Strategic Management Model Test Paper - 2 (Questions) - CA Intermediate PDF Download

 Page 1


MODEL TEST PAPER 2 
 PAPER 6B: STRATEGIC MANAGEMENT 
1. The question paper comprises two parts, Part I and Part II.
2. Part I comprises case scenario based multiple choice questions (MCQs)
3. Part II comprises questions which require descriptive type answers.
PART I – Case scenario based MCQs (15 Marks) 
Question 1.(A) (Compulsory) 
1. (A) Café Delight, a thriving restaurant chain known for its unique blend of
Australian and Indian culinary experiences, embarked on a remarkable 
journey from its humble beginnings as a small café in Australia to 
becoming a renowned player in the Indian restaurant industry. This case 
study digs into the strategic decisions and market dynamics that fueled 
Café Delight's growth, highlighting its transition from a single café in 
Powai, Mumbai, to a flourishing chain with a presence in five cities and 
over 25 stores. It explores how Café Delight effectively leveraged social 
media and adapted its pricing strategy to compete with global brands 
while maintaining a healthy profit margin. 
In 2005, Café Delight was founded in Melbourne, Australia, by a 
passionate entrepreneur with a vision to bring the flavors of Australia 
and India together. The first café established in Powai, Mumbai, received 
accolades for its unique menu, blending Australian coffee culture with 
Indian culinary traditions. Over the course of five years, Café Delight 
expanded to three stores in Mumbai, driven by exceptional mouth 
publicity, customer loyalty, and consistent quality. 
As the social media landscape evolved, Café Delight recognized the 
power of online platforms in reaching a wider audience. By effectively 
utilizing social media and online marketing, Café Delight expanded its 
presence to five cities across India and established over 25 stores. 
Customer engagement through social media platforms enabled the 
brand to create a strong and vibrant community, driving organic growth. 
Café Delight's customer-centric approach involved continuously evolving 
its menu to cater to the changing tastes and dietary preferences of its 
patrons. By understanding the evolving needs of its customers, Café 
Delight could offer personalized menu items, seasonal specials, and 
dietary alternatives. This approach created a sense of loyalty and 
engagement among customers, strengthening the brand's appeal. Not 
just customers but High-power, low-interest stakeholders, including 
regulatory authorities, were addressed with careful compliance and 
240
Page 2


MODEL TEST PAPER 2 
 PAPER 6B: STRATEGIC MANAGEMENT 
1. The question paper comprises two parts, Part I and Part II.
2. Part I comprises case scenario based multiple choice questions (MCQs)
3. Part II comprises questions which require descriptive type answers.
PART I – Case scenario based MCQs (15 Marks) 
Question 1.(A) (Compulsory) 
1. (A) Café Delight, a thriving restaurant chain known for its unique blend of
Australian and Indian culinary experiences, embarked on a remarkable 
journey from its humble beginnings as a small café in Australia to 
becoming a renowned player in the Indian restaurant industry. This case 
study digs into the strategic decisions and market dynamics that fueled 
Café Delight's growth, highlighting its transition from a single café in 
Powai, Mumbai, to a flourishing chain with a presence in five cities and 
over 25 stores. It explores how Café Delight effectively leveraged social 
media and adapted its pricing strategy to compete with global brands 
while maintaining a healthy profit margin. 
In 2005, Café Delight was founded in Melbourne, Australia, by a 
passionate entrepreneur with a vision to bring the flavors of Australia 
and India together. The first café established in Powai, Mumbai, received 
accolades for its unique menu, blending Australian coffee culture with 
Indian culinary traditions. Over the course of five years, Café Delight 
expanded to three stores in Mumbai, driven by exceptional mouth 
publicity, customer loyalty, and consistent quality. 
As the social media landscape evolved, Café Delight recognized the 
power of online platforms in reaching a wider audience. By effectively 
utilizing social media and online marketing, Café Delight expanded its 
presence to five cities across India and established over 25 stores. 
Customer engagement through social media platforms enabled the 
brand to create a strong and vibrant community, driving organic growth. 
Café Delight's customer-centric approach involved continuously evolving 
its menu to cater to the changing tastes and dietary preferences of its 
patrons. By understanding the evolving needs of its customers, Café 
Delight could offer personalized menu items, seasonal specials, and 
dietary alternatives. This approach created a sense of loyalty and 
engagement among customers, strengthening the brand's appeal. Not 
just customers but High-power, low-interest stakeholders, including 
regulatory authorities, were addressed with careful compliance and 
240
adherence to industry standards. Low-power, high-interest stakeholders, 
like potential customers and local communities, were engaged through 
targeted marketing campaigns and community involvement initiatives. 
This meticulous stakeholder analysis allowed Café Delight to build and 
maintain strong relationships with each group, effectively managing their 
influence and impact on the brand. 
With its expanding presence and increasing popularity, Café Delight 
underwent a shift in its pricing strategy. It transitioned from a pocket-
friendly pricing model to a skimming strategy, capitalizing on its unique 
blend of Australian and Indian flavors to position itself as a premium 
restaurant. Café Delight faced stiff competition from global brands 
entering the Indian market but maintained a profit margin of 
approximately 30% through menu engineering and targeted pricing. 
In one of its kind, using strategic tools enabled Café Delight to identify 
and act on opportunities while mitigating threats, contributing to its long-
term success in the highly competitive restaurant industry. 
Based on the above Case Scenario, answer the Multiple-Choice 
Questions. 
(i) Café Delight effectively leveraged social media and adapted its
pricing strategy as it stepped into which phase of business life cycle
of operations?
(a) Introduction Stage
(b) Growth Stage
(c) Maturity Stage
(d) Decline Stage (2 Marks) 
(ii) What stakeholder group did Café Delight engage through targeted
marketing campaigns and community involvement initiatives?
(a) High-power, high-interest stakeholders
(b) Low-power, low-interest stakeholders
(c) Low-power, high-interest stakeholders
(d) High-power, low-interest stakeholders (2 Marks) 
(iii) What best describes Café Delight's initial expansion strategy when
it expanded from one café to three in Mumbai?
(a) Aggressive price reduction
(b) Leveraging customer loyalty and word-of-mouth publicity
(c) Extensive online marketing
(d) Embracing global branding strategies (2 Marks) 
241
Page 3


MODEL TEST PAPER 2 
 PAPER 6B: STRATEGIC MANAGEMENT 
1. The question paper comprises two parts, Part I and Part II.
2. Part I comprises case scenario based multiple choice questions (MCQs)
3. Part II comprises questions which require descriptive type answers.
PART I – Case scenario based MCQs (15 Marks) 
Question 1.(A) (Compulsory) 
1. (A) Café Delight, a thriving restaurant chain known for its unique blend of
Australian and Indian culinary experiences, embarked on a remarkable 
journey from its humble beginnings as a small café in Australia to 
becoming a renowned player in the Indian restaurant industry. This case 
study digs into the strategic decisions and market dynamics that fueled 
Café Delight's growth, highlighting its transition from a single café in 
Powai, Mumbai, to a flourishing chain with a presence in five cities and 
over 25 stores. It explores how Café Delight effectively leveraged social 
media and adapted its pricing strategy to compete with global brands 
while maintaining a healthy profit margin. 
In 2005, Café Delight was founded in Melbourne, Australia, by a 
passionate entrepreneur with a vision to bring the flavors of Australia 
and India together. The first café established in Powai, Mumbai, received 
accolades for its unique menu, blending Australian coffee culture with 
Indian culinary traditions. Over the course of five years, Café Delight 
expanded to three stores in Mumbai, driven by exceptional mouth 
publicity, customer loyalty, and consistent quality. 
As the social media landscape evolved, Café Delight recognized the 
power of online platforms in reaching a wider audience. By effectively 
utilizing social media and online marketing, Café Delight expanded its 
presence to five cities across India and established over 25 stores. 
Customer engagement through social media platforms enabled the 
brand to create a strong and vibrant community, driving organic growth. 
Café Delight's customer-centric approach involved continuously evolving 
its menu to cater to the changing tastes and dietary preferences of its 
patrons. By understanding the evolving needs of its customers, Café 
Delight could offer personalized menu items, seasonal specials, and 
dietary alternatives. This approach created a sense of loyalty and 
engagement among customers, strengthening the brand's appeal. Not 
just customers but High-power, low-interest stakeholders, including 
regulatory authorities, were addressed with careful compliance and 
240
adherence to industry standards. Low-power, high-interest stakeholders, 
like potential customers and local communities, were engaged through 
targeted marketing campaigns and community involvement initiatives. 
This meticulous stakeholder analysis allowed Café Delight to build and 
maintain strong relationships with each group, effectively managing their 
influence and impact on the brand. 
With its expanding presence and increasing popularity, Café Delight 
underwent a shift in its pricing strategy. It transitioned from a pocket-
friendly pricing model to a skimming strategy, capitalizing on its unique 
blend of Australian and Indian flavors to position itself as a premium 
restaurant. Café Delight faced stiff competition from global brands 
entering the Indian market but maintained a profit margin of 
approximately 30% through menu engineering and targeted pricing. 
In one of its kind, using strategic tools enabled Café Delight to identify 
and act on opportunities while mitigating threats, contributing to its long-
term success in the highly competitive restaurant industry. 
Based on the above Case Scenario, answer the Multiple-Choice 
Questions. 
(i) Café Delight effectively leveraged social media and adapted its
pricing strategy as it stepped into which phase of business life cycle
of operations?
(a) Introduction Stage
(b) Growth Stage
(c) Maturity Stage
(d) Decline Stage (2 Marks) 
(ii) What stakeholder group did Café Delight engage through targeted
marketing campaigns and community involvement initiatives?
(a) High-power, high-interest stakeholders
(b) Low-power, low-interest stakeholders
(c) Low-power, high-interest stakeholders
(d) High-power, low-interest stakeholders (2 Marks) 
(iii) What best describes Café Delight's initial expansion strategy when
it expanded from one café to three in Mumbai?
(a) Aggressive price reduction
(b) Leveraging customer loyalty and word-of-mouth publicity
(c) Extensive online marketing
(d) Embracing global branding strategies (2 Marks) 
241
(iv) At which level of strategic management does Café Delight's
transition from a pocket-friendly pricing model to a skimming
strategy fit?
(a) Corporate level
(b) Business level
(c) Functional level
(d) Operational level (2 Marks) 
(v) What type of strategy did Café Delight use to differentiate itself from
competitors in the Indian restaurant industry?
(a) Cost leadership strategy
(b) Focused differentiation strategy
(c) Cost focus strategy
(d) Hybrid strategy (2 Marks) 
(B) Compulsory Application Based Independent MCQs
(i) Shamita joined GlobalX Consulting firm as an Analyst in financial
fraud mitigation. In her very first assignment she faced an integrity
dilemma where her subordinates had missed calling out a potential
financial risk which could impact the overall fraud rating of the
organisation. She quickly reached out to her seniors who
appreciated her diligence and immediately reported the same to
senior management. In this scenario which element, soft or hard,
is acting in favor of GlobalX?
(a) Strategy
(b) Systems
(c) Shared Value
(d) Staff (2 Marks) 
(ii) Chocopo, an ice cream company run by Shri Shyam Kumar since
1985, now had its management change to his two daughters, who
came in and wanted to experiment with a lot of flavors. They
introduced 21 new flavors in a span of 6 months while not losing
out of 2 legendary flavors of their dad i.e. Stick Kulfi and Mango
Bar. After year 1 of operations, 9 out of the 21 flavors had to be
stopped, while 10 flavors were still kept, extending the
experimentation. The early sense from market was that they would
have to be stopped too, but the sisters decided to extend their
timelines. What category as per BCG Matrix would the 10 flavors
fall into?
(a) Cash Cow
242
Page 4


MODEL TEST PAPER 2 
 PAPER 6B: STRATEGIC MANAGEMENT 
1. The question paper comprises two parts, Part I and Part II.
2. Part I comprises case scenario based multiple choice questions (MCQs)
3. Part II comprises questions which require descriptive type answers.
PART I – Case scenario based MCQs (15 Marks) 
Question 1.(A) (Compulsory) 
1. (A) Café Delight, a thriving restaurant chain known for its unique blend of
Australian and Indian culinary experiences, embarked on a remarkable 
journey from its humble beginnings as a small café in Australia to 
becoming a renowned player in the Indian restaurant industry. This case 
study digs into the strategic decisions and market dynamics that fueled 
Café Delight's growth, highlighting its transition from a single café in 
Powai, Mumbai, to a flourishing chain with a presence in five cities and 
over 25 stores. It explores how Café Delight effectively leveraged social 
media and adapted its pricing strategy to compete with global brands 
while maintaining a healthy profit margin. 
In 2005, Café Delight was founded in Melbourne, Australia, by a 
passionate entrepreneur with a vision to bring the flavors of Australia 
and India together. The first café established in Powai, Mumbai, received 
accolades for its unique menu, blending Australian coffee culture with 
Indian culinary traditions. Over the course of five years, Café Delight 
expanded to three stores in Mumbai, driven by exceptional mouth 
publicity, customer loyalty, and consistent quality. 
As the social media landscape evolved, Café Delight recognized the 
power of online platforms in reaching a wider audience. By effectively 
utilizing social media and online marketing, Café Delight expanded its 
presence to five cities across India and established over 25 stores. 
Customer engagement through social media platforms enabled the 
brand to create a strong and vibrant community, driving organic growth. 
Café Delight's customer-centric approach involved continuously evolving 
its menu to cater to the changing tastes and dietary preferences of its 
patrons. By understanding the evolving needs of its customers, Café 
Delight could offer personalized menu items, seasonal specials, and 
dietary alternatives. This approach created a sense of loyalty and 
engagement among customers, strengthening the brand's appeal. Not 
just customers but High-power, low-interest stakeholders, including 
regulatory authorities, were addressed with careful compliance and 
240
adherence to industry standards. Low-power, high-interest stakeholders, 
like potential customers and local communities, were engaged through 
targeted marketing campaigns and community involvement initiatives. 
This meticulous stakeholder analysis allowed Café Delight to build and 
maintain strong relationships with each group, effectively managing their 
influence and impact on the brand. 
With its expanding presence and increasing popularity, Café Delight 
underwent a shift in its pricing strategy. It transitioned from a pocket-
friendly pricing model to a skimming strategy, capitalizing on its unique 
blend of Australian and Indian flavors to position itself as a premium 
restaurant. Café Delight faced stiff competition from global brands 
entering the Indian market but maintained a profit margin of 
approximately 30% through menu engineering and targeted pricing. 
In one of its kind, using strategic tools enabled Café Delight to identify 
and act on opportunities while mitigating threats, contributing to its long-
term success in the highly competitive restaurant industry. 
Based on the above Case Scenario, answer the Multiple-Choice 
Questions. 
(i) Café Delight effectively leveraged social media and adapted its
pricing strategy as it stepped into which phase of business life cycle
of operations?
(a) Introduction Stage
(b) Growth Stage
(c) Maturity Stage
(d) Decline Stage (2 Marks) 
(ii) What stakeholder group did Café Delight engage through targeted
marketing campaigns and community involvement initiatives?
(a) High-power, high-interest stakeholders
(b) Low-power, low-interest stakeholders
(c) Low-power, high-interest stakeholders
(d) High-power, low-interest stakeholders (2 Marks) 
(iii) What best describes Café Delight's initial expansion strategy when
it expanded from one café to three in Mumbai?
(a) Aggressive price reduction
(b) Leveraging customer loyalty and word-of-mouth publicity
(c) Extensive online marketing
(d) Embracing global branding strategies (2 Marks) 
241
(iv) At which level of strategic management does Café Delight's
transition from a pocket-friendly pricing model to a skimming
strategy fit?
(a) Corporate level
(b) Business level
(c) Functional level
(d) Operational level (2 Marks) 
(v) What type of strategy did Café Delight use to differentiate itself from
competitors in the Indian restaurant industry?
(a) Cost leadership strategy
(b) Focused differentiation strategy
(c) Cost focus strategy
(d) Hybrid strategy (2 Marks) 
(B) Compulsory Application Based Independent MCQs
(i) Shamita joined GlobalX Consulting firm as an Analyst in financial
fraud mitigation. In her very first assignment she faced an integrity
dilemma where her subordinates had missed calling out a potential
financial risk which could impact the overall fraud rating of the
organisation. She quickly reached out to her seniors who
appreciated her diligence and immediately reported the same to
senior management. In this scenario which element, soft or hard,
is acting in favor of GlobalX?
(a) Strategy
(b) Systems
(c) Shared Value
(d) Staff (2 Marks) 
(ii) Chocopo, an ice cream company run by Shri Shyam Kumar since
1985, now had its management change to his two daughters, who
came in and wanted to experiment with a lot of flavors. They
introduced 21 new flavors in a span of 6 months while not losing
out of 2 legendary flavors of their dad i.e. Stick Kulfi and Mango
Bar. After year 1 of operations, 9 out of the 21 flavors had to be
stopped, while 10 flavors were still kept, extending the
experimentation. The early sense from market was that they would
have to be stopped too, but the sisters decided to extend their
timelines. What category as per BCG Matrix would the 10 flavors
fall into?
(a) Cash Cow
242
(b) Dog
(c) Question Mark
(d) Star (2 Marks) 
(iii) A company negotiating the best prices and quality from its suppliers
to add to customer’s delight is an example of?
(a) Value Creation by improving primary activity
(b) Value Creation by improving support activity
(c) Competitive Advantage Creation
(d) Stakeholder Management (1 Mark) 
PART II – Descriptive Questions (35 Marks) 
Question No. 1 is compulsory. 
Attempt any two questions out of the remaining three questions. 
1. (a)  ABC retail chain regularly monitors consumer trends and supply chain
flexibility. The retail chain tracks consumer trends to adjust its offerings, 
ensuring they meet customer needs. Simultaneously, it maintains a 
flexible supply chain to respond swiftly to demand fluctuations. This 
strategy enables ABC retail chain to anticipate market shifts and adapt 
to them effectively, ensuring its competitiveness and customer 
satisfaction. Which type of strategy is the retail chain employing?  
(5 Marks) 
(b) A Mumbai-based conglomerate, PQR Ltd., has announced a major
restructuring of its business operations. The company has decided to
split its business into four separate units: Manufacturing, Retail,
Services, and Technology. Each unit will operate as a separate
business, with delegated responsibility for day-to-day operations and
strategy to the respective unit managers. Identify the organization
structure that PQR Ltd. has planned to implement. Discuss any four
attributes and the benefits the firm may derive by using this organization
structure.  (5 Marks)
(c) GreenThrift Inc., a sustainable clothing retailer, is experiencing a surge
in popularity due to the growing awareness of environmental issues
among consumers. The company specializes in selling second-hand
clothing and upcycled garments, offering an eco-friendly alternative to
traditional fast fashion.
A major concern for GreenThrift Inc. is the emergence of new
sustainable fashion brands in the market. These brands focus on using
organic and recycled materials, as well as ethical manufacturing
practices, which align with the values of environmentally conscious
consumers.
243
Page 5


MODEL TEST PAPER 2 
 PAPER 6B: STRATEGIC MANAGEMENT 
1. The question paper comprises two parts, Part I and Part II.
2. Part I comprises case scenario based multiple choice questions (MCQs)
3. Part II comprises questions which require descriptive type answers.
PART I – Case scenario based MCQs (15 Marks) 
Question 1.(A) (Compulsory) 
1. (A) Café Delight, a thriving restaurant chain known for its unique blend of
Australian and Indian culinary experiences, embarked on a remarkable 
journey from its humble beginnings as a small café in Australia to 
becoming a renowned player in the Indian restaurant industry. This case 
study digs into the strategic decisions and market dynamics that fueled 
Café Delight's growth, highlighting its transition from a single café in 
Powai, Mumbai, to a flourishing chain with a presence in five cities and 
over 25 stores. It explores how Café Delight effectively leveraged social 
media and adapted its pricing strategy to compete with global brands 
while maintaining a healthy profit margin. 
In 2005, Café Delight was founded in Melbourne, Australia, by a 
passionate entrepreneur with a vision to bring the flavors of Australia 
and India together. The first café established in Powai, Mumbai, received 
accolades for its unique menu, blending Australian coffee culture with 
Indian culinary traditions. Over the course of five years, Café Delight 
expanded to three stores in Mumbai, driven by exceptional mouth 
publicity, customer loyalty, and consistent quality. 
As the social media landscape evolved, Café Delight recognized the 
power of online platforms in reaching a wider audience. By effectively 
utilizing social media and online marketing, Café Delight expanded its 
presence to five cities across India and established over 25 stores. 
Customer engagement through social media platforms enabled the 
brand to create a strong and vibrant community, driving organic growth. 
Café Delight's customer-centric approach involved continuously evolving 
its menu to cater to the changing tastes and dietary preferences of its 
patrons. By understanding the evolving needs of its customers, Café 
Delight could offer personalized menu items, seasonal specials, and 
dietary alternatives. This approach created a sense of loyalty and 
engagement among customers, strengthening the brand's appeal. Not 
just customers but High-power, low-interest stakeholders, including 
regulatory authorities, were addressed with careful compliance and 
240
adherence to industry standards. Low-power, high-interest stakeholders, 
like potential customers and local communities, were engaged through 
targeted marketing campaigns and community involvement initiatives. 
This meticulous stakeholder analysis allowed Café Delight to build and 
maintain strong relationships with each group, effectively managing their 
influence and impact on the brand. 
With its expanding presence and increasing popularity, Café Delight 
underwent a shift in its pricing strategy. It transitioned from a pocket-
friendly pricing model to a skimming strategy, capitalizing on its unique 
blend of Australian and Indian flavors to position itself as a premium 
restaurant. Café Delight faced stiff competition from global brands 
entering the Indian market but maintained a profit margin of 
approximately 30% through menu engineering and targeted pricing. 
In one of its kind, using strategic tools enabled Café Delight to identify 
and act on opportunities while mitigating threats, contributing to its long-
term success in the highly competitive restaurant industry. 
Based on the above Case Scenario, answer the Multiple-Choice 
Questions. 
(i) Café Delight effectively leveraged social media and adapted its
pricing strategy as it stepped into which phase of business life cycle
of operations?
(a) Introduction Stage
(b) Growth Stage
(c) Maturity Stage
(d) Decline Stage (2 Marks) 
(ii) What stakeholder group did Café Delight engage through targeted
marketing campaigns and community involvement initiatives?
(a) High-power, high-interest stakeholders
(b) Low-power, low-interest stakeholders
(c) Low-power, high-interest stakeholders
(d) High-power, low-interest stakeholders (2 Marks) 
(iii) What best describes Café Delight's initial expansion strategy when
it expanded from one café to three in Mumbai?
(a) Aggressive price reduction
(b) Leveraging customer loyalty and word-of-mouth publicity
(c) Extensive online marketing
(d) Embracing global branding strategies (2 Marks) 
241
(iv) At which level of strategic management does Café Delight's
transition from a pocket-friendly pricing model to a skimming
strategy fit?
(a) Corporate level
(b) Business level
(c) Functional level
(d) Operational level (2 Marks) 
(v) What type of strategy did Café Delight use to differentiate itself from
competitors in the Indian restaurant industry?
(a) Cost leadership strategy
(b) Focused differentiation strategy
(c) Cost focus strategy
(d) Hybrid strategy (2 Marks) 
(B) Compulsory Application Based Independent MCQs
(i) Shamita joined GlobalX Consulting firm as an Analyst in financial
fraud mitigation. In her very first assignment she faced an integrity
dilemma where her subordinates had missed calling out a potential
financial risk which could impact the overall fraud rating of the
organisation. She quickly reached out to her seniors who
appreciated her diligence and immediately reported the same to
senior management. In this scenario which element, soft or hard,
is acting in favor of GlobalX?
(a) Strategy
(b) Systems
(c) Shared Value
(d) Staff (2 Marks) 
(ii) Chocopo, an ice cream company run by Shri Shyam Kumar since
1985, now had its management change to his two daughters, who
came in and wanted to experiment with a lot of flavors. They
introduced 21 new flavors in a span of 6 months while not losing
out of 2 legendary flavors of their dad i.e. Stick Kulfi and Mango
Bar. After year 1 of operations, 9 out of the 21 flavors had to be
stopped, while 10 flavors were still kept, extending the
experimentation. The early sense from market was that they would
have to be stopped too, but the sisters decided to extend their
timelines. What category as per BCG Matrix would the 10 flavors
fall into?
(a) Cash Cow
242
(b) Dog
(c) Question Mark
(d) Star (2 Marks) 
(iii) A company negotiating the best prices and quality from its suppliers
to add to customer’s delight is an example of?
(a) Value Creation by improving primary activity
(b) Value Creation by improving support activity
(c) Competitive Advantage Creation
(d) Stakeholder Management (1 Mark) 
PART II – Descriptive Questions (35 Marks) 
Question No. 1 is compulsory. 
Attempt any two questions out of the remaining three questions. 
1. (a)  ABC retail chain regularly monitors consumer trends and supply chain
flexibility. The retail chain tracks consumer trends to adjust its offerings, 
ensuring they meet customer needs. Simultaneously, it maintains a 
flexible supply chain to respond swiftly to demand fluctuations. This 
strategy enables ABC retail chain to anticipate market shifts and adapt 
to them effectively, ensuring its competitiveness and customer 
satisfaction. Which type of strategy is the retail chain employing?  
(5 Marks) 
(b) A Mumbai-based conglomerate, PQR Ltd., has announced a major
restructuring of its business operations. The company has decided to
split its business into four separate units: Manufacturing, Retail,
Services, and Technology. Each unit will operate as a separate
business, with delegated responsibility for day-to-day operations and
strategy to the respective unit managers. Identify the organization
structure that PQR Ltd. has planned to implement. Discuss any four
attributes and the benefits the firm may derive by using this organization
structure.  (5 Marks)
(c) GreenThrift Inc., a sustainable clothing retailer, is experiencing a surge
in popularity due to the growing awareness of environmental issues
among consumers. The company specializes in selling second-hand
clothing and upcycled garments, offering an eco-friendly alternative to
traditional fast fashion.
A major concern for GreenThrift Inc. is the emergence of new
sustainable fashion brands in the market. These brands focus on using
organic and recycled materials, as well as ethical manufacturing
practices, which align with the values of environmentally conscious
consumers.
243
Identify and explain that competition from new sustainable fashion 
brands falls under which category of Porter’s Five Forces Model for 
Competitive Analysis? (5 Marks) 
2. (a)  “Each organization must build its competitive advantage keeping in mind
the business warfare. This can be done by following the process of 
strategic management.” Considering this statement, explain major 
benefits of strategic management. (5 Marks) 
(b) Reshuffle Corp is a company that manufactures and sells office furniture.
They offer a range of products, from desks and chairs to cabinets and
shelves. Recently, the company has been facing increased competition
from online retailers offering similar products at lower prices.
Analyzing the characteristics of products in the furniture industry,
discuss how Reshuffle Corp can differentiate its products to maintain a
competitive edge in the market.       (5 Marks)
3. (a)  EasyLife Corporation, a leading manufacturer of consumer electronics,
is considering launching a new line of smart home devices. As a strategic 
manager, conduct a SWOT analysis for EasyLife Corporation to assess 
the feasibility and potential success of this new venture. Consider both 
internal and external factors that could impact the success of the new 
product line.  (5 Marks) 
(b) Explain the concept of forward and backward linkages between strategy
formulation and implementation in strategic management, using relevant
examples. How do these linkages impact the overall strategic decision-
making process of an organization? (5 Marks)
4. (a)  Define Strategic Performance Measures (SPM). Explain various types of
strategic performance measures. (5 Marks) 
(b) StarTech Solutions, an aerospace technology firm, operates in a highly
competitive industry. Despite the fierce competition in the aerospace
sector, StarTech has carved out a niche for itself by focusing on serving
unique, high-end clients. Unlike its competitors, StarTech has chosen
not to diversify its target market and instead specializes in providing
cutting-edge solutions to this niche market.
Identify and explain the strategy adopted by StarTech Solutions. Discuss
the advantages and disadvantages of this strategy.
OR 
Strategic alliances are formed if they provide an advantage to all the 
parties in the alliance. Do you agree? Explain in brief the advantages of 
a strategic alliance.  (5 Marks) 
244