Mb0052 Strategic Management and Business Policy Assignment Mba Sem 4

1486 Words Jan 27th, 2013 6 Pages
Master of Business Management
Semester IV
MB0052 – Strategic Management and Business Policy - 4Credits
(Book ID: B1314)
Assignment
Set- 1 (60 Marks)
Note: Each Question carries 10 marks. Answer all the questions.

1. What is meant by ‘Strategy’? Differentiate between goals and objectives.
Answer:

Strategy:- The method by which an organization systematically achieves its future objectives. A business cannot progress for a long term without a reliable strategy. its conceptual evolution, scope and its importance, distinction between goals and objectives, analyzing strategic intent through vision and mission statements and finding out the significance of core competencies of business and critical success factors.

Difference between
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Therefore, they are threats to an established organisation. The threat of an entry depends on the presence of entry barriers and the reactions can be expected from existing competitors. An entry barrier is a hindrance that makes it difficult for a company to enter an industry.

Suppliers Suppliers affect the industry by raising prices or reducing the quality of purchased goods and services.

Rivalry among existing firms In most industries, organizations are mutually dependent. A competitive move by one organization may result in a noticeable effect on its competitors and thus cause retaliation or counter efforts.

Buyers Buyers affect an industry through their ability to reduce prices, bargain for higher quality or more services.

Threat of substitute products and services Substitute products appear different but satisfy the same needs as the original product. Substitute products curb the potential returns of an industry by placing a ceiling on the prices firms can profitably charge.

Other stakeholders - A sixth force should be included to Porters list to include a variety of stakeholder groups. Some of these groups include governments, local communities, trade association unions, and shareholders. The importance of stakeholders varies according to the industry.

4. What is strategic formulation and what are its processes?
Answer:

Strategy Formulation

Strategy formulation is the development of long term plans. It is used
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