ASSINGMENT ON

STRATERGIC MANAGEMENT

SUBMITTED BY:
SAMPADA KARPATE(17)
 DELL
Dell Inc. is a multinational information technology corporation
that develops, sells and supports computers and related products
and services, as a merchant. Dell grew during the 1980s and
1990s to become (for a time) the largest seller of PCs. At the end
of 2009, it held the third spot in computer sales within the
industry behind Hewlett-Packard and Acer Inc. As of 2009, the
company sold personal computers, servers, data storage devices,
network switches, software, and computer peripherals. Dell also
sells HDTVs, cameras, printers, MP3 players and other electronics
built by other manufacturers.

In 2006, Fortune magazine ranked Dell as the 25th-largest

company in the Fortune 500 list, 8th on its annual "Top 20" list of
the most-admired companies in the United States. In 2007 Dell
ranked 34th and 8th respectively on the equivalent lists for the
year. A 2006 publication identified Dell as one of 38 high-
performance companies in the S&P 500 that had consistently out-
performed the market over the previous 15 years.

The success of Dell is based on a simple concept: They maximize

there understanding of customers’ needs, and then fulfill them
with superb value; high-quality, relevant technology; customized
systems; superior service and support; and products and services
that are easy to buy and use.

Their evolving strategy combines their revolutionary direct

customer model with new distribution channels to reach more
consumers and small businesses. So their technology reaches
more people around the world via alternative sales channels,
while our traditional, direct relationships with customers continue
to flourish.

They recognize that the real key to our success lies in their
talented team. So they treat them with the respect they deserve.

2
 SWOT ANALYSIS

Strengths

1. World’s largest PC maker.

2. One of the best known brands.

3. Cuts out the retailer.

4. Customer’s own specification.

5.elatively cheap labor

6. Keep track of your delivery.

Weaknesses

1. A huge range of products and components from many suppliers

from various countries.

2. Computer maker not computer manufacturer making DELL

unable to switch supply.

Opportunities

1. Diversification strategy by introducing many new products to

its range.

2.Making and selling low-cost, unbranded low-price computers to

PC retailers in the United States

Threats

1. Competitive rivalry that exists in the PC market globally.

2. New entrants to the market pose potential threats.

3. Exposed to fluctuations in the World currency markets.

3
 Five Forces Analysis

Strength of Suppliers

Large number of suppliers for components like hardware,

keyboards, etc.
But two major inputs are monopolized
• Microsoft standard for all PC’s
• Intel standard for most PC’s
• High switching costs

AIRTEL
Bharti Airtel formerly known as Bharti Tele-Ventures LTD is the largest
cellular service provider in India, with more than 121 million subscribers as
of January 2010. With this, Bharti is now the worlds third-largest, single-
country mobile operator and sixth-largest integrated telecom operator. It
also offers fixed line services and broadband services. It offers its TELECOM
services under the Airtel brand and is headed by Sunil Bharti Mittal. The
company also provides telephone services and broadband Internet access
(DSL) in top 95 cities in India. It also acts as a carrier for national and
international long distance communication services. The company has a
submarine cable landing station at Chennai, which connects the submarine
cable connecting Chennai and Singapore.

The businesses at Bharti Airtel have always been structured into three
individual strategic business units (SBU's) - Mobile Services, Airtel Telemedia
Services & Enterprise Services. The mobile business provides mobile & fixed
wireless services using GSM technology across 23 telecom circles while the
Airtel Telemedia Services business offers broadband & telephone services in

4
95 cities and has recently launched a Direct-to-Home (DTH) service, Airtel
Digital TV.

BUSINESS MODEL

Airtel focuses only and solely on two things - customer acquisition &
servicing (retention) and business development/expansion. ALL other
functions - hardware, network management, backend applications (billing
etc), value added services and even telecom infrastructure - are outsourced.
Airtel pioneered this in the Telecom game. It was the first to give up network
management to companies like Nokia Siemens and Ericsson, IT and backend
applications to IBM, billing to someone else etc. It was also the first to divest
it’s hard assets, i.e. - its telecom towers - to a separate company and lease
them back themselves as well as monetize surplus bandwidth by selling to
other operators. This was the ultimate act in putting the faith in the brand
rather than in iron and steel.

Because of the focus on the customer experience and on business

development, Airtel has been not only the fastest growing but the most
innovative of operators. It has realized the importance of having access to
the consumer at all levels, and therefore is going from core mobile to
landline internet, Digital TV (DTH) and even digital cinema (theaters). Its
taking AT&T’s triple play and making it quintuple (5x)-play and more.

SWOT Analysis

Strengths

Bharti Airtel has more than 65 million customers (July 2008). It is the largest
cellular provider in India, and also supplies broadband and telephone
services -as well as many other telecommunications services to both
domestic and corporate customers.
Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing
Tel, with whom they hold a strategic alliance. This means that the business
has access to knowledge and technology from other parts of the
telecommunications world. The company has covered the entire Indian

5
nation with its network. This has under pinned its large and rising customer
base.

Weaknesses

An often cited original weakness is that when the business was started by
Sunil Bharti Mittal over 15 years ago, the business has little knowledge and
experience of how a cellular telephone system actually worked. So the start-
up business had to outsource to industry experts in the field.
Until recently Airtel did not own its own towers, which was a particular
strength of some of its competitors such as Hutchison Essar. Towers are
important if your company wishes to provide wide coverage nationally.
The fact that the Airtel has not pulled off a deal with South Africa's MTN
could signal the lack of any real emerging market investment opportunity for
the business once the Indian market has become mature.

Opportunities

The company possesses a customized version of the Google search engine

which will enhance broadband services to customers. The tie-up with Google
can only enhance the Airtel brand, and also provides advertising
opportunities in Indian for Google. Global telecommunications and new
technology brands see Airtel as a key strategic player in the Indian market.
The new phone will be launched in India via an Airtel distributorship. Another
strategic partnership is held with BlackBerry Wireless Solutions. Despite
being forced to outsource much of its technical operations in the early days,
this allowed Airtel to work from its own blank sheet of paper, and to question
industry approaches and practices - for example replacing the Revenue- Per-
Customer model with a Revenue-Per-Minute model which is better suited to
India, as the company moved into small and remote villages and towns. The
company is investing in its operation in 120,000 to 160,000 small villages
every year. It sees that less well-off consumers may only be able to afford a
few tens of Rupees per call, and also so that the business benefits are
scalable - using its 'Matchbox' strategy. Bharti Airtel is embarking on another
joint venture with Vodafone Essar and Idea Cellular to create a new
independent tower company called Indus Towers. This new business will

6
control more than 60% of India's network towers. IPTV is another potential
new service that could underpin the company's long-term strategy.

Threats

Airtel and Vodafone seem to be having an on/off relationship. Vodafone which

owned a 5.6% stake in the Airtel business sold it back to Airtel, and instead
invested in its rival Hutchison Essar. Knowledge and technology previously
available to Airtel now moves into the hands of one of its competitors.
The quickly changing pace of the global telecommunications industry could
tempt Airtel to go along the acquisition trail which may make it vulnerable if
the world goes into recession. Perhaps this was an impact upon the decision
not to proceed with talks about the potential purchase of South Africa's MTN
in May 2008. This opened the door for talks between Reliance
Communication's Anil Ambani and MTN, allowing a competing Indian
industrialist to invest in the new emerging African telecommunications
market. Bharti Airtel could also be the target for the takeover vision of other
global telecommunications players that wish to move into the Indian market.
Airtel comes to you from Bharti Airtel Limited, India's largest integrated and
the first private telecom services provider with a footprint in all the 23
telecom circles. Bharti Airtel since its inception has been at the forefront of
technology and has steered the course of the telecom sector in the country
with its world class products and services. The businesses at Bharti Airtel
have been structured into three individual strategic business units (SBU's) -
Mobile Services, Airtel Telemedia Services & Enterprise Services.

Five Forces Analysis

Strength of Suppliers

Suppliers (supplier power)

Ericsson – GSM Network Management Service Provider

7
 AMWAY
Amway is a direct selling company and manufacturer that use multi-level
marketing to sell a variety of products, primarily in the health, beauty, and
home care markets. Amway was founded in 1959 by Jay Van Andel and
Richard DeVos. Its product lines include home care products, personal care
products, jewelry, electronics, Nutrilite dietary supplements, water purifiers,
air purifiers, insurance and cosmetics. In 2004, Health & Beauty products
accounted for nearly 60% of worldwide sales. Amway conducts business
through a number of affiliated companies in more than ninety countries and
territories around the world. It is ranked by Forbes as one of the largest
private companies in the United States and by Deloitte as one of the largest
retailers in the world.

The AMWAY business model is based on the AMWAY Business

Owner Compensation Plan – a low-risk, low-cost business opportunity that is
open to everyone.

An AMWAY business rewards you for selling products and

for sponsoring others who do the same. As your business grows, so do your
rewards. In this business you earn income from: Retail profit on product
sales to customer.

SWOT ANALYSIS

Strength

1. Based on direct selling operation.

2. Training to staff.
3. Function is performed by IBOS.
4. Organize meetings and events time to time.
5. Have good customer service system.
6. Return and refund policies.

Weakness
1. More power to IBOS
2. Initially high entry cost
3. Rumors for direct selling operations
4. Focus shifted from selling products to recruiting.

8
Opportunities
1. Setup a manufacturing plant.
2. Population of china.
3. Popular in china.

THREATS

1. Too much freedom to IBOS.

2. Change in government policies
3. Competitors

MCDONALDS
"McDonald's vision is to be the world's best quick service restaurant
experience. Being the best means providing outstanding quality, service,
cleanliness, and value, so that we make every customer in every restaurant
smile."

The McDonald's philosophy of Quality, Service, Cleanliness and Value

(QSC&V) is the guiding force behind its service to the customers. McDonald’s
India serves only the highest quality products. All McDonald’s suppliers
adhere to Indian Government regulations on food, health and hygiene while
continuously maintaining their own recognized standards. All McDonald’s
products are prepared using the most current state-of-the-art cooking
equipment to ensure quality and safety. At McDonald’s, the customer always
comes first. McDonald’s India provides fast friendly service- the hallmark of
McDonald’s that sets its restaurants apart from others. McDonald’s
restaurants provide a clean, comfortable environment especially suited for
families. This is achieved through McDonald’s stringent cleaning standards,
carefully adhered to.

9
A Marketing plan must be created to meet clear objectives. Objectives guide
marketing actions and are used to measure how well a plan is working.
These can be related to market share, sales, and goals, reaching the target
audience and creating awareness in the marketplace. The objectives
communicate what marketers want to achieve. Long-term objectives are
broken down into shorter-term measurable targets, which McDonald's uses
as milestones along the way. Results can be analyzed regularly to see
whether objectives are being met. This type of feedback allows the company
to change plans. It gives flexibility. Once marketing objectives are set the
next stage is to define how they will be achieved. The marketing strategy is
the statement of how objectives will be delivered. It explains what marketing
actions and resources will be used and how they will work together.

• McDonald’s plans to open as many as 140 restaurants throughout India

this year, focusing on drive-through outlets.

• Investment of more than Rs.400 crore in the next two years to expand
its operations.

• Transform itself into a high-volume, mass-market brand with

compounded annual growth at around 30 per cent to 35 per cent in the
next few years.

• Addition of franchisees as current 75% income generated is from

franchisee centers affiliated to McDonald’s.

• Moving out of the metros and concentrate its efforts on other mid-sized
cities in providing service. The plan is to enter a new city, understand
the market and then multiply by opening up more outlets in these cities
rather than spreading to too many cities at a time

• Increase the number of customers turning up at its restaurants around

the country by providing the same service and quality by achieving
100% customer satisfaction.

• Target on customers between age-groups 24-38 with children’s to

position itself as a family restaurant and the ideal place for kids and
teenagers.

• Increase brand loyalty among customers. To build a new generation who

will stay with the brand and then emerge as a long-term player.

10
 • Introduce new innovative menus by development of new products, which
cater to people's needs by keeping Indian tastes in mind and to provide
greater choice whilst ensuring that the products meet the
requirements of a balanced diet, so that the crowds keep pouring
through the doors.

McDonald’s followed concentrated marketing (or niche marketing), a market-

coverage strategy in which a firm goes after a large share of one or a few
segments or niches. Different phases to move into target markets was
scheduled on –
o Phase I – Focus on cities of relatively high incomes where citizens are
exposed to western food and culture. High-income urban dwellers are
seeking variety in their choice of foods and are willing to spend more on
international cuisine, including fast foods.

o Phase II – Move to smaller satellite towns .Positive spill-over effect of

reputation from main metros. Other cities like Jaipur, Agra were also
targeted to attract foreign tourists who often visit them as favourite
tourist destinations.

o Phase III – Move on to crowd pulling centers like malls, multiplexes,

highways, railway stations and airports.

o Phase IV – Introduce new low-priced products with same quality and

service for middle – class income groups of people.

SWOT Analysis

Strength

1. Risk diversity
2. Large market share.
3. Strong supply chain.
4. Promoting ethical conduct
5. Rigorous food safety standards
6. Decentralized yet connected system
7. Strong brand name, image and reputation.

11
8. Strong financial performance and position
9. Affordable prices and high quality products
10. Nutritional information available on packaging
11. Strong global presence & performance in the global marketplace.
12. Specialized training for managers known as the Hamburger University.
13. McDonalds Plan to Win focuses on people, products, place, price and
promotion.

Weakness

1. Unhealthy food image.

2. High Staff Turnover including Top management
3. Customer losses due to fierce competition.
4. Legal actions related to health issues; use of Trans fat & beef oil.
5. Uses HCFC-22 to make polystyrene that is contributing to ozone
depletion.
6. Low depth and width of products

Opportunities

1. Growing health trends among consumers

2. Joint ventures with retailers (e.g. supermarkets).
3. Consolidation of retailers likely, so better locations for franchisees.
4. Respond to social changes - by innovation within healthier lifestyle foods.
Its move into hot baguettes and healthier snacks (fruit) has supported its
new positioning.
5. Use of CRM, database marketing to more accurately market to its
consumer target groups. It could identify likely customers (based on
modeling and profiles of shoppers) and prevent brand
Switching.
6. Strengthen its value proposition and offering, to encourage customers who
visit coffee shops Into McDonalds.
7. The new “formats”, McCafe, having Wi-Fi internet links should help in
attracting segments. Also installing children’s play-parks and its focus on
educating consumers about health, fitness.
8. International expansion into emerging markets of China and India.
9. Diversification and acquisition of other quick-service restaurants.
10. Growth of the fast-food industry.
11. Worldwide deregulation.
12. Low cost menu that will attract the customers.

12
Threats

1. Health professionals and consumer activists accuse McDonald's of

contributing to the country’s health issue of high cholesterol, heart attacks,
diabetes, and obesity.
2. The relationship between corporate level McDonald's and its franchise
dealers.
3. McDonald’s competitors threatened market share of the company both
internationally and domestically.
4. Anti-American sentiments.
5. Global recession and fluctuating foreign currencies.

Five Forces Analysis

Strength of Suppliers

Power of suppliers within the fast food industry would be relatively small,
unless the main ingredient of the product is not readily available.

Hindustan Unilever Limited

Hindustan Unilever Limited (HUL) formerly Hindustan Lever Limited is India's
largest Fast Moving Consumer Goods company, touching the lives of two out
of three Indians with over 20 distinct categories in Home & Personal Care
Products and Foods & Beverages. These products endow the company with a
scale of combined volumes of about 4 million tones and sales of nearly Rs.
13718 crores. HUL is also one of the country's largest exporters; it has been
recognized as a Golden Super Star Trading House by the Government of
India. The mission that inspires HUL's over 15,000 employees, including over
1,300 managers, is to "add vitality to life." HUL meets every day needs for
nutrition, hygiene, and personal care with brands that help people feel good,
look good and get more out of life. It is a mission HUL shares with its parent
company, Unilever, which holds 52.10% of the equity. The rest of the
shareholding is distributed among 360,675 individual shareholders and
financial institutions. HUL's brands ‐ like Lifebuoy, Lux, Surf Excel, Rin,

13
Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close‐up, Lakme,
Brooke Bond, Kissan, Knorr‐Annapurna, Kwality Wall's – are household
names across the country and span many categories ‐ soaps, detergents,
personal products,34 tea, coffee, branded staples, ice cream and culinary
products. These products are manufactured over 40 factories across India.
The operations involve over 2,000 suppliers and associates. HUL's
distribution network comprises about 4,000 redistribution stockists, covering
6.3 million retail outlets reaching the entire urban population, and about 250
million rural consumers.

Mission

Their mission is to add vitality of life. They meet every day needs for
nutrition,hygene, and personal care with brands that help people feel good,
look good and get more out of life.

Vision

The vision of Hindustan Lever is to integrate social, economical, and

environmental considerations into its business and brands. The company
also aims to focus on climate change, water, packaging and sustainable
agricultural resources as our key sustainability themes. The company also
focuses on making global partnerships on nutrition and hygiene issues.

BUSINESS MODEL

14
 HUL

Home and personal care Food and beverages Export and others

Soap and detergent beverages Exports

Fabric wash
Processed food HPC

House hold care

product Ice cream food

Personal wash
Specialty(non FMCG)

Personal produt
purit

hair

skin

Tooth paste

Color cosmetic and

deodrants

15