Aspirant Academy

Society, Management and Accounting

Predicted Questions with Model Answers

Strategic Management: Environment Analysis, SWOT, Formulation, Implementation & Control

Paper I · Unit 3 Section 9 of 11 0 PYQs 21 min
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Predicted Questions with Model Answers

Q1 (5 marks) — What is SWOT analysis? How is it used in strategy formulation?

Model Answer:
SWOT (Albert Humphrey, Stanford Research Institute, 1960s) maps internal Strengths and Weaknesses against external Opportunities and Threats. The SWOT matrix yields four strategy types: SO (strengths exploit opportunities), WO (overcome weaknesses via opportunities), ST (strengths counter threats), WT (minimise weaknesses, avoid threats). It provides a structured basis for strategy selection before implementation begins. (50 words)

Q2 (5 marks) — Explain Porter's Five Forces model.

Model Answer:
Porter's Five Forces (Harvard, 1979) assess industry attractiveness: (1) New entrants — capital/patent barriers; (2) Buyer power — large buyers demand price cuts; (3) Supplier power — few suppliers raise costs; (4) Substitutes — alternatives cap prices; (5) Rivalry — competition erodes margins. Jio's 2016 entry simultaneously intensified all five forces in India's telecom sector. (50 words)

Q3 (5 marks) — What is the BCG matrix? Explain its quadrants.

Model Answer:
The BCG Matrix (Bruce Henderson, 1970) plots SBUs on Market Growth vs. Market Share. Quadrants: (1) Stars — high growth, high share; invest; (2) Cash Cows — low growth, high share; harvest; (3) Question Marks — high growth, low share; invest selectively; (4) Dogs — divest. Cash Cows fund Stars. (47 words)

Q4 (5 marks) — What is strategy implementation? What is the McKinsey 7S framework?

Model Answer:
Strategy implementation translates plans into action through resource allocation and structure design. The McKinsey 7S Framework (Peters & Waterman, 1982) identifies seven interdependent elements: Strategy, Structure, Systems (hard) and Shared Values, Style, Staff, Skills (soft). Shared Values are central. Misalignment in any element derails execution — even the most sound strategy fails without aligned implementation. (52 words)

Q5 (5 marks) — What is the Balanced Scorecard? Explain its four perspectives.

Model Answer:
The Balanced Scorecard (Kaplan & Norton, 1992) measures strategy through four perspectives: (1) Financial — revenue, profit, ROE; (2) Customer — satisfaction, NPS; (3) Internal Processes — efficiency, quality; (4) Learning & Growth — training, R&D capability. NITI Aayog applies a BSC-like framework in the Aspirational Districts Programme (112 districts, January 2018). (47 words)

Q6 (5 marks) — What is Ansoff's product-market growth matrix?

Model Answer:
Ansoff's Matrix (1957) offers four growth paths: (1) Penetration — existing product, existing market (lowest risk); (2) Market Development — existing product, new market (Maruti in Africa); (3) Product Development — new product, existing customers (HDFC card); (4) Diversification — new product, new market (Reliance JioMart; highest risk). Risk escalates from 1 to 4. (48 words)