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1. Strategic Management
SectionA:Objective Type (30marks)
Part one:
Multiple choices:
1. These are the plansformulatedtoachieve strategicgoals.
a. Tactical plans
b. Strategicplans
c. Operational plans
d. Standingplans
2. This strategyfacilitiesspecializationbyestablishingapositionof overallcostleadership,
differentiation,orboth,butonlywithinaparticularsegment,inanentire market.
a. Specific
b. Focus
c. Directive
d. Differentiation
3. This planbasicallydefinesthe actionsof majordepartmentsandothersub-unitsthatare required
inthe executionof astrategicplan.
a. Tactical plan
b. Operational plan
c. Single-useplan
d. Long-termplan
4. This isa distinctive businessorcollectionof relatedbusiness,thatcan be managedrelatively
independentof otherbusinesseswithinthe organization
a. Functional unit
b. Departmentunit
c. Organizational unit
d. Strategicbusinessunit
5. These strategicplansof the organizationhave a time-frameexceedingfive years.
a. Short-termsplans
b. Single-use plans
c. Long-termplans
d. Intermediateplans
SemesterIIExaminationPapers
IIBMInstitute of BusinessManagement
6. Operational plansare mainlyorientedtowardsissuesthatusuallyhave atime horizonof
a. Aboutfive years
b. 3 to 5 years
c. 1 to 2 years
d. One yearor less
7. These referto the determinationof the purpose andthe basiclong-termobjectivesof an
enterprise,andthe adoptionof coursesof actionandallocationof resourcesnecessarytoachieve
these aims.

2. a. Strategies
b. Plans
c. Policies
d. Procedures
8. These strategiesprovide guidelinesfororganizational growth
a. Organizational
b. Finance
c. Marketing
d. Growth
9. There are the three majorkindsof standingplans:policies,rules,and
a. Projects
b. Programs
c. Procedures
d. Standards
10. Thisstepin the planningprocessinvolvesputtingthe planintoaction.
a. Implementation
b. Selection
c. Evaluation
d. Review
Part Two:
1. Explainthe ‘Adaptive mode’of strategicmanagement.
2. What is ‘Behavioral theory’?
3. Write about‘Delphi technique’of forecasting.
4. What are the basic stepsone shouldfollowforthe ‘Value chainanalysis’?
END OF SECTION A
Caselet1
AkashEngineeringLtd.(AEL) hadachievedsales of Rs.3440 lakhsduringthe year2004-05 against
salesof Rs. 1209 lakhspreviousyear.The salesthisyearwere highesteverachievedinthe historyof
the company.Profitbefore interest,depreciationandtaxeswere Rs.642 lakhsas againstRs. 81
lakhsduringthe year2003-04, whichshoweda tremendousincrease (8times) inprofitabilityof the
company.Economicindicatorswere still positive inthe comingyearforthe company.
COMPANYSNAPSHOTAEL wasestablishedinthe year1963 at Dediyasan
managementplannedtoconvertthe designdepartmentasan individual responsible profitcentre,to
developthe designsforownbusinessaswell asprovidingconsultancytootherbusinesses.Although
the CEO had a great pleasure inannouncingthatthe companyhadreacheda turnoverof Rs. 34.4
crores butwas a little bitapprehensive aboutthe bumpyroadstowardsthe Rs.150 crorestarget.
1. If youwere appointedasa CEO of AEL, Wouldyoulike togo for a separate designdivision?
2. Criticallyevaluate the futureplansof AEL.
3. Do youthinkthe targetset byAEL was realistic?Comment.
4. Commentonthe managementstrategiesadoptedbyAEL.

3. Caselet2
AlloysandMetalsPvt.Ltd.,Indore wasestablishedbyKartikJaininthe year2000, withthe vision
to cater to the needsof the boomingSteel Industry.The companystartedwiththe manufacturingof
Ingots– a steel product,whichservedasaninputforproductionprocessinHot RollingMills.The
turnoverhadreachedoverRs. 45 crores.Encouragedby such a tremendousgrowth,Kartikwas
planningtoinstall anewBlastfurnace to double itsproductioncapacity.Asaninitiativeforfuture
developmentandexpansion,theywere alsolookingintothe avenuesof diversificationinto
manufacturingproductslike Channels, AngelsandRoundswithplanstoenterthe retailingsector.
Now,he was at crossroadsthinkingwhetherandhow to go aboutthisdiversificationprocess.
1. As Kartik,whatwouldhave beenyourstrategiestodeal withthe defaulters?
2. What stepsshouldKartikadoptbefore expansionanddiversification?Woulditbe awise decision
to diversifyatthisstage?
END OF SECTION B
SectionC:AppliedTheory(30marks)
Each questioncarries15marks.
1. Strategicplanninginvolvesboth,the developmentof organizational objectivesandthe
layingdownof specificationsabouthowtheywillbe accomplished.Inthiscontext,
outline the majorstepsinthe strategicplanningprocess.
2. Implementingstrategieseffectivelyisof greatimportance.The successof a strategy
dependsonhoweffectivelyitisimplemented.Elucidate.
END OF SECTION C