Q1 Define the strategy. Explain the concept of strategic window ?

Ans. Strategy refers to the concept in which we plan and make strategic military plan which
comes under the various business activities. This is the essential part of business ethics and we
have to implement it on our business practice to make our business more profitable with
minimum risk of loss. While making the strategy we have to study various things which around
our economy to give our idea to work on that circumstances. Hence we have to work upon it.
Strategic window is refers to the change which comes under the market as per the latest
trends. Although every competitor is giving neck to neck competition to every supplier. So we
need to make changes accordingly. So that we should not feel anything such as downfall of our
market share in the market. In this we have to get opportunities of market and grab it at that
time to get into the rhythm. So that our company can get maximum of the benefit from that
market situation in long terms. Here we have some examples which come under this situation.
Like Maruti Suzuki came to India when economy requires goods cars to be manufactured in our
own country. So ultimately it also increased our GDP as well as our domestic market
requirement. In that Maruti Suzuki come in joint ventures and today everyone knows that
brand value of Maruti cars as because they proved their cars are economical as per the middle
class people which is huge in numbers. However we have seen many brands but this has done
something different than others. Other example is for Nokia mobiles. Nokia sold their mobiles
in India when it require for major change. When nokia came to India then Nokia had huge
market share but after some time we had major downfall of market share of Nokia as only
because of change in technology. Today major market share in consist of Samsung and other
companies because they adopted as per the time and sells goods with latest features.
Q2. The essence of business continuity is that businesses need to be planned not only for today,
but also for tomorrow, that is, for the future. Write the meaning and importance of business
continuity planning.

Ans. Business continuity is refers to the planning in which we have to forecast about the future
business prospective. In that we have to maintain all the process and working of operation
which comes under various levels in our company. This is very important part of every business.
Because some time we have to face any mishappning in that country where we are exporting
our goods. So to be on safer side we have to make a guidelines and precautions which protect
us before these kinds of threats. The threats can be natural disaster and manmade disasters. It
can be anything which can harm our business. We have to prepare ourselves to tackle these
kinds of things before they appear. Business continuity is the basic part of everything as
because no company wants to stop their business at any stage. So everyone tries to get more
and more business from their regular and new buyers. Hence for this we have to make proper
setup and continuous planning which can be helpful to us for making our decisions and our
future prospective more good as we required.

Here we have importance of BCP as given below.

1. Natural disaster is refers to the earthquake, flood, storms etc which is by nature.
2. Manmade disaster is refers to the terrorism, sabotage,
3. Financial crisis in economy which is the general in poor countries. But to prevent this we
have to take insurance policies which can help us to get this problem away.

BCP is very helpful at every level. Because nobody knows what will happen tomorrow. So we
have made sure that every policy which we make should have proper precautions and proper
implementation which can reduce the risk level of business at minimum.

Here we have two different business continuity planning strategies as given below.


1. Prevention: In this we have to take below measurements to reduce the levels of risk as
much as we can.
a. Security: in this we need tight security around our office premises. So that we shall
not face any terrorism at our work.
b. Personal: In this we have to hire skilled level worker who can work under this kind of
situation.
c. Infrastructure: Infrastructure of our work premises should be good as per the
security standards.
d. Software: We shall use good software application which can increase our security at
our works.
2. Response: in this we have to take proper response of that disaster with immediate
action.

Q3. Write a brief note on Strategic Audit.

Ans. Strategic audit is refers to area in which we have to study all the operation activities
performance which helps company to run its operations smoothly. So that we should not have
any obstacle in any process at any levels. In this we have to make a process in which we should
not get involved to top members but they can check the whole process of this. After checking
all the things they have to make decisions in we have to take it into consideration and
implementation of that into our real work process.

Here we have some levels a given below which we have to follow while reviewing the strategy
with involving top member of company.
1. Making standard for performance: First part of everything we need to make
performance standards for the all the activities which we have to do in our daily work.
So that we can make a target in which we endure that every team or our department
should achieve it.
2. Datebase design and maintenance: in this we have to make database design and
maintenance criteria. So that we our employee can follow it and we have proper
working of every stage.
3. Strategic audit committee: In this we need to make a committee in which we have to
occupy the team of experts in that they make various plans to achieve things more
properly and systematically. In this we have to increase our production thru
implementation of various tools which can be helpful to company for achievement of
maximum targets.
4. Relationship with CEO: In this we have to make proper relationship with CEO. Because if
our CEO has in touch with every department then he must have to take all decision on
his end and make work properly working as on his behalf. So we have to make CEO to
get information only from department heads instead of all worker of the company. This
makes this process to very long and complex.
5. Alert to duty (by board members): After making all the things we have to make alert to
our entire employee regarding the plans and implement it in our daily working life. So
that we can have proper utilization of resources and we shall get good gains of earning
from our production.

Q4. Price or market competitiveness of a product or business depends on its cost
competitiveness. Cost competitiveness implies two things: cost efficiency and cost
effectiveness. Explain the concept of cost efficiency of an organization. Analyze the major
factors of cost efficiency.

Ans. Cost is basic of every product or everything. Before making the plan into real image we
need to calculate overall all cost of product. So that we can plan how much cost we have and
how much we can get from the market. Part from above we need a particular level of margin in
that we need to get our thing working our properly. Because every businessman wants
maximum of profit but we have to make everything to be work properly around ourselves. Cost
is everything as a part of every product. In this we have to consider various things before
making the cost. As far as our profit is concerned, its all depend upon the market
circumstances which is to be plan and forecasted from the present market conditions.

Here we have some points which come under this topic and help us to get efficient costing of
products.

1. Economic scale: In every manufacturing company we have various things to calculate
while making the final cost of product. So here we have some parts of our cost fixed cost
and variable cost which make total cost and after that we have to add up percentage of
profit.
2. Supply cost: Supply cost is simple as from its word. That supply of products from plant to
customers. As far the factory is from customers in that condition we have increase in
cost. Hence we have to tackle this situation properly and taking care of this while
making the final cost. There also some taxes which comes while sending
3. Product process/design: While making product we have to calculate every section of our
resources that are playing role in its manufacturing to final dispatching. In this for the
efficient cost we need to make proper utilization of resources and also have to make
new innovations thru R&D. This will make our product cost more cheaply than ever
before. But it takes times to make new innovation to get new product. So we need to be
patience while the innovation has to be revealed.
4. Experience: in this we have to get experience from our track record which is observed
by our market trends. In this we have to get constant information from the market and
we have to react upon it as per that market condition.

Q5. Write short notes on the following:
(a) Divestment strategy.
Ans. Divestment is refers to the taking out money share out of total capital by selling share
to public thru IPO. This is the condition when every company feels like they dont have good
results from their various production houses and they are giving us losses instead of profits.
Hence we have to sell the proportion of share into public or company promoters. So that
we can have less burden of losses on ourselves. In this some companies sell of their share to
public and invest their money into another thing. This is the basic thing of todays market
policy in which company major stake holder can sell of their share and get his money back.
For example in starting of Maruti Suzuki government of India had taken back and sold their
stocks in open market which is the best example of divestment strategy. However every
company wants to get maximum of profit from their investment but if they dont receive
profits then they self of their share of company in open market and recover their losses by
this.


(b) Liquidation strategy.
Ans. Liquidation of strategy is refers to the selling of assets of company and converting assets
worth in hard cash. It is in case of when company doesnt want to do work anymore. So they
sell off their assets and get hard from the market and cover their losses as much as they can.
Every company and product has their life cycle in that we have to suffer from various levels of
life cycle at the end of life cycle we have to face this phase in which we have to terminate all
working of company and sell off the assets and get money as much as we can recover the
losses. In this we have different types of closure of firm 1. Voluntary winding up 2. Voluntary
winding up under supervision of the court 3. Compulsory winding up under order of court. In
this we have various examples of winding up the setup of whole firm during the operation as
because of not properly working and increasing of losses due to debt and not performing as per
the targets.


Q6. Describe the different approaches to business ethics.
Ans. Business ethics is refers to that in which we have to follow strict rule and regulations and
in that we have follow various things of working in our organization as particular group. As far
as our rules and regulations are concerned in this we have to work according to our ethics, our
principles and our procedures. But this is only happens when the top management also show
their involvement in this kind of approaches. But in most of the time medium size of
government dont show their interest in this kind of ethics and they dont apply which give
them benefits for time being but as we think about long term. It does not work at all. Because
low thinking and dignity which makes company profitable but for long terms it always effect the
productivity of company and this thing leads to destruction of firm.

Here we have some business ethics as given below.

1. Unconcerned or ethical non-issue approach: In this approach company adopt their
nature as they are just meant for the profit nothing else. They dont care about the rules
and principle of ethics which is meant for them and they should be applied on every
position of companys decision. So that we should not have any unethical things
processed. Best example of this is Lakshmi Niwas Mittals acquisitions and their fall of
profits.
2. Ethical damage control approach: in this we have various things to apply to save or
company image in market as much as we can. In this most of the part we have to talk
about the company image. In this we have to take damage control steps to save
company image from those who are active in market to make any scandal against
company. So there should window dressing by some companies to save their image in
market.
3. Ethics compliance approach: in this we have to make various rules which we have to
apply on our daily work life. So that our employee can have good environment and they
can work as per the rules and principles of company which is true and good path of
business activities.
4. Ethical culture approach: in this company makes a culture in which every person is to
obey the rules and principles of company. From top management to lower level of
management we have to follow the same procedure to work. This makes a motivation
to various employees who are working under our company and they will give their best
to achievement of companys goals.