Imt 56

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IMT-56
Notes:
a. Write answers in your own words as far as possible and refrain from copying from the text
books/handouts.
b. Answers of IstSet Before a product is advertised, a thorough market research is conducted in
order to know the reactions of various consumers about the product. There are various advantages
and disadvantages of TV advertising. They are:
(Part-A), IIndSet (Part-B), IIIrdSet (Part – C) and Set-IVth(Case Study) must be sent together.
c. Submit the assignments in IMT CDL H.O. along with the assignments Question Papers for
evaluation .
d. Only hand written assignments shall be accepted.
A. First Set of Assignments 5 Questions, each question carries 1 marks.
B. Second Set of Assignments 5 Questions, each question carries 1 marks.
C. Third Set of Assignments 5 Questions, each question carries 1 marks. Confine your answers to
150 to 200 Words.
D. Forth Set of Assignments Two Case Studies : 5 Marks. Each case study carries 2.5 marks.
SECTION - A
Q. 1. Define strategy, What are the common elements in successful strategy.
Answer: A good business strategy steers clear of destructive competition. It has to focus on
uniqueness, geared to delivering unique value to the important needs of target customers. Strategy
should not be confused with aspiration. For example, "to become a leader in technology" is as a
goal, not a strategy. A well-formulated business
Q. 2. Explain the multiple roles of strategy in a business firm.
Answer:Business people often hear the term "strategy" discussed in meetings with co-workers,
clients and other stakeholders. Yet there is considerable confusion about the meaning of the word
and how the development of a business strategy can be used to guide the company forward. A
business strategy helps marshal all of the company's resources toward a common goal.Business
strategies help to keep a company's focus on competition and profit improvement.

Roles of strategy in a business firm are:
Q. 3. Describe Value; does it have an importance in strategic business decisions?
Answer:A definition of value is, at a simplistic level, to 'do no harm'. An understanding of the
definition of business values and values in decision making is important in today's business
environment. Once you've gained that understanding, it is necessary to consider the impact of
valuable decision making and problem
Q. 4. Explain the meaning of profits, what are the main determents of industry profit?
Answer: The surplus remaining after total costs are deducted from total revenue, and the basis on
which tax is computed and dividend is paid. It is the best known measure of success in an enterprise.
Profit is reflected in reduction in liabilities
Q. 5. Describe the role of organizational capabilities in strategy formulation.
Answer: Strategy is concerned with matching a firm’s resources and capabilities to the opportunities
that arise in the external environment. So far, the emphasis of the book has been on the
identification of profit opportunities in the external environment of the firm. In this chapter, our
emphasis shifts from the interface
SECTION – B
Q. 1. Identify the circumstances in which a firm can create a competitive advantage over a rival.
Answer:Competitive advantage is what enables a business organization to thrive. It is the objective
of strategy. It is the combination of elements in the business model which enables a business to
better satisfy the needs in its environment, earning economic rents in the process.
Q. 2. What do you understand by the word Innovation, what mechanisms are effective in
protecting innovations.
Answer:The process of translating an idea or invention into a good or service that creates value or
for which customers will pay. To be called an innovation, an idea must be replicable at an
economical cost and must satisfy a specific need. Innovation involves deliberate application of
information, imagination and initiative in deriving greater or different values from resources, and
includes all processes by which new ideas
Q. 3. Define vertical integration, what are the different types of vertical relationships.
Answer:When a company expands its business into areas that are at different points on the same
production path, such as when a manufacturer owns its supplier and/or distributor. Vertical

integration can help companies reduce costs and improve efficiency by decreasing transportation
expenses and reducing turnaround time, among other advantages. However, sometimes it is more
effective for a company to rely on the
Q. 4. Explain the benefits of a global strategy for a multinational corporation,
Answer: An enterprise operating in several countries but managed from one (home) country.
Generally, any company or group that derives a quarter of its revenue from operations outside of its
home country is considered a multinational corporation.
There are four categories of multinational corporations:
(1)A multinational, decentralized
Q. 5. What is diversification; explain the various types of diversification.
Answer: Diversification is a risk management technique a company uses that makes use of a wide
variety of investments within the company. The under lying principle behind this system is that
asserts that different kinds of investment
SECTION – C
Q. 1. Describe a multibusiness firm, what are the problems these firms face in strategy
implementation.
Answer: Recent evolution of strategic analysis and choice has expanded on the core
competencynotion to focus on a series of fundamental questions that multi-business companies
shouldaddress in order to make diversification work.
Q. 2. What do you understand by the external environment, how does it help in building up a firms
strategy .
Answer: The external environment of an organization are those factors outside the company that
affect the company's ability to function. Some external elements can be manipulated by company
marketing, while others require the organization to make adjustments. Monitor the basic
components of your company's external environment, and keep a close watch at all times.
Q. 3. The economic world is dynamic, how does a company manage in economic crisis.
Answer: Flexibility and openness are the characteristics and pervasive principles of Estonia's
economic policy. Estonia is an e-country with a favourable business climate and cost advantages that
is also open to growth.
Incentives – how risk and reward are shared; how people behave if they actin their own perceived
best interests given the structure of pecuniary

Q. 4. Costs have a strong implication in having a competitive advantage do you agree with this
statement, what are the sources of cost advantage .
Answer:National prosperity is created, not inherited. It does not grow out of a country’s natural
endowments, its labor pool, its interest rates, or its currency’s value, as classical economics insists.
A nation’s competitiveness depends on the capacity of its industry to innovate and upgrade.
Companies gain advantage against the world’s best competitors because of pressure and challenge.
They benefit from having strong domestic rivals,
Q. 5. Explain differentiation, what advantages does a firm accrue in differentiation.
Answer:Differentiation is an operation that allows us to find a function that outputs the rate of
change of one variable with respect to another variable. Your differentiation strategy is an
integrated set of action designed to produce or deliver goods or services that customers perceive as
being different in ways that are important to them. It
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CASE STUDY – 1
Questions
Q. 1.What were the reasons for Lehman brothers bankruptcy?
Answer: The bankruptcy of Lehman Brothers was a result of the investment bank’s exposure to the
2007-2010 financial crisis. In fact, the demise of the investment bank would come to symbolize the
crisis. Therefore, in order to understand the Lehman Brothers’ bankruptcy, a consummate
understanding of the 2007-2010 financial crisis is requisite. As such, an examination of crisis will
serve as introductory.
Q. 2.What lessons would you learn from the Lehman brothers bankruptcy?
Answer: On September 15 five years ago, the world awoke to a financial calamity: One of the
nation’s largest investment banks was collapsing, unable to meet its obligations. The Lehman
Brothers bankruptcy, in turn, triggered the near destruction of the entire financial system and the
worst recession since the Great
CASE STUDY - 2
Questions
Q. 1. What was the type of strategy Tata’s adopted during the launch of Nano.

Answer: The introduction of the Nano received media attention due to it's targetedlow price. The
car is expected to boost the Indian Economy, create entrepreneurial-opportunities across India as
well as expand the Indian car market by 65%. RatanTata-Chairman of the Tata Group envisioned the
car and Tata Motors-who hasdescribed it as an eco-friendly
Q. 2.pl help the company in working out a suitable strategy for the success of the car.
Answer:In developing ‘suitable strategy’, it is useful to distinguish between three forms of
international expansion that arise from a company’s resources, capabilities and current international
position. If the company is still mainly focused on its home markets, then its strategies outside its
home markets can be seen as international. For example, a dairy company might sell some of its
excess milk and cheese supplies outside its home country. But its main strategic focus is still directed
to the home market.
Q. 3.by using a SWOT analysis outline the failure of the car in the Indian markets.
Answer: Conducting a SWOT analysis of your business is actually kind of fun. It won’t take much
time, and doing it forces you to think about your business in a whole new way. The point of a SWOT
analysis is to help you develop a strong business strategy by making sure you’ve considered all of
your business’s strengths and
Q. 4.what in your opinion is the future of such cars in Indian markets.
Answer: Rapidly growing populations and rising incomes will drive an enormous rise in car use and
greenhouse gas emissions across Latin America, Africa, the Middle East and Asia by 2050. But
deliberate policy choices about urban planning, road building and the provision of public transport
will determine whether the increase is manageable or becomes a nightmare for congestion and
climate change.
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Imt 56

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