STRATEGIC MANAGEMENT

UNIT 1

2 MARKS

1. What are the dimensions of strategic management?

The dimensions of strategic management include strategic analysis, strategy formulation,

strategy implementation, and strategic evaluation.

2.What are the benefits of strategic management?

Strategic management helps organizations achieve competitive advantage, align resources

effectively, foster innovation, and improve decision-making through systematic planning and
execution.

3. What are the risks associated with strategic management? Risks in strategic management
include resistance to change, misalignment between strategy and execution, and challenges in
predicting and adapting to market uncertainties.

4. How has strategic management evolved over time?

Strategic management has evolved from a hierarchical, top-down approach to a more

dynamic, adaptive process that emphasizes agility, innovation, and continuous improvement.

5. What is strategic intent in organizational strategy?

Strategic intent refers to the organization's vision and mission, guiding its purpose and
direction towards long-term goals and aspirations.

6.Why are business vision and mission important?

Business vision and mission provide clarity of purpose, inspire stakeholders, guide decision-
making, and align organizational efforts towards achieving strategic objectives.

7. What are the characteristics of effective vision and mission statements?

Effective vision and mission statements are clear, concise, inspirational, enduring, and reflect
the organization's values, goals, and market positioning.

8. How do organizations evaluate their mission statements?

Organizations evaluate mission statements based on clarity, relevance, alignment with

organizational values, and their ability to guide strategic decision-making.

9. What is the concept of goals and objectives in strategic management?

Goals are broad, long-term aims derived from the organization's mission, while objectives are
specific, measurable steps designed to achieve those goals within a defined timeframe.

10. List the strategic management process.

The strategic management process involves strategic analysis (environmental scanning and
internal assessment), strategy formulation (goal setting and strategic planning), strategy
implementation (resource allocation and execution), and strategic evaluation (performance
assessment and adjustment).

UNIT 2

2 MARKS

1. What is environmental scanning in strategic management?

Environmental scanning involves monitoring, evaluating, and interpreting external

factors and trends that could impact an organization's strategy and operations. It helps in
identifying opportunities and threats.

2 What does PESTEL analysis stand for and what does each component assess?

PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal
factors. Each component assesses specific external influences on an organization, helping to
understand the broader environment.

3 How does a political factor affect PESTEL analysis?

Political factors include government policies, stability, and regulations that can significantly
impact businesses through changes in laws or political climate.

4.List the economic factors considered in PESTEL analysis.

Economic factors in PESTEL analysis include economic growth rates, inflation,

exchange rates, and economic stability, which affect consumer spending patterns and
business operations.

5. What is Porter's Five Forces framework and how does it assist in industry analysis?
Porter's Five Forces framework analyzes industry competitiveness by evaluating the
bargaining power of buyers and suppliers, threat of new entrants, threat of substitutes, and
rivalry among existing competitors.

6. List the concept of competitive dynamics and rivalry.

Competitive dynamics and rivalry refer to the interactions among competitors within an
industry, including pricing strategies, product differentiation, and market share battles.

7. What is SWOT analysis used for in strategic management?

 SWOT analysis assesses an organization's internal strengths and weaknesses along
with external opportunities and threats. It helps in identifying strategic advantages and
challenges.

8. How is SWOT analysis conducted?

SWOT analysis involves identifying internal strengths and weaknesses (S and W) and
external opportunities and threats (O and T), typically through a structured assessment
of organizational capabilities and market conditions.

9. What is competitive positioning in strategic management?

Competitive positioning refers to how an organization positions itself relative to

competitors in terms of market share, pricing strategy, product differentiation, and
brand perception.

10.Why is competitive positioning important in strategy development?

Competitive positioning helps organizations identify unique selling propositions, target

market segments effectively, and differentiate their products or services in a competitive
market landscape.

UNIT 3

2 MARKS

1. What is concentration strategy in corporate-level strategies?

Concentration strategy focuses on growth within a single industry or market segment,
often leveraging existing resources and capabilities to strengthen market position.
2. Define integration strategy in corporate-level strategies.
Integration strategy involves either vertical integration (expanding control over supply
chain or distribution channels) or horizontal integration (acquiring competitors to
consolidate market share).
3. What is diversification strategy in corporate-level strategies?
Diversification strategy aims to expand into new markets or industries to reduce risk
and capitalize on growth opportunities outside the current business scope.
4. List the expansion strategies in corporate-level strategies.
Expansion strategies include market penetration (increasing market share in existing
markets), market development (entering new markets with existing products), and
product development (introducing new products to existing markets).
5. What are retrenchment and combination strategies in corporate-level strategies?
Retrenchment involves reducing operational scale or withdrawing from certain
 markets to stabilize or refocus the business. Combination strategies integrate multiple
approaches like diversification and retrenchment.
6. Define internationalization strategy in corporate-level strategies.
Internationalization strategy involves expanding operations and entering foreign
markets to capitalize on global opportunities, often through exports, joint ventures, or
foreign direct investment.
7. What is cooperation strategy in corporate-level strategies?
Cooperation strategy involves partnerships, alliances, or collaborations with other
firms to leverage complementary strengths, share risks, and achieve mutual strategic
objectives.
8. Define restructuring strategy in corporate-level strategies.
Restructuring strategy involves significant changes to the organization's structure,
operations, or financial aspects to improve efficiency, reduce costs, or realign
strategic focus.
Business Level Strategies:
9. How does industry structure impact business-level strategies?
Industry structure, including competitive forces and market dynamics, influences
strategic choices such as pricing strategies, differentiation efforts, and market
positioning.
10. What are generic strategies in business-level strategies?
Generic strategies (cost leadership, differentiation, and focus) define how firms
compete within their industries by either offering lower costs, differentiated products,
or focusing on niche markets.

UNIT 4

2 MARKS

 Implementation Process:

1. Q: What are the key components of the implementation process in strategic

management?
A: The key components include action planning, resource allocation, setting
objectives, and monitoring progress.

 Resource Allocation:
 2. Q: Why is effective resource allocation important in strategic management?
A: Effective resource allocation ensures that resources such as finances, manpower,
and technology are optimally utilized to achieve strategic objectives.

 Designing Organizational Structure:

3. Q: How does organizational structure impact strategic decision-making?

A: Organizational structure determines how information flows, authority is
distributed, and resources are allocated, all of which influence strategic decision-
making.

 Designing Strategic Control Systems:

4. Q: What is the role of strategic control systems in strategic management?

A: Strategic control systems help monitor performance against objectives, identify
deviations, and facilitate corrective actions to ensure strategic goals are achieved.

 Matching Structure and Control to Strategy:

5. Q: Why is it important to align organizational structure and control mechanisms with

the chosen strategy?
A: Alignment ensures that the organization's structure and control systems support the
implementation of the chosen strategy, enhancing strategic effectiveness.

 Implementing Strategic Change:

6.Q: What are two common approaches for managing resistance during the implementation
of strategic change?

A: Communication strategies and involving employees in the change process are effective
approaches for managing resistance.

 Politics, Power, and Conflict:

7. Q: How can power and politics influence strategic decision-making processes within
organizations?
A: Power dynamics and political influences can affect decision outcomes by shaping
agendas, influencing resource allocation, and determining whose interests are
prioritized.

Techniques of Strategic Evaluation & Control:

8.Q: Name two commonly used techniques for evaluating strategic performance.

A: Balanced Scorecard and Key Performance Indicators (KPIs) are commonly used
techniques for evaluating strategic performance.

 Competitor Profile Matrix (CPM):

9.Q: What does the Competitor Profile Matrix (CPM) assess in strategic management?
 A: The CPM assesses the strengths and weaknesses of a company relative to its competitors
based on key success factors.

 SWOT-TOWSIE Matrix:

10.Q: How does the TOWS matrix differ from the traditional SWOT analysis?

A: The TOWS matrix extends SWOT analysis by linking internal strengths and weaknesses
with external opportunities and threats to generate strategic options (strategies).

UNIT 5

2 MARKS

 Managing Technology and Innovation:

1. Q: How does effective management of technology contribute to innovation within

organizations?

A: Effective technology management facilitates the adoption of new ideas and

processes, fostering innovation and competitiveness.

 Strategic Issues for Nonprofit Organizations:

2. Q: What are two strategic challenges commonly faced by nonprofit organizations?

A: Nonprofit organizations often struggle with funding sustainability and

demonstrating impact amidst evolving societal needs.

 New Business Models and Strategies for Internet Economy:

3. Q: How do subscription-based business models differ from traditional sales models in

the internet economy?

A: Subscription-based models offer recurring revenue streams and focus on long-

term customer relationships, contrasting with one-time sales transactions.

 Emerging Trends in Strategic Management: Digital Transformation:

4. Q: What is digital transformation in the context of strategic management?

A: Digital transformation involves leveraging digital technologies to fundamentally

change business operations, processes, and customer interactions.

 Emerging Trends in Strategic Management: Sustainability:

5. Q: Why is sustainability becoming increasingly important in strategic management?

A: Sustainability addresses environmental, social, and governance (ESG) concerns,
 enhancing brand reputation, reducing costs, and attracting socially conscious
stakeholders.

 Managing Technology and Innovation:

6. Q: Give two examples of how organizations can foster a culture of innovation. A:

Organizations can promote experimentation, encourage cross-functional
collaboration, and reward risk-taking and creativity.

 Strategic Issues for Nonprofit Organizations:

7. Q: How can nonprofit organizations effectively measure and communicate their social
impact?

A: Nonprofits can use impact assessment frameworks and metrics such as social
return on investment (SROI) to quantify and communicate their social impact.

 New Business Models and Strategies for Internet Economy:

8. Q: Discuss two advantages of the platform business model in the internet economy.
A: Platform business models enable scalability, network effects, and facilitate
interactions between multiple parties, fostering innovation and growth.

 Emerging Trends in Strategic Management: AI (Artificial Intelligence):

9. Q: What ethical considerations should organizations address when implementing AI

in strategic management?

A: Organizations should ensure transparency, fairness, accountability, and privacy

protection when implementing AI to mitigate ethical risks and build trust.

 Emerging Trends in Strategic Management: AI (Artificial Intelligence):

10 Q: How can AI enhance strategic decision-making in organizations?

A: AI can analyze large datasets quickly, predict outcomes, and automate routine
tasks, thereby improving decision-making efficiency and accuracy.