GM14
Strategic Management
Assignment - I
Assignment Code: 2015GM14A1 Last Date of Submission: 15th May 2015
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
Ques. 1 What is Gap Analysis. Explain how Gap Analysis can be helpful in formulating a firm’s
strategy.
Ques. 2 Explain the concept of Benchmarking. Explain how Benchmarking can be effectively
utilized in evaluate a firms Strengths and Weakness.
Ques. 3 How in your view policies aid strategy implementation? Illustrate your answer with
examples from the corporate world.
Ques. 4 Collect at least ten vision and mission statements of different companies. Choose at
least two companies each from manufacturing and service sector.
Section-B
CASE STUDY
The name Campbell Soup is closely linked with its well-known soups, and for many years they have been the source of the company’s profitability. However, during the 1980’s the company’s fortunes declined as its top executives failed to manage the business and keep it abreast of changes in the environment. While competitors such as Heinz and Nestle were innovating products and introducing new cost saving machinery Campbell was content to do business the way it had always done, even though its costs were rising and its sales were stagnant. This state of affairs changed in 1990 when David W. Johnson arrived from Gerber Products to revitalize the company.
Johnson moved immediately to reduce costs and to increase profits. He closed twenty inefficient plants, including Campbell’s famous multistory Camden, New Jersey , factory where it had made soup in the traditional way in larger copper pans. All these actions were part of his turnaround strategy to move Campbell back to a hold-and-maintain position in the food industry in order to redeploy its resources so that it could compete for market share against its more efficient rivals. His actions were successful, and the company’s stock price doubled in one year as profits rebounded.
Although analysts have applauded his efforts, they became concerned that Johnson might be pursuing his cost-cutting strategy a little too vigorously and at his expense of new-product development. Normally a hold-and-maintain strategy includes investing resources in developing new products that build and maintain market share. However, Johnson killed many of the company’s new product lines because they were unprofitable and seemed reluctant to invest much in new product development. It soon became clear that the pause in product development was just to give Johnson and his top management team time to study the situation carefully. By 1996 Campbell was making record profits and was once again in a very strong situation after having brought out a large number of successful new products.
Questions:
1. Discuss the reasons for the dwindling fortunes of the company during 1980’s
2. What strategies did Johnson pursue to turnaround the company?
3. When do you think it is appropriate to pursue the hold-and-maintain strategy?
GM14
Strategic Management
Assignment - II
Assignment Code: 2015GM14A2 Last Date of Submission: 15th May 2015
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
Ques. 1 Strategic control focuses on monitoring and evaluating the strategic management
process to ensure that it function in the right direction. Discuss the purpose of
strategic control and its processes.
Ques. 2 Both Narayana Murthy and Bill Gates have effectively relinquished their positions in the
respective organizations they helped build to today’s status. However, given their vast
knowledge and leadership qualities the firm would have liked to have them going for
ever. Do you think it is ethical for these great leaders to step out at a stage when they
were possibly most needed.
Ques. 3 What are the ethical issues which might arise in the course of the exploitation of the
brand name ? Which stake holder groups are affected by these issues ? How do such
stake holders stand to gain or loose ?
Ques. 4 Explain the role of the Board of Directors in an Organizations. Explain the different
theories by which a firm can decide the number of independent directors on the board.
Section-B
A generation ago, generally people in their 50s and 60s suffered from cardiac diseases. These days, due to greater work stress and the fast pace of life, anyone who has crossed his mid-thirties, is at risk. Since the 1980s cases of cardio-vascular diseases have been on the rise. Many young people have died of cardiac arrest.
At this time, the “pacemaker” a product of modern technology, turned to be a blessing to thousands of people suffering from cardio-vascular problems. This device has a timer that rests itself every time the patient’s heart beats. If the heart does not beat at normal intervals, the pacemaker automatically gives a stimulus to the heart, making it beat. Cardiotech Ltd., started manufacturing these devices in 1975, when the pacemaker technology was still in its infancy. Cardiotech got pacemaker transistors from Micro Electronics Ltd., (MEL), also a manufacturer of various electronic devices used in medical treatment including pacemaker.
Although the pacemaker was an innovative product, it involved several risks. When doctors implant a pacemaker, the normal functioning of the heart is disabled, and it depends completely on the pacemaker. Thus, if the pacemaker fails, the heart stops functioning, which leads to the patient’s death. Moreover, the doctors at that time were not very adept at installing pacemakers- delicate device. In one incident, a patient yawned deeply, due to which the wire in the delicate pacemaker got a pull, and the patient died. Several cases of death to failure of the transistor in the pacemaker were also reported.
Under such circumstances MEL called a board meeting to reconsider its contract of supplying transistors to Cardiotech.
The Board felt that these incidents were an indication of a major lawsuit awaiting Cardiotech, and Micro Electronics would also be held liable, as it supplied the transistors. The Board decided to stop supplying transistors to Cardiotech. When this was conveyed to Cardiotech’s representative, he has “You cant stop selling transistors to us. You are our sole supplier, as other suppliers have already stopped supplying, for the same reason. If you also stop the supply now we would have to exit this business, and there would be no pacemaker manufacturer left. Without pacemakers people’s lives will be at a risk. This make the Board rethink its decision. The directors had various opinions on this issue. One of them bluntly said. “It is none of our problem. We do not get enough margins from this sale to take such risk. It is high time that we got out of this contract before a lawsuit catches us”. Another people asked, “Don’t we have an ethical obligation to sell the transistors to the pacemaker company?” A nominee director objected strongly to this statement and said, “Why should we be the sole suppliers to Cardiotech? We need not rethink our decision to stop supplying to Cardiotech, as our only obligation is to our shareholders.” The chairman of the Board decided to put an end to this discussion, as situation was going out of control. He interrupted the discussion by saying “I think it’s time for us to work out a solution to this problem. I hope our final decision would be in the interest of all our stakeholders.
Questions:
1. Do you think that there is any ethical element in MEL decision to stop supplying transistors to Cardiotech? Justify your answer.
2. “Why should we be the sole suppliers to Cardiotech? We need not rethink our decision to stop supplying to Cardiotech, as our only obligation is to our shareholders” Do you support this opinion of the nominee director? What could be an ethical solution to this problem?
Strategic Management
Assignment - I
Assignment Code: 2015GM14A1 Last Date of Submission: 15th May 2015
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
Ques. 1 What is Gap Analysis. Explain how Gap Analysis can be helpful in formulating a firm’s
strategy.
Ques. 2 Explain the concept of Benchmarking. Explain how Benchmarking can be effectively
utilized in evaluate a firms Strengths and Weakness.
Ques. 3 How in your view policies aid strategy implementation? Illustrate your answer with
examples from the corporate world.
Ques. 4 Collect at least ten vision and mission statements of different companies. Choose at
least two companies each from manufacturing and service sector.
Section-B
CASE STUDY
The name Campbell Soup is closely linked with its well-known soups, and for many years they have been the source of the company’s profitability. However, during the 1980’s the company’s fortunes declined as its top executives failed to manage the business and keep it abreast of changes in the environment. While competitors such as Heinz and Nestle were innovating products and introducing new cost saving machinery Campbell was content to do business the way it had always done, even though its costs were rising and its sales were stagnant. This state of affairs changed in 1990 when David W. Johnson arrived from Gerber Products to revitalize the company.
Johnson moved immediately to reduce costs and to increase profits. He closed twenty inefficient plants, including Campbell’s famous multistory Camden, New Jersey , factory where it had made soup in the traditional way in larger copper pans. All these actions were part of his turnaround strategy to move Campbell back to a hold-and-maintain position in the food industry in order to redeploy its resources so that it could compete for market share against its more efficient rivals. His actions were successful, and the company’s stock price doubled in one year as profits rebounded.
Although analysts have applauded his efforts, they became concerned that Johnson might be pursuing his cost-cutting strategy a little too vigorously and at his expense of new-product development. Normally a hold-and-maintain strategy includes investing resources in developing new products that build and maintain market share. However, Johnson killed many of the company’s new product lines because they were unprofitable and seemed reluctant to invest much in new product development. It soon became clear that the pause in product development was just to give Johnson and his top management team time to study the situation carefully. By 1996 Campbell was making record profits and was once again in a very strong situation after having brought out a large number of successful new products.
Questions:
1. Discuss the reasons for the dwindling fortunes of the company during 1980’s
2. What strategies did Johnson pursue to turnaround the company?
3. When do you think it is appropriate to pursue the hold-and-maintain strategy?
GM14
Strategic Management
Assignment - II
Assignment Code: 2015GM14A2 Last Date of Submission: 15th May 2015
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
Ques. 1 Strategic control focuses on monitoring and evaluating the strategic management
process to ensure that it function in the right direction. Discuss the purpose of
strategic control and its processes.
Ques. 2 Both Narayana Murthy and Bill Gates have effectively relinquished their positions in the
respective organizations they helped build to today’s status. However, given their vast
knowledge and leadership qualities the firm would have liked to have them going for
ever. Do you think it is ethical for these great leaders to step out at a stage when they
were possibly most needed.
Ques. 3 What are the ethical issues which might arise in the course of the exploitation of the
brand name ? Which stake holder groups are affected by these issues ? How do such
stake holders stand to gain or loose ?
Ques. 4 Explain the role of the Board of Directors in an Organizations. Explain the different
theories by which a firm can decide the number of independent directors on the board.
Section-B
A generation ago, generally people in their 50s and 60s suffered from cardiac diseases. These days, due to greater work stress and the fast pace of life, anyone who has crossed his mid-thirties, is at risk. Since the 1980s cases of cardio-vascular diseases have been on the rise. Many young people have died of cardiac arrest.
At this time, the “pacemaker” a product of modern technology, turned to be a blessing to thousands of people suffering from cardio-vascular problems. This device has a timer that rests itself every time the patient’s heart beats. If the heart does not beat at normal intervals, the pacemaker automatically gives a stimulus to the heart, making it beat. Cardiotech Ltd., started manufacturing these devices in 1975, when the pacemaker technology was still in its infancy. Cardiotech got pacemaker transistors from Micro Electronics Ltd., (MEL), also a manufacturer of various electronic devices used in medical treatment including pacemaker.
Although the pacemaker was an innovative product, it involved several risks. When doctors implant a pacemaker, the normal functioning of the heart is disabled, and it depends completely on the pacemaker. Thus, if the pacemaker fails, the heart stops functioning, which leads to the patient’s death. Moreover, the doctors at that time were not very adept at installing pacemakers- delicate device. In one incident, a patient yawned deeply, due to which the wire in the delicate pacemaker got a pull, and the patient died. Several cases of death to failure of the transistor in the pacemaker were also reported.
Under such circumstances MEL called a board meeting to reconsider its contract of supplying transistors to Cardiotech.
The Board felt that these incidents were an indication of a major lawsuit awaiting Cardiotech, and Micro Electronics would also be held liable, as it supplied the transistors. The Board decided to stop supplying transistors to Cardiotech. When this was conveyed to Cardiotech’s representative, he has “You cant stop selling transistors to us. You are our sole supplier, as other suppliers have already stopped supplying, for the same reason. If you also stop the supply now we would have to exit this business, and there would be no pacemaker manufacturer left. Without pacemakers people’s lives will be at a risk. This make the Board rethink its decision. The directors had various opinions on this issue. One of them bluntly said. “It is none of our problem. We do not get enough margins from this sale to take such risk. It is high time that we got out of this contract before a lawsuit catches us”. Another people asked, “Don’t we have an ethical obligation to sell the transistors to the pacemaker company?” A nominee director objected strongly to this statement and said, “Why should we be the sole suppliers to Cardiotech? We need not rethink our decision to stop supplying to Cardiotech, as our only obligation is to our shareholders.” The chairman of the Board decided to put an end to this discussion, as situation was going out of control. He interrupted the discussion by saying “I think it’s time for us to work out a solution to this problem. I hope our final decision would be in the interest of all our stakeholders.
Questions:
1. Do you think that there is any ethical element in MEL decision to stop supplying transistors to Cardiotech? Justify your answer.
2. “Why should we be the sole suppliers to Cardiotech? We need not rethink our decision to stop supplying to Cardiotech, as our only obligation is to our shareholders” Do you support this opinion of the nominee director? What could be an ethical solution to this problem?
No comments:
Post a Comment