- JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
End Semester Examinations – APRIL 2012
M.Com. – IV Semester
Business Policy and Strategic Management
Duration: 3 Hrs Max. Marks: 100
Section – A
- Answer SEVEN questions out of Ten. (7 x 5 = 35)
- What is strategic drift? Explain graphically.
- What is strategic audit? Explain its relevance in corporate strategy and corporate
governance.
- Distinguish between core competence and distinctive competence.
- What are the generic strategies?
- What are the attack or offensive strategies of market challengers?
- What is divestiture? Explain with examples.
- What is “doomsday management”?
- What is strategic window? Explain with example.
- Comment on balanced score card approach? What are the four perspectives?
- Explain briefly the concept of Six Sigma.
Section – B
- II) Answer any THREE questions out of Five ( 3 x 15 = 45)
- Explain the strategic management process (SMP)? Who are the major participants in strategic management process? Examine the roles of the board of directors, chief executives and counselors in SMP.
- What is a value chain? Analyze the roles of primary activities and support activities in a value chain.
- Explain DPM. Enunciate the BCG model. Do you find some similarities between the two?
- Explain Porter’s competitive threat model (Five Forces Model). Also explain forward and backward integration.
15.Discuss five critical factors a leader should manage? Analyze its relevance to strategic management and implementation.
Section – C
- Compulsory Case study (1 x 20 = 20)
Nokia and the Indian Market
Nokia’s Entry in India: Nokia entered India in 1995. Third Largest Telecommunication Market: India ranks third globally after China and U.S. in terms of the largest telecommunication market. 500 million mobile subscribers in India: The Indian market is adding about 10 million users a month. Nokia sees the Indian market as a growth opportunity particularly in the country’s rural areas. Rural penetration in India is still very low at 13%. By 2010, Nokia estimates that there will be around 500 million mobile phone users in India as compared to 427 million. According to Standard Chartered Bank’s annual forecast, India will have signed up its 500 millionth mobile subscriber sometime in December 2009 or January 2010. So, it took India 12 years (from 1997 when the mobile revolution began) to grow from zero to 500 million subscribers. However, analysts estimate it will take only five years to add the next 500 million.
Nokia’s market share in India: Nokia has more than half the share of India’s mobile handset market. In 2009, an IDC report indicated that there were about 28 new handset vendors in India. Nokia led with a 54.1% market share in the fragmented Indian market, while the new vendors accounted for 17.5%. Samsung and LG followed with markets shares of 7.7 percent and 5.4 percent respectively. During Mar, 2012 Nokia had a market share of approx. 38% in 2011 compared to 49.3 per cent in 2010 in India. Its revenues were Rs 12,929 crore in 2010-11 and Rs 12,900 in the 2009-10. The Indian market accounts for 12 per cent of worldwide sales for Nokia.
Nokia’s manufacturing facilities in India: Nokia’s manufacturing facility in Chennai, Tamil Nadu (South India) exports half its production to more than 59 countries. Nokia has invested $250 million since its launch in 2006.
Mobile Microfinance – In 2009, Nokia piloted a scheme in two Indian states where it sold handsets on a weekly installment of 100 rupees ($2) over 25 weeks. Nokia planned to rollout the microfinance offer in 12 Indian states.
India not a low-end market segment – 81 percent of the India’s mobile users are in urban areas. Nokia anticipates such customers would drive demand for high-end phones.
Increasing Competition from new mobile handset manufacturers’ entry into India: In one quarter of 2009 alone, twenty-seven new mobile handset manufacturers entered the Indian market to introduce entry-level models (and other models with features such as dual SIM cards and full QWERTY keyboard) for the price sensitive Indian consumer.
Mobile handset sales in India: By year ended June 30, 2009, mobile handset sales in India was 100.9 million compared to 94.6 million, a year ago.
Nokia’s strong distribution in India: In India, Nokia has 2 lakh retail outlets and 700 support centers across 400 cities and towns.
Nokia’s competitors in India: Motorola, Sony Ericsson, Spice, MacroMaxx, Karbonn, Lava, Lemon,Oscar.
Maxx Mobile – In less than two years after entering the Indian mobile phone market, Maxx Mobile captured around four percent market share by offering around 45 models and having a presence across India with its 500 service centres. With such a strong distribution network the company wants to increase it market share to about 10 percent in the next two years (by 2012). In 2010, ‘Micromax Mobiles’ was second on the list of fastest rising search terms and the fourth most searched brand name on Google India website (Zeitgeist 2010).
Nokia’s ‘Made for India’ phones: In 2000, Nokia introduced the Nokia 3210 with a Hindi menu. In 2003, Nokia launched the Nokia 1100, a first Made for India phone.
India’s Most Trusted Brand: Nokia ranked as India’s topmost trusted brand in the The Economic Times-Brand Equity’s annual ‘Most Trusted Brands’ survey for 2010. In 2004, Nokia ranked 71 and moved to 44 in 2006 as India’s most trusted brand. In 2007, it ranked in the top ten at number 4. Nokia has since held the number one slot for three years consecutively.
Nokia’s biggest advertising/marketing campaign in India: In December 2011, Nokia launched its biggest ever campaign in India called the ‘The Amazing Everyday’. The idea behind Nokia’s global campaign is to engage customers with the idea that “hidden away in the everyday landscape are billions of little adventures”.
Questions:
- Identify the risks in high growth market and explain it briefly.
- Is Indian market a hostile market for Nokia? What strategies can you suggest for winning in a hostile market?
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