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Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA SEMESTER 3 EXAMINATION SUMMER 2019
Subject Code: 2830001 Date:02/05/2019
Subject Name: Strategic Management
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Objective Questions 6
1. All of the following are assumptions of the resource-based model
EXCEPT
A. Each firm is a unique
collection of
resources and
capabilities.
B. The industry's structural
characteristics have little impact on a
firm's performance over time.
C. Capabilities are
highly mobile across
firms.
D. Differences in resources and
capabilities are the basis of
competitive advantage.
2.
A company that succeeds in differentiating its product offering from
those of its rivals can usually
A. Avoid having to
compete on the basis
of simply a low price
B. Charge a price premium for its
product (because buyers see its
differentiating features as worth
something extra)
C. Increase unit sales
(because of the
attraction of its
differentiating
product attributes)
D Gain buyer loyalty to its brand
(because some, maybe many, of its
customers will have a strong
preference for the company's
differentiating features)
3.
The chief disadvantage of being a first mover is the
A. high degree of risk B. high level of competition in the new
marketplace.
C. inability to earn
above-average
returns unless the
production process is
very efficient.
D. difficulty of obtaining new
customers.
4.
Capabilities that other firms cannot develop easily are classified as
A. costly to imitate. B. rare.
C. valuable. D. Non-substitutable
5.
Compared to tangible resources, intangible resources are
A. of less strategic
value to the firm.
B. not the focus of strategic analysis
C. a more potent source
of competitive
advantage
D. more likely to be reflected on the
firm's balance sheet
6.
An analysis of the economic segment of the external environment would
include all of the following EXCEPT
2
A.
interest rates
B.
international trade
C.
the strength of the U.S. dollar
D.
the move toward a contingent workforce
Q.1

Short Definition Questions
1. Vertical Integration
2. PEST Analysis
3. Strong Vs. Weak culture
4. Network structure
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Q.1

Distinguish Strategic control from Operations control
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Q.2

Differentiate between Vision, Mission and Purpose with suitable examples
07

Company A targets to achieve above-average returns. As a manager, which model will you recommend and why?
07
OR

Explain Porter's 5 force model taking an example of any industry of your choice
07
Q.3

How functional structures can be used to implement business level strategies?
07

There are four possible types of change: Adaptation, evolution, reconstruction and Revolution. Each type of changes require different leadership styles. Explain each one of them in brief.
07
OR
Q.3

What are the effects of CEO succession top management team composition on strategy?
07

What is organization culture? Explain by taking an example of organization culture of any company IBM)
07
Q.4

What is "Corporate Governance"? Briefly describe the internal and external governance mechanisms used in modern corporations?
07

"Balance Scorecard is an effective tool of organizational control" Discuss
07
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Q.4

How can corporate governance foster ethical strategic decisions and behaviors on the part of managers as agents? Explain
07

"No successful company can grow without fulfilling its corporate social responsibility" Discuss giving examples of Indian companies of your choice
07
Q.5
Case Study
Norning International states that both its past successes and future growth strategies are based on an evolving network of wholly owned businesses and joint ventures around its core competency in glass making. Through their alliances and owned divisions they compete in four global business sectors: Specialty
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Glass and Materials (including materials for HDTV and LCD displays), Consumer Housewares (including microwavable dishware), Laboratory Sciences Products and Services (test tubes, testing equipment, and drug trials testing), and Communications (fiber optics and related technologies). As per the company's annual report, "binding all four sectors together is the glue of a commitment to leading edge glass making technologies, shared resources, and dedication to total quality." Each sector is composed of divisions, subsidiaries and alliances. However, the central role played by alliances is demonstrated by the fact that the combined revenue of its 30-some alliances is more than double that of NI on its own. Most of the alliances provide NI with access to particular geographic markets, industries, or channels, although an increasing number of alliances involve both market access and technological development.
A. Why would a company like NI place such emphasis on alliances as a growth vehicle?
B. NI appears to be managing a large number of alliances. What criteria should it use to exit particular alliances?
OR
Q.5

Experts believe that firms go for diversification for three important reasons which are Value Creating Value Neutral Value Reducing. Discuss these 3 types of reasons for diversification.
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Q5

Firms choose from among five business level strategies to establish and defend their desired strategic position against competitors: cost leadership, differentiation, focused cost leadership, focused differentiation and integrated cost leadership. Discuss business level strategies with relevant examples
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