Institute of Chartered Financial Analysts of India %28ICFAI%29 University 2007 C.A Accounts -Pcc--07- %E2%80%93 6 %3A INFORMATION TECHNOLOGY AND STRATEGIC MANAGEMENT - Question Paper

PAPER – six : info TECHNOLOGY AND STRATEGIC MANAGEMENT

STRATEGIC MANAGEMENT

Attempt all ques..

1. State with reasons which of the subsequent statements are correct/incorrect (Attempt any
three statements):
(a) Retrenchment strategy refers to removal of employees from job through the process
of reorganisation.
(b) 6 sigma is a technique manage the behaviour of groups in organisations.
(c) Strategy is partly proactive and partly reactive
(d) Objectives are open ended and goals are close ended. (2 × three = six Marks)

2. Briefly ans the subsequent ques. (any two) in 2-3 phrases every.
(a) What is social marketing?
(b) elaborate key success factors?
(c) What is corporate culture? (2 × two = four Marks)

3. Is competition good or bad? discuss Porter’s 5 forces model. (10 Marks)

4. What do you understand by total quality management? explain the principles guiding it.
(10 Marks)

5. Case Study
Sweet Drinks Ltd is a drinks company whose core business is manufacturing and selling
soft drinks to 80,000 outlets throughout India. The business of the company is good with
annual turnover exceeding 3 billon of rupees. Profits are good and shareholders are
often rewarded with lucrative dividends and bonuses.
Four years back the company has diversified into the alcoholic drinks industry and has
taken-over 2 small breweries located in western India. The company has also
diversified into hotels with purchase of twenty-five hotels of three/four star category
across the country. To its advantage the company has been able to find a monopoly for
the sale of its soft drinks in its hotels and is beginning to establish itself as a brand name
in the brewery industry.
Part of the strategy of the company is to continue on to purchase hotels, particular by
targeting National Capital Region of Delhi where tourism is likely to pick up with the
forthcoming Commonwealth Games . The company also intends to construct a 5 star
hotel in Gurgoan to take tax advantage announced recently by the finance ministers.
every thing was going on well until recently, when a Public Interest Litigation from NGO
accused the company of indulging in surrogate advertising of its brewery products. In fact
the company has similar brand names for its soft drinks and brewery products. This
triggered a lot of protests and demonstrations against the company. newsprints were
flooded with the articles against the company. There were also a few demonstrations and
a few small incidents of stone pelting in a few of its hotels.

(a) explain the factors related to SWOT analyses for the company? (8 Marks)

(b) discuss how Sweet Drinks Ltd is achieving synergy? (5 Marks)

(c) discuss the nature of diversification adopted by the company. (7 Marks)

Earning:   Approval pending.