Strategic Management

03 Jul


The Ahmedabad based Astral Poly Technik Ltd. is manufacturing and provider of chlorinated poly vinyal chloride (CPVC) piping and plumbing systems. Mr Sandeep Engineer, its managing director reported a strategic decision of manufacturing and marketing the ‘Blaze master’ fire sprinkler system under an agreement with the $ 4 billion global speciality chemical company, Lubrizol, whose wholly-owned subsididary Noveon Inc makes ‘Blazemaster’ for this purpose, Astral signed a licence agreement with Noveon to manufacturing and market its fire sprinkler system under the brand name of ‘Blazemaster’ which is a trade mark of Noveon. The company, in order to strengthen its business plans, had taken a strategic decision to enter into a techno-financial joint venture with speciality process LLC of USA, which provided if the required technical expertise for manufacturing CPVC pipes and fitting for home and industrial applications. Astral was also going for an initial public offering to further its growth plans.

Q1) Explain the term strategic decision making?

Q2) Explain the process of decision making?

Q3) What is the basic thrust of strategic decision making?

Q4) Explain in detail the issues in strategic decision making?



The essence of vision is a forward-looking view of what an organization wishes to become, mission is what an organization is and why it exists.

Several years ago, Peter F Drucker raised important philosophical questions related to business what is our business? What will it be? What it should be? These three questions though simply worded are in reality, the most fundamental questions that any organization can put it itself. The answers are based on an analysis of the underlying need of the society that any organization strives to fulfill. The satisfaction of that need is them, the business of the organization.

Q1) Define vision? And explain the benefits of a vision?

Q2) What do you mean by mission?

Q3) How are Mission statements formulated and communicated?

Q4) Explain in detail the characteristics of a Mission statement?



The major market players in Indian Food processing industry include local companies such as Agro Tech Foods, Dabur, Gits, Parle and Foreign companies such as Nestle, Cadbury and Unilever.

The business environment in which the food processing industry exists could be explained in terms of opportunities and threats.

Opportunities just like High demand potential, low output from organized sector. Exports of agricultural and processed food have been rising, low cost Indian labour, younger population, changing lifestyle, nuclear families, increasing personal income, number of working women, etc.

Threats just like conservative Government policies, inadequate infrastructure for distribution and preservation, limited assess to appropriate technology for processing and packaging, high taxation on packaged items etc.

Just observed how the food processing industry in India is affected by different levels of the environment at the global and national level.

Q1) Explain the concept of Environment?

Q2) Explain in detail the characteristics of Environment?

Q3) Explain Internal Environment?

Q4) Explain External Environment?



According to a doctoral study on the corporate takeovers in India the major reason for increased Mergers & Acquisitions (M & A) activity were, legal reforms, economic reforms, economic slowdown, and depressed stock markets, etc.

Statistics related to M & A in India are quite impressive. The market research firm found that Indian companies spent over US $ 23 billion in 2006, a jump of over 400 percent over that in 2005, in acquiring foreign companies, more than half of which were in Europe Inbound (Foreign companies talking over Indian companies) and Outbound (Indian companies talking over Foreign companies) mergers and acquisitions have increased dramatically.

Q1) Explain the term mergers and acquisitions?

Q2) What are the types of mergers and acquisitions?

Q3) Explain in detail the reasons for mergers and acquisitions?

Q4) What are the important issues in mergers and acquisitions?

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