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2108000406010002
Third Year B.B.A(Sem-VI) Seat No:
Examination April 2022
Business Policy and Strategic Management (New Course)
[Time: ThreeHours] [Max. Marks:70 ]
Instruction 1. See the options clearly before you attempt the questions.
2. Write to-the-point answers.
Student’s Signature
3. Numbers to the right indicate marks allotted to that question.

Q.1 Answer the following questions in brief: (Any Seven) 14

A Define Strategic Management.

B List out the stakeholders of the company.
C What is Core competence?
D Define Vision.
E Difference between Policy and Strategy.
F What is OCP?
G Define Turnaround Strategy.
H What is Sustainable Stability Strategy?
I What is switching over cost?
J What is Forward Integration?
K What is SAP?
L Tactics used at which level and why?
M List out the steps of process of Strategic Control.
N What is Combination Strategy?

ATTEMPT ANY THREE QUESTIONS OUT OF Q-2, Q-3, Q-4, Q-5, Q-6 AND Q-7.
Q.2 Define the term ‘Organizational Mission’. Describe characteristics of good mission 14
statement. Also discuss formulation of mission.
Q.3 Discuss role and nature of environmental analysis in detail. 14
Q.4 Explain when and why an organization pursues growth strategy? 14
Q.5 Explain the process of strategic management in detail. 14
Q.6 Explain BCG matrix in detail with diagram as well as its Merits and Demerits. 14
Q.7 Explain value chain approach showing all primary and secondary activities in detail. 14

Q.8 Answer any two questions of the following

a. Read the following case and answer the questions below it. 07
Maruti entered Indian passenger car industry in an era of very high entry barrier in the form
of licensing. It rolled first car Maruti 800in 1983. At that time, there were two other car

1
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manufacturers Hindustan Motors and Premier Automobiles. After delicensing of car

manufacturing, several global players entered like General Motors, Ford, Honda, Daewoo,
Hyundai, Peugeot, Fiat, Mercedes-Benz, and BMW Indian car industry. Besides, Tata
Motors, and other Indian company also entered car segment.
Maruti has the highest range of cars ranging from economy cars to luxury cars. However, it
is facing competition in all segments. In fact, in upper value chain, many competitors are
offering cars perceived to be better than Maruti’s. Therefore, competitive advantage
generated based on wide range of cars is not highly sustainable.
Maruti has about 55% market share in car industry with annual turnover of about 1.5 million
cars (2006-07). However, this percentage is lower than 60% market share in 2000-01 with
total market size of about 7 lakh cars. Maruti is facing aggressive competition from Hyundai
and Tata Motors in lower segments and from Hyundai, Ford, and General Motors in upper
segments. Therefore, the present market share is unlikely to be sustained in future.
Maruti enjoys cost leadership because of two reasons. First, its plant was commissioned
much earlier resulting in lower fixed cost in terms of investment outlay as well as
depreciation cost per annum. Second, having set up large manufacturing facilities, its
operating cost per car is lowest. Unless competitors bring some more efficient systems,
Maruti will continue to enjoy cost leadership.
Being the largest manufacturer. Maruti has developed a wide network of dealers numbering
more than 300 covering the entire country. Other competitors will take lot of time to develop
such a network.Maruti provides efficient after-sales service with about 1,700 workshops
covering 700 cities. Out of these over 300 workshops are attached to dealer outlets while the
rest are Maruti-authorized service stations. The after-sales service of this type has put Maruti
in much advantageous position.
For customer service, Maruti has provided financing service in two forms. First, it is co-
promoter of Citicorp Maruti Finance and Maruti Countrywide Ventures with equity
participation of 26 per cent. Both these firms offer finance facilities to Maruti car buyers on
attractive terms. Second, the company has introduced the concept of Integrated service with
the help of financial institutions which includes auto finance, car insurance, corporate lease,
and fleet management. Though both ideas are good, these can easily be emulated by
competitors and the advantage will not be significant.

Question: Comment upon competitive advantage of Maruti and its sustainability.

b Write a note on: Experience Curve 07

c Write a note on: Retrenchment Strategy (When And Why) 07
d Write a note on: SPACE 07