Strategic Management

Fall 2020; Lecture 9; 24 November

Associate Professor Nazlee Siddiqui
North South University
Agenda

 Global strategies
 Quiz 1 feedback
 Strategies for sustainability
 In-class exercise
 Different entry modes
Entry modes Degree of risk and Degree of ownership Correct? Further considerations
investment and control in foreign
country
Exporting Low Low
Licensing Low Low Limited opportunities to realise
scale/location economies and global
strategic coordination
Franchising Medium Medium
Joint ventures Medium Medium/High
Wholly owned High High
subsidiary

Choosing a global strategy in the group

project?
Feedback on the Quiz
Question 1: The concepts of competitive advantage and external
environmental analysis are not related at all. a)Yes b) No c) None of the
above. Justify your answer Positives in the answer? How to
improve the answer?

Sample Answer:
a)Yes. Because of without good internal environmental a company can
not long run in the future. and also can not successful competitive
advantage. so organization's internal environment, including the factors
that influence the organization's activity: its owners, managers and
leadership, employees, material resources, organizational culture, should
determine the capabilities/capabilities/potential of the organization. if the
internal environmental developed , day by day the company developed.
 Quiz 1 feedback: MCQ
2. Strategic leadership involves:

a) Facilitating strategy making process in the organisation (X)

b) An organisational leader motivating people through use of power
c) None of the above

Justify your answer : The main responsibility of a strategic leader to create

competitive advantage through effective management of strategy making
process. So, the strategic leadership involves facilitating strategy making
process in the organization.
Positives in the answer? How to
improve the answer?
 MCQ: Question 3
Customer centric strategy involves a)Selling products/services at
lowest price point in the market b) Being customer responsive c)All
of the above. Justify your answer
Positives in the answer? How to
improve the answer?

Sample Answer: b
If organisations are customer responsive then the organisations are
provide the right value to the customers at a price customers want
and at a profit that organisations can manage. So, being customer
responsive is an important part of customer centric strategy.
 Positives in the answer? How to
improve the answer?
MCQ: 4
 Which of the following statements is “True” for industry life cycle a) Every
product/service in the market always go through each of the five stages of
industry life cycle b) Understanding the industry life cycle helps in appropriate
assessment of competitive advantage c) All of the above. Justify your answer
 Sample answer: c) All of the above.
Strategic planning process is important to an organization because it provides a
sense of direction and outlines measurable goals. Strategic planning is a tool that
is useful for guiding day-to-day decisions and also for evaluating progress and
changing approaches when moving forward. and another thing is The structure of
the industry life cycle affects the rules of competition, and thus the necessary
strategy for survival and development. Changes in industrial structure, demand
and technology requirements through the industry life cycle have important
implications for sources of competitive advantage in every phase.
 Positives in the answer? How to
improve the answer?
MCQ: 5
Which of the following statements is “True” for strategic management in
an organisation a) A strategy in an organisation can be very effective if it is
built on internal strengths that facilitate best the opportunities in the
external environment b) An organisation’s external factors, that is,
opportunity and threat, and the internal factors, that is, strength and
weaknesses can be interrelated. c) All of the above. Justify your answer. *

Sample Answer:
An organisation’s external factors, that is, opportunity and threat, and the
internal factors, that is, strength and weaknesses can be interrelated. if
the company identifies their weekness and work on it they can turn them
into opportunity. they have to find the threat and turn into strength.
Short Answer
Assume you are a management consultant to an organisation
that operates in Bangladesh. The organisation is currently
holding the second position (in terms of market share) in the
market and has a goal to become the market leader in 2 years’
time. In this scenario, please answer the following questions by
choosing two real life organisations of your choice.
 Short Answer

a) Introduce the chosen two organisations, outlining the two organisation’s major
categories of products/services. (Word count: 30; Marks:1)
My two chosen company is "Food panada" and "SHOZ FOOD“. For organisations
 

food panda is a service based company and shoz food is also service based
company. Major service is to deliver food.

Positives in the answer? How to improve the answer?

 Short Answer
 b) Applying the concept of Porter’s forces, explain one opportunity and
threat that are common to both organisations and should be relevant to
arrive at a strategy in this situation (Word Count : 80-100)

For two company one opportunity is two became a market leadr advantage.
Whice one is the market leader is taking the advantage of market leader it is
very much advantage for the company
For two company one threats is competitive market. Its very competitive for
the organisations where two company is getting to the market Leader. For the
market leader is very important to maintain the competitive strategy for placing
the organization.
Positives in the answer? How to improve the answer?
 Short Answer Positives in the answer? How to improve the answer?

c) Applying the of Porter’s value chain, explain any two critical strength that your
organisation (the organisation holding 2nd position in the market) has or could have over
the competitor enjoying the first position in the market. These strengths should be
identified from any two value creation functions of Infrastructure/leadership, Production,
Marketing, Materials Management, Research & development, Information Systems and
Human resources. (Word Count: 100-120; Marks: 4)

Sample Answer: As our organisations holding the 2nd position of the market so we have
many critical strength. Hwere i discussed abut two critical strength.
For my organisation one strength is marketing for marking we use various market plan for
our organisations. That is very critical strength to take our origination in the market leadr.
We use social media platform for our marketing and It's very useful for us.
 Strategy for Business Sustainability
 An organisation’s attempts to not only focus on profitability but to
efficiently and effectively manage and integrate its environmental,
social and broader economic impact (Lüdeke-Freund, 2009; Padin et
al., 2019.)

 Business Sustainability is drawn from the concept of Triple Bottom

Aim
 Triple Bottom Line

Sustainable Value:

Founders of TBL: Freer • Planet/Environmental Value

Spreckley; John People from strategies of efficient
Elkington
use of planet resources

• People/Social Value from

Planet Profit strategies of well-being of
employees, community
development

• Profit/Economic value from

financial profitability of the
https://hbr.org/2018/06/25-years-ago-i-coined-the-phrase-triple-bottom-line-h business
eres-why-im-giving-up-on-it
 Strategy and Business Sustainability
 United Nations sustainability goals:
1.No poverty 2. No hunger 3. Good health and well-being 4. Quality education
5. Gender equality 6. Clean water and sanitation 7. Affordable and clean energy
8. Descent work and economic growth 9. Industry innovation and infrastructure
10. Reduce in equalities 11. Sustainable cities and communities
12. Responsible production and consumption 13. Climate action
14. Life below water 15. Life on land 16. Peace, justice and strong institutions
17. Partnership for the goals

Source: https://www.youtube.com/watch?v=pgNLonYOc9s;
https://www.youtube.com/watch?v=M-iJM02m_Hg
 Phases in Business Sustainability (BS)
True Business Sustainability:
https://www.youtube.com/watch?v=AEFqUh4PMmI
Ferro and Padin (2019)
1. Nonconformity: This is a stage where the company is not involved inany BS-
related activities;
2. Conformity: This is a stage where the company abides to basic legislative
standards as a result of external forces;
3. Beyond conformity: This is a stage where a company realizes the benefit of BS as
far as it realizes higher return than inputs;
4. Complete integration: This is a stage where BS is incorporated in the regular time-
plan of activities
5. Sustainable company: This is the last stage, referring to a situation where the
company comes into being as a sustainable company
 Case Study on Caring Vision

Can you note the TBL elements in this organisation?

As a group write down the explanation of any one of the TBL elements. The word
count should be around 100 words. Need to put Name of all the present members and
the subject should be “In-class exercise dated 24 November”