Course Objectives 1. To disseminate knowledge regarding the concept and tools of Business Policy and strategy 2. To understand how to analyze the benefits of strategic management for foreign trade 3. To understand how to apply concept and tools of Business and strategy in foreign trade 4. To enable the students understand the strategic issues related to foreign trade Course Outcomes On completion of this course, the students will be able to

CO-1: Explain the concepts, define, describe and identifies, the elements of Strategy

CO-2: Apply and comprehend how a firms behaves in competitive environment of foreign trade

CO-3: Analyse contextual issues, structure related to business model/policy and strategic ` management of foreign trade

CO-4: Integrate the concept and the structure and business model of foreign trade

Catalog Description This course comprises the interdisciplinary study of performance differences between firms.

Firm performance is often related to match between the firm and its environment. The

environment carries market opportunities, which the firm tries to respond with its resources and

capabilities. Firm performance is the result of a proper alignment of firm design with the context

it operates in. Since environment keeps on changing all the time, so there is a continuous need for

adjustment of the fit between the firm and its environment. From the firm’s viewpoint, this

process of adapting to changes is critical for its survival. Strategic management has traditionally

focused on business concepts that affect firm performance. As a field, strategy is a combination of

organizational research that spans multiple disciplines and its fundamental question is the

pursuit of competitive advantage in a single market or industry. The first emphasis in the course

is on business-level strategy and second emphasis is corporate strategy, the pursuit of

BBCG111 Essentials of Strategic Management L T P C Version 1.0 3 0 0 0 Pre-requisites/Exposure Basic understanding of strategy Co-requisites --

competitive advantage by simultaneously operating in multiple businesses or industries. By the

end of the semester, you should have an understanding of how strategic issues are framed, the

range of strategic decisions that are faced by most organizations, and how some of the concepts

you have been exposed to in other courses can generate information used for strategic problem

solving.

The overall goal of this course is to develop your capacity to think and execute strategically.

Course Content

4 hours

Module One - Introduction to Business Policy & Strategy

4 hours

Module Two- External Analysis- Environment Analysis & Industry Analysis-

(Opportunities and threats)

4 hours

Module Three- Internal Analysis- Distinctive and Core Competencies, Resource based

view (Identifying Strengths and Weaknesses)

4 hours

Module Four- Competitive strategy

5 hours

Module Five- Industry specific strategy, Strategic choices & formulation

5 hours

Module Six - Corporate strategy

5 hours

Module Seven – Strategic implementation and control

5 hours

Module Eight- Corporate Governance & Managing Strategic Change

Text Books Rothaerm, T. (2016) Strategic management ,IIIrd edition, New York: McgrawHill Publication 2016

Reference Books Porter, M. E. (1980) Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press

Modes of Evaluation: Quiz/Assignment/ presentation/ extempore/ Written Examination Examination Scheme:

Components

Internal assessment

Mid sem exam

End sem exam

Weightage (%)

30 20 50

Relationship between the Course Outcomes (COs) and Program Outcomes (POs)

Mapping between COs and POs

COURSE OUTCOMES ( COs )

POs

CO 1

Explain the concepts, define, describe and identifies, the elements of Strategy

1,2, 5,7,8,12

CO 2

Apply and comprehend how a firms behaves in competitive environment of foreign trade

1,2, 4,5,6,8,11,

CO 3

Analyze contextual issues, structure related to business model/policy and strategic ` management of foreign trade

1,2,3,4,5,6,7,8,11, 12

CO 4

Integrate the concept and the structure and business model of foreign trade

1,2,5,8,9,10,,12

Program Outcome / Course Outcome mapping

Course

Outcomes

CO 1 CO 2 CO 3 CO 4 CO5

PO 1 3 3 3 2 3

PO 2 3 3 3 2 3

PO 3 3 3 3 2 3

PO 4 3 1 1 3 3

PO 5 2 2 1 3 1

PO 6 2 2 2 2 1

PO 7 3 3 1 2 2

PO 8 3 3 3 3 3

PSO 9 3 3 3 1 1

PSO 10 3 3 3 2 1

PSO 11 3 1 3 3 3

PSO 12 3 3 3 3 3

St

uden

ts w

ill d

emon

stra

te s

tron

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ncep

tual

kno

wle

dge

in t

he f

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iona

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f m

anag

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wel

l as S

trat

egy

Stud

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wil

l dem

onst

rate

eff

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ve u

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stan

ding

of

rele

vant

fun

ctio

nal a

reas

of

busi

ness

and

thei

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atio

n in

Str

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y

Stud

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wil

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ana

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kill

s in

iden

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pr

oble

ms

pert

aini

ng to

Str

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y

Stud

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wil

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dev

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and

eva

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tern

ate

man

ager

ial

deci

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.

Stud

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ffec

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appl

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ion

capa

bili

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thei

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un

ders

tand

ing

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orld

bus

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.

Stud

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will

be

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it e

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dec

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akin

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ills

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abili

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Stud

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wil

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war

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usin

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Stud

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wil

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or

Course

Code

Course Title

PO 1

PO 2

PO 3

PO 4

PO 5

PO 6

PO 7

PO 8

PSO 9

PSO 10

PSO 11

PSO12

BB CG 111

Essentials of Strategic Management

3

3

3

2

2

2

2

3

2

2

2

3

1=weakly mapped 2= moderately mapped 3=strongly mapped

Model Question Paper

Name:

Enrolment No:

Name of the Program: BBA Foreign Trade Semester – VI Subject Name: Essentials of strategic Management Max. Marks : 100

Subject Code : BBCG111 Duration: 2 Hrs

No. of pages:4

Section A

Attempt both the part. Each carries 10 marks.

Q2. Choose correct answer (10Marks) CO1 1. An effective information system collects, codes, stores, synthesizes, and _________ information in such a manner that it answers important operating and strategic questions.

a. Prints b. Distributes c. Presents d. Filters

2. __________ is adding new, unrelated products or services for present customers. a. Concentric diversification b. Horizontal diversification c. Conglomerate diversification d. Product development

3. Two reasons for mergers and acquisitions are a. to increase managerial staff and to minimize economies of scale. b. to reduce tax obligations and increase managerial staff. c. to create seasonal trends in sales and to make better use of a new sales force. d. to provide improved capacity utilization and to gain new technology.

4. Which strategy would be effective when the new products have a counter cyclical sales pattern compared to an organization's present products? Strategic Management

a. Forward integration b. Retrenchment c. Horizontal diversification

d. Market penetration 5. Psychographic analysis would be part of

a. A socio-cultural environment analysis b. A Technological Environment Analysis c. A Resource Analysis d. A Capability Analysis 6. __________ approach involves delivering parts and materials as needed rather than being stockpiled

a. JIT b. MBO c. PERT d. CAD-CAM

7. Competitive advantage based on the creation of opportunities using internal resources is characterized by which approach/view?

a) The positioning approach b) The outside-in approach c) The resource-based view d) The knowledge-management approach

8..Diversification into many unrelated areas is an example of: a) Risk management b) Good management c) Uncertainty reduction d) Sustainability

9.Which of the following outcomes is NOT an advantage of a completely vertically integrated business?

a) Potentially greater control is achieved b) Potentially greater quality is achieved c) Lowering of risk is achieved d) Lower price of supplies is achieved

10. Which of the following might be sources of synergy between two business units? a) They have similar customers and use the same distribution channels b) The profits from one can be used to finance the other when its gets into trouble c) They both have a website d) They are both located in the same town

Q2. Examine the veracity (True and False) of the statement (1X10=10) CO1,2 1. Service is said to be intangible because the quality of the service experience is measured in the perception

of the customer. 2. In value chain analysis, general management is considered part of a firm's infrastructure. 3. Intangible resources are keys to competitive advantage 4. An important advantage of first movers or “pioneers” in a market is that they may establish brand recognition that may later serve as an important switching cost. 5. Rather than focus solely on financial considerations, many firms offer attractive benefits to entice employees to stay. These may include on-site daycare, on-site gyms, and on-site stores. 6. Encirclement refers to network diagram technique 7. Environmental scanning and competitor intelligence provide important inputs for forecasting activities. 8. Porter's five forces model helps to determine both the nature of competition in an industry and the industry's profit potential. 9. Social responsibility is the idea that organizations are not only accountable to stockholders but also to the community-at-large 10.Strategic objectives should be measurable, specific, appropriate, and realistic, but not constrained by time deadlines.

Section-B (5 x 4 = 20 marks)

Q3.

1. Sellout and Divestment 2. Contraction and Consolidation 3. Network organisation Vs Cellular organization 4. VRIN 5. BOT and Turnkey

CO1, 2

Section-C (10 x 3=30 marks)

Attempt any three questions which carry 10 marks each. Be precise and succinct (10X3=30 marks)

Q4.

Q5.

Q6.

What do you understand by the term-Core Competencies? Suggest framework and steps to identify the competencies of the organization related with Upstream sector Explain the process of Friendly Acquisition ? Explain with examples from the industry .Explain the process of Strategic implementation?

CO2, 3

Section - D (10 x 3=30 marks) Attempt All CO4, 5

On September 15th 2011, the Chinese government issued diplomatic protests directed toward India over the continued exploration by the state-controlled Oil and Natural Gas Company (ONGC) of India in Blocks 127 and 128 off the Vietnamese coast in South China Sea. Many years of conflict between China, Vietnam, and other Southeast Asian countries over territorial rights in the waters of the South China Sea had escalated, with a high potential for the conflict to boil over in regional and even global instability. One week earlier, the government of India had filed a prospectus for a secondary issue of 5% of its stake in ONGC to raise US$2.5 billion to help fill dwindling government coffers (Exhibit 1). While the Indian government was dealing with a rising fiscal deficit and inflationary fears, its long-term interests were to manage energy security to fuel its rapidly growing economy. Chinese diplomatic protests could threaten the security of ONGC’s assets and create doubts in their investors’ minds. Given that previous equity issues of energy companies in India were highly oversubscribed, the government

had to decide whether or not to go ahead with the secondary offering. The Company & the Indian Oil Sector ONGC was founded in 1956 by the government of India under the provisions of a legislative act to develop, produce and sell petroleum products within India. Starting with a few oil fields in Digboi in northeast India, ONGC transformed India’s upstream sector by developing onshore fields in the western state of Gujarat and the Assam-Arakan Basin in northeastern India. In 1974, ONGC discovered a giant oil field 75 kilometers (kms) long and 25 kms wide off the coast of Bombay, which subsequently helped catapult the company into major offshore energy development. As part of an economic liberalization program initiated in the 1990s, the Indian government launched an initial public offering (IPO) of ONGC on the Bombay Stock Exchange (BSE) in 1994, offloading a 20% stake in the company and making ONGC the largest Indian company by market capitalization. ONGC is currently ranked second worldwide among global exploration and production (E&P) companies, behind the China National Offshore Oil Corporation (CNOOC) in terms of total assets. With a market capitalization of US$47 billion, it is the second largest Indian company behind Reliance Industries Limited, a conglomerate ranging in expertise from energy to retail. ONGC is a Fortune 500 company and the largest public-sector company in India with a net income of US$4.3 billion on revenues of US$22.6 billion in 2010. The company has over 32,000 employees and is global with operations in 15 countries outside India. ONGC specializes in “upstream activities” in the petrochemical chain and does not directly engage in the retail sale of petroleum products. It primarily caters to domestic demand in India where downstream production is handled by other state-owned companies including Indian Oil, Bharat Petroleum and Hindustan Petroleum. To date, India has been a net importer of oil and it supports consumption of 2,980,000 barrels per day against production of only 878,000 barrels per day. In addition, the government controls production and pricing through the Administered Pricing Mechanism (APM). Through the APM, ONGC subsidizes over 30% of its revenues to downstream operations, thus reducing its overall profitability. Investors have historically complained about these subsidies and have expressed concern that with an ever increasingly lower ownership stake, the government may not be able to pressure ONGC as easily through the APM program. Company Ownership As of July 2011, the Indian government owns 74.14% of ONCG shares, with government owned oil and financial institutions maintaining an additional 7.37% stake in the company (Exhibit 2). Foreign institutional investors and the Indian public make up the marginal investors, with private investors showing significant interest in ownership of the well-run public sector undertaking. However, the key strategies of ONGC are determined mainly by the Ministry of Petroleum. In 2005, the Ministry vetoed ONGC’s plans of expanding into the downstream sector and stopped them from setting up retail locations. Furthermore, licensing policies and regulations govern exploration licenses, petroleum pricing, and industry development. Due to government pressure, ONGC subsidizes oil prices up to 33% of market price of oil when selling to downstream companies in India. ONGC is only listed on the Bombay Stock Exchange (BSE) and is one of the most actively traded stocks. The BSE was one of the poorer performers among the constituents of the MSCI Emerging Markets for 2011, with a rank of 20th among 23 countries included. The benchmark index Sensex had shed almost 12% in the last 12 months, though the long-term returns were over 18%. Additionally, the Reserve Bank of India (RBI) has been aggressively moving to control inflation by increasing short term lending rates 8 times in the last 12 months, up to 8%. Vietnamese Partnership & International Assets ONGC’s first overseas venture dates back to a highly successful 1988 production-sharing contract in Block 6.1 in Vietnam, producing over 50% of Vietnam’s natural gas requirements. The following year ONGC established ONGC Videsh (OVL), a 100% subsidiary to control overseas assets.6 Since then, OVL has won exploration and drilling rights individually and as a consortium. Over the last 23 years, OVL expanded operations globally to over 33 projects in 14 countries. Key overseas production facilities include Vietnam, Russia, Sudan, Syria, and Venezuela. However, many of OVL’s exploratory fields are located in politically sensitive zones such as Libya,

Iraq, Egypt, and Myanmar. The recent deterioration of the political situation in Libya, Egypt, and Iraq forced OVL to relinquish fields in those countries. In thiscontext, therefore, existing exploratory rights in Russia, Venezuela, Brazil, and Vietnam have become much more critical to OVL’s operations . Q1. Conduct PESTLE analysis for ONGC to comment on the prevailing situation CO4,5 Q2. Should India avoid confrontation with china? Comment while conducting trade-off analysis CO4,5 Q3. Suggest basket of strategies to tackle the situation. CO4,5