Athika Ali

1211

Maldives Business School

Cover Page
ASSIGNMENT BRIEF

BTEC HND/Associate Degree in Business (Management/HR/Marketing)

The student must fill the relevant parts of the following table.
Student
First Student
Last Student Task Date
Name
Name
ID
No.
submitted
Athika

Ali

Date issued
14
February
20/04/2016 2016

1211
2
Statement of authenticity
I, the above named student, hereby confirm that this assignment is my own work and not copied or
plagiarized. It has not previously been submitted as part of any assessment. All the sources, from
which information has been obtained for this assignment, have been referenced in the Harvard
format. I further confirm that I have read and understood the Maldives Business School rules and
regulations about plagiarism and copying and agree to be bound by them.

Assignment summary information

Unit 7: Business Strategy
Unit
Assignment reference
1
Assignment type This is an individual assignment.
Task
Submit on
Do on
Task 1: Presentation: Strategic Business Review of Selected
organization.
10th Apr. 2016
14th Apr. 2016
Task 2: Report based on Case Study of Bevanto Beverages
Ltd.
20th Apr. 2016
NA
An extension must be applied for in writing by individual students and will
Extensions
only be granted for valid reasons.
Late submissions Late submissions will be marked for all grades but will incur a fine of MVR 500.
Assessor(s):
Dr. Kirubakaran Jayaprakasam
Internal verifier: Adam Umar
Assessor(s) please fill the table below AFTER the evaluation.
Assessment Feedback
criteria
P1.1
P1.2
P1.3
P2.1
P2.2
P2.3
P2.4
P3.1
P3.2
P4.1
P4.2
P4.3
M1
M2
M3
D1
D2
D3
Assessor(s)
Sign

Assessors
Decision

Date

IV
Comments

__/__/___

Athika Ali

1211

Athika Ali

1211

EXECUTIIVE SUMMARY
This report is based on strategic analysis of Maldives market for Bevanto Beverages Limited, a fruit drink
manufacturer, where mango flavor is the primary focus of the organization and one of the most popular
flavors for juice drinks in India, wanting to launch their brans in Maldives.

Athika Ali

1211

TABLE OF CONTENTS

1. Executive Summary ......................................................................................................................... 3

2. Introduction ...................................................................................................................................... 5
3. The appropriateness of alternative strategies relating to market entry, substantive growth, limited
growth or retrenchment for a given organization. (P3.1) .................................................................... 6
4. The selection of a strategy. (P3.2)..................................................................................................... 7
5. The roles and responsibilities of personnel who are charged with strategy implementation. (P4.1) ... 8
6. The estimated resource requirements for implementing a new strategy for a given organization.
(P4.2) ................................................................................................................................................ 9
7. The contribution of SMART targets to the achievement of strategy implementation in a given
organization. (P4.3) ........................................................................................................................... 9
8. Conclusion ..................................................................................................................................... 10
9. References .................................................................................................................................... 11

Athika Ali

1211

INTRODUCTION
This report is based after studying the case study on Bevanto Beverages Limited provided by the Lecturer,
giving details about the alternative strategies relating to market entry, substantive growth, limited growth or
retrenchment for a given organization.
As they want to launch their brands in Maldives, the purpose of this report is to evaluate the roles and
responsibilities of personnel who are charged with strategy implementation.
Also, the estimated resource requirements for implementing a new strategy for a given organization are
also explained and the contribution of SMART targets to the achievement of strategy implementation is
evaluated.

Athika Ali

1211

THE APPROPRIATENESS OF ALTERNATIVE STRATEGIES RELATING TO MARKET ENTRY,

SUBSTANTIVE GROWTH, LIMITED GROWTH OR RETRENCHMENT FOR A GIVEN ORGANIZATION
(P3.1)
Market Entry Strategies

Organic Growth - the course of business expansion by increased output, customer base
expansion, or new product development.

M&A (Merger & Acquisition) - Merger is the combination of two previously separate organizations,
typically as more or less equal partners (Johnson et al, 2011). The acquisition involves one firm
taking over the ownership of another (Johnson et al, 2011).

Strategic Alliances - procedure where two or more businesses acquiesce upon kind of main
objectives and share each others assets to fulfill those objectives. This approach is enthusiastically
an idea that resides between the idea of organic development and connecting or acquisition.

Licensing - the design through that a mother enterprise (licensor) sanctions another enterprise
(licensee) to use its trademark and deal the merchandise or services on the groundwork of
affirmations on many time spans, where the time span adopts the authorizing ascribe that yearns to
be paid to the licensor.

Franchising - "Franchising is a business plan for getting and keeping customers" (Term Paper
Ware House, 2012). It is a marketing procedure for building an image in the minds of customers
about how the company's products and services can facilitate them. It is a technique for repartition
products and services that fulfill customer needs. McDonalds is an excellent example of a
franchising selection for extends in global markets.

Substantive Growth Strategies

Horizontal Integration - It arises when "a company acquires or merges with a competitor"
(Thompson, J. L, 2009) or minimum another company operating at the same period in the added
value chain. The two organizations might well appeal to diverse market sections instead than
compete directly, apprehensive with matters of critical mass.

Vertical Integration - occurs when an organization becomes its own supplier or distributor"
(Harrison, 2005), meaning linking with another company in the same supply chain. Back vertical
integration secures resources at a lower price than competitors, whereas forward vertical integration
secure customers or outlets and guarantee product preference and it can give a firm better control
above its marketing attempt.

Related Diversification - When an enterprise elaborates its enterprise with some diversification
interior the house line of merchandise (Isen, Alice M., 2012), implying they stay in a market or
industry with which they are familiar with. Eg: A biscuit manufacturer diversifying into cake
manufacture.

Unrelated Diversification - the method once an enterprise new workers into diversification by
inserting new merchandise and services that dont accept as factual the house merchandise (Isen,
Alice M., 2012), where they have no former industry or market experience. Eg: A food company
investing in the rail business.

Athika Ali

1211

Limited Growth Strategies

Market Penetration - an organization marketing their existing products to their existing customers,
increasing revenue by promoting the product, repositioning or changing the brand. However, the
product is not changed and they do not look for any new customers.

Market Development - marketing an existing product in a new market, meaning that the product
stays the same, but it is marketed to a new customer. Conversely, the key issues are: adjustment to
boost attractiveness to new section or niches, innovative uses for a product or service and
appropriate for different countries with precise manner or requirements.

Product Development - an organization expanding and planning new product to substitute existing
ones, and then, these products are marketed to their existing customers.

Innovation - the replacement of existing products with ones which are actually new, as contrary to
correction and which imply a new product lifecycle.

Retrenchment Strategies
To cut down or reduce something is known as Retrenchment, usually all organizations aim to grow their
businesses but not all of them succeed while many are forced to decrease the scale and area of their
business activities as an intentional act of strategy.

Liquidation - When an organization is closed or bankrupted, its assets rectangle measure noted
and furthermore the improvement buys creditors while any leftovers are circulated among
shareholders. Liquidating an organization is the last stage for the organizations survival.

Divestment - "It is the selling off part of a firm's operations or pulling out of certain product market
areas" (Thompson, J. L, 2009). It is a part of business habitually followed by an acquisition.
Divestment often occurs, when a company needs to amplify money swiftly or when business is seen
as having a poor strategic fit with the rest of the portfolio. There are setbacks with this strategy such
as cost, unemployment payments, morale and politics - government.

THE SELECTION OF A STRATEGY (P3.2)

Bevanto Beverages Limited can follow Market Development strategy under Limited Growth Strategies, as it
is very useful for considering different options for growth, and suggests whether it is better to find new
customers for existing products. Presently, they also have a wide distribution network including 73
consignee agents and 654 distributors spreading across 24 states in India to whom they sell directly.
Also, to build brand awareness and market share growth, they can undertake various marketing initiatives
such as direct promotional initiatives. As Bevanto Beverages believe their ability to understand consumer
preferences and focus on initiatives to develop product attributes that are most valued by consumers as
one of their key strengths, this can be an added advantage to launch their brands in the Maldives market.
Furthermore, by leveraging on their wide distribution network, trying to understand changing consumer
trends and preferences in terms of products types, pricing and packaging, particularly in their focus market
of semi urban and rural areas, displaying their brands will provide a primary marketing platform here in
Maldives.

Athika Ali

1211

THE ROLES AND RESPONSIBILITIES OF PERSONNEL WHO ARE CHARGED WITH STRATEGY
IMPLEMENTATION (P4.1)
Sadler (2003) introduces three main roles of strategy implementation. These roles are envisioning future
strategy, aligning the organization to deliver that strategy and embodying change.
The foremost role is envisioning future strategy. This role engages with clear communication of the strategy
with internal and external party. The internal party includes the organization and the external party includes
all stakeholders. The next role is aligning the organization to deliver the strategy. Under this role, it is
expected that all people in the organization be committed to the strategy. These people should be
motivated to pursue the strategy and should be empowered to convey the change. The final role is
embodying change. The strategic implementation is vastly involved with the organizational change. Thus,
strategic leader has a major role of following strategic revolutionize process.
According to Sadler (2003) the responsibility of strategy implementation should be taken by two main
parties. These two parties can be identified as middle managers and outsiders. Middle managers are the
implementers of top managements strategic plan. The responsibilities of the top-management have three
main areas, identified as sense making of strategy, reinterpretation and adjustment of strategic responses,
and advisers to more senior management. Outsiders have added responsibilities for strategy
implementation. Especially as outsiders, consultants and other stakeholders have more responsibilities.
Consultant always facilitates to formulate the strategic for the change process. Stakeholders have
accountability as strategy implementation agents in the organization.
The success of any good organization is based on the measures that are laid out by the various
stakeholders. In commerce, business strategy is significant for the achievement of the objectives set. In a
commercial setting, the main aims normally revolve around making lots and lots of profits, growing and
expanding, and most importantly, diversifying. These goals must be achieved for business triumph in any
flourishing industry. There are numerous business strategies that can be utilized by new or old ventures in
order to compete healthily in the market.
Therefore, it is imperative that once they have been drawn and enacted, the measures are implemented
and put into the system, as all these factors are crucial for any business.

Athika Ali

1211

THE ESTIMATED RESOURCE REQUIREMENTS FOR IMPLEMENTING A NEW STRATEGY (P4.2)

The resources allocation is vital, at the implementation of the strategy. These resources requirements can
fluctuate from one organization to another and one strategy to another. It is clear that the organizational
environment and nature of resources determines the resources requirements (Coulter, 2001).
As discussed above the Bevanto Beverages should implement market development strategies to face to
the future competition of the industry. Thus, Bevanto Beverages needs three main resources for
implementing these strategies, including physical resources, people resources, and initial start-up cost.
The physical resources are consisted with production resources, finance resources and marketing
resources needed for implementing interactive strategies at Bevanto Beverages. Since, these market
development strategies mainly spotlight on the quality improvements of the Bevanto Beverages product; it
is advisable to allocate more physical resource for the quality enhancement. People resources also play a
key requirement for strategy implementation. Bevanto Beverages must develop their human resources by
implementing more learning and enlargement activities. Finally, all these strategy implementation
processes are involved with initial start-up cost and Bevanto Beverages should allocate appropriate finance
for these implementation activities.
THE CONTRIBUTION OF SMART TARGETS TO THE ACHIEVEMENT OF STRATEGY
IMPLEMENTATION (P4.3)
As Bevanto Beverages is one of the leading organizations in beverages industry, a global expansion
strategic plan is required to increase its customer base. The organization aspiring at opening a new division
in a region such as Maldives, targets and timescales for achievement of the organization to monitor the
strategy should be considered as vital.
SMART objectives for Bevanto Beverages can be as follows
Boost the brand image for Bevanto Beverages with implementation of integrated marketing
communication in next 1 year
Develop more than 100 small stores in urban areas such as Maldives within the next 1 year period
to magnify the market
However, the itemization of strategy into smaller target and timescales allows them to stepping back and
analyzing the most ideal method to use, giving them the opportunity to find out the best way to achieve
more.

Athika Ali

1211

In order to achieve the strategy implementation through SMART targets framed for Bevanto Beverages with
the timescale for implementation can be as explained below

PHASE I
Development of Action Plan - the planning stage to implement the new strategy, where the leadership
and the concerned staff are involved during this period of time.
Intent of leadership is known clearly as the new market and potential franchisee is recognized. In
this case new market is the Maldivian market and this is done by the development of vision while
research is done for the new market to see consumers feedback.
PHASE II
Goal: Allocate Resources - an analysis is completed to assign resources for the new project as this is
prepared by the project manager and his team.
At this point, the budget is finalized whilst communication routes are established. Resources such
as Human Resources, Financial Resources and Physical Resources are allotted while mandatory
technologies are identified. Bevanto Beverages impart training and provide resources to their
employees to accomplish organizational expectations and fulfill objectives as desired.
PHASE III
Goal: Finalize Plan - terms and conditions are met on both parties as the organization that have the best
terms are agreed to be the final partner for the new strategy.
In this phase, the franchisee is confirmed as both parties come to an agreement while the location is
settled. Also, the terms and conditions are well communicated amongst suitors settling the
franchisee from suitors. The time frame of this phase is most likely 6 months.
CONCLUSION
In a hastily fluctuating business environment with high competitor pressure Bevanto Beverages have to
embrace new expansion strategies. To sustain its leading market position in an already established
retailing market Bevanto Beverages need to continuously identify, select, implement and execute their
goals and objectives.
As Bevanto Beverages image and brand has fostered powerful identities, they already have resilient
approaches and a very strong brand which will support to formulate strategy and implement them
instantaneously. However, Bevanto Beverages should be more innovative in making the product plan that
would make them more popular in marketing area, locally and internationally.
In addition, Bevanto Beverages has to provide improved taste and quality of the beverages as it would be
an opportunity compared to the competitors. In order to improve the business, Bevanto Beverages need to
understand what the customers exactly want, when they want it, and in which way they want. To fulfill their
demand and to increase sales, they also need to find out about the customers purchasing habits, opinions
and preferences. Also, improving their advertising method will attract more customers increasing the
customer base.

10

Athika Ali

1211

REFERENCES

BPP Learning Media. 2010. Business essentials: business decision making. London: BPP Learning
Media.

Hannagan, T. 2001. Mastering strategic management. England: Palgrave Publications

UK Essays. November 2013. The Roles And Responsibilities For Strategy Implementation
Marketing Essay. [online]. Available from: https://www.ukessays.com/essays/marketing/the-rolesand-responsibilities-for-strategy-implementation-marketing-essay.php?cref=1 [Accessed 19 April
2016].

Johnson, G., Whittington, R., and Scholes, K. (2011) Exploring Strategy, Ninth Edition, Prentice Hall

Hunger, J. D. and Wheelen, T. L. 2010. Essentials of strategic management. 5th ed. London:
Pearson Education Limited.

11