Strategic Management

1. Assignment on Strategic
Management
Submitted By:-
AMIT KUMAR
Roll no – 1853362

2. SECTION A
Q1. Give one example each (name of the company and the
initiative) which shows following
(4*1=4)
I. Forward Integration
Forward integration is an instance where the company acquires or merges with a distributor or retailer.
Forward integration would be a farmer who directly sells his crops at a local grocery store rather than to a distribution center
that controls the placement of foodstuffs to various supermarkets.
EXAMPLE - An FMCG company like Britannia build up its own distribution network including regional warehouses so that it can
directly sell to the retailers without having to go via wholesalers.
II. Backward Integration
Backward integration is an instance where the company acquires or merges with a supplier or manufacturer.
Backward integration occurs when a company initiates a vertical integration by moving backward in its industry's supply chain.
EXAMPLE - Bakery that purchases a wheat processor or a wheat farm.
III. Horizontal Integration
Horizontal integration is the process of a company increasing production of goods or services at the same part of the supply
chain. A company may do this via internal expansion, acquisition or merger.
EXAMPLE - Volkswagen’s 2012 acquisition of Porsche (automobiles), Facebook's 2012 acquisition of Whatsapp.
IV. Conglomerate Diversification
Conglomerate diversification is growth strategy that involves adding new products or services that are significantly different from
the organization's present products or services. Conglomerate diversification occurs when the firm diversifies into an area(s)
totally unrelated to the organization current business.
EXAMPLE - Samsung – the electronics giant also makes military hardware, apartments, ships and Samsung also operates a Korean
amusement park.
Q2. Map the following Apparel Brands as per “Strategic Clock”
and providejustification. (4*1=4)

3. Bowman’s Strategic Clock is a model that explores the options for strategic positioning. How a product should be positioned to give it the
most competitive position in the market.
The purpose of Bowman's Strategic clock is to illustrate that a business will have a variety of options of how to position a product based
on two dimensions – Price & Perceived Value.
SHOPPER’S
STOP

4.  VISHAL MEGAMART – The price of product in this store is low which is easily affordable to low income profile
peoples & this store have variety of products also.
 MAX FASHION – This store is Popular & affordable to medium income profile peoples.
 PANTALOONS – This brand produce many types of T-shirt ,shorts, Shirts, jeans ,Ladies kurti & other ladies Appeals
Products etc. etc. & this brand is mostly preferred by users because of its variety & low affordable price.
 SHOPPER’S STOP - This brand produce little bit expensive clothing by others .They have Different types of strips of
unique design of products in T-shirt ,shorts, Trousers or for ladies wear & the main reason it is highly preferred by
users who want some class in their clothing or who have a good purchasing power.
Q3. State True/False and give reasons
5 Focused
Differentiation
6 Risky High Margins
7 Monopoly
Pricing
8 Loss of
Market
Share
1 LowPrice & Low
Added Value
2 LowPrice
3 Hybrid
4 Differentiation
VISHAL MEGAMART
PANTALOONS
MAX FASHION

5. (4*1=4)
I. Related Diversification should be done using equity fund.
TRUE
II. Resource Maximization is the basic motto of Business Level Strategy.
FALSE
III. STEEP Analysis is employed for Industry Analysis.
FALSE
IV. Grand strategy encompasses Corporate Strategies
TRUE
Q4. Map the following product in the Product-Market Expansion
Grid or Ansoff’s Matrix.

6. (4*1=4)
Q5. Define the following and give one example each
Market
Penetration
(Opening of a New Branch
of a Bank)
Product
Development
(Samsung OLED T.V)
Market
Development
(Airtel DTH)
Diversification
(FMCG Company offering
Discounts)
Ansoff Matrix
Existing Product New Product

7. (8*1=8)
I. Mission
Mission describing a company's function, markets and competitive advantages; a short written statement of your business goals
and philosophies. A mission statement defines what an organization is, why it exists, its reason for being.
II. Vision
Vision describes a company's road map, indicating what the company wants to become by setting a defined direction for the
company's growth. Vision statements undergo minimal revisions during the life of a business, unlike operational goals which may
be updated from year-to-year.
III. Turnaround Strategy
Turnaround strategy means to convert, change or transform a loss-making company into a profit-making company. It means to
make the company profitable again. The main purpose of implementing a turnaround strategy is to turn the company from a
negative point to a positive one. ... Turnaround is a restructuring strategy.
IV. Niche Strategy
Niche strategy is put in practice when a company comes up with a product or service that fills a market niche. A
successful niche strategy is characterized by narrow specialization of the product or service, targeting a narrow market segment
or focusing on satisfying of a specific need.
V. Tows Matrix
TOWS Matrix can be defined as the tool to analyze, generate, compare, and select the business strategies to attain the overall
goals and objectives of the company such as higher sales, increased profits, and enhanced brand value amongst other crucial ones.
VI. Takeovers
Takeover is the purchase of one company (the target) by another (the acquirer, or bidder). In the UK, the term refers to the
acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.
... It can also include shares in the new company.
VII. Portfolio Analysis
Portfolio analysis is a systematic way to analyze the products and services that make up an association's business portfolio. In the
way, in which the sound financial investments should be supported and unsound ones discarded, sound organizational activities
should be emphasized and unsound ones deemphasized.
VIII. Strategic Management Process
Strategic Management Process - Meaning, Steps and Components
The strategic management process means defining the organization's strategy. It is also defined as the process by
which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance.
SECTION B
You are appointed as Strategic Consultant for XYZ consulting and you have been given the following projects to
work on
Q1 Provide guidance to a Family Owned Confectionary Shop that whether they should diversify and
open some other Business or they should expand their current Business. You are required to prepare
a table which includes the

8. a) Factors which should be taken into account while deciding amongst the two option and
b) Compare and Contrast each of the Factors to reach on a conclusion.
(4+4=8)
ANSWER - I would like to suggest the expansion of their current Business.
a) Factors which i should suggest to be taken to expand their current Business.
b) I will also Compare and Contrast each of the Factors to reach on a conclusion.
 Diversify your product with variety – If we have a variety in the products, then customers
definitely wants to try something new.
 Work on Product Pricing – we have to decide the product price as according to footfall or
market value of the product.
 Smells Are Free – make your product smells good with essence otherwise nobody wants to
enter in a stinky shop.
 Offer Up Free Samples – when we offers some sample to try then we wins the heart of
people.
 Add more healthy options – everyone wants to be fit & wants to eat healthy food so we
have to make sure that we have a good menu.
 Add beverages to your menu – Essentially need by Good Customers.
 Offer different portion sizes – Displaying of different sizes or portion of bakery item gives
a detailed view report about the product & after viewing the different size it is easy to
make up your mind what to buy.
 Consider different themes – Don’t be like the other restaurant – Try Something Unique
type of interior design.
 Promote your products – Display more & more of your best product to attract your
customer.
 Be nice to your customers – Humbleness always creates good relationships.
 Care about your customers Experience - to expand your business ,this is the only key
which make you Successful.
 Send Emails & Messages to Each of your Customer Segment with discounts offers
to attract customers.
 Be ready for the holidays moods – Like valentine , Marriage Functions , New Year .some of
calendar days are very exciting for peoples & these days always give more profit
 Offer loyalty programs - To encourage people to buy more
 Tap Into Social Media platform - Display your full range of products so people comes to try
at least once.

9.  Try different distribution methods - online ordering and delivery platforms because it
increases sales.
 Thank Your Staff – Motivation Boost Inner power to work
Q2A well Known Health and Fitness Company is looking to foray into Apparel and Shoes Segment.
Provide a detailed Strategic Plan which include
a) Business Level Strategy (4 + 4)

10. Integrated Cost Leadership/Differentiation
 Efficiently produce products with differentiated attributes
 Efficiency – Source of low cost
 Differentiation – Source of unique value
 Involves engaging in primary and support activities that allow a firm to simultaneously pursue
low cost and differentiation.
 Low price with somewhat highly differentiated features
 More value for the money
 Often called best-cost strategy
 Examples: Cult Fit, Targets to enter in Apparel and Shoes Segment on MYNTRA or
FLIPKART.
Focus Strategy Example
 Buyer Groups
 Youth / Senior Citizens
 Product line Segment
 Professional Designer group
 Geographic Market
 Online Market

11. Differentiation
• Competitive advantage: Differentiation
• Competitive scope: Broad
• Integrated set of actions designed by a firm to produce or deliver goods or services at an acceptable cost
that customers perceive as being different in ways that are important to them
• Target customer’s perceive product value
• Customized products - differentiating on as many features as possible
• Examples: HRX – Variety of shoes & Sports Fit T-shirts of Gym Apparel on Myntra or Flipkart.
b) Functional Level Strategy
Functional Level Strategies
All organizations irrespective of the sizes, nature and scope of business must perform the
functions like
 Marketing
 Finance
 Production & Operations
 Human Resources Management
 Research & development etc.

12. Careful planning, execution and coordination of these functions are highly essential for
effective strategic planning ,implementation & Controlling