Business policy & Strategic Management

BusinessPolicy& Strategic Management(VV2)
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Assignment A
1 . What is the importance of writing a Mission statement. Does it hold any impact on the
Profitabilty ,Growth and Market Leadership of a company.
2 . Discuss the use of VRIO Framework for analyzing Resources and Capabilites
3 . What does it take to maintain a Strategic Position of Leadership in Cola Wars. Comment
why Coke and Pepsi are often engaged in the offensive frontal attacks.
4 . Differentiate between Concentric and Conglomerate Diversification while enumerating
relevant examples
5 . Central to any successful marketing strategy is an understanding of customers and their
needs at first.Cite some relevant Customer centric Marketing Industry.
6 . What are the recent trends of Liberalisation,Privatisation and Globalisation of Indian
Economy in different sectors? Also throw some light on e-governance?
7 . Discuss strategic planning & business systemwhich is used across organizations world
wide to align business activities to the vision & improve the performance for more effective
results?
8 . What are the barriers to entry that may be defined for the New Entrants to combat
future competition? Discuss the other 5 Forces as suggested by M.Porter in context of Indian
Airline players.
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Assignment B

Case Detail :
After a dismal 2009, Hindustan Unilever Ltd (HUL), India’s largest consumer company by
revenue, has seen volume growth return to double digits in three successive quarters this
calendar year. This comes after volume either fell or grew marginally in the corresponding year-
ago quarters. It also broke a run of 40 quarters during which volume didn’t expand by more
than single digits.
A year ago, the maker of Lux, Wheel, Dove and Knorr seemed to be floundering, caught in a
spiral of price cuts and shrinking margins.
The comeback has taken place amid a pitched battle with Procter and Gamble Home Products
Ltd (P&G), which also spilled over from the retail shelves into the courts as they fought over
claims made in advertisements.
That fight is reminiscent of its campaign in the 1980s to tackle Nirma, which was making
inroads at the lower end of the market, by launching Wheel, now India’s largest detergent
brand with 18% market share. It also brings to mind the 2004-05 laundry war with P&G, during
which both the companies took a hit on their margins, but eventually HUL emerged stronger.
Keeping pace: Consumer products on display at a supermarket in Delhi. Close to 90% of HUL’s
portfolio is fresh—either a new product or one that’s been relaunched over the last 12 to 18
months.
The Indian arm of the Anglo-Dutch Unilever Plc, which has been present in the country since
1933, did several things that seem to be working for it. The company completely revamped the
product range, cut prices to keep the competition on its toes, tweaked advertising to better
position the offerings, reduced its inventory levels and reached even further into rural India,
opening up new markets for branded goods.
What changed at HUL that allowed to it to succeed this time around? Gopal Vittal, executive
director of the company’s home and personal care (HPC) division, which accounts for 70% of
revenue, characterizes it as an internal transformation.
The Comeback
“The company has now become comfortable in a schizophrenic culture,” he said. He was
referring to the new attitude of the company—more aggressive, flexible and nimble enough to
take up both large and small opportunities that are sharply different in scope.
The gain has not come without its share of pain. For instance, HUL was forced to reduce the
price of Rin detergent and bars by close to 30% following the launch of Tide Naturals, a 30%

cheaper variant of the P&G flagship brand Tide. Then came a round of increases in content and
pack sizes.
The aggressive price cuts have resulted in a decrease of overall sector profit, meaning all
companies need to work that much harder and sell that much more merely to stay in place,
leave alone getting profit growth to hasten.
This battle between the two global consumer giants was inevitable, given that growth is
tapering in the developed markets. Cincinnati-based P&G, which made a serious push into India
only in 2009, although it has been present in the country since 1989, wants to expand as fast as
possible in emerging markets. HUL has a year-to-date market share of 34.5% in detergents and
45.9% in shampoo versus P&G’s 9.6% and 23%, respectively.
While the rivalry has exacted its toll, it has seen both companies benefiting from the expansion
in the market. “Despite risks associated with the tactics in laundry, P&G seems confident in its
strategy and has expressed a desire to continue competing with Unilever and other companies
in contested areas,” Dibadj said in his report.
While P&G has been seeking to make up for lost time, HUL, on the other hand, has single-
mindedly sought to “unblinkingly defend (its) market leadership,” as Harish Manwani,
president, Asia Africa, Unilever executive and non-executive chairman of HUL, put it at a press
briefing on 28 July.
That has meant a vigorous churning of the product range with as many as 41 launches during
the year. Close to 90% of HUL’s portfolio is fresh—either a new product or one that’s been
relaunched over the last 12 to 18 months.
The relaunches include the companies so-called local jewels—Breeze, Liril, Moti, Pears and
Hamam—aimed at taking on homegrown rivals such as Godrej Consumer Products Ltd (GCPL),
which makes Godrej No. 1 and Cinthol, and Wipro Ltd’s Wipro Consumer Care and Lighting
division, which has brands such as Santoor. HUL also reintroduced what it calls power brands—
Lifebuoy and Clinic Plus. It also launched premium products such as anti-ageing formulas and
hair conditioners under existing brands such as Ponds, Dove and Lakme.
Earlier strategies had centred around big categories and big brands. In 2000, it sought to focus
on 30 power brands. In 2005-06, the Masstige(Mass Prestige) strategy sought to make premium
brands available to the masses through appropriate pricing.
That focus on size has widened to accommodate smaller segments.
“We are as passionate, as determined about doing a Rs10 crore opportunity as we are about
Rs2,000 crore,” says Vittal.

Rivals recognize the efforts made by the company.
The company wants to tap growth at both ends of the pyramid. The large categories at the
bottom, such as detergents and soaps, are growing well, while at the top, growth is explosive,
Vittal said.
As the economy continues to boom—India boasts of the second fastest pace of growth
globally—greater prosperity will put more disposable income in the hands of a larger number of
consumers, all with newly awakened aspirations. Or so the argument runs.
This is already happening in the rural areas, helped along by some of the government’s social
welfare programmes such as the Mahatma Gandhi National Rural Employment Guarantee
Scheme, better infrastructure and increased job opportunities. Meanwhile, in urban India,
consumers are looking for more choice and better products.
“Companies have to decide between high volumes and high-value growth. This is a tactical
decision,” said Sunil Duggal, chief executive officer of Dabur India Ltd, which makes personal
and Ayurvedic products such as Vatika and Uveda.
That won’t be an easy call to make considering HUL’s size and reach and the scope of its
ambition.
“In the next five years, the market is going to be 2-2.5 times its present size,” Vittal said. Right
now, his key concern is to ensure that HUL will be nimble enough to keep pace with the rapid
evolution of the market.
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1. Conduct the Portfolio Analysis of Various Brands of HUL w.r.t Categories/Product Lines.
2. Comment on the Relaunches as a result of Turn around Strategies adopted by Company
3. “Companies have to decide between high volumes and high-value growth. This is a
tactical decision” .Comment

Assignment C
1. Which of the following lists is comprised of support activities:
human resource management, information systems, procurement & firm infrastructure
customer service, information systems, technology development, and procurement
human resource management, technology development, customer service, and procurement
human resource management, customer service, marketing and sales, and operations
2. Which of the following is true about business strategies?
An organization should stick with its strategy for the life of the business.
All firms within an industry will adopt the same strategy.
Well defined missions make strategy development much easier.
Strategies are formulated independently of SWOT analysis.
3. Which of the following is an example of competing on the basis of differentiation?
A firm offers more reliable products than its competitors.
A firm's products are introduced into the market faster than its competitors'.
A firm's distribution network routinely delivers its product on time.
firm manufactures its product with less raw material waste than its competitors.
4. The two internal elements of SWOT analysis are
strengths and weaknesses
opportunities and threats
strengths and opportunities
weaknesses and threats
5. The impact of strategies on the general direction and basic character of a company is
short ranged
medium range

long range
temporal
6. What can be defined as the art and science of formulating, implementing and evaluating
cross-functional decisions that enable an organization to achieve its objectives?
Strategy formulation
Strategy evaluation
Strategy implementation
Strategic management
7. Which group would be classified as a stakeholder?
Banks
Suppliers
Employees
All of these
8. The fundamental purpose of an organization's mission statement is to
create a good human relations climate in the organization
define the organization's purpose in society
define the operational structure of the organization
generate good public relations for the organization
9. What analytical tool has four quadrants based on two dimensions: competitive position
and market growth?
Competitive Profile Matrix
Internal-External Matrix
Grand Strategy Matrix
SPACE Matrix
10. The primary benefit sought from restructuring is

Employee involvement.
Cost reduction.
Increased morale.
Increased number of hierarchical levels in the organization.
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11. Cash cows are always in
Introductory industry
Growing industry
Mature industry
Declining industry
12. Which of the following resources is used by all organizations to achieve desired
objectives?
Financial resources,
Physical resources,
Human resources
All of the mentioned options
13. Walls” ice creampurchase “Polka” in order to capture the market. Such kind of
integration is called:
Forward Integration
Backward Integration
Horizontal Integration
Product Development

14. The _______________ has its own business strategy, objectives and competitors and
these are often differ from parent company.
Strategic Business Unit structure
Matrix structure
Divisional structure
None of given option
15. Can best be described as short-term in nature.
Annual objectives
Tenure
Mission statements
Strategies
16. Which of these is often considered the first step in strategic planning?
Establishing goals and objectives
Developing a vision statement
Making a profit
Developing a mission statement
17. Which of the following are Porter's generic strategies?
Low price, differentiation, focus
Cost leadership, differentiation, focus
Price leadership, differentiation, focus
Low cost, differentiation, focus differentiation
18. Which matrices are also known as Portfolio matrices?
SPACE and BCG matrix
IE and BCG matrix

TOWS and IE matrix
SPACE and TOWS matrix
19. Conglomerate diversification is another name for which of the following?
Related diversification
Unrelated diversification
Portfolio diversification
Acquisition diversification
20. Restructuring is also referred to as
De-layering.
Starting over.
Diversifying.
Job security
21. Hofer’s matrix is a fifteen cell matrix in which businesses are plotted in terms of their
competitive position &
Relative profit
Relative market share
Growth rate
Stage of product/market evolution
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22. Functional managers are responsible
for a single area of activity
to the upper level of management and staff

for complex organizational sub-units
for obtaining copyrights and patents for newly developed processes and equipment
23. The degree to which jobs are standardized and guided by rules and procedures is called:
Work specialization
Centralization
Decentralization
Formalization
24. Which factor has been the most rapidly changing component in an organization’s
general environment in the past quarter-century?
Global
Economic
Social
Technological
25. The process of collaborative goal setting by a manager and subordinate; the extent to
which goals are accomplished is a major factor in evaluating and rewarding the
subordinate’s performance. It is called:
Management by objective
Management by resources
Management by authority
Management by system
26. An organization that assigns specialists from different functional departments to work
on one or more than one projects being led by project managers is called -------------
Team Organization
Virtual Organization
Matrix organization
Learning Organization

27. This is an example of a global strategy which is low in risk as it avoids the cost of
establishing production operations in another country
Franchising
Licensing
Export
globalisation
28. In a__the activities are grouped according to functions of management such as finance,
accounting, purchasing.
product/ market structure
Line organistion
staff organisation
functional structure
29. Is characterized by direct lines of authority flowing from top to bottom of the
organizational hierarchy and the lines of responsibility flowing in an opposite but equally
direct manner
flat organisation
Line organistion
functional organisation
informal organisation
30. Is the process of evaluating the employee’s performance on the job in terms of the
requirements of the job.
performance appraisal
Controlling
review
Analysis

31. Under this method, the worker is given training at the workplace by his immediate
supervisor
on the site training
offline training
on the job training
on demand training
32. Unbroken line of authority is known as___
Line of command
hierarchy of commnd
Command
Chain of command
33. Are the guidelines to decision making.
Objectives
Goals
Policies
Decisions
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34. Refers to the formal, established pattern of relationships among the various parts of a
firm or any organisation.
Organisation
Organistionl structure
Organisational culture

Organisation environment
35. A company's ability to meet its short-term financial obligations is measured by which of
the following ratios?
liquidity ratios
profitability
activity
leverage
36. The competencies or skills that a firm employs to transform inputs into outputs are
tangible resources.
intangible resources
organizational capabilities.
reputational resources
37. The "balanced scorecard" supplies top managers with a _____________ view of the
business.
long-term financial
detailed and complex
simple & routine
fast & comprehensive
38. A marketing department that promises delivery quicker than the production
department's ability to produce is an example of a lack of understanding of the
synergy of the business units.
need to maintain the reputation of the company.
organizational culture and leadership
interrelationships among functional areas and firm strategies.
39. Which one of the following should consider in economy while conducting environmental
analysis?

GNP
Transport
Unemployment
Channel of distribution
40. Which of the following shows the process of creating something new?
Innovation
Modeling
Business model
Research
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