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DECEMBER 2018 EXAMINATION

GM 14 / eGM 14

STRATEGIC MANAGEMENT & ETHICS

Time: Three Hours Maximum Marks: 100

Note:

1. The paper is divided into three sections: SECTION-A, SECTION-B and SECTION-C.
2. There are seven questions in SECTION-A, attempt ANY FOUR.
3. SECTION-B has five questions, attempt ANY THREE.
4. All the questions of SECTION-C (Case Study) are compulsory.

SECTION-A (10 Marks each)

1. Briefly describe Features of ‘Effective Vision Statement’.

2. “Strategic Audit is an important control tool for management”. Discuss.

3. Do you agree with the views of Archie Carol and Milton Friedman on ‘Corporate Social
Responsibility’?

4. Explain ‘Value Chain Approach’ for diagnosing a Firm’s key ‘strengths’ and ‘weaknesses’.

5. Write short notes on ANY TWO:

(a) Matrix Structure
(b) Strategic Business Units
(c) Organization Charts

6. What are the critical success factors that enable ‘small firms’ to compete with their ‘larger
counterparts in the organized sector?

7. Bring out the significance of ‘strategic leadership’ with help of examples.

SECTION-B (15 Marks each)

8. Compare the Boston Consulting Group Matrix (BCG Matrix) with GE model and relate the two to
the ‘experience curve’

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9. Write notes on the following:
(i) Knowledge Management
(ii) Cost Leadership Strategy
(iii) Focus strategies (3x5)

10. What is ‘Corporate Governance’? Describe various governance mechanism employed in

corporations to minimize ‘corporate scandals’?

11. What is ‘strategic change’? How do you relate cultural web to the change process? What factors
are responsible for the changes?

12. (a) Why a corporate should choose ‘expansion’ instead of ‘diversification?

(b) Describe main elements of ‘strategic management Process’. (7½+7½)

SECTION-C (15 Marks)

Case Study (Compulsory)

Chinese handset maker Xiaomi is in active discussions with two more component partners to set up
factories to support its growing operations in India, specially its smart phones business where it has
emerged as a market leader. Local sourcing of components will help the handset maker reduce prices of
its products in India.
Xiaomi has been taking steps to bring its entire component ecosystem partners in India. It had earlier
this year brought over 50 of its supply chain partners from China and Taiwan to the country to evaluate
opportunities for setting up local factories. These component suppliers visited Andhra Pradesh and Uttar
Pradesh to explore investment opportunities. Xiaomi had then said that these players could potentially
invest $2.5 billion (Rs. 15000 Crores) together in India over the next few years and could create 50,000
jobs.
One of Xiaomi major components supplier Holitech Group, which was among these 50 component
suppliers is already setting up a 75 acre facility in Tirupati, Andhra Pradesh with an investment of $ 200
million, in the next three years, to locally produce camera module, touch screen panel TFT flexible
printed circuit and fingerprint module exclusively for Xiaomi. Xiaomi already has six manufacturing
facilities for smart phones and one unit for power banks.

13. Case Questions:

i. How do governments facilitate International Trade?

ii. What are the different modes of entry that firms chose to enter international markets?

iii. Does internationalization of trade provide an opportunity to improve competitiveness of

local businesses? Discuss. (3x5)

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