ASSIGNMENT ANSWERS

STRATEGIC MANAGEMENT

ANSWER 1

Introduction:
An organization should follow a proper business strategy to improve its competitive
position. Each organization should decide the path for growing forward by deciding
whether it should remain unchanged, cut back, or continue the operations. An
organization also needs to decide whether it should remain concentrated on the
current activities, or they should diversify into the other industries. It should also
analyze whether they need to expand nationally or globally through acquisitions,
mergers, or strategic alliances. Hence, a company’s directional strategy could be the
growth strategy, stability strategy or the retrenchment strategy.
As a managing director of the Citibank, the decision to cut back the consumer
banking decision and focus on the business- to -business segment is an example of the
divestment strategy where the organization wants to focus on a business segment and
cut back on the consumer banking. To maintain the profitability and move ahead with
the business–to–business segment, it is necessary to formulate a strategy plan for the
disinvestment and to handle the employee reactions. Let us look briefly at the type of
strategy used, the strategic plan and the ways to handle employee’s reactions.

Concept and Application:

To cut back on consumer banking and focus on the business-to-business segment, it is
essential to follow strategic plan. Taking care of the employees’ reaction is also
necessary and a proper communication strategy needs to be developed for the same.
Let us discuss, each of the related aspect in detail.

Type of Strategy

Sell-Out/Divestment Strategy:
The type of strategy used by the Citibank is the divestment strategy.
Divestment strategy is a form of retrenchment strategy in which the scope of the
business is downsized. When a company sells or liquidates a portion of a business or
one or more of the strategic business unit or a major division with an aim to revive its
financial position.
Divestment is the opposite of investment in which a firm sells the portion of the
business in exchange of cash so that it could pay off its debt and other liabilities or to
focus on any other segment. A firm could also follow the sellout strategy to shut
down its less profitable division and utilize the resources to the profitable division and
allocate the resources to the more profitable one. An organization could decide to
adopt the divestment strategy because of any of the following reasons:
 If a particular division of the firm is continuously attracting the negative cash
flow.
 If the firm is unable to meet the competition.
 If the division is attracting losses.
 If there is difficulty in integrating the business within the company
 Some other better alternatives of investment are there in the market.
 When there is a lack of integration within the divisions in the company.
 When the company is not able to afford the technical upgradations.
 When the market share of the company is too small.
 If there are legal pressures to close the business unit of the company.
Here, Citibank wants to focus on business segment and cut down the operations of the
consumer segment although being profitable, to expand in the business segment to
diverse its operations into a segment which could be more profitable than the
consumer segment. For example: P&G used this strategy when it sold more than half
of its brands and focused on just 65 brands.

Strategic plan for the disinvestment:

To shift the focus from the consumer banking to the B2B banking, it is essential to
identify the bank’s clients, current customer of the bank, the new prospects which
could exist through which the bank could succeed, the most profitable venture which
could make the bank successful.
Once bank has identified its audience, it should create a program that track the group,
monitor the conversion processes, and respond and ensures that the consumers are
satisfied, and their needs are met. A clearly defined program could help Citibank to
make its customers.
A business banking firm generates sales in millions, with credit exposure which
ranges in millions. The business firms among the business segment are determined
among which the bank can identify the good choices. Bank would need to analyze
how many business firms are operating in a certain range of revenue, the name, and
details of the business unit. Therefore, the bank gathers the assets to understand the
different attributes and businesses which they could capture in its sales process to
define the sales process around qualifying the lead based on the attributes available.
With the available information and data points, the Citibank can improve the quality
of the leads for its staff as well as the customers. If the leads and prospect for the bank
are like its current successful clients, the sales team is ready to identify the specific
data points which they could have when they put something into the process.
Handling employee reactions and the communication strategy to be used:

To succeed in the B2B segment for Citibank, it is essential to harmonize the internal
departments and employees of the bank with the common objective to excel in the
business-to-business segment. To align the internal departments of the banking firm,
it is essential to convey the objectives and thoughts behind the motive. Every team
including the stakeholders, clients, customers involved within the firm should be
aware of the motive, decisions, suggestions, and feedback should be welcomed. There
are several methods to put forward the motive and ideas in front of the audiences
including the customers such as meetings, discussions, written communication etc.
The employees should be assured that their jobs would be secure, and their interest
would not be hampered. There should also be a mechanism for grievance redressal for
the consumers and employees with the required support facility in the future.

Conclusion:

Citibank in the above case chose to serve the b2b segment instead of the consumer
banking, it could be due to the reason that, bank saw a huge potential for growth in
the business segment instead of the consumer segment, or the bank wants to focus on
the business-to-business segment and chose to disinvest from the consumer banking
sector although it was generating a good profit , but to develop a niche in the B2B
banking , this divestment strategy would have been adopted. We looked at the
divestment strategy plan, the employee’s reaction involved with the changes and the
communications necessary to be made to convey the information to every individual
involved along with the stakeholders, employees, customers to be clear in
communicating the goals and objectives of the bank to achieve excellence in the
business- to business segment.

ANSWER 2

Introduction:

The Indian Premier League (IPL) was started by Board of Control for Cricket in India
(BCCI) 2007. IPL is the most attended cricket league in the world and has a great
brand value.
In the last two years, IPL has faced many uncertainties due to Covid-19. The IPL is
played in the months of March to May every year but faced loss in the brand value in
the year 2020 since the brand value of covid-19 dropped to Rs 45,800 crore in 2020
from 47,500 crore in 2019 due to postponement of IPL, less audience and shift of the
tournament to the United Arab Emirates. In 2020, IPL was conducted in two phases,
which started in April and got suspended mid-way on 4th May with the arrival of the
second wave of the pandemic which impacted the viewership.
The IPL is conducted every year by the BCCI which is richest cricket board in the
world which takes care of all the hurdles which occurs in IPL. Since IPL is not only
limited to the love for the cricket but involves a huge amount of money. The title
sponsorship to broadcasting rights, everything is a multimillion-dollar deal.
BCCI conducts IPL every year irrespective of the hardships it faces. In the year 2009,
the IPL was conducted in the South Africa, due to the Lok Sabha elections in India
and unavailability of the security forces for elections and IPL at the same time and it
turned out to be the huge success. Also, in 2014 due to Lok Sabha elections, the first
phase of IPL was conducted in UAE and became an instant hit because of the
popularity.

Concept and Application:

In the year 2020, due to the Covid-19, BCCI decided to conduct IPL in the UAE,
which became a huge success due to the huge fan base, the biggest league in India
after the T20 World cup, the popularity of the game outside the country and interest
among the foreign nationals around the world.

The Board of Control for Cricket in India (BCCI) has been so consistent on
organizing the IPL every year despite the situations since IPL has gained huge
popularity and success in terms of the fan base and the money involved. There is no
doubt that IPL has become win-win game for everybody be its sponsors, broadcasters
or BCCI, everyone is making money in the long term, that’s why the business model
is so successful. The IPL has also gained interest in the foreign countries and gets
support from the players all around the world because of the great players associated
with the league and is the biggest league in the world after T20 World cup. The IPL
also gives a chance to the new players of world to showcase their talent on a big
platform. IPL also has a large audience, and they keep an eye to not miss any of the
matches and keenly looks up at the schedule. People are excited to see the IPL
matches and would miss them when these are not being played and BCCI do not want
the cricket lovers to miss any of the season or match. One of the reasons of the crowd
to watch matches is the involvement of the celebrities, other reasons are the ads and
promotions of the IPL which helps in creating the excitement around the event.
This cricket premier league has come into existence because of the passion for the
sport by the fans. The IPL has brought the revolution of cricket leagues across the
globe, which gives a platform to showcase the talent from all over the world.
Missing the IPL season will affect the brand financially, since there are lots of people
involved in it. IPL is conducted during the summer vacation and the start of the new
financial year which attracts more views for them. A large proportion of money is
distributed by the BCCI to its franchisees, and they got benefitted every year of
guaranteed income. IPL provides a platform for many brands to launch their products
in the event. Other brands are also eagerly attracted to IPL to maximize their
popularity and increase their return on investment by holding the sponsorship titles
and advertising through IPL to the whole world and succeed in the short-term
approach.
If IPL would not have been conducting in the UAE amid the Covid pandemic in
India, the board would have lost approx. Rs 4000 crore if it wouldn’t have decided to
host it outside the country because it was almost impossible to conduct it within the
city. The board also kept in mind that the viewership of IPL would be significant
since the Indian players haven’t been on field for long time. Although, BCCI didn’t
earn enough money like every year, and faced loss of revenue due to loss of audience
in the grounds physically. BCCI also need to look after the health of the cricketers if
any cricketer test positive, it will be a huge loss for the BCCI to compensate for the
same.
If IPL would not have been conducted, then the brand image of IPL would have been
affected since IPL is a big tournament and everyone including players, audiences,
cricket fans, advertisers, sponsors look out for it every year for their individual
interests and benefits. BCCI is known for maintaining the standards for the Indian
cricket including IPL. The brand’s value is associated with the continuity, reliability
and assurance that makes investors to invest in the tournament and all these factors
are the major aspect for the same as it would determine the brand image of sustaining
under challenges.

Conclusion:

Since, BCCI conducted IPL in the year 2020 in UAE, despite the pandemic and has
been insistent on continuing the season earlier also. The IPL seasons are conducted by
BCCI, which is the richest cricket board in the world and there are many investors,
broadcasters, sponsors etc. who are associated with the IPL and invest their resources
and have a great trust on the brand and seek out for the return on Investment. The
image of the IPL is established with consistent efforts, great discipline and for this
reason, conducting IPL at other country by analyzing the situation has added to the
brand image and made IPL a great success. Although, not conducting IPL in the
pandemic will impact the IPL financially along with disappointment in the fans and
investors. However, the image of IPL would not have been tarnished but conducting
IPL without missing has added to the image and brand value.
 Answer 3(A)
Introduction

Covid-19 has deeply hurt the entertainment industry for a long time which impacted
theatre business and the audiences since they were closed, which also led to change in
the customer behavior. Being a leader of the cinema express, we need to develop a
strategy to ensure that the organization can revive again post pandemic. To develop a
strategy, it is crucial to analyze the strategy of the others associated with the
entertainment industry to be competitive and get an extra edge over others by
formulating plans. Since entertainment industry faced continuous changes technically
due to the impact of the pandemic globally and the evolving audience behavior, it is
important to understand the associated factors and develop a strategy.

Concept and application:

The theatre industry was at loss in the pandemic time due to covid guidelines, and
post pandemic it is necessary to develop strategies to improve the situation and
recover from the losses. For the cinema chain, we would need to form a turnaround or
a transformation strategy to make the theatre chain profitable and leaders should
adopt strategies such as;

Enhancing the ambience, facilities, and live entertainment systems of the theatre:
Social distancing norms forced people to watch television at home instead of going to
cinemas and spending time outside for entertainment. But when the covid-19 situation
improved and large chunk of people were willing to reach these entertainment venues
but were uncomfortable to step out for the entertainment purpose, so the massive
opening was not a great option. There was little challenge in the front of the cinema
halls and other venues to bring these people out and make them realize that the
services which these venues provide are beyond what is available at home.

Increasing the number of audiences and gaining the revenues:

To raise the revenue and increase number of visitors, it is required to become more
flexible as a service provider and provide the audience great experience by offering
them quality experiences at the venues. For example: any sporting event can be
watched at home or in large screen but watching an event in stadiums gives
enthusiasm to the fans and gives a positive energy. So, venues should take measures
to improve the audience’s experience and publicize the same.

Reveal the interesting facts and create unique experiences which could be felt in
person: Streaming platforms could deliver the content to the users using digital
modes, but an enhanced and irreplaceable experience should be provided at the
venues. Exclusive perks such as giveaways, special vouchers, additional AR/VR
enhancements can be a way to attract the audience and achieve the objectives.

Conclusion:
The entertainment industry’s future is exclusive, the companies are utilizing the
hybrid approach and digital and hybrid methods to provide entertainment to the large
number of people. However, to revive the cinema and to succeed, additional
techniques compared to the traditional methods of providing services need to be
developed. Different methods to ease out the reachability could be adopted such as
online, offline booking and payment systems with several available options, ways to
improve the experience such as better AR, VR capability and other ways to make the
audience feel great and valued which would encourage different segments of
audiences to visit frequently.

Answer 3(B)

Introduction:
The theatre business was among the severely impacted business in the covid
pandemic and has suffered huge setback and losses since the focus of the customer
was shifted to the digital streaming platforms and they developed a comfort zone with
the same and were quite reluctant to visit in the theatres for entertainment purpose.
Therefore, a strong brand repositioning strategy needs to be developed which would
be a complicated process as it takes huge efforts to build brand reputation. Integrating
and engaging experiences in person with available alternative options such as remote
watching, live streaming or virtual techniques would be preferrable for those who
enjoys living at home or prefer to visit theatres.

Concept and application:

To reposition the brand, it is essential to build values which consumer can resonate
with, it would require time, focus and effort to create the desired position post
pandemic and to convince the customers to enjoy the theatre. This strategy of brand
repositioning will help the chain to offer new ways to move forward. For example:
You might want to target a different segment of audience, improved level of quality,
better services, and advanced techniques for the visualization and audio. It might also
be possible that new competitors have arrived, and to check the competitive strategy
as well by developing or launching new products which could help in being relevant
in the competitive world and could save the company from any unforeseen situation.
To reposition the theatre company let us look at the products which would help the
company to survive in unforeseen conditions.

 Organizing live events, events which air on streaming media sites could help
the content creators such as musicians, venues, and performers to extend them
internationally by providing live performances in virtual and real theatre
world.
 "The metaverse" will enable interactive 3D "place" that would help people to
interact with others and be in an environment where they can undergo at any
place virtually with their digital representation. Although, the concept of
metaverse will take time to be fully realized. It is an alternative to the physical
world, with online goods, experiences, activities which are compelling enough
to draw both business and consumers. It may include virtual reality,
augmented reality as well as mixed reality and exist in the physical as well as
digital environments. To get recognized in the real world, they’ll need
substantial standardization, adoption, and interoperability at the same time for
creating security and trust. It can be used to create 3D simulations, remote
collaboration, which integrates the virtual and built worlds.

Conclusion:

The virtual world requires advanced VR or AR equipment, and users need to wear
specialized devices to experience the same, and the adoption of these technologies
would require several years. As the head of the cinema express, it would be required
to analyze the different ways which can reposition the company’s brand in the future
in any situation such as pandemic or any other calamity and situation. To stay
competitive in the changing world we would need to reposition the company’s brand
timely and create value for the customer by utilizing the advanced techniques as
described above in the context with the theater chain using the metaverse, augmented
and virtual reality.