M.B.A. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2017.
Third Semester
STRATEGIC MANAGEMENT
2 90132 A
Time 3 Hours Max. Marks 70
SECTION — A
Answer all FIVE questions. 2 10 Marks)
1. Nature of Business Policy
2. Competitor Analysis
3. Goals and objectives
4. Strategic intent
5. Core competencies
SECTION — B
Answer all FIVE questions (with internal choice). 10 50 Marks)
6. Define business policy. Explain briefly the purpose of business policy.
Or
Discuss the importance of corporate mission statements.
7. Explain the strategic tools for analysis and appraisal of external
environment.
Or
Discuss the porter's value chain analysis for appraisal of firms resource
capabilities.
8. Explain the concept of differentiation strategies.
Or
Discuss the three levels of strategies.

9. Explain corporate portfolio analysis.
Or
Discuss the techniques of strategic management.
10. Explain the concept of structural implementations.
Or
Explain the need for strategy evaluation and control.
SECTION — C
(Compulsory) (10 Marks)
11. Case Study
It is not quite often that a positive product feature becomes an albatross around
the neck of the company. VIP Industries had held sway for over two decades in the
organized Indian luggage market on the basis of the durability of its molded
suitcases. Obviously, the customer perceives value-for-money in the long-lasting,
reasonably priced Alfa brand of VIP suitcases which sells 1.5 lakh pieces a month.
But this means that having bought one suitcase the customer can do with it for
several years. Market research by the company shows that an average Indian
family pulls out the suitcase merely for outstation travel a few times a year. The
VIP products are made of virgin polymer as compared to the recycled grade I and II
polymers used by the unorganized sector. They are subjected to stringent stress
tests for quality control.
VIP has a presence in a wide range of market segments within a price spectrum of
Rs.295 to Rs.6,000 per piece. It is here that the competition from the unorganized
sector hurts the company most. VIP's economically priced brand. Alfa is widely
imitated and sold at much lower prices. This enables the unorganized sector to
typically sell 20 times more than VIP can. The lower price threshold seems to be
Rs.225 which is nearly impossible for VIP to achieve given its cost structure. In the
3 90132 A
Rs.1,500 plus premium range, VIP has to contend with Samsonite which is a
formidable competitor.
There are several roadblocks that the company has to negotiate. Increase in
population, rising propensity of Indians to travel, and the insatiable thirst of
customers for state-of-the art technological products with newer designs and
innovation, all at an affordable price are the opportunities and challenges before
the company. Introduction of new brands, Mantra and Sky bags, product range
diversification to include children's bags and ladies bags, strategic alliance with
Europe's leading luggage-maker-Delsey and some of the steps taken by the
company. Yet, caught in its self spun web of past successes. VIP is today face with
an uncertain future.
Questions
How should the VIP Industries get out of the bind that it finds itself in?
Outline the policies that VIP needs to formulate and implement.
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