smu mba semester 4 spring 2014 solved aassignments

8/12/2019 SMU MBA Semester 4 Spring 2014 Solved Aassignments

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Spring 2014

MBA Semester 4

MB0052 Strategic Management and Business Policy

Q1. Define the term strategy. Explain the concept of s trategic window .

The word strategy comes from Greek strategies, which refers to a military general and

combines stratus (the army) and ago (to lead). The concept and practice of strategy and

planning started in the military, and, over time, it entered business and management. The

key or common objective of both business strategy and military strategy is the same, i.e., to

secure competitive advantage over the rivals or opponents.

Strategic window

Companies need to evolve and adapt to changing situations, as is clear from the example of

Shell that you read in the beginning of the unit. They should always look for opportunities

and make the best of them at the right time. Here, we are referring to strategic windows, the

concept which was introduced by Abell (1978). The basic idea behind the concept of a

strategic window is this:

there are only limited periods during which the fit or the match between the key requirements

of a market and the particular competencies of the firm are at the optimum. Companies

should exploit such optimum opportunities or windows. Strategic windows arise as a resultof business or market evolution.

Businesses and markets are never static. They are constantly evolving. Businesses and

markets may evolve because of Development of new product (new demand);

Emergence of new competing technologies; and

Market redefinition or changes.

Due to such evolution, it is recommended that investment in a product line or market area

should be made to coincide with the period(s) during which a strategic window is open.

Companies which do this, optimize returns. For example, Maruti-Suzuki entered the Indian

car market at the right time. The strategic window was open because of the obsolescence of

technology of Premier Padmini (earlier Fiat), which was the only available passenger car in

the market. (There was also Ambassador, but that was used more as an official car). Even

after Marutis entry, the strategic windows for cars remained open, and other car

companiesGeneral Motors, Tata Motors, Ford, Honda, Hyundai all entered the Indian

car market. Maruti, however, was the first mover and continues to be the market leader.

Strategic windows are also important for timing the exit from a product or a market. There

are times when it is advisable, and also possible, to divert a business which a company


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cannot operate profitably any longer. This means that the strategic window for exit is open,

that is, there are buyers or companies, who are willing to acquire the business, and, the

company should act on it.

Q2. The essence of business continuity is that businesses need to be planned not

only for today, but also for tomorrow, that is, for the future.

Write the meaning and importance of business continuity planning. Explain any two

strategies for business continuity planning.

Business continuity planning means proactively working out a means or method of

preventing or mitigating the consequences of a disasternatural or manmade (sabotage or

terrorism) and managing it to limit to the level or degree that a business unit can afford.

Strategies for Business Continuity Planning

Because of the possibility of different kinds of impacts, and depending on the nature of

damage or disaster, appropriate strategies should be developed and used to deal with

particular situations. Five different strategies should be developed for five different

situations/actions. These are:

1. Prevention

2. Response

3. Resumption

4. Recovery

5. Restoration

Prevention

Conventionally, prevention is the best strategy; this means taking steps or actions to prevent

or minimize the chances of occurring of a disaster. Companies can adopt many preventive

control measures as safeguards. Common preventive control measures are:

(a) Security controls: These involve controls by setting up barriers to protect the site and

prevent unauthorized entry into the premises. This means, in other words, manned

surveillance at the location.

(b) Infrastructure controls: These include appropriate infrastructural facilities like

UPS/back-up power, smoke/fire detectors, fire extinguishers, weather forecasting systems ,

etc.

(c) Personnel controls: Skilled/trained personnel are posted to man sensitive zones where

key or critical resources may be located.

(d) Software controls: These involve modern methods of controls through computerized

systems or software. These include authentication,encryption, firewall, intrusion detectionsystems, etc.


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Response

Prevention is a pre-emptive measure; response is a reactive step. If prevention is not

possible, fast response is the next best alternative strategy. After an interruption or damage

has taken place, the BCP team should immediately inform the management and the

Damage Assessment Team. Two other teams would also be involved: the Technical Team

and the Operations Team. The Damage Assessment Team would assess the nature and

magnitude of the damage. More specifically, the team should investigate into:

The cause of disruption or damage

The scope for preventing additional damage

What can be salvaged

What repairs, restorations and replacements are required

Based on the report of the Damage Assessment Team, the Technical Team and Operations

Team should get into action. The Technical Team is the key decision maker for furtheractions of the BCP and the Operations Team executes the actual damage control operations

of BCP.

Q3. Write a brief note on Strategic Audit .

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 factors of cost efficiency.

Q5. Write short notes on the following:

(a) Divestment strategy

(b) Liquidation strategy

Q6. Describe the different approaches to business ethics.

Remaining answers are available in the full assignments.

For full assignments contact us:

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smu mba semester 4 spring 2014 solved aassignments

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