BBM 8th Semester
Business strategy Board Question Paper 2022

Define strategic management.

State features of mission of any organization.

Define the term core competitive advantage.

Suggest the condition in which growth strategy of business can be suitable.

List the role of emotional intelligence in business strategy formulation.

Write the full form of PESTELG.

Why do business need business strategy? Explain.

Define objectives. Explain process of crafting objectives.

Explain in brief, the value-chain-analysis.

How do strategic managers use BCG matrix for portfolio analysis? Explain.

Explain functional organizational structure with its advantages and disadvantages for strategy formulation.

Explain the role of environmental analysis for formulation of effective strategy.

'A firm which formulates, implements and evaluates strategy effectively can only sustain in competitive world.' In light of this statement, explain the importance of strategic management.

Critically analyze the resource-based view of strategy.

Without identifying sustainable competitive advantages, effective strategy cannot be formulated. With reference of this statement, explain the process of identifying sustainable competitive advantages of a bakery firm.

Analyze the role of leadership on strategic implementation.

Read the following cases carefully and answer the questions that follow:
Sumi Furniland Pvt. Ltd. was established in the year 2051 BS during the peak economic progress in Nepal. The owner Sumit Thapa was a retired school teacher. After retirement, he decided to invest in furniture business as he scanned increasing tendency of living standard of people after restoration of democracy in 2046 BS. He realized that people in the region were competing in furnishing their home, competing in dowry around western development region, Butwal, as it is one of the major cities of Nepal connecting access to many districts like Palpa, Nawalparasi, Rupandehi, Gulmi, Arghakhanchi, Baglung, Syangja and Rukum. He estimated that the business could be extended within networks as he was one of the renowned teachers. Thus, with debt capital of 2.5 million and retirement benefits, he invested 3.5 million to the business and established the factory at Kanchhi Bazaar, Butwal requiring 5 Ropanies of land, 15 employees. His wife Mrs. Thapa was also assisting him for the business.
Over the years, Sumi Furniland occupied a good position in the business. Employees with a sense of belongingness because of caring behaviour of Mr. and Mrs. Thapa, gained a fair share of the market. By the year 2065 BS, the business earned major market share with investment capital of 8 million, 52 employees and 10 extension counters in major cities of other districts. Eventually, Pawan Thapa, son of Sumit, graduated MBS from Lumbini Banijya Campus. Sumit approached him to take care of the business as Sumit wanted to extend the business with young mind and efforts. Pawan realized that the business is growing and is better to handle it in comparison to getting job in any bank. He then started the business with grand socialization program just in any Hindi Cinema. Immediately after starting the business, Pawan started scanning the market situation. He found that many business organizations are selling Chinese furniture. He found that Chinese furniture are more attractive and less expensive though they are inferior in quality. He then started to reduce the cost of production of Sumi furniture. He identified the cost of Sumi furniture is high because of labour, raw material and wastage. He then started down-sizing the employees which is not easily accepted by employees. After the rigorous down-sizing, employees decided to start up labour union movement. By using the low quality wood to furniture, customers started complaining of its quality. But again the cost could not be reduced significantly to be competitive with Chinese furniture.
Pawan then consulted with its some of college friends with offer of share of the business. They suggested that the business should be diversified as the furniture business is traditional. They reported that they can work with him if he could start new restaurant business and let his friend to manage the new business. They started a resort with the name G5 ground at prime location of Butwal. They initially grew their operation at the organizations into fast food restaurant and party venue. They expanded the resources and brought skilled workers from outside. As the operation grew, realizing the importance of training, a training department was set up in the organization. Pawan did some quick calculations. He found that the restaurant could earn slightly more revenues without the any effort. However, there was no assurance that the furniture could be expanded within the labour issues and higher cost. But Pawan is in dilemma whether to reorganize the old furniture business which is sole business or focus only on G5 restaurant.
Questions:
a. Make an environmental analysis of Sumi Furniland Pvt. Ltd.
b. Do you think Pawan's strategy was good to make Sumi's business? Justify.
c. If you were Pawan, what strategy do you follow to reorganize the furniture business?
d. Suggest vision, mission statement and objectives of new restaurant business.