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Ms 11 (2018)
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ASSIGNMENT
Course Code : MS - 11
Course Title : Strategic Management
Assignment Code : MS-11/TMA/SEM - II/2018
Coverage : All Blocks
Note:Attempt all the questionsand submit this assignment on or before 31st October, 2018 to the
coordinator of your study centre.
Question. 1. What is a ‘mission statement’? Explain why is it
necessary to formulate a mission statement initially in the process of
formulating a strategy?
Answer: “What is our business and what are we trying to accomplish on behalf of our customers?”
(Direction, umbrella statement, purpose statement, scope of operation)
Purpose Statement
What a company iscurrentlyseekingtodo for its customersis oftentermedthe company’smission.
It answers the question “What is the company’s reason for existing?” A mission statement is a
statement of the company’s purpose. A mission
Question. 2. Write a brief case study showing the strategic
development and its current strategic position of the company of
your choice. Use the published information about the company.
Answer: Strategic Positioning of a firm is one of the hottest concepts in all industries. Driven by
pressuressuchasincreasedcompetition,the needtoimprovequalityproductsandservices,the need
forinnovationfirmsare increasinglyinvestingonthe positioningstrategieswiththe aimof developing
competitiveadvantageovertheircompetitors.This21stcenturyhasseenmore servicesandproducts
increasingly becoming competitive and similar in terms of product features, capabilities and prices.
This has brought about
2. Question. 3. How is Cost Leadership helpful in determining the
success of a business organization? Explain with the help of an
example.
Answer: It istemptingtothinkof cost leadersascompaniesthatsell inferior,poor-qualitygoodsand
servicesforrock-bottomprices.The Yugo,forexample,wasanextremelyunreliablecarthatwasmade
in Eastern Europe and sold in the United States for about $4,000 in the 1980s. Despite its attractive
price tag, the Yugo was a dismal failure becausethe carwas sopoorlymade that driverssimplycould
not depend on the car for transportation. Yugo exited North America in the early 1990s and closed
down entirely in 2008.
Question. 4. Choose two companies from a specific sector which are
following diversification strategies. Compare and contrast the
diversification strategies followed by these companies.
Answer: Diversificationisaform of corporate strategyto increase profitabilityof acompanythrough
greater sales volume obtainedfrom new products and new markets. It occurs either at the business
unit level or at the corporate level. It is a risk management technique that mixes a wide variety of
investmentswithinaportfolio.Itattemptstosmoothoutunmethodicalriskeventsinagroup sothat
the positive performance of some investments will
Question. 5. Identify a company which is on the verge of closing.
Analyze the reasons for the decline of the company.
Answer:While the likesof pie franchise PieFace andjewellerychainBevilles have come outthe other
side, these examples are in the minority.
According to Cliff Sanderson, chief executive of corporate recovery firm Dissolve, voluntary
administration will only save around 10% of
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