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MB0052 — Strategic Management and Business Policy

MB0052 — Strategic Management and Business Policy

Summer 2013

Master of Business Administration- MBA Semester 4

MB0052 — Strategic Management and Business Policy – 4 Credits

(Book ID: B1699)

Assignment- 60 marks

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.


Q1. A well- formulated strategy is vital for growth and development of any organization. Explain corporate strategy in different types of organizations.

Answer : Corporate strategy in different types of organizations :

1. In small business :

One of the best corporate strategy techniques useful for business growth requires a careful examination of a company’s existing customer data. Being able to properly decipher this data is the primary key to increasing profits and customer loyalty. This information is also useful in creating a long-term strategy for sustaining a business despite a decline in seasonal market demands. In fact, analyzing existing customer data is the simplest and most accessible



Q2. Businesses need to be planned not only for today, but also for tomorrow, that is, for the future which implies business continuity. Write the importance of business continuity planning. Explain any two strategies for business continuity planning.

Answer : Meaning of business continuity planning :

Business continuity planning (BCP) “identifies an organization’s exposure to internal and external threats and synthesizes hard and soft assets to provide effective prevention and recovery for the organization, while maintaining competitive advantage and value system integrity”. It is also called business continuity and resiliency planning (BCRP). A



Q3. Governed corporation is a model of successful corporate governance. Define and explain governed corporation. Distinguish between managed corporation and governed corporation in terms of board’s role, major characteristics and policies of a company.

Answer : Governed corporation :

Governed corporation refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and




Q4. Price or market competitiveness of a product or business depends on its cost competitiveness. Cost competitiveness implies two things-cost efficiency and cost effectiveness. Explain the concept of cost efficiency of an organization. Analyze the major determinants of cost efficiency.

Answer : Cost efficiency :

Efficiency refers to quantity or speed, effectiveness refers to quality.

Take the example of two Customer Service reps, the first one is very short with the customers. If they start to tell him any unnecessary information, he cuts them off and tells them “that’s not important”. He quickly resolves their issue but leaves them with a bad taste for the company – most will never be repeat customers. He is able to handle 50 customer calls per day.

Cost efficiency (or cost optimality),



Q5. Stability strategy is most commonly used by an organization. An organization will continue in similar business as it currently pursues similar objectives and resource base. Discuss six situations when it is good/best to pursue stability strategy. Give some Indian examples.

Answer : When to pursue stability strategy :

In the following conditions, it is better to adopt stability strategy.

1. When the organization is serving a defined market or its segments according to business definitions, it can adopt stability strategy. This happens with most of organizations in the short term because their environment does not change and they can continue in the same business.

2. If the organization continues to pursue same objectives, it is better to adopt stability strategy adjusting the level of achievement about the



Q6. Corporate culture governs, to a large extent, business ethics and values in an organization. Describe the state of business ethics in Indian companies. Analyze in terms of KPMG business ethics survey.

Answer : Business ethics in Indian companies :

As Ratan Tata, chairman of the Tata Group, observed, “If you choose not to participate in [corruption], you leave behind a fair amount of business.” Much has been written about the benefits of doing business in India — low input costs, easy access to labor and a massive consumer base. Less has been said about the ability of companies in India to thrive by bending rules, greasing palms and broadening ethical boundaries. At a time when the issue of corruption

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