
49. Strengths and weaknesses of an organization depend on how well value chain
activities are performed. [True/False]
50. VRIO stands for :
a) Value, rarity, innovation, organisation
b) Value, rareness, imitability, organisation
c) Value, rarity, innovation, officialdom

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 d) Value, rareness, imitability, officialdom
51. Assets that are not physical and are typically deep rooted in a firm are:
a) Tangible assets
b) Valuable assets
c) Intangible assets
d) Nonsubstitutable assets
52. Which of the following does not affect an industry’s profitability?
a) Intensity of rivalry among incumbent firms
b) Threat of new competitors entering the industry
c) Bargaining power of buyers
d) Threat of complimentary products or services
53. Which of the following is not a stage in external audit?
a) Monitoring
b) Assessing
c) Formulating
d) Forecasting
54. Which of the following is not a segment of macro environment of an
organisation?
a) Demographic
b) Economic
c) Technological
d) Psychological
55. The following are the stages in an industry life cycle except:
a) Growth
b) Maturity
c) Decline
d) Shakeoff
56. The following are the barriers to entry that the newcomers in the industry face:
I. Brand Identity of existing players
II. Switching costs
III. Govt. Policy
IV. Capital requirements

a) I, II, III
b) II, III, IV
c) I, II, III, IV
d) II, IV
57. The following are the stages in external environment analysis except:
a) Monitoring
b) Assessing
c) Auditing

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 d) Forecasting
58. Which of the following is not a primary activity in value chain analysis?
a) Logistics
b) Marketing and Sales
c) Human Resource Management
d) Operations
59. Which of the following is not a factor while assessing Support activities?
a) Timeliness of technology development activities in meeting critical deadlines
b) Relations with trade unions
c) Quality of the strategic planning system to achieve corporate objectives
d) Efficiency of raw material warehousing activities

Section B: Short-Answer Type Questions

60. What do you mean by external audit?
61. What is external environment analysis?
62. What are the stages involved in external environment analysis?
63. Briefly describe how to conduct the analysis of the industry in which the
organization is working.
64. What factors should an organization consider while analyzing its competitors?
Explain.
65. What do you understand by resource analysis?
66. What do you mean by internal audit?
67. What is internal environment analysis?
68. “The analysis of external environment is about identifying the opportunities and
threats present in the market.” Do you agree.
69. “External audit begins with identifying the early signals of changes in the
environment and ends with assessing the importance of those changes for the
organization.” Justify the statement.
70. Discuss the factors affecting micro environment of an organization.
71. “An organization’s external environment involves such mega and micro factors
that significantly affect the environment.” Do you agree? Justify the statement.
72. What do you understand by industry analysis?
73. “Rivalry among firms in an industry significantly affects their strategies.” Justify
the statement giving an example.
74. “There are a number of barriers to entry that existing players in the market put up
to keep the prospective newcomers out, since the new entrants intensify the fight
for market share.” Justify the statement explaining the barriers to entry.
75. “Internal analysis lets a firm know what they can do.” Justify the statement.
76. “Internal analysis is the analysis of a firm’s strengths and weaknesses.” Justify the
statement.

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 77. “Before an organisation can decide where it wants to go and how it wants to get
there, it must first know where it is.” Do you agree? Justify.
78. “It is essential for a firm to recognize its core competencies before important
strategic decisions.” Justify the statement.
79. “Resources and Capabilities are the sources of core competencies.” Justify.
80. What are the three major features of managerial decisions affecting resources,
capabilities and core competencies?
81. What do you understand by capabilities? Give few examples.
82. Explain the VRIO framework.
83. “Value chain analysis is to understand the parts of its operations that create value
and those that do not.” Justify the statement.

Section C: Problems and Essay Type Questions

84. What are the general environmental factors affecting an organization?
85. What are the segments of the macro-environment of an organization?
86. What are the segments of the mega-environment of an organization?
87. What are the stages in industry life cycle?
88. Explain Porter’s five forces model driving industry competition.
89. Explain the concept of value chain analysis.
90. “An organization’s environment gets affected by both its internal and external
environment.” Do you agree? Justify your answer.
91. “Sustained competitive advantage results only when the four criteria – value,
rarity, costly to imitate, nonsubstitutable - are satisfied.” Justify.

UNIT 4 & 5 BUSINESS LEVEL, CORPORATE LEVEL AND

FUNCTIONAL STRATEGIES

Section A: Objective Type Questions

92. Business strategies intend to create differences between the firm’s position
relative to those of its rivals. [True/False]
93. A collection of SBUs that makes up a corporation is known as Portfolio.
[True/False]
94. A form of diversification in which a firm acquires a business outside its present
scope of operation but with similar or related core competencies is Conglomerate
Diversification. [True/False]
95. Strategic Alliance is a business-level cooperative strategy. [True/False]
96. Strategic formulation starts from development of vision and ends with selection of
appropriate strategies. [True/False]

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 97. Which of the following is not a growth strategy?
a) Horizontal integration
b) Horizontal diversification
c) Strategic Alliance
d) Divestment
98. A business that generates large amounts of cash because of their strong relative
market share and also consume large amounts of cash is a
a) Cash Cow
b) Dog
c) Star
d) Wild Cat
99. The four Quadrants in Porter’s generic strategy model are:
a) Differentiation, Cost Focus, Differentiation focus, Cost leadership
b) Development, Differentiation, Lower Cost, High Quality
c) Horizontal integration, Vertical integration, Diversification, Strategic Alliance
d) Threat of new entrants, bargaining power of buyers and sellers, rivalry among
competitors, threat of substitutes
100. The three levels of strategic formulation and implementation are:
a) Business level, functional level, divisional level
b) Top managerial level, middle managerial level, lower managerial level
c) Business level, corporate level, functional level
101. The four quadrants in Ansoff’s direction matrix:
a) Market penetration, product development, market development,
diversification
b) Market penetration, product development, market development, divestiture
c) Joint venture, market penetration, product development, divestiture
d) Diversification, market penetration, product development, divestiture

Section B: Short-Answer Type Questions

102. What do you mean by strategic formulation?
103. What are the three levels of strategy? Explain.
104. Explain Porter’s generic strategies.
105. What is vertical integration? Give example.
106. What is strategic alliance? Explain with example.
107. Explain stability strategy. What are the benefits of adopting such strategies?
108. What is the difference between divestment and liquidation?
109. What do you mean by portfolio strategy?
110. “Ansoff’s direction matrix gives optimal strategies to be adopted for different
combinations of products and markets”. Justify the statement.
111. What strategies will you adopt for marketing and production for an organization
adopting a business-level strategy of cost leadership?

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Section C: Problems and Essay Type Questions
112. Explain briefly directional strategies for an organization.
113. Explain briefly growth strategies for an organization.
114. When will an organization adopt defensive strategies? Explain different types of
defensive strategies with examples.
115. Explain different cooperative strategies that an organization can adopt at different
levels.
116. “BCG growth-share matrix is one of the best portfolio frameworks designed to
provide guidelines for strategists” Justify the statement.
117. Explain Grand Strategy Clusters Model. How can it be beneficial for an
organization?
118. What strategies will you adopt for production, purchasing and R&D functions for
an organization?
119. Explain the process of strategic formulation with example and diagram.

UNIT 5 & 6 Strategic Implementation and Evaluation and Control

Section A: Objective Type Questions

120. Strategic implementation becomes easier with management and employees’
commitment. [True/False]
121. While strategic formulation focuses on efficiency, strategic implementation
focuses on effectiveness. [True/False]
122. Which of the following is not among the four types of strategic control systems?
a) Implementation control
b) Premise control
c) Strategic surveillance
d) Special purpose control
123. Which of the following is not an element of the cultural web?
a) Stories
b) Control systems
c) Power & structure
d) Customers
124. Strategic evaluation includes:
a) Reviewing the bases of strategies
b) Measuring performance
c) Taking corrective actions
d) All of the above

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Section B: Short-Answer Type Questions
125. What do you mean by strategic implementation? Why is it important?
126. “While strategic formulation is positioning forces before the action, strategic
implementation is managing forces during the action.” Justify the statement
giving the differences between strategic management and implementation.
127. “Implementation problems can arise because of the shift in responsibility from
strategists to divisional and functional managers during strategic
implementation.” How can an organisation deal with these problems?
128. What is strategic evaluation and control?
129. What tools can be used for measuring and comparing performance of the
strategies against set objectives?
130. What is balanced scorecard?
131. What do you mean by premise control? Give example.

Section C: Problems and Essay Type Questions

132. What do you mean by organisational structure? Explain how structure of an
organisation affects strategic implementation giving different types of
organisational structure in brief.
133. How can you identify the culture present in an organization?
134. What are the elements of the cultural web of an organisation?
135. What are the different factors that affect implementation of strategies in an
organization?
136. Explain Strategic evaluation framework in an organization.
137. What is the process of strategic evaluation in an organization? Explain with
diagram and example.
138. Explain the different types of strategic control systems.
139. What is strategic evaluation and control? What is its importance in an
organisation?

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