M.B.A-M.B.A 2nd Year Paper - VI : BUSINESS POLICY AND STRATEGIC MANAGEMENT (Acharya Nagarjuna University - Center for Distance Education, Guntur, Andhra Pradesh-2013)

M.B.A. DEGREE EXAMINATION, DEC. - 2013
Second Year
Paper - VI : BUSINESS POLICY AND STRATEGIC MANAGEMENT

Time : 03 Hours                                                                    Maximum Marks : 80

SECTION-A (3 × 5 = 15)

Answer any Three of the following
1) a) Brain storming.
b) Mature industry.
c) Core Competency.
d) Behavioural issues in strategy implementation .
e) Merger.
f) Operational strategy.

SECTION-B (3 ×15 = 45)
Answer any Three of the following

2) Which are the generic building blocks of competitive advantage?

3) Identify economic variables that often represent opportunities and threats for
companies.

4) Outline various methods of corporate evaluation.

5) State the steps involved while undertaking turn around strategy.

6) Decision bearing on the allocation of resources have vital significance in the
process of strategy implementation.

7) How does finance functional strategies help business?

SECTION-C (15)
Compulsory
8) Analyse the following case and answer the questions given at the end:

Twinkle fertilisers established a factory in Tamilnadu near Chennai after
obtaining an industrial licence from the Central Government. It entered into
collaboration with a UK firm known for quality and social concern. The market
of the company comprised Karnataka, Andhra Pradesh and Kerala. It was
assured of feed stocks by government corporations and ministries. A well known
Japanese contracting company built the plant. The project cost was Rs. 80 crores.
After one year of its operations, the villagers nearly complained that
ammonia effluents were polluting their wells and paddy fields. The company
said that the complaints were exaggerated and when verified it was found that
the effluents did not contain any unhealthy trends.
The surrounding villagers, backed by major political parties intensified
agitation. The state government, to pacify the political parties, asked the
company to set up an ammonia stripping plant or make alternative arrangements
for disposal of ammonia. The CEO of the company approached the central
government and sought its intervention stating that his company is victimised by
politics.
The central government has sent a directive advising state government to go
cautiously on the issue, and avoid closure of the company as it would be a
serious loss to the economy. It suggested that the company be given more time to
control the pollution, if any.
The company announced that it would set up a Rs.20 lakh new treatment
plant when it closed for maintenance work. Industry lobby has suggested,
confidentially to the CEO, he should please politicians by paying bribe of Rs.5
lakhs. A consultancy group suggested that the company should undertake some
steps to satisfy villagers like employment to locals and setting up school and
hospital and a stadium for sports.
Examine the social responsibility of CEO in this context. If you were CEO,
what would you do?