SVKM’s NMIMS

Anil Surendra Modi School of Commerce

Programme: BBA Batch: 2018 - 2021 Semester: V
Programme: BCom (Hons) Batch: 2018 - 2021 Semester: V
Programme: BSc Finance Batch: 2019 - 2022 Semester: III

Academic Year: 2020 – 2021

Subject: Strategic Management Marks: 50
Date: 27th Nov 2020 Time: 3 pm – 5 pm Duration: 2 Hours

Final Examination/ Re-Examination

N.B.: -
1. All Questions are Mandatory.
2. Figures to the right indicate full marks. Please write in short bullet points.

Q. 1. The boards of India’s two leading pharmaceutical companies, Sun Pharmaceuticals 10

and Ranbaxy Laboratories, announced their merger in April 2014 for an estimated
value of US$4 billion. While Sun Pharma is a major global specialty
pharmaceutical company with expertise in complex and niche therapy areas,
Ranbaxy has a strong global footprint and presence in the generics segment.

However, for the merger to go through there were several regulatory approvals
required such as clearances from the stock exchanges in India as well as from anti-
competition authorities in all applicable markets. Further, CCI (Competition
Commission of India) approved the acquisition of Ranbaxy by Sun Pharma on the
precondition that seven brands be sold off to prevent the merger from negatively
impacting competition in the domestic market. Similarly, U.S. FTC (Federal Trade
Commission) granted early termination of the waiting period for the merged entity
on the precondition that Ranbaxy’s generic minocycline tablets and capsules
segment should be sold off.

According to Sun Pharma’s annual report of 2013-14, the revenues of the merged
entity were US$ 4.2 billion for the year which made Sun Pharma the 5th largest
pharmaceutical company globally in terms of revenues, with operations in over 55
markets and 40 manufacturing facilities worldwide. The acquisition also enabled
Sun Pharma to enhance its acute care, hospitals, and OTC businesses with a
better distribution network.

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 Question: Explain Merger & Acquisitions (M&A) along with its types. Which
type of M&A is seen in the above case? Explain Retrenchment strategy. What are
the types of Retrenchment strategy? Which retrenchment strategy is seen in the
above case?

Q. 2 Raw Pressery is a health food and beverage start-up from Mumbai that aims to 10
give people their daily dose of nutrients through healthy cold-pressed juices.
Raw Pressery, started in 2013 and has become India’s No. 1 cold-pressed juice
company, offering 26 varieties of cold-press juices to customers. Unlike single
flavour juices available in tetra packs, Raw Pressery juices are a blend of
ingredients to help you trim, glow, shield, build, run and flush with each bottle of
juice specially formulated to help achieve this. All RAW Pressery’s products are
100% natural and free of artificial additives such as sugar, preservatives,
concentrates, nectars and flavours. Also, RAW Pressery’s juice blends are the
safest packaged beverages in the market, produced with cold press technology and
packaged with high pressure processing. It is because of this that the company
charges a premium. The juices are available in 250 ml bottles starting from Rs 80.
Question: Explain Porter’s Generic Business Strategies and the Business
Strategies adopted by Raw Pressery. What should the company do to adopt Cost
Leadership Business Strategy?

Q. 3 Atlantis Paradise Island (Group of Hotels and Resorts) adopted a new vision and 10
mission to provide its guests and employees an enhanced brand experience. The
new Vision states that “We meet the requirements of EarthCheck - the world’s
leading scientific benchmarking certification and advisory group for travel and
tourism-with our team continually challenging itself to evolve our operations and
increase our sustainability efforts.”
The dilemma Atlantis faced is to see whether the new vision integrates well with
the perception of customers and the employees of the organisation or not.
Question: Analyze the vision statement of Atlantis. What are the characteristics of
a good mission statement?

Q. 4 Established in 1897, the Godrej Group has its roots in India's Independence and 10
Swadeshi movement. Ardeshir Godrej, Godrej’s founder worked on a few ventures,

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 before he struck gold with the locks business. Today, Godrej enjoys the patronage of 1.1
billion consumers globally across various business verticals such as home and personal
care, real estate, appliances, agriculture, information technology, aerospace, chemicals,
furniture and many other businesses. In fact, the company’s geographical footprint
extends beyond Earth, with their engines now powering many of India's space missions.
Star: aerospace, agriculture Question Mark: IT, chemicals
Cow: Locks, home & personal care Dog: real estate, appliances
Question: Explain the illustrative and provisional BCG Matrix above and how it
could help the management at Godrej in taking strategic decisions regarding the
businesses in the firm’s portfolio.

Q. 5 Starbucks is a well-known name in the world of coffee. It has more than 22500 10
stores open globally. The brand has achieved success through years of ethical
business and by focusing on customer service and product quality. The main
reason behind the success of Starbucks is differentiation. There are three important
things that differentiate the brand from others. First important point is
quality. The brand serves only premium quality coffee. Starbucks had started its
humble story from Seattle. Starbucks has a strong brand image that rests on three
important pillars – ethics, product quality and customer service. Another important
factor well known about Starbucks Coffee is its customer service. A well-managed
supply chain allows Starbucks to source the best Cocoa from around the
world. Also, its main enabler of great quality. Another important strength of the
brand is its global presence. Starbucks has more than 24000 stores in 70 countries.
Question: Explain the VRIO framework with respect to Starbucks. Also explain
the other types of Evaluation techniques used by companies.

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