Course: Strategic Management

1. When you are expanding your organization in a new geography, what are the kinds of
environmental assessments that is recommended?

Answer 1

Introduction

The existing tendency of industrialisation and urbanization in developing countries has a huge
impact on natural and unreal environments. Pollution sources increase with the event of cities
and cause contamination of air, water, and soil. Lack of urban environmental coming up with and
management methods has diode to higher concern for forthcoming urban growth.
Unprecedented growing rates of world human population and concrete development build
tremendous stress on native, regional, and international air and water quality. A necessity to
higher understanding of the factors that mediate the interactions between urbanization and
variations of environmental quality exists. Land use modification, urbanization, and
infrastructure developments specifically may destruct the natural environments and ar threating
the multifariousness. Tools and measures should be tailored to judge and remedy the potential
effects on multifariousness caused by human activities and developments. inside physical
coming up with, environmental impact assessment (EIA) plays necessary roles within the
prediction and assessment of biodiversity-related impacts from planned developments [3].

Concept and application

EIA is one in every of the most legislative tools recognized to scale back Associate in Nursing
evolution impact on the atmosphere. EIA may be outlined as “a method by that data regarding
the environmental effects of a project is collected, each by the developer and from different
sources, and brought into consideration by the relevant decision-making body before a call is
given on whether or not the event ought to act.”

The purpose of EIA is to ensure that the environmental effects of a proposed development are
fully considered, together with its economic or social benefits. This should be considered before
the planning application would be determined. EIA is thus an anticipatory, participatory
environmental management tool.

1 GIS Assessment Method

(A) Identifying Effective Factors in Environmental Degradation

Including climate, geology, geophysics knowledge, and a few degradation factors within the
region like its location, differing types of pollutants, land use, and ecological knowledge.
(B) Collecting and Entering Data

The collection of knowledge on the location and surroundings of the planned development is
important in EIA, as within the implementation of any planned development.

(C) Data Analysis

Organisations was gathered with scale of 1 : 50000 and mistreatment the Universal thwartwise
Mercator (UTM) system, and that they got digits with ARC GIS software package. In analyzing
steps, knowledge analysis was done by mistreatment existing operators to spot the present state
of affairs of the region, partitioning vulnerable areas, and scoping the region, that is tormented by
pollutants. For this purpose, overlay methodology and analysis of water was used.To perform
partitioning, thought of parameters were chosen then they were scored by knowledgeable
evaluators. Thereafter, classified layer zones were classified.

2 Evaluation with Quantitative Method by Using the Matrix

In every project, the impact magnitude of activities is outlined supported environmental

parameters with classifying every cluster of pollutants; as an example, it's outlined supported
technical and scientific principles for determinative impact magnitude of every cluster.

3 District of the Study Area

In this study, development designing of the commercial estate like food, chemical, ceramic
industries, thermal and sound insulation, and alternative producing industries.

4 Qualitative analysis It uses subjective judgment supported "soft" or non-quantifiable

knowledge. Qualitative analysis deals with intangible and inexact data that may be tough to
gather and live. Machines struggle to conduct analysis as intangibles can’t be outlined by
numeric values. Understanding individuals and company cultures square measure central to
analysis. Looking at an organization through the eyes of a client and understanding its
competitive advantage assists with analysis.

5 Quantitative Analysis

Quantitative analysis is exploitation knowledge from your business to work out its success. It
helps you investigate knowledge to work out what has to be modified within the company or
what's operating for the corporate. you'll be able to use measuring to create buying choices,
selling choices, and even sales choices.

6 Air Pollution Assessment

Air quality is measured with the Air Quality Index, or AQI. The AQI works variety of sort of a
measuring device that runs from zero to five hundred degrees. However, rather than showing
changes within the temperature, the AQI may be a method of showing changes within the
quantity of pollution within the air.

7 Ground water quality

Groundwater quality refers to the state of water that's placed at a lower place Earth's surface.
Groundwater will furl cracks in belowground rocks and in between soil particles. Since several
compounds will dissolve in water et al will be suspended in water, there's a possible for
contamination with virulent compounds.

Conclusion:-To predict, identify, and determine accurate analysis of positive and negative
effects of an environmental project on natural and man-made environments, it is necessary to
evaluate these points before their implementation to estimate the minimum negative
consequences in the future.

2. How would you use Porters 5-forces Model for analyzing the strength or weakness of any
organization?

Answer 2

Introduction

Porter’s five forces model is an analysis tool that uses five industry forces to determine the
intensity of competition in an industry and its profitability level.

Concept and Application

These forces verify associate business structure and therefore the level of competition in this
business. The stronger competitive forces within the business square measure the less profitable
it's. associate business with low barriers to enter, having few consumers and suppliers however
several substitute merchandise and competitors are going to be seen as terribly competitive and
therefore, not thus enticing thanks to its low gain.
It is each strategist’s job to guage company’s competitive position within the business and to
spot what strengths or weakness may be exploited to strengthen that position. The tool is
incredibly helpful in formulating firm’s strategy because it reveals however powerful every of
the 5 key forces is in a very specific business.

Threat of latest entrants. This force determines however straightforward (or not) it's to enter a
specific trade. If associate degree trade is profitable and there area unit few barriers to enter,
group action presently intensifies. once additional organizations vie for a similar market share,
profits begin to fall. it's essential for existing organizations to form high barriers to enter to
discourage new entrants.

Threat of latest entrants is high when:

1Low quantity of capital is needed to enter a market

2 Existing corporations will do very little to retaliate

3 Existing corporations don't possess patents, logos or don't have established whole reputation

4There is no government regulation

5 Customer change prices area unit low (it doesn’t value loads of cash for a firm to change to
different industries)

6 There is low client loyalty

7 Products area unit nearly identical

8 Economies of scale may be simply achieved.

Bargaining power of suppliers.

Sturdy talks power permits suppliers to sell higher priced or quality raw materials to their
patrons. This directly affects the shopping for firms’ profits as a result of it's to pay a lot of for
materials. Suppliers have sturdy talks power when:

1 There square measure few suppliers however several buyers

2Suppliers square measure giant and threaten to forward integrate

3Few substitute raw materials exist

4Suppliers hold scarce resources;

5Cost of shift raw materials is particularly high.

Bargaining power of consumers

consumers have the ability to demand cheaper price or higher product quality from business
producers once their talks power is powerful. cheaper price means that lower revenues for the
producer, whereas higher quality merchandise sometimes raise production prices. each
eventualities end in lower profits for producers. consumers exert sturdy talks power when:

1 Buying in massive quantities or management several access points to the ultimate customer

2 Only few consumers exist;

Switching prices to alternative provider area unit low

3 They threaten to backward integrate

4 There area unit several substitutes

5 Buyers area unit worth sensitive

Threat of substitutes

This force is very threatening once consumers will simply notice substitute merchandise with
engaging costs or higher quality and once consumers will switch from one product or service to a
different with very little price. as an example, to change from occasional to tea doesn’t price
something, in contrast to change from automotive to bicycle.

Rivalry among existing competitors

This force is that the major determinant on however competitive ANd profitable an trade is. In
competitive trade, corporations have to be compelled to vie sharply for a market share, which
ends in low profits. group action among competitors is intense when:

1 There are many competitors;

Exit barriers are high

2 Industry of growth is slow or negative

3 Products are not differentiated and can be easily substituted

4Competitors are of equal size

5 Low customer loyalty

There are some strengths of the organisation like:-

1Marketing
It depends not simply on promotions however additionally on rating, distribution, packaging and
repair. A strength in promoting may well be a company's distribution channels, that square
measure able to quickly get merchandise bent customers. Customers may well be happy with the
company's merchandise and its service. Indeed, an organization might need differentiated itself
from its competition by service, a particular strength.

2 Finance

Financial strengths not solely mean a corporation has done well within the past however that it
will use its scenario to vie within the future. for example, a corporation could be ready to initiate
if it's cash to speculate in analysis. Another monetary strength could be the power to borrow as
indicated by possessing a lower debt quantitative relation -- liabilities divided by web value --
than that of different firms within the same trade. different strengths would possibly embrace
margin of profit and also the come a corporation sees on investment.

3 Production or Operations

Efficiency is a crucial strength which will be measured by determinant the productivity index,
that is output divided by input. The output is that the variety of one thing being made whereas
input is what is invested with to make the merchandise units -- hours, labor or cash, for example.
different strengths a corporation would possibly possess area unit leading edge technology,
facilities set in strategically necessary areas, low waste and production capability.

4 Human Resource

Of all the resources an organization boasts, its staff area unit the foremost necessary. If an
organization has strength in human resources, it should embrace a capability to draw in and
retain the simplest candidates from the labour. an organization may additionally have a superior
educational program that lets new staff quickly conform or one that keeps developing worker
power through cross-training or leadership development. alternative strengths an organization
might need embrace depth and breadth of experience, ratio, morale and satisfaction.

5 Research and Development

Of all the resources an organization boasts, its staff area unit the foremost necessary. If an
organization has strength in human resources, it should embrace a capability to draw in and
retain the simplest candidates from the labour. an organization may additionally have a superior
educational program that lets new staff quickly conform or one that keeps developing worker
power through cross-training or leadership development. alternative strengths an organization
might need embrace depth and breadth of experience, ratio, morale and satisfaction.

There are some weakness of an organisation like:-

1 Functional Structure Coordination and communication between departments may be slower
and less accurate.

2 Product or Service-Based Structure: Company may be slow to recognize that a product should
be changed, dropped or added.

3 Customer or Geography-Based Structure: More duplication of effort and infrastructure

resulting in higher costs.

4 Business Process Team Structure: Company may need to retain functional expertise if not
sufficient within each process.

5 Power struggle between managers regarding resources., So we can say that there are number of
strengths and weaknesses of an organisation.

3. Case Study Du Pont (E.I. du Pont de Nemours & Co, of Wilmington, Delaware) was
founded as a gunpowder manufacturer early in the 1800s. Explosives dominated its
business through World War I. After the war, it began to diversify. Acquisitions and joint
ventures became more prominent during the last fifteen years. In 1981 it acquired Conoco,
a major oil company. In 1991 Du Pont joined with prescription drug company Merck &
Co. In1992, in a joint venture with Crop Genetics, Du Pont moved into the bioinsecticide
field. In 1993 it bought Imperial Chemical’s nylon business, and today it remains the
largest chemical company in the United States. Dow (The Dow Chemical Co. of Midland,
Michigan) was formed in the late 1800s. Its first product was chlorine bleach, and
numerous others soon followed. The need for chemicals during each of the world wars
resulted in Dow emerging as the second largest chemical company in the United States.
During the 1980’s Dow made several acquisitions, most notably Merrell pharmaceuticals,
Texise cleaning products, and Essex Chemical, a leading producer of automotive sealants
and adhesives. In the late 1980s, Dow joined with Eli’s Lilly and Company’s fungicide
business to create Dow Elanco, a major producer of agricultural chemicals. Thus, like Du
Point, Dow became a diversified chemical giant. For more than forty years, both Dow and
Du Pont employed a similar strategy. Both borrowed heavily and used the funds for
expansion, relying on rising demand coupled with price increases to maintain healthy levels
of profit. The huge cash flow necessitated by this strategy could sometimes lead to
problems. If the expansion was more rapid than the increase in demand, prices would have
to be cut and profits would suffer. Although that happened occasionally, it began to occur
more and more frequently by the end of the 1980s. In 1991 Du Pont decided to change its
strategy by reducing both capital spending and costs. This focused the company on getting
cash back quickly. By 1993 Du Pont was able to provide for all capital funding without any
substantial borrowing. And 1994 was even better Analysts were expecting Du Pont to raise
its dividend payments to stockholders in 1994. Du Pont also reorganized. It eliminated
nearly 14,000 employees early in 1994. Du Pont also decentralized into twenty strategic
business units (SBUs) based on products and industry, and it changed its pattern of
marketing from a technology driven approach to a market driven one. Dow, on the other
hand, remained with the traditional strategy. In 1980 it expanded basic chemicals, and the
resulting glut caused a drop in prices. As a result, earnings fell in 1992. To raise cash to
cover expansion and dividends, Dow had to sell assets – a billion dollars worth in 1993
alone. It also announced that it would focus on global competitiveness and cut back its
corporate headquarters workforce. Thanks to cutting back on spending in 1994 and a
rebound in ethylene prices, Dow was in good financial shape that year, although analysts
were not expecting Dow to be able to raise its dividend payments for several years. Dow
did, however, semi to be recognizing the need to change its strategy too. Du Pont
recognized the need to change strategy before Dow did. Given the high cost of capital, a
strategy of focusing on return on assets seemed to make more sense than one that focused
on market share.

a. Describe the two strategies used by Dow and Du Pont. What are the advantages and
disadvantages of each? Under what conditions would you use each of the two strategies?
Why? Explain your response. (5 Marks)

b. Can you envision another strategy that either of these two companies might have used?
What changes would you recommend for the future?

Answer 3

Introduction: For more than forty years, both Dow and Du Pont employed a similar strategy.
Both borrowed heavily and used the funds for expansion, relying on rising demand coupled with
price increases to maintain healthy levels of profit.

Concept and application

The huge cash flow necessitated by this strategy could sometimes lead to problems. If the
expansion was more rapid than the increase in demand, prices would have to be cut and profits
would suffer. Du Pont decided to change its strategy by reducing both capital spending and cost.
Now there are both advantages and disadvantages of both the strategies which they have applied
to get the better results:-

Advantages as per the first strategy are like:-

1 Higher prices attract better quality clients

Clients or customers World Health Organization solely need to shop for from you as a result of
you're very cheap value supplier can treat you per se. These “bottom of the barrel” purchasers
can expect the globe from you, blame all of their issues on you and leave you for a challenger in
an exceedingly heartbeat.
When you switch to premium costs and position yourself because the best at what you are doing,
you’ll attract purchasers WHO price your distinctive giving. These varieties of purchasers tend to
require responsibility for themselves and have affordable expectations regarding what’s potential
to realize from your service or your work along. they're a lot of probably to remain loyal, rather
than effort for very cheap price choice the instant it seems.

2 Your clients will value what you have to offer

When you beg to figure along with your shoppers and show that you’re willing to try and do
something to urge the sale, as well as lowering your costs, you’re showing your shoppers that
you’re a body for rent which they're au fait of the link. As a result, you’ll typically be treated like
associate worker instead of a sure skilled.

When you charge premium costs, provide specific and outlined services, associated you show an
temperament to budge on what you’re price, you may be treated as a revered authority in your
market.

3 Your clients will get better results When you charge higher prices, your clients will be more
invested in getting results.

4 You can offer better support

It gives you the freedom to spend the time making sure that every single one of your clients’
needs are addressed, their unique challenges are overcome, and they get the best possible
outcome from your work together.

Disadvantages

1 Competitors may bring out a lower-priced product, taking away your market.

2 Some sales may be lost because customers are not willing to pay the higher price.

3 Can put some potential customers off because of the high price.

Advantages as per the second strategy are:-

1 CAPEX will increase the earning capability of a priority, as an example a theater reborn in air
condition theater.

2 CAPEX can facilitate the corporate to stood within the competition within the market.
3 CAPEX can create record healthier in money terms and it attracts investors to take a position a
lot of.

4 CAPEX can create company independent, company doesn't have to relay on others as an
example if company have to be compelled to war lease significant instrumentality on regular
basis and a few time not without delay offered however own instrumentality ar offered the least
bit the days.

5 CAPEX can facilitate to urge loan or facility from bank terribly simply by mortgage of assets
created by CAPEX.

6 IN CAPEX, several organisation ar benefited from selling in properties on future basis like
building purchases and later sold-out on higher costs.

Disadvantages

1 CAPEX wants terribly clear designing and budgeting if not then it should move into vain.

2 CAPEX could end in significant interest charges if CAPEX is thru borrowed funds.

3 Because of CAPEX the income of company get disturbed to an excellent extent.

4 If designing of CAPEX is unsuccessful it'll end in sale of assets on lower costs leading to
significant losses.

5 If CAPEX is from borrowed funds then company's record won't be a healthy one.

Conclusion: We would like to use such kind of strategies according to the market and customers
of the product.

B.

1 Market share—Under this strategy, your company seeks to capture a much bigger share of your
current market with the product it already has. for instance, you'll do thus by increasing your
promoting efforts or adjusting your costs.

2 New markets—Another strategy is to search out new markets for your current merchandise. as
an example, you'll be able to expand sales to a brand new town, province or country.

3 Diversification—You may also develop new product to sell to your current market and/or to
new customers. this could lead you into a connected line of business or a completely completely
different one.

4 Acquisition—Buying another company are often a cheap thanks to increase market share,
capture new markets or diversify. This strategy offers you a longtime people and operation, that
you'll comply with add price. Acquisition is also an honest strategy if you wish to expand into a
replacement geographic location or to a different country wherever you lack contacts and native
information.

5 Buying a franchise—You can also think about exploit a franchise. Such a business typically
comes with name recognition, serious selling power and support from the franchise owner.
however take care to research all of your prices, as well as start-up fees, royalties, advertising
and provides.

6 Franchising your business—Franchising your own business is a triple-crown growth strategy,

particularly if you've got a profitable operation that may be simply replicated by others.

7 Strategic partnerships—Another common growth strategy is to pursue partnerships with

different firms. A partnership will be as straightforward as an off-the-cuff agreement between
businesses in complementary markets to refer shoppers to every different.

8 Repositioning and efficiency—Under this strategy, you target growth in your margin of profit
by position your merchandise or rising your potency.

For example, you'll analyze every of your current merchandise or services to work out their
margin of profit and alignment together with your business strategy. you'll then shed any that
square measure underperforming and/or non-strategic. as an alternative, you'll study your
operational processes to search out potency enhancements.