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Strategic Management

Q. 1.

Understanding Porter's Generic Strategies model, there are three urgent basic decisions
which would try to give edge over other competitors are: Cost Leadership, Differentiation
and Focus.
Cost leadership is a strategy companies use to increase efficiencies and reduce production
costs below the industry average or their closest competitor.

Companies that successfully implement this strategy usually have: Access to the capital
needed to invest in technology that will bring costs down, Very efficient logistics, A low-cost
base (labor, materials, facilities), and a way of sustainably cutting costs below those of other
Differentiation involves making your products or services different from and more attractive
than those of your competitors.

For successful implementation of this technique required Good research, development

and innovation and the ability to deliver high-quality products or services, effective sales
and marketing, so that the market understands the benefits offered by the differentiated
Focus strategies concentrate on particular niche markets and, by understanding the dynamics
of that market and the unique needs of customers within it, develop uniquely low-cost or
well-specified products for the market. Because they serve customers in their market
uniquely well, they tend to build strong brand loyalty amongst their customers. This makes
their particular market segment less attractive to competitors.


Apart from Porter generic strategy. I gather the enquirer has the mindful learning of the
indistinguishable. Attendant basically looks at 3 standard techniques - (1) Cost/Price
Leadership, (2) Product Differentiation, and (3) Focus.
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Cost leadership is a defendable strategy because:
I. It defends the firm against powerful buyers. Buyers can drive price down only to
the level of the next most efficient producer.
II. It defends against powerful suppliers. Cost leadership provides flexibility to
absorb an increase in input costs, whereas competitors may not have this
III. The factors that lead to cost leadership also provide entry barriers in many
instances. Economies of scale require potential rivals to enter the industry with
substantial capacity to produce, and this means the cost of entry may be
prohibitive to many potential competitors.
A closer assessment of these nonexclusive systems uncovers that the Cost/Price Leadership
is irrefutably appropriate for a market structure with highlights close those of Perfect
Competition, where the thing is an item - a thing offering that can't be detached starting with
one seller then onto the accompanying. In this manner, the lower the expense of age, the
lower is your cost and higher is the eagerness for your thing. This technique can be sent for
items, item like things, mass things, and present day things.

Regardless of the way that the Product Differentiation strategy is obviously legitimate for
Monopolistic test, a market circumstance wherein there might be different free purchasers
and different self-administering sellers yet rivalry is imperfect by prudence of thing division,
topographical split of the market, or some relative condition. This is the structure sent by the
patrons of the Fast Moving Consumer Goods [FMCG]. These are the individuals who
gathering typically enduring brands subject to Product Differentiation. A touch of the most
impeccably marvelous of this part join the Unilever Group, Procter and Gamble, ITC, etc.

From this discussion of Porter's Generic Strategies, clearly as a promoter of Swiss expensive
Shoes, one should get a handle on Focus+Product Differentiation to enter the Indian market.
Focus on a particular buyer group, product segment, or geographical market.
The classes of clients I might be target:

New customer – New Neil

New Neil is the fresh customer that just bought something from you. He is still learning the
ropes of using your product. You need to do everything in your power to make that adoption
period smooth.
Strategic Management
Even though you already made a sale, you can’t leave Neil without any help. If he won’t
receive it, he may not find much success with your product. The time you save by not
helping Neil will be less valuable than the future business he may bring.

You can make sure that doesn’t happen with a proper user onboarding. After someone buys
your product, you need to guide them and show them how to use it.

How to deal with New Neil:

 Guide them to success: You can earn a long-lasting customer by investing a bit of
your time into explaining how your product works and making sure the new customer
knows how to use it. You can do that with a proper onboarding process.

 Leave a contact option open: Even if you offer an automated onboarding to

customers, have a live customer service option available. It will go a long way in
situations when a customer has a question that’s not covered in the onboarding.


Watchman's nonexclusive techniques are the by and large enormous perceived pool of
decisions for any relationship to search for after to make progress and future. People in an
industry might be practical after any of these nonexclusive systems as long as they stick near
the technique and don't push toward a "stuck in the center" position of trying to be everything
to all clients (for example offering quality stand-separated things at low expenses).
Attendant's systems are a continuum with insignificant effort toward one side and separation
at the other. Firms searching for after a tight game-plan of clients still should pick one
fulfillment of the continuum in the center technique.

Q. 2.
Ans: 2
Strategic Management
PESTLE analysis, which is sometimes referred as PEST analysis, is a concept in marketing
principles. Moreover, this concept is used as a tool by companies to track the environment
they’re operating in or are planning to launch a new project/product/service etc.
From the beginning dealt with as a business standard yield, the PEST or PESTLE appraisal is
an assessment of the external gigantic scale condition (titanic picture) in which a business
works. These are regularly factors which are outside the capacity to control or effect of a
business, notwithstanding, are key to think about when achieving thing progress, business or
strategy orchestrating.


Direct a PESTLE assessment for Uniqlo in India:


The crucial stage in sorting out a PESTLE assessment is understanding the PESTLE model
itself — explicitly, the six groupings. The six general classes of business factors that
PESTLE examination draws from are:

• Political

• Economic

• Sociocultural

• Technological

• Legal

• Environmental
Strategic Management
These factors determine the extent to which a government may influence the economy or a
certain industry. For example, a government may impose a new tax or duty due to which
entire revenue generating structures of organizations might change. Political factors include
tax policies, Fiscal policy, trade tariffs etc. that a government may levy around the fiscal year
and it may affect the business environment (economic environment) to a great extent.

These factors are determinants of an economy’s performance that directly impacts a
company and have resonating long term effects. For example, a rise in the inflation rate of
any economy would affect the way companies’ price their products and services. Adding to
that, it would affect the purchasing power of a consumer and change demand/supply models
for that economy. Economic factors include inflation rate, interest rates, foreign exchange
rates, economic growth patterns etc. It also accounts for the FDI (foreign direct investment)
depending on certain specific industries who’re undergoing this analysis

Sociocultural factors, now and again suggested as essentially 'social' factors, address how the
social and social bits of a picked market may influence business. An example for this can be
buying trends for countries like India where there is high demand during the festival season
especially during diwali.

These factors pertain to innovations in technology that may affect the operations of the
industry and the market favorably or unfavorably. This refers to automation, research and
development and the amount of technological awareness that a market possesses.

These factors have both external and internal sides. There are certain laws that affect the
business environment in a certain country while there are certain policies that companies
maintain for themselves. Legal analysis takes into account both of these angles and then
charts out the strategies in light of these legislations. For example, consumer laws, safety
standards, labor laws, copyright of products etc.
Strategic Management

Precisely when you're familiar with the six depictions of PESTLE appraisal, the ensuing
stage is to start doing your assessment. In case you're new to business evaluation, this can be
much extraordinarily gravely planned. You're likely considering what information to join
into your PESTLE assessment and where to find it, regardless we'll react to both of those
requesting a couple of moments prior!


It's reliant upon you to pick what information is essential to the degree of your assessment.
Our recommendation is to have an average think about your business, with the target of
appreciating which strategies are most material to you. Precisely when you comprehend
which classes are most tremendous, you can give extra time and effort into finding
information in those depictions.

This is the explanation a standard PESTLE evaluation requires a prevalent than typical
perception of the business or association which you're looking. The more you consider your
business, the all the more fitting information you'll choose for examination.


Right when you've sourced your information, the basic concern left is to amassed most of the
pieces. Again, there's no set condition on the most fit technique to do this, yet we cement a
few recommendation on how you can outline a PESTLE evaluation report underneath.

Make six areas for inside substance. Use one section for each class, and harden all the fitting
components inside each area. If fundamental, split the territories into subsections which
spread bulkier subjects.
Strategic Management
Unite an introduction and fulfillments. You'll see that a snappy introduction which explains
the goal of your PESTLE appraisal is absolutely noteworthy for perusers. In like way, an end
territory (with a great deal of express assessment, arriving at fundamental choices from the
data showed up in the report) is incomprehensibly basic.


Considering, PESTLE evaluation is an immense business mechanical social gathering that

secludes six stand-apart gatherings of outside fragments, all of which can influence
affiliations. From political ones to biological ones, these groupings shows a wide level of
variables which can affect a business. In any case, PEST evaluation (and its subordinates) is
really not a raised system that considers each kind of factor, especially as some reasonable
can't be referenced ,so don't be indulgently worried if you don't get an even spread of
different factors in your examinations.

Q. 3 (a)
Ans: 3 (a)
“Turnaround strategy is an analytical approach to solve the root cause failure of a loss-
making company to decide the most crucial reasons behind its failure. Here, a long-term
strategic plan and restructuring plans are designed and implemented to solve the issues of a
sick company.”

Approach & Recommendations

To identify the root causes of the issue, we started with the diagnostic study. We conducted a
thorough analysis of the company’s current marketing & sales strategies, including analysis
of sales data and relative performance of each brand and product categories across different
geographies. Furthermore, few interviews of top management and key officials had been
taken to gain their perspective on the issues. In addition, we performed a market assessment
to identify growth opportunities in the Indian market, to understand retailer’s perception
about the brand and analyze the company’s competitive position.
Strategic Management

Building trust with customer reviews:

Reviews are a valuable social proof, ensuring buyers that their decisions to buy are valid.
Consumers prefer to turn to the opinions of other customers, instead of getting all the
information from the marketing materials. This means that a high rating and positive reviews
can make your business successful.

Customer Satisfaction:
Giving a good and hassle free sales and service experience to its customer.

Mitigating Cyclicality:

Planning to strengthen its operations while gaining market share and offering a wide range of
product and also planning to strengthen its business operations like financing of vehicles and
spare part sales and maintenance contracts among others.

Q. 3 (b)

Ans: 3 (b)

The Combination Strategy means making the use of other grand strategies (stability,
expansion or retrenchment) simultaneously. Simply, the combination of any grand strategy
used by an organization in different businesses at the same time or in the same business at
different times with an aim to improve its efficiency is called as a combination strategy.

A mix framework is the mission for at any rate two of the past methods simultaneously. For
instance, one business in the affiliation may check for after progress while another in a
similar association is contracting. The Tube Investments of India (TI), a Murugappa group
company, has created strategic alliances in its three major businesses: tubes, cycles, and
Strategic Management
strips. In cycles, it has entered into regional outsourcing arrangements with the UP-based
Avon (which we could term as co-competition, as Avon is TI’s competitor in the cycle
industry) and Hamilton Cycles in the western region. In steel strips, TI has entered into a
manufacturing contract with Steel Tubes of India, Steel Authority of India, and the Jindals
and L&T sold off its cement division to Kumar Mangalam Birla’s Grasim industries. By
selling off this division, L&T was better able to concentrate on its growth strategy of its core
engineering business.


Consequently, such structure is scanned for after when an affiliation is gigantic and complex
and contains two or three affiliations that lie in various affiliations, filling various needs.
Experience the going with manual for have a staggering point of view on the blend structure.
In that farthest point the potential mixes of systems might be: Stability in unequivocal
affiliations and improvement in different affiliations – Stability in express affiliations and
securing in different affiliations – Growth in unequivocal affiliations and assertion in
different affiliations – Stability, development and safeguarding in various affiliations.