MB0052 - Strategic Management and Business Policy

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ASSIGNMENT

DRIVE	SPRING 2017
PROGRAM	Master of Business Administration - MBA
SEMESTER	IV
SUBJECT CODE & NAME	MB0052 - Strategic Management and Business Policy
BK ID	B1699
CREDITS	4
MARKS	60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

Question. 1. What do you mean by Strategic Management Process (SMP)? Explain the three levels in Strategic Management Process.

Answer: The strategic management process is more than just a set of rules to follow. It is a philosophical approach to business. Upper management must think strategically first, then apply that thought to a process. The strategic management process is best implemented when everyone within the business understands the strategy. The five stages of the process are goal-setting, analysis, strategy formation, strategy implementation and strategy monitoring.

Question. 2. Write short notes on Corporate Governance and Strategic Audit.

Answer: Strategic audit helps corporate governance in some ways. Firstly, it aids in the detection of fraud. Fraud can affect the corporate image of an organization, and therefore, a strategic audit helps in detection the fraudulent activities. Secondly, it enables the high-risk areas to receive the most attention, and this enables the objectives of corporate governance to be met. Thirdly, it also ensures that the controls and corporate processes are functioning effectively. Furthermore, the strategic audit can determine whether a corporation process can be improved or enhanced, which is cost-effective for the organization or company.

Corporate Governance: Corporate governance is the mechanisms, processes and relations by which corporations are controlled and directed. Governance structures and principles identify the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors,

Question. 3. Explain the major environmental factors a business strategist should consider while formulating business strategies.

Answer: Writing a business strategy is an essential aspect of starting and running a business. Without a clear strategy, it is difficult to set meaningful goals and objectives. In determining your business strategy, a logical analysis of the environment in which you operate will both inform and influence the outcome. This analysis -- commonly called PESTLE, for political, economic, sociological, technological, legal and environmental -- paves the way for identifying opportunities and threats, and effective business planning.

Political: Political factors include how regulations and

Question. 4. Explain Corporate Restructuring using examples.

Answer: Corporate restructuring becomes a buzzword during economic downturns. A company going through tough financial scenario needs to understand the process of corporate restructuring thoroughly. Although restructuring is a generic word for any changes in the company, this word is generally associated with financial troubles.

Definition of Corporate Restructuring: Corporate restructuring is a corporate action taken to significantly modify the structure or the operations of the company. This usually happens when a company is facing significant problems and is in financial jeopardy. Often, the restructuring is referred to the ways to reduce the size of the company and

Question. 5. Explain Michael E Porter’s Competitive Threat Model with suitable examples.

Answer: Porter’s five forces model helps in accessing where the power lies in a business situation. Porter’s Model is actually a business strategy tool that helps in analyzing the attractiveness in an industry structure. It let you access current strength of your competitive position and the strength of the position that you are planning to attain.

Porters Model is considered an important part of planning tool set. When you’re clear about where the power lies, you can take advantage of your strengths and can improve the weaknesses and can compete efficiently and effectively.

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Question. 6. Explain whether Leadership style is Portable? Also explain the leadership Role of Top Management.

Answer: Is management talent portable? The market certainly seems to think so. When a company hires a CEO from General Electric—widely considered in the United States to be the top executive-training ground—the hiring company’s stock price spikes instantly. We studied 20 former GE executives who were appointed chairman, CEO, or CEO designate at other companies between 1989 and 2001, and with only three exceptions, the hiring announcement provoked a positive stock-market reaction—an average gain of about $1.1 billion across the group. When, in 2000, Jeffrey Immelt signed on to replace Jack Welch as GE’s own CEO

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