Amrutvahini Institute of Management and Business Administration, Amrutnagar

Sangamner

M.B.A (SEM III)

Business Policy & Strategic Management
Unit course-301
[Time: 3 Hours]
[Max.Marks:70]
Instructions to candidates:
1)
2)
3)
4)

Section I carries 42 marks and section II carries 28 Marks.

Attempt any three questions from section I and both from section-II
Answers to both the sections should be written in the same answer book.
Your responses should be specific and to the point.

Section I
Q1) Define strategy. Explain the process of strategic management .strategic management systems exist in
many different organizations. What role the strategic management play for them and explain this with
example for a company where you done your projects?

Q2) what do the three possible corporate strategic directions Stability, Growth, Retrenchment, mean to you
in terms of strategy? How would you apply these concepts to tomorrows markets?
Q3)

a) Describe BCG Matrix with relevant examples from the corporate world?
b) Explain Michael Porters Generic Strategies with suitable Examples?

Q4) what do you understand by the terms of mergers and acquisition? What are the various types of mergers
and acquisition? What are the issues related to implementation of the merger strategy successfully? Cite
latest Indian and Global examples relevant to the merger strategy?
Q5) Write short notes on any three:
1)
2)
3)
4)
5)

7s Mc Kinsey frame work.

Value Chain analysis
Business definition
Horizontal and vertical Integration
Core competencies

Section II
Q1) Use your insight and critical abilities to analyze the vision/ mission statements given below. What
should be the impact of these statements on the functioning of those organizations? And, Why?
(10 marks)
Airtel
Vision: - By 2010 Airtel will be the most admired brand in India:
1. Loved by more customers
2. Targeted by top talent
3. Benchmarked by more business
Mission: We at Airtel always think in fresh and innovative ways about the needs of our customers and how
we want them to feel .We deliver what we promise and go out of our way to delight the customer with a
little bit more.

BHARTI TELECOM ON AN AGGRESSIVE GROWTH PATH

Telecom has been thrown open and there is healthy competition among the service
providers. Competition ultimately benefits the consumer and that is the case in telecom too.
A price war is on and rates are falling, almost every day. Bharati has started offering basic
and cellular services. Cellular services under the brand Airtel and basic services provider,
right now. In just a couple of months Reliance Infocom and Tata Tele too will be launching
their basic telecom services.
Mr. K. Krishnan the CEO, operations, of Bharati, explains that Our USP is quality and since
we focus on this aspect of our service, most, we wont have any problems. We are in a
position to provide quality service to the customer, since we have created a new network.
Connections terminate within 2 km. from the service exchanges and hence voice quality is
very good. In the case of BSNL, each exchange services up to a distance of 3 km and due to
this clarity can suffer.
Since we have a Optic Fibre Cable (OFC) network, the problem of Network Busy is
eliminated. We have plans for 26 types of value added services. Customer complaints will
be serviced immediately since we have a pool of well qualified personnel to attend to the
complaints. 24 x 7 Service support, through call centers is another of our strengths.
Tatas and Reliance have announced aggressive roll out plans. Much before the
two of them formally launches their services, Bharati will have its network in place. Tatas
and Reliance are planning to offer their services in selected streets only. Since they will be
going the wireless route, customers have to invest in new appliances and this could pose
proclems for them. By the time they come in, Bharati would have signed up a number of
customers. The first mover advantage is with us. We have clear plans for retaining the
customers we acquire.
Bharati plans to target customers who do not have a telephone connection. Mr. K.
Krishnan the CEO, says, Our first customers will be from this section. It will take some time
for us to wean BSNL customers. We are confident, customers currently with BSNL, will
migrate to Bharati, if we provide quality service. We are looking at a 60% market share and
we are pretty confident of achieving this.
BSNL the incumbent national player may force a price war in the market. The Tatas
are doing an aggressive pre-launch publicity, through different media. In contrast Bharati is
maintaining a low profile despite launching its services as it is nor confident of being ready
for a huge influx of customers, resulting from an aggressive campaign. They are going slow

on advertising since they do not want to disappoint customers. In terms of absolute numbers,
India is way behind China, but in terms of trajectory, it is on the same lines as China.
Analysts believe that We are exactly where China was in 1997 and if you plot the trajectory
we are moving up the same way, perhaps faster for India now. Chain went up to 4-5 million
new phones a month. We are touching 2 million now. The fact is that china is now coming
down to about 3 million now. The fact is that china is now coming down to about 3 million
phones a month, while India is slowly rising to that number. India would be about 200
million phones in five years maybe and China will be 400 million, but the difference will be
half and not one tenth like it is now.
Bharati has also applied for licenses for new circles that will establish it as a pan
India player and has its finger in almost every part of the telecom pie today: from cellular to
basic telephony to international telephony and bandwidth services.
The competitive intensity in the industry has been very high. Sunil Bharati Mittal,
Bharatis Chairman and Managing Director feels that some smaller companies are bound to
get consolidated or just hurt if they dont get consolidated. The regulatory movements in
this sector have been legendary this year to the extent that it looks horrifying if you look at it
from outside India. At times the regulatory changes have been quite baffling. On the one
hand theres been a lot of competitive pressure. Unified licensing has also ushered in.
Mr. Mittal adds, we try to work ahead of the policy that the government lays out.
Sometime we are dealt a good hand and most of the times we are dealt a bad one. And the
idea is to be very nimble and flexible to adapt to the changing environment. Consider, for
example, the way the government brought in unified licenses. But we have adapted to it.
We have applied for new licenses and we have converted one of our existing licenses
into a unified license. We anticipated this move earlier and we are ready to fight this battle
right in the marketplace. Price has never been our fighting point. We have always been
keen on delivering value to the customer. In Western India, we felt we needed to kick up our
operations by giving some special sops to the customer.
Questions:
1 Carry out a five forces model for Bharati Telecom?
2 Does Bharati enjoy a competitive advantage in the market? Can it sustain it? Why or
Why not?
3 Carry out ETOP for Bharti Telecom?