Strategic Management

Question 1-
Answer- Corporate-Level Strategy is the term used to describe the top management's strategy or
game plan for managing and guiding the whole organisation. These are dependent on the internal
resources and business environment of the organisation. It goes under the name "grand strategy."
When examining multiple business divisions, product lines, client groups, technology, and other
factors, it displays the mix and pattern of corporate moves, actions, and covert goals that are in the
strategic interest of the company. A small firm might utilise a corporate-level strategy to boost
earnings throughout the upcoming fiscal year, while a huge corporation may be managing the
operations of several enterprises to accomplish more complicated objectives like selling the business
or entering a new marketplace.
Classification of Corporate-Level Strategies-
1. Stability strategy
• No change strategy
• Profit strategy
• Caution strategy
2. Expansion strategy
• Expansion through Concentration
• Expansion through Diversification
• Expansion through Integration
• Expansion through Internationalization
3. Retrenchment strategy
• Turnaround Strategy
• Divestment
• Liquidation
4. Combination strategy
Citibank was making very good profit in the consumer banking division, but our organization is now
cutting back to consumer banking and want to focus on business to business segment this strategy of
corporate level strategy is Retrenchment Strategy .
Retrenchment Strategy- Retrenchment strategies demand that the corporation really consider
changing their business model. This can entail discontinuing the production of a product or making it
less functional. In order to sustain their organization's cash flow, the corporation may need to devote
more time to their accounts receivable department.
A retrenchment grand strategy is followed when an organization aims at activities a contraction of its
through substantial reduction or the elimination of the scope of one or more of its businesses in terms
of their respective customer groups, customer functions, or alternative technologies either singly or
jointly in order to improve its overall performance.
When you realise you need to alter the market you're working in, you diversify. You can generate new
client-based business prospects by entering new marketplaces. It may provide you with the opportunity
to establish a long-lasting connection based on the effectiveness and client happiness of the goods and
services you provide. If you have adequate money, you may consider rebranding to appeal to a new
target market that is anxious to test a new product.
Benefits of Retrenchment Strategy
1. Economical - The retrenchment plan still saves you money, even if you don't agree with it and find
it unpleasant. Reuniting resources that are scattered among a company's different departments is
beneficial to the company. When faced with the difficult situation of having insufficient funding,
organisations can help themselves by implementing a retrenchment plan. Cost-effectiveness enables
them to avoid taking on banking institutions' debt.
2. Better Performance- When the corporation entered the phase of the retrenchment approach, all of
the employees would begin to behave better. They would continue doing superior work because they
don't want to provide a pretext for their employer to terminate them. The overall productivity of the
company would rise as well.
Divestment Strategy- Businesses and enterprises employ diversification as a strategy for many
reasons, such as merger plans, resource development, the existence of numerous investment plans,
technological upgrades, persistent issues, mismatched assets, and negative cash flows. In order to
focus on its main issues, a corporation that divests reduces operations or sells a division, using the
funds to grow the business of that division. Liquidation is not the same as divestiture, so keep that in
mind. An organisation divests a non-strategic enterprise. Contrary to a liquidation, where a firm sells
its unit and closes the door, it obtains funds for strategic reinvestment in its main business. A company
with a weak competitive position in an industry may be forced to sell itself if it cannot get out of its
bootstraps and find a customer or competitor to become an affiliate. If management can still sell the
entire company to another company at a profit while retaining the employees, then the sale method
makes sense. With the second business, the hope is to bring wealth and determination back to the
prosperity of the company. One factor that made American Airlines eager to acquire Airways in the
United States was its poor performance in the swing.After a corporation purchases a multi-unit
business, divesting is frequently utilised to get rid of the parts that don't match with the new corporate
plan. Because of this, Whirlpool decided to sell the Maytag Hoover vacuum after acquiring Maytag.A
divestment occurs when a firm with many business lines decides to sell a division with little room for
future growth. PandG employed this tactic when it sold more than half of its brands & combined others
to concentrate on only 65 brands.
Conclusion- Using retrenchment strategy strategies, a business may grow its activities while staying
afloat. Through divestment and turnaround, businesses may grow while cutting costs by implementing
a liquidation strategy. Social media would also show the public's reaction and their families' animosity
toward the business. It depends on how management responds to the issue whether it lasts a few days
or a few months. People are looking for someone to blame. A divestiture strategy is crucial to making
correct business decisions. It allows organizations to identify their least-profitable assets and sell them
off to reduce costs, improve cash flow and pay off debts. A divestment strategy also helps attract
investors by highlighting an organization's redefined areas of focus.
Question 2-
Answer 2- Despite the dire circumstances that prevailed throughout the nation, matches in the Indian
Premier League (IPL) resumed as scheduled at the designated locations. The players, support
personnel, and officials are protected from the disease's ravages thanks to the bio-secure bubble.But
even so, several athletes and officials have left the bubble and gone home. What are the determinants
of the IPL's continuation? All necessary regulations have been meticulously followed, the bio-bubble
has been in place, and neither players nor officials have contracted an infection throughout the
competition.
The efforts made by the government, medical experts, and other organisations in the front ranks have
not been been hindered by the way the matches have been conducted.
What are the reasons for the IPL's continued existence? First of all, there haven't been any problems
with its behaviour. The bio-bubble has been in place, no players or officials have contracted an
infection throughout the competition, and all necessary regulations have been meticulously followed. It
was made plain by the organisers that anyone wishing to exit the bubble might do so at any time. Only
a few cricketers have decided to return home, which suggests that the remaining players feel
comfortable and secure in their current location. Additionally, the way the matches were conducted did
not hinder the front-line work being done by the government, medical personnel, and other
organisations.
Strategic Management issue-
The marketing manager serves as a company's main point of contact with its clients and rivals. As a
result, the management needs to pay close attention to the firm's positioning in the market, its
marketing strategy, as well as its general standing and the reputation of its brands.
Market position refers to the choice of certain areas for marketing emphasis and may be defined in
terms of markets, products, and geographical locations. It deals with the question "Who are our
customers?" and is concerned with the answer to that. Businesses can conduct market segmentation
through market research using a variety of goods or services so that management can learn what
markets to target, what new product categories to create, and how to avoid having too many items that
directly compete with one another.
Brand Reputation- A company's reputation is the way the general public views the business and its
operations. Public perceptions of the business's goods or services as well as its personnel policies are
included. A reputation can be good or bad, and it can evolve over time. For instance, word-of-mouth
among clients of the firm might alter its reputation just as much as a well-known news piece about it.
Since consumer impressions are what determine a firm's reputation, it may not necessarily represent
how the company actually does business. It's crucial that the business manages its reputation so that it
appropriately represents the firm. A brand is a designation given to a product by a company that, in the
eyes of the customer, embodies all of that product's qualities. A brand may connote a variety of
qualities in the minds of customers over time and with the help of great advertising and
implementation. Disney, for instance, is synonymous with family entertainment. Carnival has the "fun
ships," and BMW represents fast cars. Thus, a brand may be a valuable company asset. If done well, a
brand name may become so closely associated with the product that it can represent an entire product
category, such as Kleenex for facial tissues. A corporate brand is a kind of brand where the name of
the firm acts as the brand. The previous ranking of the top 10 global brands included just corporate
names. The value of a corporate brand is that it typically represents consumers' perceptions of a
company and can therefore be extended to products that are not currently offered, regardless of the
company's actual expertise. For instance, Caterpillar, a producer of powerful earthmoving machinery,
promoted work boots using customer connections with the Caterpillar brand (tough, macho, associated
to construction). Although a move of this nature may not be wise from a strategic perspective,
Guidelines for enhancing your business's reputation
Be aware of how your business's reputation is impacted by several factors, and think about the
following advice to assist your reputation:
Improve internally
Start internally when attempting to boost your business's reputation. Finding internal variables you can
control, such as employee happiness, corporate culture, product quality, and customer service, is one
method to improve public impression of your business. To determine where and how you may
improve, consider asking your staff for their ideas.
Increased value and quality
Giving clients additional value and ensuring the high calibre of your goods and services are two ways
to enhance the reputation of your business. With targeted advertising or by highlighting the advantages
of the product, marketing may raise the perceived value of your offering. Customers may be drawn by
improving safety features.
Keep personnel content.
Employee happiness increases retention rates, productivity, and the quality of the job produced. All of
these elements have the potential to enhance a company's reputation.
Provide a consistent experience
A successful business, which includes a good reputation, depends on maintaining relationships with
your clients. Consistency in your contacts with customers might help them feel satisfied. This entails
supporting brand values during every engagement, maintaining true to one's image, and disseminating
messages that don't conflict with one another. Positive encounters with customers on a regular basis
foster loyalty and can boost revenue.
Increase philanthropic efforts
Consumers frequently have a positive impression of your business as a result of philanthropy, which
enhances your reputation. As a business, it's critical to practise generosity and compassion. Customers
pay attention to a business' social responsibility, and this can affect their purchasing decisions.
Conclusion-
To expand a business, brand reputation management is essential. A strong brand reputation fosters
customer loyalty and raises their level of trust in your company's name and goods, which ultimately
boosts revenue.
Brand reputation management has risen in importance for businesses in today's fiercely competitive
environment, especially given the constant stream of online conversations about your brand. Your
brand needs to be prominent and positioned as an informed, leading resource and solution for your
customers on social media, online forums, blogs, news sites, search engines, and other Internet
sources.
IPL is such a brand which is emotionally attached to every cricket lover, besides the financial loss the
brand reputation for IPL and BCCI is important , Not conducting a season can be huge loss in
reputation.
Question 3a
Answer 3a- Definition -Strategy is an action that managers take to attain one or more of the
organization’s goals. Strategy can also be defined as “A general direction set for the company and its
various components to achieve a desired state in the future. Strategy results from the detailed strategic
planning process”.
A business's strategy outlines the overall master plan for how it will carry out its mission and set its
goals. As a result, competitive advantage is maximised and competitive disadvantage is reduced. The
large pharmaceutical business Pfizer has acknowledged the necessity for this kind of strategy. Pfizer
had to figure out how to fund the R&D necessary to develop new pharmaceuticals in the face of the
rapid decline of its most successful blockbuster medications due to patent expirations. In the past, the
corporation has depended heavily on its team of scientists, but this has altered recently. Pfizer actively
pursued medication manufacturers in the developing biosimilar market (small molecule biologics
made from living cells).
Components of Strategy
• Since predicting the future is impossible, strategy is important. The organisations must be
prepared to handle the unpredictable occurrences that make up the business environment even
without full foresight.
• Instead than focusing on daily operations, strategy considers long-term trends, such as the
likelihood that new technologies may result in innovative goods, manufacturing techniques, or
markets in the future.
• The creation of strategy takes into consideration the likely consumer and rival behaviour.
Employer management techniques will forecast employee behaviour.
Types of strategies-
Corporate strategy- A corporate strategy, also known as an organizational-level strategy, is centred
on the organization's vision, mission, values, or purpose.
It frequently ties to the fundamental value proposition and goals of the organisation in doing so.
It might also take into account the company's values and how stakeholders and outsiders will view it.
Competitive strategy - A competitive strategy, often known as a business-level strategy, is concerned
with how an organization's business unit will compete with rivals in the market.
The competitive strategy of a business unit should advance the organization-level plan.
Michael Porter's Generic Tactics, which comprise the following, provide the foundation for
comprehending competitive strategies.
The three strategies are cost-based, differentiating, and focused (niche).
Functional strategy - A functional strategy addresses how a functional division of a business will
accomplish its goals. By increasing resource productivity, a functional strategy supports the
competitive strategy of a business unit. It focuses on skill development in search of a competitive edge.
Marketing, accounting, finance, operations, operations), R&D, and HR are important functional areas.
Question 3b-
Answer 3b-
Introduction-
There is still place for the rare Bollywood resolution in the midst of a global epidemic that has mostly
destroyed the film and theatre industries.
The impact of COVID-19 on the economy has been severe: In North America, little under half of the
movie theatres are closed, and those that are open have a limited number of seats due to tight social
distance rules. The lack of fresh movies available for theatre owners to showcase hasn't helped. The
box office is 77.2 percent poorer than it was at this time last year as a result of studios being compelled
to postpone the release of their most high-profile films until next year or forgo theatrical premieres
altogether, sending some films directly to streaming platforms.
"Hyper competition" describes the rise in the level of rivalry in the theatre industry. Problematically,
this may lead to a crisis of long-term competitive advantage. One of several approaches to deal with
this is the creation of a sustainable competitive advantage plan. The development of actions for
achieving sustainable competitive advantage should follow the identification of the key stakeholders
and their needs.
The industry of commercial theatre is characterised by fierce competition nowadays. To ensure
success, theatre franchises must provide the highest quality of entertainment and services. Because
there are so many competitors, businesses need to be innovative and find a way to stand out from the
crowd. The corporate theatre industry is well known for its intense competitiveness and ongoing
pursuit of excellence. They provide a variety of competition opportunities, ranging from a simple trivia
competition at each presentation to a thorough tournament for the top 10 staff members. This company
always puts its employees first and does what is best for them.
Conclusion-
I am in charge of Cinema Express' corporate strategy, a well-known theatre chain with 20 sites and 80
screens spread over two cities.
But the outbreak has led to a significant number of company closures.
If I want to regain the trust of our patrons, I must first understand why they visit our theatres and why
they find them useful. The next step is to choose my target market, evaluate the status of the market,
and consider how the public would react to the epidemic.
I must anticipate client wants, be open and honest about our goals, give promotions, and produce high-
caliber films in order to reposition the company's image. The times of shows or movies are also
important. Suitable parking spaces, women's safety during nighttime performances, simple access to
food and bags in the cafeteria, and the opportunity to book tickets via phone.
In order to generate two new products, we might employ strategies to think laterally about the digital
possibilities made available by the publishing of the movie trailer. also by promoting the theatre
through newspapers, local media, and social media. By expanding the concession stand and providing
freshly made popcorn flavours with names inspired by neighbouring landmarks or motion pictures.