Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2019 Summer 4th Sem 3549901 Strategic Management Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) ? SEMESTER 4? EXAMINATION ? SUMMER 2019
Subject Code: 3549901 Date:02/05/2019
Subject Name: Strategic Management
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.
No.
Question Text and Description Marks
Q.1 Define the following terms with relevant example
(a) Blue Ocean Strategy
(b) Corporate Governance
(c) Hyper Competition
(d) Strategic Intent
(e) Unrelated diversification
(f) Agency relationship
(g) Joint Venture
14
Q.2 (a) External environment is the dominant factor in influencing the
strategy formulation. Explain this with reference to I/O model by
selecting any sector of your choice
07
(b) Explain the Resource based model in detail 07
OR
(b) What are strategic alliances? Explain their advantages and
disadvantages. How to make strategic alliances work
successfully?
07
Q.3 (a) What are the strategies and tactics to deal with VUCA world 07
(b) Write a detailed note on Balance Score Card 07
OR
Q.3 (a) Explain in detail Mc Donald?s Business level strategy and its
implication on Value chain
07
(b) Explain in detail the concept of Related Diversification and its
application for any FMCG company of your choice
07
Q.4 Read the below given case of Apple Inc. and answer the
following questions
During a bad recession in 2008, Apple recorded record sales. The
firm?s strong performance in poor economic times is largely
credited to its innovation capabilities. Apple has continued to
upgrade its current products, such as its laptops, with
enhancements (e.g., MacBook and MacBook Pro). Analysts
believe that these innovative additions will keep Apple?s ?hot
streak? alive and well. Furthermore, projections suggest that
smart phone sales will surge over the next few years. These
projections include a 200 percent increase in the sales of high-
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) ? SEMESTER 4? EXAMINATION ? SUMMER 2019
Subject Code: 3549901 Date:02/05/2019
Subject Name: Strategic Management
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.
No.
Question Text and Description Marks
Q.1 Define the following terms with relevant example
(a) Blue Ocean Strategy
(b) Corporate Governance
(c) Hyper Competition
(d) Strategic Intent
(e) Unrelated diversification
(f) Agency relationship
(g) Joint Venture
14
Q.2 (a) External environment is the dominant factor in influencing the
strategy formulation. Explain this with reference to I/O model by
selecting any sector of your choice
07
(b) Explain the Resource based model in detail 07
OR
(b) What are strategic alliances? Explain their advantages and
disadvantages. How to make strategic alliances work
successfully?
07
Q.3 (a) What are the strategies and tactics to deal with VUCA world 07
(b) Write a detailed note on Balance Score Card 07
OR
Q.3 (a) Explain in detail Mc Donald?s Business level strategy and its
implication on Value chain
07
(b) Explain in detail the concept of Related Diversification and its
application for any FMCG company of your choice
07
Q.4 Read the below given case of Apple Inc. and answer the
following questions
During a bad recession in 2008, Apple recorded record sales. The
firm?s strong performance in poor economic times is largely
credited to its innovation capabilities. Apple has continued to
upgrade its current products, such as its laptops, with
enhancements (e.g., MacBook and MacBook Pro). Analysts
believe that these innovative additions will keep Apple?s ?hot
streak? alive and well. Furthermore, projections suggest that
smart phone sales will surge over the next few years. These
projections include a 200 percent increase in the sales of high-
Page 2 of 4
end mobile phones by 2013, to 300 million in annual sales. The
growing popularity of Web 2.0 applications such as Facebook
and Twitter are increasing the desire for these phones. Such
demand is very positive for the future of BlackBerry and Apple?s
iPhone. By 2013, analysts believe that approximately 23 percent
of all new mobile phone sales will be smartphones. Apple has
also continued to upgrade its innovative iPod with its second
generation of iPod touch. One analyst gave it a perfect score for
the significant enhancements made. And the iPod touch serves
some similar functions as the iPhone such as providing an
Internet connection, using the same touchscreen, and playing
music and videos in the same way.
An example of the continuous innovation is the 4-gigabyte iPod
Shuffle introduced in 2009. It is less than two inches long
(smaller than a double-A battery) and can store approximately
1,000 songs. This is the third-generation Shuffle?the first-
generation Shuffle launched in 2005 could store approximately
240 songs. In addition to increased storage, the new Shuffle can
handle songs in 14 different languages. Apple has ?set the
standard? for design of personal computer since the mid-1990s.
Since 1996, Apple product innovations include developing a tool
that created a quantum increase in the sale of digital music,
creating a mobile phone?a flexible computer?that is fun to use,
and, in customer service, developing a chain of unique and
popular retail stores. Thus, most external observers argue that
Apple?s innovative products have led to their becoming one of
the fastest-growing companies in the United States. Coupled with
its innovation, Apple is an aggressive marketer. While most
firms are paring back their costs and advertising during the
recession, Apple has increased its marketing and advertising
programs. It is the second most prolifi c technology advertiser,
behind Microsoft. While Apple is in a positive market position, it
did experience potential problems in 2009. Its charismatic leader,
Steve Jobs, had to take a medical leave of absence, causing
uncertainty about the company?s future. It also lost a few other
top managers to key positions in other firms. Thus, investors
became nervous and analysts questioned whether the firm could
continue to be a market innovator, especially without Jobs.
(a) Explain Apple?s strategic efforts to develop sustainable
competitive advantages
07
(b) Describe the use of resources in this case. How effective or
ineffective the resources have been utilized by Apple Inc.
07
OR
Q.4 (a) What is the Companies? Generic Strategy?
07
(b) State the advantages and disadvantages of company?s Generic
Stragey
07
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) ? SEMESTER 4? EXAMINATION ? SUMMER 2019
Subject Code: 3549901 Date:02/05/2019
Subject Name: Strategic Management
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.
No.
Question Text and Description Marks
Q.1 Define the following terms with relevant example
(a) Blue Ocean Strategy
(b) Corporate Governance
(c) Hyper Competition
(d) Strategic Intent
(e) Unrelated diversification
(f) Agency relationship
(g) Joint Venture
14
Q.2 (a) External environment is the dominant factor in influencing the
strategy formulation. Explain this with reference to I/O model by
selecting any sector of your choice
07
(b) Explain the Resource based model in detail 07
OR
(b) What are strategic alliances? Explain their advantages and
disadvantages. How to make strategic alliances work
successfully?
07
Q.3 (a) What are the strategies and tactics to deal with VUCA world 07
(b) Write a detailed note on Balance Score Card 07
OR
Q.3 (a) Explain in detail Mc Donald?s Business level strategy and its
implication on Value chain
07
(b) Explain in detail the concept of Related Diversification and its
application for any FMCG company of your choice
07
Q.4 Read the below given case of Apple Inc. and answer the
following questions
During a bad recession in 2008, Apple recorded record sales. The
firm?s strong performance in poor economic times is largely
credited to its innovation capabilities. Apple has continued to
upgrade its current products, such as its laptops, with
enhancements (e.g., MacBook and MacBook Pro). Analysts
believe that these innovative additions will keep Apple?s ?hot
streak? alive and well. Furthermore, projections suggest that
smart phone sales will surge over the next few years. These
projections include a 200 percent increase in the sales of high-
Page 2 of 4
end mobile phones by 2013, to 300 million in annual sales. The
growing popularity of Web 2.0 applications such as Facebook
and Twitter are increasing the desire for these phones. Such
demand is very positive for the future of BlackBerry and Apple?s
iPhone. By 2013, analysts believe that approximately 23 percent
of all new mobile phone sales will be smartphones. Apple has
also continued to upgrade its innovative iPod with its second
generation of iPod touch. One analyst gave it a perfect score for
the significant enhancements made. And the iPod touch serves
some similar functions as the iPhone such as providing an
Internet connection, using the same touchscreen, and playing
music and videos in the same way.
An example of the continuous innovation is the 4-gigabyte iPod
Shuffle introduced in 2009. It is less than two inches long
(smaller than a double-A battery) and can store approximately
1,000 songs. This is the third-generation Shuffle?the first-
generation Shuffle launched in 2005 could store approximately
240 songs. In addition to increased storage, the new Shuffle can
handle songs in 14 different languages. Apple has ?set the
standard? for design of personal computer since the mid-1990s.
Since 1996, Apple product innovations include developing a tool
that created a quantum increase in the sale of digital music,
creating a mobile phone?a flexible computer?that is fun to use,
and, in customer service, developing a chain of unique and
popular retail stores. Thus, most external observers argue that
Apple?s innovative products have led to their becoming one of
the fastest-growing companies in the United States. Coupled with
its innovation, Apple is an aggressive marketer. While most
firms are paring back their costs and advertising during the
recession, Apple has increased its marketing and advertising
programs. It is the second most prolifi c technology advertiser,
behind Microsoft. While Apple is in a positive market position, it
did experience potential problems in 2009. Its charismatic leader,
Steve Jobs, had to take a medical leave of absence, causing
uncertainty about the company?s future. It also lost a few other
top managers to key positions in other firms. Thus, investors
became nervous and analysts questioned whether the firm could
continue to be a market innovator, especially without Jobs.
(a) Explain Apple?s strategic efforts to develop sustainable
competitive advantages
07
(b) Describe the use of resources in this case. How effective or
ineffective the resources have been utilized by Apple Inc.
07
OR
Q.4 (a) What is the Companies? Generic Strategy?
07
(b) State the advantages and disadvantages of company?s Generic
Stragey
07
Page 3 of 4
Q.5
Read the below given case of Philip Morris International
(PMI) and answer the following questions
Employing over 75,000 people, Philip Morris International (PMI) is
the leading international tobacco company in terms of market share.
The fi rm?s product line features seven of the world?s top 15 brands,
including Marlboro, which is the top-selling cigarette brand on a
worldwide basis. (In 2008, PMI sold 310. billion Marlboro cigarettes.
Altria Group, Inc., which spun-off PMI from its operations in March
2008, sells the Marlboro brand in the United States.) PMI sells
products in over 160 countries, holds about a 16 percent share of the
total international cigarette market outside the United States, and has
the largest market share in 11 of the top 30 cigarette markets,
excluding the U.S. market. PMI continues to innovate across its brand
portfolio to serve different needs of various customers and as a means
of stimulating sales of its products. As is true for all firms, the
strategic actions PMI is taking today and will take in the future are
influenced by conditions in its external environment.
The challenge for a firm?s strategic leaders (including those at PMI) is
to understand what the external environment?s effects are on the firm
today and to predict (with as high a degree of accuracy as possible)
what those effects will be on the firm?s strategic actions in the future.
The regulations that are a part of the political/legal segment of PMI?s
general environment (the general environment and all of its segments
are discussed in this chapter) affect how PMI conducts its business. In
general, the regulations regarding the selling of tobacco products are
less restrictive in global markets than in the U.S. market. Nonetheless,
PMI must be aware of how the regulations might change in the
markets it does serve as well as those it may desire to serve in the
future and must prepare to deal with these changes. Aware of the
possible effects of the political/legal environment on its operations in
the future, PMI has made the following public pronouncement: ?We
are proactively working with governments and other stakeholders to
advocate for a comprehensive, consistent and cohesive regulatory
framework that applies to all to tobacco products and is based on the
principle of harm reduction.? (Encouraging all companies competing
in the tobacco industry to develop products with the potential to
reduce the risk of tobacco-related diseases is part
The global segment of the general environment also affects PMI?s
strategic actions. To pursue what it believes are opportunities to sell
additional quantities of its products, PMI recently acquired companies
in Colombia, Indonesia, and Serbia to establish a stronger foothold in
emerging markets. The facts that taxes on tobacco products are lower
in many emerging markets compared to developed markets and that
the consumption of tobacco products is increasing in these markets are
conditions in the external environment influencing the choices PMI
makes as it seeks growth. These conditions differ from those in the
U.S. market where cigarette consumption is declining by
approximately 3 to 4 percent annually and where in mid-2009, the U.S.
Congress passed legislation (which President Obama then signed into
law) that empowered the Food and Drug Administration to regulate
?cigarettes and other forms of tobacco for the first time.? While
cigarette consumption is increasing in some of its markets, PMI
predicts that this will not always be the case.
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) ? SEMESTER 4? EXAMINATION ? SUMMER 2019
Subject Code: 3549901 Date:02/05/2019
Subject Name: Strategic Management
Time: 10:30 AM To 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.
No.
Question Text and Description Marks
Q.1 Define the following terms with relevant example
(a) Blue Ocean Strategy
(b) Corporate Governance
(c) Hyper Competition
(d) Strategic Intent
(e) Unrelated diversification
(f) Agency relationship
(g) Joint Venture
14
Q.2 (a) External environment is the dominant factor in influencing the
strategy formulation. Explain this with reference to I/O model by
selecting any sector of your choice
07
(b) Explain the Resource based model in detail 07
OR
(b) What are strategic alliances? Explain their advantages and
disadvantages. How to make strategic alliances work
successfully?
07
Q.3 (a) What are the strategies and tactics to deal with VUCA world 07
(b) Write a detailed note on Balance Score Card 07
OR
Q.3 (a) Explain in detail Mc Donald?s Business level strategy and its
implication on Value chain
07
(b) Explain in detail the concept of Related Diversification and its
application for any FMCG company of your choice
07
Q.4 Read the below given case of Apple Inc. and answer the
following questions
During a bad recession in 2008, Apple recorded record sales. The
firm?s strong performance in poor economic times is largely
credited to its innovation capabilities. Apple has continued to
upgrade its current products, such as its laptops, with
enhancements (e.g., MacBook and MacBook Pro). Analysts
believe that these innovative additions will keep Apple?s ?hot
streak? alive and well. Furthermore, projections suggest that
smart phone sales will surge over the next few years. These
projections include a 200 percent increase in the sales of high-
Page 2 of 4
end mobile phones by 2013, to 300 million in annual sales. The
growing popularity of Web 2.0 applications such as Facebook
and Twitter are increasing the desire for these phones. Such
demand is very positive for the future of BlackBerry and Apple?s
iPhone. By 2013, analysts believe that approximately 23 percent
of all new mobile phone sales will be smartphones. Apple has
also continued to upgrade its innovative iPod with its second
generation of iPod touch. One analyst gave it a perfect score for
the significant enhancements made. And the iPod touch serves
some similar functions as the iPhone such as providing an
Internet connection, using the same touchscreen, and playing
music and videos in the same way.
An example of the continuous innovation is the 4-gigabyte iPod
Shuffle introduced in 2009. It is less than two inches long
(smaller than a double-A battery) and can store approximately
1,000 songs. This is the third-generation Shuffle?the first-
generation Shuffle launched in 2005 could store approximately
240 songs. In addition to increased storage, the new Shuffle can
handle songs in 14 different languages. Apple has ?set the
standard? for design of personal computer since the mid-1990s.
Since 1996, Apple product innovations include developing a tool
that created a quantum increase in the sale of digital music,
creating a mobile phone?a flexible computer?that is fun to use,
and, in customer service, developing a chain of unique and
popular retail stores. Thus, most external observers argue that
Apple?s innovative products have led to their becoming one of
the fastest-growing companies in the United States. Coupled with
its innovation, Apple is an aggressive marketer. While most
firms are paring back their costs and advertising during the
recession, Apple has increased its marketing and advertising
programs. It is the second most prolifi c technology advertiser,
behind Microsoft. While Apple is in a positive market position, it
did experience potential problems in 2009. Its charismatic leader,
Steve Jobs, had to take a medical leave of absence, causing
uncertainty about the company?s future. It also lost a few other
top managers to key positions in other firms. Thus, investors
became nervous and analysts questioned whether the firm could
continue to be a market innovator, especially without Jobs.
(a) Explain Apple?s strategic efforts to develop sustainable
competitive advantages
07
(b) Describe the use of resources in this case. How effective or
ineffective the resources have been utilized by Apple Inc.
07
OR
Q.4 (a) What is the Companies? Generic Strategy?
07
(b) State the advantages and disadvantages of company?s Generic
Stragey
07
Page 3 of 4
Q.5
Read the below given case of Philip Morris International
(PMI) and answer the following questions
Employing over 75,000 people, Philip Morris International (PMI) is
the leading international tobacco company in terms of market share.
The fi rm?s product line features seven of the world?s top 15 brands,
including Marlboro, which is the top-selling cigarette brand on a
worldwide basis. (In 2008, PMI sold 310. billion Marlboro cigarettes.
Altria Group, Inc., which spun-off PMI from its operations in March
2008, sells the Marlboro brand in the United States.) PMI sells
products in over 160 countries, holds about a 16 percent share of the
total international cigarette market outside the United States, and has
the largest market share in 11 of the top 30 cigarette markets,
excluding the U.S. market. PMI continues to innovate across its brand
portfolio to serve different needs of various customers and as a means
of stimulating sales of its products. As is true for all firms, the
strategic actions PMI is taking today and will take in the future are
influenced by conditions in its external environment.
The challenge for a firm?s strategic leaders (including those at PMI) is
to understand what the external environment?s effects are on the firm
today and to predict (with as high a degree of accuracy as possible)
what those effects will be on the firm?s strategic actions in the future.
The regulations that are a part of the political/legal segment of PMI?s
general environment (the general environment and all of its segments
are discussed in this chapter) affect how PMI conducts its business. In
general, the regulations regarding the selling of tobacco products are
less restrictive in global markets than in the U.S. market. Nonetheless,
PMI must be aware of how the regulations might change in the
markets it does serve as well as those it may desire to serve in the
future and must prepare to deal with these changes. Aware of the
possible effects of the political/legal environment on its operations in
the future, PMI has made the following public pronouncement: ?We
are proactively working with governments and other stakeholders to
advocate for a comprehensive, consistent and cohesive regulatory
framework that applies to all to tobacco products and is based on the
principle of harm reduction.? (Encouraging all companies competing
in the tobacco industry to develop products with the potential to
reduce the risk of tobacco-related diseases is part
The global segment of the general environment also affects PMI?s
strategic actions. To pursue what it believes are opportunities to sell
additional quantities of its products, PMI recently acquired companies
in Colombia, Indonesia, and Serbia to establish a stronger foothold in
emerging markets. The facts that taxes on tobacco products are lower
in many emerging markets compared to developed markets and that
the consumption of tobacco products is increasing in these markets are
conditions in the external environment influencing the choices PMI
makes as it seeks growth. These conditions differ from those in the
U.S. market where cigarette consumption is declining by
approximately 3 to 4 percent annually and where in mid-2009, the U.S.
Congress passed legislation (which President Obama then signed into
law) that empowered the Food and Drug Administration to regulate
?cigarettes and other forms of tobacco for the first time.? While
cigarette consumption is increasing in some of its markets, PMI
predicts that this will not always be the case.
Page 4 of 4
(a)
In this respect, PMI anticipates that changes will occur in the socio
cultural segment of the general environment such that fewer people
will be willing to risk disease by consuming tobacco products.
Anticipating this possibility, PMI recently formed a joint venture
with Swedish Match AB to market smokeless tobacco worldwide.
This collaborative arrangement unites the world?s largest seller of
smokeless tobacco (Swedish Match) with a marketing powerhouse
that has a strong global presence across multiple markets (PMI).
Because it is less dangerous than cigarettes in terms of disease,
smokeless tobacco is seen as a product with long-term growth
potential. PMI will likely remain committed to the importance of its
social performance as it pursues this joint venture. As a measure of
the effects of the physical environment segment of the external
environment, PMI says that it is strongly committed to the
?promotion of sustainable tobacco farming, the efficient use of
natural resources, the reduction of waste in (its) manufacturing
processes, eliminating child labour and giving back to the
communities in which (it) operates.?
How the external environment has affected PMI?s strategic
actions?
07
(b) Write the detailed theoretical note on Porter?s Five Force Model.
07
OR
Q.5 (a) Explain in detail concepts of ?Key success factors? and ?Driving
forces? in external environment.
07
(b)
How the external environment has affected both opportunity
and threat for PMI to enter in Global markets
07
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This post was last modified on 19 February 2020