Strategic Management Model Test Paper - 3 (Questions) - CA Intermediate PDF Download

 Page 1


MODEL TEST PAPER 3 
 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)  Dr. Mikesh Gupta, Agriculture Management Guru at a leading
management school in Patna, has been driving the business of E-
Bandhu with seven of his students since 2017. This business has two 
core objectives: first, sustainable farming awareness and second, 
seasonal availability of agricultural inputs. It is a technology driven 
business wherein they have a one stop shop for all agricultural products 
available to farmers at competitive prices. Business is quite challenging, 
given the fact that farmers in the region are not well aware of the use of 
technology. 
In the summer of 2019, the team decided to redefine their business 
strategy to succeed in the agricultural sector. They formulated a new 
definition and made strategic decisions to leverage their core 
competencies. 
Firstly, they shifted their target market from directly serving farmers to 
onboarding wholesalers and retailers into the system and selling 
products to them. This strategic move was based on the 
understanding that wholesalers and retailers could influence 
technology adoption among farmers. 
Secondly, they outsourced logistics to MaalGaadi, a rural supply chain 
management company. This decision helped E-Bandhu reduce asset 
procurement costs and corresponding debt, thus strengthening their 
position in the market. 
Thirdly, they introduced a new service-based product, ChaaraVidya, 
in their application. ChaaraVidya aims to educate farmers about the 
latest sustainable farming practices being implemented around the 
world. This addition could potentially be a game-changer for E-Bandhu 
in the agro startup circle, further enhancing their core competency in 
promoting sustainable farming practices and technology adoption. 
The team is enthusiastic about the strategic changes brought in by 
Dr. Mikesh and anticipates a more sustainable future for their idea. 
245
Page 2


MODEL TEST PAPER 3 
 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)  Dr. Mikesh Gupta, Agriculture Management Guru at a leading
management school in Patna, has been driving the business of E-
Bandhu with seven of his students since 2017. This business has two 
core objectives: first, sustainable farming awareness and second, 
seasonal availability of agricultural inputs. It is a technology driven 
business wherein they have a one stop shop for all agricultural products 
available to farmers at competitive prices. Business is quite challenging, 
given the fact that farmers in the region are not well aware of the use of 
technology. 
In the summer of 2019, the team decided to redefine their business 
strategy to succeed in the agricultural sector. They formulated a new 
definition and made strategic decisions to leverage their core 
competencies. 
Firstly, they shifted their target market from directly serving farmers to 
onboarding wholesalers and retailers into the system and selling 
products to them. This strategic move was based on the 
understanding that wholesalers and retailers could influence 
technology adoption among farmers. 
Secondly, they outsourced logistics to MaalGaadi, a rural supply chain 
management company. This decision helped E-Bandhu reduce asset 
procurement costs and corresponding debt, thus strengthening their 
position in the market. 
Thirdly, they introduced a new service-based product, ChaaraVidya, 
in their application. ChaaraVidya aims to educate farmers about the 
latest sustainable farming practices being implemented around the 
world. This addition could potentially be a game-changer for E-Bandhu 
in the agro startup circle, further enhancing their core competency in 
promoting sustainable farming practices and technology adoption. 
The team is enthusiastic about the strategic changes brought in by 
Dr. Mikesh and anticipates a more sustainable future for their idea. 
245
Based on the above case scenario, answer the multiple-choice 
questions. 
(i) Switching from direct selling to marketing through wholesalers
and retailers was a strategic decision taken by the management.
Such decisions help an organization to be more of which of the
following?
(a) Authoritative
(b) Futuristic
(c) Proactive
(d) Regularised (2 Marks) 
(ii) ChaaraVidya was brought into the market to increase farmer
awareness of soil quality and the latest sustainable farm
practices from around the world? What kind of growth strategy
will it fall under?
(a) Market penetration
(b) Market development
(c) Product development
(d) Diversification of business (2 Marks) 
(iii) One of the most strategically advantageous decisions for E-
Bandhu was to get into a contract with MaalGaadi. Which of the
following could not be an advantage for E-Bandhu from this
alliance?
(a) Cost savings
(b) Reduced delivery time
(c) Improved customer satisfaction
(d) Increased inventory of products (2 Marks) 
(iv) How does E-Bandhu utilize Michael Porter's Five Forces model
in its strategic decision-making process?
(a) By focusing on industry rivalry and competitive pricing
(b) By analyzing the bargaining power of suppliers and buyers
(c) By assessing the threat of new entrants and substitutes
(d) All of the above (2 Marks) 
(v) What are the core objectives of E-Bandhu, as mentioned in the
case study?
(a) Sustainable farming awareness and seasonal availability of
agricultural inputs
(b) Technology-driven solutions and competitive pricing
(c) Onboarding wholesalers and retailers into the system
246
Page 3


MODEL TEST PAPER 3 
 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)  Dr. Mikesh Gupta, Agriculture Management Guru at a leading
management school in Patna, has been driving the business of E-
Bandhu with seven of his students since 2017. This business has two 
core objectives: first, sustainable farming awareness and second, 
seasonal availability of agricultural inputs. It is a technology driven 
business wherein they have a one stop shop for all agricultural products 
available to farmers at competitive prices. Business is quite challenging, 
given the fact that farmers in the region are not well aware of the use of 
technology. 
In the summer of 2019, the team decided to redefine their business 
strategy to succeed in the agricultural sector. They formulated a new 
definition and made strategic decisions to leverage their core 
competencies. 
Firstly, they shifted their target market from directly serving farmers to 
onboarding wholesalers and retailers into the system and selling 
products to them. This strategic move was based on the 
understanding that wholesalers and retailers could influence 
technology adoption among farmers. 
Secondly, they outsourced logistics to MaalGaadi, a rural supply chain 
management company. This decision helped E-Bandhu reduce asset 
procurement costs and corresponding debt, thus strengthening their 
position in the market. 
Thirdly, they introduced a new service-based product, ChaaraVidya, 
in their application. ChaaraVidya aims to educate farmers about the 
latest sustainable farming practices being implemented around the 
world. This addition could potentially be a game-changer for E-Bandhu 
in the agro startup circle, further enhancing their core competency in 
promoting sustainable farming practices and technology adoption. 
The team is enthusiastic about the strategic changes brought in by 
Dr. Mikesh and anticipates a more sustainable future for their idea. 
245
Based on the above case scenario, answer the multiple-choice 
questions. 
(i) Switching from direct selling to marketing through wholesalers
and retailers was a strategic decision taken by the management.
Such decisions help an organization to be more of which of the
following?
(a) Authoritative
(b) Futuristic
(c) Proactive
(d) Regularised (2 Marks) 
(ii) ChaaraVidya was brought into the market to increase farmer
awareness of soil quality and the latest sustainable farm
practices from around the world? What kind of growth strategy
will it fall under?
(a) Market penetration
(b) Market development
(c) Product development
(d) Diversification of business (2 Marks) 
(iii) One of the most strategically advantageous decisions for E-
Bandhu was to get into a contract with MaalGaadi. Which of the
following could not be an advantage for E-Bandhu from this
alliance?
(a) Cost savings
(b) Reduced delivery time
(c) Improved customer satisfaction
(d) Increased inventory of products (2 Marks) 
(iv) How does E-Bandhu utilize Michael Porter's Five Forces model
in its strategic decision-making process?
(a) By focusing on industry rivalry and competitive pricing
(b) By analyzing the bargaining power of suppliers and buyers
(c) By assessing the threat of new entrants and substitutes
(d) All of the above (2 Marks) 
(v) What are the core objectives of E-Bandhu, as mentioned in the
case study?
(a) Sustainable farming awareness and seasonal availability of
agricultural inputs
(b) Technology-driven solutions and competitive pricing
(c) Onboarding wholesalers and retailers into the system
246
(d) All of the above (2 Marks) 
(B) Compulsory Application Based Independent MCQs
(i) Swabhaav, a social media marketing firm introduced an AI based
management tool that has the capabilities of managing teams
across functions all while being creative. What is the most likely
organisational structure post this implementation?
(a) Divisional Structure
(b) Matrix Structure
(c) Hourglass Structure
(d) Network Structure (2 Marks) 
(ii) A tea farm owners plan to open tea cafes in tourist spots and to sell
their own premium tea to build a brand. Which of the following can
this be termed as?
(a) Backward Integration
(b) Forward Integration
(c) Diversification
(d) Horizontal Integration (2 Marks) 
(iii) The process of creating, maintaining, and enhancing strong, value- 
laden relationships with customers and other stakeholder is:
(a) Social marketing
(b) Augmented marketing
(c) Direct marketing
(d) Relationship marketing (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)  In his pursuit to expand the family business to Dubai, Dharam Veer
Singh, the successor of the renowned architect Late Shri Lala Ram Pal 
Singh, faced a dilemma. Despite receiving positive feedback from 
various potential investors, a common trend emerged where the 
emphasis was primarily on swift construction, neglecting the importance 
of structural longevity. Dharam finds himself at a crossroads. What 
strategic approach could assist him in formulating a robust and coherent 
business roadmap that aligns with his vision for sustainable growth? 
(5 Marks) 
(b) Ravi and Arjun are two friends who are partners in their business of
manufacturing premium coffee. Ravi believes in making profits through
selling higher volumes of products, hence he advocates for charging
247
Page 4


MODEL TEST PAPER 3 
 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)  Dr. Mikesh Gupta, Agriculture Management Guru at a leading
management school in Patna, has been driving the business of E-
Bandhu with seven of his students since 2017. This business has two 
core objectives: first, sustainable farming awareness and second, 
seasonal availability of agricultural inputs. It is a technology driven 
business wherein they have a one stop shop for all agricultural products 
available to farmers at competitive prices. Business is quite challenging, 
given the fact that farmers in the region are not well aware of the use of 
technology. 
In the summer of 2019, the team decided to redefine their business 
strategy to succeed in the agricultural sector. They formulated a new 
definition and made strategic decisions to leverage their core 
competencies. 
Firstly, they shifted their target market from directly serving farmers to 
onboarding wholesalers and retailers into the system and selling 
products to them. This strategic move was based on the 
understanding that wholesalers and retailers could influence 
technology adoption among farmers. 
Secondly, they outsourced logistics to MaalGaadi, a rural supply chain 
management company. This decision helped E-Bandhu reduce asset 
procurement costs and corresponding debt, thus strengthening their 
position in the market. 
Thirdly, they introduced a new service-based product, ChaaraVidya, 
in their application. ChaaraVidya aims to educate farmers about the 
latest sustainable farming practices being implemented around the 
world. This addition could potentially be a game-changer for E-Bandhu 
in the agro startup circle, further enhancing their core competency in 
promoting sustainable farming practices and technology adoption. 
The team is enthusiastic about the strategic changes brought in by 
Dr. Mikesh and anticipates a more sustainable future for their idea. 
245
Based on the above case scenario, answer the multiple-choice 
questions. 
(i) Switching from direct selling to marketing through wholesalers
and retailers was a strategic decision taken by the management.
Such decisions help an organization to be more of which of the
following?
(a) Authoritative
(b) Futuristic
(c) Proactive
(d) Regularised (2 Marks) 
(ii) ChaaraVidya was brought into the market to increase farmer
awareness of soil quality and the latest sustainable farm
practices from around the world? What kind of growth strategy
will it fall under?
(a) Market penetration
(b) Market development
(c) Product development
(d) Diversification of business (2 Marks) 
(iii) One of the most strategically advantageous decisions for E-
Bandhu was to get into a contract with MaalGaadi. Which of the
following could not be an advantage for E-Bandhu from this
alliance?
(a) Cost savings
(b) Reduced delivery time
(c) Improved customer satisfaction
(d) Increased inventory of products (2 Marks) 
(iv) How does E-Bandhu utilize Michael Porter's Five Forces model
in its strategic decision-making process?
(a) By focusing on industry rivalry and competitive pricing
(b) By analyzing the bargaining power of suppliers and buyers
(c) By assessing the threat of new entrants and substitutes
(d) All of the above (2 Marks) 
(v) What are the core objectives of E-Bandhu, as mentioned in the
case study?
(a) Sustainable farming awareness and seasonal availability of
agricultural inputs
(b) Technology-driven solutions and competitive pricing
(c) Onboarding wholesalers and retailers into the system
246
(d) All of the above (2 Marks) 
(B) Compulsory Application Based Independent MCQs
(i) Swabhaav, a social media marketing firm introduced an AI based
management tool that has the capabilities of managing teams
across functions all while being creative. What is the most likely
organisational structure post this implementation?
(a) Divisional Structure
(b) Matrix Structure
(c) Hourglass Structure
(d) Network Structure (2 Marks) 
(ii) A tea farm owners plan to open tea cafes in tourist spots and to sell
their own premium tea to build a brand. Which of the following can
this be termed as?
(a) Backward Integration
(b) Forward Integration
(c) Diversification
(d) Horizontal Integration (2 Marks) 
(iii) The process of creating, maintaining, and enhancing strong, value- 
laden relationships with customers and other stakeholder is:
(a) Social marketing
(b) Augmented marketing
(c) Direct marketing
(d) Relationship marketing (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)  In his pursuit to expand the family business to Dubai, Dharam Veer
Singh, the successor of the renowned architect Late Shri Lala Ram Pal 
Singh, faced a dilemma. Despite receiving positive feedback from 
various potential investors, a common trend emerged where the 
emphasis was primarily on swift construction, neglecting the importance 
of structural longevity. Dharam finds himself at a crossroads. What 
strategic approach could assist him in formulating a robust and coherent 
business roadmap that aligns with his vision for sustainable growth? 
(5 Marks) 
(b) Ravi and Arjun are two friends who are partners in their business of
manufacturing premium coffee. Ravi believes in making profits through
selling higher volumes of products, hence he advocates for charging
247
lower prices to customers. Arjun, however, believes that higher prices 
should be charged to create an image of exclusivity and proposes that 
the product undergo some changes to justify this pricing. 
Analyze the nature of the generic strategy used by Ravi and Arjun. 
 (5 Marks) 
(c) Due to the reoccurrence of various variants of the coronavirus, XYZ
Corporation is facing an unstable environment and has begun
unbundling and disintegrating its activities. It has also started relying on
outside vendors to perform these activities. Identify the organizational
structure XYZ Corporation is shifting to. Under what circumstances does
this structure become useful? (5 Marks) 
2. (a)  There are four specific criteria of sustainable competitive advantage that
firms can use to determine those capabilities that are known as core 
competencies. Explain.  (5 Marks) 
(b) XYZ Electronics has discovered that its products have reached their
maturity stage, and the company is experiencing overcapacity.
Consequently, it focuses on maintaining the operational efficiency of its
manufacturing facilities. Identify the strategy implemented by XYZ
Electronics and provide the reasons for this strategy.   (5 Marks) 
3. (a)  Yummy Foods and Tasty Foods are successfully competing in the
business of ready to eat snacks in Patna. Yummy has been pioneer in 
introducing innovative products. These products will give them good 
sale. However, Tasty Foods will introduce similar products in reaction to 
the products introduced by the Yummy Foods taking away the advantage 
gained by the former.  
Discuss the strategic approach of two companies. Which is superior? 
(5 Marks) 
(b) Why is change management crucial during digital transformation, and
what are some key strategies for navigating change effectively?
(5 Marks) 
4. (a)  Write a short note on the Product Life Cycle (PLC) and its significance
in portfolio diagnosis. (5 Marks) 
(b) Distinguish between Micro Environment and Macro Environment.
OR 
Distinguish between Operational Control and Management Control. 
 (5 Marks) 
248