Strategic Management

Fall 2020; Lecture 8; 22 November

Associate Professor Nazlee Siddiqui
North South University
Agenda

 Technology industry: Managing decline and disruptive

innovation
 Global strategies
 Quiz 1 feedback
 Reading for next class’s in-class exercise
Strategies: Technology Organisations in different stages of life cycle

How should the strategies change?

 Strategies in a declining industry, P. 196
Speed of decline, exit
barriers, level of FC
 Technology industry challenges (Page, 226; Chapter
7)
 Technology paradigm shift: Shifts in new technologies that revolutionise the
structure of the industry, dramatically alter the nature of competition and require
companies to adopt new strategies to survive.
Example of Netflix’s disruptive innovation at https://www.youtube.com/watch?
v=eooIPeQDYVo

 Disruptive technology/innovation is an example of technology paradigm shift

too. Few features of disruptive technology/innovation?
 Often the product of new players than the existing firms
 Kills existing players
 Global Strategy (Chapter 8)
 Organisations having strategy to operate business globally.
 Facilitating factors for global strategy:

 Factor endowments
 Local demand conditions
 Competitiveness of supporting industries
 Intensity of rivalry in the local market
 Realising cost economies
 Realising location economies
 Having connection with global subsidiaries
Four basic strategies of globalization

Pressure for local

representativeness:
• Customer taste
• Infrastructure/traditi
onal practices
• Distribution channel
• Host Government
demand
• Regionalism
 Different entry modes with Globalisation Pg.268

 Exporting
 Licensing
How do these entry modes align
 Franchising with four basic globalisation
 Joint ventures strategies?
 Wholly Owned Subsidiaries
 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 (optional): 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

Next Class: Please read the case study of caring vision in lecture folder
9 for next in-class exercise