Q1.Define the term “Strategic Management”. Explain the importance of strategic management.
Answer : Strategic management analyzes the major initiatives taken by a company’s top management on behalf of owners, involving resources and performance in internal and external environments.[1] It entails 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. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. Recent studies and leading management theorists have advocated that strategy needs to start with stakeholders expectations and use a modified balanced scorecard which includes all stakeholders.
Importance of strategic management
- A rapidly changing environment in organizations requires a greater awareness of changes and their impact on the organization. Hence strategic management plays an important role in an organization.
- Strategic management helps in building a stable organization.
- Strategic management controls the crises that are aroused due to rapid change in an organization.
- Strategic management considers the opportunities and threats as the strengths and weaknesses of the organization in the crucial environment for survival in a competitive market.
- Strategic management helps the top level management to examine the relevant factors before deciding their course of action that needs to be implemented in changing environment and thus aids them to better cope with uncertain situations.
- Changes rapidly happen in large organisations. Hence strategic management becomes necessary to develop appropriate responses to anticipate changes.
- The implementation of clear strategy enhances corporate harmony in the organisation. The employees will be able to analyse the organisation’s ethics and rules and can tailor their contribution accordingly.
- Systematically formulated business activities helps in providing consistent financial performance in the organisation.
- A well designed global strategy helps the organisation to gain competitive advantages. It increases the economies of scale in the global market, exploits other countries resources, broadens learning opportunities, and provides reputation and brand identification.
Q2.Describe Porter’s five forces Model.
Answer: Porter suggests that there are five basic competitive forces, which influence the state of competition in an industry.
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Q3.Define the term “Business policy”, Explain its importance.
Answer: Business Policy defines the scope
Q4.What, in brief, are the types of Strategic Alliances and the purpose of each? Supplement your answer with real life examples.
Answer: Types of Strategic Alliances and Business Decisions
The mutual agreements between the organisations can take a number
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Q5.Explain the concept, need for and importance of a Decision Support System.
Answer: A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management,
Q6.Write short notes on:
a) Corporate social responsibility
Answer: A popular explanation of the term Corporate social responsibility ,CSR is the continuing commitment by businesses to behave ethically
