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ASSIGNMENT
SESSION AUG/SEP 2022
PROGRAM MASTER OF BUSINESS ADMINISTRATION (MBA)
SEMESTER IV
COURSE CODE & NAME DMBA401 – STRATEGIC MANAGEMENT AND
BUSINESS POLICY
CREDITS 4
NUMBER OF ASSIGNMENTS & 02
MARKS 30 Marks each

Instructions:
1. Kindly answer in your own words. Don’t just copy and paste from reference materials.
2. Upload only in PDF format on LMS.
3. Upload the correct file on LMS to avoid any consequences.
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately 400
- 450 words. Each question is followed by an evaluation scheme.
Q.No Assignment Set – 1 Marks Total
Questions Marks
1. Discuss PESTEL analysis. 10 10
2. Explain the strategic management process. Write short notes on 5+5 10
SBUs.
3. Describe the types of Strategic Controls. 10 10

Q.No Assignment Set – 2 Marks Total

Questions Marks
4. Explain the steps involved in framing business policies. 10 10
5. Elaborate on the various types of strategic alliances. 10 10
6. Write notes on the following: 5+5 10
1. Business Ethics
2. Corporate Social Responsibility (CSR)
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1. Discuss PESTEL analysis.

A PESTEL analysis is an acronym for a tool used to identify the macro (external) forces facing
an organisation. The letters stand for Political, Economic, Social, Technological,
Environmental and Legal. In this blog, we will look at what a PESTEL analysis is used for as
well as the advantages and disadvantages of using it in a business setting.
In marketing, before any kind of strategy or tactical plan can be implemented, it is
fundamental to conduct a full situational analysis. This analysis should be repeated every six
months to identify any changes in the macro-environment. Organisations that successfully
monitor and respond to changes in the macro-environment can differentiate from the
competition and thus have a competitive advantage over others.

Political Factors

These determine the extent to which government and government policy may impact on an
organisation or a specific industry. This would include political policy and stability as well as
trade, fiscal and taxation policies too.

Economic Factors

An economic factor has a direct impact on the economy and its performance, which in turn
directly impacts on the organisation and its profitability. Factors include interest rates,
employment or unemployment rates, raw material costs and foreign exchange rates.

Social Factors

The focus here is on the social environment and identifying emerging trends. This helps a
marketer to further understand consumer needs and wants in a social setting. Factors
include changing family demographics, education levels, cultural trends, attitude changes
and changes in lifestyles.

Technological Factors

Technological factors consider the rate of technological innovation and development that
could affect a market or industry. Factors could include changes in digital or mobile
technology, automation, research and development. There is often a tendency to focus on
developments only in digital technology, but consideration must also be given to new
methods of distribution, manufacturing and logistics.

Environmental Factors
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Environmental factors are those that are influenced of the surrounding environment and
the impact of ecological aspects. With the rise in importance of CSR (Corporate
Sustainability Responsibility) and sustainability, this element is becoming more central to
how organisations need to conduct their business. Factors include climate, recycling
procedures, carbon footprint, waste disposal and sustainability

Legal Factors

An organisation must understand what is legal and allowed within the territories they
operate in. They also must be aware of any change in legislation and the impact this may
have on business operations. Factors include employment legislation, consumer law,
healthy and safety, international as well as trade regulation and restrictions.
Political factors do cross over with legal factors; however, the key difference is that political
factors are led by government policy, whereas legal factors must be complied with.

2 Explain the strategic management process. Write short notes on SBUs.

The strategic management process means defining the organization’s strategy. It is also
defined as the process by which managers make a choice of a set of strategies for the
organization that will enable it to achieve better performance.

Strategic management is a continuous process that appraises the business and industries in
which the organization is involved; appraises it’s competitors; and fixes goals to meet all the
present and future competitor’s and then reassesses each strat

SBU

A strategic business unit in business strategic management, is a profit center which focuses on product
offering and market segment. SBUs typically have a discrete marketing plan, analysis of competition, and
marketing campaign, even though they may be part of a larger business entity

Types Of Strategic Business Units

The portfolio model developed by Boston Consulting Group offers a useful approach
to measure SBU performance based on the rate of market growth and market share.
This divides strategic business units into categories that can help a manager better
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allocate resources going forward. Here we have the different types of strategic
business units:

1. Stars

Stars are SBUs with high growth and market share and represent a profitable business. In a
fast-growing market, such businesses are dominant players. They require significant
monetary investment to sustain their rapid growth.
2. Cash Cows

A cash cow is a strategic business unit that dominates in markets with slow growth. They
help in allocating resources to other SBUs by generating more cash than they require. A star
generally becomes a cash cow when a high-growth market slows down.

3. Question Marks

Organizations face investment dilemmas with SBUs that function in high-growth markets
with low shares. It requires significant investment, usually from cash cows, to develop such
SBUs. Organizations find it difficult to decide whether to invest in these businesses or
eliminate them.

4. Dogs

Dogs are underachievers with little hope of becoming cash cows, let alone a star. They
operate in slow-growth markets with low market shares. Their performances may generate
enough cash to sustain themselves but organizations usually choose to invest resources in
SBUs that show more promise.

3 Describe the types of Strategic Controls.

Types Of Strategic Control

Strategic control is a method to manage and execute a strategic plan. It’s a unique process
in strategy management that can handle unknown and ambiguous elements or factors
related to a strategy’s implementation, premise, outcome or surveillance. The different
types of strategic control show how to control and manage a strategy’s implementation and
outcome by adapting to internally and externally changing factors.
Knowing the different types of strategic control can allow us to better analyze a business’
capability to maximize its strength and open up opportunities in an industry. Each type of
strategic control offers a different perspective and way of analysis to boost the effectiveness
of a business strategy. Let’s look at the four types of strategic control in management:
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Premise Control
A strategy is based on an assumption of how certain events will take place in the future.
Premise control allows us to examine whether or not that assumption holds true after the
strategy has been implemented and adapt to changes accordingly. Environmental factors
like inflation, interest rates, or industry factors like competition or supply affect this type of
strategic control.
Implementation Control
Out of the four types of strategic control, this one focuses on the most important part of a
strategy — its implementation. It assesses implementation activities, events, and results
step-by-step and ensures that no changes are needed. There are two types of
implementation control:
• Monitoring Strategic Thrusts To Analyze And Assess Thrusts Or Projects That Are
Meant To Drive The Larger Strategy And Gain Market Share
• Milestone Reviews To Assess A Business At Designated Points Or Different
Milestones In A Strategy

Special Alert Control

Special alert control allows assessing a business in particular circumstances such as natural
disasters or a market crash. This type of strategic control helps us analyze a strategy under
new circumstances and handle them with appropriate tools, procedures and priorities.

Strategic Surveillance Control

Strategic surveillance control identifies overlooked factors, inside and outside an
organization, that can affect its strategy. Smaller businesses mainly use it as a broader
information scan for awareness of an industry and its trends.
The implementation period is riddled with evolution and changes. Managers must know
the different types of strategic control to prevent strategies from going awry and yielding
undesired outcomes.

Types Of Strategic Control With Examples

Here are the different types of strategic control with examples:

1)Premise Control
A bicycle brand started manufacturing and selling skateboards with millennials as the target
consumers. After a quarterly sales review, premise control revealed that the fastest-growing
skateboard consumers are a generation younger.
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2)Implementation Control
Setting performance standards, measuring real performance and analyzing the root cause
behind failure to meet these standards are common forms of implementation control.
Schedules, budgets and milestones are also considered implementation control.

3)Special Alert Control

After 9/11, US commercial airlines were compelled to adopt safety protocols that were
tighter and stricter to address the intense fear of flying on commercial planes seen in
passengers.

4)Strategic Surveillance Control

Information sources such as trade magazines, newspapers, financial journals, conferences
and economic forums are all strategic surveillance controls that can identify potential
changes in an industry and offer possible responses.
No business can look away just by putting a well-thought-out strategy in place. They have to
evolve with the changes and react to them, if and when necessary. The various types of
strategic control are crucial to offering solutions related to strategies that an organization
plans to implement.
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Assignment Set – 2
4 Explain the steps involved in framing business policies.

1. Environmental Scanning:
Environmental scanning is the monitoring, evaluating and disseminating of information from

the external and internal environments to key people within the corporation. Its purpose is

to identify strategic factors those external and internal elements that will determine the

future of the corporation.

The simplest way to conduct environmental scanning is through SWOT analysis. SWOT is an

acronym used to describe those particular Strengths, Weaknesses, Opportunities, and

Threats that are strategic factors for a specific company.

The external environment consists of variables (Opportunities and Threats) that are outside

the organization and not typically within the short-run control of top management. These
variables form the context with which the corporation exists.

2. Policy Formulation:
Policy formulation is the development of long-range plans for the effective management of

environmental opportunities and threats, in light of corporate strengths and weaknesses. It

includes defining the corporate mission, specifying achievable objectives, developing

strategies, and setting policy guidelines.

3. Policy Implementation:
Policy implementation is the process by which strategies and policies are put into action

through the development of programs, budgets, and procedures. This process might involve

changes within the overall culture, structure, and /or management system of the entire

organization.
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Except when such drastic corporate-wide changes are needed, however, the

implementation of strategy is typically conducted by middle and lower level managers with

review by top management. Sometimes referred to as operational planning, strategy

implementation often involves day-to-day decisions in resource allocation.

4. Evaluation and Control:

Evaluation and control is the process in which corporate activities and performance results

are monitored so that actual performance can be compared with desired performance.

Managers at all levels use the resulting information to take corrective action and resolve

problems.

Although evaluation and control is the final major element of strategic management, it also

can pinpoint weaknesses in previously implemented strategic plans and thus stimulate the

entire process to begin again.

Performance is the end result of activities. It includes the actual outcomes of the strategic

management process. The practice of strategic management is justified in terms of its ability

to improve an organization s performance, typically measured in terms of profits and return

on investment.

For evaluation and Control to be effective, managers must obtain clear, prompt and

unbiased information from the people be low them in the corporation s hierarchy. Using

this information, managers compare what is actually happening with what was originally

planned in the formulation stage.

5 Elaborate on the various types of strategic alliances.

Types of Strategic Alliances

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There are three types of strategic alliances: Joint Venture, Equity Strategic Alliance, and
Non-equity Strategic Alliance.

#1 Joint Venture

A joint venture is established when the parent companies establish a new child company.
For example, Company A and Company B (parent companies) can form a joint venture by
creating Company C (child company).

In addition, if Company A and Company B each own 50% of the child company, it is defined
as a 50-50 Joint Venture. If Company A owns 70% and Company B owns 30%, the joint
venture is classified as a Majority-owned Venture.

#2 Equity Strategic Alliance

An equity strategic alliance is created when one company purchases a certain equity
percentage of the other company. If Company A purchases 40% of the equity in Company B,
an equity strategic alliance would be formed.

#3 Non-equity Strategic Alliance

A non-equity strategic alliance is created when two or more companies sign a contractual
relationship to pool their resources and capabilities together.

6 Write notes on the following:

3. Business Ethics
4. Corporate Social Responsibility (CSR)

Business ethics studies appropriate business policies and practices regarding potentially
controversial subjects, including corporate governance, insider trading, bribery,
discrimination, corporate social responsibility, fiduciary responsibilities, and much more.
The law often guides business ethics, but at other times business ethics provide a basic
guideline that businesses can follow to gain public approval.

• Business ethics refers to implementing appropriate business policies and

practices with regard to arguably controversial subjects.
• Some issues that come up in a discussion of ethics include corporate governance,
insider trading, bribery, discrimination, social responsibility, and fiduciary
responsibilities.
• The law usually sets the tone for business ethics, providing a basic guideline that
businesses can choose to follow to gain public approval.
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Corporate Social Responsibility (CSR)

Corporate social responsibility (CSR) is a self-regulating business model that helps a

company be socially accountable to itself, its stakeholders, and the public. By practicing
corporate social responsibility, also called corporate citizenship, companies can be
conscious of the kind of impact they are having on all aspects of society, including
economic, social, and environmental.

To engage in CSR means that, in the ordinary course of business, a company is operating in
ways that enhance society and the environment instead of contributing negatively to them.

• Corporate social responsibility is a business model by which companies make a

concerted effort to operate in ways that enhance rather than degrade society and
the environment.
• CSR helps both improve various aspects of society as well as promote a positive
brand image of companies.
• Corporate responsibility programs are also a great way to raise morale in the
workplace.
• CSRs are often broken into four categories: environmental impacts, ethical
responsibility, philanthropic endeavors, and financial responsibilities.
• Some examples of companies that strive to be leaders in CSR include Starbucks and
Ben & Jerry's.