Merits and De merits

Question 1

Advantages of Strat Mgmt 4 points

Answer 1

1. Discharges board resp
2. Objective assesment
3. Framework for decisions
4. Enables measurement of progress

Question 2

Disadvantages of Strat Mgmt` 4 points

Answer 2

1. Future is uncertain
2. Expensive
3. Long term benefit vs investment
4. No flexibility

Question 3

<p>Advantages of Strat Planning 5 points</p>

Answer 3

<p>1. + cont to performance

2. Inc profit-selected strategy
3. Measure Strength and Weakness
4. Selection of optimum strategy
5. Provides necessary direction</p>

Question 4

Disadvantages of Strat Planning 2 points

Answer 4

1. Non availability- accurate data
2. Failing to
   i) Involve key employees
   ii) conducive environment
   iii) communicate to people
   iv) Plans as stds of performance

Question 5

Advantages of contingency planning 5 points

Answer 5

1. Anticipate future potential
2. Change goals to suit changes
3. creative idea, take initiative
4. Quick response to change
5. no panic in crisis

Question 6

Merits of benchmarking 3 points

Answer 6

1. Increases customer satisfaction
2. leads to significant cost savings
3. helps in improving strat planning

Question 7

De merits of benchmarking 4points

Answer 7

1. More info to be managed
2. reduce motivation of manager when compared to better rival
3. confidentiality of data compromised
4. Increase eff of existing business,no new opp

Question 8

Advantages of Learning organisation

Answer 8

1. Innovation- competitive
2. Pressures- respond
3. Link - customers need
4. Improve corp image
5. Improve pace of change

Question 9

Advantages of ETOP

Answer 9

1. Logical framework
2. Structured approach
3. Purpose of grand strategy

Question 10

Disadvantages of ETOP

Answer 10

1. Subjective
2. Only SWOT, no solution
3. no method to inc accuracy
4. no method to verify

Question 11

Advantages of vertical integration

Answer 11

1. Improve supply chain co ordination
2. Reduce transport cost
3. Increase entry barriers

Question 12

Disadvantages of vertical integration

Answer 12

1. Increases cost- lowers efficiency
2. Reduces flexbility
3. Increases investment
4. Reduces ability to inc variety
5. Capacity balancing

Question 13

Advantages of Mergers and Acquisitions

Answer 13

1. Accelerate growth of firm
2. Enhances profitability
   i) Economies of scale
   ii) Operating economies
   iii) Synergy
3. Diversification of risks
4. Financial Synergy benefits

Question 14

Advantages of internal development

Answer 14

1. Better control & co ordination
2. Relatively inexpensive
3. Maintains corporate culture

Question 15

Disadvantages of internal development

Answer 15

1. Dis- economies of scale

2. Higher unit costs

Question 16

Benefits of strat alliance

CFMPS

Answer 16

1. Gaining capabilities
2. Sharing financial risk
3. Easier access to the market
4. Winning political obstacle
5. Synergy

Question 17

Disadvantages of Strat Alliance

Answer 17

1. Strategic gridlock
2. Poor project mgmt
3. loosing control of basic strat
4. Poorly defined goals
5. focus on be parmeters