ICSI Previous Year Question papers Strategic Management Alliances and International Trade

ICSI Previous Year Question papers

CS Professional Programme Module III

Strategic Management Alliances and International Trade

June 2010

Time allowed : 3 hours

 Maximum marks : 100
Total number of questions : 8
P A R T — A
(Answer ANY TWO questions from this part)
1. In a market dominated by behemoths like SAIL and TISCO, finding a niche is of
crucial importance for a small player. What could a Lloyds do with a meager annual
capacity of making 6 lakh tonnes of HR coils while SAIL sold over 1,600 lakh tonnes
in the same time ? Should Lloyds follow the market leader or adopt its own unique
approach to its business strategy ? It is in the context of such questions that Lloyd’s
attention came to rest on the manufacturing process.
Almost all steel producers adopt the blast furnace technology. In this, the process
starts with a clear differentiation among the ultimate products to be manufactured.
So, manufacturing batch size has to be large enough to take up customised orders.
The raw material, iron ore, has to pass through several complex stages of manufacturing.
Lloyds looked for an alternative technology that could suit its requirements. The
solution lay in the electric arc furnace technology where the unique feature was that
initial manufacturing stages need not differentiate among different products. Such a
differentiation came at a much later stage. Translated into a business proposition,
what is meant was that Lloyds could operate with a much smaller batch size of, say,
100 tonnes and deliver quickly. For instance, a 1,000 tonnes small order of specialised
product custom-made to buyer’s specification could be delivered in as little as 15 days.
Such a quick delivery schedule would not be possible for a large integrated steel
manufacturer. In this manner, analogous to small gunboats that could efficiently
torpedo a large slow-moving ship, Lloyds carved out a niche in the highly competitive
steel market.
Answer the following questions :
(i) Comment on the nature of the business strategy of Lloyds.         (10 marks)
(ii) What are the conditions in which such a strategy would succeed ? Could fail ?  (10 marks)
2. Explain the following :
(i) SWOT analysis
(ii) BCG growth matrix
(iii) McKinsey’s 7-S Framework
(iv) Balanced Score Card approach.       (5 marks each)
Strategic Management Alliances and International Trade
3. (a) Explain in detail Michael F. Porter’s five forces model of industry analysis.  (10 marks)
(b) Distinguish between ‘goals’ and ‘objectives’. Also mention the major features of
objectives in an organisation.         (10 marks)
P A R T — B
(Answer ANY ONE question from this part.)
4. (a) Discuss the preliminary steps required for the creation of a successful alliance. (8 marks)
(b) Discuss the restrictive covenants being used in the foreign collaboration and technology
transfer agreements.    (8 marks)
(c) What are the methods of funding investments in overseas joint-venture and
wholly-owned subsidiaries ?     (4 marks)
5. (a) Discuss the important clauses to be incorporated in a foreign collaboration agreement.   (10 marks)
(b) Discuss the types of strategic alliance and its advantages.         (10 marks)
P A R T — C
(Answer ANY TWO questions from this part.)
6. (a) What is fair trade ?          (3 marks)
(b) Explain the theory of comparative advantage in international trade.      (7 marks)
(c) Why was NAFTA created and what objectives has it achieved ?         (5 marks)
(d) What are ‘deminimis margins’ and ‘price undertakings’ which necessitate the
suspension or termination of anti-dumping investigations ?          (5 marks)
7. (a) Re-write the following sentences after filling-in the blank spaces with appropriate
word(s)/figure(s) :
(i) Quota is an important non-tariff barrier affecting the quantum of ____________.
(ii) Tariff is a source of ____________ to the government exchequer.
(iii) When duty is assessed as a percentage of the value of the imported commodity,
it is called ____________.
(iv) When the political relations between two countries are strained, a country
imposes ____________ on the imports from that particular country.       (1 mark each)
(b) Distinguish between any four of the following :
(i) ‘Prohibited subsidies’ and ‘actionable subsidies’.
(ii) ‘Geographical indications’ and ‘trade marks’.
(iii) ‘Green box’ and ‘blue box’.
(iv) ‘Substantive rules’ and ‘procedural rules’.
(v) ‘Most favoured nation (MFN)’ and ‘national treatment’.         (4 marks each)
8. Write critical notes on any four of the following :
(i) World Intellectual Property Organisation (WIPO)
(ii) Multilateral trading system
(iii) Export subsidy on agriculture
(iv) Role of WTO
(v) Necessity of dumping for exporting countries.     (5 marks each)

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