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Assignment on

Chapter: Nine
Strategy at the Corporate Level

Course Title: Strategic Management


Course Code: MGT 5199

Prepared For
Md. Asraf Harun

Prepared By
Al Tarak Mahmud Tanim
ID: 2018210005024

28th Batch

Date: 14 May, 2020


Q1. Corporate-Level Strategy Airtel Bangladesh.
Answer: Airtel Bangladesh follow the Horizontal Integration method in the
Corporate Level Strategies.
Horizontal integration is the acquisition of a business operating at the same
level of the value chain in a similar or different industry. This is in contrast to
vertical integration, where firms expand into upstream or downstream
activities, which are at different stages of production.
Before merging with Robi Axiata, Airtel was in the lower position in the mobile
industry of Bangladesh. After merging with Robi, Robi-Airtel becomes the
second largest mobile operator in Bangladesh. So, this is Horizontal Integration
for Airtel Bangladesh.

Q2. Bangladesh purchases refinery oil?


Answer: Bangladesh will import some 1.4 million tons of crude petroleum oil
from Saudi Arabia and Abu Dhabi in the year of 2020. The BPC will import the
entire bulk crude oil to refine it in its Eastern Refinery Limited (ERL) for
supplying to the local market. In this case Bangladesh follows Taper Integration
method on the Vertical Integration process.

Q3. Forward and Backward Integration: The Smartphone


Industry?
Answer: When a Chinese Smartphone manufacturer opens a unit of which
manufactures mobile chipset and supplies to the smartphone unit. Thus in
earlier cases, the Smartphone Company had to purchase chipset from any other
chipset manufacturing company and the manufacturing costs bear a specific
part of the profit which was being enjoyed by the chipset manufacturer. Thus
after in-house chipset manufacturing, the profit remains with the smart-phone
manufacturer. In the case of forwarding integration, we can take an example of
Indian Company Avanti Feeds, which cultivates Shrimp-feeds used for the
feeding of processed shrimps. Now after running the shrimp feeding business
successfully, the company has decided to enter into processed shrimp business.
Thus process-shrimp business turned out to be very profitable and it
contributed to the margin healthily along with the increase in Revenue.

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