M.B.A. (Part II) (Semester III) (New CBCS) Examination, 2018
paper xvii strategic management
Day and Date Saturday, 8-12-2018 Total Marks 70
Time 10.30 a.m. to 1.00 p.m.
Instructions All questions are compulsory.
All questions carry equal marks.
1. Choose the correct answer (14×1=14)
Which level includes the strategies designed by the board of directors and
chief executive officer
B usiness Level Corporate Level
Functional Level Middle Level
SBU stands for
Similar Business Unit Structured Business Unit
Strategic Business Unit Simple Business Unit
Which of the following environment includes the effect of Monetary and
fiscal policy
Political Socio-Cultural
Technological E conomic
Which type of environment consists of values, cultures, beliefs, opinions
and lifestyle of a society
Political Socio-cultural
E conomic Technological
A creation of an entity by two or more organizations that want to attain
similar objectives is called
Joint venture Single venture
Combination venture E xpansion venture
includes closing down business and selling its assets.
Merger Acquisition Liquidation Integration
P.T.O.
Set P
Set P
SLR-CL 27 *SLRCL27*
The resource allocation approach that involves distribution of resources
from top management to lower level is called as
Top-down approach B ottom Down approach
Down Top approach Strategic approach
Strategies used in different functional areas are called
Generic Strategies B usiness Strategies
Functional Strategies O perational Strategies
The structure that involves dividing the total work according to different
product lines, customers or geographical area is called as
Network Structure Divisional Structure
Matrix Structure E ntrepreneurial Structure
10) According to the BCG matrix, which of the following emerging business
units require high investment
Stars Question Marks
Dogs Cash Cows
11) What is the purpose of a turnaround strategy
Reversing a positive trend and turning the organization into a
profitable venture
Selling of business
Reversing a negative trend and turning the organization into a
profitable venture
E xpansion of business
12) environment consists of factors related to management of
public affairs and government rules.
Political Technological
Cultural Social
13) is a discipline dealing with right or wrong, good or bad.
B usiness Management
E thics O rganization
14) CSR means
Central Social Responsibility Corporate Social Rules
Corporate Social Responsibility Corporate Single Rules
Set P
2. Write short note on 14
Gandhian Philosophy and Trusteeship Management.
SWOT Analysis.
3. Write short note on 14
Diversification Strategy.
Porter's 5 Forces Model.
4. Discuss in detail concept of Strategy, levels of strategy and Strategic Decision
making process.
OR
Define nature and need for business ethics. Explain principles of business
ethics. 14
5. Case Study. 14
MRF (Madras Rubber Factory) Limited, a tyre manufacturing organization,
started as a toy balloon maker in 1946 in South India. In 1952, it started
manufacturing tread rubber and established a rubber factory. By 1955, it
became the market leader in tread rubber business. After its incorporation
as a private limited organization in 1960, it started manufacturing tyres and
tubes in collaboration with Mansfield Tire and Rubber Company in the US. It
became the first organization to export tyres to the US.
Apollo Tyres, Goodyear and J.K. Tyres are major competitors of MRF. MRF
has adopted various expansion and diversification strategies. It technically
collaborated with various organizations, such as US based BF Goodrich Tire
company and Italy based M/s. Marangoni TRS SPA. This collaboration helped
MRF in getting technical knowledge.
MRF's design process starts from the customer's needs and inputs. Its marketing
activities are focused on listening to the customers, understanding their
buying behavior and entering the new markets. MRF's team of 300 engineers
and scientists helps in designing the product according to customer inputs.
Therefore, the products of MRF are rated high on customer satisfaction and
branding. The use of robust promotional programs, such as advertising, print
media and mailers, has helped MRF to gain fame nationally and internationally.
MRF exports its products to 75 countries worldwide. It also received the tide of
Star Exporter, which enabled the MRF to get the priority treatment from RBI
in relation to exports and imports. The mascot used by MRF is Muscleman,
which is designed to depict the tyre's strength, reliability and durability.
The R&D policy of MRF is focused on adapting the technology of tyres as per
the conditions of Indian roads. It has attained high standards in testing the
product and controlling the manufacturing process.
The financial policy of MRF is quite conservative. It prefers to raise maximum
funds from internal sources and avoids investments by financial institutions.
Thus, it is undercapitalized with a low equity base. The high competition leads
to losses which are covered by the effective utilization of assets.
The human resource policy of MRF focuses on the development of its
employees. The top management decides the professional and policy matters;
whereas the managers decide the day-to-day activities and tasks.
The key challenge for MRF was to integrate all major business activities
and overcome difficulty in managing the data. To overcome this challenge,
MRF has implemented System Application and Products Enterprise
Resource Planning and CRM solutions, which help in cost saving in
all the business processes. In addition, it increases the efficiency of business
processes. Implementation of SAP has led MRF to achieve efficient logistics,
sales operations and good customer services. It has installed information
security network framework to prevent unauthorized access to information.
Questions
Write analysis of the case. 4
Discuss the MRF policies in the following functional areas 6
Marketing
Finance
Personnel
O perations.
Do you think MRF lacks effectiveness in any functional area If, yes give
reasons and suggestions. 4