EIILM UNIVERSITY SIKKIM

SPECIAL EXAMINATIONS, SEPTEMBER -2011 MASTER OF BUSINESS ADMINISTRATION, SEMESTER-III, YEAR- 2nd STRATEGIC MANAGEMENT Duration -3 Hrs Note: 1. Attempt any five questions. 2. All questions carry equal marks Max Marks: 60

1. Write short notes on Benefits of Strategic Management 2. Explain about Structure for development programmes. 3. What are some of the basic questions that have to be answered before the management decides about the structure suitable for the strategy chosen? 4. Much of the business environment today is dynamic in nature. What does it mean for organizational management and how can the latter go about scanning the environment? 5. The Universal Inner Structure proposition talks about Selflessness as one of the characteristics of effective/successful leaders. But some really wonder how can there be selfless leaders when all around in society there is an environment of selfishness, greed and avarice? Citically examine the statement. 6. Based on the extremes of "Use of Authority by the Leader" and "Area of Freedom for Subordinates", present in a chart the spectrum of leadership styles. Discuss the attributes of successful leaders. 7. Discuss the dynamics of buyer-seller relationship in technology transactions. As a buyer of technology, what care would you take to see that the transaction is to your advantage? 8. Enumerate the various frameworks of social audit that have been developed and explain any one of them.

ANSWERS

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Strategic management is a process in which a business analyzes its current practices then formulates and implements a strategy for future development. The goal of strategic management is to gain the competitive edge in the marketplace and to create long-term solvency for the company. Utilizing strategic management creates necessary flexibility for a business to navigate market changes with authority and confidence.

Competitive Advantage

Gaining the competitive advantage requires strategic management. Business competition image by Christophe Schmid from Fotolia.com Achievement of competitive advantage is the primary goal of strategic management. Competition invariably means that there is more than one provider for services or products. Although adjusting prices creates a temporary competitive advantage, it does not differentiate the competing services. There are many factors that can be adjusted to increase competitiveness: customer service, public relations, type of service or product, method of product delivery, marketing and social networking, caliber and dedication of employees, and product quality. Utilizing strategic management to create a competitive advantage makes one business' product stand out. Netflix DVD by mail rental service exemplifies how one company re-invented the DVD rental service, changed the DVD rental market, and gained the competitive advantage. Creating the competitive advantage benefits a single business, but it also benefits society by providing a better product or service, enhancing consumer and/or business technology, and creating a progressive marketplace.

Financial Advantage

Measure the success of strategic management though financial solvency. measuring financial success image by blaine stiger from Fotolia.com Using strategic management to enhance market competitiveness benefits the business' bottom line. Slashing prices increases a business' competitive edge, but it also decreases the profitability of the products and services. A company must

analyze the entire scope of their business practices to create the best management strategy and leverage the highest financial gain. The financial benefits of strategic management come from various areas such as: acquisition of cheaper resources, reducing production and service costs, providing efficient and helpful customer service, creative and focused marketing campaigns, and building brand recognition. Using strategic management to increase sales volume and customer satisfaction while decreasing costs creates a financial advantage.

Organizational Advantage

Use strategic management to acquire and keep a happy and motivated workforce. technology computer image by Andrey Kiselev from Fotolia.com "According to the United States General Office of Accounting's report on strategic management of human capital, people are the most valuable foundation of every business." Strategic management provides tools to manage a business' human capital and create a healthy and positive culture that helps the business thrive. Happy people create a happy environment, which in turn creates a happy customer. Utilizing strategic management to create a better workplace creates a better workforce. Every company invests time and training into their employees, but these are only the rudimentary necessities for creating a healthy and productive work environment. Increased employee satisfaction comes from various arenas: employee empowerment and recognition for accomplishments, competitive and livable salaries, health insurance policies, childcare programs, flexible work schedules, extended vacation or sabbaticals, continued education and training programs, and employee events or sports teams. Using strategic management with human capital is the foundation to creating organizational advantage in a successful business. 2.