Strategic Management Model Test Paper - 7 (Questions) - CA Intermediate PDF Download

 Page 1


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)  Galaxy Enterprises Limited (GEL) operates as a diversified
conglomerate with a significant presence in various industries, including 
electronics, packaged foods, textiles, heavy machinery, and renewable 
energy. Leveraging its substantial free reserves of ?85,000 crores, GEL 
has built a strong brand reputation, largely driven by its market 
leadership across multiple sectors. 
In the renewable energy sector, GEL has been the industry leader for 
over 15 years. The division’s recent performance has been exceptional. 
A significant market development occurred when two competitors, Nova 
Green Energy Limited and Zenith Solar Limited – previously ranked 
second and third in market share, respectively – merged to create a new 
entity, Synergy Renewables Ltd (SRL). Following the merger, SRL has 
claimed the top spot in market share, intensifying competition. 
Against this backdrop, the Chairman of GEL convened a strategic 
meeting with the Board of Directors, divisional heads, marketing 
executives, and the Group CFO. The meeting focused on formulating 
growth strategies for the renewable energy division, identifying 
opportunities for diversification, and announcing an interim dividend in 
honour of GEL’s platinum jubilee celebrations. 
Mr. Arvind Malhotra, CEO of the renewable energy division, emphasized 
the industry's slow pace of modernization compared to global standards. 
He highlighted the potential in emerging product categories, such as 
next-generation solar panels, energy storage systems, and advanced 
wind turbines. He proposed a modernization initiative requiring an 
investment of ?7,000 crores. This transformation is projected to reduce 
operational costs by 20% and minimize wastage by 12%. 
The CFO presented an analysis revealing that competitors are unlikely 
to invest in significant upgrades or expansions for the next 6–8 years 
due to financial constraints. In response, the Board approved the 
modernization initiative and allocated an additional ?1,500 crores to 
strengthen the division's supply chain. 
Another proposal discussed was GEL’s entry into the electric vehicle 
(EV) segment. The Board approved this diversification strategy, 
allocating ?8,000 crores to establish a foothold in this rapidly growing 
MODEL TEST PAPER 7
263
Page 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)  Galaxy Enterprises Limited (GEL) operates as a diversified
conglomerate with a significant presence in various industries, including 
electronics, packaged foods, textiles, heavy machinery, and renewable 
energy. Leveraging its substantial free reserves of ?85,000 crores, GEL 
has built a strong brand reputation, largely driven by its market 
leadership across multiple sectors. 
In the renewable energy sector, GEL has been the industry leader for 
over 15 years. The division’s recent performance has been exceptional. 
A significant market development occurred when two competitors, Nova 
Green Energy Limited and Zenith Solar Limited – previously ranked 
second and third in market share, respectively – merged to create a new 
entity, Synergy Renewables Ltd (SRL). Following the merger, SRL has 
claimed the top spot in market share, intensifying competition. 
Against this backdrop, the Chairman of GEL convened a strategic 
meeting with the Board of Directors, divisional heads, marketing 
executives, and the Group CFO. The meeting focused on formulating 
growth strategies for the renewable energy division, identifying 
opportunities for diversification, and announcing an interim dividend in 
honour of GEL’s platinum jubilee celebrations. 
Mr. Arvind Malhotra, CEO of the renewable energy division, emphasized 
the industry's slow pace of modernization compared to global standards. 
He highlighted the potential in emerging product categories, such as 
next-generation solar panels, energy storage systems, and advanced 
wind turbines. He proposed a modernization initiative requiring an 
investment of ?7,000 crores. This transformation is projected to reduce 
operational costs by 20% and minimize wastage by 12%. 
The CFO presented an analysis revealing that competitors are unlikely 
to invest in significant upgrades or expansions for the next 6–8 years 
due to financial constraints. In response, the Board approved the 
modernization initiative and allocated an additional ?1,500 crores to 
strengthen the division's supply chain. 
Another proposal discussed was GEL’s entry into the electric vehicle 
(EV) segment. The Board approved this diversification strategy, 
allocating ?8,000 crores to establish a foothold in this rapidly growing 
MODEL TEST PAPER 7
263
market. Additionally, the Board authorized the distribution of an interim 
dividend of ?75 per share to commemorate GEL’s platinum jubilee. 
In preparing for these strategic initiatives, the Board also evaluated key 
stakeholders to determine their influence and interest. Shareholders and 
the Board of Directors emerged as primary stakeholders with both high 
influence and interest, necessitating active engagement to secure their 
support. Regulatory authorities were recognized as influential but less 
interested in the immediate plans, requiring regular updates to ensure 
compliance. Customers and employees, while not as powerful, were 
identified as highly interested stakeholders, particularly concerning the 
renewable energy division’s modernization and the entry into the EV 
market. 
Based on the above Case Scenario, answer the Multiple-Choice Questions. 
(i) GEL has approved significant investments in modernizing its renewable
energy division and entering the electric vehicle segment. Analyze the level
of strategy these decisions represent and identify the correct justification for
your answer.
(a) Functional level, as these are related to operational improvements within
the renewable energy division.
(b) Business level, as these initiatives align with the goals of a single division
to gain a competitive edge.
(c) Corporate level, as they involve decisions impacting the overall portfolio
and diversification of GEL.
(d) Operational level, as these focus on day-to-day activities within the
divisions.  (2 Marks)
(ii) With the merger of Nova Green Energy Limited and Zenith Solar Limited into
Synergy Renewables Ltd (SRL), how does this development influence GEL’s
strategic priorities in the renewable energy sector under Porter’s Five Forces
framework?
(a) The merger reduces the threat of substitutes by consolidating competing
technologies.
(b) It increases the bargaining power of buyers by providing them with a
stronger alternative supplier.
(c) It heightens the intensity of industry rivalry by creating a stronger
competitor with greater market share.
(d) The merger strengthens the bargaining power of suppliers due to greater
reliance on key inputs. (2 Marks)
(iii) GEL’s decision to enter the EV market represents a diversification strategy.
Evaluate which type of diversification strategy is being pursued and the
reasoning behind this classification.
(a) Concentric diversification, as the EV market shares synergies with
renewable energy technologies.
264
Page 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)  Galaxy Enterprises Limited (GEL) operates as a diversified
conglomerate with a significant presence in various industries, including 
electronics, packaged foods, textiles, heavy machinery, and renewable 
energy. Leveraging its substantial free reserves of ?85,000 crores, GEL 
has built a strong brand reputation, largely driven by its market 
leadership across multiple sectors. 
In the renewable energy sector, GEL has been the industry leader for 
over 15 years. The division’s recent performance has been exceptional. 
A significant market development occurred when two competitors, Nova 
Green Energy Limited and Zenith Solar Limited – previously ranked 
second and third in market share, respectively – merged to create a new 
entity, Synergy Renewables Ltd (SRL). Following the merger, SRL has 
claimed the top spot in market share, intensifying competition. 
Against this backdrop, the Chairman of GEL convened a strategic 
meeting with the Board of Directors, divisional heads, marketing 
executives, and the Group CFO. The meeting focused on formulating 
growth strategies for the renewable energy division, identifying 
opportunities for diversification, and announcing an interim dividend in 
honour of GEL’s platinum jubilee celebrations. 
Mr. Arvind Malhotra, CEO of the renewable energy division, emphasized 
the industry's slow pace of modernization compared to global standards. 
He highlighted the potential in emerging product categories, such as 
next-generation solar panels, energy storage systems, and advanced 
wind turbines. He proposed a modernization initiative requiring an 
investment of ?7,000 crores. This transformation is projected to reduce 
operational costs by 20% and minimize wastage by 12%. 
The CFO presented an analysis revealing that competitors are unlikely 
to invest in significant upgrades or expansions for the next 6–8 years 
due to financial constraints. In response, the Board approved the 
modernization initiative and allocated an additional ?1,500 crores to 
strengthen the division's supply chain. 
Another proposal discussed was GEL’s entry into the electric vehicle 
(EV) segment. The Board approved this diversification strategy, 
allocating ?8,000 crores to establish a foothold in this rapidly growing 
MODEL TEST PAPER 7
263
market. Additionally, the Board authorized the distribution of an interim 
dividend of ?75 per share to commemorate GEL’s platinum jubilee. 
In preparing for these strategic initiatives, the Board also evaluated key 
stakeholders to determine their influence and interest. Shareholders and 
the Board of Directors emerged as primary stakeholders with both high 
influence and interest, necessitating active engagement to secure their 
support. Regulatory authorities were recognized as influential but less 
interested in the immediate plans, requiring regular updates to ensure 
compliance. Customers and employees, while not as powerful, were 
identified as highly interested stakeholders, particularly concerning the 
renewable energy division’s modernization and the entry into the EV 
market. 
Based on the above Case Scenario, answer the Multiple-Choice Questions. 
(i) GEL has approved significant investments in modernizing its renewable
energy division and entering the electric vehicle segment. Analyze the level
of strategy these decisions represent and identify the correct justification for
your answer.
(a) Functional level, as these are related to operational improvements within
the renewable energy division.
(b) Business level, as these initiatives align with the goals of a single division
to gain a competitive edge.
(c) Corporate level, as they involve decisions impacting the overall portfolio
and diversification of GEL.
(d) Operational level, as these focus on day-to-day activities within the
divisions.  (2 Marks)
(ii) With the merger of Nova Green Energy Limited and Zenith Solar Limited into
Synergy Renewables Ltd (SRL), how does this development influence GEL’s
strategic priorities in the renewable energy sector under Porter’s Five Forces
framework?
(a) The merger reduces the threat of substitutes by consolidating competing
technologies.
(b) It increases the bargaining power of buyers by providing them with a
stronger alternative supplier.
(c) It heightens the intensity of industry rivalry by creating a stronger
competitor with greater market share.
(d) The merger strengthens the bargaining power of suppliers due to greater
reliance on key inputs. (2 Marks)
(iii) GEL’s decision to enter the EV market represents a diversification strategy.
Evaluate which type of diversification strategy is being pursued and the
reasoning behind this classification.
(a) Concentric diversification, as the EV market shares synergies with
renewable energy technologies.
264
(b) Vertical integration, as GEL seeks to integrate upstream or downstream
activities in the automotive value chain.
(c) Horizontal diversification, as GEL expands into a market unrelated to its
existing renewable energy operations.
(d) Conglomerate diversification, as GEL enters an entirely unrelated and
independent business segment. (2 Marks)
(iv) GEL identified shareholders and the Board of Directors as key stakeholders.
Analyze the rationale for classifying them as both high influence and high
interest and how this influences strategic communication.
(a) They directly impact compliance with regulatory standards, necessitating
regular updates.
(b) Their vested interest in dividends and long -term value creation makes
their engagement essential for approval of key initiatives.
(c) They represent the end consumers whose perceptions directly influence
GEL’s market reputation.
(d) Their role in operational execution requires constant communication and
support for strategy implementation. (2 Marks)
(v) By approving modernization in renewable energy and diversification into EVs,
what corporate strategy is GEL pursuing, and how does it position the
company as per Ansoff’s product market growth matrix?
(a) Cost leadership, to lower operational expenses and offer competitive
pricing.
(b) Product differentiation, by leveraging innovation in both existing and new
markets.
(c) Market penetration, through deeper investments in existing product
lines.
(d) Market expansion and diversification, to capture growth opportunities
across unrelated industries. (2 Marks)
(B) Compulsory Application Based Independent MCQs
(i) Harish, a middle manager, is confused about the difference between flexibility
and resilience while working around an uncertain situation in the organization.
Can you help find the right difference between the two?
(a) Flexibility is about adapting to new things quickly, while resilience is
about holding on to the current position of the things for the short-term
as the organisation is confident of its efficiencies.
(b) Flexibility is a subset of resilience, and to be flexible means to be
resilient.
(c) Flexibility is the opposite of resilience, where, if the organisation is
flexible, it changes and if it is resilient it doesn’t change at all.
(d) Both are the same. (2 Marks) 
265
Page 4


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)  Galaxy Enterprises Limited (GEL) operates as a diversified
conglomerate with a significant presence in various industries, including 
electronics, packaged foods, textiles, heavy machinery, and renewable 
energy. Leveraging its substantial free reserves of ?85,000 crores, GEL 
has built a strong brand reputation, largely driven by its market 
leadership across multiple sectors. 
In the renewable energy sector, GEL has been the industry leader for 
over 15 years. The division’s recent performance has been exceptional. 
A significant market development occurred when two competitors, Nova 
Green Energy Limited and Zenith Solar Limited – previously ranked 
second and third in market share, respectively – merged to create a new 
entity, Synergy Renewables Ltd (SRL). Following the merger, SRL has 
claimed the top spot in market share, intensifying competition. 
Against this backdrop, the Chairman of GEL convened a strategic 
meeting with the Board of Directors, divisional heads, marketing 
executives, and the Group CFO. The meeting focused on formulating 
growth strategies for the renewable energy division, identifying 
opportunities for diversification, and announcing an interim dividend in 
honour of GEL’s platinum jubilee celebrations. 
Mr. Arvind Malhotra, CEO of the renewable energy division, emphasized 
the industry's slow pace of modernization compared to global standards. 
He highlighted the potential in emerging product categories, such as 
next-generation solar panels, energy storage systems, and advanced 
wind turbines. He proposed a modernization initiative requiring an 
investment of ?7,000 crores. This transformation is projected to reduce 
operational costs by 20% and minimize wastage by 12%. 
The CFO presented an analysis revealing that competitors are unlikely 
to invest in significant upgrades or expansions for the next 6–8 years 
due to financial constraints. In response, the Board approved the 
modernization initiative and allocated an additional ?1,500 crores to 
strengthen the division's supply chain. 
Another proposal discussed was GEL’s entry into the electric vehicle 
(EV) segment. The Board approved this diversification strategy, 
allocating ?8,000 crores to establish a foothold in this rapidly growing 
MODEL TEST PAPER 7
263
market. Additionally, the Board authorized the distribution of an interim 
dividend of ?75 per share to commemorate GEL’s platinum jubilee. 
In preparing for these strategic initiatives, the Board also evaluated key 
stakeholders to determine their influence and interest. Shareholders and 
the Board of Directors emerged as primary stakeholders with both high 
influence and interest, necessitating active engagement to secure their 
support. Regulatory authorities were recognized as influential but less 
interested in the immediate plans, requiring regular updates to ensure 
compliance. Customers and employees, while not as powerful, were 
identified as highly interested stakeholders, particularly concerning the 
renewable energy division’s modernization and the entry into the EV 
market. 
Based on the above Case Scenario, answer the Multiple-Choice Questions. 
(i) GEL has approved significant investments in modernizing its renewable
energy division and entering the electric vehicle segment. Analyze the level
of strategy these decisions represent and identify the correct justification for
your answer.
(a) Functional level, as these are related to operational improvements within
the renewable energy division.
(b) Business level, as these initiatives align with the goals of a single division
to gain a competitive edge.
(c) Corporate level, as they involve decisions impacting the overall portfolio
and diversification of GEL.
(d) Operational level, as these focus on day-to-day activities within the
divisions.  (2 Marks)
(ii) With the merger of Nova Green Energy Limited and Zenith Solar Limited into
Synergy Renewables Ltd (SRL), how does this development influence GEL’s
strategic priorities in the renewable energy sector under Porter’s Five Forces
framework?
(a) The merger reduces the threat of substitutes by consolidating competing
technologies.
(b) It increases the bargaining power of buyers by providing them with a
stronger alternative supplier.
(c) It heightens the intensity of industry rivalry by creating a stronger
competitor with greater market share.
(d) The merger strengthens the bargaining power of suppliers due to greater
reliance on key inputs. (2 Marks)
(iii) GEL’s decision to enter the EV market represents a diversification strategy.
Evaluate which type of diversification strategy is being pursued and the
reasoning behind this classification.
(a) Concentric diversification, as the EV market shares synergies with
renewable energy technologies.
264
(b) Vertical integration, as GEL seeks to integrate upstream or downstream
activities in the automotive value chain.
(c) Horizontal diversification, as GEL expands into a market unrelated to its
existing renewable energy operations.
(d) Conglomerate diversification, as GEL enters an entirely unrelated and
independent business segment. (2 Marks)
(iv) GEL identified shareholders and the Board of Directors as key stakeholders.
Analyze the rationale for classifying them as both high influence and high
interest and how this influences strategic communication.
(a) They directly impact compliance with regulatory standards, necessitating
regular updates.
(b) Their vested interest in dividends and long -term value creation makes
their engagement essential for approval of key initiatives.
(c) They represent the end consumers whose perceptions directly influence
GEL’s market reputation.
(d) Their role in operational execution requires constant communication and
support for strategy implementation. (2 Marks)
(v) By approving modernization in renewable energy and diversification into EVs,
what corporate strategy is GEL pursuing, and how does it position the
company as per Ansoff’s product market growth matrix?
(a) Cost leadership, to lower operational expenses and offer competitive
pricing.
(b) Product differentiation, by leveraging innovation in both existing and new
markets.
(c) Market penetration, through deeper investments in existing product
lines.
(d) Market expansion and diversification, to capture growth opportunities
across unrelated industries. (2 Marks)
(B) Compulsory Application Based Independent MCQs
(i) Harish, a middle manager, is confused about the difference between flexibility
and resilience while working around an uncertain situation in the organization.
Can you help find the right difference between the two?
(a) Flexibility is about adapting to new things quickly, while resilience is
about holding on to the current position of the things for the short-term
as the organisation is confident of its efficiencies.
(b) Flexibility is a subset of resilience, and to be flexible means to be
resilient.
(c) Flexibility is the opposite of resilience, where, if the organisation is
flexible, it changes and if it is resilient it doesn’t change at all.
(d) Both are the same. (2 Marks) 
265
(ii) Suman, the marketing head of Jalwa Music Co., was doing research on the
online music streaming business in India for her new age music for
youngsters. She analyzed that though the players in the market were
innovating rapidly, it was difficult to maintain a sustainable competitive
advantage. Which aspect of strategic management best reflects this
challenge?
(a) The need for continuous innovation.
(b) The importance of understanding the competitive landscape.
(c) The dynamic and unpredictable nature of the industry.
(d) The difficulty in estimating competitors' responses. (2 Marks) 
(iii) During which stage of the Product Life Cycle would you typically expect the
highest marketing expenditure per unit sold as companies aggressively
promote their product?
(a) Maturity
(b) Introduction
(c) Growth
(d) Decline (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)  Jupiter Electronics Ltd. is known for its ability to come out with path-
breaking products. Though the work environment at Jupiters is relaxed 
and casual, there is a very strong commitment to deadlines. The 
employees believe in a “work hard play hard" ethic. The organisation has 
moved away from formal and hierarchical set up to a more results-driven 
approach. Employees are committed to strategies and work towards 
achieving them. They guard innovations, maintain confidentiality and 
secrecy in their work. They are closely related to values, practices, and 
norms of organisations. What aspects of an organization are being 
discussed? Explain. (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)
(c) A business consultancy firm focuses on providing specialized services
in environmental management consultancy. It assists client companies
in establishing robust environmental management accounting systems
266
Page 5


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)  Galaxy Enterprises Limited (GEL) operates as a diversified
conglomerate with a significant presence in various industries, including 
electronics, packaged foods, textiles, heavy machinery, and renewable 
energy. Leveraging its substantial free reserves of ?85,000 crores, GEL 
has built a strong brand reputation, largely driven by its market 
leadership across multiple sectors. 
In the renewable energy sector, GEL has been the industry leader for 
over 15 years. The division’s recent performance has been exceptional. 
A significant market development occurred when two competitors, Nova 
Green Energy Limited and Zenith Solar Limited – previously ranked 
second and third in market share, respectively – merged to create a new 
entity, Synergy Renewables Ltd (SRL). Following the merger, SRL has 
claimed the top spot in market share, intensifying competition. 
Against this backdrop, the Chairman of GEL convened a strategic 
meeting with the Board of Directors, divisional heads, marketing 
executives, and the Group CFO. The meeting focused on formulating 
growth strategies for the renewable energy division, identifying 
opportunities for diversification, and announcing an interim dividend in 
honour of GEL’s platinum jubilee celebrations. 
Mr. Arvind Malhotra, CEO of the renewable energy division, emphasized 
the industry's slow pace of modernization compared to global standards. 
He highlighted the potential in emerging product categories, such as 
next-generation solar panels, energy storage systems, and advanced 
wind turbines. He proposed a modernization initiative requiring an 
investment of ?7,000 crores. This transformation is projected to reduce 
operational costs by 20% and minimize wastage by 12%. 
The CFO presented an analysis revealing that competitors are unlikely 
to invest in significant upgrades or expansions for the next 6–8 years 
due to financial constraints. In response, the Board approved the 
modernization initiative and allocated an additional ?1,500 crores to 
strengthen the division's supply chain. 
Another proposal discussed was GEL’s entry into the electric vehicle 
(EV) segment. The Board approved this diversification strategy, 
allocating ?8,000 crores to establish a foothold in this rapidly growing 
MODEL TEST PAPER 7
263
market. Additionally, the Board authorized the distribution of an interim 
dividend of ?75 per share to commemorate GEL’s platinum jubilee. 
In preparing for these strategic initiatives, the Board also evaluated key 
stakeholders to determine their influence and interest. Shareholders and 
the Board of Directors emerged as primary stakeholders with both high 
influence and interest, necessitating active engagement to secure their 
support. Regulatory authorities were recognized as influential but less 
interested in the immediate plans, requiring regular updates to ensure 
compliance. Customers and employees, while not as powerful, were 
identified as highly interested stakeholders, particularly concerning the 
renewable energy division’s modernization and the entry into the EV 
market. 
Based on the above Case Scenario, answer the Multiple-Choice Questions. 
(i) GEL has approved significant investments in modernizing its renewable
energy division and entering the electric vehicle segment. Analyze the level
of strategy these decisions represent and identify the correct justification for
your answer.
(a) Functional level, as these are related to operational improvements within
the renewable energy division.
(b) Business level, as these initiatives align with the goals of a single division
to gain a competitive edge.
(c) Corporate level, as they involve decisions impacting the overall portfolio
and diversification of GEL.
(d) Operational level, as these focus on day-to-day activities within the
divisions.  (2 Marks)
(ii) With the merger of Nova Green Energy Limited and Zenith Solar Limited into
Synergy Renewables Ltd (SRL), how does this development influence GEL’s
strategic priorities in the renewable energy sector under Porter’s Five Forces
framework?
(a) The merger reduces the threat of substitutes by consolidating competing
technologies.
(b) It increases the bargaining power of buyers by providing them with a
stronger alternative supplier.
(c) It heightens the intensity of industry rivalry by creating a stronger
competitor with greater market share.
(d) The merger strengthens the bargaining power of suppliers due to greater
reliance on key inputs. (2 Marks)
(iii) GEL’s decision to enter the EV market represents a diversification strategy.
Evaluate which type of diversification strategy is being pursued and the
reasoning behind this classification.
(a) Concentric diversification, as the EV market shares synergies with
renewable energy technologies.
264
(b) Vertical integration, as GEL seeks to integrate upstream or downstream
activities in the automotive value chain.
(c) Horizontal diversification, as GEL expands into a market unrelated to its
existing renewable energy operations.
(d) Conglomerate diversification, as GEL enters an entirely unrelated and
independent business segment. (2 Marks)
(iv) GEL identified shareholders and the Board of Directors as key stakeholders.
Analyze the rationale for classifying them as both high influence and high
interest and how this influences strategic communication.
(a) They directly impact compliance with regulatory standards, necessitating
regular updates.
(b) Their vested interest in dividends and long -term value creation makes
their engagement essential for approval of key initiatives.
(c) They represent the end consumers whose perceptions directly influence
GEL’s market reputation.
(d) Their role in operational execution requires constant communication and
support for strategy implementation. (2 Marks)
(v) By approving modernization in renewable energy and diversification into EVs,
what corporate strategy is GEL pursuing, and how does it position the
company as per Ansoff’s product market growth matrix?
(a) Cost leadership, to lower operational expenses and offer competitive
pricing.
(b) Product differentiation, by leveraging innovation in both existing and new
markets.
(c) Market penetration, through deeper investments in existing product
lines.
(d) Market expansion and diversification, to capture growth opportunities
across unrelated industries. (2 Marks)
(B) Compulsory Application Based Independent MCQs
(i) Harish, a middle manager, is confused about the difference between flexibility
and resilience while working around an uncertain situation in the organization.
Can you help find the right difference between the two?
(a) Flexibility is about adapting to new things quickly, while resilience is
about holding on to the current position of the things for the short-term
as the organisation is confident of its efficiencies.
(b) Flexibility is a subset of resilience, and to be flexible means to be
resilient.
(c) Flexibility is the opposite of resilience, where, if the organisation is
flexible, it changes and if it is resilient it doesn’t change at all.
(d) Both are the same. (2 Marks) 
265
(ii) Suman, the marketing head of Jalwa Music Co., was doing research on the
online music streaming business in India for her new age music for
youngsters. She analyzed that though the players in the market were
innovating rapidly, it was difficult to maintain a sustainable competitive
advantage. Which aspect of strategic management best reflects this
challenge?
(a) The need for continuous innovation.
(b) The importance of understanding the competitive landscape.
(c) The dynamic and unpredictable nature of the industry.
(d) The difficulty in estimating competitors' responses. (2 Marks) 
(iii) During which stage of the Product Life Cycle would you typically expect the
highest marketing expenditure per unit sold as companies aggressively
promote their product?
(a) Maturity
(b) Introduction
(c) Growth
(d) Decline (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)  Jupiter Electronics Ltd. is known for its ability to come out with path-
breaking products. Though the work environment at Jupiters is relaxed 
and casual, there is a very strong commitment to deadlines. The 
employees believe in a “work hard play hard" ethic. The organisation has 
moved away from formal and hierarchical set up to a more results-driven 
approach. Employees are committed to strategies and work towards 
achieving them. They guard innovations, maintain confidentiality and 
secrecy in their work. They are closely related to values, practices, and 
norms of organisations. What aspects of an organization are being 
discussed? Explain. (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)
(c) A business consultancy firm focuses on providing specialized services
in environmental management consultancy. It assists client companies
in establishing robust environmental management accounting systems
266
for the measurement, recording, and analysis of environmental costs. A 
significant portion of the firm’s operations involve conducting 
environmental audits to verify compliance with international assurance 
standards in environmental management—an exclusive service not 
offered by its competitors. While the firm also undertakes other 
management consultancy projects, these constitute only a minor share 
of its total annual revenue. Identify the strategy categories by Michael 
Porter which best describes the strategy of this firm. (5 Marks) 
2. (a)  Analyze the role of Key Success Factors (KSFs) in determining
competitive success within an industry. (5 Marks) 
(b) How the 'Strategic Business Unit’ (SBU), structure becomes imperative
in an organization with increase in number, size and diversity of
divisions? (5 Marks)
3. (a)  Rohit Patel has a small chemist shop in the central part of Ahmedabad.
What kind of competencies Rohit can build to gain competitive 
advantage over online medicine sellers? (5 Marks) 
(b) Distinguish between Vision and Mission. (5 Marks) 
4. (a)  Vikram Patel owns a chain of ten bookstores across the Mumbai region.
Three of these stores were launched in the past two years. He has 
always believed in strategic management and enjoyed robust sales of 
books, magazines, and educational materials until about five years ago. 
However, with the increasing preference for online shopping, the sales 
at his physical stores have declined by approximately sixty percent over 
the last five years. Analyze Vikram Patel's current position in light of the 
limitations of strategic management. (5 Marks) 
(b) Explain the strategic implications of each of the following types of
business in a corporate portfolio:
(a) Stars (b) Question Marks  (c)  Cash Cows  (d)  Dogs
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) 
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