Assignment – STRATEGIC MANAGEMENT

Answer No. 1)

 INTRODCUTION:

Porter's generic strategy is a theory that describes how a company can not only compete
with but also benefit from the success of its competitors. Porter's differentiation method
comes in four flavours. Some of the common techniques are differentiation strategy,
differentiation consciousness, cost leadership strategy, and value cognizance strategy.

The employer then selects one of two scopes: either the company will only focus on
goods that are specific to a specific market, or the company will focus on a broad range
of products (providing products to an enormous wide variety of purchasers). Those
common tactics are developed to assist a company in making decisions about the market's
breadth and level of competition.

These strategies primarily include goal focus, cost leadership, and differentiation.
According to Porter, an organisation only needs to choose three techniques. All of these
strategies are useful in determining a company's course and outperforming the
competition in the market.

 CONCEPT AND ANALYSIS:

Porter's universal techniques come with a slew of advantages. An organisation

accomplishes this by stealing the earnings of its competitors by refusing to produce them.
Because the fees will be lower while charging enterprise fees that are average, the
company's revenue will increase. Furthermore, by cutting expenses, it will boost stock in
the market, but the corporation will still make a solid profit on every production it makes
as a result of the lower pricing.

1- The differentiation strategy: This strategy entails creating appealing and distinct
offerings and production from the market's current competitors. All of these
techniques are contingent on the type of your business's goods and services.
Durability, functions, a guide, a brand photograph, and functionality are all factors
that buyers consider. The differentiation strategy could be successful if it promises
innovation, research, and improvement. An employer must understand how to
provide high-quality products and services to its customers. Effective marketing and
sales are critical since a client must comprehend the advantages of the company's
excellent services. Massive corporations that employ a differentiation strategy must
 maintain a razor-sharp approach to product and service development. If they fail to do
so, their competitors may be able to quickly attack them in order to profit in the
marketplace. For example, there are a plethora of high-end manufacturers on the
market. Humans purchase them to demonstrate how well they are doing in their lives.
These labels are the epitome of affluence. Luxury brands have a strong brand image.
Humans are willing to pay a high price for products and services from those brands
that appear in the marketplace. Louis Vuitton is a wonderful example of a company
that uses a differentiation strategy. The specific outcomes and features a great brand
image in the fashion industry.

2- Differentiation focus: Companies that use a differentiation focus strategy

differentiate their products from the competition and target a specific market. Their
objectives are typically focused on niche markets. Many customers are expected to
develop strong brand loyalty as a result of the system. Even after implementing a
differentiation awareness strategy, an employer should not lose sight of the fact that
the product or service must stand out from the competition. This strategy can be
implemented by first understanding the needs of the clients as well as the market
dynamics. The products are typically low-cost and market-specific. Companies that
use this strategy serve and build strong credibility with their customers in a unique
way. While pursuing a focal point differentiation strategy, it is necessary to add
something extra to a product. This can be accomplished by lowering costs or
increasing product or service differentiation.

3- Cost leadership strategy: Porter's cost leadership strategy focuses on gaining an

advantage over the competition. This strategy has a large audience. The prices of
goods and services must be significantly reduced. There are some points that fall
beneath the cost leadership strategy. You can either keep your prices low or aim for a
large audience with low prices. In both of these cases, the fee is typically low.
Organizations generally make a lot of money even when they cut the prices of their
products. The primary focus is on the enterprise's internal operations. In terms of
pens, Bic makes some excellent products at a reasonable price. All of the products
marketed by Joline are low-cost, user-friendly, high-quality, and delivered quickly.
They are adamant that a price leadership strategy be strictly adhered to. They are
targeting a large audience, which is why the price of their product is significantly
lower than the price of similar products from other companies.

4- Cost focus strategy: The primary goal of this approach is to gain knowledge of the
market of interest. In a smaller market, there is significantly less competition. People
buy products and services at the lowest possible cost. This strategy allows humans'
desires to be met at a significantly lower cost.
  CONCLUSION:

Porter's universal tactics have a number of benefits. This is accomplished by a company

stealing its competitors' earnings by refusing to produce them. The company's revenue
will increase because the fees will be cheaper while charging average enterprise fees.
Furthermore, decreasing costs will increase stock in the market, but the business will still
make a good profit on each production due to the cheaper pricing.Philipp Plein employs a
variety of approaches, including the cost-based leadership method, to achieve the best
results. Using those strategies to achieve the desired results can be extremely beneficial.
In addition to offering high-quality merchandise, they can also offer competitive pricing
to their customers. When these companies' clients hire the services of their employees,
they may be able to enjoy low-cost shopping. Cost-cutting strategies separate them from
powerful suppliers. Suppliers usually have a few key customers. Suppliers must provide
reasonable pricing to support R&D and lobbying.

Answer No. 2)

 INTRODCUTION:

A variety of elements relating to an organization's environment have an impact on its

operations. A corporation can't control everything that happens in this situation. The
PESTLE study, which employs the PESTLER model, is a way of determining the
elements that may have an impact on an organisation. To accomplish this, the working
environment must be tailored to eliminate all disruptions and problems. In order to be
successful in life, it is critical to turn obstacles into successes. This is a fantastic website
that answers a lot of questions about how a company may move forward. It was
previously the most effective PESTLE analysis. However, prison and the environment
were later added to the framework. It is simple to put into practice. The company's
mission is to turn opportunities into successes. It provides a comprehensive view of the
entire environment from a variety of perspectives. PESTLE evaluations look at the
project's political, economic, social, and technological components, as well as issues that
affect the prison environment. It goes without saying that the work they accomplish
differs from one another.

 CONCEPT AND ANALYSIS:

Questions such as how do political events effect countries' business and how do they
damage the United States' political reputation are addressed in this study. What are the
most recent monetary factors? What role does tradition play in the marketplace? What
impact will technology have on the industry? Is there any legislation that would allow the
agency to be replaced or dealt with? What are your specific concerns about your
surroundings? All of these questions are necessary for any company to stay afloat in the
market. To meet simple desires, all of the elements form the spine of any company. This
analysis explains what a company needs to achieve and also establishes goals for the
future. A PESTLE analysis is a complete model of a common SWOT analysis. PESTLE
has a unique role in an organization's success because of the importance of all the aspects
listed below. As a result, it's critical to recognise them all in their entirety.

1- Political factor: The presence and influence of a central authority on an

industry is shown by this feature. Changes in pricing lists, tax legislation, and
fiscal restrictions are all political factors. For example, the government of any
United States can apply additional taxes and tariffs, resulting in a change in
the corporate enterprise's income structure. These rules can be implemented at
any time of the year. Political factors can have a significant impact on any
institution. So, before entering a new market, a corporation must consider the
political balance of a country, taxation rules, influential political personalities
and ideas, the current administration's political ideology, any projected future
changes by the government, and regulatory standards.

2- Economic factors: These aspects are inextricably linked to a country's

financial performance. An economic system can have a little but significant
impact on the industry. For example, if the inflation rate in the United States
rises, the costs of a company's products and services will rise as well. This
may have an impact on clients' shopping prices in order to swap the market's
whole demand and delivery method. Hobby expenses, financial boom styles,
inflation fees, and forex fees are all economic issues. The economic
environment, such as inflation rates, consumer spending capacity,
unemployment rates, critical features of a given zone, and alternate cycles
such as despair and melancholy, should all be considered by businesses.

3- Social factors: The employer is influenced by everything that is going on in

society. In any business, tradition is quite important. They do a thorough
examination of all social situations. Cultural trends, population, market
demographics, cultural and non-religious components, and customers
shopping for a machine, as well as the kingdom's and media's impact on the
country's current lifestyle trends. These kinds of social elements are to blame
for an organization's growth.

4- Technological factors: Nowadays, the era plays an important role in our lives.
We all use machines on a daily basis. Any country's technical elements can
either be a threat or an opportunity to rise in the market. All technological
advancements are linked to technological elements. These people can work
 both for and against the employer. An organisation should pay attention to
technical elements such as innovations, technological maturity, manufacturing
generation, new generation of production, patents, development, automation,
intellectual assets, and research.

5- Criminal factors: Many legal guidelines have an impact on the market.

Authorities enact a variety of policies that an enterprise must follow when
operating a business in a country, such as regional and local laws, fitness and
safety guidelines, commercial enterprise law, consumer laws, labour laws,
global agreements, and environmental laws legal policies.

6- Environmental factors: All groups are influenced by the environment in

which they work. Farming, tourism, climate, agriculture, climate change,
environmental offsets, electricity consumption, waste disposal, and
geographical location are among these factors.

 CONCLUSION:

Because it encompasses all environmental components and characteristics, PESTLE

analysis has been determined to be a good instrument for analysis at the INSEAD. It
provides access to information that allows for a more in-depth and comprehensive view
of the business environment. The most well-known benefit of employing this tool is that
it allows organisations to foresee future dangers and prevent them from having a
detrimental impact on their operations. It is intended that this analysis would serve as a
foundation for investigating and identifying the unique elements that exist in the Indian
market. India's market is similarly broad and diverse, and it is made up of a variety of
elements that all have a role in defining it. As a result, the PESTLE analysis is the most
efficient way for doing a risk assessment.

Answer No. 3(a)

 INTRODCUTION:

It's critical to recognise that the cut-down strategy is a tool that businesses use to evaluate
their policies and build new ones. To put it another way, it permits an organisation to
postpone a choice that, if made, would be disastrous for the organisation. In these
conditions, a company's primary focus should be on changing the way it conducts
business. Negative control, declining market share, and high employee attrition costs, as
well as a negative cash flow, ongoing losses, insufficient corporate strategies, poor
 practical management, and uncompetitive services and products, are all indicators that an
organisation should pursue a turnaround strategy.

 CONCEPT AND ANALYSIS:

Through an excellent retrenchment approach, it is feasible to deal with any environmental

concerns.
The following are examples of turnaround strategies:
Investment diversification, account receivable reduction, pay increment removal, stock
reduction, marketing sports reduction, and stretching payable money owing are all part of
this strategy.

a- Cost-cutting tactics - many businesses use this method to achieve immediate results.
This method improves coin float or stabilises an organization's finances. The value-green
approach is being applied first because it is simple to implement, produces immediate
returns, and requires significantly less money. Tut, a cost-benefit analysis

b- Asset retrenchment techniques- When a company's overall performance declines, it

employs an asset retrenchment strategy. This strategy is based on a fee-for-performance
model. This strategy focuses on all areas that are underperforming.

c- Leadership change- As part of the turnaround strategy, many organisations replace

their executive leader (CEO). The CEO is responsible for all of the company's
commitments, and their replacement might bring a lot of change to the device. In this
case, the corporation develops new techniques under the direction of a new CEO.

d- A corporation's intermediate activities- the primary focus is on the agency's primary

sports. Customers, market identification, products, and services are all part of a
company's core activities. The main goal is to make a reasonable amount of money and
acquire stability.

 CONCLUSION:

This is why turnaround methods are beneficial in keeping a company from going out of
business. If Ford automobiles followed the procedures outlined above, they would be able
to achieve the results mentioned. All of these turnaround approaches can aid in the
company's production recovery. The primary goal should be to maintain a solid position
within the company. The turnaround tactics are quite powerful, and they may be able to
deliver exact products in the market.
Answer No. 3(b)

 INTRODCUTION:

An organisation decides to form a strategic alliance in order to boost product sales,

reduce competition, and boost profitability. Organizations can work together to reach an
agreement in a short amount of time or over a lengthy period of time. The formality or
informality of the alliance may be involved, depending on the nature of the relationship.
A strategic alliance is a partnership between two or more groups or organisations whose
goal is to support a common good cause while remaining autonomous. It's not as difficult
as a joint mission. Each member of the business enterprise's job and responsibility are
well described—each of the firm's proportion resources to achieve profits from the joint
effort.

 CONCEPT AND ANALYSIS:

Companies strive for the same goal. The reasons for collaborating with another company
include gathering resources to generate large sums of money, becoming aware of new
technology, lowering the risk factor, achieving a cost-cutting device, maintaining a
leading position in the market, speeding up the production process, and expanding into
new and limited markets. Horizontal strategic alliances, vertical strategic alliances,
strategic fairness alliances, joint ventures, and non-equity strategic alliances are examples
of strategic alliances. This type of collaboration can assist a company in developing an
efficient manufacturing system.

ADVANTAGES-

New perception: When the company's best friend sends a positive and clear message to
the customers, this creates a new perception. Each party can benefit from the other's
brand image.

Improvements to current sources: employees from each business can research new
capabilities from each other.

Reduced rivalry: This type of agreement sends a strong message to all of the market's
rivals. In any scenario, they help each other. The scope of learning expands and
improves.
 Businesses can help each other in the event of a crisis, reducing risks: The risk of
trying something new for an employer is far too great. As a result, partnerships aid in the
reduction of such hazards.

A whole new market: The formation of a strategic alliance opens the door to a plethora of
new markets. Alliance might be incredibly cost-effective for all of the companies. It is
not a high-priced merger or acquisition. They can also enter any local market. These
partnerships aid in the expansion of a company's global operations.

Customers and new capabilities: These types of agreements help businesses gain new
clients. Personnel are also exposed to new technology and capabilities.

DISADVANTAGES-

Trust issues: These types of issues arise in such relationships.

Conflicts: Conflicts can arise when businesses disagree on a topic. The most common
type of difficulty in such unions is a cultural barrier. Different control styles—two
groups' operating systems may differ from one another.

 CONCLUSION:

There are numerous benefits and drawbacks to forming a strategic alliance or forming a
joint venture. Before imposing any strategic partnership, a corporation should provide a
profound concept. As a result of this type of alliance, a company can produce precise
results.