Strategic Management Model Test Paper - 8 (Questions) - CA Intermediate PDF Download

 Page 1


MODEL TEST PAPER 8 
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)  Once upon a time in the land of sun, sand, and vibrant cultures, there
existed a company named "MuseoGoa" - a company that managed 
museums in the beautiful state of Goa. MuseoGoa had a vision to 
celebrate the rich history and culture of Goa, but their journey was not 
without its fair share of challenges. 
MuseoGoa had chosen a picturesque location in a quaint village to build 
their first museum. However, this initial enthusiasm was met with an 
uproar from the local communities. The villagers were concerned about 
the impact on their way of life and traditions. They worried that the influx 
of tourists might disrupt their peaceful existence. 
To address this challenge, MuseoGoa applied Mendelow's matrix, 
identifying the local communities as key stakeholders. They decided to 
engage in open dialogues, understanding and respecting the villagers' 
concerns. MuseoGoa initiated community-building activities, such as 
involving locals in museum operations, supporting local artisans, and 
organizing cultural events that showcased the village's heritage. Slowly 
but steadily, the company transformed from being perceived as a threat 
to a valued partner within the community. 
While MuseoGoa had successfully resolved their initial issues with the 
local community, they faced another challenge. Their location, although 
idyllic, was a bit off the beaten path. Tourists typically preferred the 
bustling beaches closer to the city, and this posed a real challenge. 
MuseoGoa decided to employ a pricing strategy. They priced their tickets 
affordably, significantly cheaper than the city's attractions. This strategy 
attracted budget-conscious tourists who were looking for unique 
experiences in Goa without burning a hole in their pockets. As word 
spread about the cultural gem tucked away in the village, visitors started 
flocking in, drawn not just by the museum's charm but also the 
economical ticket prices. 
In the age of social media, MuseoGoa knew that word-of-mouth was no 
longer limited to whispers. They tapped into the power of social media 
to promote their unique museum experience. MuseoGoa ran interactive 
campaigns, encouraging visitors to share their experiences on various 
platforms. One particular Instagram post featuring a vibrant Goan mural 
in the museum went viral. This was the turning point. The picture-perfect 
aesthetics of the museum attracted influencers, bloggers, and travel 
enthusiasts, making MuseoGoa a social media sensation. Visitors came 
268
Page 2


MODEL TEST PAPER 8 
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)  Once upon a time in the land of sun, sand, and vibrant cultures, there
existed a company named "MuseoGoa" - a company that managed 
museums in the beautiful state of Goa. MuseoGoa had a vision to 
celebrate the rich history and culture of Goa, but their journey was not 
without its fair share of challenges. 
MuseoGoa had chosen a picturesque location in a quaint village to build 
their first museum. However, this initial enthusiasm was met with an 
uproar from the local communities. The villagers were concerned about 
the impact on their way of life and traditions. They worried that the influx 
of tourists might disrupt their peaceful existence. 
To address this challenge, MuseoGoa applied Mendelow's matrix, 
identifying the local communities as key stakeholders. They decided to 
engage in open dialogues, understanding and respecting the villagers' 
concerns. MuseoGoa initiated community-building activities, such as 
involving locals in museum operations, supporting local artisans, and 
organizing cultural events that showcased the village's heritage. Slowly 
but steadily, the company transformed from being perceived as a threat 
to a valued partner within the community. 
While MuseoGoa had successfully resolved their initial issues with the 
local community, they faced another challenge. Their location, although 
idyllic, was a bit off the beaten path. Tourists typically preferred the 
bustling beaches closer to the city, and this posed a real challenge. 
MuseoGoa decided to employ a pricing strategy. They priced their tickets 
affordably, significantly cheaper than the city's attractions. This strategy 
attracted budget-conscious tourists who were looking for unique 
experiences in Goa without burning a hole in their pockets. As word 
spread about the cultural gem tucked away in the village, visitors started 
flocking in, drawn not just by the museum's charm but also the 
economical ticket prices. 
In the age of social media, MuseoGoa knew that word-of-mouth was no 
longer limited to whispers. They tapped into the power of social media 
to promote their unique museum experience. MuseoGoa ran interactive 
campaigns, encouraging visitors to share their experiences on various 
platforms. One particular Instagram post featuring a vibrant Goan mural 
in the museum went viral. This was the turning point. The picture-perfect 
aesthetics of the museum attracted influencers, bloggers, and travel 
enthusiasts, making MuseoGoa a social media sensation. Visitors came 
268
pouring in, not just from India but from across the globe, eager to capture 
their own moments at the "Instagrammable Museum of Goa." 
With success came ambition. MuseoGoa decided to expand its footprint 
beyond Goa. To guide this expansion, they conducted a strategy audit 
and trend analysis. They identified emerging cultural and tourism trends 
and found potential markets in Pune and Trivandrum. 
In Pune, MuseoGoa curated a special exhibition that celebrated the 
fusion of Goan and Maharashtrian cultures. They strategically partnered 
with local influencers and travel agencies to market the new experience. 
The expansion into Pune was met with resounding success. 
For Trivandrum, MuseoGoa recognized the importance of local traditions 
and the distinct flavor of Kerala. They tailored their offerings to 
harmonize with the regional culture. MuseoGoa became the gateway for 
tourists to explore Kerala's rich heritage, with the museum acting as a 
bridge between Goa and Kerala's cultural tapestry. 
MuseoGoa's journey from initial uproar to expansion was a testament to 
their commitment to community building, strategic pricing, social media 
savvy, and a keen eye for trends. The company continued to flourish, 
celebrating the diverse cultural tapestry of India and making history 
come alive in every location they touched. 
Based on the above Case Scenario, answer the Multiple Choice 
Questions. 
(i) Which strategic management concept did MuseoGoa use to
address the initial concerns of the local community?
(a) SWOT analysis
(b) Mendelow's matrix
(c) Cost leadership strategy
(d) Porter's Five Forces model (2 Marks) 
(ii) MuseoGoa's idyllic location in a quaint village posed a challenge as
tourists preferred beaches closer to the city. To attract visitors,
MuseoGoa priced their tickets affordably, cheaper than city
attractions, drawing budget-conscious tourists looking for unique
experiences. What business strategy did MuseoGoa employ to
attract more tourists?
(a) Cost leadership strategy
(b) Differentiation strategy
(c) Focus strategy
(d) Diversification strategy (2 Marks) 
(iii) How did MuseoGoa approach its expansion into new markets such
as Pune and Trivandrum?
(a) Outsourcing strategy
(b) Franchising strategy
269
Page 3


MODEL TEST PAPER 8 
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)  Once upon a time in the land of sun, sand, and vibrant cultures, there
existed a company named "MuseoGoa" - a company that managed 
museums in the beautiful state of Goa. MuseoGoa had a vision to 
celebrate the rich history and culture of Goa, but their journey was not 
without its fair share of challenges. 
MuseoGoa had chosen a picturesque location in a quaint village to build 
their first museum. However, this initial enthusiasm was met with an 
uproar from the local communities. The villagers were concerned about 
the impact on their way of life and traditions. They worried that the influx 
of tourists might disrupt their peaceful existence. 
To address this challenge, MuseoGoa applied Mendelow's matrix, 
identifying the local communities as key stakeholders. They decided to 
engage in open dialogues, understanding and respecting the villagers' 
concerns. MuseoGoa initiated community-building activities, such as 
involving locals in museum operations, supporting local artisans, and 
organizing cultural events that showcased the village's heritage. Slowly 
but steadily, the company transformed from being perceived as a threat 
to a valued partner within the community. 
While MuseoGoa had successfully resolved their initial issues with the 
local community, they faced another challenge. Their location, although 
idyllic, was a bit off the beaten path. Tourists typically preferred the 
bustling beaches closer to the city, and this posed a real challenge. 
MuseoGoa decided to employ a pricing strategy. They priced their tickets 
affordably, significantly cheaper than the city's attractions. This strategy 
attracted budget-conscious tourists who were looking for unique 
experiences in Goa without burning a hole in their pockets. As word 
spread about the cultural gem tucked away in the village, visitors started 
flocking in, drawn not just by the museum's charm but also the 
economical ticket prices. 
In the age of social media, MuseoGoa knew that word-of-mouth was no 
longer limited to whispers. They tapped into the power of social media 
to promote their unique museum experience. MuseoGoa ran interactive 
campaigns, encouraging visitors to share their experiences on various 
platforms. One particular Instagram post featuring a vibrant Goan mural 
in the museum went viral. This was the turning point. The picture-perfect 
aesthetics of the museum attracted influencers, bloggers, and travel 
enthusiasts, making MuseoGoa a social media sensation. Visitors came 
268
pouring in, not just from India but from across the globe, eager to capture 
their own moments at the "Instagrammable Museum of Goa." 
With success came ambition. MuseoGoa decided to expand its footprint 
beyond Goa. To guide this expansion, they conducted a strategy audit 
and trend analysis. They identified emerging cultural and tourism trends 
and found potential markets in Pune and Trivandrum. 
In Pune, MuseoGoa curated a special exhibition that celebrated the 
fusion of Goan and Maharashtrian cultures. They strategically partnered 
with local influencers and travel agencies to market the new experience. 
The expansion into Pune was met with resounding success. 
For Trivandrum, MuseoGoa recognized the importance of local traditions 
and the distinct flavor of Kerala. They tailored their offerings to 
harmonize with the regional culture. MuseoGoa became the gateway for 
tourists to explore Kerala's rich heritage, with the museum acting as a 
bridge between Goa and Kerala's cultural tapestry. 
MuseoGoa's journey from initial uproar to expansion was a testament to 
their commitment to community building, strategic pricing, social media 
savvy, and a keen eye for trends. The company continued to flourish, 
celebrating the diverse cultural tapestry of India and making history 
come alive in every location they touched. 
Based on the above Case Scenario, answer the Multiple Choice 
Questions. 
(i) Which strategic management concept did MuseoGoa use to
address the initial concerns of the local community?
(a) SWOT analysis
(b) Mendelow's matrix
(c) Cost leadership strategy
(d) Porter's Five Forces model (2 Marks) 
(ii) MuseoGoa's idyllic location in a quaint village posed a challenge as
tourists preferred beaches closer to the city. To attract visitors,
MuseoGoa priced their tickets affordably, cheaper than city
attractions, drawing budget-conscious tourists looking for unique
experiences. What business strategy did MuseoGoa employ to
attract more tourists?
(a) Cost leadership strategy
(b) Differentiation strategy
(c) Focus strategy
(d) Diversification strategy (2 Marks) 
(iii) How did MuseoGoa approach its expansion into new markets such
as Pune and Trivandrum?
(a) Outsourcing strategy
(b) Franchising strategy
269
(c) Product diversification strategy 
(d) Market development strategy  (2 Marks) 
(iv) Which element of the 7S McKinsey model is demonstrated by 
MuseoGoa's strategic use of social media and pricing strategies to 
attract visitors? 
(a)  Style 
(b)  Strategy 
(c)  Shared Values 
(d)  Skills (2 Marks) 
(v)  What played a crucial role in MuseoGoa's success in Pune and 
Trivandrum? 
(a)  Strategic partnerships 
(b)  Aggressive advertising 
(c)  Product differentiation 
(d)  Vertical integration  (2 Marks) 
(B)  Compulsory Application Based Independent MCQs 
(i)  Jaago Lights, a successful brand from Jalandhar, aimed to enter 
the Middle East market by teaming up with major industry players. 
They needed to reorganize internal operations and refine product 
designs, facing pressure to expand quickly and turbulence in 
existing operations. What is the primary limitation of strategic 
management highlighted in the business case? 
(a)  Lack of senior management support 
(b)  Time-consuming and complex nature 
(c)  Inability to adapt to market changes 
(d)  Excessive focus on short-term goals (2 Marks) 
(ii) A traditional desi ghee company modernized its production and 
introduced pro-biotic desi ghee, facing initial market doubts. 
Aggressive marketing campaigns highlighted its benefits, gaining 
acceptance. During which stage of the product life cycle did the 
desi ghee company face doubts but gained acceptance through 
aggressive marketing campaigns? 
(a)  Introduction stage 
(b)  Growth stage 
(c)  Maturity stage 
(d)  Decline stage (2 Marks) 
(iii)  Alpha Corp is undergoing a shift to foster a culture that encourages 
innovative thinking and team collaboration. To achieve this, the 
company is focusing on how leaders interact with their teams and 
270
Page 4


MODEL TEST PAPER 8 
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)  Once upon a time in the land of sun, sand, and vibrant cultures, there
existed a company named "MuseoGoa" - a company that managed 
museums in the beautiful state of Goa. MuseoGoa had a vision to 
celebrate the rich history and culture of Goa, but their journey was not 
without its fair share of challenges. 
MuseoGoa had chosen a picturesque location in a quaint village to build 
their first museum. However, this initial enthusiasm was met with an 
uproar from the local communities. The villagers were concerned about 
the impact on their way of life and traditions. They worried that the influx 
of tourists might disrupt their peaceful existence. 
To address this challenge, MuseoGoa applied Mendelow's matrix, 
identifying the local communities as key stakeholders. They decided to 
engage in open dialogues, understanding and respecting the villagers' 
concerns. MuseoGoa initiated community-building activities, such as 
involving locals in museum operations, supporting local artisans, and 
organizing cultural events that showcased the village's heritage. Slowly 
but steadily, the company transformed from being perceived as a threat 
to a valued partner within the community. 
While MuseoGoa had successfully resolved their initial issues with the 
local community, they faced another challenge. Their location, although 
idyllic, was a bit off the beaten path. Tourists typically preferred the 
bustling beaches closer to the city, and this posed a real challenge. 
MuseoGoa decided to employ a pricing strategy. They priced their tickets 
affordably, significantly cheaper than the city's attractions. This strategy 
attracted budget-conscious tourists who were looking for unique 
experiences in Goa without burning a hole in their pockets. As word 
spread about the cultural gem tucked away in the village, visitors started 
flocking in, drawn not just by the museum's charm but also the 
economical ticket prices. 
In the age of social media, MuseoGoa knew that word-of-mouth was no 
longer limited to whispers. They tapped into the power of social media 
to promote their unique museum experience. MuseoGoa ran interactive 
campaigns, encouraging visitors to share their experiences on various 
platforms. One particular Instagram post featuring a vibrant Goan mural 
in the museum went viral. This was the turning point. The picture-perfect 
aesthetics of the museum attracted influencers, bloggers, and travel 
enthusiasts, making MuseoGoa a social media sensation. Visitors came 
268
pouring in, not just from India but from across the globe, eager to capture 
their own moments at the "Instagrammable Museum of Goa." 
With success came ambition. MuseoGoa decided to expand its footprint 
beyond Goa. To guide this expansion, they conducted a strategy audit 
and trend analysis. They identified emerging cultural and tourism trends 
and found potential markets in Pune and Trivandrum. 
In Pune, MuseoGoa curated a special exhibition that celebrated the 
fusion of Goan and Maharashtrian cultures. They strategically partnered 
with local influencers and travel agencies to market the new experience. 
The expansion into Pune was met with resounding success. 
For Trivandrum, MuseoGoa recognized the importance of local traditions 
and the distinct flavor of Kerala. They tailored their offerings to 
harmonize with the regional culture. MuseoGoa became the gateway for 
tourists to explore Kerala's rich heritage, with the museum acting as a 
bridge between Goa and Kerala's cultural tapestry. 
MuseoGoa's journey from initial uproar to expansion was a testament to 
their commitment to community building, strategic pricing, social media 
savvy, and a keen eye for trends. The company continued to flourish, 
celebrating the diverse cultural tapestry of India and making history 
come alive in every location they touched. 
Based on the above Case Scenario, answer the Multiple Choice 
Questions. 
(i) Which strategic management concept did MuseoGoa use to
address the initial concerns of the local community?
(a) SWOT analysis
(b) Mendelow's matrix
(c) Cost leadership strategy
(d) Porter's Five Forces model (2 Marks) 
(ii) MuseoGoa's idyllic location in a quaint village posed a challenge as
tourists preferred beaches closer to the city. To attract visitors,
MuseoGoa priced their tickets affordably, cheaper than city
attractions, drawing budget-conscious tourists looking for unique
experiences. What business strategy did MuseoGoa employ to
attract more tourists?
(a) Cost leadership strategy
(b) Differentiation strategy
(c) Focus strategy
(d) Diversification strategy (2 Marks) 
(iii) How did MuseoGoa approach its expansion into new markets such
as Pune and Trivandrum?
(a) Outsourcing strategy
(b) Franchising strategy
269
(c) Product diversification strategy 
(d) Market development strategy  (2 Marks) 
(iv) Which element of the 7S McKinsey model is demonstrated by 
MuseoGoa's strategic use of social media and pricing strategies to 
attract visitors? 
(a)  Style 
(b)  Strategy 
(c)  Shared Values 
(d)  Skills (2 Marks) 
(v)  What played a crucial role in MuseoGoa's success in Pune and 
Trivandrum? 
(a)  Strategic partnerships 
(b)  Aggressive advertising 
(c)  Product differentiation 
(d)  Vertical integration  (2 Marks) 
(B)  Compulsory Application Based Independent MCQs 
(i)  Jaago Lights, a successful brand from Jalandhar, aimed to enter 
the Middle East market by teaming up with major industry players. 
They needed to reorganize internal operations and refine product 
designs, facing pressure to expand quickly and turbulence in 
existing operations. What is the primary limitation of strategic 
management highlighted in the business case? 
(a)  Lack of senior management support 
(b)  Time-consuming and complex nature 
(c)  Inability to adapt to market changes 
(d)  Excessive focus on short-term goals (2 Marks) 
(ii) A traditional desi ghee company modernized its production and 
introduced pro-biotic desi ghee, facing initial market doubts. 
Aggressive marketing campaigns highlighted its benefits, gaining 
acceptance. During which stage of the product life cycle did the 
desi ghee company face doubts but gained acceptance through 
aggressive marketing campaigns? 
(a)  Introduction stage 
(b)  Growth stage 
(c)  Maturity stage 
(d)  Decline stage (2 Marks) 
(iii)  Alpha Corp is undergoing a shift to foster a culture that encourages 
innovative thinking and team collaboration. To achieve this, the 
company is focusing on how leaders interact with their teams and 
270
set examples for behavior, aiming to align leadership practices with 
desired cultural outcomes. Which aspect of AlphaCorp is being 
adjusted to foster a culture of innovation and collaboration? 
(a) Structure
(b) Systems
(c) Skills
(d) Style (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)  Tech Innovators Inc., a rapidly expanding technology company, aims to
lead in artificial intelligence (AI) and machine learning (ML). With recent 
growth, the company is evaluating which organizational structure will 
best support its vision for innovation and leadership in AI technologies. 
They are considering three options: the Functional and Divisional 
Relationship for specialization, the Horizontal Relationship for flat, 
collaborative management, and the Matrix Relationship for cross-
functional teams. Which of these relationships—Functional and 
Divisional, Horizontal, or Matrix—will most effectively achieve Tech 
Innovators Inc.’s strategic goals, and why? (5 Marks) 
(b) Rajiv Arya owns an electrical appliance company specializing in the
manufacture of domestic vacuum cleaners. The market is competitive,
with four other manufacturers offering similar products and achieving
comparable sales volumes. Additionally, these rival firms hold several
patents related to the vacuum cleaner technology. The supplier base for
raw materials is extensive, with multiple suppliers available. Identify and
explain the significant forces from Porter’s Five Forces framework that
are relevant to Rajiv Arya’s company. (5 Marks)
(c) 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)
2. (a)  Strategic management helps an organization to work through changes
in the environment to gain competitive advantage. In light of statement 
discuss its benefits. (5 Marks) 
271
Page 5


MODEL TEST PAPER 8 
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)  Once upon a time in the land of sun, sand, and vibrant cultures, there
existed a company named "MuseoGoa" - a company that managed 
museums in the beautiful state of Goa. MuseoGoa had a vision to 
celebrate the rich history and culture of Goa, but their journey was not 
without its fair share of challenges. 
MuseoGoa had chosen a picturesque location in a quaint village to build 
their first museum. However, this initial enthusiasm was met with an 
uproar from the local communities. The villagers were concerned about 
the impact on their way of life and traditions. They worried that the influx 
of tourists might disrupt their peaceful existence. 
To address this challenge, MuseoGoa applied Mendelow's matrix, 
identifying the local communities as key stakeholders. They decided to 
engage in open dialogues, understanding and respecting the villagers' 
concerns. MuseoGoa initiated community-building activities, such as 
involving locals in museum operations, supporting local artisans, and 
organizing cultural events that showcased the village's heritage. Slowly 
but steadily, the company transformed from being perceived as a threat 
to a valued partner within the community. 
While MuseoGoa had successfully resolved their initial issues with the 
local community, they faced another challenge. Their location, although 
idyllic, was a bit off the beaten path. Tourists typically preferred the 
bustling beaches closer to the city, and this posed a real challenge. 
MuseoGoa decided to employ a pricing strategy. They priced their tickets 
affordably, significantly cheaper than the city's attractions. This strategy 
attracted budget-conscious tourists who were looking for unique 
experiences in Goa without burning a hole in their pockets. As word 
spread about the cultural gem tucked away in the village, visitors started 
flocking in, drawn not just by the museum's charm but also the 
economical ticket prices. 
In the age of social media, MuseoGoa knew that word-of-mouth was no 
longer limited to whispers. They tapped into the power of social media 
to promote their unique museum experience. MuseoGoa ran interactive 
campaigns, encouraging visitors to share their experiences on various 
platforms. One particular Instagram post featuring a vibrant Goan mural 
in the museum went viral. This was the turning point. The picture-perfect 
aesthetics of the museum attracted influencers, bloggers, and travel 
enthusiasts, making MuseoGoa a social media sensation. Visitors came 
268
pouring in, not just from India but from across the globe, eager to capture 
their own moments at the "Instagrammable Museum of Goa." 
With success came ambition. MuseoGoa decided to expand its footprint 
beyond Goa. To guide this expansion, they conducted a strategy audit 
and trend analysis. They identified emerging cultural and tourism trends 
and found potential markets in Pune and Trivandrum. 
In Pune, MuseoGoa curated a special exhibition that celebrated the 
fusion of Goan and Maharashtrian cultures. They strategically partnered 
with local influencers and travel agencies to market the new experience. 
The expansion into Pune was met with resounding success. 
For Trivandrum, MuseoGoa recognized the importance of local traditions 
and the distinct flavor of Kerala. They tailored their offerings to 
harmonize with the regional culture. MuseoGoa became the gateway for 
tourists to explore Kerala's rich heritage, with the museum acting as a 
bridge between Goa and Kerala's cultural tapestry. 
MuseoGoa's journey from initial uproar to expansion was a testament to 
their commitment to community building, strategic pricing, social media 
savvy, and a keen eye for trends. The company continued to flourish, 
celebrating the diverse cultural tapestry of India and making history 
come alive in every location they touched. 
Based on the above Case Scenario, answer the Multiple Choice 
Questions. 
(i) Which strategic management concept did MuseoGoa use to
address the initial concerns of the local community?
(a) SWOT analysis
(b) Mendelow's matrix
(c) Cost leadership strategy
(d) Porter's Five Forces model (2 Marks) 
(ii) MuseoGoa's idyllic location in a quaint village posed a challenge as
tourists preferred beaches closer to the city. To attract visitors,
MuseoGoa priced their tickets affordably, cheaper than city
attractions, drawing budget-conscious tourists looking for unique
experiences. What business strategy did MuseoGoa employ to
attract more tourists?
(a) Cost leadership strategy
(b) Differentiation strategy
(c) Focus strategy
(d) Diversification strategy (2 Marks) 
(iii) How did MuseoGoa approach its expansion into new markets such
as Pune and Trivandrum?
(a) Outsourcing strategy
(b) Franchising strategy
269
(c) Product diversification strategy 
(d) Market development strategy  (2 Marks) 
(iv) Which element of the 7S McKinsey model is demonstrated by 
MuseoGoa's strategic use of social media and pricing strategies to 
attract visitors? 
(a)  Style 
(b)  Strategy 
(c)  Shared Values 
(d)  Skills (2 Marks) 
(v)  What played a crucial role in MuseoGoa's success in Pune and 
Trivandrum? 
(a)  Strategic partnerships 
(b)  Aggressive advertising 
(c)  Product differentiation 
(d)  Vertical integration  (2 Marks) 
(B)  Compulsory Application Based Independent MCQs 
(i)  Jaago Lights, a successful brand from Jalandhar, aimed to enter 
the Middle East market by teaming up with major industry players. 
They needed to reorganize internal operations and refine product 
designs, facing pressure to expand quickly and turbulence in 
existing operations. What is the primary limitation of strategic 
management highlighted in the business case? 
(a)  Lack of senior management support 
(b)  Time-consuming and complex nature 
(c)  Inability to adapt to market changes 
(d)  Excessive focus on short-term goals (2 Marks) 
(ii) A traditional desi ghee company modernized its production and 
introduced pro-biotic desi ghee, facing initial market doubts. 
Aggressive marketing campaigns highlighted its benefits, gaining 
acceptance. During which stage of the product life cycle did the 
desi ghee company face doubts but gained acceptance through 
aggressive marketing campaigns? 
(a)  Introduction stage 
(b)  Growth stage 
(c)  Maturity stage 
(d)  Decline stage (2 Marks) 
(iii)  Alpha Corp is undergoing a shift to foster a culture that encourages 
innovative thinking and team collaboration. To achieve this, the 
company is focusing on how leaders interact with their teams and 
270
set examples for behavior, aiming to align leadership practices with 
desired cultural outcomes. Which aspect of AlphaCorp is being 
adjusted to foster a culture of innovation and collaboration? 
(a) Structure
(b) Systems
(c) Skills
(d) Style (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)  Tech Innovators Inc., a rapidly expanding technology company, aims to
lead in artificial intelligence (AI) and machine learning (ML). With recent 
growth, the company is evaluating which organizational structure will 
best support its vision for innovation and leadership in AI technologies. 
They are considering three options: the Functional and Divisional 
Relationship for specialization, the Horizontal Relationship for flat, 
collaborative management, and the Matrix Relationship for cross-
functional teams. Which of these relationships—Functional and 
Divisional, Horizontal, or Matrix—will most effectively achieve Tech 
Innovators Inc.’s strategic goals, and why? (5 Marks) 
(b) Rajiv Arya owns an electrical appliance company specializing in the
manufacture of domestic vacuum cleaners. The market is competitive,
with four other manufacturers offering similar products and achieving
comparable sales volumes. Additionally, these rival firms hold several
patents related to the vacuum cleaner technology. The supplier base for
raw materials is extensive, with multiple suppliers available. Identify and
explain the significant forces from Porter’s Five Forces framework that
are relevant to Rajiv Arya’s company. (5 Marks)
(c) 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)
2. (a)  Strategic management helps an organization to work through changes
in the environment to gain competitive advantage. In light of statement 
discuss its benefits. (5 Marks) 
271
(b) A company has recently launched a new product in the market. Initially,
it faced slow sales growth, limited markets, and high prices. However,
over time, the demand for the product expanded rapidly, prices fell, and
competition increased. Identify the stages of the product life cycle (PLC)
that the company went through.  (5 Marks)
3. (a)  What do you understand by Strategic Alliance?  Discuss its advantages.
 (5 Marks) 
(b) Why Strategic Performance Measures are essential for organizations?
(5 Marks) 
4. (a)  Distinguish between Concentric Diversification and Conglomerate
Diversification. (5 Marks) 
(b) What are channels? Why is channel analysis important? Explain the
different types of channels?
OR 
How can Mendelow's Matrix be used to analyze and manage the 
stakeholders effectively? (5 Marks) 
272