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June 2026Q. 2A(i)5 marksSyllabus 2022
(i)What is Strategic Gap ? Explain the meaning, causes and significance of strategic gap in strategic management theory.
Meaning of Strategic Gap
A strategic gap refers to the difference between the desired future performance of an organisation and its expected current performance level, if no new strategies are implemented.
It highlights the gap between where a firm is currently situated where it should be situated for sustainable, long-term growth. The strategic gap arises when existing strategies are insufficient to achieve organisational goals. The gap can be identified through tools like forecasting, budgeting, and environmental analysis. It signals the need for strategic change or intervention.
Causes of Strategic Gap
The strategic gap may be occurred due to :
•change in external environment (competition, technology, regulation)
•inefficient internal resources or capabilities
•over- ambitious goals or poor planning.
Significance of Strategic Gaps
The significance of strategic gap inter-alia includes the following:
•It helps management in early identification of performance shortfall.
•It encourages formulation of new strategies (expansion, diversification, cost reduction, etc.)
•It aids in better resource allocation and planning.
•It improves long-term sustainability and competitiveness.
Thus, strategic gap acts as a critical diagnostic tool in strategic management, enabling organisations to take proactive steps to align their current performance with future objectives.
Source: ICSI Guideline Answers, June 2026, Q. 2A(i) (Syllabus 2022).
June 2025Q. 2A(ii)5 marksSyllabus 2022
(ii)Prax Ltd. wants to expand its supply chain operations to Europe and USA where company has its strong customer base and need to form a logistics strategy for ease of operations. Advise the company on the elements to be included in its effective logistics strategy plan.
Prax Ltd. can include the following elements in its Logistics Strategy plan to make it more effective:
1.Customer service policy – The appropriate level of service for customers, by product group or market segment; considering: order fulfilment requirements, enquiry and investigation capability and the available information. The customer service policy informs the nodes and links of the supply network.
2.Inventory location policy (Supply Network nodes) – Centralised or decentralised inventory; whether to differentiate facilities by fast- and slow-moving stock; location of sites; use of specific technologies and layouts; company-owned or contracted facilities.
3.Inventory policy – Form and function of inventory by location; the appropriate amount of stock to hold for various groups of inventories; planning structure that links outbound and inbound materials.
4.Cost plan – Trade-off analysis between cost and service level requirements; cost of Logistics operations.
5.Transport and distribution (Supply Network links) policy – Affected by whether enterprise
imports or exports and the size and structure of conurbations being served. This incorporates transport modes, delivery pattern and storage location considerations, based on the time taken for deliveries.
6.IT and Communications capability- Technologies (including software) that will be internally developed; buy planning and scheduling applications from single supplier or obtain ‘best of breed’ applications.
7.Logistics organisation structure- Function or flow based; allocation of responsibilities; managed or self-managed teams.
8.Logistics Targets and metrics- Measures of performance and achievement targets; operations improvements process and management
Source: ICSI Guideline Answers, June 2025, Q. 2A(ii) (Syllabus 2022).
December 2024Q. 74 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Retention Strategy relating to Human Resource relates to :
(A)Collaborating with other organizations to learn from how others do things, allow employees to gain skills and knowledge not previously available in their own organization.
(B)Providing the current staff with training and development opportunities to encompass new roles in the organization.
(C)Improving organization’s employee retention and boosting employee satisfaction.
(D)Recruiting new hires that already have the skills the organization will need in the future.
Answer: (C) Improving organization’s employee retention and boosting employee satisfaction.
Source: ICSI Guideline Answers (answer key), December 2024, Q. 74 (Financial and Strategic Management paper, Syllabus 2017).
December 2024Q. 76 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The purpose of supply chain management is :
(A)Provide customer satisfaction
(B)Improve quality of a product
(C)Increase production
(D)Integrating supply and demand management
Answer: (D) Integrating supply and demand management
Source: ICSI Guideline Answers (answer key), December 2024, Q. 76 (Financial and Strategic Management paper, Syllabus 2017).
December 2024Q. 77 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
A campaign advocating the message of ‘SAVE TREE’ is :
(A)Social Marketing
(B)Holistic Marketing
(C)Services Marketing
(D)Rural Marketing
Answer: (A) Social Marketing
Source: ICSI Guideline Answers (answer key), December 2024, Q. 77 (Financial and Strategic Management paper, Syllabus 2017).
December 2024Q. 78 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Financial objectives involve all of the following, excluding :
(A)Growth in revenues
(B)Higher dividends
(C)Larger market share
(D)Greater return on investment
Answer: (C) Larger market share
Source: ICSI Guideline Answers (answer key), December 2024, Q. 78 (Financial and Strategic Management paper, Syllabus 2017).
December 2024Q. 100 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
.............. is defined as the set of guiding principles, driving forces and ingrained attitudes that help to coordinate goals, plans and policies between partners across a given supply chain.
(A)Supply Chain Strategy
(B)Logistic Strategy
(C)Business Coordination Strategy
(D)Business Development Strategy
Answer: (B) Logistic Strategy
Source: ICSI Guideline Answers (answer key), December 2024, Q. 100 (Financial and Strategic Management paper, Syllabus 2017).
December 2024Q. 1(b)10 marksSyllabus 2022
1.Case Study :
(b)Dr. D. N. Dutta inherited his father’s Dutta’s Laboratory in Delhi in 1953. Till 2001, he owned 3 labs in the National Capital Region (NCR). His ambition was to turn it into a national chain. The numbers increased to 5 in 2003 across the country including the acquisition of Platinum Lab in Mumbai. The number is likely to go to 40 within 2-3 years from 18 at present. Infusion of ₹ 26 crore for 26% stake by Pharma Capital in this company has its growth strategy.
The Lab with a revenue of ₹ 70 crore is among top three pathological labs in India with Atlantic ( ₹ 76 crores) and Pacific ( ₹ 56 crores). Yet its market share is only 2% of ₹ 3,600 crores market. The top 3 firms command only 6% as against 40-45% by their counterparts in the USA.
There are about 25,000 to 1,00,000 standalone labs engaged in routine pathological business in India, with no system of mandatory licensing and registration. That is why Dr. D. N. Dutta has not gone for acquisition or joint ventures. He does not find many existing laboratories meeting quality standards. His six labs have been accredited nationally whereon many large hospitals have not thought of accreditation. The College of American pathologists’ accreditation of Dutta’s Lab would help it to reach clients outside India.
In Dutta’s Lab the bio-chemistry and blood testing equipments are sanitized every day. The bar coding and automated registration of patients do not allow any identity mix-ups. Even routine tests are conducted with highly sophisticated systems. Technical expertise enables them to carry out 1660 variety of tests. Same day reports are available for samples reaching by 4 PM and by 8 AM next day for samples from 550 collection centers located across the country. Their technicians work round the clock, unlike competitors. Home service for collection and reporting is also available.
There is a huge unutilized capacity. Now, it is trying to stop other segments. 20% of its total business comes through its main laboratory which acts as a reference lab for many leading hospitals. New mega labs are being built to encash pre-clinical and multi-centre clinical trials within India and provide post graduate training to the pathologists.
Considering the above situation answer the following :
(i)What was the vision of Dr. D. N. Dutta at the time of inheritance of Dutta’s Lab ? Has it been achieved
(ii)What was the business strategy adopted by Dr. D. N. Dutta ?
(iii)What is the marketing strategy of Dr. D. N. Dutta to overtake his competitors ?
(iv)In your opinion what could be the biggest weakness in Dr. D. N. Dutta’s business strategy ?
(i)Dr. D. N. Dutta’s vision at the time of inheritance of Dutta’s Laboratory was to turn it into a national chain of pathological laboratories.
The same has broadly been achieved, though it could have been more. He is in the process of achieving the vision as 18 laboratories have been opened at present and targeted to increase to 40 within 2-3 years. However, the market share is low while comparing with external benchmarks from US markets at the same time.
(ii)To a large extent Dr. Dutta’s Lab has opted the business strategy of internal growth rather than going in for acquisitions or joint ventures. The reason for such a strategy is that Dr. D. N. Dutta found many existing laboratories are not meeting the quality standards and his six labs have been accredited nationally. To fund its growth and raise funds, it has also given a 26% stake to Pharma Capital against the infusion of ₹ 26 crores.
(iii)The marketing strategy of Dr. D. N. Dutta to overtake his competitors is to evolve his main laboratory as reference lab for many leading hospitals. This is a testimony of the level of confidence he enjoys among the medical professionals. It provides a high level of customer services because of the following:-
a)Product mix: It possesses technical expertise to conduct 1660 variety of tests.
b)Quality: The laboratories use modern methods to conduct tests. Even routine tests are conducted with highly sophisticated systems. Technology such as bar coding and automated registration of patients is also used. Thus, there are no mistakes in the identity of samples. The bio-chemistry and blood testing equipments are sanitized every day.
c)Speed: The technicians in the laboratories are working round the clock. Further, the company is able to deliver the test reports faster using modern systems.
d)Convenience: Dutta’s Lab has 550 collection centers for the laboratories, thereby the reach is more. Additionally, system of collection of samples from home also provides convenience to the patients and others.
(iv)In the given case, Dr. D. N. Dutta has not gone for acquisition or joint ventures as he does not find many existing laboratories meeting the quality standards. Thus, it is the biggest weakness in capitalizing the opportunities through acquisition or joint ventures which could help in leveraging the existing goodwill. Expansions could have been faster and more.
Many of these labs must be enjoying a lot of goodwill in their region. In fact, trust and faith is prime element in every business especially in medical field such as a pathological laboratory.
On account of its size and available resources, Dutta’s Lab could have easily acquired some of these labs and to make them compatible with the business ideology and quality systems of the Dutta’s Lab. However, it appears that the company lacks the capability to modernize an existing laboratory.
Source: ICSI Guideline Answers, December 2024, Q. 1(b) (Syllabus 2022).
December 2024Q. 2(d)5 marksSyllabus 2022
(d)“Sunny Ville Bistro,” a cozy neighborhood café, has been struggling to attract a steady stream of customers despite offering high-quality food and excellent service. Recognizing the importance of an online presence, the owners decide to focus on enhancing their digital reputation. Through consistent effort, Sunny Ville Bistro’s online reputation improves, attracting more customers and establishing the café as a beloved local spot.
What were the key aspects of Sunny Ville Bistro’s marketing strategy, and how did they contribute to the café’s improved reputation and increased customer base ?
Key aspects of Sunny Ville Bristo Café ‘s marketing strategy included the following:
i)Building Out their Content Marketing
It was through content marketing that the Sunny Ville Bistro was able to initially build an audience. Engagement campaigns cannot work without followers already available. Posting interesting content, sharing curated content, and interacting with similar brands were the first step towards building Sunny Ville Bistro’s social media campaigns.
ii)Connecting Directly with Followers
When followers connected with Sunny Ville Bistro, the marketing team began to interact with them immediately asking them questions about their interests and their goals. This type of personal interaction is extraordinarily rare on social media today and served the purpose of not only establishing relationships with customers, but also showing them that this company was different.
iii)Getting the Followers to Come In
Ultimately, to get leads the marketing team needed to get people in the door, which was done through an online outreach. Once relationships were sufficiently established, the marketing team of Sunny Ville Bistro encouraged potential customers to come in to find out more about the cafe and what it could offer to them. By bringing in leads in this fashion, nearly all of the nurturing was done through the online platform.
Despite the time commitment, these strategies are scalable. Many large brands, like Wendy’s for example, have extremely active social media accounts, through which they interact with customers and respond to customers regularly. Unique to Sunny Ville Bistro, however, is the type of ongoing interactions, relationship building, and lead generation that the marketing team is engaged in. By establishing an individual rapport with each follower, the centre was able to send a message that it valued them.
Source: ICSI Guideline Answers, December 2024, Q. 2(d) (Syllabus 2022).
December 2024Q. 2A(iv)5 marksSyllabus 2022
(iv)“BrightFuture Tech,” a rapidly growing technology firm, is preparing to expand its operations into new markets and introduce innovative product lines. As the company gears up for this expansion, it faces the challenge of ensuring that its human resources are adequately aligned with its strategic goals. The management team recognizes the need for a comprehensive human resource strategy to support this growth.
How should BrightFuture Tech implement its human resource strategy to effectively support its expansion and achieve its strategic goals ?
Implementing Human Resource (HR) Strategy
a)Assessing the current HR capacity
This includes taking stock of the skills of the existing human resources of the organisation to have a clear understanding of the current skill set of the company. This will help in forecasting future HR requirements.
b)Forecasting HR requirements
This step includes projecting what the HR needs for the future and will be based on the strategic goals of the organization and assessment of total skillset of existing human resources. Some questions to be asked during this stage include:
•The positions to be filled in the future period.
•The number of staff will be required to meet the strategic goals of the organization.
•Effect of external environmental forces in getting new human resources.
c)Gap analysis
In this stage, one will make a comparison between existing and desired position of the organisation from strategic point of view. During this phase you should also review your current HR practices and if these require any amendments.
d)Developing HR strategies to support the strategies of the organization
The following HR strategies may be adopted to attain the organizational goals:
•Restructuring strategies
•Training and development strategies
•Recruitment strategies
•Outsourcing strategies
•Collaboration strategies
•Retention strategy
•Onboarding and orientation
•Mentorship programs
•Employee compensation
•Recognition and rewards systems
•Work-life balance
•Training and development
•Communication and Feedback
•Dealing with change
•Fostering teamwork
•Team celebration
Source: ICSI Guideline Answers, December 2024, Q. 2A(iv) (Syllabus 2022).
June 2024Q. 80 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following strategies is not a human resource management strategy ?
(A)Training and development
(B)Restructuring strategies
(C)Resistance management
(D)Mentorship programs
Answer: (C) Resistance management
Source: ICSI Guideline Answers (answer key), June 2024, Q. 80 (Financial and Strategic Management paper, Syllabus 2017).
June 2024Q. 82 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
................... Is the set of guiding principles, driving forces and ingrained attitudes that help to coordinate goals, plans and policies between partners across a given supply chain.
(A)Service strategy
(B)Business strategies
(C)Logistics strategy
(D)Differentiation strategy
Answer: (C) Logistics strategy
Source: ICSI Guideline Answers (answer key), June 2024, Q. 82 (Financial and Strategic Management paper, Syllabus 2017).
June 2024Q. 2(a)5 marksSyllabus 2022
(a)Kamakshi is the Marketing Manager at a software company. She is responsible for developing and implementing marketing strategies for the company’s products. Kamakshi leads a team of marketing professionals and works closely with the product development and sales teams to ensure that the company’s products are effectively promoted in the market. She also analyses market trends and customer feedback to refine the marketing strategies. Which level is she working at ? Discuss the roles and responsibilities of this level in organization.
Kamakshi operates at the functional level of management, specifically as the marketing manager at a software company. Functional managers like Kamakshi oversee specific departments or functions within an organisation, such as marketing, finance, or operations. Their primary responsibilities include implementing corporate strategies and policies within their area of expertise and ensuring that daily operations are conducted efficiently and effectively.
In Kamakshi’s case, as a marketing manager, her role involves developing and executing marketing strategies for the company’s products. This include leading a team of marketing professionals, collaborating with product development and sales teams, and analysing market trends and customer feedback to refine strategies. By working closely with these teams, Kamakshi ensures that the company’s products are effectively promoted in the market and that marketing efforts align with overall business goals.
Functional strategy relates to a single functional operation and the activities involved therein. Decisions at this level within the organization are often described as tactical. Such decisions are guided and constrained by some overall strategic considerations. Functional strategy deals with relatively restricted plan providing objectives for specific function, allocation of resources among different operations within that functional area and coordination between them for optimal contribution to the achievement of the SBU and corporate-level objectives.
Functional managers like Kamakshi play a critical role in the organisation by bridging the gap between corporate strategy and daily operations. They are responsible for translating highlevel strategic goals into actionable plans for their departments and ensuring that these plans are executed effectively. Additionally, they are often key decision-makers within their areas of responsibility, making strategic choices that impact on the company’s success. Overall, Kamakshi’s role as a marketing manager exemplifies the importance of functional managers in driving the success of their organisations.
Source: ICSI Guideline Answers, June 2024, Q. 2(a) (Syllabus 2022).
December 2023Q. 76 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not a stage in implementing HR strategies ?
(A)Assessing the current HR capacity
(B)Forecasting HR requirements
(C)Developing organizational strategies to support the HR strategies
(D)Gap Analysis
Answer: (C) Developing organizational strategies to support the HR strategies
Source: ICSI Guideline Answers (answer key), December 2023, Q. 76 (Financial and Strategic Management paper, Syllabus 2017).
December 2023Q. 77 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not an exclusively production strategy under Competitive Priorities category ?
(A)Price strategy
(B)Quality strategy
(C)Low cost strategy
(D)Eco-friendly products strategy
Answer: (C) Low cost strategy
Source: ICSI Guideline Answers (answer key), December 2023, Q. 77 (Financial and Strategic Management paper, Syllabus 2017).
December 2023Q. 78 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not an element of Logistics Strategy plan ?
(A)Customer service policy
(B)Inventory location policy
(C)Logistics organisation structure
(D)Delivery policy
Answer: (D) Delivery policy
Source: ICSI Guideline Answers (answer key), December 2023, Q. 78 (Financial and Strategic Management paper, Syllabus 2017).
December 2023Q. 80 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Following is the means by which a firm is effectively able to differentiate itself from its competitors by capitalising on its strengths (both existing as well as potential) to provide consistently better value to its customers than its competitors :
(A)Marketing strategy
(B)Business policy
(C)Corporate strategy
(D)Finance strategy
Answer: (A) Marketing strategy
Source: ICSI Guideline Answers (answer key), December 2023, Q. 80 (Financial and Strategic Management paper, Syllabus 2017).
June 2023Q. 74 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
In .................... market strategy, business avoids ‘‘neck to neck’’ competition and its objective is to build strong ties with the existing customer base and develop strong loyalty with them.
(A)Market leader
(B)Market challenger
(C)Market follower
(D)Market nicher
Answer: (D) Market nicher
Source: ICSI Guideline Answers (answer key), June 2023, Q. 74 (Financial and Strategic Management paper, Syllabus 2017).
June 2023Q. 75 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which one of the following is FALSE in context of human resource planning ?
(A)Human resource planning is a process that identifies past, current and future human resources needs for an organization to achieve its goals
(B)Human resource planning should serve as a link between human resource management and the overall strategic plan of an organization
(C)Human resource planning includes creating an employer brand, retention strategy, absence managernent strategy, flexibility strategy, (talent management) strategy, (recruitment) and selection strategy
(D)All the above are true
Answer: (A) Human resource planning is a process that identifies past, current and future human resources needs for an organization to achieve its goals
Source: ICSI Guideline Answers (answer key), June 2023, Q. 75 (Financial and Strategic Management paper, Syllabus 2017).
June 2023Q. 76 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not a component of ‘competition priorities’ dimension in formulating Production Strategies ?
(A)Price
(B)Low Cost
(C)Delivery
(D)Eco-friendly product
Answer: (B) Low Cost
Source: ICSI Guideline Answers (answer key), June 2023, Q. 76 (Financial and Strategic Management paper, Syllabus 2017).
December 2022Q. 81 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Strategic gap develops as a result of difference in :
(A)Deliberate Strategy and Inadvertent Strategy
(B)Strategy Planning and Strategy Implementation
(C)Strategic Planning and Strategic Policy
(D)Corporate Strategy and Functional Strategy
Answer: (A) Deliberate Strategy and Inadvertent Strategy
Source: ICSI Guideline Answers (answer key), December 2022, Q. 81 (Financial and Strategic Management paper, Syllabus 2017).
December 2022Q. 84 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not a production strategy under ‘competitive priorities’ category of production strategies ?
(A)Product Mix
(B)Flexible Response
(C)Service
(D)Eco-friendly products
Answer: (B) Flexible Response
Source: ICSI Guideline Answers (answer key), December 2022, Q. 84 (Financial and Strategic Management paper, Syllabus 2017).
December 2022Q. 85 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
......................... is the set of guiding principles, driving forces and ingrained attitudes that help to coordinate goals, plans and policies between partners across a given supply chain.
(A)Logistic Strategy
(B)Supply-chain Strategy
(C)Customer Service Strategy
(D)None of the above
Answer: (A) Logistic Strategy
Source: ICSI Guideline Answers (answer key), December 2022, Q. 85 (Financial and Strategic Management paper, Syllabus 2017).
December 2021Q. 73 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
…………………is one of the implementing HR-Strategy.
(A)Economical HR budget
(B)Identifying HR weakness
(C)Outcome of HR deployed
(D)Gap Analysis
Answer: (D) Gap Analysis
Source: ICSI Guideline Answers (answer key), December 2021, Q. 73 (Financial and Strategic Management paper, Syllabus 2017).
December 2021Q. 74 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The UN Co. Ltd., took a policy decision that company’s products will be converted as Eco Friendly products and this move is known as .................
(A)Competitive priorities of production strategy
(B)Change in conventional sales strategy
(C)Future market customer strategy
(D)Alternative cost saving strategy
Answer: (A) Competitive priorities of production strategy
Source: ICSI Guideline Answers (answer key), December 2021, Q. 74 (Financial and Strategic Management paper, Syllabus 2017).
December 2021Q. 75 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The Logistic is ..................... to tactical decisions about transporting and warehousing.
(A)confined
(B)not confined
(C)analytical tool
(D)cost saving area
Answer: (B) not confined
Source: ICSI Guideline Answers (answer key), December 2021, Q. 75 (Financial and Strategic Management paper, Syllabus 2017).
June 2021Q. 75 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Strategic Marketing answers three ‘W’s except :
(A)Which markets to compete in ?
(B)Where to bargain for purchase ?
(C)What is the basis of the firm’s competitive ?
(D)When to compete ?
Answer: (B) Where to bargain for purchase ?
Source: ICSI Guideline Answers (answer key), June 2021, Q. 75 (Financial and Strategic Management paper, Syllabus 2017).
June 2021Q. 76 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the followings is not part of production strategies under Competitive Priorities ?
(A)Market segmentation strategy
(B)Price or cost strategy
(C)Quality strategy
(D)Delivery strategy
Answer: (A) Market segmentation strategy
Source: ICSI Guideline Answers (answer key), June 2021, Q. 76 (Financial and Strategic Management paper, Syllabus 2017).
December 2020Q. 78 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The marketing strategy emphasises price as the key to good value; operations runs with tight cost control; development focuses on cost reduction. Which of the competitive strategies is illustrated here ?
(A)Divisionalisation
(B)Differentiation focus
(C)Differentiation
(D)Cost leadership
Answer: (D) Cost leadership
Source: ICSI Guideline Answers (answer key), December 2020, Q. 78 (Financial and Strategic Management paper, Syllabus 2017).
December 2020Q. 79 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following statements are correct ?
(1)Supply chain management is a narrower concept than logistics management.
(2)Reduction of inventory is a key objective of logistics management.
(3)Outbound logistics is also called upstream logistics.
(4)Logistical Network includes various facilities like manufacturing plants, warehouses, distribution centres.
Codes :
(A)(1), (2), (3) and (4) are correct
(B)(1), (3) and (4) are correct
(C)(2) and (3) are correct
(D)(2) and (4) are correct
Answer: (D) (2) and (4) are correct
Source: ICSI Guideline Answers (answer key), December 2020, Q. 79 (Financial and Strategic Management paper, Syllabus 2017).
June 2019Q. 6(c) (FSM)5 marksFinancial and Strategic Management paper, Syllabus 2017
(c)‘Logistics strategy plan is an important part of formulation of strategy’. What are the major elements of Strategy Plan ?
Major elements of Logistics Strategy plan are as under:
1.Customer service policy – the appropriate level of service for customers, by product group or market segment; considering order fulfillment requirements, enquiry and investigation capability and the available information. The customer service policy informs the nodes and links of the supply network
2.Inventory location policy (Supply Network nodes) – Centralized or decentralized inventory; whether to differentiate facilities by fast and slow moving stock; location of sites; use of specific technologies and layouts; company-owned or contracted facilities etc.
3.Inventory policy – Form and function of inventory by location; the appropriate amount of stock to hold for various groups of inventory; planning structure that links outbound and inbound materials
4.Cost plan – Trade-off analysis between cost and service level requirements; cost of Logistics operations
5.Transport and distribution (Supply Network links) policy – affected by whether enterprise imports or exports and the size and structure of conurbations being served. This incorporates transport modes, delivery pattern and storage location considerations, based on the time taken for deliveries.
6.IT and Communications capability : Technologies (including software) that will be internally developed; buy planning and scheduling applications from single supplier or obtain ‘best of breed’ applications.
7.Logistics organisation structure : Function or flow based; allocation of responsibilities and managed or self-managed teams
8.Logistics Targets and metrics : Measures of performance and achievement targets; operations improvements process and management.
Source: ICSI Guideline Answers, June 2019, Q. 6(c) (Financial and Strategic Management paper, Syllabus 2017).
June 2019Q. 6A(i) (FSM)4 marksFinancial and Strategic Management paper, Syllabus 2017
Comment on the following :
(i)Logistics is not confined to tactical decision about transportation and warehousing.
Logistics is not confined to tactical decisions about transportation and warehousing. Longer-term decisions are needed to put in place the capabilities that ensure that logistics plays a full role in supporting a company’s products in the market place. When a company creates a logistics strategy it is defining the service levels at which its logistics organization is at its most cost effective. Because supply chains are constantly changing and evolving, a company may develop a number of logistics strategies for specific product lines, specific countries, or specific customers. Apart from transportation and warehousing, logistics strategy deals with the following:
–Sources of Raw material and Components available
–Number of Manufacturing locations, and the products manufactured therein
–Nature of material handling equipments used
–Nature of distribution facilities
–Method for deploying inventory in the logistics network
Source: ICSI Guideline Answers, June 2019, Q. 6A(i) (Financial and Strategic Management paper, Syllabus 2017).
December 2025Q. 2A(ii)5 marksSyllabus 2022
(ii)‘ A mission statement is an enduring statement of purpose that distinguishes one business from other similar firms”. What is a mission statement and what are the questions to be considered while preparing a mission statement ?
A mission statement is an enduring statement of purpose that distinguishes one business from other similar firms. A mission statement identifies the scope of a firm’s operations in product and market terms.
According to McGinnis, a mission statement should -
•define what the or ganisation is and what the organisation aspires to be;
•be limited enough to exclude some ventures and broad enough to allow for creative growth;
•distinguish a given organisation from all others;
•serve as a framework for evaluating both current and prospective activities; and
•be stated in terms sufficiently clear to be widely understood throughout the organisation.
An ideal mission statement of business should define its customers, products or services, markets, technology, philosophy and self-concept.
Questions to be considered while preparing for a mission statement:
1.What is the basic purpose of the organisation?
2.What is unique about the organisation?
3.What is likely to be different about the business five years down the line?
4.Who are, and who should be, the core customers?
5.What are, and what should be, the principal economic concerns?
6.What are the basic beliefs, values and philosophical priorities of the firm?
Source: ICSI Guideline Answers, December 2025, Q. 2A(ii) (Syllabus 2022).
June 2025Q. 2(c)5 marksSyllabus 2022
(c)Vision leads to mission and mission leads to objectives (which are designed to achieve the mission), objectives lead to goals (which are designed to achieve the objectives) and goals lead to targets (which are set to achieve the goals). How will you compare the Vision and Mission statements of a business unit ?
Vision serves the purpose of stating what an organization wishes to achieve in the long run. It articulates the position that the organisation would like to occupy in future. The vision is about looking forward and about formalizing where the business is going, while a mission statement is an enduring statement of purpose that distinguishes one business from other similar firms. A mission statement identifies the scope of a firm’s operations in product and market terms. In nutshell, A vision is the “what” (what the entity wants to become, achieve), and the mission is the “why” and “how” (why does the entity exist in the first place).
The vision and mission statements compared as follows:
Mission Statement Vs. Vision Statement
Mission Statement
Vision Statement
About
A Mission statement talks about HOW
A Vision statement outlines WHERE you
you will get to where you want to
want to be. Communicates both the
be. Defines the purpose and primary
purpose and values of your business.
objectives related to your customer
needs and team values.
Answer
It answers the question, “What do we
It answers the question, “Where do we
do? What makes us different?”
aim to be?”
Time
A mission statement talks about the
A vision statement talks about your
present leading to its future.
future.
Function
It lists the broad goals for which the
It lists where you see yourself some
organization is formed. Its prime function
years from now. It inspires you to give
is internal; to define the key measure
your best. It shapes your understanding
or measures of the organization’s
of why you are working here.
success and its prime audience is the
leadership, team, and stockholders.
Developing a
What do we do today? for whom do
Where do we want to be going
statement
we do it? What is the benefit? In other
forward?
words, Why we do? what we do?
When do we want to reach that stage?
Questions on What, for Whom and
Why?
Features of
Purpose and values of the organization:
Clarity and lack of ambiguity: Describing
an effective
Who are the organization’s primary
a bright future (hope); Memorable
statement
“clients” (stakeholders)? What are
and engaging expression; realistic
the responsibilities of the organization
aspirations, achievable; alignment with
towards the clients?
organizational values and culture.
Source: ICSI Guideline Answers, June 2025, Q. 2(c) (Syllabus 2022).
December 2024Q. 73 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
............... of a company focuses on the question : ‘Who we are’ and ‘What we do’.
(A)Vision statement
(B)Statement of Philosophy
(C)HR Policy
(D)Mission statement
Answer: (D) Mission statement
Source: ICSI Guideline Answers (answer key), December 2024, Q. 73 (Financial and Strategic Management paper, Syllabus 2017).
December 2024Q. 1(a)10 marksSyllabus 2022
1.Case Study :
(a)Go-Fast is a very small company in Amravati, operating its business of repairing electrictwo-wheeler. It has a reputation for its fair charges and speedy delivery. For the next five years, a market study offers the following information :
Many college students are being given e-bike by the college authorities themselves and this trend is likely to continue for another five years. Coaching centers provide new e-bikes to all the students during the admission. The fees are inclusive of these costs.
LiFePO4 batteries are fast replacing lead acid batteries in certain market segments and models change every six months. In case of major repairs, affluent people discard the old lead acid batteries e-bike and go in for new LiFePO4 batteries e-bike. However, there are rural markets and certain parts of urban markets which will still be interested in the low-cost lead acid batteries e-bike repaired and re-sold the e-bikes.
Considering the gravity of the above situation Go-Fast plans to limit its operations to only one city.
You are required to give :
(i)A vision statement;
(ii)A mission statement;
(iii)SWOT analysis;
(iv)Some parameters that could be used in above situation relating to the financial and growth perspectives in a Balance Score Card (BSC).
(i)Go-Fast’s Vision Statement: To deliver the fastest and highest quality repair of lead-acid e-electric two-wheeler at the most reasonable prices, anywhere in the city.
(ii)Go-Fast’s Mission Statement: Go-Fast is committed to deliver fully functional lead-acid e-bikes to our customers’ doorsteps with minimal downtime. We ensure timely delivery as promised, reasonable charges, and high-quality services. Our focus is on replacing genuine spare parts based on actual needs, offering convenient pick-up of faulty e-bikes, and providing standby e-bikes upon request, all while maintaining the highest standards of customer satisfaction .
(iii)SWOT Analysis:
a)Strengths: Access to standard spare parts that normally required in lead acid e-bikes, network of trained employees who have requisite job knowledge, available loyal customers, less time in delivery and perfect commitment.
b)Weakness: Going beyond the scope of faults recognized by the customers, often leading to cost overruns while preventing future repairs calls.
c)Opportunities: Branches may be opened in universities/colleges and big coaching centers. Business can be extended to the sale of repaired e-bikes in ready mode and going markets, preventing maintenance services, annual maintenance contracts, upgrades and compatibility addition with new peripherals, etc.
d)Threats: Unless lead acid e-bike markets are also created to, there is a threat to long term survival. Threats from shops which are providing one stop solution for repairing all types of e-bikes including lead acid, LIFePO4 batteries etc. Threats of obsolescence resulting in non-availability of spares and change in Government policy in future on pollution control as regard to disposal of old batteries scrap.
(iv)Balance Score Card (BSC):
(a)Financial perspective: Revenue from repairs, average job order cost, total spares, purchases, delivery costs, percentage of revenue per job, debtors management (target nil), etc.
(b)Growth perspective : Number of employees trained, number of new products repaired, number of new spares used, machinery used for cleaning/servicing, new logistics management, service call tracking, repair status on-line tracking etc.
Source: ICSI Guideline Answers, December 2024, Q. 1(a) (Syllabus 2022).
December 2023Q. 67 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is about communication with the employees and other stakeholders of the ogranisation, which let them see where the organization is aspiring to head in the future ?
(A)Mission statement
(B)Vision statement
(C)Goals
(D)Objectives
Answer: (B) Vision statement
Source: ICSI Guideline Answers (answer key), December 2023, Q. 67 (Financial and Strategic Management paper, Syllabus 2017).
December 2023Q. 75 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not regarding an organization’s Mission statement ?
(A)It talks about how you will get to where you want to be.
(B)It describes where the company wants to be.
(C)It describes what an organization does and what makes it different.
(D)It talks about the present leading to its future.
Answer: (B) It describes where the company wants to be.
Source: ICSI Guideline Answers (answer key), December 2023, Q. 75 (Financial and Strategic Management paper, Syllabus 2017).
June 2023Q. 72 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Identify the wrong statement out of the following :
(A)A mission statement talks about HOW you will get to where you want to be, whereas a Vision statement outlines WHERE you want to be
(B)Mission answers the questi on, ‘‘What do we do ? What makes us different ? ’, whereas vision answers the question, ‘‘Where do we aim to be ?’’
(C)A mission statement talks about the past leading to its present whereas a vision statement talks about your present and future
(D)Mission statement lists the broad goals for the organization, whereas vision statement lists where you see yourself some years from now
Answer: (C) A mission statement talks about the past leading to its present whereas a vision statement talks about your present and future
Source: ICSI Guideline Answers (answer key), June 2023, Q. 72 (Financial and Strategic Management paper, Syllabus 2017).
December 2022Q. 73 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following may not be a purpose of Vision statement of the organization?
(A)Serving as foundation of broader strategic plan
(B)Motivating existing employees and attracting potential employees
(C)Identifying the goal of operations
(D)Facilitating creation of core competencies
Answer: (C) Identifying the goal of operations
Source: ICSI Guideline Answers (answer key), December 2022, Q. 73 (Financial and Strategic Management paper, Syllabus 2017).
December 2022Q. 74 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is false in respect of mission statement of an organization?
(A)It defines the basic reason for the existence of the organization
(B)It reflects the corporate philosophy, identity, character and image of an organization
(C)It communicates primarly to the people who make up the organization, giving them an understanding of the organization’s intended direction
(D)It serves the purpose of stating what the organization wishes to achieve in long-run
Answer: (D) It serves the purpose of stating what the organization wishes to achieve in long-run
Source: ICSI Guideline Answers (answer key), December 2022, Q. 74 (Financial and Strategic Management paper, Syllabus 2017).
December 2022Q. 75 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not a generally acceptable principle for developing a mission statement ?
(A)Make it memorable
(B)Make it unique to organization
(C)Make it realistic
(D)Make it as descriptive as possible
Answer: (D) Make it as descriptive as possible
Source: ICSI Guideline Answers (answer key), December 2022, Q. 75 (Financial and Strategic Management paper, Syllabus 2017).
December 2022Q. 76 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
‘‘To accelarate the world’s transition to sustainable energy’’ is the mission statement of which of the following organizations ?
(A)Tata Power
(B)Tesla
(C)Syska
(D)Tata Motors
Answer: (B) Tesla
Source: ICSI Guideline Answers (answer key), December 2022, Q. 76 (Financial and Strategic Management paper, Syllabus 2017).
December 2021Q. 77 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not correct for vision statement ?
(A)It outline WHERE you want to be
(B)It talks about future
(C)It lists where you see yourself some years from now
(D)It answers the question, ‘‘What do we do ? What makes us different ?’’
Answer: (D) It answers the question, ‘‘What do we do ? What makes us different ?’’
Source: ICSI Guideline Answers (answer key), December 2021, Q. 77 (Financial and Strategic Management paper, Syllabus 2017).
June 2021Q. 67 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The fundamental purpose for the existence of any organization is described by its :
(A)Visions
(B)Mission
(C)Objective
(D)Strategy
Answer: (B) Mission
Source: ICSI Guideline Answers (answer key), June 2021, Q. 67 (Financial and Strategic Management paper, Syllabus 2017).
December 2020Q. 68 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
What is the term for the action in which managers at an organisation analyse the current situation of their organisation and then develop plans to accomplish its mission and achieve its goals ?
(A)Synergy planning
(B)Strategy formulation
(C)Functional planning
(D)SWOT analysis
Answer: (B) Strategy formulation
Source: ICSI Guideline Answers (answer key), December 2020, Q. 68 (Financial and Strategic Management paper, Syllabus 2017).
December 2020Q. 74 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The ....................... answers the question
“Where do we aim to be” ? Whereas ....................... answers the questions “What we do ? What makes us different ?”
(A)vision statement; mission statement
(B)short-term objectives; long-term objectives
(C)objectives; strategies
(D)mission; vision
Answer: (A) vision statement; mission statement
Source: ICSI Guideline Answers (answer key), December 2020, Q. 74 (Financial and Strategic Management paper, Syllabus 2017).
December 2020Q. 77 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The ...................... process commences at corporate level. Here the organization sets out its overall mission, purpose, and values.
(A)Researching
(B)Strategic planning
(C)Controlling
(D)Managing
Answer: (B) Strategic planning
Source: ICSI Guideline Answers (answer key), December 2020, Q. 77 (Financial and Strategic Management paper, Syllabus 2017).
December 2019Q. 70 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following answers to the question :
‘Where does the organisation aspire to be in the future ?’
(A)Mission Statement
(B)Vision Statement
(C)Objectives
(D)Core Values
Answer: (B) Vision Statement
Source: ICSI Guideline Answers (answer key), December 2019, Q. 70 (Financial and Strategic Management paper, Syllabus 2017).
December 2019Q. 79 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
What are enduring statements of purpose that distinguish one business from other similar firms ?
(A)Policies
(B)Mission statements
(C)Objectives
(D)Rules
Answer: (B) Mission statements
Source: ICSI Guideline Answers (answer key), December 2019, Q. 79 (Financial and Strategic Management paper, Syllabus 2017).
December 2019Q. 96 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of these basic questions should a vision statement answer ?
(A)What is our business ?
(B)Who are our competitors ?
(C)Where we are to go ?
(D)Why do we exist ?
Answer: (C) Where we are to go ?
Source: ICSI Guideline Answers (answer key), December 2019, Q. 96 (Financial and Strategic Management paper, Syllabus 2017).
December 2024Q. 71 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
............ are the guidelines developed by an organization to govern its actions.
(A)Ethics
(B)Roadmap
(C)Business policies
(D)Actions
Answer: (C) Business policies
Source: ICSI Guideline Answers (answer key), December 2024, Q. 71 (Financial and Strategic Management paper, Syllabus 2017).
December 2023Q. 73 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Business Policy also includes dealing with :
(A)Acquisition of resources with which organizational goals can be achieved
(B)The process that is conducted periodically to keep the strategies up to date
(C)Process of improving product or services being offered by the business at present.
(D)Research and its operating environment
Answer: (A) Acquisition of resources with which organizational goals can be achieved
Source: ICSI Guideline Answers (answer key), December 2023, Q. 73 (Financial and Strategic Management paper, Syllabus 2017).
June 2023Q. 71 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Business policies are the .................... developed by an organization to govern the actions.
(A)Benchmarks
(B)Regulations
(C)Roadmaps
(D)Guidelines
Answer: (D) Guidelines
Source: ICSI Guideline Answers (answer key), June 2023, Q. 71 (Financial and Strategic Management paper, Syllabus 2017).
December 2022Q. 71 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The evolution of the concept of Business Policy can be traced with :
(A)American Assembly of Collegiate Schools of Business
(B)Gordon and Howell Report
(C)Harvard Business School
(D)Carnegie Foundation
Answer: (C) Harvard Business School
Source: ICSI Guideline Answers (answer key), December 2022, Q. 71 (Financial and Strategic Management paper, Syllabus 2017).
December 2020Q. 76 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Guidelines developed by an organization to govern the actions of those who are a part of it, is known as :
(A)Business Policy
(B)Marketing strategy
(C)Formulation strategy
(D)Values
Answer: (A) Business Policy
Source: ICSI Guideline Answers (answer key), December 2020, Q. 76 (Financial and Strategic Management paper, Syllabus 2017).
June 2023Q. 73 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Identify the FALSE statement out of the following :
(A)Corporate level strategy defines how the firm will remain sustainable in the long run
(B)Business level strategy is applicable in those organizations, which have different businesses and each business is treated as Strategic Business Unit (SBU)
(C)Functional strategy, as is suggested by the title, relates to a single functional operation and the activities involved therein
(D)None of the above
Answer: (D) None of the above
Source: ICSI Guideline Answers (answer key), June 2023, Q. 73 (Financial and Strategic Management paper, Syllabus 2017).
December 2022Q. 77 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which of the following is not a level of an organization’s strategies ?
(A)Economy-level strategies
(B)Corporate Strategies
(C)Business Strategies
(D)Functional Strategies
Answer: (A) Economy-level strategies
Source: ICSI Guideline Answers (answer key), December 2022, Q. 77 (Financial and Strategic Management paper, Syllabus 2017).
June 2021Q. 72 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Which strategy is about how to compete successfully in particular markets?
(A)Business-level strategy
(B)Corporate-level strategy
(C)Alliance-based strategy
(D)Operational-level strategy
Answer: (A) Business-level strategy
Source: ICSI Guideline Answers (answer key), June 2021, Q. 72 (Financial and Strategic Management paper, Syllabus 2017).
December 2023Q. 81 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
Working Capital Management is a part of :
(A)Investment decision
(B)Financing decision
(C)Dividend decision
(D)Asset management
Answer: (A) Investment decision
Source: ICSI Guideline Answers (answer key), December 2023, Q. 81 (Financial and Strategic Management paper, Syllabus 2017).
December 2021Q. 71 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The corporate finance manager should try to balance between................. to ensure minimized risk and maximized profit.
(A)Unit cost and profit
(B)Debt capital interest and outflow of cash
(C)Cost savings and controlled expenses
(D)Debt and equity
Answer: (D) Debt and equity
Source: ICSI Guideline Answers (answer key), December 2021, Q. 71 (Financial and Strategic Management paper, Syllabus 2017).
December 2021Q. 72 (FSM)1 markMCQFinancial and Strategic Management paper, Syllabus 2017
The dividend declaration is driving force to investors to invest more and positive sign of equity market.
(A)Statement is correct
(B)Statment is incorrect
(C)Statment is exceptional
(D)Statement is not acceptable
Answer: (A) Statement is correct
Source: ICSI Guideline Answers (answer key), December 2021, Q. 72 (Financial and Strategic Management paper, Syllabus 2017).
December 2018Q. 6(c) (FSM)5 marksFinancial and Strategic Management paper, Syllabus 2017
Comment on the following :
(c)Strategic Financial Management (SFM) is concerned with taking three key financial decisions.
Strategic Financial Management (SFM) is concerned with development of a finance strategy by identification of some key strategic initiatives/measures which are capable of maximizing entity’s Net Present Value (NPV) and by allocation of scarce capital resources among the competing opportunities. It is concerned with taking the following three key financial decisions:
1.Investment decision - It is the first and foremost important component of financial strategy. In the course of business, the available finance with business is usually limited but the opportunities to invest are in abundance. Hence the finance manager is required to assess the profitability or return of various individual investment decisions and choose a policy which ensures high liquidity, profitably and growth for organization.
2.Financing decision - Once the requirement of funds has been estimated, the next important step is to determine the sources of finance. The manager should try to maintain a balance between debt and equity so as to ensure minimum risk and maximum profitability for the business.
3.Dividend decision - The third and last function of finance includes dividend decisions. Dividend is that part of profit, which is distributed to shareholders as a reward for high risk investment in business. It is basically concerned with deciding as to how much part of profit will be retained for the future investments and how much part of profit will be distributed among the shareholders.
Source: ICSI Guideline Answers, December 2018, Q. 6(c) (Financial and Strategic Management paper, Syllabus 2017).
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