BUSINESS STRATEGY SECTION A 1) Define strategy decisions and give the characteristics of strategy decisions?

Ans: Strategic decisions are the decisions that are concerned with whole environment in which the firm operates the entire resources and the people who form the company and the interface between the two. Characteristics/Features of Strategic Decisions a. Strategic decisions have major resource propositions for an organization. These decisions may be concerned with possessing new resources, organizing others or reallocating others. b. Strategic decisions deal with harmonizing organizational resource capabilities with the threats and opportunities. c. Strategic decisions deal with the range of organizational activities. It is all about what they want the organization to be like and to be about. d. Strategic decisions involve a change of major kind since an organization operates in everchanging environment. e. Strategic decisions are complex in nature. f. Strategic decisions are at the top most level, are uncertain as they deal with the future, and involve a lot of risk. g. Strategic decisions are different from administrative and operational decisions. Administrative decisions are routine decisions which help or rather facilitate strategic decisions or operational decisions. Operational decisions are technical decisions which help execution of strategic decisions. To reduce cost is a strategic decision which is achieved through operational decision of reducing the number of employees and how we carry out these reductions will be administrative decision.

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What is the importance of strategy management and what is the need of strategy management?

Ans: Need and Importance of Strategic Management Strategic management has gained importance in recent years. During last century organizations focused on long-term planning. Long-term planning supposed that external and internal environment will remain stable for long period of time and thus they made plans for long duration.

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Today it is clear to the managers and entrepreneurs that environment can change at any point of time and their plans should follow a strategy that includes contingency planning too. In a rapidly changing business environment strategy formulation should therefore be considered as a continuous process of learning. Establishes guidelines: Strategic management Establishes Guidelines to provide assistance and support for the development and Provide a base from which progress can be measured. Systematize decision: Strategic management helps in systematizing an organization's strategic decisions and actions. Research and development: The strategic-management process facilitates cross-functional approach for managing the R&D function to ensure that R&D decisions and plans must be integrated and coordinated across departments. Resource Allocation: Strategic Management promotes effective resource allocation among the business units. Develops communication and co-ordination Helps managers to take a holistic approach What are the barriers of strategic evaluation and control?

Ans: Barriers of strategic evaluation and control: 1) problem in reporting 2) problem in strategic report 3) problem in timing 4) problem of bias 5) organizational problem 6) resistance to evaluation 7) problem of evaluation techniques 4) Explain the difference methods to evaluate strategies?

Ans: The main evaluation methods include: consultation literature review (prospective evaluation synthesis) evaluative review of lessons from other existing programs evaluative goal and objective setting critique evaluative implementation (program) logic critique formative evaluation workshops for centrally funded community programs evaluation hui stakeholder workshops pretesting for program resource development piloting archival, administrative /routine records collection evaluation specific records collection

observation and environmental audit participant observation photos, video and audio document analysis interviews: key informant / participant surveys, questionnaires, feedback sheets focus groups Successful implementation of any strategy depends on two factors. Explain.

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Ans: The factors on which Successful implementation depends are:

SECTION B

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is a plan, or method of approach developed by an individual group or organization, in an effort to successfully achieve an overall goal or objective. a. Strategy b. Tactics c. Policy d. Planning refers to a definite course of action adopted by an individual, group, or organization in an effort to promote the best practice particular to desired results. a. Strategy b. Policy c. Tactics d. Planning .involves the detail, the procedure, and the order of how to achieve the desired results particular to the strategy. a. Strategy b. Policy c. Tactics d. Planning What is the full form of SWOT: a. Strengths, weaknesses, opportunities and Threats b. Strong, weaknesses, opportunities and threats c. Specific , weaknesses, opportunities and threats d. None of the above No plan is good unless it is implemented. a. True b. False Strategy can be formulated on the following basis: a. Corporate level b. Business unit level c. Functional level d. All of the above ..will not change even if the industry in which the company operates changes a. Core value b. Core purpose c. Visionary goals

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d. None of the above 8) ..of the firm. a. Core value b. Core purpose c. Visionary goals d. None of the above ..the firm will pursue to fulfill its mission. a. Core values b. Core purpose c. Visionary goals d. None of the above

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10) Strategic planning provides clearer focus of organizations, producing more efficiency and effectiveness. a. True b. False 11) Strategic planning does not provides the glue that keeps the board together. a. True b. False 12) Strategic planning solves many problems. a. True b. False 13) Like roots of a tree .of organization is hidden from direct view. a. Core competence b. Core values c. Core purpose d. None of these 14) Critical resource in the emerging information age are: a. Information b. Expertise c. Intelligence d. Information, expertise, intelligence

15) It enables the strategists to take corrective action at the right time. a. Premise control b. Control c. Control process

d. None of the above 16) Criteria for making an evaluation are: a. Consistency with goals b. Consistency with environment and money c. Both a and b d. None of these 17) Attack strategies are: a. Frontal attack b. Flank attack c. Encirclement attack d. All of the above 18) Core ideology: a. Core values b. Core purpose c. Both a and b d. None of these 19) Performance is affected by: a. Distorted resource allocation b. Inappropriate structure c. Wrong motivational styles d. All of the above 20) Analysis of various leads to plan for corrective action. a. True b. False 21) Standards of performance act as a bench mark against which the actual performance is compared. a. True b. False 22) Macro environment: a. Political- legal b. Socio -cultural c. Economic -demographic d. All of the above 23) Program is a combination of: a. Goals b. Policies

c. Procedures d. All of the above 24) Displacing competitor is category of goal. a. Common enemy b. Enemy c. Both a and b d. None of these 25) Counterfeiter copy with a difference can be seen. a. False b. True 26) Value chain analysis is an effective tool for. a. External analysis b. Internal analysis c. Cost reduction d. None of the above 27) Strategic stretch involves: a. The fit between the organization and its environment b. Creating new opportunities by stretching and exploiting capabilities in new ways c. The skills of the senior management d. Utilizing all the resources of an organization to their full capacity. 28) The value chain attempts to identify those activities which add value to: a. The organizations stakeholders. b. The senior strategic managers in the organization. c. The organizations shareholders. d. The customer or final user. 29) The value chain is composed of primary & support activities. Which answer below provides the correct components for primary activities? a.Service, human resource management, marketing & sales, operations and outbound logistics. b Marketing & Sales, Operations, Outbound Logistics and Service. c. Procurement, Firm Infrastructure, Human Resource Management, Technology Development and Marketing & Sales. d Inbound Logistics, Operations, Outbound Logistics, Marketing & Sales and Service. 30) What is the purpose of an activity map? a. A system to facilitate better time-planning. b. It is used in business process reengineering to show how the different activities of an organization are linked together

c. It is used to identify and understand strategic capability by mapping how the different activities of an organization are linked together. d. A list of activities undertaken by an organization.