CS 2022-23 7TH Sem

~BY DIBYASHIS
7th Semester (Regular/Back) Examination: 2022-23

SUBJECT: Corporate Strategy
BRANCH(S): IMBA
Time: 3 Hour Max Marks: 100
Answer Question No.1 (Part-1) which is compulsory, any eight from Part-II
and any two from Part-III.
Part-1
Answer the following questions:
a) Explain the concept of Strategic Myopia.

Ans. Strategic myopia in the context of corporate strategy refers to
a short-sighted approach or narrow focus on immediate goals and
short-term gains, rather than taking a more comprehensive,
forward-thinking, and long-term perspective. It involves a failure to
recognize or adequately respond to potential future challenges,
opportunities, or changes in the business environment.
Key aspects of strategic myopia include:

1. **Short-Term Focus:** Organizations suffering from strategic
myopia often prioritize short-term objectives at the expense of
long-term goals. This may involve concentrating on quarterly
financial results and immediate market pressures, neglecting the
development of sustainable strategies.
2. **Lack of Innovation:** Companies with strategic myopia may

resist or overlook investing in research and development,
innovation, or adaptation to emerging technologies. This can hinder
their ability to stay competitive in the long run.
3. **Overemphasis on Core Competencies:** While core

competencies are essential, strategic myopia occurs when
organizations become overly reliant on existing strengths and fail to
diversify or adapt to changing market conditions.
4. **Inadequate Risk Management:** Focusing solely on short-

term gains may lead to neglecting potential risks and uncertainties
that could impact the business in the future. Failure to anticipate
and prepare for these risks can result in significant setbacks.
5. **Inflexibility:** A myopic strategy often involves rigid plans that

are resistant to change. Organizations may find it challenging to
adjust to unforeseen circumstances, making them vulnerable to
disruptions.
6. **Neglect of External Factors:** Companies suffering from

strategic myopia may overlook the importance of monitoring and
responding to changes in the external business environment, such
as shifts in customer preferences, technological advancements, or
regulatory changes.
b) What do you mean by distinctive competency?

Ans. Distinctive competency, also known as core competency or
distinctive competence, is a concept in corporate strategy that
refers to a unique set of capabilities and resources that sets a
company apart from its competitors and provides a competitive
advantage. These competencies are specific strengths or
capabilities that are not easily replicated by other firms in the
industry, making them a source of sustained competitive
advantage. Distinctive competencies form the foundation for a
company's ability to outperform its rivals and succeed in the
marketplace.
Key characteristics of distinctive competency include:
1. **Unique Strengths:** Distinctive competencies represent the

unique strengths, skills, and capabilities that a company possesses.
These can include technological expertise, innovative processes,
strong brand equity, efficient supply chain management, or unique
intellectual property.
2. **Difficult to Replicate:** One of the defining features of

distinctive competencies is that they are challenging for
competitors to replicate or imitate. This makes it difficult for other
firms to achieve the same level of performance or market position.
3. **Relevance to Customers:** Distinctive competencies are
typically aligned with customer needs and preferences. They
contribute to the creation of products or services that stand out in
the market and provide superior value to customers.
4. **Strategic Fit:** These competencies should align with the

overall corporate strategy and contribute significantly to the
achievement of strategic objectives. They are not just random
strengths but are strategically leveraged to create a competitive
edge.
Examples of distinctive competencies may vary across industries,

but they often include things like:
- **Innovative Product Development:** A company may have a

distinctive competency in consistently bringing innovative products
to market ahead of competitors.
- **Brand Reputation:** Strong brand equity and a positive brand

image can be a distinctive competency, influencing customer
loyalty and preference.
- **Cost Leadership:** Superior efficiency in manufacturing

processes or a unique cost advantage can serve as a distinctive
competency, allowing a company to offer competitive pricing.
- **Global Supply Chain Management:** Companies with highly

efficient and well-managed global supply chains may have a
distinctive competency that enables them to deliver products faster
and at lower costs than competitors.
c) Distinguish between hostile takeover and friendly takeover.

Ans.
d) What do you mean by horizontal Expansion? Give an example
Ans. Horizontal expansion, in the context of corporate strategy
(CS), refers to a growth strategy where a company seeks to increase
its market share or expand its presence in the same industry or
market by acquiring or establishing business operations that are at
the same stage of the production process or offer similar products
and services. In other words, it involves moving into new markets
or segments that are directly related to the company's existing
products or services.
Key characteristics of horizontal expansion include:
1. **Same Industry:** The expansion occurs within the same

industry in which the company is already operating. Rather than
diversifying into unrelated industries, the focus is on similar or
complementary products or services.
2. **Market Share Growth:** The primary goal is to capture a

larger share of the market by either acquiring competitors or
establishing new operations that compete directly with existing
players in the industry.
3. **Economies of Scale:** Horizontal expansion often aims to

achieve economies of scale, allowing the company to reduce costs
through increased production or improved efficiency in its core
operations.
4. **Product or Service Similarity:** The new business activities
undertaken through horizontal expansion are typically closely
related to the company's existing products or services. This can
involve expanding the product line, entering new geographic
markets, or targeting different customer segments within the same
industry.
**Example of Horizontal Expansion in Corporate Strategy:**
Let's consider the example of a fictional company, XYZ Electronics,

which specializes in manufacturing and selling smartphones. If XYZ
Electronics decides to horizontally expand, it might take the
following actions:
1. **Acquisition of a Competitor:** XYZ Electronics acquires

another smartphone manufacturer that operates in the same
market. This acquisition allows XYZ Electronics to eliminate a
competitor, gain access to their customer base, and potentially
benefit from synergies in terms of research and development,
supply chain, and distribution.
2. **Product Line Extension:** XYZ Electronics introduces new

products that complement its existing smartphone line, such as
smartwatches, fitness trackers, or other wearable devices. This
expansion allows the company to leverage its brand and expertise
in electronics to capture a broader share of the consumer
electronics market.
3. **Geographic Expansion:** XYZ Electronics decides to enter new
geographic markets with its smartphones, expanding its presence
to regions where it has not previously operated. This could involve
establishing partnerships, opening new stores, or developing
distribution channels in those regions.
e) What do you mean by Environmental Scanning?

Ans. Environmental scanning in the context of corporate strategy
(CS) refers to the systematic process of gathering, analyzing, and
interpreting information about the external environment in which a
company operates. This external environment includes factors and
forces that can significantly impact the organization's performance,
success, and strategic decisions. Environmental scanning is a crucial
element of strategic management as it helps companies understand
the opportunities and threats present in the broader business
environment.
Key components of environmental scanning include:
1. **Data Collection:** Gathering relevant information from

various sources, such as industry reports, market analyses,
government publications, news sources, and academic research.
The data collected encompasses economic, technological, social,
political, and environmental factors.
2. **Analysis:** Evaluating and interpreting the collected

information to identify trends, patterns, and potential future
developments. This analysis involves assessing the implications of
external factors on the company's operations, markets, and overall
strategic position.
3. **Monitoring Changes:** Regularly tracking changes in the

external environment to stay informed about emerging
opportunities and threats. This involves keeping an eye on shifts in
customer preferences, advancements in technology, regulatory
changes, competitive actions, and other relevant factors.
4. **Competitor Analysis:** Understanding the strategies,

strengths, weaknesses, and market positions of competitors. This
analysis helps a company anticipate competitive moves and
respond effectively to changes in the competitive landscape.
5. **Scenario Planning:** Developing scenarios or alternative

future scenarios based on the identified trends and uncertainties.
This allows the company to consider multiple possible futures and
make more informed strategic decisions.
6. **Strategic Decision-Making:** Using the insights gained from

environmental scanning to inform and guide strategic decision-
making. This could involve adjusting current strategies, entering
new markets, developing new products, or preparing for potential
challenges.
7. **Adaptation:** Environmental scanning is not a one-time

activity but an ongoing process. Companies need to continuously
scan the environment to adapt their strategies in response to
evolving external conditions.
**Importance of Environmental Scanning:**
1. **Risk Management:** Identifying potential risks and

uncertainties in the external environment allows a company to
proactively manage and mitigate these risks.
2. **Opportunity Identification:** Environmental scanning helps in

recognizing new opportunities, market trends, and areas for
innovation that can positively impact the organization's growth.
3. **Strategic Alignment:** Ensuring that the company's strategies

are aligned with the external environment and responsive to
changes in the industry and market dynamics.
4. **Competitive Advantage:** A thorough understanding of the

external environment can lead to the development of strategies
that provide a competitive advantage, helping the company stay
ahead in the market.
5. **Long-Term Planning:** Environmental scanning is essential for

long-term planning, helping organizations anticipate and prepare
for future challenges and opportunities.
f) Explain the concept of Strategic business unit.

Ans. A Strategic Business Unit (SBU) is a semi-autonomous unit or
division within a larger company that operates as an independent
entity with its own vision, mission, objectives, and strategies. The
concept of Strategic Business Units is a key element in corporate
strategy (CS) and is commonly used to organize and manage diverse
business activities within a corporation. Each SBU is typically
responsible for its own set of products, services, markets, and
operations.
Key features of Strategic Business Units include:
1. **Independence:** SBUs operate with a significant degree of

autonomy within the larger corporate structure. They have their
own management teams, resources, and decision-making
authority.
2. **Strategic Autonomy:** Each SBU is responsible for developing

and implementing its own strategic plans and initiatives. This
allows for flexibility in responding to market dynamics,
competition, and other factors affecting its specific business
environment.
3. **Profit and Loss Responsibility:** SBUs often have their own

profit and loss (P&L) statements. This means that they are
accountable for their financial performance, including revenues,
costs, and profitability.
4. **Product/Market Focus:** SBUs are typically organized based

on a specific product line or market segment. This enables a more
focused approach to meeting the needs of particular customer
groups or addressing specific market niches.
5. **Resource Allocation:** The corporate headquarters allocates
resources such as capital, personnel, and technology to each SBU
based on its strategic priorities and potential for growth.
6. **Performance Evaluation:** Performance metrics for SBUs are

often distinct from those of the overall corporation. Evaluation
criteria may include market share, return on investment (ROI), and
other key performance indicators relevant to the SBU's specific
goals.
7. **Portfolio Management:** Large corporations often have

multiple SBUs, each contributing to the overall corporate portfolio.
Corporate leaders may use portfolio analysis to evaluate the
performance and potential of each SBU and make decisions
regarding resource allocation and divestiture.
**Example of Strategic Business Units:**
Consider a multinational conglomerate operating in various

industries, such as manufacturing, healthcare, and technology. This
conglomerate may have distinct SBUs for each of its major business
segments:
1. **Healthcare SBU:** This unit focuses on developing,

manufacturing, and marketing healthcare products and services. It
has its own research and development teams, manufacturing
facilities, and sales and marketing efforts.
2. **Technology SBU:** This unit is responsible for the
development and distribution of technology-related products. It
may include divisions for software development, hardware
manufacturing, and IT services.
3. **Manufacturing SBU:** This unit oversees the production and

distribution of various manufactured goods. It manages a portfolio
of products and works to optimize manufacturing processes and
supply chain operations.
g) Define vision and mission with example.

Ans. In the context of corporate strategy (CS), vision and mission
are foundational elements that guide the purpose, direction, and
values of an organization.
1. **Vision:**
- **Definition:** A vision statement is a concise and aspirational
description of what an organization aims to achieve in the future. It
paints a picture of the desired long-term outcome and provides a
sense of direction and inspiration for employees, stakeholders, and
other constituents.
- **Example in CS:**
- *Google (Alphabet Inc.):*
- *Vision Statement:* "To provide access to the world's
information in one click."
- *Explanation:* Google's vision reflects its commitment to
organizing the vast amount of information available on the internet
and making it universally accessible and useful. This vision has been
a driving force behind Google's products and services, influencing
its strategies in search, advertising, and various other technology
initiatives.
2. **Mission:**
- **Definition:** A mission statement outlines the fundamental
purpose of an organization, including its core activities, values, and
the value it provides to its stakeholders. It serves as a roadmap for
the organization's daily operations and decision-making.
- **Example in CS:**
- *Tesla, Inc.:*
- *Mission Statement:* "To accelerate the world’s transition to
sustainable energy."
- *Explanation:* Tesla's mission emphasizes its commitment to
advancing sustainable energy solutions. This mission has guided the
company's focus on electric vehicles, renewable energy products,
and energy storage systems. It reflects the core purpose of Tesla's
existence beyond merely producing cars—it aims to drive a broader
positive impact on the environment and global energy use.
h) What is strategic piggybacking?

Ans. Strategic piggybacking, in the context of corporate strategy,
refers to a strategy where a company leverages the success or
resources of another entity to achieve its own strategic objectives.
This strategy involves riding on the coattails of a more successful or
established partner to gain access to markets, resources,
capabilities, or opportunities that might otherwise be difficult to
attain independently. It's a form of collaboration or symbiotic
relationship that allows a less established player to benefit from
the strength or positioning of a more dominant partner.
Key characteristics and considerations of strategic piggybacking

include:
1. **Leveraging Partner's Strengths:**

- Companies engaging in strategic piggybacking identify a partner
with strengths, resources, or market presence that can be
advantageous for their own objectives.
2. **Access to Markets:**
- Strategic piggybacking often involves gaining access to
established markets through a partner's distribution channels,
customer base, or existing networks.
3. **Resource Sharing:**
- It may involve sharing resources such as technology, expertise,
or infrastructure, allowing the piggybacking entity to benefit from
the partner's capabilities.
4. **Risk Mitigation:**
- Piggybacking can be a risk mitigation strategy, especially for
smaller or newer companies. By aligning with a more established
partner, the risks associated with market entry or business
expansion may be reduced.
5. **Cost Efficiency:**
- The strategy can be cost-efficient, as the piggybacking entity
may avoid the high costs and challenges of establishing a presence
in a new market or developing certain capabilities from scratch.
6. **Mutual Benefits:**
- For strategic piggybacking to be successful, it should ideally be a
mutually beneficial arrangement where both parties gain value.
The dominant partner may benefit from increased market reach,
new customer segments, or complementary capabilities.
7. **Strategic Alliances and Partnerships:**

- Piggybacking is often realized through strategic alliances,
partnerships, or joint ventures where both parties collaborate for
specific strategic goals.
8. **Branding and Reputation Transfer:**

- In some cases, piggybacking involves transferring or leveraging
the brand and reputation of the more established partner to
enhance the credibility of the less established entity.
9. **Flexibility and Adaptability:**
- The piggybacking entity needs to be adaptable and flexible, as
the success of the strategy may depend on changes in market
conditions, the partner's strategy, or other external factors.
10. **Strategic Planning and Alignment:**

- Effective strategic piggybacking requires careful planning and
alignment of goals between the partnering entities. Clear
communication and understanding of expectations are essential.
11. **Legal and Contractual Agreements:**

- Given the collaborative nature of strategic piggybacking, legal
and contractual agreements are crucial to define the terms,
responsibilities, and potential risks for both parties.
i) What is brick and Click strategy?

Ans. The "brick and click" strategy, also known as "clicks and
mortar," refers to a business model that combines both physical
(brick-and-mortar) and online (click) operations. This strategy
involves a company having a presence in both traditional physical
retail spaces (brick-and-mortar stores) and in the digital realm
through an online platform.
Key characteristics of the brick and click strategy include:
1. **Physical Presence (Brick):** The company maintains a network

of physical stores or locations where customers can visit to make
purchases, receive services, or experience the brand in person.
These physical locations are an essential part of the business
model.
2. **Online Presence (Click):** In addition to physical stores, the

company establishes a strong online presence through a website,
mobile app, or other digital platforms. Customers can browse
products, place orders, and interact with the brand online.
3. **Integration of Channels:** The key feature of the brick and

click strategy is the seamless integration of the offline and online
channels. This integration allows customers to have a consistent
experience across both platforms and provides them with various
options for shopping and interacting with the brand.
4. **Omnichannel Experience:** Companies employing a brick and

click strategy often aim to create an omnichannel experience,
where customers can seamlessly transition between online and
offline channels. For example, customers may order products
online and choose to pick them up in-store or return online
purchases to a physical location.
5. **Inventory and Data Integration:** To enhance efficiency, brick

and click businesses often integrate their inventory systems and
customer data across both offline and online channels. This
integration helps in managing inventory levels, providing accurate
product information, and offering personalized experiences to
customers.
6. **Click-to-Brick Initiatives:** Some companies may use "click-to-
brick" initiatives, where online-only retailers decide to establish
physical stores or pop-up shops to enhance their brand visibility
and reach a broader audience.
**Examples of Brick and Click Strategy:**
1. **Amazon:**
- **Brick:** Amazon, originally an online-only bookstore, has
expanded its business model to include physical retail stores. For
example, Amazon Books and Amazon Go stores provide a physical
presence where customers can browse and purchase products.
- **Click:** Amazon's primary business is conducted online
through its e-commerce platform, where customers can buy a wide
range of products.
2. **Walmart:**
- **Brick:** Walmart operates a vast network of physical stores
globally, offering a wide range of products from groceries to
electronics.
- **Click:** Walmart has a strong online presence, allowing
customers to order products for home delivery or store pickup
through its website and mobile app.
j) What do you mean by strategic Intent?

Ans. Strategic intent is a concept in corporate strategy that refers
to a clear and compelling vision of an organization's long-term
direction and aspirations. It goes beyond setting specific,
measurable goals and objectives and focuses on articulating a
broader and more inspiring purpose for the organization. Strategic
intent is about establishing a bold and ambitious trajectory that
motivates and energizes the entire organization.
Key characteristics of strategic intent include:
1. **Aspirational Goals:** Strategic intent involves setting goals

that are ambitious and challenging, often reaching beyond what
might be achievable through incremental improvements. These
goals are designed to inspire and mobilize the organization to strive
for exceptional performance.
2. **Long-Term Horizon:** Unlike short-term objectives, strategic

intent looks further into the future, typically spanning several years
or even decades. It provides a sense of direction for the
organization over the long term, guiding decision-making and
resource allocation.
3. **Visionary Leadership:** Developing strategic intent requires

visionary leadership that can communicate a compelling and
captivating vision for the organization's future. Leaders play a
crucial role in inspiring and aligning the efforts of employees
toward the strategic intent.
4. **Adaptability:** While strategic intent sets a long-term

direction, it should also allow for adaptability in the face of
changing circumstances. Organizations need to remain flexible and
responsive to evolving market conditions, technological
advancements, and other external factors.
5. **Mobilizing the Organization:** A well-crafted strategic intent

is meant to mobilize and energize the entire organization. It instills
a sense of purpose and shared commitment among employees,
fostering a collective effort to achieve the stated aspirations.
6. **Differentiation:** Strategic intent often involves pursuing a

unique and differentiated position in the market. It may include
innovative approaches to products, services, or business models
that set the organization apart from competitors.
**Example of Strategic Intent:**
Consider the example of Microsoft in the 1990s:
- **Strategic Intent:** "A computer on every desk and in every

home, running Microsoft software."
- **Explanation:** This was Microsoft's strategic intent under the
leadership of Bill Gates. The vision was not merely about
dominating the software market but about fundamentally
transforming the way people use computers. It set an ambitious
goal that went beyond current market conditions and inspired
Microsoft to develop and improve software products to achieve
widespread adoption.
Part-II
Q2 Only Focused-Short Answer Type Questions- (Answer Any Eight out of
(Twelve) (6x8)
a) Describe external components of business environment.

Ans. In corporate strategy, the external components of the
business environment refer to the factors and elements outside
the organization that can influence its operations, decisions, and
overall strategic direction. Understanding these external
components is crucial for organizations to adapt and formulate
effective strategies in response to changes in the broader
business environment. Here are key external components in
corporate strategy:
1. **Economic Environment:**
- **Definition:** The overall economic conditions, including
factors such as inflation rates, interest rates, exchange rates, and
economic growth.
- **Impact on Strategy:** Economic conditions influence
consumer spending, demand for products or services, and
financial stability, affecting strategic decisions related to pricing,
investment, and expansion.
2. **Technological Environment:**
- **Definition:** The state of technology and technological
advancements in the industry and society at large.
- **Impact on Strategy:** Rapid technological changes can
create opportunities for innovation, efficiency improvements,
and new business models. Strategies may need to focus on
staying current with technology trends or leveraging emerging
technologies.
3. **Social and Cultural Environment:**

- **Definition:** Social and cultural factors, including
demographics, values, lifestyles, and societal trends.
- **Impact on Strategy:** Cultural shifts and changing societal
attitudes can influence consumer preferences, product design,
and marketing strategies. Corporate strategies may need to align
with evolving social values to remain relevant.
4. **Political and Legal Environment:**

- **Definition:** Government policies, regulations, political
stability, and legal frameworks that impact business operations.
- **Impact on Strategy:** Compliance with laws, regulatory
changes, and political stability are critical considerations.
Strategies need to be aligned with legal requirements and adapt
to changes in the political and regulatory landscape.
5. **Environmental and Sustainability Factors:**

- **Definition:** Concerns related to environmental
sustainability, climate change, and corporate social
responsibility.
- **Impact on Strategy:** Growing awareness of
environmental issues influences consumer behavior and
regulatory requirements. Strategies may include sustainability
initiatives, green practices, and responsible business practices.
6. **Competitive Environment:**
- **Definition:** The nature and intensity of competition in the
industry, including the actions of existing competitors and the
threat of new entrants.
- **Impact on Strategy:** Understanding competitive forces
helps shape strategies related to pricing, differentiation, market
positioning, and responses to competitive threats.
7. **Global Environment:**
- **Definition:** The impact of global factors such as
international trade, geopolitical events, and global economic
conditions.
- **Impact on Strategy:** Globalization may require strategies
related to market expansion, international partnerships, and
adapting to diverse cultural and regulatory environments.
8. **Market Trends and Consumer Behavior:**

- **Definition:** Trends in consumer preferences, purchasing
behavior, and market dynamics.
- **Impact on Strategy:** Strategies must be responsive to
changing market trends, consumer expectations, and
preferences. Businesses may need to adapt their products,
services, and marketing approaches accordingly.
9. **Supplier and Partner Relationships:**

- **Definition:** The relationships with suppliers, partners,
and other stakeholders in the supply chain.
- **Impact on Strategy:** Dependence on key suppliers,
collaborations with partners, and supply chain disruptions can
influence strategies related to sourcing, partnerships, and risk
management.
10. **Demographic Factors:**

- **Definition:** Characteristics of the population, such as age,
gender, income levels, and population growth.
- **Impact on Strategy:** Demographic trends influence target
markets, product design, and distribution strategies.
Understanding demographic shifts is crucial for developing
effective marketing and sales strategies.
11. **Crisis and Risk Factors:**

- **Definition:** Potential risks and crises, such as natural
disasters, cybersecurity threats, or health emergencies.
- **Impact on Strategy:** Strategies must include risk
mitigation and crisis management plans to address unforeseen
events that can disrupt operations or reputation.
b) What is merger and acquisition strategy? Discuss its merits

and demerits.
Ans. **Merger and Acquisition (M&A) Strategy:**
Merger and acquisition (M&A) strategy in corporate strategy

involves the combination of two or more companies through
various means, such as mergers, acquisitions, consolidations, or
takeovers. This strategy is pursued for various reasons, including
achieving synergies, expanding market presence, gaining
competitive advantages, and enhancing overall organizational
performance.
**Merits of Merger and Acquisition Strategy:**
1. **Synergy and Efficiency:**

- *Merits:* M&A activities can result in synergies, where the
combined entity achieves greater efficiency and effectiveness than
the individual companies. This can lead to cost savings, improved
resource utilization, and enhanced overall performance.
2. **Economies of Scale:**
- *Merits:* Mergers and acquisitions can provide economies of
scale, especially in industries where larger operations lead to lower
average costs. This can be advantageous in terms of production,
distribution, and other operational activities.
3. **Market Presence and Competitive Advantage:**

- *Merits:* M&A activities can strengthen the market position of
the combined entity, providing a competitive advantage over
smaller competitors. This advantage may manifest in increased
market share, broader product offerings, or enhanced bargaining
power.
4. **Access to New Markets and Customers:**

- *Merits:* M&A can facilitate access to new markets and
customer segments. Acquiring or merging with a company in a
different geographic location or with a different customer base can
expand the reach of the organization.
5. **Diversification of Products or Services:**

- *Merits:* M&A activities enable diversification, allowing
organizations to expand their portfolio of products or services. This
diversification can reduce dependence on a single market or
product line, mitigating risks associated with market fluctuations.
6. **Enhanced Capabilities and Innovation:**

- *Merits:* Combining the capabilities of two organizations can
lead to enhanced innovation and improved product offerings. M&A
activities often bring together complementary technologies,
expertise, and research and development capabilities.
**Demerits of Merger and Acquisition Strategy:**
1. **Integration Challenges:**
- *Demerits:* Integrating different organizational cultures,
systems, and processes can be complex and challenging.
Mismanagement during the integration phase can lead to
disruptions, decreased employee morale, and potential
inefficiencies.
2. **Resistance and Employee Concerns:**

- *Demerits:* Employees in both merging entities may resist
change, leading to concerns about job security, changes in work
environment, and uncertainty about the future. This can impact
productivity and create a challenging work atmosphere.
3. **Regulatory Hurdles:**
- *Demerits:* M&A activities may face regulatory hurdles,
requiring approval from government authorities. Regulatory
challenges can lead to delays in the process and, in some cases,
rejection of the merger or acquisition.
4. **Financial Risks:**
- *Demerits:* The financial risks associated with M&A include
overvaluation of assets, underestimation of integration costs, and
potential financial strain on the merged entity. Poor financial
planning can lead to adverse consequences.
5. **Loss of Focus:**
- *Demerits:* Merged entities may experience a loss of focus on
core business activities during the integration phase. This
distraction can impact day-to-day operations and hinder overall
business performance.
6. **Cultural Misalignment:**
- *Demerits:* Differences in organizational cultures between
merging entities can lead to conflicts and challenges in building a
cohesive work environment. Cultural misalignment can negatively
affect collaboration and teamwork.
7. **Customer Concerns:**
- *Demerits:* Customers may express concerns or dissatisfaction
during the transition phase, leading to potential loss of clientele.
Ensuring a seamless customer experience is critical to mitigate such
risks.
8. **Execution Complexity:**
- *Demerits:* Successfully executing an M&A strategy requires
effective planning, coordination, and execution. In the absence of
careful management, the process can become overly complex and
challenging to implement.
c) Describe the factors affecting selection or choice of strategy.

Ans. The selection or choice of a strategy in corporate strategy is a
complex decision-making process influenced by a variety of internal
and external factors. These factors shape the direction an
organization takes to achieve its goals and objectives. Here are key
factors affecting the selection or choice of strategy in corporate
strategy:
1. **Organizational Goals and Objectives:**

- The overarching goals and objectives of the organization are
fundamental in determining the appropriate strategy. The strategy
chosen should align with the mission, vision, and long-term
aspirations of the company.
2. **Internal Resources and Capabilities:**

- The organization's internal strengths and weaknesses, including
its financial resources, human capital, technology infrastructure,
and operational capabilities, influence the selection of a strategy.
The strategy chosen should leverage and enhance existing
strengths while addressing or mitigating weaknesses.
3. **External Environment:**
- Factors in the external environment, such as market conditions,
competition, regulatory landscape, and economic trends,
significantly impact strategy selection. Organizations need to adapt
their strategies to navigate and capitalize on external opportunities
and mitigate threats.
4. **Industry Dynamics:**
- The characteristics and dynamics of the industry in which the
organization operates play a crucial role. Different industries may
require different strategic approaches based on factors such as
competition intensity, technological advancements, and customer
preferences.
5. **Market Positioning:**
- The organization's current market position, including its market
share, brand reputation, and customer perception, influences the
choice of strategy. Strategies may focus on maintaining a leading
position, capturing new markets, or repositioning the organization
in response to changing market dynamics.
6. **Competitive Analysis:**
- Understanding the competitive landscape is essential. The
strengths and weaknesses of competitors, as well as potential
threats and opportunities arising from competition, inform the
choice of strategy. Organizations may opt for differentiation, cost
leadership, or niche strategies based on the competitive
environment.
7. **Innovation and Technology:**

- The role of innovation and technology in the industry is critical.
Organizations may choose strategies that prioritize research and
development, technological advancements, and innovation to stay
ahead of the competition or create new market opportunities.
8. **Customer Needs and Preferences:**

- Meeting customer needs and preferences is a central
consideration in strategy selection. The chosen strategy should
align with the desires of the target market, whether it involves
delivering innovative products, superior customer service, or
competitive pricing.
9. **Legal and Regulatory Considerations:**

- Compliance with legal and regulatory requirements is crucial.
Organizations must choose strategies that align with laws and
regulations applicable to their industry to avoid legal issues and
maintain a positive reputation.
10. **Risk Tolerance:**

- The organization's risk tolerance and appetite for uncertainty
influence the choice of strategy. Some strategies involve higher
levels of risk, while others prioritize stability. The chosen strategy
should align with the organization's risk profile.
11. **Financial Considerations:**

- The financial health of the organization and its ability to fund
and sustain the chosen strategy are critical factors. Financial
considerations include the availability of capital, budget
constraints, and the return on investment expected from the
chosen strategy.
12. **Leadership and Organizational Culture:**

- The leadership style and organizational culture impact strategy
selection. A culture that encourages innovation, risk-taking, and
adaptability may favor more aggressive strategies, while a
conservative culture may lean towards stability and incremental
growth.
13. **Global Considerations:**

- For organizations operating globally, geopolitical factors,
cultural differences, and international market conditions may
influence the choice of strategy. Strategies may need to be tailored
to accommodate diverse global markets.
d) What is corporate strategy? Differentiate between offensive

and defensive strategy.
Ans. Corporate Strategy:
Corporate strategy refers to the overall plan and direction that an
organization takes to achieve its long-term goals and objectives. It
involves making decisions on resource allocation, business portfolio
management, and determining the scope of the organization's
activities. Corporate strategy is typically developed at the highest
levels of management and provides a framework for guiding the
company as a whole.
e) Why strategic evaluation is essential? Discuss.
Ans. Strategic evaluation is a critical component of the corporate
strategy process, playing a crucial role in assessing the effectiveness
and impact of strategic decisions. It involves systematically
reviewing and analyzing the outcomes of implemented strategies
to determine their success, identify areas for improvement, and
inform future decision-making. Here are several reasons why
strategic evaluation is essential in corporate strategy:
1. **Performance Measurement:**
- **Importance:** Strategic evaluation serves as a tool for
measuring the performance of implemented strategies against
predefined objectives and key performance indicators (KPIs). It
provides a quantitative and qualitative assessment of how well the
organization is progressing toward its strategic goals.
2. **Learning from Experience:**

- **Importance:** Evaluation allows organizations to learn from
both successes and failures. Analyzing past strategic initiatives
provides valuable insights into what worked well, what didn't, and
the factors contributing to success or setbacks. This learning
contributes to organizational knowledge and experience.
3. **Adaptability to Change:**
- **Importance:** In dynamic business environments, conditions
can change rapidly. Strategic evaluation helps organizations stay
adaptable by identifying whether the current strategies remain
relevant and effective in light of changes in the market, technology,
or regulatory landscape.
4. **Decision-Making Support:**
- **Importance:** The insights gained from strategic evaluation
provide decision-makers with valuable information. This
information supports informed decision-making by helping leaders
understand the impact of past decisions, assess the organization's
current position, and make adjustments based on real-world
outcomes.
5. **Resource Optimization:**
- **Importance:** Evaluation helps in optimizing resource
allocation. By understanding which strategies and activities are
delivering the most value, organizations can allocate resources
more effectively. This is particularly important in corporate strategy
where efficient resource use is critical.
6. **Alignment with Objectives:**

- **Importance:** Regular evaluation ensures that the
implemented strategies align with the overall objectives of the
organization. This alignment is crucial for maintaining a clear and
unified direction and preventing divergence from the organization's
mission and vision.
7. **Risk Management:**
- **Importance:** Evaluation helps identify potential risks and
challenges associated with current strategies. This proactive
approach allows organizations to develop risk mitigation plans and
strategies to address emerging threats.
8. **Continuous Improvement:**
- **Importance:** Strategic evaluation fosters a culture of
continuous improvement. By identifying areas for enhancement
and refinement, organizations can iteratively improve their
strategic approach, promoting ongoing success and
competitiveness.
9. **Stakeholder Communication:**
- **Importance:** Transparent communication with stakeholders,
including investors, employees, and customers, is vital for
maintaining trust. Strategic evaluation provides a basis for clear
communication about the organization's performance,
achievements, and future direction.
10. **Competitive Advantage:**

- **Importance:** Regular evaluation helps organizations assess
their competitive position. Understanding how well strategies are
performing compared to competitors allows for adjustments to
maintain or enhance the organization's competitive advantage.
11. **Strategic Flexibility:**

- **Importance:** The dynamic nature of business environments,
especially in corporate strategy, requires organizations to be
flexible. Strategic evaluation contributes to strategic flexibility by
allowing for timely adjustments and pivots in response to changing
circumstances.
f) What is amalgation strategy? Throw light on its merits and

demerits.
Ans. In a corporate strategy context, amalgamation refers to the
combination or merger of two or more entities into a single entity.
Amalgamation strategies are often pursued for various reasons,
including achieving synergies, improving market competitiveness,
and enhancing overall organizational performance. Let's explore
the merits and demerits of amalgamation strategies in corporate
strategy:
Merits of Amalgamation Strategy:
1. Synergy and Efficiency:
 Merits: Amalgamation can lead to synergies, where the
combined entity is more efficient and effective than the
individual entities. This can result in cost savings,
improved resource utilization, and enhanced overall
performance.
2. Economies of Scale:
 Merits: Combining resources and operations can result in
economies of scale, especially in industries where larger
operations lead to lower average costs. This is
advantageous in terms of production, distribution, and
other operational activities.
3. Market Strength:
 Merits: Amalgamation can strengthen the market
position of the combined entity. The larger, more
diversified organization may have a competitive
advantage over smaller competitors, both in terms of
market share and negotiating power.
4. Enhanced Capabilities:
 Merits: Amalgamation can bring together
complementary capabilities, technologies, or expertise
from different entities. This can lead to enhanced
innovation, improved product offerings, and a broader
range of services.
5. Financial Stability:
 Merits: The merged entity may benefit from increased
financial stability, which can be especially important in
industries with high capital requirements. A larger
organization may have better access to funding and
capital markets.
6. Diversification:
 Merits: Amalgamation allows for diversification of
business activities and risk. By combining entities with
different strengths and market focuses, the merged
organization may be better positioned to weather
economic downturns or industry-specific challenges.
Demerits of Amalgamation Strategy:
1. Integration Challenges:
 Demerits: The process of integrating different
organizational cultures, systems, and processes can be
complex and time-consuming. Mismanagement during
the integration phase can lead to disruptions and
decreased efficiency.
2. Resistance and Employee Morale:
 Demerits: Employees in both merging entities may resist
change, leading to a decline in morale. Issues related to
job security, changes in work environment, and
uncertainty about the future can impact employee
productivity.
3. Regulatory Hurdles:
 Demerits: Amalgamation may face regulatory hurdles,
requiring approval from government authorities.
Regulatory challenges can delay the process and, in
some cases, lead to the rejection of the amalgamation.
4. Financial Risks:
 Demerits: The financial risks associated with
amalgamation include overvaluation of assets,
underestimation of integration costs, and potential for
financial strain on the merged entity. Poor financial
planning can lead to adverse consequences.
5. Loss of Focus:
 Demerits: Merged entities may experience a loss of focus
on core business activities during the integration phase.
This distraction can impact day-to-day operations and
hinder overall business performance.
6. Cultural Misalignment:
 Demerits: Differences in organizational cultures between
merging entities can lead to conflicts and challenges in
building a cohesive work environment. Cultural
misalignment can negatively affect collaboration and
teamwork.
7. Customer Concerns:
 Demerits: Customers may express concerns or
dissatisfaction during the transition phase, leading to a
potential loss of clientele. Ensuring a seamless customer
experience is critical to mitigate such risks.
8. Execution Complexity:
 Demerits: Successfully executing an amalgamation
strategy requires effective planning, coordination, and
execution. In the absence of careful management, the
process can become overly complex and challenging to
implement.
g) What are the points of attraction for domestic companies in

international business? Explain
Ans. Domestic companies are often attracted to international
business for various reasons, seeking opportunities beyond their
home markets. Engaging in international business activities can
provide several points of attraction for domestic companies, each
contributing to the formulation of a sound corporate strategy. Here
are key points of attraction:
1. **Market Expansion:**
- **Attraction:** Access to larger and diverse markets.
- **Corporate Strategy Implication:** A corporate strategy
focused on market expansion aims to tap into new customer
segments, increase sales potential, and reduce dependence on a
single market.
2. **Profitability and Growth:**

- **Attraction:** Potential for higher profits and accelerated
growth.
- **Corporate Strategy Implication:** Pursuing international
business opportunities aligns with a growth-oriented strategy,
aiming to capitalize on untapped markets and achieve economies
of scale.
3. **Competitive Advantage:**
- **Attraction:** Gaining a competitive edge through global
presence.
- **Corporate Strategy Implication:** The corporate strategy may
involve market positioning, differentiation, and leveraging
international resources to gain a competitive advantage over rivals.
4. **Diversification:**
- **Attraction:** Diversifying business operations across multiple
markets and regions.
- **Corporate Strategy Implication:** A diversification strategy
aims to reduce risks associated with dependence on a single
market, industry, or economic condition.
5. **Access to Resources:**
- **Attraction:** Access to unique resources, including raw
materials, talent, and technology.
involve global sourcing, strategic partnerships, and technology
transfer to leverage international resources.
6. **Economies of Scale:**
- **Attraction:** Achieving economies of scale through larger
production volumes and efficient operations.
focus on optimizing production, supply chain efficiency, and cost
management to benefit from economies of scale.
7. **Technology and Innovation:**

- **Attraction:** Access to advanced technologies and innovation
ecosystems.
- **Corporate Strategy Implication:** A corporate strategy
emphasizing technology and innovation involves collaborations,
research partnerships, and investments in international tech hubs.
8. **Risk Diversification:**
- **Attraction:** Spreading business risks across different
markets and regions.
involve risk diversification through geographical dispersion,
hedging strategies, and adaptability to diverse regulatory
environments.
9. **Brand Building and Reputation:**

- **Attraction:** Enhancing brand visibility and reputation on a
global scale.
emphasize global marketing, brand building, and public relations to
establish a positive international reputation.
10. **Regulatory Advantages:**

- **Attraction:** Benefiting from favorable regulatory
environments in certain countries.
involve selecting markets with supportive regulatory frameworks,
potentially leading to competitive advantages.
11. **Strategic Alliances and Partnerships:**

- **Attraction:** Forming strategic alliances with international
partners.
- **Corporate Strategy Implication:** A corporate strategy may
involve identifying and collaborating with global partners to
enhance capabilities, access markets, and share risks.
12. **Talent Acquisition and Skills Pool:**
- **Attraction:** Access to a diverse and skilled talent pool.
- **Corporate Strategy Implication:** A corporate strategy may
involve attracting and retaining international talent, fostering a
diverse workforce, and leveraging global expertise.
13. **Government Incentives and Support:**

- **Attraction:** Attracting government incentives, subsidies,
and support for international expansion.
involve aligning expansion plans with government initiatives, trade
agreements, and incentives offered in target markets.
h) Discuss the various aspects of SWOT analysis.

Ans. SWOT analysis is a strategic planning tool used in corporate
strategy to assess the internal Strengths and Weaknesses of an
organization, as well as the external Opportunities and Threats it
faces. It provides a comprehensive overview of the current state of
the business and aids in the formulation of strategies to capitalize
on strengths, address weaknesses, seize opportunities, and
mitigate threats. Here are the various aspects of SWOT analysis:
1. **Strengths (Internal):**
- **Definition:** Internal factors that give the organization a
competitive advantage or unique capabilities.
- **Analysis Focus:**
- Core competencies and capabilities.
- Strong brand reputation.
- Skilled and motivated workforce.
- Efficient operational processes.
- Unique intellectual property.
2. **Weaknesses (Internal):**
- **Definition:** Internal factors that hinder the organization's
performance or place it at a disadvantage.
- Operational inefficiencies.
- Limited resources or funding.
- Outdated technology.
- Weaknesses in the supply chain.
- Poor management or leadership.
3. **Opportunities (External):**
- **Definition:** External factors in the environment that the
organization can leverage to its advantage.
- Emerging markets.
- Technological advancements.
- Changes in consumer behavior.
- Strategic partnerships and collaborations.
- Regulatory changes favorable to the industry.
4. **Threats (External):**
- **Definition:** External factors that pose risks or challenges to
the organization's success.
- Intense competition.
- Economic downturns.
- Rapid technological changes.
- Regulatory hurdles.
- Shifting consumer preferences.
5. **Internal vs. External Factors:**

- **Aspect:** SWOT analysis categorizes factors into internal
(Strengths and Weaknesses) and external (Opportunities and
Threats).
- **Significance:** Internal factors are under the organization's
control, while external factors are influenced by the external
environment.
6. **Holistic View of the Business:**

- **Aspect:** SWOT analysis provides a holistic view of the
organization by considering both internal and external factors.
- **Significance:** This holistic approach helps in understanding
how internal capabilities align with external opportunities and how
internal challenges may interact with external threats.
7. **Strategic Alignment:**
- **Aspect:** SWOT analysis helps align the organization's
internal strengths with external opportunities and counteract
internal weaknesses against external threats.
- **Significance:** This alignment is crucial for formulating
effective strategies that leverage strengths, address weaknesses,
capitalize on opportunities, and mitigate threats.
8. **SWOT Matrix:**
- **Aspect:** SWOT analysis results are often presented in a
matrix format, combining internal and external factors.
- **Significance:** The matrix visually represents the
relationships between internal and external factors, helping
identify strategic priorities and action plans.
9. **Prioritization of Issues:**
- **Aspect:** SWOT analysis assists in prioritizing issues by
evaluating their impact and significance.
- **Significance:** This prioritization guides strategic decision-
making, helping organizations focus on addressing the most critical
issues.
10. **Strategic Planning Tool:**

- **Aspect:** SWOT analysis is a valuable tool for strategic
planning and decision-making.
- **Significance:** It provides a foundation for developing
corporate strategies that leverage strengths, address weaknesses,
capitalize on opportunities, and mitigate threats.
11. **Continuous Monitoring and Adaptation:**

- **Aspect:** SWOT analysis is not a one-time exercise; it
requires continuous monitoring and adaptation.
- **Significance:** The business environment evolves, and
regular SWOT analyses ensure that the organization remains agile
and responsive to changing conditions.
12. **Integration with Other Analysis Tools:**

- **Aspect:** SWOT analysis is often integrated with other
strategic analysis tools such as PESTEL analysis, Porter's Five Forces,
and scenario planning.
- **Significance:** Integration enhances the depth and breadth
of strategic insights, providing a more comprehensive
understanding of the business environment.
i) What do you mean by global strategic management? Explain its

features.
Ans. **Global Strategic Management:**
Global Strategic Management refers to the formulation and

implementation of strategies by an organization that span across
international borders. It involves managing the complexities of
operating in diverse geographic locations, considering global
markets, and addressing the challenges and opportunities
presented by the global business environment. The goal of global
strategic management is to create a cohesive and effective strategy
that aligns with the organization's overall mission while accounting
for the complexities of a worldwide marketplace.
**Features of Global Strategic Management:**
1. **Global Perspective:**
- **Feature:** Global strategic management requires a broad and
comprehensive perspective that considers international markets,
cultures, and economic conditions.
- **Significance:** Organizations must look beyond domestic
boundaries and understand the global landscape to identify
opportunities and threats in various regions.
2. **Cross-Cultural Understanding:**
- **Feature:** A focus on understanding and navigating diverse
cultural contexts.
- **Significance:** Different cultures have distinct business
practices, consumer behaviors, and regulatory environments.
Global strategic management involves adapting strategies to suit
these cultural nuances.
3. **Market Diversification:**
- **Feature:** Expansion into multiple markets to reduce
dependence on a single market.
- **Significance:** Diversification across regions helps mitigate
risks associated with economic downturns or geopolitical events in
specific countries.
4. **Standardization vs. Adaptation:**

- **Feature:** The decision to standardize products and services
globally or adapt them to meet local preferences.
- **Significance:** Organizations must find the right balance
between standardization for efficiency and adaptation to cater to
local tastes and preferences.
5. **Global Coordination:**
- **Feature:** Coordinating activities and resources across
different regions.
- **Significance:** Global strategic management involves aligning
diverse operations, supply chains, and teams to achieve consistency
and synergy across the organization.
6. **Risk Management:**
- **Feature:** A focus on identifying and managing risks
associated with international operations.
- **Significance:** Risks can arise from factors such as currency
fluctuations, geopolitical instability, and regulatory changes. Global
strategic management involves proactive risk identification and
mitigation.
7. **Global Market Research:**

- **Feature:** Comprehensive research into global markets,
competitors, and consumer behaviors.
- **Significance:** Informed decision-making requires a deep
understanding of the global business environment. Global strategic
management involves extensive market research to guide strategic
choices.
8. **Global Strategic Alliances:**

- **Feature:** Formation of strategic alliances and partnerships
on a global scale.
- **Significance:** Collaborations with international partners,
suppliers, and distributors can provide access to resources, market
knowledge, and distribution networks.
9. **International Talent Management:**

- **Feature:** Attracting, developing, and retaining a diverse and
skilled international workforce.
- **Significance:** Success in global markets requires a talented
and culturally aware workforce. Global strategic management
involves human resource strategies that cater to an international
workforce.
10. **Global Supply Chain Management:**

- **Feature:** Optimization and management of a global supply
chain.
- **Significance:** Efficient supply chain management is crucial
for timely delivery of products and services globally. Global
strategic management involves streamlining supply chain
processes.
11. **Compliance with Global Regulations:**

- **Feature:** Ensuring compliance with international laws and
regulations.
- **Significance:** Global operations require adherence to
diverse regulatory frameworks. Global strategic management
involves legal and regulatory compliance on a global scale.
12. **Technological Integration:**

- **Feature:** Integration of technology for global connectivity
and operational efficiency.
- **Significance:** Technology plays a key role in global strategic
management, facilitating communication, collaboration, and the
seamless integration of operations across borders.
13. **Sustainability and Corporate Social Responsibility (CSR):**

- **Feature:** Incorporating sustainability practices and CSR
initiatives on a global scale.
- **Significance:** Global strategic management involves
addressing environmental and social responsibilities to meet the
expectations of diverse stakeholders and ensure long-term
sustainability.
j) What do you mean by Strategic advantage profile? Explain its

features.
Ans. The term "Strategic Advantage Profile" refers to a framework
in corporate strategy that involves the identification and analysis of
an organization's key strategic advantages and capabilities. It helps
in understanding how a company differentiates itself from
competitors and what strengths it possesses that contribute to its
competitive advantage. The Strategic Advantage Profile is a tool
that assists in formulating and implementing effective corporate
strategies. Here are the features of the Strategic Advantage Profile:
1. **Identification of Core Competencies:**

- **Feature:** The Strategic Advantage Profile identifies the
organization's core competencies, which are unique capabilities
and resources that give it a competitive edge.
- **Significance:** Core competencies are the foundation of an
organization's strategic advantage, representing its distinctive
strengths that contribute to long-term success.
2. **Competitive Positioning:**
- **Feature:** It involves assessing the organization's competitive
positioning in the market.
- **Significance:** Understanding where the organization stands
in relation to competitors helps in developing strategies to enhance
its competitive advantage, whether through cost leadership,
differentiation, or focus strategies.
3. **Resource and Capability Analysis:**

- **Feature:** The Strategic Advantage Profile involves a detailed
analysis of the organization's resources and capabilities.
- **Significance:** This analysis helps in identifying tangible and
intangible assets, technological strengths, skilled workforce, and
other resources that contribute to the organization's strategic
advantage.
4. **Value Chain Analysis:**

- **Feature:** Evaluation of the organization's value chain to
identify activities that contribute most to its competitive
advantage.
- **Significance:** Understanding the value chain helps in
optimizing key activities, improving efficiency, and creating value
for customers, all of which contribute to strategic advantage.
5. **Sustainable Competitive Advantage:**

- **Feature:** The focus is on identifying sources of sustainable
competitive advantage.
- **Significance:** Sustainable advantages are those that can be
maintained over the long term. The Strategic Advantage Profile
helps in identifying and leveraging such advantages to ensure
ongoing success.
6. **Alignment with Market Needs:**

- **Feature:** Assessing how well the organization's strategic
advantages align with market needs and customer preferences.
- **Significance:** Alignment with market demands ensures that
the organization's strengths are relevant and valuable to its target
audience.
7. **SWOT Integration:**
- **Feature:** Integration with SWOT analysis to align internal
strengths with external opportunities.
- **Significance:** By understanding how internal strengths can
be leveraged to capitalize on external opportunities, organizations
can develop strategies that align with their overall strategic
advantage.
8. **Risk Assessment:**
- **Feature:** Evaluating risks that may threaten the
organization's strategic advantages.
- **Significance:** A proactive approach to risk assessment helps
in developing risk mitigation strategies, ensuring that potential
threats do not erode the organization's strategic advantage.
9. **Innovation and Adaptability:**

- **Feature:** Recognizing the importance of innovation and
adaptability in maintaining a strategic advantage.
- **Significance:** The ability to innovate and adapt to changing
market conditions is critical for sustaining a competitive edge over
time.
10. **Dynamic Nature:**

- **Feature:** Acknowledging that the Strategic Advantage
Profile is dynamic and requires regular reassessment.
- **Significance:** The business environment evolves, and
organizations must adapt their strategic advantages to stay ahead.
Regular reviews ensure that the profile remains relevant and
effective.
11. **Competitor Benchmarking:**

- **Feature:** Comparing the organization's strategic advantages
with those of key competitors.
- **Significance:** Benchmarking helps in understanding the
relative strengths and weaknesses of the organization in the
competitive landscape, guiding strategic decisions.
k) What do you mean by capabilities? What are the types of

capabilities?
Ans. In the context of corporate strategy, "capabilities" refer to the
collective skills, resources, competencies, and capacities that an
organization possesses, enabling it to perform various activities and
functions. Capabilities are a fundamental aspect of a company's
strategic advantage, contributing to its ability to compete,
innovate, and achieve its business objectives. There are various
types of capabilities that organizations may possess, each playing a
specific role in shaping their strategic position. Here are some key
types of capabilities:
1. **Core Capabilities:**
- **Definition:** Core capabilities, or core competencies, are
unique strengths and capabilities that distinguish an organization
from its competitors. They are the key areas where the
organization excels.
- **Significance:** Core capabilities are critical for achieving a
sustainable competitive advantage and are often the foundation of
the organization's strategic positioning.
2. **Operational Capabilities:**
- **Definition:** Operational capabilities refer to the efficiency
and effectiveness of an organization's day-to-day operations. They
include processes, systems, and practices that contribute to smooth
and cost-effective functioning.
- **Significance:** Strong operational capabilities are essential
for meeting customer demands, delivering products or services,
and optimizing internal processes.
3. **Innovative Capabilities:**
- **Definition:** Innovative capabilities involve an organization's
ability to generate new ideas, products, processes, or business
models. This includes research and development, technological
expertise, and a culture of innovation.
- **Significance:** Innovative capabilities are crucial for staying
competitive in dynamic markets, fostering growth, and adapting to
changing customer needs.
4. **Marketing and Branding Capabilities:**

- **Definition:** Marketing and branding capabilities involve the
ability to create and communicate a strong brand image,
understand customer preferences, and effectively market products
or services.
- **Significance:** Strong marketing and branding capabilities
contribute to customer loyalty, market share, and the ability to
differentiate products in a competitive landscape.
5. **Supply Chain Capabilities:**

- **Definition:** Supply chain capabilities encompass the
organization's ability to manage and optimize the flow of goods and
services from suppliers to end customers. This includes logistics,
inventory management, and supplier relationships.
- **Significance:** Efficient supply chain capabilities contribute to
cost savings, timely delivery, and responsiveness to changes in
demand.
6. **Financial Capabilities:**
- **Definition:** Financial capabilities involve effective financial
management, including budgeting, financial planning, risk
management, and investment strategies.
- **Significance:** Sound financial capabilities are essential for
the organization's stability, growth, and ability to invest in strategic
initiatives.
7. **Human Capital Capabilities:**

- **Definition:** Human capital capabilities refer to the skills,
knowledge, and expertise of the organization's workforce. This
includes recruitment, training, and talent development.
- **Significance:** A skilled and motivated workforce is a
valuable asset, contributing to innovation, customer satisfaction,
and overall organizational performance.
8. **Information Technology (IT) Capabilities:**
- **Definition:** IT capabilities encompass the organization's
technological infrastructure, software systems, data management,
and digital capabilities.
- **Significance:** Effective IT capabilities are crucial for
supporting business operations, enabling digital transformation,
and gaining a competitive edge in the digital age.
9. **Strategic Planning and Execution Capabilities:**

- **Definition:** Strategic planning and execution capabilities
involve the ability to formulate, implement, and adapt strategic
plans effectively. This includes strategic thinking, decision-making,
and project management.
- **Significance:** Strong strategic planning and execution
capabilities are essential for translating strategic visions into
tangible actions and outcomes.
10. **Customer Relationship Management (CRM) Capabilities:**

- **Definition:** CRM capabilities involve managing and
enhancing relationships with customers. This includes customer
service, feedback mechanisms, and strategies for customer
retention.
- **Significance:** Effective CRM capabilities contribute to
customer satisfaction, loyalty, and the ability to respond to
changing customer preferences.
11. **Regulatory and Compliance Capabilities:**

- **Definition:** Regulatory and compliance capabilities involve
understanding and adhering to industry regulations, legal
requirements, and ethical standards.
- **Significance:** Robust regulatory and compliance capabilities
are essential for avoiding legal issues, maintaining a positive
reputation, and building trust with stakeholders.
12. **Adaptive Capabilities:**

- **Definition:** Adaptive capabilities refer to the organization's
ability to respond to changes in the external environment, whether
it be market trends, technological advancements, or shifts in
customer behavior.
- **Significance:** Organizations with strong adaptive
capabilities can navigate uncertainty and proactively adjust their
strategies to stay relevant and competitive.
l) Write short notes on VIRO framework.

Ans. The VIRO framework is a strategic management tool used to
assess the sustainability of a firm's competitive advantage. VIRO
stands for Valuable, Rare, Inimitable, and Organized. This
framework helps organizations evaluate their resources and
capabilities to determine whether they can provide a sustainable
competitive edge. Here are short notes on each component of the
VIRO framework:
1. Valuable:
 Definition: Resources or capabilities are considered
valuable if they enable a firm to exploit opportunities or
mitigate threats in the external environment.
 Significance: For sustained competitive advantage, the
resource must contribute significantly to the firm's
overall effectiveness and performance.
2. Rare:
 Definition: Rare resources or capabilities are those
possessed by few, if any, competitors.
 Significance: Rarity enhances the potential for a
competitive advantage because it limits the ability of
competitors to replicate or acquire the same resources
easily.
3. Inimitable (Inimitability):
 Definition: Resources or capabilities are inimitable if
they are difficult for competitors to replicate or imitate.
 Significance: Inimitability is crucial for sustaining a
competitive advantage. If competitors can quickly
replicate what makes a firm successful, the advantage is
likely to erode.
4. Organized (Non-substitutable):
 Definition: The firm must be organized to exploit the full
potential of its valuable, rare, and inimitable resources
or capabilities.
 Significance: Effective organization ensures that the
firm's resources are integrated into its operations, and
there are no easy substitutes that could replace the
competitive advantage.
Key Points about the VIRO Framework:
 Competitive Advantage Assessment: The VIRO framework is
used to evaluate whether a firm's resources and capabilities
provide a sustainable competitive advantage. If a resource
lacks one or more elements (valuable, rare, inimitable,
organized), its potential to contribute to a lasting competitive
edge diminishes.
 Strategic Implications: Resources that meet the criteria of the
VIRO framework are considered strategic assets that can be
leveraged in the formulation and execution of corporate
strategy.
 Dynamic Nature: The VIRO framework acknowledges that the
competitive landscape is dynamic, and resources that were
once valuable, rare, and inimitable may lose their advantage
over time. Therefore, continuous reassessment is necessary.
 Strategic Decision-Making: The VIRO framework assists in
strategic decision-making by helping organizations identify
and prioritize resources and capabilities that can provide a
sustained competitive advantage.
 Resource-Based View (RBV): The VIRO framework is closely
aligned with the Resource-Based View (RBV) of the firm,
which emphasizes the role of unique and valuable resources
in achieving and sustaining competitive advantage.
 Limitations: While the VIRO framework is a valuable tool, it
has some limitations. It does not consider the speed of
imitation or the potential for substitutability in a rapidly
changing business environment.
PART-III
Only Long Answer Type Questions (Answer Any Two out of Four)
Q3 What is strategic control and explain various techniques for
strategic control?
Ans.
Strategic Control:
Strategic control is a critical aspect of corporate strategy that
involves monitoring, evaluating, and adjusting the implementation
of an organization's strategic plans to ensure that they align with
the overall objectives. It aims to assess the effectiveness of
strategies and identify any deviations from the planned course,
allowing for timely corrective actions. Strategic control involves
both ongoing monitoring and periodic evaluations to ensure that
the organization stays on track and adapts to changing
circumstances. Various techniques are employed to exercise
strategic control effectively.
Various Techniques for Strategic Control:
1. Budgetary Control:
 Description: Budgetary control involves comparing
actual financial performance with the budgeted figures.
Variances are analyzed to identify discrepancies and
take corrective actions.
 Significance: This technique helps ensure that financial
resources are allocated efficiently and that the
organization is on track to achieve its financial
objectives.
2. Key Performance Indicators (KPIs):
 Description: KPIs are measurable indicators that reflect
the performance of critical activities aligned with
strategic objectives. Regular monitoring helps assess
progress.
 Significance: KPIs provide a focused and quantifiable
way to track performance against strategic goals and
make informed decisions based on performance metrics.
3. Benchmarking:
 Description: Benchmarking involves comparing the
organization's performance and processes with those of
industry peers or best-in-class organizations.
 Significance: By identifying areas where the organization
lags behind or excels in comparison to others,
benchmarking informs strategic decisions for
improvement or capitalizing on strengths.
4. Strategic Reviews and Audits:
 Description: Periodic reviews and audits assess the
effectiveness of the overall strategic plan and its
execution. External auditors or internal teams may
conduct these assessments.
 Significance: Strategic reviews provide an objective
evaluation of the strategic direction, identifying areas for
improvement and validating the organization's strategic
choices.
5. Management Information Systems (MIS):
 Description: MIS involves the use of information
technology to collect, process, and present relevant data
for decision-making.
 Significance: A well-designed MIS provides real-time
data on various aspects of the organization, supporting
strategic control by facilitating quick access to
information for decision-makers.
6. Balanced Scorecard:
 Description: The balanced scorecard is a strategic
performance management tool that translates an
organization's strategy into a set of performance
indicators across financial, customer, internal processes,
and learning and growth perspectives.
 Significance: The balanced scorecard provides a holistic
view of performance, aligning strategic objectives with
key performance measures.
7. Strategic Information Systems (SIS):
 Description: SIS involves the use of information systems
to support and enhance the organization's strategic
objectives.
 Significance: SIS ensures that information systems are
aligned with the strategic direction, providing support
for decision-making and facilitating strategic control.
8. Strategic Control Panels:
 Description: Control panels display key strategic
indicators in a visual format, allowing for easy
monitoring and interpretation of performance.
 Significance: Control panels provide a quick overview of
key strategic metrics, aiding in decision-making and
allowing for prompt corrective actions.
9. Scenario Planning:
 Description: Scenario planning involves developing and
analyzing different future scenarios to anticipate
potential challenges and opportunities.
 Significance: By considering multiple scenarios,
organizations can prepare for uncertainties and make
strategic adjustments as needed, enhancing adaptability.
10. Crisis Management and Contingency Planning:
 Description: Planning for crises involves preparing for
potential disruptions and having contingency plans in
place.
 Significance: While not a routine control method, crisis
management and contingency planning help the
organization respond effectively to unforeseen events
and safeguard strategic objectives.
11. Project Management Techniques:
 Description: Techniques such as Gantt charts, critical
path analysis, and project milestones are used to
monitor progress and timelines for strategic initiatives.
 Significance: Effective project management ensures that
strategic initiatives are executed on schedule and within
budget, contributing to overall strategic control.
12. Feedback and Learning Loops:
 Description: Establishing feedback mechanisms and
learning loops involves continuously gathering feedback
from various sources and using it to adjust and refine
strategic plans.
 Significance: Incorporating feedback ensures that the
organization can adapt to changing circumstances, learn
from experience, and refine its strategic approach over
time.
Q4 Elucidate the key steps in strategy implementation Process.

Ans. The implementation of a strategic plan is a crucial phase in the
corporate strategy process. Effective strategy implementation
ensures that the organization's vision and goals are translated into
action, leading to the achievement of desired outcomes. The key
steps in the strategy implementation process include:
1. **Clarify and Communicate the Strategy:**

- **Description:** Ensure that the strategic plan is clearly
articulated and communicated throughout the organization. This
involves conveying the mission, vision, goals, and specific objectives
to all stakeholders.
- **Significance:** Clear communication fosters understanding
and alignment among employees, creating a shared vision and
purpose.
2. **Establish Strategic Goals and Objectives:**

- **Description:** Break down the overarching strategy into
specific, measurable, achievable, relevant, and time-bound
(SMART) goals and objectives.
- **Significance:** Well-defined goals provide clarity and
direction, guiding organizational efforts toward the desired
outcomes.
3. **Allocate Resources:**
- **Description:** Allocate human, financial, and other resources
to support the strategic initiatives. This involves aligning resources
with the priority areas identified in the strategic plan.
- **Significance:** Adequate resource allocation is essential for
the successful execution of strategic initiatives and achieving
organizational goals.
4. **Design Organizational Structure:**
- **Description:** Align the organizational structure with the
strategic objectives. Ensure that roles, responsibilities, and
reporting relationships support the strategic priorities.
- **Significance:** An effective organizational structure facilitates
coordination, communication, and the efficient use of resources to
implement the strategy.
5. **Develop Action Plans:**

- **Description:** Create detailed action plans that outline the
specific tasks, activities, and timelines required to achieve strategic
objectives. Assign responsibilities and establish key performance
indicators (KPIs) for monitoring progress.
- **Significance:** Action plans provide a roadmap for
implementation, enabling teams to focus on specific tasks and track
their performance.
6. **Align Policies and Procedures:**

- **Description:** Review and modify organizational policies and
procedures to ensure alignment with the strategic goals. This
includes adjusting decision-making processes, performance
evaluation criteria, and other policies.
- **Significance:** Aligned policies and procedures create a
supportive environment for strategy execution and help overcome
potential barriers.
7. **Build Capabilities and Skills:**

- **Description:** Identify the skills and capabilities required to
execute the strategy successfully. Invest in training, development
programs, and talent management to build the necessary
competencies.
- **Significance:** Building capabilities ensures that the
organization has the right talent and skills to implement the
strategy and adapt to changing demands.
8. **Create a Culture of Execution:**

- **Description:** Foster a culture that values execution and
results. Encourage accountability, transparency, and a focus on
continuous improvement.
- **Significance:** A culture of execution promotes commitment
to strategic goals and helps overcome resistance to change within
the organization.
9. **Establish Monitoring and Evaluation Systems:**

- **Description:** Implement systems to monitor and evaluate
progress against strategic objectives. Develop key performance
indicators (KPIs) and establish reporting mechanisms.
- **Significance:** Monitoring and evaluation systems provide
real-time feedback, enabling timely adjustments to the strategy
and ensuring accountability.
10. **Communicate Progress and Celebrate Milestones:**

- **Description:** Regularly communicate progress updates to all
stakeholders. Celebrate achievements and milestones to
acknowledge the collective efforts of the organization.
- **Significance:** Communication fosters transparency and
motivation, reinforcing a sense of accomplishment and
commitment to the strategy.
11. **Adapt and Learn:**

- **Description:** Be open to feedback, adapt to changing
circumstances, and learn from both successes and failures.
Continuously assess the effectiveness of the strategy and be willing
to make adjustments.
- **Significance:** Flexibility and a learning mindset are essential
for navigating uncertainties and ensuring that the organization
remains responsive to evolving challenges.
12. **Ensure Leadership Alignment:**

- **Description:** Ensure that leaders at all levels are aligned
with the strategic direction and demonstrate commitment to its
implementation. Leaders play a critical role in setting the tone for
execution.
- **Significance:** Leadership alignment ensures a cohesive and
coordinated effort across the organization, promoting a shared
commitment to strategic goals.
Q5 Discuss the Porter's 5 force model used in external environment

analysis.
Ans. Porter's Five Forces model, developed by Michael E. Porter, is
a framework used in corporate strategy for analyzing the external
environment of an industry. The model helps assess the
competitive forces that shape the industry structure and influence
the intensity of competition within it. The five forces identified by
Porter are:
1. **Threat of New Entrants:**

- **Definition:** This force assesses the degree of difficulty for
new companies to enter an industry and compete with established
firms.
- **Factors to Consider:**
- Barriers to entry, such as high startup costs, economies of scale,
and access to distribution channels.
- Brand loyalty and customer switching costs.
- Regulatory restrictions and government policies.
- **Implications:** A high threat of new entrants increases
competition and may put pressure on existing firms to maintain
their market share through differentiation or cost leadership.
2. **Bargaining Power of Buyers (Customers):**

- **Definition:** This force examines the power that buyers
(customers) have in influencing prices, product quality, and other
terms in the industry.
- Number of buyers and their individual sizes.
- Availability of alternative products or services.
- Switching costs for buyers.
- Information availability and transparency.
- **Implications:** If buyers have high bargaining power, they can
demand lower prices or higher quality, reducing the profitability of
firms in the industry.
3. **Bargaining Power of Suppliers:**

- **Definition:** This force evaluates the power of suppliers to
influence the terms and conditions in the industry, including prices
and availability of inputs.
- Concentration of suppliers in the industry.
- Uniqueness of supplier products.
- Switching costs for firms to change suppliers.
- Supplier integration into the industry.
- **Implications:** If suppliers have high bargaining power, they
can demand higher prices for inputs, potentially impacting the
profitability of firms in the industry.
4. **Threat of Substitute Products or Services:**

- **Definition:** This force assesses the extent to which
alternative products or services outside the industry can fulfill the
same needs as the products or services within the industry.
- Availability of substitutes.
- Price-performance trade-offs with substitutes.
- Switching costs for customers.
- Perceived differences in quality or functionality.
- **Implications:** A high threat of substitutes puts pressure on
firms to differentiate their products or services to retain customers.
5. **Intensity of Competitive Rivalry:**

- **Definition:** This force examines the level of competition
among existing firms in the industry.
- Number of competitors and their sizes.
- Rate of industry growth.
- Product differentiation.
- Exit barriers for firms in the industry.
- **Implications:** High intensity of competitive rivalry often
results in price wars, increased marketing expenditures, and
innovation as firms vie for market share.
**Key Points about Porter's Five Forces Model:**
- **Dynamic Nature:** The forces are dynamic and can change over
time due to factors such as technological advancements, regulatory
changes, or shifts in consumer preferences.
- **Strategic Implications:** The model provides strategic insights

by helping firms understand the sources of competition and the
factors that influence industry attractiveness.
- **Complementary to SWOT Analysis:** Porter's Five Forces can
complement SWOT analysis by focusing specifically on the external
environment and competitive forces.
- **Industry-Level Analysis:** The model is typically applied at the

industry level rather than the individual firm level, helping identify
the overall attractiveness of an industry.
- **Strategic Positioning:** Understanding the five forces allows

firms to choose a strategic position—differentiation, cost
leadership, or focus—that aligns with the industry dynamics.
- **Limitations:** While widely used, Porter's Five Forces model

has some limitations, including its static nature and the assumption
of a clear industry boundary. Additionally, it may not fully capture
the dynamics of certain industries, such as those with rapid
technological changes.
Q6 Write short notes on any two :
(a) BCG matrix

Ans. The BCG Matrix, or Boston Consulting Group Matrix, is a
strategic management tool used to analyze a company's portfolio
of business units or products based on their market growth rate
and relative market share. The matrix classifies these units into
four categories:
1. Stars: High market share and high market growth rate. These
are products or business units with significant potential for
growth and profitability. Strategic focus should be on
maintaining and investing in stars to maximize their market
leadership.
2. Cash Cows: High market share but low market growth rate.
Cash cows are established products or business units that
generate stable cash flows. Companies typically "milk" cash
cows by optimizing efficiency and extracting profits to support
other areas of the business.
3. Question Marks (Problem Child): Low market share but high
market growth rate. Question marks have the potential for
growth, but they also require substantial investment.
Companies must decide whether to invest to turn them into
stars or divest if the prospects are not promising.
4. Dogs: Low market share and low market growth rate. Dogs
are products or business units with limited growth prospects
and weak market positions. Strategic options include
divestment, harvesting, or reinvesting in an attempt to
revitalize.
b) Strategic group
Ans. Strategic groups are sets of companies within an industry that
follow similar business strategies and compete directly with one
another. In corporate strategy, understanding strategic groups is
essential for analyzing competitive dynamics and identifying
opportunities and threats. Key points about strategic groups
include:
 Common Strategies: Companies within a strategic group share
similar strategic approaches, target similar customer
segments, and compete on comparable dimensions.
 Competitive Analysis: Analyzing strategic groups helps in
understanding the competitive landscape within an industry.
Companies within the same group are often more direct
competitors than those in different groups.
 Barriers to Entry and Exit: The concept of strategic groups
helps identify the barriers to entry and exit within an industry.
Companies in the same group may face similar challenges in
entering or leaving the market.
 Strategic Group Mapping: Strategic group mapping is a visual
representation of the competitive positions of firms in an
industry. It helps identify gaps and opportunities in the
market.
(c) Mc Kinsey's 7s framework

Ans. McKinsey's 7S Framework is a management model that
analyzes and aligns seven key elements within an organization to
ensure that they work together effectively to achieve
organizational success. The seven elements are divided into two
categories: hard elements and soft elements.
1. Hard Elements:
 Strategy: The plan or direction to achieve organizational
goals.
 Structure: The organization's design and reporting
relationships.
 Systems: The processes and procedures used to carry
out the organization's activities.
2. Soft Elements:
 Shared Values: The core beliefs and values that guide
decision-making and behavior.
 Skills: The capabilities and competencies of individuals
within the organization.
 Style: The leadership and management style prevalent in
the organization.
 Staff: The organization's employees and their individual
attributes.
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~BY DIBYASHIS

7th Semester (Regular/Back) Examination: 2022-23

Answer the following questions:

a) Explain the concept of Strategic Myopia.

Key aspects of strategic myopia include:

2. **Lack of Innovation:** Companies with strategic myopia may

3. **Overemphasis on Core Competencies:** While core

4. **Inadequate Risk Management:** Focusing solely on short-

5. **Inflexibility:** A myopic strategy often involves rigid plans that

6. **Neglect of External Factors:** Companies suffering from

b) What do you mean by distinctive competency?

Key characteristics of distinctive competency include:

1. **Unique Strengths:** Distinctive competencies represent the

2. **Difficult to Replicate:** One of the defining features of

4. **Strategic Fit:** These competencies should align with the

Examples of distinctive competencies may vary across industries,

- **Innovative Product Development:** A company may have a

- **Brand Reputation:** Strong brand equity and a positive brand

- **Cost Leadership:** Superior efficiency in manufacturing

- **Global Supply Chain Management:** Companies with highly

c) Distinguish between hostile takeover and friendly takeover.

Key characteristics of horizontal expansion include:

1. **Same Industry:** The expansion occurs within the same

2. **Market Share Growth:** The primary goal is to capture a

3. **Economies of Scale:** Horizontal expansion often aims to

**Example of Horizontal Expansion in Corporate Strategy:**

Let's consider the example of a fictional company, XYZ Electronics,

1. **Acquisition of a Competitor:** XYZ Electronics acquires

2. **Product Line Extension:** XYZ Electronics introduces new

e) What do you mean by Environmental Scanning?

Key components of environmental scanning include:

1. **Data Collection:** Gathering relevant information from

2. **Analysis:** Evaluating and interpreting the collected

3. **Monitoring Changes:** Regularly tracking changes in the

4. **Competitor Analysis:** Understanding the strategies,

5. **Scenario Planning:** Developing scenarios or alternative

6. **Strategic Decision-Making:** Using the insights gained from

7. **Adaptation:** Environmental scanning is not a one-time

1. **Risk Management:** Identifying potential risks and

2. **Opportunity Identification:** Environmental scanning helps in

3. **Strategic Alignment:** Ensuring that the company's strategies

4. **Competitive Advantage:** A thorough understanding of the

5. **Long-Term Planning:** Environmental scanning is essential for

f) Explain the concept of Strategic business unit.

Key features of Strategic Business Units include:

1. **Independence:** SBUs operate with a significant degree of

2. **Strategic Autonomy:** Each SBU is responsible for developing

3. **Profit and Loss Responsibility:** SBUs often have their own

4. **Product/Market Focus:** SBUs are typically organized based

6. **Performance Evaluation:** Performance metrics for SBUs are

7. **Portfolio Management:** Large corporations often have

**Example of Strategic Business Units:**

Consider a multinational conglomerate operating in various

1. **Healthcare SBU:** This unit focuses on developing,

3. **Manufacturing SBU:** This unit oversees the production and

g) Define vision and mission with example.

h) What is strategic piggybacking?

Key characteristics and considerations of strategic piggybacking

1. **Leveraging Partner's Strengths:**

7. **Strategic Alliances and Partnerships:**

8. **Branding and Reputation Transfer:**

10. **Strategic Planning and Alignment:**

2. Lack of Innovation: Companies with strategic myopia may

3. Overemphasis on Core Competencies: While core

4. Inadequate Risk Management: Focusing solely on short-

5. Inflexibility: A myopic strategy often involves rigid plans that

6. Neglect of External Factors: Companies suffering from

1. Unique Strengths: Distinctive competencies represent the

2. Difficult to Replicate: One of the defining features of

4. Strategic Fit: These competencies should align with the

- Innovative Product Development: A company may have a

- Brand Reputation: Strong brand equity and a positive brand

- Cost Leadership: Superior efficiency in manufacturing

- Global Supply Chain Management: Companies with highly

1. Same Industry: The expansion occurs within the same

2. Market Share Growth: The primary goal is to capture a

3. Economies of Scale: Horizontal expansion often aims to

Example of Horizontal Expansion in Corporate Strategy:

1. Acquisition of a Competitor: XYZ Electronics acquires

2. Product Line Extension: XYZ Electronics introduces new

1. Data Collection: Gathering relevant information from

2. Analysis: Evaluating and interpreting the collected

3. Monitoring Changes: Regularly tracking changes in the

4. Competitor Analysis: Understanding the strategies,

5. Scenario Planning: Developing scenarios or alternative

6. Strategic Decision-Making: Using the insights gained from

7. Adaptation: Environmental scanning is not a one-time

1. Risk Management: Identifying potential risks and

2. Opportunity Identification: Environmental scanning helps in

3. Strategic Alignment: Ensuring that the company's strategies

4. Competitive Advantage: A thorough understanding of the

5. Long-Term Planning: Environmental scanning is essential for

1. Independence: SBUs operate with a significant degree of

2. Strategic Autonomy: Each SBU is responsible for developing

3. Profit and Loss Responsibility: SBUs often have their own

4. Product/Market Focus: SBUs are typically organized based

6. Performance Evaluation: Performance metrics for SBUs are

7. Portfolio Management: Large corporations often have

Example of Strategic Business Units:

1. Healthcare SBU: This unit focuses on developing,

3. Manufacturing SBU: This unit oversees the production and

1. Leveraging Partner's Strengths:

7. Strategic Alliances and Partnerships:

8. Branding and Reputation Transfer:

10. Strategic Planning and Alignment:

11. Legal and Contractual Agreements:

1. Physical Presence (Brick): The company maintains a network

2. Online Presence (Click): In addition to physical stores, the

3. Integration of Channels: The key feature of the brick and

4. Omnichannel Experience: Companies employing a brick and

5. Inventory and Data Integration: To enhance efficiency, brick

Examples of Brick and Click Strategy:

1. Aspirational Goals: Strategic intent involves setting goals

2. Long-Term Horizon: Unlike short-term objectives, strategic

3. Visionary Leadership: Developing strategic intent requires

4. Adaptability: While strategic intent sets a long-term

5. Mobilizing the Organization: A well-crafted strategic intent

6. Differentiation: Strategic intent often involves pursuing a

Example of Strategic Intent:

- Strategic Intent: "A computer on every desk and in every

3. Social and Cultural Environment:

4. Political and Legal Environment:

5. Environmental and Sustainability Factors:

8. Market Trends and Consumer Behavior:

9. Supplier and Partner Relationships:

10. Demographic Factors:

11. Crisis and Risk Factors:

Merits of Merger and Acquisition Strategy:

1. Synergy and Efficiency:

3. Market Presence and Competitive Advantage:

4. Access to New Markets and Customers:

5. Diversification of Products or Services:

6. Enhanced Capabilities and Innovation:

Demerits of Merger and Acquisition Strategy:

2. Resistance and Employee Concerns:

1. Organizational Goals and Objectives:

2. Internal Resources and Capabilities:

7. Innovation and Technology:

8. Customer Needs and Preferences:

9. Legal and Regulatory Considerations:

10. Risk Tolerance:

11. Financial Considerations: