MGT603 Final Term Past Papers by Dua Waqar

Dua Waqar · MGT603 Finalterm Papers Subjective Solved… · By Dua Waqar · MGT603 Final term papers · Subjective · Solved by Dua Waqar

Q49. ( Marks: 3 )

What is the significance of Production department in an organization?

Production department mainly concern with the achievement of organization goals and targets. Production processes typically constitute more than 70 percent of a firm's total assets. Production department plays a crucial role for implementing organization strategy. Production-concerned decisions on plant location, plant size, , product design, choice of equipment, size of inventory, inventory control, quality control, cost control, use of standards, shipping and packaging, and technological innovation, job specialization, employee training, equipment and resource utilization. All these factors place an important impact on success and failure of the strategy.

Q50. ( Marks: 3 )

Auditors who perform audit can be divided into three groups? Identify and define each of them. People who perform audits can be divided into three groups: independent auditors, government auditors, and internal auditors.

auditors & handouts page 155 and 156

Q51. ( Marks: 5 )

Discuss the activities that can help an organization to reduce cost. Cost leadership emphasizes producing standardized products at very low per-unit cost for consumers who are price-sensitive A successful cost leadership strategy usually permeates the entire firm, as evidenced by high efficiency, low overhead, limited perks, intolerance of waste, intensive screening of budget requests, wide spans of control, rewards linked to cost containment, and broad employee participation in cost control efforts.

More detail page 86 and 87

Q52. ( Marks: 5 )

QSPM requires intuitive judgments and educated assumptions. Discuss. Requires intuitive judgments and educated assumptions is one of the limitations of QSPM. The ratings and attractiveness scores require judgmental decisions, even though they should be based on objective information. Discussion among strategists, managers, and employees throughout the strategy formulation process, including development of a

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QSPM, is constructive and improves strategic decisions. Constructive discussion during strategy analysis and choice may arise because of genuine differences of interpretation of information and varying opinions

Q53. ( Marks: 5 )

Finance or accounting plays an important role in successful strategy implementation process. You are required to give some of the examples of finance/accounting decisions that may require policies.

Some examples of decisions that may require finance/accounting policies are:

1. To raise the amount of capital by issuing shares or obtaining a debt from external parties.
2. To enhance the inventory turn over level
3. To make or buy fixed assets.
4. To extend the time of accounts receivable.
5. To establish a certain percentage discount on accounts within a specified period of time.
6. To determine the amount of cash that should be kept on hand
7. To determine an appropriate dividend payout ratio.
8. To use LIFO, FIFO

FALL 2007

Q26. ( Marks: 5 )

“QSPM (Quantitative Strategic Planning Matrix) is not without limitations” Discuss. The QSPM is not without some limitations. First, it always requires intuitive judgments and educated assumptions. The ratings and attractiveness scores require judgmental decisions, even though they should be based on objective information. Discussion among strategists, managers, and employees throughout the strategy formulation process, including development of a QSPM, is constructive and improves strategic decisions. Constructive discussion during strategy analysis and choice may arise because of genuine differences of interpretation of information and varying opinions. Another limitation of the QSPM is that it can be only as good as the prerequisite information and matching analyses upon which it is based.

Q27. ( Marks: 5 )

A company has changed its strategy to compete on low cost to high quality provider of goods and services. What positive and negative points it may have?

Compete as low-cost provider of goods or services

Discourages competition Broadens market Requires longer production runs and fewer product changes

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Requires special-purpose equipment and facilities

Compete as high-quality provider

Often possible to obtain more profit per unit, and perhaps more total profit from a smaller volume of sales Requires more quality-assurance effort and higher operating cost Requires more precise equipment, which is more expensive Requires highly skilled workers, necessitating higher wages and greater training efforts

Q28. ( Marks: 5 )

Why vision and mission are different. Are both necessary for organizations?

Vision Statements and Mission Statements are the inspiring words chosen by successful leaders to clearly and concisely convey the direction of the organization. By crafting a clear mission statement and vision statement, you can powerfully communicate your intentions and motivate your team or organization to realize an attractive and inspiring common vision of the future. " Mission Statements" and " Vision Statements" do two distinctly different jobs. A Mission Statement defines the organization's purpose and primary objectives. Its prime function is internal – to define the key measure or measures of the organization's success

• and its prime audience is the leadership team and stockholders.

Vision Statements also define the organizations purpose, but this time they do so in terms of the organization's values rather than bottom line measures (values are guiding beliefs about how things should be done.) The vision statement communicates both the purpose and values of the organization. For employees, it gives direction about how they are expected to behave and inspires them to give their best. Shared with customers, it shapes customers' understanding of why they should work with the organization.

Q29. ( Marks: 10 )

Using a Grand Strategy Matrix approach, what strategies are recommended for a firm that is a strong competitor in a rapid-growing market? Elaborate on what these strategies could mean for an electronics company. Following Strategies are recommended for a firm that is a strong competitor in a rapidgrowing market:

•  Market development
•  Market penetration
•  Product development
•  Forward integration
•  Backward integration
•  Horizontal integration
•  Concentric diversification

Q30. ( Marks: 10 )

Discuss similarities and dissimilarities of restructuring and reengineering.