St. Joseph’s College of Commerce (Autonomous)

End Semester examination –  April 2014

BBM – VI semESTER

STRATEGIC MANAGEMENT

Duration: 3 Hours                                                                                           Max. Marks: 100

Section – A

1. Answer any TEN Each carries 2 marks.                              ( 10 x 2 = 20)

 

1. Define “Strategy”.
2. Give the meaning of “Vision” and “Mission”.
3. Explain the levels involved in strategic planning.
4. What do you mean by Retrenchment Strategy?
5. What is meant by Critical Success Factor? Explain.
6. Give the meaning of Key Result Area.
7. Explain the reasons for Strategic Alliance.
8. What is meant by Environmental scanning?
9. What are the Approaches to Divestment?
10. Give the meaning and reasons to manage conflicts.

 

Section – B

1. Answer any FOUR Each carries 5 marks.                               ( 4 x 5 = 20)
2. Explain the key areas in developing a strategy.
3. Explain in detail, the process of strategic management.
4. Explain the types of concentration strategies and its merits.
5. Explain the reasons for reasons for Conglomerate or Unrelated Diversification:
6. What are the pre-requisite conditions for a joint venture?
7. (I).How does a domestic firm start its international business?
8. By thinking big b. By manufacturing    c. By exporting       d. By processing

 

(II). Which of the following is an important reason for business growth?

1. Natural urge     b.  Survival     c.  Market Share   d.  All of the above

 

(III). Retrenchment strategy is also known as?

1. Offensive strategy       b.  Medium strategy
2. Defensive Strategy      d.  All of the above

 

(IV). Which of the following is a factor on which structure depends?

1. Size of business                           b.  Nature of business
2. Characteristics of the market    d.  All of the above

 

(V). In ______ SBU companies, the corporate strategy is implemented through SBU strategies, which are formulated to achieve the corporate strategy.

1.    Single      b.  Multi         c.   Solo    d.   None of the above

 

Section – C

• Answer any THREE Each carries 15 marks.                  (3 x 15 = 45)

17. Explain in detail, Michael Porters Five forces model.
18. Explain the various Internationalization strategies. Explain the merits and demerits of going international.
19. What is meant by Mergers and Acquisitions? Explain the types and reasons for mergers.
20. What do you mean by Resistance to change? Explain the reasons for resistance. How can resistance be managed?
21. Explain in detail, “McKinsey 7s Model”.

 

SECTION – D

1. Case study – compulsory question           (15 marks)

DD is the India’s premier public service broadcaster with more than 1,000 transmitters covering 90% of the country’s population across on estimated 70 million homes. It has more than 20,000 employees managing its metro and regional channels. Recent years have seen growing competition from many private channels numbering more than 65, and the cable and satellite operators (C & S). The C & S network reaches nearly 30 million homes and is growing at a very fast rate.

DD’s business model is based on selling half – hour slots of commercial time to the programme producers and charging them a minimum guarantee. For instance, the present tariff for the first 20 episodes of a programme Rs.30 lakhs plus the cost of production of the programme. In exchange the procedures get 780 seconds of commercial time that he can sell to advertisers and can generate revenue. Break-even point for procedures, at the present rates, thus is Rs.75,000 for a 10 second advertising spot. Beyond 20 episodes, the minimum guarantee is Rs.65 lakhs for which the procedures has to charge Rs.1,15,000 for a 10 second spot in order to break-even. It is at this point the advertisers face a problem – the competitive rates for a 10 second spot is Rs.50,000. Procedures are possessive about buying commercial time on DD. As a result the DD’s projected growth of revenue is only commercial time on DD. As a result the DD’s projected growth of revenue is only 6-10% as against 50-60% for the private sector channels. Software suppliers, advertisers and audiences are deserting DD owing to its unrealistic pricing policy. DD has options before it. First, it should remain privates, second it should remain purely public service broadcaster and third, a middle path.

The challenge seems to exploit DD’s immense potential and emerge as a formidable player in the mass media.

 

Questions:

1. What is the best option, in your view, for DD?                                      (5 marks)
2. Analyse the SWOT factors the DD has.                                                   (5marks)
3. Why do you think that the proposed alternative is the best?              (5 marks)

 

 

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