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Posted Date: 25 Nov 2009 Posted By:: Suresh Member Level: Silver Points: 5 (Rs. 1)
2007 Institute of Chartered Accountants of India, New Delhi BE Automobile CA-Pcc-Nov-07-PAPER – 6 : INFORMATION TECHNOLOGY AND STRATEGIC MANAGEMENT University Question paper
PAPER – 6 : INFORMATION TECHNOLOGY AND STRATEGIC MANAGEMENT
Attempt all questions.
1. State with reasons which of the following statements are correct/incorrect (Attempt any
(a) Retrenchment strategy refers to removal of employees from job through the process
(b) Six sigma is a technique manage the behaviour of groups in organisations.
(c) Strategy is partly proactive and partly reactive
(d) Objectives are open ended and goals are close ended. (2 × 3 = 6 Marks)
2. Briefly answer the following questions (any two) in 2-3 sentences each.
(a) What is social marketing?
(b) What are key success factors?
(c) What is corporate culture? (2 × 2 = 4 Marks)
3. Is competition good or bad? Explain Porter’s five forces model. (10 Marks)
4. What do you understand by total quality management? Discuss the principles guiding it.
5. Case Study
Sweet Drinks Ltd is a drinks company whose core business is manufacturing and selling
soft drinks to 80,000 outlets throughout India. The business of the company is good with
annual turnover exceeding three billon of rupees. Profits are good and shareholders are
often rewarded with lucrative dividends and bonuses.
Four years back the company has diversified into the alcoholic drinks industry and has
taken-over two small breweries located in western India. The company has also
diversified into hotels with purchase of twenty-five hotels of three/four star category
across the country. To its advantage the company has been able to obtain a monopoly for
the sale of its soft drinks in its hotels and is beginning to establish itself as a brand name
in the brewery industry.
Part of the strategy of the company is to continue to purchase hotels, particular by
targeting National Capital Region of Delhi where tourism is likely to pick up with the
forthcoming Commonwealth Games . The company also intends to construct a five star
hotel in Gurgoan to take tax advantage announced recently by the finance ministers.
Everything was going on well until recently, when a Public Interest Litigation from NGO
accused the company of indulging in surrogate advertising of its brewery products. In fact
the company has similar brand names for its soft drinks and brewery products. This
triggered a lot of protests and demonstrations against the company. Newspapers were
flooded with the articles against the company. There were also some demonstrations and
some small incidents of stone pelting in a few of its hotels.
(a) Discuss the factors related to SWOT analyses for the company? (8 Marks)
(b) Explain how Sweet Drinks Ltd is achieving synergy? (5 Marks)
(c) Explain the nature of diversification adopted by the company. (7 Marks)
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