ASSIGNMENT DRIVE SPRING 2020

PROGRAM BACHELOR OF BUSINESS ADMINISTRATION (BBA)

SEMESTER IV

SUBJECT CODE & NAME - BBA409 – SMALL BUSINESS MANAGEMENT

Q1 List and explain the three levels of Strategy. Differentiate and provide their
characteristics.

Answer:-

a) Explanation of the three levels of Strategy.

1. Corporate strategy: This is the strategy adopted for the entire company which generally covers
Finance, Human Relations and the values and ethical dimensions of operations of a company. In
a single product company, the strategy worked out will also cover all the functional strategies.

2. Business strategy: In a multi-product company, this refers to the strategy to be adopted by

each division, also known as Strategic Business Unit (SBU) of the company.

3. Functional strategy: This refers to the strategy to be followed in each function as Finance,
Marketing etc. For instance, the marketing strategy will cover the appropriate channel of
distribution.

b) Difference

Characteristic Corporate Business Functional

Type Conceptual Mixed operational
Measurability Value judgment Semi-quantifiable Usually quantifiable
dominant
Frequency Periodic or Sporadic Periodic or Sporadic Periodic
Risk Wide range Moderate Low
Profit potential Large Medium Small
Cost Major Medium Modest
 Time horizon Long Range Medium Range Short Range
Relation to present Innovative Mixed Supplementary
activities

Q2 ISO 9001:2000 is based on 8 Quality Management principles. List and explain the
principles.

Answer:-

Explanation of the 8 principles:-

Principle-1: Customer Focus

Organisations exist because of their customers. It’s extremely important that organisations not
only cater to existing needs of their customers but should be able to anticipate customers’ future
needs too. It’s not only about meeting customer’s requirements but exceeding their expectations.

Principle-2: Leadership

Great leaders bring in the vision and set an example for the workforce to follow. The
responsibility lies with them to create and motivate the employees to help a company achieve its
goals and objectives.

Principle-3: Involvement of People

Human resources are the real asset for any organisation. Employees cutting across levels should
be encouraged to participate wholly, and help the organisation reach its targets.

Principle-4: Process Approach

A good process in place, along with a judicious management of available resources ensures a
company attaining its desired goals.

Principle-5: Systems Approach to Management

A sound systems-based approach which can recognise, study and manage all the interlinked
processes in the company ensures that the company meets its goals and targets more effectively.

Principle-6: Continual Improvement

Company should aspire to continuously work on improvising its overall performance

Principle-7: Factual Approach to Decision Making

Analysis of data, facts and figures should guide the decision making process for companies.

Principle-8: Mutually Beneficial Supplier Relationships

Since the company and its suppliers are dependent on each other, a win win situation for both
needs to be considered. Such synergies add value to all parties involved.

Q3 To be effective a manager requires some basic managerial skills. List and explain them.

Answer:-

To be effective a manager requires the following basic managerial skills:

1. Planning

2. organising

3. Setting goals (prioritise and posterioritise)

4. Self assessment (contribution, productivity)

5. Team building (participation, interpersonal)

6. Managing time and stress

7. Problem solving and decision-making

8. Creativity
9. Communication and listening (multi-culture)

10. Emotional intelligence.

The above skills are briefly discussed below:

1. Planning

Planning is looking forward. Since managers are responsible for results, a manager has to be pro-
active. As a planner he has to find answers for some basic questions like:

 What is that we want to achieve?

 What are things that need to be done to achieve the results?

 What resources are needed to perform those activities and how to procure them?

 What do we do if things do not turn out as planned?

2. Setting goals

Goal setting is part of the planning process. A key task of a manger is to set goals – for the
organisation, department, people and himself. Goals provide the direction for channelising
resources and activities. Framing goals also lets one decide on priorities and allocation of
resources guided by such priorities. Determining what goals to be pursued also enables one to
schedule activities. Goals act as motivation to perform also.

3. Organising

Results are achieved by executing planned set of actions. This needs resources. The resources
required will be a combination of the following types:

 material – raw materials, consumables, others

 men – operators, staff, specialists, etc.

 machine – equipment, tools, etc.

 methods – systems and procedures

 money – the financial resources required to procure resources and perform activities

 time.

A manager must be able to combine these results in an optimum mix to achieve the planned
results in the most efficient manner possible.

4. Self assessment

A manager is expected to periodically assess the progress made and results achieved. Such
assessment includes his contribution to results and efficiency with which he has performed his
tasks. (Managerial appraisal is discussed in more detail in a separate section of this unit.)

5. Team building

Even a small organisation needs several people to work to achieve its purpose. Henry Ford had
said, “coming together is a beginning, staying together is progress and working together is
success”. A manager has the responsibility to weld together a group of people to work
concertedly to achieve the goals of the organisation.

Hence, a manager must become a team builder and a team leader.

6. Managing time and stress

Work involves stress. Managers have goals that have deadlines. They have often limited
resources to achieve the goals. Working to meet deadlines with limited resources invariably
induces stress. A survey by an insurance company revealed that work-related stress is a single
major contributor to health problems.

A manager needs to capably manage time by planning, prioritising, scheduling, delegating, etc.
Healthy personal habits, maintaining a balance between work and life, etc. help in reducing
stress.

Keeping oneself updated in one’s area of specialisation helps one to perform the job competently
and efficiently. The confidence and success that result are stress busters themselves.
Similarly, maintaining healthy personal relationship with bosses (if any), colleagues and
subordinates at work reduces conflicts and stress that result from such conflicts.

7. Problem solving and decision-making

A manager encounters problems every day. These may be technical issues, people issues or
issues from sources external to the organisation. A problem can be viewed as an unexpected and
undesired occurrence. There can be many sources for problems to arise like: lack of adequate
planning; short-term approach, lack of adequate resources, equipment, tools and facilities;
inadequacy of skills, indiscipline, inadequate leadership or motivation; deficiency in quality, lack
of systems and procedures, etc.

8. Creativity

Creative skills are important for a manager because we can see an increasing trend towards
innovation in products, processes aimed at meeting customer needs and expectations and keeping
competition at bay. In a rapidly changing world, new challenges arise constantly. These require
appropriate new responses. Creativity is the engine that powers such responses.

9. Communication& listening

When managers are not thinking or doing things themselves, they are communicating. Getting
things done by others is possible only through communication – intentions, information,
instructions, etc. Thus, engaging in communication is integral to the job of a manager. A good
communicator may not be a good manager but a good manager is a good communicator.

10. Emotional intelligence

“Emotional intelligence (EI) is the ability to identify, assess, and control the emotions of oneself,
of others, and of groups”, explains the Wikipedia. In an increasingly fast-paced, result-driven,
activity-oriented world, emotional health of an individual is constantly under attack. Managers
must need to manage not only their own emotions but also that of those they interact with –
employees, customers, suppliers, other business associates, etc. The emotional health of a person
often affects his performance at work and so becomes an important factor that a manager needs
to be good at managing.