Q1 Define the strategy. Explain the concept of strategic window ?

Ans. Strategy refers to the concept in which we plan and make strategic military plan which comes under the various business activities. This is the essential part of business ethics and we have to implement it on our business practice to make our business more profitable with minimum risk of loss. While making the strategy we have to study various things which around our economy to give our idea to work on that circumstances. Hence we have to work upon it.

Strategic window is refers to the change which comes under the market as per the latest trends. Although every competitor is giving neck to neck competition to every supplier. So we need to make changes accordingly. So that we should not feel anything such as downfall of our market share in the market. In this we have to get opportunities of market and grab it at that time to get into the rhythm. So that our company can get maximum of the benefit from that market situation in long terms. Here we have some examples which come under this situation. Like Maruti Suzuki came to India when economy requires goods cars to be manufactured in our own country. So ultimately it also increased our GDP as well as our domestic market requirement. In that Maruti Suzuki come in joint ventures and today everyone knows that brand value of Maruti cars as because they proved their cars are economical as per the middle class people which is huge in numbers. However we have seen many brands but this has done something different than others. Other example is for Nokia mobiles. Nokia sold their mobiles in India when it require for major change. When nokia came to India then Nokia had huge market share but after some time we had major downfall of market share of Nokia as only because of change in technology. Today major market share in consist of Samsung and other companies because they adopted as per the time and sells goods with latest features.

Q2. The essence of business continuity is that businesses need to be planned not only for today, but also for tomorrow, that is, for the future. Write the meaning and importance of business continuity planning.

Ans. Business continuity is refers to the planning in which we have to forecast about the future business prospective. In that we have to maintain all the process and working of operation which comes under various levels in our company. This is very important part of every business. Because some time we have to face any mishappning in that country where we are exporting our goods. So to be on safer side we have to make a guidelines and precautions which protect us before these kinds of threats. The threats can be natural disaster and manmade disasters. It can be anything which can harm our business. We have to prepare ourselves to tackle these kinds of things before they appear. Business continuity is the basic part of everything as because no company wants to stop their business at any stage. So everyone tries to get more and more business from their regular and new buyers. Hence for this we have to make proper setup and continuous planning which can be helpful to us for making our decisions and our future prospective more good as we required.

Here we have importance of BCP as given below.

1. Natural disaster is refers to the earthquake, flood, storms etc which is by nature.2. Manmade disaster is refers to the terrorism, sabotage,3. Financial crisis in economy which is the general in poor countries. But to prevent this we

have to take insurance policies which can help us to get this problem away.

BCP is very helpful at every level. Because nobody knows what will happen tomorrow. So we have made sure that every policy which we make should have proper precautions and proper implementation which can reduce the risk level of business at minimum.

Here we have two different business continuity planning strategies as given below.

1. Prevention: In this we have to take below measurements to reduce the levels of risk as much as we can.a. Security: in this we need tight security around our office premises. So that we shall

not face any terrorism at our work.b. Personal: In this we have to hire skilled level worker who can work under this kind of

situation.c. Infrastructure: Infrastructure of our work premises should be good as per the

security standards.d. Software: We shall use good software application which can increase our security at

our works.2. Response: in this we have to take proper response of that disaster with immediate

action.

Q3. Write a brief note on ‘Strategic Audit’.

Ans. Strategic audit is refers to area in which we have to study all the operation activities performance which helps company to run its operations smoothly. So that we should not have any obstacle in any process at any levels. In this we have to make a process in which we should not get involved to top members but they can check the whole process of this. After checking all the things they have to make decisions in we have to take it into consideration and implementation of that into our real work process.

Here we have some levels a given below which we have to follow while reviewing the strategy with involving top member of company.

1. Making standard for performance: First part of everything we need to make performance standards for the all the activities which we have to do in our daily work. So that we can make a target in which we endure that every team or our department should achieve it.

2. Datebase design and maintenance: in this we have to make database design and maintenance criteria. So that we our employee can follow it and we have proper working of every stage.

3. Strategic audit committee: In this we need to make a committee in which we have to occupy the team of experts in that they make various plans to achieve things more properly and systematically. In this we have to increase our production thru implementation of various tools which can be helpful to company for achievement of maximum targets.

4. Relationship with CEO: In this we have to make proper relationship with CEO. Because if our CEO has in touch with every department then he must have to take all decision on his end and make work properly working as on his behalf. So we have to make CEO to get information only from department heads instead of all worker of the company. This makes this process to very long and complex.

5. Alert to duty (by board members): After making all the things we have to make alert to our entire employee regarding the plans and implement it in our daily working life. So that we can have proper utilization of resources and we shall get good gains of earning from our production.

Q4. Price or market competitiveness of a product or business depends on its cost competitiveness. Cost competitiveness implies two things: cost efficiency and cost effectiveness. Explain the concept of cost efficiency of an organization. Analyze the major factors of cost efficiency.

Ans. Cost is basic of every product or everything. Before making the plan into real image we need to calculate overall all cost of product. So that we can plan how much cost we have and how much we can get from the market. Part from above we need a particular level of margin in that we need to get our thing working our properly. Because every businessman wants maximum of profit but we have to make everything to be work properly around ourselves. Cost is everything as a part of every product. In this we have to consider various things before making the cost. As far as our profit is concerned, it’s all depend upon the market circumstances which is to be plan and forecasted from the present market conditions.

Here we have some points which come under this topic and help us to get efficient costing of products.

1. Economic scale: In every manufacturing company we have various things to calculate while making the final cost of product. So here we have some parts of our cost fixed cost and variable cost which make total cost and after that we have to add up percentage of profit.

2. Supply cost: Supply cost is simple as from its word. That supply of products from plant to customers. As far the factory is from customers in that condition we have increase in cost. Hence we have to tackle this situation properly and taking care of this while making the final cost. There also some taxes which comes while sending

3. Product process/design: While making product we have to calculate every section of our resources that are playing role in its manufacturing to final dispatching. In this for the efficient cost we need to make proper utilization of resources and also have to make new innovations thru R&D. This will make our product cost more cheaply than ever before. But it takes times to make new innovation to get new product. So we need to be patience while the innovation has to be revealed.

4. Experience: in this we have to get experience from our track record which is observed by our market trends. In this we have to get constant information from the market and we have to react upon it as per that market condition.

Q5. Write short notes on the following: (a) Divestment strategy.Ans. Divestment is refers to the taking out money share out of total capital by selling share to public thru IPO. This is the condition when every company feels like they don’t have good results from their various production houses and they are giving us losses instead of profits. Hence we have to sell the proportion of share into public or company promoters. So that we can have less burden of losses on ourselves. In this some companies sell of their share to public and invest their money into another thing. This is the basic thing of today’s market policy in which company major stake holder can sell of their share and get his money back. For example in starting of Maruti Suzuki government of India had taken back and sold their stocks in open market which is the best example of divestment strategy. However every company wants to get maximum of profit from their investment but if they don’t receive profits then they self of their share of company in open market and recover their losses by this.

(b) Liquidation strategy.Ans. Liquidation of strategy is refers to the selling of assets of company and converting assets worth in hard cash. It is in case of when company doesn’t want to do work anymore. So they sell off their assets and get hard from the market and cover their losses as much as they can. Every company and product has their life cycle in that we have to suffer from various levels of life cycle at the end of life cycle we have to face this phase in which we have to terminate all working of company and sell off the assets and get money as much as we can recover the losses. In this we have different types of closure of firm 1. Voluntary winding up 2. Voluntary winding up under supervision of the court 3. Compulsory winding up under order of court. In this we have various examples of winding up the setup of whole firm during the operation as because of not properly working and increasing of losses due to debt and not performing as per the targets.

Q6. Describe the different approaches to business ethics. Ans. Business ethics is refers to that in which we have to follow strict rule and regulations and in that we have follow various things of working in our organization as particular group. As far as our rules and regulations are concerned in this we have to work according to our ethics, our

principles and our procedures. But this is only happens when the top management also show their involvement in this kind of approaches. But in most of the time medium size of government don’t show their interest in this kind of ethics and they don’t apply which give them benefits for time being but as we think about long term. It does not work at all. Because low thinking and dignity which makes company profitable but for long terms it always effect the productivity of company and this thing leads to destruction of firm.

Here we have some business ethics as given below.

1. Unconcerned or ethical non-issue approach: In this approach company adopt their nature as they are just meant for the profit nothing else. They don’t care about the rules and principle of ethics which is meant for them and they should be applied on every position of company’s decision. So that we should not have any unethical things processed. Best example of this is Lakshmi Niwas Mittal’s acquisitions and their fall of profits.

2. Ethical damage control approach: in this we have various things to apply to save or company image in market as much as we can. In this most of the part we have to talk about the company image. In this we have to take damage control steps to save company image from those who are active in market to make any scandal against company. So there should window dressing by some companies to save their image in market.

3. Ethics compliance approach: in this we have to make various rules which we have to apply on our daily work life. So that our employee can have good environment and they can work as per the rules and principles of company which is true and good path of business activities.

4. Ethical culture approach: in this company makes a culture in which every person is to obey the rules and principles of company. From top management to lower level of management we have to follow the same procedure to work. This makes a motivation to various employees who are working under our company and they will give their best to achievement of company’s goals.