Strategic management CAPIII December 2011 question paper.

OTP

Maximum Marks - 100

Total No. of Questions - 7

Total No. of Printed Pages -2

Read the following and answer the questions accordingly:

ABC Battery Company was established in Kathmandu about 20 years ago. Its range of main products is Sun Battcry Moon Battery, Light Battery and Long batterv brands. Initially, the total investment made was Rs. 30 million out of which 79 percent was foreign direct investment of Indian Batten Company (IBC) and 21 percent was of local shareholders of Nepal. The average annual turnover was Rs. 80 million in 2007. Rs. 110 minion in 2009, and is expected to reach 130 million in 2011. It was making 30% profit on investment ^:n 20J0 and the trend shows gradual increment of profit for last 10 years. It was payng corporate and other taxes to the Government of Nepal. Currently 300 operation level staff are working^ and it is recognized as a reputed manufacturing firm of Nepal. The technology and management are handled by foreign _ investors as major shareholders. However. participation while making major decisions is common practice in the firm.

In order face competition, especially with Chinese Products available in cheap rate, the top management of the company, after portfolio analysis., decided to extend its .product and market so that per unit cost can be lowered and large share of market can be covered. Consolidation- product development, and market penetration strategies are being considered.

The company hired 50 new staff for manufacturing new brand of Batteries: Young Battery. Brave Battery, and Sun light Battery. The company has altogether seven different brands of products and needs aggressive marketing. It published vacancies in national newspapers, the Kathmandu Post and the Himalayan Times, for young and dynamic CEQ for effective strategy formulation and implementation. The company expects that the new CEO would craft proper strategy to gain competitive advantage "to become Leader in the industry.

In light of this scenario, answer the following questions:

1. What are the major strengths and weaknesses of this firm'.' Discuss. ^'
   
   1. What strategies should the newly appointed CEO craft to achieve strategic advantage? Suggest the best strategy- tor this firm with sufficient logic,
      

   2 i What is strategic management? Discuss various levels strategy. 3+5=8)
   

   b) Compare an organization s mission with its objectives
   

1. What steps need to be followed to identifv core competencies of a business firm?
   
2. What are the various steps for internal analysis of a firm? 8 7
   

   
   

3. Discuss various elements of the general environment.
   
   1. BCG portfolio matrix is a widely used tool to assess the suitability of strategy. Explain
      

   
   

   a) Define strategy evaluation. Discuss difficulties generally encountered in the process of strategy evaluation. (3+4=7)
   

   b) Explain portfolio analysis and illustrate General Electric Business Screen"

   
   

4. What are the alternative directions of strategic options?
   
5. Explain different techniques of strategic decision making