Name – Utkarsh Chauhan Roll No.

– 2114103458

DMBA – 401 STRATEGIC MANAGEMENT AND BUSINESS POLICY

(SET-1)

1. Discuss PESTEL analysis.?

Answer – PESTEL analysis is a strategic framework that helps businesses examine and understand
the external macro-environmental factors that may affect their operations. It consists of six
categories: Political, Economic, Social, Technological, Environmental, and Legal. Each category
encompasses different elements that can influence a company's decision-making and overall
business environment.
1. Political factors: This category focuses on the political environment, including government
policies, stability, and regulations. It examines how political factors can impact a company's
operations and profitability. For instance, changes in tax policies or trade regulations can
significantly affect a company's financial performance.
2. Economic factors: Economic factors consider the broader economic environment, such as
economic growth, inflation rates, exchange rates, and interest rates. These factors can
impact consumer spending, demand for products or services, and investment decisions.
Businesses need to be aware of economic trends to adjust their strategies accordingly.
3. Social factors: Social factors examine the social environment, including demographics,
cultural trends, consumer behavior, and lifestyle preferences. Companies need to
understand social dynamics to effectively target their markets, adapt their products or
services, and develop appropriate marketing campaigns.
4. Technological factors: Technological factors assess the impact of technological
advancements, innovations, and automation on a business. This includes analyzing how
technology affects production processes, operations, distribution channels, and customer
engagement. Embracing technological developments can provide companies with a
competitive advantage.
5. Environmental factors: Environmental factors consider the ecological environment and
sustainability concerns. This involves examining environmental regulations, climate change,
and the overall impact of business activities on the environment. Organizations are
increasingly expected to adopt environmentally responsible practices to mitigate risks and
meet consumer expectations.
6. Legal factors: Legal factors focus on the legal environment, including regulations, laws, and
legal systems that affect business operations. This category encompasses aspects such as
labor laws, intellectual property protection, and compliance requirements. Companies must
understand and adhere to legal obligations to avoid legal disputes and maintain ethical
practices.
By conducting a PESTEL analysis, businesses gain insights into the external factors that can influence
their operations. This analysis helps identify potential opportunities, threats, and risks in the
business environment. Armed with this knowledge, organizations can develop strategies to adapt,
mitigate risks, and capitalize on opportunities for sustainable growth and success.

2. Explain the strategic management process. Write short notes on SBUs.

Answer - Strategic management is a systematic approach to developing and implementing strategies that help an
organization achieve its objectives. It consists of several key stages:
1. Analysis: This involves evaluating both internal and external factors to identify the organization's
strengths, weaknesses, opportunities, and threats. This analysis includes assessing resources, capabilities,
and the competitive landscape.
Name – Utkarsh Chauhan Roll No. – 2114103458

2. Strategy Formulation: Using the insights gained from the analysis, the organization creates a strategy that
aligns with its vision, mission, and objectives. This step involves identifying strategic options and selecting
the most suitable approach to reach the desired goals.
3. Implementation: The chosen strategy is put into action through resource allocation, action planning, and
establishing a monitoring system to track progress towards the strategic goals.
4. Evaluation: The performance of the organization is regularly reviewed and assessed against the strategic
goals. This evaluation helps identify any deviations or areas for improvement, allowing for necessary
adjustments to be made to the strategy.
Strategic Business Units (SBUs) are independent subunits or divisions within an organization that focus on specific
products, services, or markets. Each SBU operates with its own strategy, goals, and objectives, and is accountable
for its performance. SBUs can be structured based on product lines, geographic regions, or customer segments.
SBUs provide a means for larger organizations to effectively manage their operations by breaking them down into
smaller, more manageable units. This approach enables the organization to concentrate on specific markets,
products, or customers, and develop tailored strategies to meet their unique needs. Granting SBUs autonomy
allows them to respond swiftly to changes in their environment and make decisions that best serve their specific
business requirements.
In conclusion, SBUs are autonomous subunits within an organization responsible for distinct products, services, or
markets. They offer a way for large organizations to enhance management efficiency by dividing operations into
more manageable units. The strategic management process involves analyzing, formulating, implementing, and
evaluating strategies to guide an organization towards its objectives.

3. Illustrate any four Probability Sampling Techniques.

Answer - Strategic controls are a set of mechanisms or processes that are put in place to monitor
and evaluate the performance of an organization and its strategies. Strategic controls help
organizations to ensure that their strategies are aligned with their goals, objectives, and values, and
to make necessary adjustments when needed. There are different types of strategic controls that
organizations can use to evaluate their strategies. In this answer, we will describe some of the
common types of strategic controls.

1. Premise Controls: Premise controls are used to evaluate the assumptions and beliefs that
underlie an organization's strategy. They are used to ensure that the organization's strategy
is based on accurate and reliable information. Premise controls involve monitoring the
external environment to detect changes that could impact the organization's strategy.

2. Strategic Surveillance: Strategic surveillance involves monitoring the external environment

to identify opportunities and threats that could impact the organization's strategy. It helps
Name – Utkarsh Chauhan Roll No. – 2114103458

organizations to identify changes in their competitive environment and to adjust their

strategy accordingly.

3. Implementation Controls: Implementation controls are used to monitor the implementation

of an organization's strategy. They ensure that the organization is making progress towards
achieving its goals and objectives. Implementation controls involve monitoring key
performance indicators (KPIs) and conducting regular performance reviews.

4. Strategic Momentum Controls: Strategic momentum controls are used to maintain the
organization's momentum towards achieving its strategic goals. They ensure that the
organization is moving forward and making progress towards its goals. Strategic momentum
controls involve monitoring the organization's performance and making necessary
adjustments to keep the organization on track.

5. Strategic Feedback Controls: Strategic feedback controls involve obtaining feedback from
stakeholders and using it to improve the organization's strategy. They involve gathering
feedback from customers, employees, and other stakeholders and using it to make
necessary adjustments to the organization's strategy.

6. Strategic Reassessment Controls: Strategic reassessment controls involve reassessing an

organization's strategy to ensure that it is still relevant and effective. They are used to
evaluate whether the organization's strategy is still aligned with its goals, objectives, and
values. Strategic reassessment controls involve conducting regular reviews of the
organization's strategy and making necessary adjustments.

In conclusion, strategic controls are essential for organizations to monitor and evaluate their
strategies. There are different types of strategic controls that organizations can use to evaluate their
strategies. Premise controls, strategic surveillance, implementation controls, strategic momentum
controls, strategic feedback controls, and strategic reassessment controls are some of the common
types of strategic controls that organizations can use to evaluate their strategies. Each of these types
of strategic controls plays a critical role in ensuring that an organization's strategy is aligned with its
goals, objectives, and values, and that it is making progress towards achieving its strategic goals.

DMBA – 401 STRATEGIC MANAGEMENT AND BUSINESS POLICY

(SET-2)

4. Discuss any four Scaling Techniques of your choice.

Answer – Business policies are guidelines or rules that organizations establish to govern their
actions and decisions. Business policies provide direction, guidance, and control for decision-making
at all levels of the organization. Business policies can be used to manage various aspects of the
organization, such as operations, finances, marketing, and human resources. The process of framing
business policies involves several steps. In this answer, we will describe some of the common steps
involved in framing business policies.
Name – Utkarsh Chauhan Roll No. – 2114103458

1. Identification of Business Objectives: The first step in framing business policies is to identify
the organization's business objectives. Business objectives are the specific goals or outcomes
that the organization wants to achieve. These objectives should be aligned with the
organization's mission, vision, and values. Business objectives can be short-term or long-
term, and they should be specific, measurable, achievable, relevant, and time-bound.

2. Evaluation of the Current Situation: The next step in framing business policies is to evaluate
the current situation of the organization. This involves an assessment of the organization's
strengths, weaknesses, opportunities, and threats (SWOT analysis). This step helps the
organization to identify areas where it needs to improve and to determine the resources and
capabilities it has to achieve its business objectives.

3. Identification of Alternatives: After evaluating the current situation, the organization should
identify alternative policies that can help it achieve its business objectives. This involves
brainstorming and generating different policy options that the organization can consider.
These alternatives should be evaluated based on their feasibility, effectiveness, and
alignment with the organization's goals.

4. Selection of the Best Alternative: Once the alternatives have been identified, the
organization should select the best policy option that will enable it to achieve its business
objectives. This involves a thorough analysis of each alternative and weighing the pros and
cons of each option. The selected alternative should be consistent with the organization's
goals and values and should be feasible and effective.

5. Implementation of the Policy: After selecting the best policy option, the organization should
develop an implementation plan. The implementation plan should include specific actions,
timelines, and responsibilities for each step of the policy. The plan should be communicated
to all relevant stakeholders to ensure their buy-in and commitment to the policy.

6. Monitoring and Evaluation: The final step in framing business policies is to monitor and
evaluate the policy's implementation and effectiveness. This involves establishing
performance metrics and monitoring the policy's impact on the organization's objectives.

5. Elaborate on the various types of strategic alliances.

Answer - The Strategic alliances are formed between two or more organizations to achieve specific
business objectives that they cannot achieve on their own. Strategic alliances are mutually beneficial
relationships that enable organizations to leverage their resources, capabilities, and expertise to
create value and competitive advantage. There are several types of strategic alliances, each with its
own advantages and disadvantages. In this answer, we will describe some of the most common
types of strategic alliances.

1. Joint Ventures: Joint ventures are formed when two or more organizations collaborate to
create a new entity. Joint ventures enable organizations to share resources, risks, and
rewards. Each organization contributes resources and expertise to the joint venture, and
they share ownership and control of the new entity. Joint ventures are particularly useful
when organizations want to enter new markets, develop new products or services, or share
the costs of research and development.
Name – Utkarsh Chauhan Roll No. – 2114103458

2. Licensing Agreements: Licensing agreements are formed when one organization allows
another organization to use its intellectual property, such as patents, trademarks,
copyrights, or trade secrets. Licensing agreements enable organizations to generate revenue
from their intellectual property without having to develop or market products themselves.
Licensing agreements are particularly useful when organizations have valuable intellectual
property but lack the resources or expertise to commercialize it.

3. Distribution Agreements: Distribution agreements are formed when one organization agrees
to distribute another organization's products or services. Distribution agreements enable
organizations to leverage the distribution network and expertise of another organization to
reach new markets or customers. Distribution agreements are particularly useful when
organizations have products or services but lack the distribution channels to reach
customers effectively.

4. Supply Chain Partnerships: Supply chain partnerships are formed between organizations in
the same or different industries to improve the efficiency and effectiveness of their supply
chains. Supply chain partnerships enable organizations to share information, resources, and
expertise to reduce costs, improve quality, and increase responsiveness. Supply chain
partnerships are particularly useful when organizations operate in complex or global supply
chains.

5. Strategic Alliances for Research and Development: Strategic alliances for research and
development are formed between organizations to collaborate on the development of new
products or technologies. Strategic alliances for research and development enable
organizations to share the costs and risks of research and development and to leverage their
expertise and resources to accelerate innovation. Strategic alliances for research and
development are particularly useful when organizations face technological or market
uncertainty.

In conclusion, strategic alliances are an essential part of modern business strategy. There are several
types of strategic alliances, each with its own advantages and disadvantages. Joint ventures,
licensing agreements, distribution agreements, supply chain partnerships, and strategic alliances for
research and development are some of the most common types of strategic alliances.

6. Write notes on the following:

1. Business Ethics
2. Corporate Social Responsibility (CSR)

Answer -

1. Business Ethics – Business ethics refers to the principles and values that guide the behavior of individuals
and organizations in the business world. It involves making ethical decisions and conducting business in a
way that is fair, honest, and responsible. Ethical behavior in business is not only morally right, but it also
leads to long-term success and profitability.

Business ethics includes a range of issues, such as conflicts of interest, corporate social responsibility, fair
labor practices, environmental sustainability, and anti-corruption measures. Ethical behavior requires
transparency, accountability, and integrity in all aspects of business operations, including financial
reporting, marketing and advertising, employee relations, and customer service.
Name – Utkarsh Chauhan Roll No. – 2114103458

Organizations that prioritize business ethics create a positive reputation and build trust with their
stakeholders, including customers, employees, investors, and the community. They also minimize the risk
of legal and financial penalties, reputational damage, and loss of business opportunities.

In conclusion, business ethics is a critical component of successful and sustainable business operations. It
involves making ethical decisions, conducting business with integrity, and prioritizing the interests of
stakeholders. Organizations that prioritize business ethics create a positive reputation, build trust with
their stakeholders, and minimize the risk of legal and financial penalties.

2. Corporate Social Responsibility (CSR) – Corporate Social Responsibility (CSR) refers to the responsibility of
businesses to have a positive impact on society and the environment in which they operate. It is a
voluntary initiative that goes beyond legal compliance and seeks to address the social and environmental
impacts of business operations.

CSR includes a range of initiatives, such as philanthropy, employee volunteerism, environmental

sustainability, and ethical business practices. It is often integrated into business strategy and decision-
making processes to ensure that organizations prioritize social and environmental considerations in their
operations.

Organizations that prioritize CSR create a positive reputation and build trust with their stakeholders,
including customers, employees, investors, and the community. CSR initiatives can also help organizations
improve their bottom line by reducing costs, increasing employee engagement and productivity, and
attracting and retaining customers.

In conclusion, CSR is an essential component of responsible and sustainable business operations. It

involves taking responsibility for the social and environmental impacts of business operations and
prioritizing the interests of stakeholders. Organizations that prioritize CSR create a positive reputation,
build trust with their stakeholders, and can also benefit from improved financial performance.