Assignment

on
Strategic Management In Different Context
Subject: Corporate Strategy

Course Code: MGT-411

Submitted To:
Md. Imran Ahmed
Lecturer
Department of Business Administration
Global University Bangladesh

Submitted By:
Name:Md Soriful Islam

IDNo: 221-003-002

Dept: Business Administration

Program: EMBA

Global University Bangladesh (GUB), Barishal

Submission Date: 24/06/2022

Small Business
A business which functions on a small scale level involves less capital investment, less number of labour
and fewer machines to operate is known as a small business.
Small scale Industries or small business are the type of industries that produces goods and services on a
small scale. These industries play an important role in the economic development of a country. The owner
invests once on machinery, industries, and plants, or take is a lease or hire purchase. These industries do
not invest more than one crore. Few examples of small-scale industries are paper, toothpick, pen,
bakeries, candles, local chocolate, etc., industries and are mostly settled in an urban area as a separate
unit.

Characteristics of Small Scale Industries

 Ownership: They have a single owner. So it is also known as a sole proprietorship.
 Management: All the management works are controlled by the owner.
 Limited Reach: They have restricted area of operation. So they may be a local shop or an industry
located in one area.
 Labor Intensive: Their dependency on technology is very little because they are dependent on
labours and manpower.
 Flexibility: Because they are small, they are open and flexible to sudden changes, unlike large
industries.
 Resources: They utilize local and immediately available resources. They do better utilization of
natural resources and limited wastage.

Categories of Small Business

On the basis of capital invested, small business units can be divided into the following categories:
(1) Small Scale Industry (Before 2006)

 They invest in fixed assets of machinery and plant, which does not surpass than one crore.
 For export improvement and modernization, expenditure ceiling in machinery and plant is five crores.
 Example: Water Bottols, Small Toy, Chocolates.

(2) Export Oriented Units

 This industry can possess the status of an export-oriented unit if it exports exceeds 50 per cent of its
manufactures.
 It can opt for the compensations like export bonuses and other grants awarded by the government for
exporting units.
 Example:Seafood Export, Leather goods export.
(3) Tiny Industrial Units

 It is an Industrial or a company whose expenditure on machinery and plant does not exceed Rs. 25
lakhs.
 Example : Photocopy Centre, Boutiques, Small Shop
(4) Small Scale Service and Business

 It is a fixed asset investment on machinery and plant excluding land and building should not surplus
Rs. 10 lakhs
 Example: Saloon , Parlor
(5) Micro Business Enterprises

 It is a tiny and small business sector.

 The investment in machinery and plant should not exceed Rs.1 lakh.
 Street Vendor, Sweet Vendor, Shoemaker.
(6) Village Industries


 The industries which are located in rural areas and manufacture any product performs any
service with or without the utilization of power is called village industries.
They have fixed investments on capital as per head, workers, and artisan, which does not exceed Rs.50, 000.
Example: Tea Stall, Bamboo Basket Business,
(9) Cottage Industries

 It is also known traditional or rural industries.

 These industries are not covered by the capital investment criterion.
Cottage industries are characterized by the following features :

1. These are organized by a single, with private resources.

2. Use family labour and local talent.
3. Simple instruments are used.
4. Small capital investment is involved.
5. Simple products are made.
6. Indigenous technology is utilised.
Multinational Corporation (MNC)
A company that operates in its home country, as well as in other countries around the world

What is a Multinational Corporation (MNC)?

A multinational corporation (MNC) is a company that operates in its home country, as well as in other
countries around the world. It maintains a central office located in one country, which coordinates the
management of all its other offices, such as administrative branches or factories.

It isn’t enough to call a company that exports its products to more than one country a multinational
company. They need to maintain actual business operations in other countries and must make a  foreign
direct investment there.

Example: H&M, BAT,Nestle, Arla.GSK

Characteristics of a Multinational Corporation

The following are the common characteristics of multinational corporations:

1. Very high assets and turnover

To become a multinational corporation, the business must be large and must own a huge amount of assets,
both physical and financial. The company’s targets are high, and they are able to generate substantial
profits.

2. Network of branches

Multinational companies maintain production and marketing operations in different countries. In each
country, the business may oversee multiple offices that function through several branches
and subsidiaries.

3. Control

In relation to the previous point, the management of offices in other countries is controlled by one head
office located in the home country. Therefore, the source of command is found in the home country.

4. Continued growth

Multinational corporations keep growing. Even as they operate in other countries, they strive to grow
their economic size by constantly upgrading and by conducting mergers and acquisitions.

5. Sophisticated technology
When a company goes global, they need to make sure that their investment will grow substantially. In
order to achieve substantial growth, they need to make use of capital-intensive technology, especially in
their production and marketing activities.

6. Right skills

Multinational companies aim to employ only the best managers, those who are capable of handling large
amounts of funds, using advanced technology, managing workers, and running a huge business entity.

7. Forceful marketing and advertising

One of the most effective survival strategies of multinational corporations is spending a great deal of
money on marketing and advertising. This is how they are able to sell every product or brand they make.

8. Good quality products

Because they use capital-intensive technology, they are able to produce top-of-the-line products.

Reasons for Being a Multinational Corporation

There are various reasons why companies want to become multinational corporations. Here are some of
the most common motivations:

1. Access to lower production costs

Setting up production in other countries, especially in developing economies, usually translates to

spending significantly less on production costs. Though outsourcing is a way of achieving the objective,
setting up manufacturing plants in other countries may be even more cost-efficient.

Due to their large size, MNCs can take advantage of economies of scale and grow their global brand. The
growth is done through strategic manufacturing/service placement, which allows the corporation to take
advantage of undervalued services across the globe, more efficient and inexpensive supply chains, and
advanced technological/R&D capacity.

2. Proximity to target international markets

It is beneficial to set up business in countries where the target consumer market of a company is located.
Doing so helps reduce transport costs and gives multinational corporations easier access to consumer
feedback and information, as well as to consumer intelligence.

International brand recognition makes the transition from different countries and their respective markets
easier and decreases per capita marketing costs as the same brand vision can be applied worldwide.

3. Access to a larger talent pool

Multinational corporations are also known to hire only the best talent from around the world, which
allows management to provide the best technical knowledge and innovative thinking to their product or
service.
4. Avoidance of tariffs

When a company produces or manufactures its products in another country where they also sell their
products, they are exempt from import quotas and tariffs.

Models of MNCs

The following are the different models of multinational corporations:

1. Centralized

In the centralized model, companies put up an executive headquarters in their home country and then
build various manufacturing plants and production facilities in other countries. Its most important
advantage is being able to avoid tariffs and import quotas and take advantage of lower production costs.

2. Regional

The regionalized model states that a company keeps its headquarters in one country that supervises a
collection of offices that are located in other countries. Unlike the centralized model, the regionalized
model includes subsidiaries and affiliates that all report to the headquarters.

3. Multinational

In the multinational model, a parent company operates in the home country and puts up subsidiaries in
different countries. The difference is that the subsidiaries and affiliates are more independent in their
operations.

Advantages of Being a Multinational Corporation

There are many benefits of being a multinational corporation including:

1. Efficiency

In terms of efficiency, multinational companies are able to reach their target markets more easily because
they manufacture in the countries where the target markets are. Also, they can easily access raw materials
and cheaper labor costs.

2. Development

In terms of development, multinational corporations pay better than domestic companies, making them
more attractive to the local labor force. They are usually favored by the local government because of the
substantial amount of local taxes they pay, which helps boost the country’s economy.

3. Employment

In terms of employment, multinational corporations hire local workers who know the culture of their
place and are thus able to give helpful insider feedback on what the locals want.
4. Innovation

As multinational corporations employ both locals and foreign workers, they are able to come up with
products that are more creative and innovative.

Foreign Direct Investment

Foreign direct investments are prevalent within multinational corporations. The investments occur when
an investor or company from one country makes an investment outside the country of operation.

Foreign investments most often occur when a foreign business is established or bought outright. It can be
distinguished from the purchase of an international portfolio that only contains equities of the company,
rather than purchasing more direct control.
Global Company
Global business generally refers to international trade. A company which is doing business all over the world,
that business are called global enterprises. Earlier also there was the exchange of goods over great distances.
Such trade, of course, was not by definition global but had the same characteristic

Global Company are the companies that operate around the world. There are categories based on their huge
size, a large number of products, advance in technology, marketing, strategy and network of operations all
over the world.

Through a network of their branches in several countries, global enterprises extend their industrial and
marketing operations. Their vision to work across many global frontiers to earn in international currencies of
many countries. These organizations have books of accounts of various countries, which at the end of
financial year of respective countries being consolidated together, according to its usage.

Browse more Topics under Private Public And Global Companys

 Types of Companies and Forms of Organising Public Sector

 Departmental Undertakings

 Statutory Corporations

 Government Company

 Changing Role of Public Sector

 Joint Ventures

Global Business Services

Instead of operating numerous shared service centres and managing outsourcing vendors independently, they
are:

 implementing global business services,

 providing integration of governance, locations and business practices to all shared services and,

 outsourcing activities across the enterprises.

Example: A global enterprise is one which owns and manages the functions in two or more countries.
for example- Unilever Ltd, Coca-Cola, Samsung etc.
Service Organizations
An organization providing intangible services rather than tangible goods is termed as Service
organization. In the standard industrial classification, service organizations include hotels, restaurants and
other lodging and eating establishments, barber shops, beauty parlors and other personal services, repair
services, motion picture, television and other amusement and recreational services, legal services and
accounting, engineering, research/development, architecture and other professional organization.  Service
organizations also includes educational organizations, banks, insurance companies and other financial
institutions. Also government agencies and most other non-profit organizations are service organizations.

Characteristics of Service Organizations

Quantity Measurement: It is easy to keep track of the quantity of tangible goods, both during the
production process and when the goods are sold, but it is not easy to measure the quantity of many
services. We can measure the number of patients that a physician treats in a day, for example, and even
classify these visits by type of complaint, but this is by no means equivalent to measuring the amount of
service that the physician provides to each of these patients. For many services the amount rendered can
be measured only in a crude terms, if at all.

Absence of inventory: Goods can be held in inventory and this inventory is a buffer that dampens the
impact on production activity of fluctuations in sales volume. Services cannot be stored. If the services
available today are not sold, the revenue from these services is lost forever. Resources available for sale
in many service organizations are essentially fixed. In the short run, a hotel can’t increase the number of
rooms that it offers for rent and it does not reduce costs substantially by closing down some of its rooms.
These facts cause a great stress to be placed on planning for an amount of available services that is not in
excess of what can be sold currently and on marketing efforts to sell these resources each day. The loss
from unsold services is such an important factor that it normally is a key variable in service organizations
of all types

Quality Measurement: The quality of tangible goods can be inspected, and in most cases the inspection
can be performed before goods are released to the customer. If the goods are defective there is physical
evidence of the nature of the defect. The quality of a service can’t be inspected in advance at best it can be
inspected during the time that the service is being rendered to the clients. Judgments as to the adequacy of
the quality of the most services are subjective measuring instruments and objective quality standards do
not exist. An accounting firm can measure the number of hours spent on an audit, but not the
thoroughness of the work done during those hours. A consulting firm has no objective way of appraising
the soundness of its recommendations.

Example : Bank, Repair Service, CA Firm, Audit Firm ETC

Voluntary or non-profit organization
A nonprofit organization (NPO) is one that is not driven by profit but by dedication to a given
cause that is the target of all income beyond what it takes to run the organization. Because of
this, NPOs receive tax-exempt status from the federal government, meaning they don't have to
pay income tax. Nonprofit organizations are organized for a public or mutual benefit other than
generating profit for owners or investors They can take a variety of forms from informal neighborhood
associations, soup kitchens, local churches or traditional charities serving the poor to labor unions, self-
help groups or museums, hospitals and large universities. Though may be different in size and form,
nonprofit organizations share five common characteristics: 1. they are organized, 2. private (separate from
the government) 3. self-governing, 4. non-profit-distributing and 5. voluntary. The non-profit distributing
characteristic means that – contrary to the common belief – nonprofits can generate profit but they cannot
distribute it to owners or directors. The profit must all be used to support the operation of the organization

Characteristics
1. Organized activity
2. Private, independent organizations, not extensions of government
3. Voluntary in participation; free from coerced or mandated participation
4. Self-governing. They govern themselves and are not directly controlled by government.
5. Not profit distributing. Excess revenue is directed to mission not to individuals or
owners.
6. Of public benefit. They provide a public good or contribute to the general welfa

Example: 1.BRAC 2.Dhaka Ahsania Mission 3.Bangabandhu Memorial Trust 4.Narail

Express Foundation 5.Bangladesh Administrative Service Association
Professional Service Organization
Professional services are nonphysical products or services that individuals or companies provide
to customers to help them manage or improve a specific area of their businesses. For example, an
acting coach offering lessons to actors could be a professional service. An individual offering
professional services may have expertise in a niche area, like digital marketing, and provide
services to a business to improve their digital marketing efforts. This type of professional service
may be freelance, contract or private practice work.
Companies or firms can also provide professional services to customers. For example, a
marketing agency might provide services to help a business expand its brand awareness or
engagement. Both individual and company-provided professional services may charge billable
hours or fixed rates.

Characteristics

1. People-based
Suffice to say, if it were not already obvious to you, that professional services businesses are
fundamentally about people. They need to be managed to attract, develop and retain the best
staff, and associates, you can find in the market. Growing a professional service business also
involves an understanding of the concept of a ‘leverage structure’ (ratio of junior to senior staff)
and how this directly relates to your firm’s profitability.

2. Management Quality
Closely linked to the first point, the aspect of management quality is magnified in the
professional services business. Professionals – by their nature educated, intelligent self-starters –
will not hang around for long if the leaders are sub-standard. Similarly, this aspect will be
scrutinised by any potential acquirer. It is not just, however, about the qualities of the people in
the top roles. In future extracts you will learn how your embedded practices, organisation and
toolsets all impact on your firm’s management quality.

3. The Marketing Challenge

Whilst a professional service might, at one level, seem an easy proposition to message to those
who have the requisite need (e.g. ‘We build websites’, ‘we can audit your annual accounts’, ‘we
design buildings’ etc), at another, competitive level you will have a significant challenge. How
do you organise your service offerings? How do you differentiate from your competitors? How
do you communicate the benefits of your service approach and style or the type of people you
employ? This is a very different challenge to that faced by a product based marketer. ‘Cracking
the marketing nut’ will be key to growing value in your firm – as you will get to learn later on.

4. The Selling Challenge

Similarly, selling professional services is very different to retail selling or productised business-
to-business (B2B) as, for example, with software licensing. A key feature of this difference is a
fundamental one that – in the main – those that provide the service are best placed/able to sell it.
Unlike in other businesses that employ generic salespeople (and then give them training in the
product), in a professional service business, the challenge is rather to train your doers
(consultants, engineers, designers etc) to be able to sell also. Indeed, the most critical, value-
determining challenge you are likely to face is that of turning this capability from an esoteric
skill undertaken by a select few to a systematic, shared one. Only then will your business truly
have value. I examine this aspect in some detail in Guide 08.

5. Pricing
The pricing of professional services is also a science (and art) of its own. Similar to any business,
multiple factors will influence the pricing strategy – market need, competition, service model,
the brand premium you command etc. What is unique is that there tends to be a lot more
flexibility available to the professional services firm in this regard; each tender competition
essentially presents an opportunity to renew your pricing strategy/model/rate. You will have the
choice of fixed price, outcome-based risk-reward or the conventional time and materials model.
How much do you discount to win a new client or to keep utilisation levels high? Unlike unsold
stock, an un-billed hour can never be recovered. There are a number of unique dynamics at play
here that we will need to explore later.

Example

Examples of professional services

Here are some examples of professional services across multiple career fields:

Computer science
Some professional services in computer science are:

Information technology (IT) support: IT support specialists may troubleshoot technology

issues, install or uninstall software and perform routine technology updates. They may also assist
with coding or improve technology to benefit operations.

Cybersecurity management: Cybersecurity professionals may help manage the protection of a

company's online data and information. They can provide expertise for cloud security or security
vulnerability management and address security breaches or incidents within a company.

Web development and design: Web developers and designers may provide help with the
development of a company's web presence, including websites and interactive online
experiences. Developers may focus more on coding and back-end structure, while designers
focus more on the visual appeal of websites.

Software development: Software developers design and test programs, engineer technical

solutions and maintain applications. Companies can use software developers to create innovative
technology solutions that provide positive user experiences.
User experience (UX) development: UX developers plan the production and features of
products or services by examining the user's needs. Personalized experiences may help
companies stay competitive in their market and persuade customers to return.
User interaction (UI) development: UI developers build and maintain interactive product or
service experiences. Companies may use interactivity to engage existing or potential customers
in what they can offer.

Finance
Some professional services in finance are:

Financial planning and advising: Financial planners and advisors can provide options or
pathways for clients to meet their financial goals. They may also help individuals or companies
make informed financial decisions and create short-term or long-term financial plans.

Investment management: Investment managers help guide investment portfolios with

personalized needs or goals. They may also help clients develop strategies for investing and
diversifying their existing portfolios.

Accounting: Accountants may advise clients on wealth management, help them with estate or
trust planning and help them with taxes. They can specialize their advising methods depending
on the needs of the client.

Evaluation: Financial evaluators focus on identifying the financial value of items, including

different appraisals like home appraisals, business appraisals or antique appraisals.

Marketing
Some professional services in marketing are:

Brand development: Brand developers may help develop, maintain and strategize a company's
brand identity. They can provide services like logo design and development, style guide
development and brand awareness strategies.

Social media management: Social media managers can assist with social media planning,
engagement growth and promoting company information. They may also research viral trends or
industry news to help companies stay relevant online.

Copywriting: Copywriters can help companies increase their online traffic. Their expertise may
include search engine optimization (SEO) content and written advertising for products or
services.

Public relations: Public relations specialists help companies promote their brand, products or
services. They may also help organize ad placements, television promotions or interviews.
Paid advertising: Ad buyers provide companies or organizations with services to help them buy
advertisement slots that will target their consumer audiences. Advertisement targeting is useful
for companies to expand their reach and brand recognition.

Legal
Some professional legal services are:

Corporate law: Corporate lawyers provide services to corporate companies, which may include
helping with operations or the formation of corporations. They may also address potential
compliance concerns.

Intellectual property law: Intellectual property lawyers provide professional services regarding

copyright, design patents and company secrets. These lawyers help individuals maintain property
over their creations.

Environmental law: Environmental lawyers protect the environment and natural resources such
as forests, minerals or others. These environmental laws can vary from state to national levels.

Estate planning law: Estate planning lawyers manage trusts, wills and assets. Their services
may also include the creation of legal contracts or documents.

Planning and construction

Some professional services in planning and construction are:

Architecture design: Architects can design or redesign buildings and structures for specific
purposes. They may use research to develop the most cost-effective designs for clients.

Urban and regional planning: Urban and regional planners create comprehensive short-term
and long-term development plans for towns and cities. They may also conduct research within
communities to identify residents' needs.

Construction management: Construction managers oversee the daily operations of the

construction process and help ensure the development will meet completion deadlines.
Landscaping: Landscapers can provide clients with personalized green scapes in outdoor
spaces. They may design visual plans and complete them.

Mechanics: Mechanics can provide professional services for different modes of transportation

including cars, trains and aircraft. They may check for issues during routine inspections and
address potential malfunctions.

Plumbing: Plumbers provide professional services to unclog pipes, install plumbing systems and
prevent in-home flooding. They may also perform routine maintenance on pipes.

Medical and public services

Some professional medical and public services are:
Physical therapy: Physical therapists work with patients to help them regain mobility after
injuries or illnesses. They may develop in-person therapy or at-home treatment plans for patients.

Dental health: Dentists and dental hygienists provide services to help individuals maintain oral
hygiene and protect their teeth or gums. This can require oral examinations, prevention strategies
or operations.

Physical health: Physicians can make sure individuals are in good health by performing annual
examinations. They may also give patients tips for improving their health.

Therapy: Therapists provide specialized professional mental health services to address the

concerns of individual clients. They may also suggest coping tools and resources to help patients
regulate their emotions.

Speech pathology: Speech pathologists service individuals to help them overcome speaking

challenges. They can provide different strategies and exercises for patients to practice their areas
of concern.

Translating: Translators and interpreters can make communications accessible for all

individuals. Typically, a translator communicates something from one language to an
individual's native language and an interpreter translates verbal communications using sign
language for someone with hearing loss.

Emergency response: Professionals like emergency medical technicians (EMTs) provide

emergency services to help injured people. This may require them to perform first aid or
cardiopulmonary resuscitation (CPR).

Teaching: Teachers can provide professional education services to students of all ages. They
may personalize the learning process to meet the needs of individual students.

Tutoring: Tutors can provide professional learning services to help students who are struggling
to learn certain subjects. When working with students, tutors may provide them with practice
problems or a review of content.
inventory service
A service inventory is a governed and standardized collection of services that complement and synergize
with each other within a boundary, which represents the enterprise or a portion of it. Essentially, a service
inventory is a collection of internal services such as communication and process improvement services
that allow an organization to rapidly react to customer demand and offer greater quality, speed and
performance to its customers at reasonable prices. Service inventory is an integral part of the service-
oriented architecture (SOA), which is an architectural pattern in computer software design meant to
provide various services to other components of the system with the aim of improving business processes
and increasing efficiency. For example, it might take the HR and finance departments a week to process
all of the monthly salary documentation for all of the employees of the company including overtime,
travel and activity reimbursements, deductions, tax, etc. But with the implementation of a service
inventory that includes software or services geared toward automating and improving the process of the
activities being done by HR and finance, the task could be minimized from a whole week to just two days

Depending on the type of organization, on the type of products or services it offers to customers and on
how it actually applies SOA, the various service inventories being implemented across the organization
would vary. For example, the service inventory in a manufacturing company would be entirely different
from the service inventory that an insurance firm would implement.

Characteristics
Services are unique and four characteristics separate them from goods, namely 
1.Intangibility
2.Variability
3.inseparability,
4.perishability.

Example
 Airline. A seat on a flight is an inventory item from an airline revenue management
perspective. ...
 Hotel. A night in a hotel room can be viewed as service inventory. ...
 Restaurant. A table in a restaurant is inventory. ...
 Cloud Computing. ...
 Advertising. ...
 Healthcare. ...