Taxmann's Enterprise Information Systems & Strategic Management (EIS SM) | CRACKER

SECTION A: ENTERPRISE INFORMATION SYSTEMS

SECTION B: STRATEGIC MANAGEMENT

C HAPTE R- W I S E MA RKS DI ST RI B UTI ON C HA RT

CH. NO.

CHAPTER NAME M-18 N-18 M-19 N-19 N-20 JAN. 21 JULY 21 DEC. 21 MAY 22 NOV. 22 12 ORGA NI S ATI ON

A ND ST RATE GI C LEA DE RS HI P 7 12 8 5 5 10 5 5 5 10 13 ST RATE GY I MPLE ME NTATI ON A ND C ONT ROL 10 12 8 5 10 5 10 5 10 5

MC Qs* 0 0 15 15 15 15 15 15 15 15 * MC Qs wer e i nt r o d uce d i n EI S- S M I CAI Exa ms f r o m May 2019 att e mpt o n war ds.

YEAR QUESTION NO.

PREVIOUS EXAMS TREND ANALYSIS

COMPULSORY CHAPTER NAME MARKS CATEGORY

Nov. 2019 Q . 1 ( a) YES Cor e Ba nki ng Syst e ms 3 The or y ( b) YES Aut o mat e d Busi ness Pr ocess 2 The or y Q 2 ( a) Aut o mat e d Busi ness Pr ocess 6 The or y ( b) I nf or mati on Syst e m &i t s Co mpone nt s 4 The or y

Q . 3 ( a) I nf or mati on Syst e m &i t s Co mpone nt s 6 The or y ( b) E- c o mmer ce, M - c o mmer ce, E mer gi ng Tec hnol ogi es 4 The or y

Q . 4 ( a)

Fi na nci al & Acc o unti ng Syst e m 6 The or y ( b) E- Co mmer ce, M - Co mmer ce, E mer gi ng Tec hnol ogi es 4 The or y

Q 5 ( a) Cor e Ba nki ng Syst e ms 6 The or y ( b) (i ) Cor e Ba nki ng Syst e ms 2 The or y ( b) (ii ) E- Co mmer ce, M - Co mmer ce, E mer gi ng Tec hnol ogi es 2 The or y Or ( b) (ii ) Fi na nci al & Acc o unti ng Syst e m The or y Q 6 Cor por at e Level St r at egi es 5 The or y

Q . 7 ( a) I nt r oducti on t o St r at egi c Ma nage me nt 5 The or y ( b) Dy na m i cs of Co mpeti ti ve St r at egy 5 The or y

Q . 8 ( a) St r at egi c Ma nage me nt Pr ocess 5 The or y ( b) Cor por at e Level St r at egi es 5 The or y

Q 9 ( a) Busi ness Level St r at egi es 5 The or y ( b) Functi onal Level St r at egi es 5 The or y

Q . 10 ( a) Or ga ni s ati on a nd St r at egi c Lea ders hi p 5 The or y ( b) St r at egy I mpl e me nt ati on a nd Cont r ol 5 The or y

Or ( b) Busi ness Level St r at egi es The or y

YEAR QUESTION NO.

COMPULSORY CHAPTER NAME MARKS CATEGORY

Nov 2020 Q 1 ( a) YES Fi na nci al & Acc o unti ng Syst e m 3 The or y ( b) YES Cor e Ba nki ng Syst e ms 2 The or y

Q . 2 ( a) I nf or mati on Syst e m &i t s Co mpone nt s 6 The or y ( b) Aut o mat e d Busi ness Pr ocess 4 The or y

Q . 3 ( a)

Fi na nci al & Acc o unti ng Syst e m 6 The or y ( b) E- Co mmer ce, M - Co mmer ce, E mer gi ng Tec hnol ogi es 4 The or y

Q 4 ( a) Cor e Ba nki ng Syst e ms 6 The or y ( b) E- Co mmer ce, M - Co mmer ce, E mer gi ng Tec hnol ogi es 4 The or y

Q . 5 ( a) Aut o mat e d Busi ness Pr ocess 6 The or y

( b) (i ) I nf or mati on Syst e m &i t s Co mpone nt s 2 The or y ( b) (ii ) I nf or mati on Syst e m &i t s Co mpone nt s 2 The or y

Or ( b) (ii ) I nf or mati on Syst e m &i t s Co mpone nt s 5 The or y

Q 6 YES Busi ness Level St r at egi es 5 The or y

Q . 7 ( a) Or ga ni s ati on a nd St r at egi c Lea ders hi p 5 The or y ( b) St r at egy I mpl e me nt ati on a nd Cont r ol 5 The or y

Q 8 ( a) Busi ness Level St r at egi es 5 The or y ( b) Dy na m i cs of Co mpeti ti ve St r at egy 5 The or y

Q . 9 ( a) Busi ness Level St r at egi es 5 The or y ( b) St r at egi c Ma nage me nt Pr ocess 5 The or y Q . 10 ( a) I nt r oducti on t o St r at egi c Ma nage me nt 5 The or y ( b) Cor por at e Level St r at egi es 5 The or y Or ( b) St r at egy I mpl e me nt ati on a nd Cont r ol The or y

J a n. 2021 Q . 1 ( a) YES I nf or mati on Syst e m &i t s Co mpone nt s 3 The or y ( b) YES I nf or mati on Syst e m &i t s Co mpone nt s 2 The or y

Q . 2 ( a) Aut o mat e d Busi ness Pr ocess 6 The or y

YEAR QUESTION NO.

( b)

Q . 3 ( a)

COMPULSORY CHAPTER NAME MARKS CATEGORY

I nf or mati on Syst e m &i t s Co mpone nt s 4 The or y

E- Co mmer ce, M - Co mmer ce, E mer gi ng Tec hnol ogi es 6 The or y ( b) E- Co mmer ce, M - Co mmer ce, E mer gi ng Tec hnol ogi es 4 The or y

Q 4 ( a)

Cor e Ba nki ng Syst e ms 6 The or y ( b) Cor e Ba nki ng Syst e ms 4 The or y Q . 5 ( a) Aut o mat e d Busi ness Pr ocess 6 The or y ( b) E- Co mmer ce, M - Co mmer ce, E mer gi ng Tec hnol ogi es 4

The or y Or ( b) E- Co mmer ce, M - Co mmer ce, E mer gi ng Tec hnol ogi es The or y

Q . 6 YES Dy na m i cs of Co mpeti ti ve St r at egy 5 The or y

Q 7 ( a) St r at egi c Ma nage me nt Pr ocess 5 The or y ( b) Cor por at e Level St r at egi es 5 The or y Q . 8 ( a) I nt r oducti on t o St r at egi c Ma nage me nt 5 The or y ( b) Busi ness Level St r at egi es 5 The or y

Q . 9 ( a) Dy na m i cs of Co mpeti ti ve St r at egy 5 The or y ( b) St r at egy I mpl e me nt ati on a nd Cont r ol 5 The or y

Q 10 ( a) Or ga ni s ati on a nd St r at egi c Lea ders hi p 5 The or y ( b) Functi onal Level St r at egi es 5 The or y Or ( b) Or ga ni s ati on a nd St r at egi c Lea ders hi p The or y

J ul y 2021 Q 1 ( a) YES Fi na nci al & Acc o unti ng Syst e m 3 The or y ( b) YES Cor e Ba nki ng Syst e ms 2 The or y Q . 2 ( a)

E- Co mmer ce, MCo mmer ce, E mer gi ng Tec hnol - ogi es

6 The or y ( b) Aut o mat e d Busi ness Pr ocess 4 The or y

Q . 3 ( a) I nf or mati on Syst e m &i t s Co mpone nt s 6 The or y ( b) Fi na nci al & Acc o unti ng Syst e m 4 The or y

YEAR QUESTION NO.

Q 4 ( a)

COMPULSORY CHAPTER NAME MARKS CATEGORY

Cor e Ba nki ng Syst e ms 6 The or y ( b) E- Co mmer ce, M - Co mmer ce, E mer gi ng Tec hnol ogi es 4 The or y

Q . 5 ( a) Aut o mat e d Busi ness Pr ocess 6 The or y ( b) I nf or mati on Syst e m &i t s Co mpone nt s 2 The or y ( c) I nf or mati on Syst e m &i t s Co mpone nt s 2 The or y Or ( c) I nf or mati on Syst e m &i t s Co mpone nt s The or y

Q 6 YES I nt r oducti on t o St r at egi c Ma nage me nt 5 The or y

Q . 7 ( a)

Dy na m i cs of Co mpeti ti ve St r at egy 5 The or y ( b) St r at egi c Ma nage me nt Pr ocess 5 The or y

Q 8 ( a) Cor por at e Level St r at egi es 5 The or y ( b) Dy na m i cs of Co mpeti ti ve St r at egy 5 The or y

Q 9 ( a) Busi ness Level St r at egi es 5 The or y ( b) Functi onal Level St r at egi es 5 The or y Q . 10 ( a) Or ga ni s ati on a nd St r at egi c Lea ders hi p 5 The or y ( b) St r at egy I mpl e me nt ati on a nd Cont r ol 5 The or y Or ( b) St r at egy I mpl e me nt ati on a nd Cont r ol The or y

Dec. 2021 Q . 1 ( a) YES Fi na nci al & Acc o unti ng Syst e m 3 The or y ( b) YES I nf or mati on Syst e m &i t s Co mpone nt s 2 The or y

Q 2 ( a) I nf or mati on Syst e m &i t s Co mpone nt s 6 The or y ( b) E- Co mmer ce, MCo mmer ce, E mer gi ng Tec hnol - ogi es

4 The or y

Q 3 ( a) Aut o mat e d Busi ness Pr ocess 6 The or y ( b) Aut o mat e d Busi ness Pr ocess 4 The or y Q . 4 ( a) Fi na nci al & Acc o unti ng Syst e m 6 The or y ( b) Cor e Ba nki ng Syst e ms 4 The or y

Q 5 ( a) Cor e Ba nki ng Syst e ms 6 The or y

YEAR QUESTION NO.

COMPULSORY CHAPTER NAME MARKS CATEGORY

( b)

E- Co mmer ce, MCo mmer ce, E mer gi ng Tec hnol ogi es

4 The or y or ( b) E- Co mmer ce, MCo mmer ce, E mer gi ng Tec hnol ogi es

4 The or y 6 YES Busi ness Level St r at egi es 5 The or y

Q 7 ( a) Or ga ni s ati on a nd St r at egi c Lea ders hi p 5 The or y ( b) St r at egi c Ma nage me nt Pr ocess 5 The or y Q 8 ( a) Dy na m i cs of Co mpeti ti ve St r at egy 5 The or y ( b) Cor por at e Level St r at egi es 5 The or y Q . 9 ( a) I nt r oducti on t o St r at egi c Ma nage me nt 5 The or y ( b) Cor por at e Level St r at egi es 5 The or y Q 10 ( a) I nt r oducti on t o St r at egi c Ma nage me nt 5 The or y ( b) St r at egy I mpl e me nt ati on a nd Cont r ol 5 The or y or ( b) Busi ness Level St r at egi es 5 The or y May 2022 Q . 1 ( a) YES Aut o mat e d Busi ness Pr ocess 3 The or y ( b) YES I nf or mati on s yst e m & i t s c o mpone nt s 2 The or y

Q 2 ( a) Cor e Ba nki ng Syst e m 6 The or y ( b) Fi na nci al & Acc o unti ng Syst e m 4 The or y Q . 3 ( a) I nf or mati on s yst e m & i t s c o mpone nt s 6 The or y ( b) Fi na nci al & Acc o unti ng Syst e m 4 The or y Q 4 ( a) Aut o mat e d Busi ness Pr ocess 6 The or y ( b) E- Co m mer c e, M- Co m mer c e, E mer gi ng Tec hnol ogi es 4 The or y

Q 5 ( a) Cor e Ba nki ng Syst e m 6 The or y ( b) E- Co m mer c e, M- Co m mer c e, E mer gi ng Tec hnol ogi es 4 The or y or ( b) E- Co m mer c e, M- Co m mer c e, E mer gi ng Tec hnol ogi es 4 The or y

YEAR QUESTION NO.

COMPULSORY CHAPTER NAME MARKS CATEGORY

Q 6 YES St r at e g y I mpl e me nt ati o n a n d Cont r ol 5 The or y

Q . 7 ( a)

I nt r oducti on t o St r at egi c Ma nage me nt 5 The or y ( b) Functi onal Level St r at egi es 5 The or y

Q 8 ( a) St r at egi c Ma nage me nt Pr ocess 5 The or y ( b) Or g a ni z ati o nal An d St r at e gi c Lea ders hi p 5 The or y

Q . 9 ( a) St r at e gi c i mpl e me nt ati o n & c ont r ol 5 The or y ( b) Dy na m i cs of Co mpeti ti ve St r ategy 5 The or y

Q . 10 ( a)

Cor por at e Level St r at egi es 5 The or y ( b) Cor por at e Level St r at egi es 5 The or y or ( b) Busi ness Level St r at egi es 5 Nov. 2022 Q . 1 ( a ) YES I nf or mat i o n s y s t e m & i t s c o mpone nt s 3 The or y (b ) YES I nf or mat i o n s y s t e m & i t s c o mpone nt s 2 The or y

Q 2 ( a )

Aut o mat e d Busi ness Pr ocess 6 The or y (b ) Fi na nci al & Acc o unti ng Syst e m 4 The or y

Q . 3 ( a ) E- c o m me r c e, M- c o m me r c e, E mer gi ng Tec hnol ogi es 6 The or y (b ) Aut o mat e d Busi ness Pr ocess 4 The or y Q . 4 ( a ) Cor e Ba nki ng Syst e m 6 The or y (b ) Cor e Ba nki ng Syst e m 4 The or y

Q 5 ( a )

I nf or mat i o n s y s t e m & i t s c o mpone nt s 6 The or y (b ) Fi na nci al & Acc o unti ng Syst e m E- c o m me r c e, M- c o m me r c e, E mer gi ng Tec hnol ogi es

4 4 The or y The or y

Q 6 YES Busi ness Level St r at egi es 5 The or y

Q 7( a )

I nt r o d u ct i o n t o St r at e gi c Ma nage me nt 5 The or y (b ) Or g a ni z ati o nal a n d St r at e gi c Lea ders hi p 5 The or y

Q 8( a ) Cor por at e Level St r at egi es 5 The or y (b ) Busi ness Level St r at egi es 5 The or y

YEAR QUESTION NO.

Q 9 ( a )

P RE VI OUS E XA MS T RE ND A NALYSI S

COMPULSORY CHAPTER NAME MARKS CATEGORY

Dy n a mi c s of C o mp et i t i v e St r at egy 5 The or y

(b ) St r at egi c Ma nage me nt Pr ocess 5 The or y

Q . 10. ( a ) St r at egy i mpl e me nt ati on a nd c ont r ol 5 The or y

(b )

CHAPTER-WISE COMPARISON WITH STUDY MATERIAL

CHAPTER CHAPTER NAME

STUDY MATERIAL CHAPTER

SECTION A : ENTERPRISE INFORMATION SYSTEMS 1 A UT O MATE D B USI NESS P ROCESS Chapt er 1 2 FI NA NCI AL & ACC OUNTI NG S YSTE M Chapt er 2

I NF OR MATI ON S YSTE M & I TS C O MP ONE NTS Chapt er 3 4 E- C O MME RCE , M - C O MME RCE , E ME RGI NG TEC HNOL OGI ES Chapt er 4 5 C ORE BA NKI NG S YSTE MS Chapt er 5

SECTION B : STRATEGIC MANAGEMENT 6 I NT RODUCTI ON T O ST RATE GI C MA NA GE ME NT Chapt er 1 7 DY NA MI CS OF C O MP ETI TI VE ST RATE GY Chapt er 2 8 ST RATE GI C MA NA GE ME NT P ROCESS Chapt er 3 9 C ORP ORATE LE VEL ST RATE GI ES Chapt er 4 10 B USI NESS LE VEL ST RATE GI ES Chapt er 5 11 F UNCTI ONAL LE VEL ST RATE GI ES Chapt er 6 12 ORGA NI S ATI ON A ND ST RATE GI C LEA DE RS HI P Chapt er 7 13 ST RATE GY I MPLE ME NTATI ON A ND C ONT ROL Chapt er 8

SECTION A

STRATEGIC MANAGEMENT

Chapter 6

Introduction to Strategic Management 6.3

Chapter 7 Dynamics of Competitive Strategy 7.1

Chapter 8 Strategic Management Process 8.1

Chapter 9 Corporate Level Strategies 9.1

Chapter 10 Business Level Strategies 10.1

Chapter 11 Functional Level Strategies 11.1

Chapter 12 Organisation and Strategic Leadership 12.1

Chapter 13 Strategy Implementation and Control 13.1 u Application Based MCQs & Integrated Case Studies M.1 u Solved Paper - CA Intermediate Nov. 2020 P.1 u Solved Paper - CA Intermediate Jan. 2021 P.24 u Solved Paper - CA Intermediate July 2021 P.43 u Solved Paper - CA Intermediate Dec. 2021 P.65 u Solved Paper - CA Intermediate May 2022 P.84 u Solved Paper - CA Intermediate Nov. 2022 P.105

STRATEGIC MANAGEMENT PROCESS

Q1. Distinguish between Strategic Plan and Operational Plan.

Ans. u

u

St r at e gi c pl a ns ar e ma de by t he s e ni or ma nage me nt f or t he e nti r e or ga ni z ati o n aft er t a ki ng i nt o acc o unt t he or ga ni z ati o n ’ s st r e ngt h a nd we a k ness es i n t he li g ht of opport uni ti es a nd t hr e at s i n t he e xt er nal e nvi r o n me nt. The y i nv ol ve ac q ui si ti o n a nd all oc ati o n of r es o ur ces f or t he att ai n me nt of or ga ni z ati o nal o bj ecti ves.

But oper ati o nal pl a ns o n t he ot her ha nd ar e ma de at t he m i ddl e a nd l o wer l e vel ma nage me nt. The y s peci f y det ail s o n ho w t he r es o ur ces ar e t o be utili z e d effi ci e ntl y f or t he att ai n me nt of o bj ecti ves.

Q2. What is Strategic Planning?

Ans.

1. It i s t he pr ocess of: u det er m i ni ng t he o bj ecti ves of t he fi r m , u r es o ur ces r e q ui r e d t o att ai n t hes e o bj ecti ves a nd u f or mul ati o n of poli ci es t o g over n t he ac q ui si ti o n, u us e a nd di s posi ti o n of r es o ur ces.

2. St r at e gi c pl a nni ng i nv ol ves a f act of i nt er acti ve a nd overl a ppi ng deci - si o ns l e a di ng t o t he de vel op me nt of a n eff ecti ve st r at e gy f or t he fi r m .

3. St r at e gi c pl a nni ng det er m i nes wher e a n or ga ni z ati o n i s g oi ng over t he ne xt ye ar or mor e a nd t he ways f or g oi ng t her e

4. The pr ocess i s or ga ni z ati o n- w i de, or f oc us e d o n a maj or f uncti o n s uc h as a di vi si o n or ot her maj or f uncti o n.

Q3. How can a company deal with strategic uncertainty?

Ans.

1. St r at e gi c uncert ai nt y de not es t he uncert ai nt y t hat has cr uci al i mplic ati o ns f or t he or ga ni z ati o n.

2. A t y pi c al e xt er nal a nal ysi s will e mer ge w i t h doz e ns of st r at e gi c uncer - t ai nti es.

3. To be ma nage a bl e, t he y nee d t o be gr o upe d i nt o l ogi c al cl ust ers or t he mes.

4. It i s t he n us ef ul t o ass ess t he i mport a nce of e ac h cl ust er i n or der t o s et pri ori ti es w i t h r es pect t o I nf or mati o n gat heri ng a nd a nal ysi s.

Q4. What is Strategic Decision Making? What tasks are performed by a strategic manager? (RTP Nov. 2020)

Ans.

1. Deci si o n ma ki ng u i s a ma nageri al pr ocess of u s el ecti ng t he best c o urs e of acti o n o ut of s e ver al al t er nati ve c o urs es u f or t he p ur pos e of acc o mpli s h me nt of t he or ga ni z ati o nal g oal s.

2. Deci si o ns may be oper ati o nal, i.e., whi c h r el at e t o ge ner al day- t o- day oper ati o ns.

3. The y may al s o be st r at e gi c i n nat ur e.

4 Acc or di ng t o J a uc h a nd Gl uec k

“ St r at e gi c deci si o ns e nc o mpass t he u defi ni ti o n of t he b usi ness, u f uncti o ns t o be perf or me d u maj or poli ci es nee de d f or t he or ga ni z ati o n, u pr o d uct s t o be ha ndl e d, u mar ket s t o be s er ve d, t o e xec ut e t hes e deci si o ns t o ac hi e ve t he st r at e gi c o bj ecti ves. ”

The primary task of the strategic manager is conceptualizing, designing and executing company strategies. For this purpose, his tasks include: u

Defi ni ng t he m i ssi o n a nd g oal s of t he or ga ni z ati o n. u Det er m i ni ng what b usi ness es i t s ho ul d be i n. u All oc ati ng r es o ur ces a mo ng t he di ff er e nt b usi ness es. u For mul ati ng a nd i mpl e me nti ng st r at e gi es t hat s pa n i ndi vi d ual b usiness es. u

Pr ovi di ng l e a ders hi p f or t he or ga ni z ati o n.

Q5. Briefly explain the major dimensions of strategic decisions? OR

Rohit Seth in an informal discussion with his friend shared that he has to move very cautiously in his organisation as the decisions taken by him have organisation wide impact and involve large commitments of resources. He also said that his decisions decide the future of his organisation. Where will you place Rohit Seth in organisational hierarchy? What are the dimensions of the decisions being taken by him?

(RTP May 2018; RTP May 2020 ) OR

Shri Alok Kumar is having his own medium size factory in Aligarh manufacturing hardware consisting handles, hinges, tower bolts and so on. He has a staff of more than 220 in his organization. One of the leading brands of Hardware seller in India is rebranding and selling the material from his factory. Shri Alok Kumar believes in close supervision and takes all major and minor decisions in the organization. Do you think Shri Alok should take all decisions himself? What should be nature of decisions that should be taken by him? (RTP May 2019) Ans.

[AUTHOR NOTE: Fi rst Ex pl ai n me a ni ng of “ St r at e gi c Deci si o n Ma ki ng” es - peci all y first 3 poi nt s of St r at e gi c Deci si o n Ma ki ng. Sec o nd, wri t e t he Fact s of Cas e, a nd t he n wri t e “ Di me nsi o ns of St r at e gi c Deci si o ns”. ]

[RTP MAY-18: As t he deci si o ns t a ke n by Ro hi t Set h have or ga ni s ati o n w i de i mpact, i nv ol ves l ar ge c o mm i t me nt s a nd have i mpli c ati o n o n t he f ut ur e, he i s at t he t op l e vel i n or ga ni s ati o nal hi er ar c hy. Thes e c har act eri sti cs al s o i ndi c at e t hat he i s t a ki ng st r at e gi c deci si o ns i n t he or ga ni s ati o n. ]

[RTP MAY-19: As o wner ma nager at t he t op l e vel i n t he c o mpa ny, Shri Al ok Ku mar s ho ul d c o nce nt r at e o n st r at e gi c deci si o ns. Thes e ar e hi g her l e vel deci si o ns havi ng or ga ni z ati o n w i de i mpli c ati o ns. ]

The major dimensions of strategic decisions are as follows:

1. Strategic decisions are likely to have a significant impact on the long-term prosperity of the firm: Ge ner all y, t he r es ul t s of st r at e gi c i mpl e me nt ati o n ar e s ee n o n a l o ng- t er m basi s a nd not i mme di at el y.

2. Strategic decisions are future oriented: St r at e gi c t hi nki ng i nv ol ves pr e di cti ng t he f ut ur e e nvi r o n me nt al c o n - di ti o ns a nd ho w t o ori e nt f or t he c ha nge d c o ndi ti o ns.

3. Strategic decisions require top-management involvement: St r at e gi c deci si o ns i nv ol ve t hi nki ng i n t ot ali t y of t he or ga ni z ati o n. He nce, pr o bl e ms c alli ng f or st r at e gi c deci si o ns r e q ui r e t o be c o nsi der e d by t he t op ma nage me nt.

4. Strategic decisions involve commitment of organizational resources: For e xa mpl e, St r at e gi c deci si o n t o l a unc h a ne w pr oj ect by a fi r m r e q ui r es all oc ati o n of h uge f unds a nd assi g n me nt of a l ar ge n u mber of e mpl oyees.

5. Strategic decisions usually have major multifunctional or multi-business consequences: As t he y i nv ol ve or ga ni z ati o n i n t ot ali t y t he y aff ect di ff er e nt s ecti o ns of t he or ga ni z ati o n w i t h var yi ng de gr ee.

6. Strategic decisions necessitate consideration of factors in the firm’s external environment: St r at egi c f oc us i n or ga ni z ati oni nvol ves ori e nti ng i t s i nt er nal e nvi r o n me nt t o t he c ha nges of e xt er nal e nvi r o n me nt.

Q6. Define strategic intent. Briefly explain the elements of strategic intent.

(RTP May 2018, RTP May 2019, RTP May 2020) Ans.

1. St r at e gi c Ma nage me nt i s defi ne d as a dy na m i c pr ocess of f or mul ati o n, i mpl e me nt ati o n, e val uati o n, a nd c o nt r ol of st r at e gi es t o r e ali z e t he or ga ni z ati o n ’ s st r at e gi c i nt e nt.

2. Strategic intent refers to purposes of what the organization strives for.

3. Senior managers must define “what they want to do” and “why they want to do”.

4. “Why they want to do” represents strategic intent of the firm.

5. Cl ari t y i n st r at e gi c i nt e nt i s e xt r e mel y i mport a nt f or t he f ut ur e s uccess a nd gr o wt h of t he e nt er pri s e, i rr es pecti ve of i t s nat ur e a nd si z e.

6. St r at e gi c i nt e nt c a n be underst oo d as t he philosophical base of strategic management. It i mpli es t he p ur pos es, whi c h a n or ga ni z ati o n e nde av ors t o ac hi e vi ng.

7. It i s a st at e me nt t hat pr ovi des a pers pecti ve of t he me a ns, whi c h will l e a d t he or ga ni z ati o n, r e ac h i t s vi si o n i n t he l o ng r un.

8. Strategic intent gives an idea of what the organization desires to attain in future.

9. It a ns wers t he q uesti o n what t he or ga ni z ati o n st ri ves or st a nds f or? It i ndi c at es t he l o ng- t er m mar ket posi ti o n, whi c h t he or ga ni z ati o n desi r es t o cr e at e or occ upy a nd t he opport uni t y f or e x pl ori ng ne w possi bili ti es.

10. St r at e gi c i nt e nt pr ovi des t he f r a me wor k w i t hi n whi c h t he fi r m wo ul d a dopt a pr e det er m i ne d di r ecti o n a nd wo ul d oper at e t o ac hi e ve st r a - t e gi c o bj ecti ves.

11. St r at e gi c i nt e nt c o ul d be i n t he f or m of vi si o n a nd m i ssi o n st at e me nt s f or t he or ga ni z ati o n at t he c or por at e l e vel.

12. It c o ul d be e x pr ess e d as t he b usi ness defi ni ti o n a nd b usi ness mo del at t he b usi ness l e vel of t he or ga ni z ati o n.

13. St r at e gi c i nt e nt i s ge ner all y st at e d i n br oa d t er ms b ut whe n st at e d i n pr eci s e t er ms i t i s a n e x pr essi o n of ai ms t o be ac hi e ve d oper ati o nall y, i.e., g oal s a nd o bj ecti ves.

Elements of Strategic Intent are:

1. Vision: Vi si o n i mpli es t he bl ue pri nt of t he c o mpa ny ’ s f ut ur e posi ti o n. It des cri bes wher e t he or ga ni z ati o n wa nt s t o l a nd. It de pi ct s t he or ga - ni z ati o n ’ s as pi r ati o ns a nd pr ovi des a gli mps e of what t he or ga ni z ati o n wo ul d li ke t o bec o me i n f ut ur e Ever y s ub s yst e m of t he or ga ni z ati o n i s r e q ui r e d t o f oll o wi t s vi si o n.

2. Mission: M i ssi o n deli ne at es t he fi r m ’ s b usi ness, i t s g oal s a nd ways t o r e ac h t he g oal s. It e x pl ai ns t he r e as o n f or t he e xi st e nce of t he fi r mi n t he s oci et y. It i s desi g ne d t o hel p pot e nti al s har e hol ders a nd i nvest ors underst a nd t he p ur pos e of t he c o mpa ny. A m i ssi o n st at e me nt hel ps t o i de nti f y, ‘ what b usi ness t he c o mpa ny undert a kes.’ It defi nes t he pr es e nt c a pa bili ti es, acti vi ti es, c ust o mer f oc us a nd r ol e i n s oci et y.

3. Business Definition: It s ee ks t o e x pl ai n t he b usi ness undert a ke n by t he fi r m , w i t h r es pect t o t he c ust o mer nee ds, t ar get mar ket s, a nd al t er nati ve t ec hnol ogi es. W i t h t he hel p of b usi ness defi ni ti o n, o ne c a n as cert ai n t he st r at e gi c b usi ness c hoi ces. Or ga ni z ati o nal r est r uct uri ng al s o de pe nds upo n t he b usi ness defi ni ti o n

4. Business Model: Busi ness mo del, as t he na me i mpli es i s a st r at e gy f or t he eff ecti ve oper ati o n of t he b usi ness, as cert ai ni ng s o ur ces of i nc o me, desi r e d c ust o mer bas e, a nd fi na nci al det ail s Ri val fi r ms, oper ati ng i n t he s a me i nd ust r y r el y o n t he di ff er e nt b usi ness mo del d ue t o t hei r st r at e gi c c hoi ce.

5. Goals and Objectives:

u

u

Thes e ar e t he bas e of me as ur e me nt.

Goal s ar e t he e nd r es ul t s, t hat t he or ga ni z ati on att e mpt s t o ac hi eve.

u On t he ot her ha nd, o bj ecti ves ar e ti me- bas e d me as ur a bl e t ar get s, whi c h hel p i n t he acc o mpli s h me nt of g oal s. Thes e ar e t he e nd r es ul t s whi c h ar e t o be att ai ne d w i t h t he hel p of a n over all pl a n, over t he parti c ul ar peri o d.

u However, in practice, no distinction is made between goals and objectives and both the terms are used interchangeably. The vi si on , m i ssi on , busi ness defi ni ti on , a nd busi ness model expl ai n t he p hil os op hy of t he or ga ni z ati o n b ut t he g oal s a nd o bj ecti ves r e pr es e nt t he r es ul t s t o be ac hi e ve d i n mul ti pl e ar e as of b usi ness.

Q7. What is Strategic Vision?

Ans.

(May 2018; 2 Marks)

1. St r at e gi c vi si o n u deli ne at es Or ga ni s ati o n ’ s as pi r ati o ns f or t he b usi ness, u pr ovi di ng a pa nor a m i c vi e w of t he posi ti o n wher e t he Or ga ni s a - ti o n i s g oi ng. ( pa nor a m i c me a ns: w i t h a vi e w of w i de ar e a)

2. St r at e gi c vi si o n poi nt s o ut a n Or ga ni s ati o n i n a parti c ul ar di r ecti o n, c hart s a st r at e gi c pat h f or i t t o f oll o wi n pr e pari ng f or t he f ut ur e, a nd mo ul ds or ga ni z ati o nal i de nti t y.

3. A St r at e gi c vi si o n i s a r oa d ma p of a c o mpa ny ’ s f ut ur e - pr ovi di ng s peci fi cs a bo ut: u t ec hnol ogy u t he c a pa bili ti es i t pl a ns t o de vel op, u t he ge ogr a p hi c a nd pr o d uct mar ket s t o be p urs ue d, u c ust o mer f oc us, u a nd t he ki nd of c o mpa ny t hat ma nage me nt i s t r yi ng t o cr e at e.

Q8. What are the Essentials of a strategic vision?

Ans.

1. The e nt r e pr e ne uri al c hall e nge i n de vel opi ng a st r at e gi c vi si o n i s t o t hi nk cr e ati vel y a bo ut ho w t o pr e par e a c o mpa ny f or t he f ut ur e.

2. For m i ng a st r at egi c vi si oni s a n exer ci s ei ni nt elli ge nt e nt r e pr e ne urs hi p.

3. A well - arti c ul at e d st r at e gi c vi si o n cr e at es e nt h usi as m a mo ng t he me mbers of t he or ga ni s ati o n.

4. The best- wor de d vi si o n st at e me nt cl e arl y ill u m i nat es t he di r ecti o n i n whi c h or ga ni z ati o n i s he a de d.

Q9. Mr. Raj has been hired as a CEO by XYZ Ltd. a FMCG company that has diversified into affordable cosmetics. The company intends to launch Feelgood brand of cosmetics. XYZ wishes to enrich the lives of people with its products that are good for skin and are produced in ecologically beneficial manner using herbal ingredients. Draft vision and mission statement that may be formulated by Raj (RTP Nov. 2019; RTP Nov. 2020 ) Ans. Feel g oo d br a nd of c os meti cs may have f oll o w i ng vi si o n a nd m i ssi o n:

Vi si o n: Vi si o n i mpli es t he bl ue pri nt of t he c o mpa ny ’ s f ut ur e posi ti o n. It des cri bes wher e t he or ga ni s ati o n wa nt s t o l a nd. Mr. Raj s ho ul d ai mt o po - si ti o n “ Feel g oo d c os meti cs” as I ndi a ’ s be a ut y c ar e c o mpa ny. It may have vi si o n t o be I ndi a ’ l ar gest be a ut y c ar e c o mpa ny t hat i mpr oves l ooks, gi ve e xt r a or di nar y f eeli ng a nd bri ng ha ppi ness t o pe opl e.

M i ssi o n: M i ssi o n deli ne at es t he fir m ’ s b usi ness, i t s g oal s a nd ways t o r e ac h t he g oal s. It e x pl ai ns t he r e as o n f or t he e xi st e nce of t he fir mi n t he s oci et y. It i s desi g ne d t o hel p pot e nti al s har e hol ders a nd i nvest ors underst a nd t he p ur pos e of t he c o mpa ny: Mr. Raj may i de nti f y m i ssi o n i n t he f oll o w i ng li nes: u

To be i n t he b usi ness of c os meti cs t o e nha nce t he li ves of pe opl e, gi ve t he m c o nfi de nce t o l e a d. u

To pr o d uce her bal c os meti cs usi ng nat ur al i ngr e di e nt s.

To pr ot ect s ki n f r o m har mf ul el e me nt s i n e nvi r o n me nt a nd s un r ays. u

Q10. What is a mission statement? State the points that may be considered while writing a mission statement of a company.

OR

What tips can you offer to write a ‘right’ mission statements? OR

Why an organisation should have a mission? What considerations are to be kept in mind while writing a good mission statement of a company?

(Nov. 2019; 5 Marks)

Ans.

1. M i ssi o n st at e me nt i s a n a ns wer t o t he q uesti o n “ Who we ar e a nd what we do” a nd he nce has t o f oc us o n t he or ga ni s ati o n ’ s pr es e nt c a pa bil - i ti es, f oc us acti vi ti es a nd b usi ness ma ke up.

2 An or ga ni s ati o n ’ s m i ssi o n st at es what c ust o mers i t s er ves, what nee d i t s ati sfi es, a nd what t y pe of pr o d uct i t off ers.

3. M i ssi o n i s a n e x pr essi o n of t he gr o wt h a mbi ti o n of t he or ga ni s ati o n.

4 A c o mpa ny ’ s m i ssi o n st at e me nt i s t y pi c all y f oc us e d o n i t s pr es e nt b usi ness s c ope- “ who we ar e a nd what we do”; m i ssi o n st at e me nt s br oa dl y des cri be a n or ga ni z ati o ns pr es e nt c a pa bili ti es, c ust o mer f oc us acti vi ti es a nd b usi ness ma ke up.

5. Or ga ni z ati o n s ho ul d have a m i ssi o n o n acc o unt of t he f oll o w i ng r e as o ns:

To e ns ur e una ni m i t y of p ur pos e w i t hi n t he or ga ni z ati o n.

u

u

u

To de vel op a basi s, or st a ndar d, f or all oc ati ng or ga ni z ati o nal r es o ur ces.

To pr ovi de a basi s f or moti vati ng t he us e of t he or ga ni z ati o n ’ s r es o ur ces.

To est a bli s h a ge ner al t o ne or or ga ni z ati o nal cli mat e u

u

To s er ve as a f oc al poi nt f or t hos e who c a n i de nti f y w i t h t he or ga ni z ati o n ’ s p ur pos e a nd di r ecti o n.

u

u

To f acili t at e t he t r a nsl ati o n of o bj ecti ve a nd g oal s i nt o a wor k st r uct ur ei nvol vi ng t he assi g n me nt of t as ks t o r es ponsi bl e el e me nt s w i t hi n t he or ga ni z ati o n.

To s peci f y or ga ni z ati o nal p ur pos es a nd t he t r a nsl ati o n of t hes e p ur pos es i nt o g oal s i n s uc h a way t hat c ost, ti me, a nd perf or ma nce par a met ers c a n be ass ess e d a nd c o nt r oll e d.

6. The f oll o w i ng poi nt s must be c o nsi der e d whil e wri ti ng a m i ssi o n st at e me nt of a c o mpa ny.

(i ) To est a bli s h t he s peci al i de nti t y of t he b usi ness - o ne t hat t y pi c all y di sti nct i t f r o m ot her si mil arl y posi ti o ne d c o mpa ni es.

(ii ) Nee ds whi c h b usi ness t ri es t o s ati sf y, c ust o mer gr o ups i t w i s hes t o t ar get a nd t he t ec hnol ogi es a nd c o mpet e nci es i t us es a nd t he acti vi ti es i t perf or ms.

(iii ) Goo d m i ssi o n st at e me nt s s ho ul d be uni q ue t o t he or ga ni s ati o n f or whi c h t he y ar e de vel ope d.

(iv ) The m i ssi o n of a c o mpa ny s ho ul d not be t o ma ke pr ofi t. Sur pl us es may be r e q ui r e d f or s ur vi val a nd gr o wt h, b ut c a nnot be m i ssi o n of a c o mpa ny.

M i ssi o n st at e me nt s ho ul d r e flect t he p hil os op hy of t he or ga ni z ati o ns t hat i s per cei ve d by t he s e ni or ma nagers. A g oo d m i ssi o n st at e me nt s ho ul d be pr eci s e, cl e ar, f e asi bl e, di sti ncti ve a nd moti vati ng.

Q11. ‘Objectives’ and ‘Goals’ provide meaning and sense of direction to organizational endeavour. Explain. (RTP Nov. 2018)

OR

Explain Goals and Objectives in brief.

Ans.

1. Busi ness or ga ni z ati o n t r a nsl at es t hei r vi si o n a nd m i ssi o n i nt o g oal s a nd o bj ecti ves.

2. As s uc h t he t er m o bj ecti ves ar e s y no ny mo us w i t h g oal s, ho we ver, s o me a ut hors ma ke a n att e mpt t o di sti ng ui s h t he t wo.

3 Goal s ar e ope n- e nde d att ri b ut es t hat de not e t he f ut ur e st at es or o utc o mes.

4. Obj ecti ves ar e cl os e- e nde d att ri b ut es whi c h ar e pr eci s e a nd e x pr ess e d i n s peci fi c t er ms

Th us, t he Obj ecti ves ar e mor e s peci fi c a nd t r a nsl at e t he g oal s t o bot h l o ng t er m a nd s hort t er m pers pecti ve.

5. All or ga ni z ati o ns have o bj ecti ves. The p urs ui t of o bj ecti ves i s a n une ndi ng pr ocess s uc h t hat or ga ni z ati o ns s ust ai n t he ms el ves. The y pr ovi de me a ni ng a nd s e ns e of di r ecti o n t o or ga ni z ati o nal e nde av o ur.

6. Or ga ni z ati o nal st r uct ur e a nd acti vi ti es ar e desi g ne d a nd r es o ur ces ar e all oc at e d ar o und t he o bj ecti ves t o f acili t at e t hei r ac hi e ve me nt.

The y al s o act as be nc h mar ks f or g ui di ng or ga ni z ati o nal acti vi t y a nd f or e val uati ng ho w t he or ga ni z ati o n i s perf or m i ng.

Q12. What

What

OR

(May 2019; 5 Marks) Ans. Obj ecti ves, t o be me a ni ngf ul t o s er ve t he i nt e nde d r ol e, must poss ess t he f oll o w i ng c har act eri sti cs:

1. The y s ho ul d be c o ncr et e a nd s peci fi c.

2. The y s ho ul d be me as ur a bl e a nd c o nt r oll a bl e.

3. The y s ho ul d be f acili t ati ve t o war ds ac hi e ve me nt of m i ssi o n a nd p urpos e.

4. Di ff er e nt o bj ecti ves s ho ul d c orr el at e w i t h e ac h ot her.

5. The y s ho ul d be r el at e d t o a ti me f r a me.

6. The y s ho ul d be c hall e ngi ng.

7. The y s ho ul d pr ovi de t he basi s f or st r at e gi c deci si o n- ma ki ng.

are the Characteristics of Objectives?

are the characteristics which must be possess by objectives, to be meaningful to serve the intended role?

8. The y s ho ul d pr ovi de st a ndar ds f or perf or ma nce a ppr ai s al.

9. Obj ecti ves s ho ul d defi ne t he or ga ni z ati o n ’ s r el ati o ns hi p w i t h i t s e nvir o n me nt.

10. Obj ecti ves s ho ul d be s et w i t hi n t he c o nst r ai nt s of or ga ni s ati o nal r es o ur ces a nd e xt er nal e nvi r o n me nt.

Q13. Present a diagrammatic representation of a Strategic Management model. (Nov. 2018; 2 Marks) OR

With the help of a model explain strategic management process. (RTP Nov. 2019)

Ans. I de nti f yi ng a n or ga ni z ati o n ’ s vi si o n, m i ssi o n, g oal s a nd o bj ecti ves, i s t he st arti ng poi nt f or st r at e gi c ma nage me nt pr ocess.

The st r at e gi c ma nage me nt pr ocess i s dy na m i c a nd c o nti n uo us.

A c ha nge i n a ny o ne of t he maj or c o mpo ne nt s i n t he mo del c a n necessi t at e a c ha nge i n a ny or all of t he ot her c o mpo ne nt s. For i nst a nce: u a s hi ft i nt he ec o no my c o ul d r e pr es e nt a maj or opport uni t y a nd r e q ui r e a c ha nge i n l o ng- t er m o bj ecti ves a nd st r at e gi es;

Ther ef or e, st r at e gy f or mul ati o n, i mpl e me nt ati o n, a nd e val uati o n acti vi ti es s ho ul d be perf or me d o n a c o nti n ual basi s, not j ust at t he e nd of t he ye ar or s e m i - a nn uall y. The st r at e gi c ma nage me nt pr ocess ne ver r e all y e nds.

The st r at e gi c ma nage me nt pr ocess c a n best be st udi e d a nd a ppli e d usi ng a mo del. Ever y mo del r e pr es e nt s s o me ki nd of pr ocess. The mo del ill ust r at e d i n t he Fi g ur e: St r at e gi c Ma nage me nt Mo del i s a w i del y acce pt e d, c o mpr e he nsi ve.

Envi r o n me nt al Anal ysi s

Devel op Vi si o n M i ssi o n, a nd Obj ecti ve

Ge ner at e, Anal ys e a nd s el ect St r at egi es

Or ga ni s ati o n Appr ai s al

Anal ysi s

I mpl e me nt St r at egi es

St r at egi c Eval uati o n a nd Co nt r ol

I mpl e me nt ati o n

Figure : Strategic Management Model

Eval uati o n

Thi s mo del li ke a ny ot her mo del of ma nage me nt does not g uar a nt ee s ur es hot s uccess, b ut i t does r e pr es e nt a cl e ar a nd pr acti c al a ppr oac h f or f or mu - l ati ng, i mpl e me nti ng, a nd e val uati ng st r at e gi es. Rel ati o ns hi ps a mo ng maj or c o mpo ne nt s of t he st r at e gi c ma nage me nt pr ocess ar e s ho wn i n t he mo del Ge ner all y, t her e i s gi ve- a nd- t a ke a mo ng hi er ar c hi c al l e vel s of a n or ga ni z a - ti o n. Ma ny or ga ni z ati o ns c o nd uct f or mal meeti ngs s e m i - a nn uall y t o di s c uss a nd up dat e t he fir m ’ s vi si o n/ m i ssi o n, opport uni ti es /t hr e at s, st r e ngt hs / we a k ness es, st r at e gi es, o bj ecti ves, poli ci es, a nd perf or ma nce. Cr e ati vi t y f r o m parti ci pa nt s i s e nc o ur age d i n meeti ng.

Goo d c o mmuni c ati o n a nd f ee dbac k ar e nee de d t hr o ug ho ut t he st r at e gi c ma nage me nt pr ocess.

Q14. Describe the Stages in Strategic Management in brief.

Ans. Strategic management involves the following stages:

1. De vel opi ng a st r at e gi c vi si o n a nd f or mul ati o n of st at e me nt of m i ssi o n, g oal s a nd o bj ecti ves.

2. Envi r o n me nt al a nd or ga ni z ati o nal a nal ysi s.

3. For mul ati o n of st r at e gy.

4. I mpl e me nt ati o n of st r at e gy.

5. St r at e gi c e val uati o n a nd c o nt r ol

Q15. To convert strategic plans into actions and results, a manager must be able to direct organizational change, motivate people, build and strengthen company competencies and competitive capabilities, create a strategy-supportive work climate, and meet or beat performance targets.

(RTP Nov. 2018) OR

Describe the principal aspects of strategy-execution process, which are included in most situations. (May 2018; 5 Marks)

Ans. I n most si t uati o ns, st r at e gy- e xec uti o n pr ocess i ncl udes t he f oll o w i ng pri nci pal as pect s:

u

De vel opi ng b udget s t hat st eer a mpl e r es o ur ces i nt o t hos e acti vi ti es cri ti c al t o st r at e gi c s uccess.

u St affi ng t he or ga ni z ati o n w i t h t he nee de d s kill s a nd e x perti s e, c o ns ci o usl y b uil di ng a nd st r e ngt he ni ng st r at e gy- s upporti ve c o mpet e nci es a nd c o mpeti ti ve c a pa bili ti es, a nd or ga ni zi ng t he wor k eff ort.

u Ens uri ng t hat poli ci es a nd oper ati ng pr oce d ur es f acili t at e r at her t ha n i mpe de eff ecti ve e xec uti o n.

u

Usi ng t he best- k no wn pr acti ces t o perf or m c or e b usi ness acti vi ti es a nd p us hi ng f or c o nti n uo us i mpr ove me nt.

u I nst alli ng i nf or mati o n a nd oper ati ng s yst e ms t hat e na bl e c o mpa ny pers o nnel t o bett er c arr y o ut t hei r st r at e gi c r ol es day i n a nd day o ut.

u

u

u

Moti vati ng pe opl e t o p urs ue t he t ar get o bj ecti ves e ner geti c all y.

Cr e ati ng a c o mpa ny c ul t ur e a nd wor k cli mat e c o nd uci ve t o s uccessf ul st r at e gy i mpl e me nt ati o n a nd e xec uti o n.

Exerti ng t he i nt er nal l e a ders hi p nee de d t o dri ve i mpl e me nt ati o n f orwar d a nd kee p i mpr ovi ng st r at e gy e xec uti o n. Whe n t he or ga ni z ati o n e nc o unt ers st u mbli ng bl oc ks or we a k ness es, ma nage me nt has t o s ee t hat t he y ar e a ddr ess e d a nd r ecti fi e d q ui c kl y.