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CMA INTER SM CHAPTER-1 SUMMARY Introduction to Strategy and Strategic Management 1. What is Strategy? Strategy is a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors. 2. W...
CMA INTER SM CHAPTER-1 SUMMARY Introduction to Strategy and Strategic Management 1. What is Strategy? Strategy is a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors. 2. What is a Good Strategy? To achieve superior performance, companies compete for resources. A strategy is good when it enables a firm to achieve superior performance. 3. What are the elements of Strategy? It consists of three elements 1. a diagnosis of the competitive challenge 2. a guiding policy to address the competitive challenge 3. a set of coherent actions to implement a firm’s guiding policy. 4. What is a misbelief about Strategy? Strategic managers should remember that strategy is neither about making great statements nor being able to face a competitive challenge. 5. What is competitive advantage? If a firm underperforms its rivals or the industry average, it has a competitive disadvantage. 6. What is the key to successful strategy? The key to successful strategy is to combine a set of activities to stake out a unique strategic position within an industry. 7. How to achieve competitive advanctage? Competitive advantage has to come from performing different activities or performing the same activities differently than rivals are doing. 8. What is functional expertise? Trying to be everything to everybody will likely result in inferior performance. In addition, operational effectiveness, marketing skills, and other functional expertise all strengthen a unique strategic position. Those capabilities, though, do not substitute for competitive strategy. 9. What level of managers need to work on strategy? Strategy is not just the preserve of top management. Middle and lower level managers have to work within their organisation’s strategy, meeting the objectives set by the strategy and observing the constraints. 10. How ethics and good governance can bring competitive advantage? Governance and ethics are closely intertwined in an intersection of setting the right organisational core values and then ensuring compliance. www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 1.1 CMA INTER SM CHAPTER-1 SUMMARY 11. What is Corporate Governance? Corporate governance is a system of mechanisms to direct and control an enterprise in order to ensure that it pursues its strategic goals successfully and legally. 12. What is business ethics? Business ethics are an agreed-upon code of conduct in business, based on societal norms. 13. Explain the origin of word Strategy? The term strategy is derived from the Greek word strategia, meaning “generalship’. Although the word is Greek, yet the concept has its origins from the classic, The Art of War, written by Sun Tzu written about 500 BC. 14. Define Strategy. Strategy may be defined as the direction and scope of an organisation over the long term. 15. What are the characteristics of Strategy? The following are some of the characteristics of strategy or strategic decisions. 1. Strategy is likely to be concerned with the long term direction of an organisation. 2. Strategic decisions are normally about trying to achieve some advantage for the organisation over competition. 3. Strategic decisions are concerned with the scope of the organisation’s activities. 4. Strategy can be seen as matching the resources and activities to the environment in which it operates. 5. Strategy can be seen as stretching an organisation’s resources and competences to create new opportunities or to capitalise on them. 6. Strategies may require major resource changes for an organisation. 7. Strategic decisions are likely to affect operational decisions. 8. The strategy of an organisation is affected not only by environmental forces and resource availability but also by the values and expectations of those who have power in and around the organisation. 16. What are the consequences of such characteristics? 1. Strategic Decisions are likely to be complex in nature. 2. Likely to be made in situations of uncertainty. 3. Likely to demand an integrated approach. 4. Manage change relationships and networks outside the organisation. 5. Strategic Decisions will very often involve change in organisations. 17. What are the types of strategies? Corporate strategy: Business strategy: Functional strategy or Operational Level Strategy 18. What is hierarchy of strategy? The term ‘hierarchy of strategy’ is commonly used to explain the nesting of one strategy within another so that they complement and support one another. www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 1.2 CMA INTER SM CHAPTER-1 SUMMARY Case Study Red oceans vs. Blue Oceans 19. What is strategic management? It refers to a set of managerial decisions and actions that determines the long term performance of an organisation. 20. What are the 4 elements of strategic management? Environmental scanning Strategy Formulation Strategy Implementation Evaluation and control 21. What is Vision? Vision: It is the desired future state of an organisation. 22. What is the critical point about Vision? The critical point is that a vision articulates a view of a realistic, credible, attractive future for the organisation, a condition that is better in some important ways that what now exists. 23. What is a well-conceived vision? Well-conceived visions are distinctive and specific to a particular organisation; they avoid generic, feel- good statements. 24. What is product oriented and customer-oriented visions? Product-oriented vision statements define a business in terms of a good or service provided. Customer- oriented vision statements define business in terms of providing solutions to customer needs. 25. What are some examples of Vision statements? Nike: ‘To bring innovation and inspiration to every athlete in the world.’ Scotland Yard: ‘to make London the safest major city in the world.’ Dabur: ‘Dedicated to the health and well being of every household.’ www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 1.3 CMA INTER SM CHAPTER-1 SUMMARY Infosys: ‘To be a globally respected organisation that provides best-of- breed business solutions, leverage technology, delivered by best- in class people.’ Amazon: ‘To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.’ Facebook: ‘To make the world more open and connected.’ GE: ‘To move, cure, build, and power the world.’ Tesla: ‘To accelerate the world’s transition to sustainable energy.’ Walmart: ‘To be the best retailer in the hearts and minds of consumers and employees.’ 26. What are the benefits of vision? Good visions are inspiring and exhilarating. Vision represents a discontinuity, a step function and a jump ahead so that the company knows what it is to be. Good vision helps in the creation of a common identity and a shared sense of purpose. Good visions are competitive, original and unique. The make sense in the market place as they are practical. Good visions foster risk taking and experimentation. Good visions foster long term thinking Good visions represent integrity: they are truly genuine and can be used to the benefit of the people. The visions are customer-oriented. Internal stakeholders are invested in defining the vision. Organisational structures such as compensation systems align with the firm’s vision statement. 27. What is mission? A company’s mission describes its purpose and its present business (who we are? what we do? And why we are here?). 28. What is mission statement? A well-conceived mission statement defines the fundamental, unique purpose that sets a company apart from other firms of its type and identifies the scope or domain of the company’s operations in terms of products offered. 29. How the strategy making is related to mission statement? The first step in the strategy making process involves selecting the corporate mission and major corporate goals. 30. What are the types of mission statement? The mission statement of an organisation can be either product oriented or customer oriented. 31. What are some examples of mission statement? Alibaba: ‘To make it easy to do business anywhere.’ Better World Books: ‘To harness the power of capitalism to bring literacy and opportunity to people around the world.’ Google: ‘To organise the world’s information and make it universally accessible and useful.’ SpaceX: ‘To make human life multi planetary’. www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 1.4 CMA INTER SM CHAPTER-1 SUMMARY 32. What is organizational culture? Organisational culture is the ‘basic assumptions and beliefs that are shared by members of an organisation, that operate unconsciously and define in a basic taken-for-granted fashion an organisation’s view of itself and its environment’. 33. What are the 4 layers of organizational culture? Values Beliefs Behaviors Taken-for-granted assumptions 34. What is culture’s influence on strategy? The taken-for-granted nature of culture is what makes it centrally important in relation to strategy and the management of strategy. 35. How to promote ethical behavior? Firstly, businesses must explicitly articulate values Secondly, having articulated values in a code of ethics or some other document, it is important that leaders in the business give life and meaning to those words by repeatedly emphasizing their importance and then acting on them. Finally, building an organisation culture that places a high value on ethical behaviour 36. What are Goals? Well construed goals denote what an organisation hopes to accomplish in a future period of time. 37. What are objectives? Objectives are defined as the ends that state specifically how the goals shall be achieved. 38. What are the desirable characteristics of effective objectives? ~~ Specific: ~~ Understandable: ~~ Measurable: ~~ Attainable: ~~ Relevant: ~~ Time Bound: 39. What are the important issues to be kept in mind while setting the objectives? Specificity: Multiplicity: Periodicity: Verifiability: Reality: Quality: 40. What are the objectives of strategic management? To identify opportunities and adapt resources to exploit the opportunities created. www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 1.5 CMA INTER SM CHAPTER-1 SUMMARY To create opportunities by stretching the resources and competences of the organisation and capitalise them. To help managers to understand the key relationships among actions, context, and performance by providing the conceptual frameworks. To help an organisation enjoy competitive advantage. To sustain and improve the competitive position by the deployment and acquisition of appropriate resources and by monitoring and responding to environmental changes. To monitor and remain responsive to the demands of key stakeholders. To identify the critical success factors and meet the needs and wants of the customers. To avoid failure by focusing on the building blocks of competitive advantage (superior efficiency, superior quality, superior innovation and superior responsiveness to customers), instituting continuous improvement and learning, tracking the best industrial practices and using benchmarking. To overcome inertia and accept the changes in the ever-changing environment to remain competitive and at times to survive. To develop a creative and innovative attitude and to think strategically. 41. What is Genomics? Genomics is the study of all of a person’s genes (the genome), including interactions of those genes with each other and with the person’s environment. The organisation of modern corporations helps in interaction with stakeholders. 42. What is organizational behaviour? Organisational behaviour is about how people may be motivated to work together in more effective ways. 43. What is organizational communication? The interaction required to direct a group toward a set of common goals is called organisational communication. 44. How can we establish effective and efficient communication? An effective and efficient communication system requires managerial proficiency in delivering and receiving messages. 45. What is inner and outer system? The outer system is defined by organisation and technologies while the inner system refers to mutual relationships created as a result of business cooperation and living together. 46. What is self-estimation? Employees constantly judge and compare themselves to others in a work environment. Based on those comparisons, they form an opinion of their own worth and abilities. 47. What is strategic leadership? It is about how to effectively manage a company’s strategy making process to create competitive advantage. Strategic leaders must strive towards maximising shareholders value by balancing the profit growth and profitability of the organisation. www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 1.6 CMA INTER SM CHAPTER-1 SUMMARY 48. Who is strategic leader? A strategic leader is seen as an individual upon whom strategy development and change are seen to be dependent. 49. What are the key qualities of a strategic leader? Strategic leader should be a visionary. He should be capable of eloquently communicating this vision to others A good strategic leader must have the ability to identify and articulate the business model A good strategic leader should demonstrate a sense of commitment towards the vision He should develop a strong network of both formal and informal sources A good strategic leader should be able recognise and empower subordinates to make decisions. A good strategic leader should try to develop a consensus for his ideas among his subordinates 50. What is emotional intelligence? Emotional intelligence is a term that Daniel Goleman coined to describe a bundle of psychological attributes that many strong and effective leaders exhibit Self-awareness Self-regulation Motivation Empathy Social skills 51. What is organizational change? Change can include things like: Introducing new software or updating marketing practices Updated business processes A full-on restructuring Leadership changes Updated thinking New project management tools Budget constraints Shifts in strategy These all fall under the umbrella of organisational change. 52. What is organizational change management? The term organisational change management refers to a methodology that helps businesses adapt to adjustments of all kinds. 53. What are the organizational change management methods? Some of the most popular methods include: Kotter 8-Step Process for Leading Change: Create → Build → Form → Enlist → Enable → Generate →Sustain → Institute McKinsey & Company’s 7-S Framework: Style, Skills, Systems, Structure, Staff, and Strategies = Shared Values & Goals Kurt Lewin’s Change Model: Unfreeze → Change → Refreeze ADKAR Model: Awareness → Desire → Knowledge → Ability → Reinforcement The Kubler-Ross Model: Shock → Anger → Bargaining → Depression → Acceptance www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 1.7 CMA INTER SM CHAPTER-1 SUMMARY Satir Change Management Model: Late Status Quo → Resistance → Chaos → Integration → New Status Quo William Bridges’ Transition Model: Ending → Neutral Zone → New Beginnings 54. What is the most popular and widely accepted guiding approach of change management? One of the most popular and widely accepted guiding approaches out there is The Association of Professional Change Management (ACMP) Standard for Change Management. The following are the steps as recommended by ACMP: Evaluate Change Impact & Readiness Formulate Your Strategy Develop Change Management Plans Executing Change Management Plan Closing the Change Management Effort 55. How much important is employee involvement in change management? Organisations can’t run successful change management without people’s power. 56. What are personal objectives? Personal objectives refer to the job-specific goals of each individual employee. 57. What are SMART goals? Specific Measurable Attainable Relevant Time Based 58. What is FAST framework? www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 1.8 CMA INTER SM CHAPTER-1 SUMMARY 59. What are the performance objectives? Performance objectives for employees are set so that they can know what is expected of them and understand what they are accountable for. They can be performance-based, or they can be development-led. 60. What are some examples of performance objectives? The following are some of the examples of performance objectives for employees. Productivity Quality and efficiency Education and self-development 61. Why employees must sign off their performance objective contracts? Employees must also sign off their performance objective contracts to show their commitment to meeting them. 62. Why aligning individual goals to organisational goals is important? It helps to sustain employee motivation by helping employees measure the impact of their actions. When personal goals are aligned, an individual takes accountability of the tasks in hand. 63. What is Balanced Scorecard? The balanced score card was developed by Robert S. Kaplan and David Norton of Harvard Business School. This system tries to do away with the overemphasis on short term financial objectives and tries to improve organizational performance by focusing attention on measuring a wide range of non- financial, operational objectives. 64. What are the 4 perspectives of balanced scorecard? Financial Perspective Customer’s Perspective Internal Business Perspective Learning and Growth Perspective 65. What is the strategy map and balance scorecard? A visual representation of the organisation’s strategy through strategy maps have been used by Kaplan and Norton. In these maps, the four perspectives have been connected to each other in a ‘cause and effect’ fashion thus making clear the relationship of all the strategic objectives to the strategic intent of the organisation. www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 1.9 CMA INTER SM CHAPTER-1 SUMMARY 66. What are the steps of balanced scorecard approach? The first step involves establishing the organisation’s strategic intent including the vision and mission. In the second step, the design of the balanced score card is determined by identifying the specific measures related to the four perspectives namely; financial, customer, internal and learning or innovation perspective. The next step involves strategy mapping In the final step, quantitative measures or metrics should be established to measure performance. 67. What are the various kinds of objectives that need to be balanced? There are broadly two types of objectives namely, financial and strategic. 68. What is EVA? A widely used measure of economic profit is economic value added (EVA), devised and popularised by the New York consulting firm Stern Stewart & Company. EVA = Net Operating Profit After Tax (NOPAT) - Cost Of Capital Cost of capital is calculated as: capital employed multiplied by the weighted average of capital (WACC). 69. What is the rationale of EVA? Profit is the surplus of revenues over costs available for distribution to the owners of the firm. The transition from accounting profit to economic profit was triggered due to a major problem of accounting profit as it combines two types of returns: the normal return to capital that rewards investors for the use of their capital; and economic profit, which is the pure surplus available after all inputs (including capital) have been paid for. Economic profit represents a purer and more reliable measure of profit that is a better measure of performance. www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 1.10 CMA INTER SM CHAPTER-1 SUMMARY Multiple Choice Questions 1. The monitoring, evaluating and disseminating of information from the external and internal environments to key people within the organisation is called _________. a. Strategy Formulation b. Evaluation and control c. Strategy Implementation d. Environmental scanning 2. The ______of a company state how managers and employees should conduct themselves. a. values b. goals c. objectives d. vison 3. _________are the day-to-day way in which an organisation operates and can be seen by people both inside and outside the organisation. a. Performances b. Targets c. Behaviours d. Values 4. Which among the following provide the standards for performance appraisal? a. Mission b. Vision c. Values d. Objectives 5. _________is concerned with complexity arising out of ambiguous and non-routine situations with organisation wide rather than operation-specific implications. a. Operational management b. Business level strategy c. Strategic Management d. Functional level strategy 6. _________refer to the job-specific goals of each individual employee. a. Balanced Score Card b. Performance objectives c. Personal objectives d. Organisational genomics 7. The balanced score card is a ________approach to performance management. a. top-down b. bottom up c. indirect d. direct State True or False. 1. Business ethics are an agreed-upon code of conduct in business, based on organisational norms. F 2. Strategy is likely to be concerned with the short term direction of an organisation. F 3. Strategic decisions are likely to affect operational decisions. T 4. Corporate strategy is about how to compete successfully in particular markets. F 5. In evaluation and control the actual performances are compared to the desired performances and corrective actions are taken to resolve problems. T 6. A customer-oriented business definition focuses on the characteristics of the products sold and the markets served. F 7. Self-regulation is the ability to understand one’s own moods, emotions, and drives, as well as their effect on others. F 8. People disrespect leaders who are self aware and self regulating. F 9. The balance score card model requires an evaluation of organisational performance from five different perspectives. F www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 1.11 CMA INTER SM CHAPTER-1 SUMMARY 10. Accounting profit represents a purer and more reliable measure of profit that is a better measure of performance.F Fill in the Blanks. 1. __________typically fit within the three main categories of stability, growth and retrenchment. Corporate strategies 2. _______ is about how to compete successfully in particular markets. Business strategies 3. _________ is concerned with developing and nurturing competence to provide a business unit with a competitive advantage. Functional or Operational strategies 4. ________refers to the monitoring, evaluating and disseminating of information from the external and internal environments to key people within the organisation. Environmental scanning 5. _________involves the process through which organisational activities and performances are monitored Evaluation and control 6. A _________business definition focuses on the characteristics of the products sold and the markets served, product-oriented 7. A __________view of a company’s business focuses on customer needs rather than a particular product (or solution) for satisfying those needs. customer –oriented 8. _________is the desired future state of an organisation. Vision 9. __________is the ‘basic assumptions and beliefs that are shared by members of an organisation Organisational culture 10. _________are the day-to-day way in which an organisation operates and can be seen by people both inside and outside the organisation. Behaviours 11. _________ are defined as the ends that state specifically how the goals shall be achieved. Objectives www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 1.12 CMA INTER SM CHAPTER-2 SUMMARY Strategic Analysis and Strategic Planning 1. What is Business Environment? Business environment refers to the sum total of all the conditions, events and influences in and around an organisation that affects it. 2. Why is it important to analyse the environment? The very survival of an organisation depends on its environment. 3. What is the framework for analysing changing and complex environment? The framework for analysing changing and complex environments are organised in a series of ‘layers’ as follows: 4. What are the Characteristics of Business Environment ? Environment is complex Environment is dynamic Environment is Multi-faceted Environment has a far reaching impact 5. What is PETEL Framework? The PESTEL framework categorises environmental influences into six main types: political, economic, social, technological, environmental and legal. www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 2.1 CMA INTER SM CHAPTER-2 SUMMARY 6. What is an industry? An industry is a group of firms producing the same principal product or service. An industry may also be defined as a group of companies offering products or services that are close substitutes for each other i.e., products or services that satisfy the same basic customer needs. 7. What is a sector? A sector is a group of closely related industries. The FMCG comprises several related industries: the food and beverages industries, the healthcare industries and the household and personal care industries. 8. What is Value Chain? The value chain describes the categories of activities within and around an organisation, which together create a product or service. The concept was developed in relation to competitive strategy by Michael Porter. The term value chain refers to the idea that a company is a chain of activities that transforms inputs into outputs that customer’s value. 9. What are Primary activities? Primary activities are directly concerned with the creation or delivery of a product or service. 10. What are support activities? Support activities help to improve the effectiveness or efficiency of primary activities. The following are the support or secondary activities: 11. What is Porter’s five Forces Framework? www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 2.2 CMA INTER SM CHAPTER-2 SUMMARY 12. What are the five forces under the Five Forces Framework? Risk of Entry by Potential Competitors Rivalry Among Established Companies The Bargaining Power of Buyers The Bargaining Power of Suppliers Substitute Products 13. What are Complementors? According to Grove, complementors are companies that sell products that add value to (complement) the products of companies in an industry because, when used together, the use of the combined products better satisfies customer demands. For example, the complementors to the PC industry are the companies that make software applications to run on the computers. 14. What is VRIO Framework? The VRIO framework, as given by Barney, helps an organisation to evaluate its competencies with the help of the following questions: Value Rareness Imitability Organization 15. What is SWOT/SWOTC Analysis? www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 2.3 CMA INTER SM CHAPTER-2 SUMMARY It stands for SWOTC Strength, Weaknesses, Opportunities and Threats or Challenges. 16. What are the steps involved in SWOT? A simple application of SWOT analysis technique involves these steps: Setting the objectives of the organisation or its unit. Identifying its strength, weaknesses, opportunities and threats. Maximising the areas where the organisation has strength. Minimising the weaknesses. Capitalising on the opportunities in the external environment. Protecting the organisation from threats in external environment. Recommending strategies that will help the organisation to be competitive in the business environment. 17. What are the benefits of SWOT Analysis? SWOT analysis has several benefits such as simple to use, low cost, flexible and can be adapted to varying situations, leads to clarification of issues, development of goal-oriented alternatives, useful as a starting point for strategic analysis. 18. What are the danger points in using SWOT? It is at times very difficult for organisations to clearly segment opportunities and threats. SWOT exercise can generate very long lists of apparent strengths, weaknesses, opportunities and threats, whereas what matters is to be clear about what is really important and what is less important. There is a danger of over generalisation. May result in just compiling lists rather than think about what is really important for achieving objectives. Usually reflects an evaluator’s position and viewpoint that can be misinterpreted Chances exist where strengths may be confused with opportunities or weaknesses with threats. May encourage organisations to take a lazy course of action of looking for strengths that match opportunities rather than developing new strengths that could match the emerging opportunities. 19. What is SWOC? Strength, Weaknesses, Opportunities and Challenges (SWOC) 20. What can be a SWOT Analysis of Indian Steel Industry? www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 2.4 CMA INTER SM CHAPTER-2 SUMMARY 21. What is Portfolio Analysis? Portfolio analysis is an analytical tool which views a corporation as basket of portfolio of products or business units to be managed for the best possible returns. 22. What are the Objectives of Portfolio Analysis? to analyse the current mix of business and take investment decisions. to develop strategies for adding new businesses in the portfolio thereby inducing growth. to decide the business to be retained and the one to be excluded from the portfolio. 23. What are the advantages of Portfolio Analysis? It encourages top management to evaluate each of the corporation’s business individually and to set objectives and allocate resources for each. It stimulates the use of externally oriented data to supplement management’s judgment. It raises the issue of cash-flow availability for use in expansion and growth. Its graphic depiction facilitates communication. 24. What are the limitations of Portfolio analysis? Defining product/market segments is difficult. It suggests the use of standard strategies that can miss opportunities or be impractical It provides an illusion of scientific rigour, when in reality positions are based on subjectivity. Its value-laden terms such as cash cow and dog can lead to self-fulfilling prophecies It is not always clear what makes an industry attractive or where a product is in its life cycle. Naively following the prescriptions of a portfolio model may actually reduce corporate profits if they are used inappropriately. www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 2.5 CMA INTER SM CHAPTER-2 SUMMARY 25. What is growth/share (or BCG) matrix One of the most common and long-standing ways of conceiving of the balance of a portfolio of businesses is the Boston Consulting Group (BCG) matrix. 26. What are the advantages of BCG? It provides a good way of visualising the different needs and potential of all the diverse businesses It warns corporate parents of the financial demands of what might otherwise look like a desirable portfolio of high-growth businesses. It also reminds corporate parents that stars are likely eventually to wane. Finally, it provides a useful discipline to business unit managers, underlining the fact that the corporate parent ultimately owns the surplus resources they generate and can allocate them according to what is best for the corporate whole. 27. What are the problems in using BCG? Definitional vagueness Capital market assumptions Unkind to animals 28. What are the Stages in Strategic Planning? i. Select the corporate mission and major corporate goals ii. Analyse the organisation’s external competitive environment to identify opportunities and threats iii. Analyse the organisation’s internal operating environment to identify the organisation’s strengths and weaknesses iv. Select strategies v. Implement the strategies www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 2.6 CMA INTER SM CHAPTER-2 SUMMARY 29. What is Feedback Loop? The strategy planning process is a continuous process and the feedback loop indicates that strategic planning never ends. 30. What do we mean by Alternatives in Strategic Planning? Several scholars have criticized the formal planning model for three main reasons: the unpredictability of the real world, the role that lower-level managers can play in the strategic management process, and the fact that many successful strategies are often the result of serendipity, not rational strategizing. These scholars have advocated an alternative view of strategy making. 31. What is Scenario Planning? Scenario planning involves formulating plans that are based upon “what-if” scenarios about the future. In the typical scenario-planning exercise, some scenarios are optimistic and some are pessimistic. 32. What is Decentralized Planning? A mistake that some companies have made in constructing their strategic planning process has been to treat planning exclusively as a top-management responsibility. This “ivory tower” approach can result in strategic plans formulated in a vacuum by top managers who have little understanding or appreciation of current operating realities. Consequently, top managers may formulate strategies that do more harm than good. 33. What is Strategic analysis and choice? Strategic alternatives are the different courses of action available to a firm to pursue its objectives at a given point of time. Generation of feasible alternatives is crucial for formulating and selecting appropriate strategies. 34. How to develop strategic alternatives in a small organization? In a small organisation, all decisions are made by the owner or chief executive himself. These decisions deal with what an organization should do under alternative situations, what new businesses should be added, what existing businesses should be divested, whether to integrate forward or backward and such other strategic options are decided by the owner or chief executive of the organization. 35. How to develop strategic alternatives in medium and large organization? Brainstorming Sessions Special Meetings Outside Consultants Joint Meetings 36. What are Critical Success Factors? Critical success Factors are those product features that are particularly valued by a group of customers, and, therefore, where the organisation must excel to outperform competition. 37. What are the Major Sources of CSFs? Rockart has identified four major sources of CSFs www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 2.7 CMA INTER SM CHAPTER-2 SUMMARY Structure of the Industry Competitive strategy, industry position and geographic location Environmental Factors: Temporal factors 38. What is Strategic Decision Making? Rationality of human decision makers is bounded by our own cognitive capabilities. We tend to fall back on certain rules of thumb or heuristics that help us to make sense out of a complex and uncertain world. 39. What are some of the biases? Some of the biases are as follows: The prior hypothesis bias: refers to the fact that decision makers who have strong prior beliefs about the relationship between two variables tend to make decisions on the basis of these beliefs, even when presented with evidence that their beliefs are wrong. Escalating commitment: occurs when decision makers, having already committed significant resources to a project, commit even more resources even if they receive feedback that the project is failing. Reasoning by analogy: involves the use of simple analogies (comparisons) to make sense out of complex problems. The problem with this heuristic is that the analogy may not be valid. Representativeness: is rooted tendency to generalize from a small sample or even a single vivid anecdote. This bias violates the statistical law of large numbers, which says that it is inappropriate to generalize from a small sample, let alone from a single case. Illusion of control: the tendency to over-estimate one’s ability to control events. They tend to be overconfident about their ability to succeed. According to Richard Roll, such overconfidence leads to what he has termed as the hubris hypothesis of takeover. 40. What are the different Techniques for Improving Decision Making? Devil’s advocacy One member of the decision-making group acts as the devil’s advocate, emphasizing all the reasons that might make the proposal unacceptable. In this way, decision makers can become aware of the possible perils of recommended courses of action. Dialectic inquiry It is more complex because it requires the generation of a plan (a thesis) and a counter-plan (an antithesis) that reflect plausible but conflicting courses of action. Strategic managers listen to a debate between advocates of the plan and counter-plan and then decide which plan will lead to higher performance. The outside view It requires planners to identify a reference class of analogous past strategic initiatives, determine whether those initiatives succeeded or failed, and evaluate the project at hand against those prior initiatives. 41. What is Group Think? Concept was given by psychologist Irvin Janis. It occurs when a group of decision makers embarks upon a course of action without questioning underlying assumptions. www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 2.8 CMA INTER SM CHAPTER-2 SUMMARY Multiple Choice Questions 1. This ________ provides the broad ‘data’ from which to identify key drivers of change. a. SWOT analysis b. BCG matrix c. PESTEL analysis d. Critical Success Factors 2. Environment is ________. a. complex b. dynamic c. Multi-faceted d. All of the above 3. ___________are the growth rate of the economy, interest rates, currency exchange rates, and inflation (or deflation) rates. a. Macro-economic forces b. Demographic forces c. Technological forces d. Political forces 4. __________ are outcomes of changes in the characteristics of a population. a. Macro-economic forces b. Demographic forces c. Technological forces d. Political forces 5. What describes the categories of activities within and around an organisation, which together create a product or service? a. SWOT analysis b. BCG framework c. Value Chain d. Brain storming 6. ______________transform these inputs into the final product or service. a. Operations b. Inbound logistics c. Outbound logistics d. Service 7. _______includes those activities that enhance or maintain the value of product or service, such as installation, repair, training and spares a. Operations b. Inbound logistics c. Outbound logistics d. Service 8. _________are companies that are not currently competing in an industry, but have the capability to do so if they choose. a. Established companies b. Potential competitors c. Rivals d. Competitors 9. Absolute cost advantages arise from a. superior production operations and processes b. control of particular inputs required for production c. access to cheaper funds d. all of the above 10. A __________is a business unit in a growing market, but not yet with high market share. a. cash cow b. dog c. question mark d. star State True or False 1. Entry barriers are economic, strategic, and emotional factors that prevent companies from leaving an industry. F 2. Value chain puts corporate headquarters into the role of an internal banker. F 3. Decentralised planning involves formulating plans that are based upon “what-if” scenarios about the future. F 4. Critical success Factors are those product features that are particularly valued by an organisation. F 5. Escalating commitment is rooted tendency to generalize from a small sample or even a single vivid anecdote.F 6. Group Think concept was given by psychologist Daniel Goleman. F www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 2.9 CMA INTER SM CHAPTER-2 SUMMARY 7. Growing demand tends to increase rivalry. F 8. Companies in fragmented industries sometimes seek to reduce threat by following the prices set by the dominant company in the industry. F 9. A fragmented industry consists of a large number of small or medium-sized companies, each is in a position to determine industry price. F 10. When switching costs are low, customers can be locked in to the product offerings of established companies. F 11. Established companies are companies that are not currently competing in an industry, but have the capability to do so if they choose. F 12. Social influences refer to innovations such as artificial intelligence, internet, nano-technology, or the rise of new composite materials. F Fill in the Blanks 1. An ______is a group of firms producing the same principal product or service. industry 2. _________activities are directly concerned with the creation or delivery of a product or service. Primary 3. ________logistics are activities concerned with receiving; storing and distributing inputs to the product or service. Inbound 4. Service includes those activities that ______or _________the value of product or service. enhance, maintain 5. ________helps to identify the sources of competition in an industry or sector. Porter’s Five Forces framework 6. ________competitors are companies that are not currently competing in an industry, but have the capability to do so if they choose. Potential 7. _________companies are those which are already operating in an industry. Established 8. _________exists when consumers have a preference for the products of established companies. Brand loyalty 9. Rivalry refers to the ________struggle between companies within an industry to gain market share from each other. competitive 10. A _________industry consists of a large number of small or medium-sized companies, none of which is in a position to determine industry price. fragmented www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 2.10 CMA INTER SM CHAPTER-2 SUMMARY 11. A ______industry is dominated by a small number of large companies (an oligopoly) or, in extreme cases, by just one company (a monopoly), and companies often are in a position to determine industry prices. consolidated www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 2.11 CMA INTER SM CHAPTER-3 SUMMARY STRATEGY FORMULATION & IMPLEMETATION 1. Is it true that Successful strategy formulation does not guarantee successful strategy implementation? Yes. The complexities in the task of implementation arise from a number of organisational adjustments that are required over an extended period of time and the need to match them all to the strategy. 2. What is Production Strategy? The production system is concerned with the capacity, location, layout, product or service design, work systems, degree of automation, extent of vertical integration and such factors. 3. What is Supply Chain Strategy The term supply chain management refers to the task of managing the flow of inputs and components from suppliers into the company’s production processes to minimize inventory holding and maximize inventory turnover. 4. What are the Limitations of JIT? The drawback of JIT systems is that they leave a company without a buffer stock of inventory. Although buffer stocks are expensive to store, they can help a company prepare for shortages on inputs brought about by disruption among suppliers (for instance, a labour dispute at a key supplier), and can help a company respond quickly to increases in demand. 5. How to overcome limitations of JIT? To reduce the risks linked to dependence on just one supplier for an important input, a company might decide to source inputs from multiple suppliers. 6. What is Marketing Strategy? Marketing strategy refers to the position that a company takes with regard to market segmentation, pricing, promotion, advertising, product design, and distribution. 7. What is Human Resource Strategy? The challenge for a company’s human resource function is to devise ways to increase employee productivity. Among its choices are using certain hiring strategies, training employees, organizing the workforce into self-managing teams, and linking pay to performance. 8. What is Hiring Strategy? Organizations hire people who have a positive attitude and who work well in teams because it believes that people who have a positive attitude will work hard and interact well with customers, therefore helping to create customer loyalty. 9. What do we mean by Self-Managing Teams? The use of self-managing teams, whose members coordinate their own activities and make their own hiring, training, work, and reward decisions, has been spreading rapidly. www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 3.1 CMA INTER SM CHAPTER-3 SUMMARY 10. How to consider People as a resource? Audits to assess HR requirements Goal-setting and performance assessment of individuals and teams. Planning of rewards Recruitment and retention Training and development 11. What is the relation of People and behaviour? People are not like other resources. They influence strategy both through their competence and through their collective behaviour (culture). 12. How to organize people? Organising people may be broadly discussed into the following three areas namely HR function, Line managers and structure and processes. The HR function Middle (line) managers Structures and processes 13. What is Formal Structure of an organization? Managers often describe their organisation by drawing an organisation chart, mapping out its formal structure. These structural charts define the ‘levels’ and roles in an organisation. They are important to managers because they describe who is responsible for what. 14. What are the basic types of organizational structures? The five basic structural types: are functional, multidivisional, matrix, transnational and project. 15. Define The Functional Structure A functional structure is based on the primary activities that have to be undertaken by an organisation such as production, finance and accounting, marketing, human resources and research and development. 16. Define The Multidivisional Structure www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 3.2 CMA INTER SM CHAPTER-3 SUMMARY A multidivisional structure is built up of separate divisions on the basis of products, services or geographical areas. 17. Define The Matrix Structure A matrix structure is a combination of structures which could take the form of product and geographical divisions or functional and divisional structures operating in tandem. It provides professionals with broader range of responsibilities. 18. Define The transnational structure A transnational structure combines the local responsiveness of the international subsidiary with the coordination advantages found in global product companies. The transnational structure seeks to obtain the best from the two extreme international strategies, the multi domestic strategy and the global strategy. 19. Define Project-based structures. A project-based structure is one where teams are created, undertake the work and are then dissolved. This can be particularly appropriate for organisations that deliver large and expensive goods or services (civil engineering, information systems, films) or those delivering time-limited events (conferences, sporting events or consulting engagements www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 3.3 CMA INTER SM CHAPTER-3 SUMMARY 20. How to choose best structure? Michael Goold and Andrew Campbell provide 9 design tests against which to check specific tailor-made structural solutions. The first four tests stress fit with the key objectives and constraints of the organisation: The Market-Advantage Test. This test of fit with market strategy is fundamental, following Alfred Chandler’s classic principle that ‘structure follows strategy’. For example, if coordination between two steps in a production process is important to market advantage, then they should probably be placed in the same structural unit. The Parenting Advantage Test. The structural design should fit the ‘parenting’ role of the corporate centre. For example, if the corporate centre aims to add value as a synergy manager, then it should design a structure that places important integrative specialisms, such as marketing or research, at the centre. The People Test. The structural design must fit the people available. It is dangerous to switch completely from a functional structure to a multidivisional structure if, as is likely, the organisation lacks managers with competence in running decentralised business units. The Feasibility Test. This is a catch-all category, indicating that the structure must fit legal, stakeholder, trade union or similar constraints. For example, after scandals involving biased research, investment banks are now required by financial regulators to separate their research and analysis departments from their deal-making departments. Goold and Campbell then propose five tests based on good general design principles, as follows: The Specialised Cultures Test. This test reflects the value of bringing together specialists so that they can develop their expertise in close collaboration with each other. A structure fails if it breaks up important specialist cultures. The Difficult Links Test. This test asks whether a proposed structure will set up links between parts of the organisations that are important but bound to be strained. For example, extreme decentralisation to profit accountable business units is likely to strain relationships with a central research and development department. Unless compensating mechanisms are put in place, this kind of structure is likely to fail. The Redundant Hierarchy Test. Any structural design should be checked in case it has too many layers of management, causing undue blockages and expense. Delayering in response to redundant hierarchies has been an important structural trend in recent years. The Accountability Test. This test stresses the importance of clear lines of accountability, ensuring the control and commitment of managers throughout the structure. Because of their dual lines of reporting, matrix structures are often accused of lacking clear accountability. The Flexibility Test. In a fast-moving world, an important test is the extent to which a design will allow for change in the future. For instance, divisional domains should be specified broadly enough to allow divisional managers to follow new opportunities as they emerge. Goold and Campbell’s nine tests provide a rigorous screen for effective structures. But even if the structural design passes these tests, the structure still needs to be matched to the other strands of the organisation’s configuration, its processes and relationships. Each strand will have to reinforce the others. 21. What is SBU Structure? www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 3.4 CMA INTER SM CHAPTER-3 SUMMARY A strategic business unit (SBU) is a part of an organisation for which there is a distinct external market for goods or services that is different from another SBU. The identification of an organisation’s SBUs helps the development of business level strategies since these may need to vary from one SBU to another. 22. How to identify appropriate SBU? There are external and internal criteria that can help in identifying appropriate SBUs: Market-based criteria. Capabilities-based criteria. 23. What are the points of Distinction between strategy formulation and strategy implementation? According to David (2005) the following are the differences between the two 24. What is Business Process Re-engineering? Business Process Engineering may be considered to be a radical redesign of business processes often used by companies to cut costs and return to profitability. 25. What are the reasons behind BPR? An organisation needs dramatic improvements to sustain itself The need for re-engineering can be felt by the management keeping in mind the imminent problems that the organisation is expected to face in the future www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 3.5 CMA INTER SM CHAPTER-3 SUMMARY To be in better position than they are currently in. 26. What are the major Concerns in BPR? In many instances has produced disappointing result. Most business processes are complex. To redesign a process one must first understand it. Process mapping exercises reveal that even seemingly simple business processes, such as the procurement of office supplies, involve complex and sophisticated systems of interactions among a number of organizational members. Many organizational routines operate without any single person fully understanding the mechanism. 27. What is Strategic Control? Strategic control systems refer to the mechanism that allows managers to monitor and evaluate whether their business model is working as intended and how it could be improved. 28. What are the Levels of Strategic Control? Strategic control systems are developed to measure performance at four levels in a company: corporate, divisional, functional, and individual. 29. What are the Types of General Control Systems? We consider three types of control systems: personal control, output control, and behaviour control. 30. What are the types of Strategic controls? There are four types of strategic controls: Premise Control Strategic Surveillance Special Alert Control Implementation Control 31. What are the different Approaches to Strategic Control? According to Dess, Lumpkin and Taylor (2003), there are two approaches to strategic control namely, Traditional Approach and Contemporary Approach. 32. What is the Role of Strategic Control? An important element of strategic control is to design a system that sets ambitious goals and targets for all managers and employees and then develops performance measures that stretch and encourage managers and employees to excel in their quest to raise performance. 33. What are basic Guidelines for Proper Control? The following guidelines are recommended: Control should involve only the minimum amount of information needed to give a reliable picture of events: Too many controls create confusion. Control must be reasonable. Controls do not work unless they are acceptable to those who apply them. Controls should monitor only meaningful activities and results Controls must be flexible to take care of changing circumstances. Controls should be timely www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 3.6 CMA INTER SM CHAPTER-3 SUMMARY Long-term and short-term controls should be used Controls should aim at pinpointing exceptions Emphasize the reward of meeting or exceeding standards rather than punishment 34. What is Operational Control? It provides post action evaluation and control over short periods involve systematic evaluation of performance against predetermined objectives. In order to have effective operational control systems an organisation must follow four steps as under: Setting of Standards Measurement of Performance Identifying Deviations Taking Corrective Action Reformulating Strategies, Plans and Objectives 35. What is Task Control? The term task control refers to the process of ensuring that specific tasks are carried out effectively and efficiently. 36. What is KRA? The term Key Result Areas (KRAs) refers to a short list of overall goals that guide how an individual does their job, or general achievement and progress goals for an organization or one of its divisions. KRAs help define the scope of a job or a department or an organization’s goals, and define the optimum outcomes and results of daily work. 37. What are the problems in developing KRA’s? Lack of Clarity Distractions Top-Down Imposition of KRAs 38. What are Key Performance Areas? Key Performance Areas (KPAs) describe broad areas of responsibility for which a department or organization or individual employee may be responsible. 39. What are some Important Key Performance Areas? Financials: These include basics like revenue, costs, net profits, and trends that affect all three. Customer Satisfaction: These deals with customers complain about the business or products, product return rate and the results of customer satisfaction surveys. Market Perception: This includes how customers and potential customers view the company or its products. Productivity: These include accomplishing of organisational major goals, meeting the everyday requirements to keep the organisation moving forward and keeping its customers satisfied. 40. What is KPI? A key performance indicator (KPI) is any metric that measures whether an organization is meeting certain objectives and goals that are set to help the organization succeed. www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 3.7 CMA INTER SM CHAPTER-3 SUMMARY 41. What is Goal Congruence? Goal congruence is the term that is used to describe the situation when the goals of different interest groups coincide. The achievement of goal congruence is essential in order to increase the profitability of the organisation and to achieve its goals. 42. What is Agency Theory? Agency theory views the firm as a nexus of legal contracts. The managerial implication of agency theory relates to the management functions of organization and control. It offers a way of understanding why managers do not always act in the best interests of stakeholders and why they might sometimes behave unethically, and, perhaps, also illegally. 43. How to achieving Goal Congruence? Goal congruence can be achieved, and at the same time, the agency problem can be dealt with, providing managers with incentives which are related to profits or share price, or other factors. 44. How to deal with agency problem? Pay or bonuses related to the size of profits termed as profit-related pay. Rewarding managers with share options. www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 3.8 CMA INTER SM CHAPTER-4 SUMMARY Digital Strategy 1. What do we mean by Digital technologies? In scientific terms, digital technology is a technology in which information is represented in digital form, i.e., as 0s and 1s. 2. What is the history of digital technologies? The invention of transistor in the year 1947 is often credited with the beginning of digital technology era. The Digital Revolution began between the late 1950’s and 1970’s with the transition of technology from mechanical and analog to digital. Governments across the world were using computers and by 1970s and many household had personal computers. 3. What is digital strategy? A digital strategy, sometimes called a digital media strategy, is a plan for maximizing the business benefits of data assets and technology-focused initiatives. A successful digital strategy requires a cross- functional team with executive leadership, marketing and information technology (IT) members. 4. Whether digital transformation and digital strategy are same or different? Digital transformation drives change in three areas: customer experience, operational processes and business models. The process of digital transformation requires coordination across the entire organization, and involves business culture changes. Digital strategy, on the other hand, focuses on technology, not culture. 5. What are the 5 basic questions for digital transformation? The five following questions become relevant for an organisation’s digital transformation: 1) Does digital technology change the businesses you should be in? 2) How could digital technology improve the way you add value to the businesses you are in? 3) Could digital technology change your target customer? 4) Does digital technology affect the value proposition to your target customer? 5) How can digital technology enhance the enterprise capabilities that differentiate you from your competition? 6. How can we use Digital Transformation for Competitive Advantages? When ‘trans-created’ solutions are offered by an entity to solve customers’ problems, meet their latent demands, and/or simplify operating processes, that business entity starts operating in a strategically created ‘blue ocean’ market space in that traditional sector. The phrase ‘trans-created’ means creation of a new versatile product and/or related business model transforming a traditional one run by legacy systems. 7. What are the Common elements of Digital Strategy? Choose a Leader Attack vs. Defend Take a Measured Approach. Future Proof www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 4.1 CMA INTER SM CHAPTER-4 SUMMARY 8. What are the Layers of Digital Transformation? The following 7 layers simplify the task of DT 1) Data aggregation - Aggregation of business relevant data from reliable sources, including conversion of analogue data to digital form and store for easy retrieval. 2) Data management - Categorising and organising the digitised data and making it ready for application of further processes. 3) Workflow automation - Application of algorithms and utilising the data for the business process to be envisioned. 4) Process component - Application of algorithms and start utilising the data for the business process. 5) Platform interface integration - Integrating the digital system with the core systems for smoother operations. 6) End to end processing - Conducting end to end processing and ensure error free transformation. 7) Front end software - Integrating with the front end of stakeholders’ devices so that she/he can get seamless services in a technologically collaborated mode. 9. What are disruptive technologies? Disruptive technologies in the literature refer to technologies that have the potential to introduce new product attributes, which could become a source of competitive advantage. 10. What is Big Data? Big data is a collection of data that is huge in volume and is growing exponentially with time. It is a data with so large size and complexity that none of traditional data management tools can store it or process it efficiently. 11. What are the characteristics of Big Data? Big Data can be described by the following characteristics: Volume Variety Velocity Variability 12. What are the benefits of Big Data processing? Businesses can utilize outside intelligence while taking decisions. Improved customer service. Early identification of risk to the product/services, if any. Better operational efficiency. 13. What is Cloud Computing? Cloud computing is a general term for anything that involves delivering hosted services over the internet. ‹ These services are divided into three main categories or types of cloud computing: Infrastructure as a service (IaaS), Platform as a service (PaaS) and Software as a service (SaaS). ‹ A cloud can be private or public. 14. What are the benefits of Cloud Computing? www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 4.2 CMA INTER SM CHAPTER-4 SUMMARY Cost management Data and workload mobility Business continuity and disaster recovery (BCDR) 15. What are the demerits of cloud computing? Cloud security Cost unpredictability Lack of capability and expertise IT governance Compliance with industry laws Management of multiple clouds Cloud performance Building a private cloud Cloud migration Vendor lock-in 16. What is Artificial Intelligence? Artificial intelligence (AI) is intelligence exhibited by machines and systems, with machines imitating functions which are mostly related with human cognition. There are three levels of AI namely; Narrow AI, General AI/human-level and Super AI. Machine learning (ML) describes automated learning of implicit properties of, or underlying rules for data. It is a major component for implementing 17. What is Blockchain? Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (house, car, cash, land, etc.) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved. The importance of block chain network stems from the fact that business runs on information. The information should be accurate and received fast. 18. What are the important components of a block chain? Distributed ledger technology Immutable records Smart contracts 19. What are the benefits of blockchain network? Increased trust Greater security Increased efficiencies 20. What is Robotic Process Automation? Robotic Process Automation (RPA) is a form of business process automation that allows anyone to define a set of instructions for a robot or ‘bot’ to perform. RPA bots are capable of mimicking most human-computer interactions to carry out a ton of error-free tasks, at high volume and speed. www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 4.3 CMA INTER SM CHAPTER-4 SUMMARY 21. What are the benefits of Robotic Process Automation? Decreased cycle times Flexibility and scalability Improved accuracy Improved employee morale Detailed data capture 22. What is Digitalisation of Sports? Technology is playing a larger role than ever in the lives of diehard fans and followers, opening the way for sports organisations to create new, innovative customer experiences. 23. What is Internet of Things? The internet of things (IoT) is a system of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction. A thing in the internet of things can be anything from a person with a heart monitor implant, a farm animal with a biochip transponder, an automobile that has built-in sensors to alert the driver when tire pressure is low or any other natural or man-made object that can be assigned an Internet Protocol (IP) address and is able to transfer data over a network. 24. What is Smart Lighting? Bulbs and battens connected to Wifi can be turned on and off remotely. Schedule for usage can be set for these devices along with their brightnesses controlled and their power consumption monitored. Using other IoT devices, smart lighting devices can also be turned on and off by voice alone. The power consumption of these devices can also be easily monitored using IoT. 25. What is Smart Parking? Use of IoT in such facilities for counting the number of cars that have driven into the facility and the number that have driven out. Specific devices can also give you the exact location where you have parked your car so you are not lost. 26. What are Medical Fridges? Vials of vaccines and medicines can often be spoiled if they are not kept at the correct temperatures. Medical refrigerators cannot be monitored throughout the day, especially in person. Having IoT sensors inside medical fridges can enable them to be monitored remotely, and their temperature changed as per requirement 27. What are the different types of digital marketing strategies? The different types of digital marketing strategies are as follows: Social Media Marketing Platforms Influencer Marketing Email Marketing Content Marketing Search Engine Optimization (SEO) Marketing Pay-per-click (PPC) Affiliate Marketing Mobile Marketing www.coceducation.com For Enquiry Call / Whatsapp at: 9999631597, 8448322142, 7303445575 4.4 COC EDUCATION PVT. LTD. WWW.COCEDUCATION.COM Get Latest Studio Recorded Classes for Upcoming Attempts Dec’24 Attempt June’25 Attempt CMA INTER & FINAL STUDENTS Get All Subjects Combo & Avail Additional Benefits with Discount. FOR CLASSES CALL NOW : +91 -9999631597, 7303445575, 8448322142, 7011668629
