42 Strategic Management (S.Y.B.M.S.

Sem 11
8. Procedures are plans that established a required method of handli future
activities.

9. Ruler allows no direction.

10. A budget is a statement of expected results, expressed in numerica
terms.

Il. A schedule is a time table of work.

12. A single step in programme is known as a project.
13. A standard is criteria against which performance is compared.
14. A policy defines the areas within which decision can be made by
subordinates.
15. Policies have a hierarchy.
16. Policies serve various purposes.
7—Strategic management is a middle level management function.
18. Strategic management focuses on objectives.
Ans. True: 2, 3, 4, 8, 9, 10, 11, 12, 13, 14, 15, 16, 18
False: 1, 5, 6, 7, 17
C. Fill in the blanks.
I. The word is •derived from the Greek word 'Politeia' meaning polity or
Govemment.
2. defines the areas within which decisions can be made by the
subordinates.
3. , is a guideline within which a manager may use his direction
in managing routine business problems.
4. are the guiding principles established by a company to
govern actions.
5. The term is derived from the Greek word "Strategos" which
means "the art of the general"
6. is the means an organization uses to achieve its
objectives.
7. Management is a set of management decisions and
actions that determines the long-run performance of a
corporation.
8. management enables a firm to achieve and sustain
competitive advantage.
9. management is indeed managing for future or competing
for future.

10. Strategic management is basically management

function.
Business Policy and Strategic Management
43
11. The focus of management is on relating the organization to its external
environment.

12. management is basically top management function.

13. The focus of strategic management is on
14. Strategic management is concerned with the
direction of an organization.
15. Strategic management is oriented towards the

16. Strategy is the top management plan to direct and run the
organization as a whole.
17. Comorate strategy is the strategy encompassing
(including) the entire organization.

18. strategy is also called competitive strategy.

19. The strategy decides the strategies to succeed in

chosen business.
20. strategies are formulated for different functional areas
the production, finance, marketing, R & D, personnel,
I.T. etc.
21. Functional level strategy is the responsibility of
area heads.
22. is any part of a business organization which is treated separately for strategic
management purpose.

23. intent means the purposes the organization strives for.

24. intent of an organization is established in the form
of a hierarchy consisting of several layers.
25. The concept of intent was coined by Hamel and

Prahalad in 1989.

26. is what an organization is and why exists.

27. The essence of vision is a looking view of what an

organization wishes to become.
28. are the desired ends of organizational activity.
29. are the ends that state specifically how the goals shall be
achieved.
30. is the most basic of all the managerial functions.
31. The are formulated by the managers at different
levels, for repeated use, as and when the occasion
demands.
32. The are formulated to meet unique, novel and
nonrepetitive situations.
 44 Strategic
Management

(S.Y.B.M.S. Sem — Ill)

33. are plans that establish a required method of handling

future activates.

34. spell out specific required actions

or non-actions
allowing no direction.

35. is a statement of expected results expressed in

numerical terms.
36. is a time table of work.
Ans. 1 - Policy, 2 - Policy, 3 - Business policy, 4 - Business policies, 5 -
Strategy, 6 - Strategy, 7 - Strategic, 8 -
Strategic, 9 - Strategic, 10 - Top,
11 - Strategic, 12 - Strategic, 13 - Objectives, 14
- Long-term, 15 - Future,
16 - Corporate, 17 Long-term, 18 Business, 19Business,
20 - Functional, 21 - Functional, 22 - SBU, 23 - Strategic, 24 - Strategic,

25 - Strategic, 26 - Mission, 27 - Forward, 28 - Goals, 29 - Objectives,

30 - Planning, 31 - Standing Plans or Repeated-
Use Plans, 32 - Single-Use Plans or Ad hoc Plans, 33 -
Procedures, 34 - Rules, 35 - Budget, 36 — Schedule.
Q.2. Answer in one or two
lines: (1 mark each) What is
business policy?
What is strategy?
What is strategic management?
4. State the 5 steps in the process of strategy
formulation.
5. What is performance analysis?
What is company corporate a strategy?
What is competitive / Business strategy?
What is Functional Strategies?
What is SBU's?
What is strategic
intent? What is mission?
What is vision?
What are goals?
71
14
 What are objectives?
39. Explain in rie e
40. What are procedures?
41. What are the rules?
42. What are the types of single use plans?
43. What is budget?
44. What is a project?
45. What is a standard?
46. What is schedule?
Universi uestions
Q. 1. Objective Type
Questions (A) Fill in
the blanks.
1. level strategy is a long term strategy.(Nov. 2017; Nov.
2018)
(a) Corporate (b) Competitive (c) Functional
2. Vision is shared across entire (Nov. 2017, 2018)
(a), Organization (b) Nation (c) Society

3. are time bound. (Nov. 2017)

(a) Mission (b) Vision C Goals
4. are guides to decision making address repetitive situations.
(Mar. 2018)
(a) Strategies (b) Business policies (c) Business
models
5. Business is known to have of objectives. (Nov. 2018)
(a) Unity C.(bY) hierarchy (c) galaxy
Ans.

(B) State Whether True

or False
1. Strategic management does not raise efficiency. (Nov. 2017)
2. Vision indicates achievable aspirations for the future. (Nov. 2017)
3. Functional level strategy is industry oriented. (Nov. 2017, Nov. 2018)
4. Mission represents business philosophy. (Nov. 2018) 5. Goals
address only financial issues of a company. (Nov. 2018) Ans.
True - 2, 4 False - I, 3, 5

Fill in the blanks choosing the most appropriate word from the bracket
1 level strategy is the long term strategy (Corporate, Competitive,
Functional)

2. Vision is shared across the entire (organization, nation, society)

3. is time bound (Mission, Vision, Goal)
4. is a bridge between policy and action (Management, Vision,
5. is set for a definite period of time (Target, Philosophy, Mission)
6. can be also referred as strategic planning (Strategy implementation,
StrateU formulation, Strategy evaluation)
7. is an organizational framework that provides direction to achieve
organizational goals (SWOT, Vision, Strategic intent)
8. Strategies can be broadly classified into levels (two, three, four)
9. Policies provide in decision making, especially under repetitive
conditions. (consistency, vagueness, inconsistency)
10. defines the basic purpose of existence of firm (Mission, Goals, Vision)
[Ans. : (1 — Corporate), (2 — organization), (3 — Goal), (4 — StrateU), (5 — Target),
(6 — Strategy formulation), (7 — Strategic intent), (8 — three), (9 — consistency),
(10 — Mission)]

Il. State True or False

1. Strategic management does not raise efficiency.
2. Policies have a hierarchy.
3. Vision indicates achievable aspirations for the future.
4. Vision is past oriented.
5. Mission defines the basic purpose of firms existence.

6. Written policies lead to conflicts.

7. Functional level strategy is industry oriented.
8. SBU works on the principle of micro-management.
9. Planning is the basic managerial function.
10. Strategic management is a middle — level management function.
ll. The process of strategic management begins with strateU formulation.
12. Corporate strategy is framed by top level management.
13. Business level strategy operates within the framework of existing strateU.
14. Functional level strateU is department oriented.
15. Goals need not be time bound.
16. Standing plans are ongoing plans.
[Ans. : True : 2, 3, 5, 8, 9, 12, 13, 14, 16
False 1, 4, 6, 7, 10, 11, 15]
 Strategic Management (S.Y.B.M
94 . Sem

1. Stability strategy Group'B

2. Defensive strategy
3. Growth strategy No - change in scope of
d. Reduction in scope of activities
4. Integration combining activities
5. Retrenchment strategy
Il. Match the columns:
activities

Ans. 1 - c, 2 - a, 3 - b, 4 - e, 5 - d
B. State whether True or False:
1. Growth strategy is also known as intensification strategy.
2. Integration is an expansion strategy.
3. Vertical integration can be of two types: backward and forward.
4. Internalization strategies are a type of
expansion strategies.
5. There are four types of international strategies.
6. Corporate - level strategy is formulated for organizations which carry a
single line of business.
7. Business - level strategy is formulated for those organizations which
carw different lines of business.
8. Strategies for functional areas are called functional strategies.

Ans. True: 1, 2, 3, 4, 5, 8False: 6, 7,

C. Fill in the blanks.
1. the process through which an organization
analysis is monitors various environmental forces to identify
opportunities and threats which it is likely to face.
 2.
scanning is the process by which organizations
monit01 their relevant environment to identify opportunities and
threag affecting their business for the purpose of taking strategic
decisions.
3.
is the abbreviation for Strengths (S), Weaknesses (W)
Opportunities (O) and Threats (T).
4.
strategy is made for the corporate enterprise as a whole•
5.
strategy is made when organizations want to expand
along some major dimensions like sales, profits, markets etc.
6.
strategy is suitable for small firrns which are satisfied
with their products or market growth.
7.
strategy is adopted by organizations who
I Want to restructure their business.
 FörmUlåtiOn
strategy
8. aims at tuming the loss-making units into profit-making units by cutting
the loss-making operations or costs.
9. involves selling or disinvesting that part of the Business which is loss making
and using sale proceeds to strengthen the remaining business operations.
10. strategy is a combination of different strategies adopted along different
business activities.
11. strategy results from attempts by an organization at
incremental improvement of functional performance.

12. strategy is also known as expansion strategy or

intensification strategy.
13. strategy is followed when an organization substantially
reduces the scope of its activities.
14. means combining activities related to the present activity
of a firm.
15. When an organization takes up the same type of products at the same level
of production or marketing process, it is said to follow a strategy of

16. When an organization starts making new products that serve its own
needs, integration takes place.
17. integration means retreating to the source of raw
materials. For example, a cloth mill may add spinning mill.
18. integrationmovestheorganizationahead,takingitnearer
to the ultimate customer.
19.strategies are a type of expansion strategies that require
organizations to market their products or services beyond the
domestic or national market.
20. Firms adopt an strategy when they create value by
transferring products and services to foreign markets where these
products and services are not available.
21. Firms adopt a strategy when they hy to achieve a high
level of local responsiveness by matching their products and sewice
Offering to the national conditions operating in the countries they
operate in.

22 • Firms adopt a strategy when they rely on

approach based on reaping the benefits of experience and location economies and
offering standardize& products and services across different countries.
 ategic Management (SLY.B.
• Sem
strategy
when they adopt a corn local
responsiveness approach of low-cost and hig their products
and services.
24. Comorate-levelstrategyofbusiness.isformulatedfororganization
which lines

25. Business-levelstrategyisformulatedforthoseorganizationslineof
business.

Strategy the firm increases market share by low

the cost of its products, reducing the selling price and increasing
sales volume.

27. InStrategy the firm increases its market share y,

keeping the prices of its products same or even more than those of
it competitors.

28. InStrategy the firm increases its market share,

sale volume and profits by focusing on a section rather than the
entire market.

29. Strategies for functional areas are calledstrategies.

30.function involves the transformation of set of inputs

to predetermined outputs in accordance with the objectives of the
organization.

31. consistsofactivitiesthroughwhicheitheranewprodud
can be developed or an existing product can be improved, so that it
becomes more useful.

32. strategyofanorganizationinvolvesupgradationofits
physical facilities like plant and machinery, the hard version and
upgradation of its organizational processes, the soft version.
33. Strategy of a firm is the complete and unbeatable
plan or instrument designed specifically for attaining the marketing
objectives of the firm.
34.Defense involves building superior brand power,
making the brand almost impregnable.
 35.Defense involves the launching of an offense against an
enemy before it starts an offense.

36. Defense is a strategy of identifying a weakness in an

attacker and aggressively going after that market niche so as to cause
the competitor to pull back its efforts to defend its own territory.
37.defenses strategy involves the leader's broadening and
expanding its territories into new market areas by diversifying.
which

Formulation

tions strategy attack is aimed at the sides of the opponent. This 38.
Whi means that the opponent's weaknesses are attacked.
attack involves launching an attack all around the
opponent. 39. attack involves making small interrnittent attacks on 40.
by loweri different territories of the opponent aiming to harass and demoralize
creasing the

t share by 41. The policies and plans of an organization are related to

those of the sources, usage and management of funds.
its 42. policies deal with one of the most precious
resourceshuman resources, in the organization.

hare, sales Ans. I - Environmental, 2 - Environmental, 3 - SWOT, 4 - Corporate

the level, 5 - Growth, 6 Stability, 7 - Defensive, 8 - Turnaround, 9 -
Divestment, 10 - Combination, 11 - Stability, 12 - Growth, 13
entire
Retrenchment, 14 - Integration, 15 - Horizontal Integration, 16 - Vertical, 17
gies.
Backward, 18 - Forward, 19 - Internationalization, 20 - International, 21 -
Multi-domestic, 22 - Global, 23 - Transnactional, 24 Different, 25 - Single,
f inputs to 26 - Cost Leadership, 27 - Differentiation, 28 - Focus, 29 - Functional-level,
es of the 30 - Production, 31 - R & D, 32 - Modemization, 33 - Marketing, 34
Position, 35 - Preemptive, 36 - Counter offensive, 37 - Mobile, 38 - Flank,
39 - Encirclement, 40 - Guerilla, 41 - Financial, 42 - H.R.M.
w produd
so that it Q.2 Answer in one or two lines: (one mark each)
What is environmental analysis?
tion of its 2. What is environmental scanning?
rsion and What is SWOT analysis?
4. What is a Corporate level strategy?
table plan
marketing 5 What are the types of corporate strategies?
What is a defensive strategy?
What is a harvest strategy?
d power, 8 What is a turnaround strategy?

gainst an 9. What is a divestment strategy?

What is a bankruptcy strategy?
ess in to What is a liquidation strategy? 12. bili strategy?
cause
 State the types of stability strategy.
12.
State the advantages of stability strategy.
13.
When expansion / growth strategy is adopted? 14. state the symptoms which
indicate the need foe retrenchment strategy. 15.
State the reasons for retrenchment strategy.
16.
17. State the advantages of horizontal integration strategy.

18. State the disadvantages of horizontal integration strategy.

19. State the types of vertical integration.

20. State the advantages of vertical integration strategy.
21. State the disadvantages of vertical integration strategy.

22. State the types of intemational strategies.

23. What are internationalization strategies?
24. State the advantages of intemational strategies.

25. State the disadvantages of intemational strategies.

0 26. State the types of busi ess level strategies.

Universi uestions
Q.l Objective Type Questions
(A) Fill in the blanks. intervals. (Nov. 2017)
1. SWOT analysis is used at (c) Regular
(a) Frequent (b) Infrequent
2. Environmental identifies opportunities and threats (Nov. affecting 2017)the

business. (c) Evaluation (a) Control

Strategies ensure that organization selects the right person for

the job at the right time. (c) Production
4. integration occurs when a producing firm starts undertaking
the (c) Forward marketing and distribution of the same product. (a) Backward(b)
Horizontal
Strategic Management (S.Y.B.M. Se
level strategiq 4,
5. Stability, Growth, Retrenchment etc are types of (Mar. 2018)

(a) Business (b) 3,

7. strategy aims to reduce the size, diversity, markets or products 2018)q (Mar.
an organization. 9.

(a) Diversification (b) Market development (c) Retrenchment 10.

(a) Business (b) Functional (c) Corporate

6. environment consists of larger factors like political, economicpis (Ma.

20181 social etc. that affect the firms.Internal (c) MacroEsp

control. (Mar. 2018) Ex

(a) Strengths (b) Opportunities (c) Weaknesses 13.
9. SWOT analysis is used at interval. (Nov. 2018) a.
(a) frequent (b) infrequent (c) regular b.
10. Diversification is an example of growth strategy. (Nov. 2018) c.
(a) Internal (b) external (c) environmental d.
11. strategy ensure that organization selects the right person for right job.
(Nov. 2018) e.
(a) Human resource (b) Marketing (c) Finance f.
Ans. 1. - c, 2. - b, 3. - a, 4. - c, 5. -c, 6. - c, 7. -c, 8. - b, 9. - c, 10. - a, 11. -a g.

8. and threats are extemal factors over which the business has no (11.

(B) State whether True or False

1. Environmental analysis is an ado-hoc process. (Nov. 2017)
2. Divestment strategy identified promising investments. (Nov. 2017)
3. Corporate strategies are usually developed by the lower level management
(Mar. 2018)
4. Concentric diversification is when a firm inters a totally new area Of business.
 (Mar. 2018)
5. In stability strategy, the firm chooses to introduce new products in current markets.
(Mar. 2018)
6. Market penetration is a type of growth strategy. (Mar. 2018) 7. Environmental
scanning is holistic exercise.
(Nov. 2018) 8.
Tumaround is a team activity.
(Nov. 2018)
9. Functional strategies provide roadmap to achieve objectives of functional areas. (Nov.
2017)
10. Bargaining power of buyers refers to the potential of suppliers to increase the prices
of inputs. (Mar. 2018)
Ans. True - 6, 8, 9 False - 1, 2, 3, 4, 7, 10
Answer in brief
I. What is SWOT analysis? Explain with the help of corporate example.
o
1. Mission a) comprehensive and integra e p an 6.
2. Vision b) Ambition to excel

3. Policies c) SMART B.
9.
4. Strategic Intent d) Analyses strength, weakness, opportunities 10 and threats
5. SBUe) Broad guidelines
6. StrateU f) Multi — product business
7. Objectives g) Systematic process
8. Strategic Management h) Organizations philosophy and purpose 1. 9. SWOT i) Fore
-sightedness 1.
[Ans. (1 — h), (2 —i), (3 — e), (4 —
2.
11 : STRATEGY FORMULATION 3.
UNIT
I. Fill in the blanks choosing the most appropriate word from the bracket
I. Management Values are a part of business environment. 4.
(Internal, external, both )
2. environment is also called as operating environment. 5
(Mirco; Macro, Political) 6
3. Lobbying activities are _ results of forces operating in business
environment. (Legal„ PoliticaL economic)
7
4. Family systems, religion, languages etc. are a part of of environment
8 of business. (Social, Economic, Political)

5. Information revolution is a result of change in environment. 9

(Social, Legal, Technical)
1
6. is inherent capacity for developing strategic advantage. (Strength,
Opportunity, Threat)
7. Product expansion is a strateU. (Growth, Stability,
Retrenchment)
8. is a strateU to convert loss making unit into a profitable one.
.(Turnaround, Growth, Stability) 1
9. are formed on the basis of co-operation.
(Joint Ventures, Strategic Alliances,oothj
10. When a firm outperforms its competitors by offering products
and services at lower cost it is said to use strategy. (cost
leadership, differentiation, functional)
[Ans. : (1 — Internal), (2 — Mirco), (3 — Political), (4 — Social), (5 —
Technical)'
(6 — Strength), (7 — Growth), (8 — Turnaround), (9 — Both), (10 — cost
leadership)]

Il. State True or False

1. Foreign exchange rates are component of economic environment.
2. SWOT analysis is also called as ETOP.
 Objective Questions 1

3. Growth strategies encourages creativity.

4. Disinvestment strateU involves liquidation of a portion of business.
5. Incompetence of entrepreneur may lead to liquidation of business.
6. As compared to licensing , franchising is for a short term. 7. HR, Finance
are part of functional strategies.
8.' Consumer laws is a component of economic environment.
9. Diversification is an example of growth strateU.
10. Surgical approach is an approach turnaround strateU.
[Ans. : True : 1, 2, 3, 4, 5, 6, 7, 9, 10
False : 81
 Implementation

State whether True or False: 135

The entrepreneurial model is dominated by an active search for 1.

Decisions in adaptive organization are usually fragmented and 2.

planning mode involves decision - making in anticipation of future

3.

Strategic analysis can be done at two levels, the corporate and the 4.
business levels.
5. Strategic choice involves the decisions to select from among the altemative
strategies.
6. The factors affecting strategic choice are only the objective factors.
7. Past strategies is a subjective factor.
8. Cash cows are the high growth businesses or products.
9. Stars are the low growth businesses or products.
10. Question marks are businesses or products with low market share but
which operate in higher growth markets.
Il. Dogs have a high market share and a high growth share rate.
12. GE a Cell is based on the pioneering efforts of the General Electric
Company.
Ans. True: 1, 2, 3, 4, 5, 7, 10, 12 False: 6, 8, 9, 11
C. Fill in the blanks.
1. model applies to risk-seeking organizations

2. The entrepreneurial mode of strategy making is

in nature.
3. The adaptive in nature.
4. model is similar to entrepreneurial model, with the
difference that this model of making strategies is more scientific and
systematic in nature.
5. The mode essentially involves decision-making in
anticipation of a future state that the company wants to be in.
6. is the investigation of the objective factors considered in
the process of strategic choice.
 is the decision to select from among the alternative strategies
considered which will best meet the organization's objectives.

Strategic Management (S.Y.B.M.S.

 involves the selection of a strategy or set of så-a
that helps in achieving organizational objectives.
9. are high growth businesses or products competing in matkes where they
are relatively strong compared with the competition.
are low - growth businesses or products with a relati
high market share.
11. are businesses or products with low market share
which operate in higher growth markets.
12.have low market share and a low growth rate
and this neither generate nor consume a large amount of cash.
13. Theis the ability of the buyers, individually or
collectively, to force a reduction in prices of products or services,
demand a higher quality or better service or to seek more value for
their purchases in any way.

14. The constitutes their ability, individually or collectively,

to force an increase in the price of the products or services or make
the buyers accept a lower quality of product or level of service.
15. highlightstheinterconnectionbetweensevenfactors
and their role in successful implementation of strategy.
Ans. 1 - Entrepreneurial, 2 - Offensive, 3 - Defensive, 4 - Planning 5 -
Planning, 6 - Strategic analysts, 7 - Strategic choice, 8 - Strategic choice' 9 - Stars,
10 - Cash cows, 11 - Question marks, 12 - Dogs, 13 - Bargaining power of buyers, 14
- Bargaining power of suppliers, 15 - Mc Kinsey's 7 - S framework,.

Q.2. Answer in one or two lines: (one marks each) I.

State the model of strategy making.
2. What is entrepreneurial model?

3. What is adaptive model?

4. What is planning model?

5. What is strategic analysis?

6. What is strategic choice?

 What is
27. What are action plans?

28. What is resource mobilization?

29. What is resource allocation?

30. What is procedural implementation? 31, What is project
implementation?
32. What is structural implementation?
33. What is functional implementation?

34. What is behavioral implementation?

Universi Questions
Q. 1 Objective Type Questions
(A) Fill in the blanks.
1. McKinsey's 7s framework includes (Nov. 2011)
(a) Systems (b) Stage (c) Signal
2. mode deals with short term goals. (Nov. 2011)
(a) Planning (b) Adaptive (c) Integrated
3. Strategic choice determines the strategy of firm. (Nov.
2011)
(a) Past (b) Present (c) Future

"tegy Implementation developed the 'five forces model' that determine industry
structure.
(a) Michael Porter (b) Ansoff (Mar. 2017) quadrant in BCG matrix
represents (c) business BCG units having a 5.
large market share in a mature industry.
(a) Cash cows (b) Stars (Mar. 2018)
6.
McKinsey's 7s framework includes (c) Question mark
(a) staff (b) stage (Nov. 2018)
7. PEST analysis is a tool of strategic (c) signal
(a) analysis (b) implementation (c) evaluation (Nov. 2018)
 Ans.
(B) State whether True or False
1. Strategic analysis is a component of strategic management. (Nov. 2017)
2. BCG model is applicable to single business firm. (Nov. 2017)
3. Strategy, structure and systems are soft elements in the McKinsey 7s
model. (Mar. 2018)
4. BCG is applicable to single business firm. (Nov. 2018)
5. GE 9 cell was developed by General Motors. (Nov. 2018)
6. Shared values are not the part of 7s framework. (Nov. 2018)
Ans. True - 1, 3 False - 2, 4, 5, 6
Q.2. Answer in brief
l. What is BCG matrix? Explain with the help of diagram and (Nov. with suitable2017)

example. (Nov. 2017

2. Explain GE planning grid (GE 9 Cell)
3. Explain " BCG matrix' with suitable productæxamples of a single (Mar
company.2018)

4. Explain BCG matrix as a technique of portfolio analysis with an (Nov.

example.2018)
(Nov. 2018)
5. Write a note on Mckinsey's 7S framework,
6. Write Short note (Nov. 2017)
a. GE's 9 cell matrix
ncauomtszanexampwor growtm strateU.
10. surgical approach is an approach turnaround strategy.
: True : 1, 2, 3, 4, 5, 6, 7, 9, 10
False : 8]

UNIT 111 : STRATEGY IMPLEMENTATION

Fill in the blanks choosing the most appropriate word from the bracket
1. model assumes that subordinates are passive.
(Elite, process, rational)
2. model is concerned with development of new strategy
which is variation of process. (Incremental , process, rational)
3. Question marks are products with industry growth but
low market share. (High and low, Low and high, low and medium)
 4. Expansion strategy is used in stage of product life cycle.
(Growth, decline, maturity)
5. Rational factors are called as factors. (Objective, subjective, both)
6. matrix is referred to as 3*3 matrix.
(Boston Consulting Grid, GE planning grid, both)
7. Strategy is a component. (Hard, soft, both) t
8. Matrix structure is a combination of . (divisional and functional,
SBU , none)
9. StrateU implementation requires proper (structure, control, both)
10. Divisional structure is used incompanies. (small, large , medium)

[Ans. . (1 - Elite), (2 Incremental), (3 — High and low), (4 — Growth), (5 —

Objective), (6 — GE planning grid), (7 — Hard), (8 — divisional and functional),
(9 - both), (10 — large)]

Il. State True or False

1. Strategic choice is a part of a strategic process.
Strategic choice is concerned with strategic decision making.
Internal organizational analysis helps to explore the organizational strength and
weaknesses.
External organizational analysis help to reveal opportunities and strengths.

GE planning grid is based on market attractiveness and business strength.

5 forces model was proposed by Micheal Porter.
Organisational objectives affect the process of resource allocation.
 no problem communication and

142
8. In functional co-ordination.
9. Divisional structure involves low cost.
[Ans. : True : 1, 2, 3, 4, 5, 6, 7
False : 8, 91
 To implement the change plan, there is ruor allocation c ange of
implementation.resources and making of administrative arrangements. The
manager or specialist who is to implement the plan should be committed,
devoted and have leadership qualities for successful plan implementation.
(8) Review and Feedback
Review and evaluation of the progress of change implementation is
required to see that the change implementation is moving in the right direction.
Continuous review and feedback may provide the required information to the
manager, to enable him to take action to speed up the implementation in the
correct direction.

REVIEW UESTIONS
UNIT 4
Objective Questions
A. Match the columns:
Group s A' Group «B'
Strategic evaluation a. Chief Executive
I.
2. Resistance to evaluation b. Evaluating strategy effectiveness
3. Participants in strategic c. Intemal consistency
evaluation
4. Qualitative criteria d. Net Profit
5. Quantitative criteria e. Problem of strategic evaluation and control

Ans. 1 - b, 2 - e, 3 - a, 4 - c, 5 - d
B. State whether True or False:
1. The first step in the control process is measurement of actual

2. Taking corrective action is the last step in the control process.

3. Strategic control and Operational mean the same.

4. special control is a type of strategic control.

184 Strategic Management (S.Y.B.M.S Sem Ill)
5. Conceptofsynergyisthatthewholeisgreaterthanthesumofits
parts.
 6. Education and communication is the only strategy for overcoming
resistance to charge.

7. Resistance to change can take place only at the individual level.

Ans. True: 2, 4, 5 False: 1, 3, 6, 7
C. Fill in the blanks
I. The purpose of is to evaluate the effectiveness of
strategy in achieving organizational objectives.
2. Thecriteriaforevaluatingstrategycanbeclassifiedintocriteriaand
criteria.
3. The first step in the control process is
4. The second step in the operational
control
5. The third step in the control process is
6.is the difference between actual performance and
budgeted (standard) performance.
7. The last step in the control process is
8.is related to that aspect of strategic management
through which an organization ensure whether it is achieving its objectives
contemplated in the strategic action.

9. is concerned with tracking a strategy as it is being

implemented, detecting problems or changes in its underlying
premises, and making necessary adjustments.
10.is concerned with action or performance and that is why
control focuses on the results of strategic action and is aimed at
evaluating the performance of the whole organization, different SBUs
and other units, to assess their contribution to the achievement Of
organizational objectives.
11. In control which measures results after an action is completed.
12.is designed to detect deviations from standards and
to permit corrective actions before an operation is fully completed.

13.control serves the purpose of continually testing the

assumptions to find other whether they are still valid or not.
14. controlissuitablefororganizationsoperatingina
relatively stable environment.
15. When the environment is relatively unstable and

dynamic, in which various factors change

beyond production, control is used.
16. control is designed to assess whether the overall
strategy should be changed in the light of unfolding events and results
associated with incremental steps and actions that implement the
overall strategy.
Strategic Evaluation and Control
185
17. is designed to monitor a broad range of events inside and outside the
organization that are likely to threaten the course of the firm's strategy.
18. control is aimed at the allocation and use of
organizational resources.
19. Intemal analysis deals with the identification of
strengths and weaknesses of a firm in absolute
terms.
20. Value chain analysis focusses on a set of inter-related
activities performed in a j sequence for producing
and marketing a product or service.

21. considers the financial and the non-financial

quantitative parameters, such as physical units or
time, in order to assess performance.
22. supplements the quantitative analysis by including
those aspects which is not possible to measure on
the basis of numbers.
23. The basic idea behind the framework is that
sustainable strategic advantage results through the
use of capabilities that are valuable, rare, inevitable
and organized for usage.
24. compares the performance of a firm with its own past
performance or with other firms.
25. is a frequently used technique for comparing the
performance of a firm over a given period of time.
26. is a comparative method for analyzing performance
that has the advantage of making a firm competitive
in comparison to other firms in the same industry.
27. is a comparative method where a firm finds the best
practices in an area and then attempts to bring its
own performance in that area in line with the best
practice.
28. analysis adopts a total approach rather than
focussing
on one area of activity or a function or a department.
29. is based on the identification of four key
performance measures of customer perspective,
internal business perspective, innovation and
learning perspective, and the financial perspective.
30. is a method that takes into account the key factors in
several
 areas and then sets out to evaluate performance on the basis of
these.
31. is one of the concepts used for discovering
knowledge from various internal and external data
repositories available to an organization to support
effective decision-making.
is an indigenous system adopted usually, by
Marwari firms to keep track of daily cash generation.
 186 Strategic Management (S.Y.B.M.S Sem 111)

33.techniques like Programme Evaluation and Review

Technique (PERT), Critical Path Method (CPM), and their variants are
used extensively for planning and scheduling activities.
34.is based on a regular evaluation of performance against
objectives, which are decided upon mutually by the superior and
subordinate.
35. is an agreement between a public enterprise and the
Govemment, represented by the administrative machinery in which
both parties clearly specify their commitments and responsibilities.
36.is one of the major components of the firm's product —
market strategy.
37.is the advantage to a firm gained by having existing
resources which are compatible with new products or markets that
the company is developing i.e. with product market entries.
38.can occur when products use common distribution
channels, common sales administration, or common warehousing.
39.is the result of higher utilization of facilities and
personnel, spreading of overhead, advantages of common leaming
curves, and large - lot purchasing.
Ans. 1 - Strategic evaluation, 2 - Quantitative, 3 - Setting of standards, 4 -
Measurement of actual performance, 5 - Identifying deviations or analyzing
variances, 6 - Variance, 7 - Taking corrective action, 8 - Strategic control, 9 -
Strategic control, 10 - Operational control, 11 - Post-action, 12 - Steering control,
13 - Premise, 14 - Strategic momentum, 15 - Strategic leap, 16 - Implementation,
17 - Strategic surveillance, 18 - Operational, 19 - Internal analysis, 20 - Value chain
analysis, 21 - Quantitative analysis, 22 - Qualitative analysis, 23 - VIRO, 24 -
Comparative analysis, 25 - Historical analysis' 26 - Industry norms, 27 -
Benchmarking, 28 - Comparative, 29 - Balanced scorecard method, 30 - Key factor
rating, 31 - Business intelligence system 32 - Parta System, 33 - Network, 34 -
MBO, 35 - Memorandum Of Understanding, 36 - Synergy, 37 - Synergy, 38 - Sales
Synergy, 39 - Operating Synergy.

Answer in one or two lines: (One Marks Each)

1. What is strategy evaluation?
2. What is strategic control?

3. What is operational control?

4. What is premise control?
 5. What is strategic momentum control?
188 Strategic Management (S.Y.B.M.S Sem Ill)

Universi Questions
Objective Type Questions
(A) Fill in the blanks.
1. Standards can be either quantitative or (Nov. 2017)
(a) Numerical (b) Qualitative (c) Quote
2. Financial synergy puts capital to use. (Nov. 2107, 2018)
(a) Future (b) Optimum (c) Perfect
3.synergy ensures that two departments do not work on the
same product aspects. (Mar. 2018) (a) Operational (b) Financial (c)
Functional
4. Change management is (Nov. 2018)
(a) inevitable (b) optional (c) avoidable Ans.

(B) State whether True or False

1. ROI is a measure of financial performance. (Nov. 2017)
2. Resistance to change is mostly physical. (Nov. 2017, 2018) 3. The
measurement of performance must be done at the right time, else the
evaluation will not meet its purpose. (Mar. 2018)
4. Performance gap analysis identifies gaps between the actual and desired
performance. (Mar. 2018)
5. Break-even analysis and budgetary control are financial controlling techniques.
(Mar. 2018) 6. ROI is a measure of marketing performance. (Nov. 2018)
Ans. True - 1, 3, 4. 5 False - 2, 6
Q.2. Answer in brief
1. What is strategy evaluation? Explain the different steps of evaluation.
(Nov. 2017)
2. What is change management? Explain how to overcome or manage
resistance to change. (Nov. 2017)
3. Discuss s Steps' in evaluation of strategy. (Mar. 2018) 4. Discuss the of control used
in strategic management.
(Mar. 2018) 5.
Explain the process for implementation of change in an organization.
(Mar. 2018)
6. What is Synergy. Explain the different types of synergy. (Nov.
2018)
7. Explain the different reasons for organizational change. (Nov. 2018)
 8. Write short notes
a. Synergy (Nov. 2017)
b. Synergy in business (Mar. 2018)
c. Management of change (Nov. 2018)

aaa
False : 8, 9]

UNIT IV : STRATEGIC EVALUATION & CONTROL

I. Fill in the blanks choosing the most appropriate word from the bracket

I. according Strategy must to principle represent of an adaptive

(consistency, response consonance, to the external bothenvironment
2. control is the process of ensuring that specific tasks are carried out
effectively and efficiently. (Operational, strategic, both)
3. Budgets are example of control. (Operational, strategic, both)
4. Systems modeling is associated with control. (Premise, Leap,
Implementation)
5. centre is thus judged in terms of effectiveness rather than efficiency.
(Revenue, Cost, both)

6. Value chain, qualitative and quantitative analysis is concerned with

analysis. (internal, external, both)
7. The word synerU is derived from the
French) word "synergos". (Greek, Latin

8. Change is in nature. ( pervasive, planned, both) 9.

managers are never in favour bringing change. (Traditional,
Modern )
10. helps in avoiding resistance to change . (Leadership, Shared
Rewards, both)
[Ans. : (I — consonance), (2 — Operational), (3 — Operational), (4 Leap),
(5 — Revenue), (6 — internal), (7 — Greek), (8 — both), (9 — Traditional), (10 —
both))

Il. State True or False

1. Strategies must be consistent with organisational goals.
2. Scenarios are different perceptions about the likely environment a firm
would face in the future.
3. Standard cost centres used in manufacturing facilities.
 4, Investment centres is measured in terms of the differences between its
resources and its services or products.
5. PERT and CPM are networking techniques.
6. Synergy is a term that is most commonly used in the context of mergers
and acquisitions.

7. Lower cost of capital is a result of operating synergy.

8. Identification of need for change is the first step in change management•
9. Shortage of resources can lead to resistance to change.
10. Redundancy ofjobs does not lead to resistance to change.
[Ans. : True : 1, 2, 3, 4, 5, 6, 8, 9
False : 7, 10]