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Q1. What is the term for the process of formulation and implementation of a set of guidelines, decisions and plan of action about the future Dos and Don’ts of the organization that helps them gain advantage over its fellow competitors?
Q2. Company S Inc. dealing in electrical wires allied with Company V Inc. which deals in solar products. The outcome of this alliance resulted in a company called SV Inc. in which S has 40% rights and V has 60% interests. Via this alliance both the company wants to develop a sustainable product.
Identify the type of strategic alliance present in the above case study:
Q3. Company A Inc, majorly dealing in oil and petrochemicals diversify its portfolio and brought 100 % interest in another firm named Y Inc. who deals in the textiles business. The acquisition was planned to keep in view the appropriate and effective strategies related to it. But after precise evaluation, Company A found that after acquisition they have high chances to face issues to remain solvent. To address this issue, the financial managers suggested taking junk bonds and complete the acquisition.
Identify the problem faced by Company A Inc. in achieving acquisition success.
Q4. Mr. X and Mr. Y, managers of company A Ltd. and B ltd. respectively formed a joint venture to protect their industry from more competition. They say that joint ventures are one of the common ways to prevent competition and earn above average returns.
The managers specify that they are blocking one of the forces of Model T. Identify which forces are being blocked by them.
Q5. Person X and Person Y are interested in the growth of the A Ltd. They forecast that the company will be making high-level profits and above average returns in the industry that would benefit both Person X and Person Y. X is more interested in the revenue and profits, while Y is more interested in the working environment and skill development. Identify the group to which Y belongs.
Q6. Which of the following would not help a business to gain a competitive advantage among the customers of the market?
Q7. Bakery XYZ located in the West has been established since 1960. It has been following the same recipes since its establishment and was quite popular among its consumers. It functioned with rigidity and did not prefer to experiment with its cookies and other items.
Individual A opened a new bakery and soon became quite popular among the customers. Bakery XYZ started losing its customers to Mr. A who kept experimenting with the items his bakery offered.
What could possibly be a reason which gave Mr. A, a competitive advantage over Bakery XYZ?
Q8. National Ltd. aims to increase its worth and, in this regard, it has opted for a diversification strategy. State which of the following are not a part of the internal environment incentives for the diversification of the firm.
Q9. It is said that a business firm that shares several business links has well-connected diversification. State which of the following indicate a negligible or low level of diversification.
Q10. A firm gains a competitive edge only when its competitors are not able to replicate the outcomes of the firm’s strategy and they do not have enough resources to compete with the firm. Thus, firms use tools to recognize their core competencies. These tools consist of certain specific criteria of sustainable competitive advantage to identify which capability will become a core competency.
An individual X founded a new company and copied the business model of a well-established company ABC. He made sure to imitate all of its strategies. However, X was not able to sustain itself in the market as he did not make sufficient profits. According to you, which of the following could be a criterion that has given company ABC a competitive advantage that individual X could not incorporate in his business model?
Q11. A Ltd. has recently announced that it would be acquiring Z Ltd. the next month. Point out what could have been one of the possible reasons for the acquisition out of the following?
Q12. Mr. A sets up a huge womens’ wear store in the center of the market. Mr. A is very confident of his store’s size and location and does not care to add any sort of extra add-on to the look or the stock of the shop. He is very boring and upright and tries to sell very ordinary clothes.
After a financial year, the market survey revealed Mr. B the most profitable seller in the women’s clothing line. Mr. A had not earned even half the profits as Mr. B. Mr. B had an average-sized shop full of trending stock and was a creative personality. Mr. B knew all about Mr. A but Mr. A was not even aware of the existence of Mr. B’s store and assumed himself to be the only seller dealing in the line.
What can be one of the reasons for Mr. A’s low profitability?
Q13. Group X and Group Y are different stakeholders of PQR Ltd. Both the groups fail to manage the firm effectively.
The system of management that they were using failed. So, a new system was brought into observation, which is dreaded by both the groups for their own reasons. For e.g., Group Y faces the fear of losing employment.
Identify the new system that is about to be adopted
Q14. Mr. A owns a small grocery shop. He was doing well until a Walmart business opened in the nearby market. He rapidly started to lose his customers and was on the edge of bankruptcy. He decided to not lose hope and do something to attract his customers.
Identify which of the following activities can be undertaken by Mr. A to attract his customers?
Q15. Individual A has been hired by a company, the position upon which he needs to work involves planning, formulation, and motivating employees regarding the company’s growth in the next three to five years.
Identify the role of which Individual A is assigned in terms of strategic key leadership actions.
Q16. Identify which one of the following is not a service quality dimension?
Q17. Analyze the statement and;
“Research and development require the cooperation of employees in terms of relationship across country boundaries to develop a new product”
Identify the concept which is said to be a critical asset that emphasizes internal and external relationships that helps in creating values for stakeholders as well as task accomplishments.
Q18. Company A Inc. and B Inc. were in the same business of telecom industry. Company A Inc. was amazed to see B’s higher sales. The reason for B’s higher sales was his ability to provide better cellular reception to its users. A huge amount of money was invested by company B in Research and development, and as a result, he was able to develop a technology that boosted cellular signal strength and attracted a lot of new users/consumers.
To this Company, A Inc. wanted to buy 100% interest in Company B Inc. Identify by which of the following way Company A Inc. wanted to generate innovation.
Q19. Mr. X wants to start a start-up but is unsure about which industry he should enter into. His friend suggested analyzing the general environment of the business first. He started with the demographic segment of the environment. Under Demographic Segment, the analysis of which of the following would not help in creating new opportunities or imposing new threats in the business world?
Q20. T Ltd. is a company operating in the FMCG sector. With the increasing competition in the FMCG business in recent years, T Ltd. now aims to earn higher profits without much escalation in the prices of its products.
Which would be the most suitable business-level strategy that should be adopted by T Ltd. for earning higher profit margins in comparison to its rivals at the same prices?
Q21. Person M is the manager of J Ltd. He used the resources of the company to build strategic competitiveness. The firm was doing better than the rivals and earning more than average returns. After 4 months K Ltd., a rival of J Ltd. followed a similar strategy and gained an aggressive advantage over J Ltd.
Identify the lack of which feature led to the failure of the strategy.
Q22. ABC Ltd. is an e-commerce company that seeks to expand by entering into media entertainment like its rivals but unlike its rivals, it lacks the required core competencies. The CEO of the company advises its managers to come up with a way to expand. PQR Ltd. a media entertainment company was hired to perform the necessary functions.
Identify which of these is NOT an advantage of using the concept stated in the above lines:
Q23. MGB is a fast-food chain that operates in multiple countries. The culture of the countries is very different from one another, therefore, the managers of each country plan strategies accordingly keeping the broad strategies of the company in mind. They all form different core competencies and capabilities that help them thrive in their respective countries.
Identify the type of international strategies being used here:
Q24. Group T and Group Z are different stakeholders of MNO Ltd. Group T controls the activities of Group Z and wants them to create strategies that fulfill the interests of Group T. Group T made some changes for improving their performance.
Identify which of these changes will not improve the performance of Group T.
Q25. A Ltd. has its headquarters in W, Country C with its branches in many countries, and each of these branches is operated by the managers independently. The structure helps the managers to accommodate the needs of the local customers which helps them get an advantage over the local competitors by better customer satisfaction.
Identify the advantages of this kind of organizational structure:
Q26. XYZ Ltd. is a firm whose managers adopted a strategy that will majorly focus on creating products that are unique from that of their competitors and the departments of the firm are working hard towards following this strategy.
Identify which of the following is NOT a characteristic of such strategy:
Q27. An individual B started a manufacturing firm BKC. After 2 years in business, he started losing his customers. Even after inspecting and valuating, he could not find any faults in the functioning of the management of his firm. He realized that there was something on the part of his customers which he never tried to know. What strategy under the Value Chain Analysis should be adopted by B?
Q28. M Ltd. is a pharmaceutical company that used to be the largest of its kind in the city of NY. It plans to find the cure for COVID-19, but there’s a specific drug called Drug X which the company is unable to access. One of the rivals of the company does have access to that Drug, but that company, G Ltd. is unable to find the cure because it lacks the necessary funds and personnel for R&D. To solve this problem, M Ltd proposes G Ltd. to collaborate for this purpose so both of them will be better off with using each other’s resources and will act as complement to each other.
Which of the following discourages the firm to form alliances?
Q29. Shop C is an average-sized general store dealing in all kinds and varieties of groceries, bakery, and dairy items. Owing to its nature and size, the store is based on a simple organizational structure. Point out which of the following is a characteristic feature of such an organizational setting:
Q30. “The managers at the top level go off the beat and prefer their self-interest over the interest of other stakeholders.”
Choose the option which rightly suits this behavior from below-
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