SUBJECT ; EMERGING THEMES ; QUESTIONS AND KEY ANSWERS AND CASE STUDIES: (Elaborate 10

marks questions) Kindly try to give atleast one illustration for 10 marks questions and one
small illustration for 5 marks. (Books for reference - Exploring Straty and Contemporary issues in
Marketing and Consumer Behavior
5 MARKS QUESTIONS :
1) What is Exploring strategy through different ‘strategy lenses’

Exploring means looking for new and different things. Exploring strategy involves searching
for new angles on strategic problems. A comprehensive assessment of an organisation’s
strategy needs more than one perspective. The strategy lenses are ways of looking at
strategy issues differently in order to generate additional insights. Different perspectives will
help to criticise prevailing approaches and raise new issues or solutions. Thus, although
drawn from academic theory, the lenses should also be highly practical in the job of doing
strategy.
The four strategy lenses:
● Strategy as design views strategy development as ‘designed’ in the abstract, as an architect

might design a building using pens, rulers and paper.

● Strategy as experience recognises that an organisation’s future strategy is often heavily

influenced by its experience and that of its managers.

● Strategy as variety. Neither of the above lenses is likely to uncover radical new ideas in

strategy as a design approach risks being too rigid and top-down and experience builds
too much on the past.
● Strategy as discourse focuses attention on the ways managers use language to frame strategic

problems, make strategy proposals, debate issues and then finally communicate
strategic decisions.

2. Mention the reasons on the Great Depression. How do you think this will have influenced the
development of marketing?
The Great Depression was an economic slump in North America, Europe, and other industrialized areas
of the world that began in 1929 and lasted until about 1939. It was the longest and most severe
depression ever experienced by the industrialized Western world.
As a result, the terms of trade declined precipitously for producers of primary commodities. The U.S.
recovery began in the spring of 1933. Output grew rapidly in the mid-1930s: real GDP rose at an average
rate of 9 percent per year between 1933 and 1937. Recovery in the rest of the world varied greatly. The
British economy stopped declining soon after Great Britain abandoned the gold standard in September
1931, although genuine recovery did not begin until the end of 1932. The economies of a number of
Latin American countries began to strengthen in late 1931 and early 1932. Germany and Japan both
began to recover in the fall of 1932. Canada and many smaller European countries started to revive at
about the same time as the United States, early in 1933. On the other hand, France, which experienced
severe depression later than most countries, did not firmly enter the recovery phase until 1938.
Note : Worldwide gross domestic product (GDP) fell by an estimated 15%. By comparison, worldwide
GDP fell by less than 1% from 2008 to 2009 during the Great Recession.

3) Define consumer collectives. What are three types of consumer collectives?

Understanding of the role of brands and cultural practice by exploring them in the context of consumption
communities or collectives is consumer collectives. This means that the level of analysis moves from individual to
group, and from individual engagement to collective engagement. It also means that we must focus on new forms
of voluntary social participation, and the ways in which they enhance individual experience. Typically, it can be a
lifestyle grouping; or a subculture; or a consumer tribe; or a brand community; or a consumer micro-culture; or a
resistance movement. This is an interesting phenomenon, given that in recent times, more established forms of
social community (e.g. some traditional religious communities, neighbourhood communities) have often
floundered. The breakdown of these traditional forms of community, based upon long-established social
structures, is exemplifi ed by growing patterns of individual consumption replacing joint, social consumption.
Putnam (1995) notes the phenomenon of the lone tenpin bowler in America, an example of an individual
consuming a service without the usual social participation that goes with it, possibly resulting in eventual
loss of social capital ( Bourdieu, 1984 ) and community ties. Different forms of capital are available to people in
their daily lives: economic capital refers to the financial assets they can draw upon, whilst social capital refers to
the ‘features of social organization such as networks, norms, and social trust that facilitate co-ordination and co-
operation for mutual benefi t .’
Three types of Consumer collectives are:
1) Lower mill estate
2) A typical collectors ’ club
3) MMOGs (massively multi-player online games).

4. WHAT IS Forecasting AND WHICH ARE THE DIFFERENT APPROACHES? (5 MARKS)

All strategic decisions involve forecasts about future conditions and outcomes.
Thus a manager may decide to invest in new capacity because of a forecast of growing
demand (condition), with the expectation that the investment will help capture increased
sales (outcome). PESTEL factors will feed into these forecasts, for example in tracking economic
cycles or mapping future technologies. However, accurate forecasting is notoriously
difficult. After all, in strategy, organisations are frequently trying to surprise their competitors.

Forecasting takes three fundamental approaches based on varying degreesof certainty: single-
point, range and multiple-futures forecasting.
● Single-point forecasting is where organisations have such confidence about the future that
they will provide just one forecast number . For instance, an organisation
might predict that the population in a market will grow by 5 per cent in the next
two years. Demographic trends lend themselves to these kinds of forecasting, at least in the short term.
● Range forecasting is where organisations have less certainty, suggesting a range of possible
outcomes. These different outcomes may be expressed with different degrees of probability,
with a central projection identified as the most probable and then a range of more remote outcomes given
decreasing degrees of likelihood (the more lightly shaded areas).
● Alternative futures forecasting typically involves even less certainty, focusing on a set of
possible yet distinct futures. Instead of a continuously graduated range of likelihoods,
alternative futures are discontinuous: they happen or they do not, with radically different
outcomes . These alternatives might result from fundamental policy decisions.

5. WHAT ARE THE competitive forces ?

Industries vary widely in terms of their attractiveness, as measured by how easy it is for participating firms to earn
high profits. A key determinant of profitability is the extent of competition and the strength of buyers and suppliers,
and this varies between industries. Where competition and buyer and supplier strengths are low, and there is little
threat of new competitors, participating firms should normally expect good profits. Profitability between
industries can thus vary considerably; for example, the pharmaceutical industry has performed very well while
others, like the airline industry, have underperformed.
Porter’s Five Forces Framework helps to analyse an industry and identify the attractiveness of it in terms of five
competitive forces: (i) extent of rivalry between competitors (ii) threat of entry, (iii) threat of substitutes, (iv) power
of buyers and (v) power of suppliers. These five forces together constitute an industry’s ‘structure’ which is
typically fairly stable. Porter’s main message is that where the five forces are high and strong, industries are not
attractive. Excessive competitive rivalry, powerful buyers and suppliers and the threat of substitutes or new entrants
will all combine to squeeze profitability

6. Explain Market segments.

The concept of market segment focuses on differences in customer needs. A market segment is a group of
customers who have similar needs that are different from customer needs in other parts of the market. Where these
customer groups are relatively small, such market segments are often called ‘niches’. Dominance of a market
segment or niche can be very valuable, for the same reasons that dominance of an industry can be valuable
following five forces reasoning. Segmentation should reflect an organisation’s strategy 22 and strategies based on
market segments must keep customer needs firmly in mind.
Therefore, two issues are particularly important in market segment analysis:
● Variation in customer needs. Focusing on customer needs that are highly distinctive from those typical in the

market is one means of building a long-term segment strategy.

● Specialisation within a market segment can also be an important basis for a successful segmentation strategy. This

is sometimes called a ‘niche strategy’.

Type of factor Consumer markets Industrial/organisational markets
Characteristics of Age, gender, ethnicity Industry
people/organisations Income Location
Family size Size
Life-cycle stage Technology
Location Profitability
Lifestyle Management
Purchase/use situation Size of purchase Application
Brand loyalty Importance of purchase
Purpose of use Volume
Purchasing behaviour Frequency of purchase
Importance of purchase Purchasing procedure
Choice criteria Choice criteria
Distribution channel
Users’ needs and preferences for Product similarity Performance requirements
product characteristics Price preference Assistance from suppliers
Brand preferences Brand preferences
Desired features Desired features
Quality Quality, Service requirements

7. Why is history important? (5 marks)

A useful way of thinking of the influence of history is the concept of path dependency, where
early events and decisions establish ‘policy paths’ that have lasting effects on subsequent
events and decisions. This suggests that organisational strategies may be historically conditioned.
Path dependency has been described as like the ruts made in a dirt track by the
passing of vehicle wheels over time. These ruts become deeper and deeper as more and more
vehicles go along. Once that happens, vehicles have no option but to continue along those
ruts. Future direction is dependent on the paths laid down in the past.

Examples of path dependency often relate to technology. There are many instances where
the technology we employ is better explained by path dependency than by deliberate optimisation.
A famous example is the layout of keyboard characters in most English-speaking countries: QWERTY. This
originated in the nineteenth century as a way of reducing the problem of the keys on mechanical typewriters getting
tangled when sales people demonstrated the machine at maximum speed by typing the word ‘typewriter’. There are
more optimal layouts, but QWERTY has remained with us for over 150 years despite radical changes in
keyboard technology with the development of computers, tablets and mobile phones. Path dependency is not only
about technology. It also relates to any form of behaviour that has its origins in the past and becomes so entrenched
that it becomes locked-in. ‘Lock-in’ occurs where the infrastructure of an organisation (or even whole industry) is so
strongly entrenched around a technology, product or service that the costs of switching from the
established offering become prohibitive. Lock-in could begin with a decision which, of itself,
may not appear especially significant, but which then has unforeseen and hard to reverse consequences.
For example, airlines easily become ‘locked-in’ on particular aircraft types (e.g. Boeing), because once systems for
crew-training and spare parts availability have become optimised for that particular aircraft type, it is extremely
disruptive to start switching to another aircraft type (e.g. Airbus). Thus an initial, maybe chance, decision leads to
the development of self-reinforcing mechanisms that lock-in on a particular path.
8. Explain the Critical success factors and ‘Blue Oceans’. :
Industry or sector analysis should also include an understanding of competitors and the different
ways they offer value to customers. As Michael Porter’s five forces framework underlines,
reducing industry rivalry involves competitors finding differentiated positions in the
marketplace. W. Chan Kim and Renée Mauborgne at INSEAD propose two concepts that
help think creatively about the relative positioning of competitors in the environment and
finding uncontested market spaces: the strategy canvas and ‘Blue Oceans’.
A strategy canvas compares competitors according to their performance on key success
factors in order to establish the extent of differentiation. It captures the current factors of
competition of the industry, but also offers ways of challenging these and creatively trying
to identify new competitive offerings.

The canvas highlights the following three features:

● Critical success factors (CSFs) are those factors that either are particularly valued by customers

(i.e. strategic customers) or provide a significant advantage in terms of cost. Critical

success factors are therefore likely to be an important source of competitive advantage
or disadvantage. There are five established critical success factors in this electrical
components market (cost, after-sales service, delivery reliability, technical quality and
testing facilities). There is also a new sixth critical success factor, design advisory
services, which is called as value innovation.
● Value curves are a graphic depiction of how customers perceive competitors’ relative

performance across the critical success factors.

● Value innovation is the creation of new market space by excelling on established critical

success factors on which competitors are performing badly and/or by creating new critical
success factors representing previously unrecognised customer wants.
A value innovator is a company that competes in ‘Blue Oceans’. Blue Oceans are new market
spaces where competition is minimised. Blue Oceans contrast with ‘Red Oceans’, where
industries are already well defined and rivalry is intense. Blue Oceans evoke wide empty seas.
Red Oceans are associated with bloody competition and ‘red ink’, in other words financial
losses. The Blue Ocean concept is thus useful for identifying potential spaces in the environment
with little competition. These Blue Oceans are strategic gaps in the marketplace.

9)What are Resources and capabilities

Resources are the assets that organisations have or can call upon and capabilities are the ways
those assets are used or deployed. A shorthand way of thinking of this is that
resources are ‘what we have’ (nouns) and capabilities are ‘what we do well’ (verbs). It is also termed as
intangible assets as an umbrella term to include capabilities as well as intangible
resources such as brands.

Resources and capabilities are typically related. Resources are certainly

important, but how an organisation employs and deploys its resources matters at least as much.
There would be no point in having state-of-the-art equipment if it were not used effectively. The
efficiency and effectiveness of physical or financial resources, or the people in an organisation,
depend not just on their existence, but on the systems and processes by which they are managed,
the relationships and cooperation between people, their adaptability, their innovative capacity,
the relationship with customers and suppliers, and the experience and learning about what works
well and what does not.

Resources: what we have (nouns), e.g. Capabilities: what we do well (verbs), e.g.
Machines, buildings, raw materials, patents, Physical Ways of achieving utilisation of plant, efficiency,
databases, productivity, flexibility, marketing
computer systems
Balance sheet, cash flow, suppliers of funds Financial Ability to raise funds and manage cash flows, debtors,
creditors, etc.
Managers, employees, partners, suppliers, Human How people gain and use experience, skills, knowledge,
customers build relationships, motivate others and innovate

10. What is culture and why is it important? (5 marks)

There are many ways to define culture, but typically definitions emphasise a set of takenfor-
granted beliefs and values that are shared within a particular group. What individual
managers believe in and value obviously influences their strategic decisions. Strategy is influenced
by culture, therefore. However, because we all belong to many groups, these cultural
influences can be very diverse.

There are three kinds of cultural influences: 1) geographical cultures, 2) field cultures and
3) organisational cultures and subcultures, all of which impinge on individual managers.
11. How can Culture influence on strategy (5 marks)
Mark Fields, President of Ford Motor Company in 2006, famously argued that ‘culture eats strategy for breakfast’,
by which he emphasised the importance of culture for the strategy of the business. The importance of culture does
not mean that strategy is irrelevant of course: culture should be seen as part of the strategy, something that can be a
source of competitive advantage and, to some degree, something that can be adjusted.The enduring influence of
culture on strategy is always present. Faced with a stimulus for action, such as declining performance, managers
first try to improve the implementation of existing strategy. This might be through trying to lower cost, improve
efficiency, tighten controls or improve accepted ways of doing things. If this is not effective,a change of strategy
may occur, but a change in line with the existing culture.

Culture influence of strategy:

12. Examine Generic competitive strategies (5 marks)

Competitive strategy is concerned with how a company,

business unit or organisation achieves competitive advantage in its domain of activity.
Competitive strategy therefore involves issues such as costs, product and service features
and branding. In turn, competitive advantage is about how a company, business unit or
organisation creates value for its users which is both greater than the costs of supplying
them and superior to that of rivals.

Porter’s distinctions between cost, differentiation and scope define a set of ‘generic’ strategies:
in other words, basic types of strategy that hold across many kinds of business situations.
These three generic strategies are :

13. Analyse about Game theory (5 marks)

Game theory provides important insights into competitor interaction. The ‘game’ refers to the kinds of interactive
moves two players make in a game of chess. Game theory encourages an organisation to consider competitors’
likely moves and the implications of these moves for its own strategy. Game theorists are alert to two kinds of
interaction in particular. First, game theorists consider how a competitor response to a strategic move might change
the original assumptions behind that move: for example, challenging a competitor in one area might lead to a
counter-attack in another. Second, game theorists are sensitive to the strategic signals, or messages, their moves
might convey to competitors, for example with regard to how fiercely they seem willing to defend their position in a
particular market. In the light of possible attacks and counter-attacks, game theorists often advise a more cooperative
approach than head-to-head competition. Game theory is particularly relevant where competitors are interdependent.
Interdependence exists where the outcome of choices made by one competitor is dependent on the choices
made by other competitors. For example, the success of price cuts by a retailer depends on the responses of its
rivals: if rivals do not match the price cuts, then the price-cutter gains market share; but if rivals follow the price
cuts, nobody gains market share and all players suffer from the lower prices. Anticipating competitor counter-moves
is clearly vital to deciding whether to go forward with the price-cutting strategy. There are two important guiding
principles that arise from interdependence:
● Get in the mind of the competitors. Strategists need to put themselves in the position of

competitors, take a view about what competitors are likely to do and choose their own
strategy in this light. They need to understand their competitors’ game-plan to plan their
own.
● Think forwards and reason backwards. Strategists should choose their competitive moves

on the basis of understanding the likely responses of competitors. Think forwards to what
competitors might do in the future, and then reason backwards to what would be sensible
to do in the light of this now.

Illustration : Game theory in practice in the public sector.

Game theory has not become a common strategic tool. It has often been considered too theoretical and
focused on single solutions to be able to cope with real-world messy managerial problems. However, it has
been proposed that instead of using game theory to predict a single optimal solution it can be used to generally
understand advantages and disadvantages with different strategic options. When public-sector organisations try to change and
improve public services they frequently need to partner with and interact with a variety of organisations. They need to
collaborate with other public-sector organisations, with private companies and not-for-profit organisations. Success therefore
depends not only on the public-sector organisation itself, but on several other
partners.

The principles of game theory can thus be of more general assistance and Timothy Meaklim in the Guardian
has suggested that public organisations and their leaders should:
1 Be knowledgeable about partners, their strategies, needs and decision-making
2 Be flexible adjusting their own strategies or objectives to meet the overall aim
3 Develop clear lines of partnership communication and decision-making
4 Share the power equally between parties
5 Get agreement on partnership operation and benefits
6 Consider own roles and motives for engaging with the partnership
7 Create partner trust.

14. What are the Value-adding and value-destroying activities of

corporate parents (5 marks)
Corporate parents need to demonstrate that they create more value than they cost. This
applies to both commercial and public-sector organisations. For public-sector organisations,
privatisation or outsourcing is likely to be the consequence of failure to demonstrate value.
Companies whose shares are traded freely on the stock markets face a further challenge. They
must demonstrate they create more value than any other rival corporate parent could create.
Failure to do so is likely to lead to a hostile takeover or break-up. Rival companies that think
they can create more value out of the business units can bid for the company’s shares, on
the expectation of either running the businesses better or selling them off to other potential
parents. If the rival’s bid is more attractive and credible than what the current parent can
promise, shareholders will back it at the expense of incumbent management.

15) Illustrate the role of The portfolio manager in corporate strategy. (5 marks)
 The portfolio manager operates as an active investor in a way that shareholders in the stock
 market are either too dispersed or too inexpert to be able to do. In effect, the portfolio
manager is acting as an agent on behalf of financial markets and shareholders with a view
to extracting more value from the various businesses than they could achieve themselves.
Its role is to identify and acquire under-valued assets or businesses and improve them. The
portfolio manager might do this, for example, by acquiring another corporation, divesting
low-performing businesses within it and intervening to improve the performance of those
with potential.
 Portfolio managers seek to keep the cost of the centre low, for example by having a small
corporate staff with few central services, leaving the business units alone so that their chief
executives have a high degree of autonomy. They set clear financial targets for those chief
executives, offering high rewards if they achieve them and likely loss of position if they
do not. Such corporate parents can, of course, manage quite a large number of such businesses
because they are not directly managing the everyday strategies of those businesses.
 Some argue that the days of the portfolio manager are gone. Improving financial markets
mean that the scope for finding and investing cheaply in underperforming companies is
much reduced. However, some portfolio managers remain and are successful. Private equity
firms such as Apax Partners or Blackstone operate a portfolio management style, typically
investing in, improving and then divesting companies in loosely knit portfolios. For example,
in 2015, Blackstone, with $300bn in assets, owned companies in energy, real estate, water
treatment, camera manufacture, banking, railway operation and seed development with
more than 616,000 employees around the world.

16). What are the International strategies in marketing strategies? (5 marks)

●Internationalisation drivers. Drivers of organisation’s internationalisation include market
demand, the potential for cost advantages, government pressures and inducements and the
need to respond to competitor moves. Given the risks and costs of international strategy,
managers need to know that the drivers are strong to justify adopting an international
strategy in the first place.
● Geographical and firm-specific advantages.
● International strategy.
● Market selection.

● Entry strategy mode.

17. How to analyse the Technology push or market pull ? (5 marks)
People often see innovation as driven by technology. In the pure version of this technology push
view, it is the new knowledge created by technologists or scientists that pushes the innovation
process. Research and development laboratories produce new products, processes or services
and then hand them over to the rest of the organisation to manufacture, market and distribute.
According to this push perspective, managers should listen primarily to their scientists and
technologists, let them follow their hunches and support them with ample resources. Generous
R&D budgets are crucial to making innovation happen. For example, estimates for making a
new drug show that the costs can be as high as $200m (£120m, €150m).
An alternative approach to innovation is market pull. Market pull reflects a view of innovation
that goes beyond invention and sees the importance of actual use. In many sectors
users, not producers, are common sources of important innovations. In designing their innovation
strategies, therefore, organisations should listen in the first place to users rather than
their own scientists and technologists.
There are two prominent but contrasting approaches to market pull:
● Lead users.

● Frugal innovation.

18. Identify and respond to key innovation dilemmas , such as the relative emphases to
place on technologies or markets, product or process innovations and open versus
closed innovation. (5 marks)

One important outcome of entrepreneurship is innovation. It is of importance not only for

start-ups, but for all firms, including large companies that continuously need to develop new
and innovative products and services to successfully compete. Innovation, however, raises
fundamental strategic dilemmas for strategists. Innovation is more complex than just invention.
Invention involves the conversion of new knowledge into a new product, process or
service. Innovation involves the conversion of new knowledge into a new product, process orservice and the putting
of this new product, process or service into actual commercial use.8
The strategic dilemmas stem from this more extended innovation process. Strategists have to
make choices with regard to three fundamental issues: how far to follow technological opportunity
as against market demand; how much to invest in product innovation rather than
process innovation; and how far to open themselves up to innovative ideas from outside.

Innovation dilemmas are :

 Technology push or market pull
 Product or process innovation
 Open or closed innovation
19. Identify the key strategic motives for mergers and acquisitions and strategic alliances.

Motives for M&A can be strategic, financial and managerial.

Strategic motives for M&A involve improving the competitive advantage of the organisation. These motives are
often related to the reasons for diversification in general. Strategic motives can be categorised in three main ways.:
 Extension. M&A can be used to extend the reach of a firm in terms of geography, products
or markets. For instance, transactions such as Valeant Pharmaceuticals’ $55bn purchase
of Botox-maker Allergan and Facebook’s $22bn acquisition of mobile messaging
platform WhatsApp illustrate capturing new products and markets.

 Consolidation. M&A can be used to consolidate the competitors in an industry. Bringing

together two competitors can have at least three beneficial effects. In the first place, it
increases market power by reducing competition: this might enable the newly consolidated
company to raise prices for customers. Second, the combination of two competitors can
increase efficiency through reducing surplus capacity or sharing resources, for instance
head-office facilities or distribution channels. Finally, the greater scale of the combined
operations may increase production efficiency or increase bargaining power with suppliers,
forcing them to reduce their prices. These reasons lie behind the 2015 merger between
cement giants Lafarge of France and Holcim of Switzerland.
 Capabilities. The third broad strategic motive for M&A is to increase a company’s capabilities.
High-tech companies such as Cisco and Microsoft regard acquisitions of entrepreneurial
technology companies as a part of their R&D effort. Instead of researching a
new technology from scratch, they allow entrepreneurial start-ups to prove the idea, and
then take over these companies in order to incorporate the technological capability within
their own portfolio. Capabilities-driven acquisitions are often useful where industries are
converging . For example, Alphabet, formerly Google, made substantial
acquisitions in order to gain a foothold in the new high-growth mobile advertising market.
Alphabet’s acquisition of AdMob and, in 2015, acquisition of Agawi, an app streaming
specialist, shows commitment to build a notable presence in this market space where there
is convergence between telephony and advertising industries.

20. Assess performance and the need for new strategies using gap analysis (5 marks)
Gap analysis compares actual or projected performance with desired performance.7 It is useful
for identifying performance shortfalls (‘gaps’) and, when involving projections, can help in
anticipating future problems. The size of the gap provides a guide to the extent to which
strategy needs to be changed. The following diagram shows a gap analysis where the vertical axis
is somemeasure of performance (for example, sales growth or profitability) and the horizontal axis
shows time, both up to ‘today’ and into the future. The upper line represents the organisation’s
desired performance, perhaps a set of targets or the standard set by competitor
organisations. The lower line represents both achieved performance to today, and projected
performance based on a continuation of the existing strategy into the future (this is necessarily
an estimate). In this diagram, there is already a gap between achieved and desired
performance: performance is clearly unsatisfactory.
21) WHAT DO CONSUMERS THINK OF MARKETING?
Given that serving consumers is marketing’s central purpose, their sentiments towards marketing activity
deserve attention. In a survey by the market research company Yankelovich (cited in Sheth and Sisodia, 2005
) 60 per cent of consumers reported that their opinions of advertising and marketing activity had worsened
in recent years. However, a long run survey of US consumers’ sentiment towards marketing, conducted
annually over the past two decades, suggests that, while consumers generally have a negative opinion of
marketing, these sentiments have slightly improved over the period (Gaski and Etzel, 2005 ). Gaski and Etzel
(2005) also observe that we are only just beginning to understand the breadth of phenomena that infl
uence these sentiments.

By this illustration, we can analyse that of the four marketing functions, product quality carries most
importance in infl uencing consumer sentiments, followed in order of decreasing importance by price, retail
service and advertising. In addition, while this study finds that consumers do have a negative view of
marketing, in the aggregate and over a long period of time this negative view is only slight and ‘not nearly as
unfavorable as popular stereotype may have represented ’ ( Gaski, 2008, p. 212 ).

Consumer thinking on marketing can be related to consumer behavior and it is "The study of individuals, groups,
or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences,
or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

" And this definition, brings up some useful points:

 Behavior occurs either for the individual, or in the context of a group (e.g., friends influence what kinds
of clothes a person wears) or an organization (people on the job make decisions as to which products the
firm should use).
 Consumer behavior involves the use and disposal of products as well as the study of how they are
purchased. Product use is often of great interest to the marketer, because this may influence how a
product is best positioned or how we can encourage increased consumption. Since many environmental
problems result from product disposal (e.g., motor oil being sent into sewage systems to save the
recycling fee, or garbage piling up at landfills) this is also an area of interest.
 Consumer behavior involves services and ideas as well as tangible products.
  The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of
high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national
health and economy

10 marks questions :
1. What is strategy - DefinE strategy, The purpose of strategy: mission, vision, values and
objectives? ( 10 MARKS)
Definitions of Strategy according to various theorists and authors :

Alfred D. Chandler : it is the "determination of the long-run goals and objectives of an

enterprise and the adoption of courses of action and the allocation of resources
necessary for carrying out these."
Michael Porter : it is ‘Competitive strategy is about being different. It means deliberately choosing a different
set of activities to deliver a unique mix of value’
Peter Drucker: it is 'different set of activities to deliver a unique mix of value’
Henry Mintzberg : ‘a firm’s theory about how to gain competitive advantages’
Exploring Strategy : ‘a pattern in a stream of decisions’ ‘the long-term direction of an organisation’

The purpose of strategy: mission, vision, values and objectives:

 Harvard University’s Cynthia Montgomery3 argues that the core of a strategist’s job is defining and
expressing a clear and motivating purpose for the organisation.
 There are four ways in which organisations typically define their purpose:
 mission statement aims to provide employees and stakeholders with clarity about what
the organisation is fundamentally there to do.
 A vision statement is concerned with the future the organisation seeks to create. The vision
typically expresses an aspiration that will enthuse, gain commitment and stretch performance.
 Statements of corporate values communicate the underlying and enduring core ‘principles’
that guide an organisation’s strategy and define the way that the organisation should
operate. For example, Alphabet (previously Google) famously includes in its values ‘you
can be serious without a suit’, ‘fast is better than slow’ and ‘don’t be evil’
 Objectives are statements of specific outcomes that are to be achieved. These are often
expressed in precise financial terms, for instance, the level of sales, profits or share
valuation in one, two or three years’ time.

Few Strategy statements:

“Uber is evolving the way the world moves. By seamlessly connecting riders to drivers
through our apps, we make cities more accessible, opening up more possibilities for
riders and more business for drivers.”
“Our goal when we created Tesla a decade ago was the same as it is today:
to accelerate the advent of sustainable transport by bringing compelling mass
market electric cars to market as soon as possible.”
“To help bring creative projects to life.”

“To help humanity thrive by enabling all teams to work together effortlessly.”
“To enrich people’s lives with programmes and services that inform, educate
and entertain.”
“To deliver information on the people, ideas and technologies changing the
world to our community of affluent business decision makers.”
“To be one of the world’s leading producers and providers of entertainment
and information, using its portfolio of brands to differentiate its content,
services and consumer products.”
 “To be a company that inspires and fulfills your curiosity.”
“To enable people and businesses throughout the world to realize their full
potential.”
“To organize the world’s information and make it universally accessible and
useful.”
“To be the catalyst in communities of customers, contributors, and partners
creating better technology the open source way.”
“Establish Starbucks as the premier purveyor of the finest coffee in the world
while maintaining our uncompromising principles while we grow.”

“Improving people’s lives through meaningful innovation.”

2. What is Arts marketing.

Art marketing isn’t just about selling more art. It’s about making better art and also about finding success through
a fuller understanding the artist’s role. More a manifesto about the deeply social nature of art than an analytical
step-by-step guide, Art Marketing intends to inspire artists to think of promoting their work as an essential part of
the process of art-making in marketing products and services.
We may broadly distinguish two approaches to arts marketing. First one, more concerned with arts
marketing as a managerial tool, locates it within the domain of cultural intermediaries ( Venkatesh and
Meamber, 2006),and positions marketing mix as a method used by artists and arts organization to
promote cultural goods on a very competitive arts market. where arts marketing can be defined as ‘an
integrated management process which sees mutually satisfying exchange relationships with customers
as the route to achieving organizational and artistic objectives’. In the second approach, marketing is an
integral element of artistic production; it postulates ‘a broad understanding of the arts as a context for
marketing ’ ( Butler, 2000 , p. 345).

According to Butler in his book, there are 15 characteristics of arts marketing

Structural characteristics Process characteristics

The Product Value definition

Cultural domain Source of value defi nition
Human performance Discovery of new art
Location as identity
The Organization Value development
Role of the artist Education and development of artists
Clash of commerce and culture Education and development of audiences
Arts networks

The Market Value delivery

Resource base Access
Diversity of audience Pricing
Infl uence of critics

Arts marketing involves the first step towards using marketing effectively is for those who lead the
organisation to clearly spell out what sort of organisation they want to build. This overall direction, often
embodied in a vision-type statement, will determine how marketing can contribute effectively.

The key stages in the development of a marketing strategy using arts marketing comprise:
1. identifying Critical Success Factors, ie those factors which will ultimately decide the success of your
arts organisation
2. undertaking an analysis of your organisation’s strengths and weaknesses and the opportunities and
threats your organisation is facing now and is likely to face in the future
3. considering a range of growth strategies (if growth is seen as desirable)
4. setting strategic marketing goals and objectives in light of the above analyses
5. conducting an in-depth analysis of your competition and those segments of the total potential
audience market you are planning to target
6. reviewing your current products and services and the development of a future portfolio of products
and services which will satisfy your artistic and commercial objectives in the most effective way
7. deciding on your marketing mix, including product, pricing, promotions and place decisions
8. developing specialised programs within your broader marketing program, which may include
educational or multimedia programs, joint ventures, et cetera
9. using market research to support and creative techniques to complement your analyses, leading to a
strategically focused, creative marketing strategy, which takes the reality of the market into account.
3) Explain the CHARACTERISTICS OF POSTMODERNISM (10 marks)

Marketing and consumption have been pinpointed as key phenomena of the postmodern era to the extent
that marketing, as the main purveyor of signs, symbols and images, has been identified as more or less
synonymous with postmodernism. Increasingly, the emphasis is on product intangibles such as brand name
and overall image, the fantasy aspects that surround a product as opposed to any intrinsic, tangible value in
the product itself. Thus the image becomes the marketable entity and the product strives to represent its
image rather than vice versa. Firat et al. (1995) describe this as the quintessential post-
modern approach.
list of seven characteristics is the most comprehensive for the post modernism:

1. Fragmentation
2. De-differentiation
3. Hyperreality
4. Chronology
5. Pastiche – this concerns postmodernism’s tendency to mix
styles, past and present, often achieving the effect of a collage.
6. Anti-foundationalism
7. Pluralism

4) Explain the birth of sustainable marketing? What is the role of green marketing? (10 marks)
 Meadows (1972) and Woodhouse (1992) suggest that if population growth,
industrialization, food production, resource depletion and pollution continue
unchanged, ‘then the limits to growth on the planet would be reached in
the next one hundred years ’ Organizations have been blamed for much of this pollution to the
environment by the green movement who have drawn our attention to: pumping
out emissions from oil and coal and gas into the air; disposal of chemical and nuclear waste;
dangerous pollutants released into our streams, rivers and oceans; and the despoilment of our
habitat with non-biodegradable packaging.
 Pezzey (1992) in a paper, entitled ‘Sustainability: An Interdisciplinary
Guide’, lists a range of effects linked to human economic activity.
 SUSTAINABLE MARKETING AND CORPORATE RESPONSIBILITY Moving industries and economies
towards an environmentally and socially sustainable future will indeed be a challenge for marketers
and it is called as sustainable markting.
 REGULATION/LEGISLATION
As environmental and welfare concerns have grown over the last decade
it has become harder for people in organizations to resist taking responsibility for their actions
especially when they are faced with accepting their responsibility, or alternatively with the threat of
regulation and legislation.
 GREEN MARKETING
Many organizations who start out in an environmentally responsible man-ner are fi nding that it has
a positive affect on profi ts. ‘Paul Rowley knowledge transfer co-ordinator at the centre for
Renewable Energy at Loughborough University and co-founder of the energy advice web site
Greenenergy 360.org said … There are two real advantages for a small business becoming green.
One is branding and marketing advantage. The other is the impact on the bottom line ’ ( Bridge,
2008 , p. 17). A positive relationship was also found by Wokutch and Spencer (1987)
betweecorporate social responsibility and financial performance.
 Pollution control/prevention
 Product stewardship
 New environmental technologies
 Sustainability vision
 THE GREEN CONSUMER is a customer who wants to buy things that have
been produced in a way that protects the natural environment The
typical green consumer will only buy things that are environmentally friendly.
5. What is PESTEL analysis - ILLUSTRATE?
PESTLE is a mnemonic which in its expanded form denotes P for Political, E for Economic, S
for Social, T for Technological, L for Legal and E for Environmental. It gives a bird’s eye view of
the whole environment from many different angles that one wants to check and keep a track of
while contemplating on a certain idea/plan in case of marketing strategies.

The framework has undergone certain alterations, as theorists of Marketing have

added certain things like an E for Ethics to instill the element of demographics while
utilizing the framework while researching the market.

There are certain questions that one needs to ask while conducting this analysis, which
give them an idea of what things to keep in mind. They are:
 What is the political situation of the country and how can it affect the industry?
 What are the prevalent economic factors?
 How much importance does culture has in the market and what are its determinants?
 What technological innovations are likely to pop up and affect the market structure?
 Are there any current legislations that regulate the industry or can there be any change in the
legislations for the industry?
 What are the environmental concerns for the industry?

All the aspects of this technique are crucial for any industry a business might be in.
More than just understanding the market, this framework represents one of the
vertebras of the backbone of strategic management that not only defines what a
company should do, but also accounts for an organization’s goals and the strategies
stringed to them.

6. What is industry analysis and what are the industry types and dynamics? (10 MARKS)

The five forces framework is the most well-known strategy tool for industry analysis, but it has to be used carefully.
First, industry types and their underlying economic characteristics should be considered as there will have major
implications on industry attractiveness and what competitive strategies are available. Second, even though industry
structures areoften stable they do change, and some can be in flux for considerable periods of time. This
suggests that basic industry types and industry dynamics in competitive forces need to be considered.
1 Define the industry clearly. Do the actors in the 2 Identify the actors of each of the five forces and, if
industry face the same buyers, suppliers, entry barriers relevant, define different groups within them and the
and substitutes? basis for this. Which are the . . .
● Vertical scope: W hat stages of the industry value ● competitors that face the same competitive
chain/system? forces? (compare point 1 above)
● Product or service scope: What products or services? ● buyers and buyer groups (e.g. end customers vs
Which ones are actually parts of other, intermediaries, individual vs organisational)?
separate industries? What segments? ● suppliers and supplier groups (e.g. diverse
● Geographic scope: local, national, regional or supplier categories)?
global competition? ● potential entrants?

● substitutes?
Provided there is a clear industry definition the identification
of the actors for each force should be rather
straightforward but groups within them need
to be considered. On the supplier side, for example,
they include not only inputs but also the
location of the premises and labour supply
3 Determine the underlying factors and total strength 4 assess the overall industry structure and
of each force. attractiveness.
● Which are the main underlying factors for each ● How attractive is the industry? Why?
force? Why? ● Which are the most important competitive
● Which competitive forces are strong? Which are forces? Which control profitability?
weak? Why? ● Are more profitable competitors better positioned
Not all underlying factors on the five force checklists in relation to the five forces?
will be equally relevant . With respect to buyers,
for example, the products’ degree of standardisation
and prices matters most, while others are less
important.

5 assess recent and expected future changes for 6 Determine how to position your business in
each relation
force. to the five forces. Can you:
● What are the potential positive/negative changes? ● exploit any of the weak forces?
How likely are they? ● neutralise any of the strong forces?
● Are new entrants and/or competitors changing ● exploit industry change in any way?
the industry structure in any way? ● influence and change the industry structure to
trends and growth. your advantage?

Industry type:
Industry structure Characteristics Competitive five forces
threats
Monopoly – One firm Very low
– Often unique product or service
– Very high entry barriers
Oligopoly – Few competitors Varies
– Product and service differences vary
– High entry barriers
Perfect competition – Many competitors Very high
– Very similar products or services
– Low entry barriers
Industry dynamics :
Industry structure analysis can easily become too static: after all, structure implies stability.
However, industries are not always stable. To begin with, industry borders can change over
time and this needs to be considered when first defining an industry. For example, many
industries, especially in high-tech arenas, are converging. Convergence is where previously
separate industries begin to overlap or merge in terms of activities, technologies, products
and customers. Technological change has brought convergence between the telephone, photographic
and the PC industries, for example, as mobile phones have become smartphones
and include camera and video, emailing and document editing functions. Hence, companies
that once were in separate industries, like Samsung in mobile phones, Sony in cameras and
Microsoft in PC software, are now in the same smartphone industry. The broader macro-environment
also tends to influence the more specific industry environment through changes in the industry structure.

The industry structure dynamics encompasses two additional approaches to understanding

change in industry structure: the industry life-cycle concept and comparative five
forces analyses.

The industry life-cycle concept proposes that industries start small in their development or
introduction stage, then go through a period of rapid growth (the equivalent to ‘adolescence’
in the human life cycle), culminating in a period of ‘shake-out’. The final two stages are first
a period of slow or even zero growth (‘maturity’), and then the final stage of decline (‘old
age’). The power of the five forces typically varies with the stages of the industry life cycle.

Comparative industry structure analyses the industry life cycle which underlines
the need to make industry structure analysis dynamic, implies that we not only need to
understand the current strength of the competitive forces, but how it may change over time.
One effective means of doing this is to compare the competitive five forces over time in a simple ‘radar plot’.

7. What are the Implications of the Competitive Five Forces ?

The Competitive Five Forces Framework provides several useful insights into the forces and
actors at work in the industry or market environment of an organisation. The objective
is more than simply listing the strength of the forces and their underlying driving factors.
The ultimate aim is rather to determine whether the industry is a good one to compete in
or not and to what extent there are strategic positions where an individual organisation
can defend itself against strong competitive forces, can exploit weak ones or can influence
the forces in its favour. The aim of the five force analysis is thus an assessment of the
attractiveness of the industry and any possibilities to manage strategies in relation to the
forces to promote long-term survival and competitive advantage. These considerations
make up the last three steps in an industry analysis together with an assessment of industry change
When each of the five forces has been evaluated, the next step is thus
to understand the implications of these:

● Which industries to enter (or leave)? One important purpose of the five forces framework
is to identify the relative attractiveness of different industries: industries are attractive when
the forces are weak.
● How can the five forces be managed? Industry structures are not necessarily fixed, but

can be influenced by deliberate managerial strategies. Managers should identify strategic

positions where the organisation best can defend itself against strong competitive forces,
can exploit weak ones or can influence them.
● How are competitors affected differently? Not all competitors will be affected equally by

changes in industry structure, deliberate or spontaneous. If barriers are rising because

of increased R&D or advertising spending, smaller players in the industry may not be
able to keep up with the larger players, and be squeezed out.

8) How DISTINCTIVE RESOURCES AND CAPABILITIES form A BASIS

OF COMPETITIVE ADVANTAGE in an organization:

Distinctive resources and capabilities are necessary for sustainable

competitive advantage and superior economic performance.
It can be achieved by four key criteria by which resources and capabilities can be assessed in terms of them
providing a basis for achieving such competitive advantage: value, rarity, inimitability and organisational
support – or VRIO
 V Value: Do resources and capabilities exist that are valued by customers and
enable the organisation to respond to environmental opportunities or threats? V

R Rarity: Do resources and capabilities exist that no (or few) competitors possess?
I Inimitability: Are resources and capabilities difficult and costly for competitors
to obtain and imitate?
O Organisational support: Is the organisation appropriately organised to exploit the
resources and capabilities?

 The strategic process that any firm goes through begins with a vision statement, and continues on through objectives,
internal and external analysis, strategic choices (both business-level and corporate-level), and strategic
implementation.
 VRIO Analysis falls into the internal analysis step of these procedures, but is used as a framework in evaluating just
about all resources and capabilities of a firm, regardless of what phase of the strategic model it falls under.
 The VRIO Analysis considers several evaluation dimensions for the organization as well as for its competitors: Value,
Rareness, Imitability, Organization.
 Value: ‘Is the firm able to exploit an opportunity or neutralize an external threat with the resource/capability?’
 Rarity: ‘Is control of the resource/capability in the hands of a relative few?’
 Imitability: ‘Is it difficult to imitate, and will there be significant cost disadvantage to a firm trying to obtain, develop, or
duplicate the resource/capability?’
 Organization: ‘Is the firm organized, ready, and able to exploit the resource/capability?” “Is the firm organized to
capture value?’
 Using VRIO Analysis is a great way to locate the advantages that your company may possess over the competition.

9) Analyse the meaning of Corporate governance and explain the significance of Corporate Social
Responsibility.

The varying power and attention of owners, and their frequent reliance on professional managers, raise issues of
corporate governance.

Corporate governance is concerned with the structures and systems of control by which
managers are held accountable to those who have a legitimate stake in an organisation.
Key stakeholders in corporate governance are typically the owners, but may include other groups such as employee
representatives. Connecting stakeholder interests with management action is a vital part of strategy. Failures in
corporate governance have contributed to calamitous strategic choices in many leading companies, even resulting in
their complete destruction: Example :- In 2014, Portugal's second largest bank, Banco Espirito Sanctu, disappeared
after the discovery of financial irregularities involving €5bn losses. With the survival of whole organsations at stake,
governance is increasingly recognised as a key strategic issue.

Illustration : The Mozilla Foundation is a non-profit organisation that originated in the late 1990s from the old web-browser
company Netscape. Mozilla’s best known product is the Firefox open source web-browser, produced largely
for free by volunteer software developers committed to the ideal of an open internet. Four thousand volunteers
(‘Mozillians’) contributed to the original 2003 browser development, each of their names commemorated on a
14-foot high monolith outside Mozilla’s San Francisco offices.
But Mozilla faces a commercial challenge too. Most of its revenue comes from partnerships with search
engine companies (e.g. Yahoo and Baidu), who pay to be the Firefox browser’s default search engine. Mozilla
can offer access to 500 million users all over the world. However, the Firefox browser is losing market share
rapidly. In 2009, Firefox had about 30 per cent of the worldwide market; by early 2016, this share was less
than 10 per cent. the new Firefox OS phone had very limited apps: the philosophy of offering everything for free gave little
incentive for app developers. The messaging service WhatsApp only launched on Firefox OS in 2015. Many
standard sites like Yelp and LinkedIn performed badly. Google then took Firefox by surprise by slashing prices
charged to handset makers for Android. By 2015, the Firefox OS had less than one per cent world market
share. In 2016, Mozilla announced it was abandoning the Firefox OS to concentrate its resources on ‘the
Internet of Things’.

Managers and stakeholders are linked together via the governance chain. The governance chain
shows the roles and relationships of different groups involved in the governance of an organisation.

The governing body of an organisation is usually a board of directors. Although the legal
requirements vary in detail around the world, the primary responsibility of a board is typically
to ensure that an organisation fulfils the wishes and purposes of those whom it represents.
However, whom the board represents varies. In most parts of the world, private-sector
boards primarily represent shareholders, but in some parts of the world they represent a
broader or different stakeholder base. In the public sector, the governing body is accountable
to the political arm of government – possibly through some intermediary such as a funding
body. These differences have implications for organisational purpose and strategy as well as
the role and composition of boards. At the most general level, there are two governance models:
the shareholder model, prioritising shareholder interests; and the stakeholder model, recognising the wider set of
actors that have a stake in an organisation’s success.

Corporate Social Responsibility :

Underlying the discussion of corporate governance is an issue highlighted in the introduction

to this chapter. Are organisations just for the benefit of a primary stakeholder, such as the
shareholders of a company, or do they have a responsibility to a wider group of stakeholders?
This section considers, first, corporate social responsibility: the role businesses and other
organisations might take in society. Second, it considers the ethics of the behaviour and
actions of people in relation to the strategy of their organisations.

Corporate social responsibility (CSR) is the commitment by organisations to behave

ethically and contribute to economic development while improving the quality of life of
the workforce and their families as well as the local community and society at large.23 CSR
is therefore concerned with the ways in which an organisation exceeds its minimum legal
obligations.
Ethical issues have to be faced at the individual as well as corporate level and can pose
difficult dilemmas for individuals and managers. For example, what is the responsibility of
an individual who believes that the strategy of his or her organisation is unethical (e.g. its
trading practices) or is not adequately representing the legitimate interests of one or more
stakeholder groups? Should that person leave the company on the grounds of a mismatch of
values; or is whistle-blowing appropriate, such as divulging information to outside bodies,
for example regulatory bodies or the press.

Some questions of corporate social responsibility Should organisations be responsible for . . .:

1) INTERNAL ASPE CTS

Employee welfare
. . . providing medical care, assistance with housing finance, extended sick leave, assistance for dependants, etc.?
Working conditions
. . . job security, enhancing working surroundings, social and sporting clubs, above-minimum safety standards, training and
development, etc.?
Job design
. . . designing jobs to the increased satisfaction of workers rather than just for economic efficiency? This would include issues
of work/life balance?
Intellectual property
. . . respecting the private knowledge of individuals and not claiming corporate ownership?

2) EXTERNAL ASPE CTS

Environmental issues
. . . reducing pollution to below legal standards if competitors are not doing so?
. . . energy conservation?
Products
. . . dangers arising from the careless use of products by consumers?
Markets and marketing
. . . deciding not to sell in some markets?
. . . advertising standards?
Suppliers
. . . ‘fair’ terms of trade?
. . . blacklisting suppliers?
Employment
. . . positive discrimination in favour of minorities?
. . . maintaining jobs?
Community activity
. . . sponsoring local events and supporting local good works?
Human rights
. . . respecting human rights in relation to: child labour, workers’ and union rights, oppressive political regimes? Both directly
and in the choice of markets, suppliers and partners?

10. What is an Organisational culture (10 marks)

Edgar Schein defines organisational culture as the ‘basic assumptions and beliefs that are shared by members of an
organisation, that operate unconsciously and define in a basic taken-for-granted fashion an organisation’s view of
itself and its environment’. Related to this are the taken-for-granted ‘ways we do things around here’20 that
accumulate over time. So organisational culture is the taken-for-granted assumptions and behaviours of an
organisation’s members. This culture helps make sense of people’s organisational context and therefore contributes
to how they respond to issues they face. An organisation’s culture can be conceived as consisting of different layers.
An organisation’s culture can be conceived as consisting of different layers as follows:

Values may be easy to identify in terms of those formally stated by an organisation since they are often explicit,
perhaps written down . The values driving a strategy may, however, be different from those in formal statements.
For example, in the early 2000s, many banks espoused values of shareholder value creation, careful risk
management and, of course, high levels of customer service. But in practice they indulged
in highly risky lending, resulting in the need for huge government financial support in the
financial crisis of 2008–09.
● Beliefs are more specific. They can typically be discerned in how people talk about issues the organisation faces;

for example, a belief that the company should not trade with particular countries or a belief in the rightness of
professional systems and standards.
● Behaviours are the day-to-day way in which an organisation operates and that be seen by people both inside and

often outside the organisation. This includes the work routines, how the organisation is structured and controlled and
‘softer’ issues around symbolic behaviours . These behaviours may become the taken-for-granted ‘ways we do
things around here’ that are potentially the bases for inimitable strategic capabilities but also significant barriers to
achieving strategic change if that becomes necessary.
● Taken-for-granted assumptions are the core of an organisation’s culture or also known as the paradigm.... The

paradigm is the set of assumptions held in common and taken for granted in an organisation. In effect these shared
assumptions represent collective experience about fundamental aspects of the organisation that, in turn, guide people
in that organisation about how to view and respond to different ircumstances that they face.

The concept of culture implies coherence, hence the common expression ‘corporate culture’.
describes a company that works hard to create a coherent corporate culture. However, there are at least two ways in
which cultures can be subdivided in practice:
● Organisational subcultures. Just as national cultures can contain local regional cultures, there are often

subcultures in organisations. These subcultures may relate to the structure of the organisation: for example, the
differences between geographical divisions in a multinational company, or between functional groups such as
finance, marketing and operations. Differences between divisions may be particularly evident in organisations that
have grown through acquisition. Also different divisions may be pursuing different types of strategy that require or
foster different cultures.
● Organisational identity. An organisation’s culture covers a wide range of aspects, for instance how it sees its

environment, but an important part is how the organisation views itself. Organisational identity refers to what
members believe and understand about who they specifically are as an organisation.

Illustration : Dream. People. Culture.

‘Brito’, Chief executive of the world’s largest brewery, has culture as one of his three
buzzwords
AB InBev’s clumsy name reflects the manner of its People either like it or don’t like it.’ Zero-based budgeting is
growth. It has its origins in the 1999 merger of two practised, with all budgets negotiated from scratch atthe
Brazilian brewers, Antarctica (founded in 1880) and beginning of each year. Costs and performance are
Brahma (founded in 1886). The new ‘AmBev’ then monitored closely. On buying Anheuser-Busch, Brito
merged with Belgian brewer InterBrew to become fired 1400 staff, with the whole top tier of managers
InBev in 2004, before taking over the American giant going: according to Brito, ‘Some were too rich to
Anheuser-Busch in 2008. By 2015, AB InBev was the care, some were too old to work, some wouldn’t fit the
largest brewer in the world, with its headquarters in culture anyway.’ Throughout the company, employee
Belgium and a 25 per cent share of the global beer metrics are all public and managers are subject to 360
business. Its brands included Beck’s, Budweiser, degree feedback systems. The internal joke is that to
Corona and Stella Artois. AB InBev employed 155,000 get promoted, you have to kill three people.
people in 25 countries. The company had its eyes on But the rewards are high for good performers, and
taking over one of its last major rivals, the South African promotion fast. Young managers rarely spend more
brewer SABMiller. than two or three years in a single posting, moved
AB InBev’s Chief Executive was the Brazilian Carlos on as soon as they start to get comfortable. In 2014,
Brito, known simply as ‘Brito’ (never Carlos, never Mr more than 100,000 people applied for 147 graduate
Brito). He had originally begged the former Brazilian level jobs. Brito personally addresses each class
tennis champion and investor Jorge Paolo Lemann to of graduate trainees, looking for talent. He always
fund his MBA at Stanford University. On completion encourages his trainees to ‘dream big’. Luiz Fernando
of his MBA, he had joined Brahma, a brewery that Edmond, head of sales worldwide, was on the company’s
Lemann had just bought. By 2004, Brito was CEO of first management trainee programme in Brazil in
AmBev. With the InterBrew merger, he played second 1990. He remarks: ‘I came here with nothing. If you
fiddle initially, but by 2005 – aged 45 – he emerged work hard, you focus on your results and you work with
as CEO of the newly-created company InBev. people, bring people together, promote people better
Brito’s three buzzwords, repeated by executives than you, you have a chance to become a CEO of the
throughout the company, are: ‘Dream. People. Culture’. company.’
The culture he has sought to create at AB InBev
is intense. He himself is away from home travelling
on business more than half the year. He claims no
hobbies, unless a daily 30 minutes on the treadmill
counts. He and his top team fly economy class except
on the longest haul flights and they all use mid-market
hotels. The top team’s desks are placed at the centre
of open-plan offices.
Lemann (with a 12.5 per cent stake in the company)
describes the culture of AB InBev thus: ‘You are
always running, always close to the limit. You’re working
very hard and being evaluated all the time.

11. What do you understand by Business model patterns (10 marks)

A business model describes a value proposition for customers and other participants, an arrangement of activities
that produces this value, and associated revenue and cost structures. When entrepreneurs in new start-ups have
entered old industries with new business models in recent years they have frequently changed industry dynamics and
competition in radical ways. The new models often involve more complex interrelationships than traditional models
and create value for participants besides the customer and generate profits for more parties than the seller. This
shows that both entrepreneurs and managers, whose organisations may be threatened by new startups, need to
understand business models.
BUSINESS MODEL COMPONENTS:
Value creation
What is offered to what customer segment?
• Customer needs and problems: value and benefit
• Target customer and market segment
• Value for other participants
Value configuration
How is the value proposition structured?
• Composition and selection of resources and activities
• Linkages between and system of activities
• Identifies what participants perform what activities
Value capture
Why does the model generate a margin?
• Revenue stream and payments
• Cost structure and drivers
• Apportion of value between stakeholders

ILLUSTRATION : Uber’s ubiquitous business model - The on-demand transportation service

that has revolutionised the taxi industry
With a market value of $50bn (£30bn, €37.5bn) The basic resources of Uber include their technological
Uber has been predicted to become the world’s dominant platform and app, but they do not own any
transportation company without owning a single cars or employ any drivers. Drivers own the cars and
vehicle. Since its start in San Francisco 2009, it has are self-employed and apply to Uber to become a
quickly expanded to over 60 countries and 340 cities driver. Uber’s activities are configured to match customers
worldwide. It now employs 4000, adds 50,000 with a nearby driver and car. In addition tomatchmaking, the
new partner drivers a month and makes one million platform and app includes pricing
trips each day. The company is growing at exponential and payment, car tracking and review systems. Uber
rates and has received $10bn of equity funding so far. thus structures the value for both customers and drivers
Co-founder and CEO Travis Kalancik claims that they through the development of sophisticated software
are doubling its size every six months. and algorithms that optimise matchmaking, pricing and
Uber’s smartphone app is at the centre of their business reviews for different cities and local markets.
model. Customers download the app, create an Uber captures their profit and value by typically
account and put in their credit card information. By taking a 20 per cent cut on all rides except for special
tapping the app they request a car and a notification promotions to customers and/or drivers and in areas
is sent to the nearest driver who can accept or reject where they face competition from similar services.
the ride and, if rejected, it is sent to another driver in Besides generating a margin, these revenues should
the area. Customers can track the estimated time of cover their expenses to cover R&D, technology development,
arrival and the meter via the app. Payment is made to marketing, local infrastructure and own local
Uber via the app with a later payment to the driver. employees in each city.
The customer gets an option to rate the driver and the Even though the business model has been a success,
driver also has the option to rate the customer. there are several significant challenges. The
Through the Uber app customers can search, book, UberPOP service has faced regulatory pushbacks in
pay and rate the taxi service. They are offered a convenient, several European countries and even been forced to
reliable and fast taxi service either through shut down in some markets. Uber is also facing an
luxury rides, priced less than conventional limousine increasing number of competitors with similar business
services (Uber Black), or through regular rides priced models; Lyft is a significant competitor in the USA and
less than normal taxi fares (UberPop or UberX). The Didi Kuaidi is ahead of Uber in China. As CEO Travis
value for drivers is an extra source of income and flexible Kalancik explains:
working hours. The review and rating system is a ‘We’re profitable in the USA, but we’re losing over
key difference compared to regular taxis. Customers $1 billion a year in China.’
can avoid drivers with low ratings and drivers can avoid
passengers with low ratings.
12. What is Corporate Strategy and diversification?

A central corporate strategy choice is about in which areas a company should grow.
Ansoff’s product/market growth matrix as follows is a classic corporate strategy framework for
generating fourbasic directions for organisational growth. It involves Market penetration, Product
development, Market development and diversification.
13) Analyse GEOGRAPHIC SOURCES OF ADVANTAGE - Location Advantage/Porter's Diamond
A competitor entering a market from overseas typically starts with considerable disadvantages
relative to existing local competitors, which will usually have superior knowledge of
the local market and its institutions, established relationships with local customers, strong
supply chains and the like.8 A foreign entrant must thus have significant firm-specific competitive
advantages for it to overcome these inherent advantages of local competitors. Tesco’s failure in the USA
is an example of this. After seven years and investments of about £1bn (€1.2bn, $1.5bn) in its US Fresh
& Easy business Tesco was forced to withdraw. Unlike in the UK, Tesco had limited competitive
advantage over the strong US domestic retailers. Internationalisation thus requires building on the
sources of sustainable competitive advantage that we have discussed earlier in Chapters 4 and 7
including the organisation’s unique strengths in resources and capabilities. While these firm- or
organisation-specific advantages are important, competitive advantage in an international context also
depends on country-specific or geographic advantages.

Countries and regions within them, and organisations originating in those, often benefit
from competitive advantages grounded in specific local conditions. They become associated
with specific types of enduring competitive advantage: for example, the Swiss in private
banking, the northern Italians in leather and fur fashion goods, and the Taiwanese in laptop
computers. Michael Porter has proposed a four-pointed ‘diamond’ to explain why some locations
tend to produce firms with sustained competitive advantages in some industries more
than others.
14. What is the significance of Social entrepreneurship ? Illustrate.(10 marks)
Entrepreneurship is not just a matter for the private sector. The public sector has seen increasing
calls for a more entrepreneurial approach to service creation and delivery. The notion of social entrepreneurship has
become common. Social entrepreneurs are individuals and groups who create independent organisations to mobilise
ideas and resources to address social problems, typically earning revenues but on a not-for-profit basis.
Independence and revenues generated in the market give social entrepreneurs the flexibility and dynamism to pursue
social problems that pure public-sector organisations are often too bureaucratic, or too politically constrained, to
tackle. Social entrepreneurs have pursued a wide range of initiatives, including small loans (‘micro-credit’) to
peasants by the Grameen bank in Bangladesh, employment creation by the Mondragon cooperative in the Basque
region of Spain, and fair trade by Traidcraft in the UK. This wide range of initiatives raises at least three key choices
for social entrepreneurs.

● Social mission. For social entrepreneurs, the social mission is primary. The social mission
can embrace two elements: end-objectives and operational processes. For example, the
Grameen bank has the end-objective of reducing rural poverty, especially for women. The
process is empowering poor people’s own business initiatives by providing micro-credit at
a scale and to people that conventional banks would ignore.
● Organisational form. Many social enterprises take on cooperative forms, involving their

employees and other stakeholders on a democratic basis and thus building commitment
and channels for ideas. This form of organisation raises the issue of which stakeholders
to include, and which to exclude. Cooperatives can also be slow to take hard decisions.
Social enterprises therefore sometimes take more hierarchical charity or company forms of
organisation. Cafédirect, the fair-trade beverages company, even became a publicly listed
company, paying its first dividend to shareholders in 2006.
● Business model. Social enterprises typically rely to a large extent on revenues earned in the

marketplace, not just government subsidy or charitable donations. Housing associations

collect rents, micro-credit organisations charge interest and fair-trade organisations sell
produce. Social entrepreneurs are no different to other entrepreneurs, therefore, in having
to design an efficient and effective business model (see Section 7.4). This business model
might involve innovative changes in the value chain. Thus fair-trade organisations have
often become much more closely involved with their suppliers than commercial organisations,
for example advising farmers on agriculture and providing education and infrastructure
support to their communities.

Social entrepreneurs, just like other entrepreneurs, often have to forge relationships with
large commercial companies. Harvard Business School’s Rosabeth Moss Kanter points out
that the benefits to large companies can go beyond a feel-good factor and attractive publicity.
She shows that involvement in social enterprise can help develop new technologies and
services, access new pools of potential employees, and create relationships with government
and other agencies that can eventually turn into new markets. Kanter concludes that large
companies should develop clear strategies with regard to social entrepreneurship, not treat
it as ad hoc charity.
15. What is Organic development ?
The default method for pursuing a strategy is to ‘do it yourself’, relying on internal capabilities.
Thus organic development is where a strategy is pursued by building on, and developing,
an organisation’s own capabilities. For example, easy Group’s creation of a new subsidiary,
easyFoodstore, was organic in nature. Drawing upon and customising internal capabilities,
developed from its highly successful startup easyJet, a low-cost competitor in the mature
airline industry, easyFoodstore aimed to undercut established supermarkets in a slow-growth
industry by offering every food item for 25p (€ 0.30, $0.37). This do-it-yourself (DIY) diversification
method was pursued as existing supermarkets were unlikely to want an alliance
that would dilute their brands and profitability and also support a new competitor in an
already very competitive industry.

There are five principal advantages to relying on organic development:

● Knowledge and learning. Using the organisation’s existing capabilities to pursue a new

strategy can enhance organisational knowledge and learning. Direct involvement in a new
market or technology is likely to promote the acquisition and internalisation of deeper
knowledge than a hands-off strategic alliance, for example.
● Spreading investment over time. Acquisitions typically require an immediate upfront payment

for the target company. Organic development allows the spreading of investment
over the whole time span of the strategy’s development. This reduction of upfront commitment
may make it easier to reverse or adjust a strategy if conditions change.
● No availability constraints. Organic development has the advantage of not being dependent

on the availability of suitable acquisition targets or potential alliance partners. There

are few acquisition opportunities for foreign companies wanting to enter the Japanese
market, for example. Organic developers also do not have to wait until the perfectly
matched acquisition target comes onto the market.
● Strategic independence. The independence provided by organic development means that

an organisation does not need to make the same compromises as might be necessary if
it made an alliance with a partner organisation. For example, partnership with a foreign
collaborator is likely to involve constraints on marketing activity in external markets and
may limit future strategic choices.
● Culture management. Organic development allows new activities to be created in the

existing cultural environment, which reduces the risk of culture clash.

The reliance of organic development on internal capabilities can be slow, expensive and
risky. It is not easy to use existing capabilities as the platform for major leaps in terms of
innovation, diversification or internationalisation, for example. However organic development
can be very successful and, as in the example of easyFoodstore, sufficiently radical
to merit the term ‘corporate entrepreneurship’. Corporate entrepreneurship refers to radical
change in the organisation’s business, driven principally by the organisation’s own capabilities.
1 Bringing together the words ‘entrepreneurship’ and ‘corporate’ underlines the potential
for significant change or novelty not only by external entrepreneurship, but also by reliance on internal
capabilities from within the corporate organisation. Thus for easyGroup, easyFoodstore was a radical entrepreneurial
step, taking it into a new industry in the hope that its low-cost model might change competitive
dynamics landscape and even grow the market in a similar way to some of its earlier start-ups.
16) Identify deliberate processes of strategy development in organisations including:
the role of strategic leadership, strategic planning systems and externally imposed
strategy.OR EXPLAIN STRATEGY DEVELOPMENT PROCESS(10 marks)

Deliberate strategy involves intentional formulation or planning. Such intentionality may take
different forms. It could be the intentionality of a strategic leader, for example a CEO or the
founder of a firm. It could be through a process of strategic planning involving many managers.
Or it might be experienced as the external imposition of strategy formulated elsewhere.

1) The role of the strategic leader

An organisation’s strategy may be influenced by strategic leaders: individuals or management
teams of individuals whose personalities, positions or reputations make them central
to the strategy development process. This could be because she or he is the entrepreneur
behind, or founder and owner of, the organisation. This is often the case in small businesses
and family businesses, but may also persist when a business becomes very large

Strategy, then, may be – or may be seen to be – the deliberate intention of a strategic

leader. This may manifest itself in different ways:
● Strategic leadership as command. The strategy of an organisation might be dictated by

an individual. This is, perhaps, most evident in single owner-managed small firms, where
that individual is in direct control of all aspects of the business.
● Strategic leadership as vision. It could be that a strategic leader determines or is associated

with an overall vision, mission or strategic intent that motivates othershelps create the shared beliefs within which
people can work together effectively and guides the more detailed strategy developed by others in an organisation.
IKEA’s founder’s, vision, ‘To create a better everyday life for the many’, has motivated and
guided subsequent generations of IKEA managers and staff.
● Strategic leadership as decision making. Whichever strategy development processes exist,

there could be many different views on future strategy within an organisation and, perhaps,
much, but incomplete evidence to support those views.
● Strategic leadership as the embodiment of strategy. A founder or chief executive of an

organisation may represent its strategy. This may be unintentional but can also be deliberate:
for example, Richard Branson no longer runs Virgin on a day-to-day basis, but he is
seen as the embodiment of the Virgin strategy (see Chapter 8 end case) and is frequently
the public face of the company

2) Strategic planning systems

A second way in which intended strategies develop is through formalised strategic planning:
systematic analysis and exploration to develop an organisation’s strategy. Larger organisations
and corporations often have quite elaborate strategic planning systems. In a study of
such systems in major oil companies, Rob Grant7 of Bocconi University noted the following
stages in the planning cycle:
● Initial guidelines. The cycle’s starting point is usually a set of guidelines or assumptions

about the external environment (e.g. price levels and supply and demand conditions) and
the overall priorities, guidelines and expectations of the corporate centre.
● Business-level planning. In the light of these guidelines, business units or divisions draw

up strategic plans to present to the corporate centre. Corporate centre executives then
discuss those plans with the business managers usually in face-to-face meetings. On the
basis of these discussions, the businesses revise their plans for further discussion.
● Corporate-level planning. The corporate plan results from the aggregation of the business

plans. This coordination may be undertaken by a corporate planning department that, in

effect, has a coordination role. The corporate board then has to approve the corporate plan.
● Financial and strategic targets are then likely to be extracted to provide a basis for performance

monitoring of businesses and key strategic priorities on the basis of the plan.
THE SCHEMATIC representation of how strategic planning
takes form in Siemens, the multinational industrial engineering company. Strategic planning
may play several roles and typically four are emphasised:

● Formulating strategy by providing means by which managers can understand strategic

issues, for example competitive positions and distinctive capabilities.
● Learning. Managers can benefit from planning if they see it as a means of learning rather

than a means of ‘getting the right answers’. Rita McGrath and Ian MacMillan emphasise
‘discovery-driven’ planning which focuses on the need for questioning and challenging
received wisdom and the taken for granted.
● Integration. Strategic planning systems may have the explicit purpose of coordinating

business-level strategies within an overall corporate strategy. Paula Jarzabkowski and Julia
Balogun9 also show, however, that they can provide a valuable forum for negotiation and
compromise and, thus, the reconciliation of different views on future strategy.
● Communicating intended strategy throughout an organisation and providing clarity on

the purpose and objectives of a strategy or strategic milestones against which performance
and progress can be reviewed. Communicating strategy is also a very first step towards
strategy implementation.

Henry Mintzberg has, however, challenged the extent to which planning provides such
benefits. Arguably there are five main dangers in the way in which formal systems of strategic
planning have been employed:

● Confusing managing strategy with planning. Managers may see themselves as managing
strategy when what they are doing is going through the processes of planning. Strategy is,
of course, not the same as ‘the plan’: strategy is the long-term direction that the organisation
follows.
● Detachment from reality. The managers responsible for the implementation of strategies,

usually line managers, may be so busy with the day-to-day operations of the business
that they cede responsibility for strategic issues to specialists or consultants. However,
these rarely have power in the organisation to make things happen. The result can be that
strategic planning becomes removed from the reality of operations and the experience
and knowledge of operating managers.
● Paralysis by analysis. Ann Langley of HEC Montreal showed that planning can get

bogged down in the interminable exchange of analytically-based reports between different

parties who do not agree or do not prioritise the same issues. Strategic planning can also
become over-detailed in its approach, concentrating on extensive analysis that, while technically
sound, misses the major strategic issues facing the organisation.
● Over-complex planning processes. There is a danger that the strategic planning process

is so bureaucratic that it takes too long or, because individuals or groups contribute to
only part of it, they do not understand the whole picture.
● Dampening of innovation. Highly formalised and rigid systems of planning, especially

if linked to very tight and detailed mechanisms of control, can contribute to an

inflexible, hierarchical organisation with a resultant stifling of ideas and dampening
of innovative capacity.
3) Externally imposed strategy
Managers may face what they see as the imposition of strategy by powerful external stakeholders.
For example, government may dictate a particular strategic direction as in the public
sector, or where it exercises extensive regulatory powers in an industry. In the UK public
sector, direct intervention has been employed for schools or hospitals deemed to be underperforming
badly, with specialist managers being sent in to turn round the ailing organisations
and impose a new strategic direction. Alternatively, government may also choose to deregulate
or privatise a sector or organisation currently in the public sector with large implications
for strategy development. For example, in Scandinavia, and in Sweden in particular, schools,
healthcare and public transport have been deregulated and private-sector companies are now
actively engaged in their strategy development.
17) Identify processes that give rise to emergent strategy development such as: logical
incrementalism, political processes and organisational structures and systems.(10 marks)

There are different views of emergent strategy

They are: logical incrementalism, strategy as the outcome of political processes and
strategy as the outcome of organisational systems and routines (PRIOR DECISIONS AND THE PRODUCT OF
ORGANIZATIONAL SYSTEMS). All three emphasise that strategy development is not necessarily the province of
top management alone, but may be more devolved within organisations.
18. EXPLAIN STRATEGY METHODS AND ILLUSTRATE: ACQUISITIONS, MERGERS
AND ALLIANCES:
19. Outline the three cornerstones of brand culture. Discuss which you
think is the most important.

Culture refers to the system of symbols and meanings that give human activities signifi cance. Throughout our lives
we are part of many different, often intersecting, cultures, such as national culture, music and literature cultures,
lifestyle culture and so forth. These cultures can have a profound infl uence on the attitudes, beliefs and values
that underpin our behaviours. Increasingly, it is recognized that brands too can have a powerful infl uence
on us because of the meanings they incorporate, and the ‘culture’ that evolves around them. According to
Jonathan Schroeder, one of the leading experts on the topic, brand culture concerns all the aspects and
connotations of brands that have made them an important part of our everyday lives and experiences

Three cornerstones of brand culture :

1) BUILDING BRAND CULTURE FROM THE INSIDE

Well-known entrepreneurs such as Phil Knight (Nike), Richard Branson
(Virgin), Anita Roddick (Bodyshop) and Steve Jobs (Apple) have built strong
corporate brand cultures through personal dedication and passion for their
enterprises. Their strong, charismatic personalities and missionary zeal
have the ability to enthuse employees with a sense of their vision for the
organization, often making employees as passionate about the enterprise
as the entrepreneurs are themselves. Such entrepreneurial vision intuitively
connects corporate identity to organizational mission, a key factor in building
a sustainable corporate brand culture.
- Co-Creation of Meaning with Employees is building brand culture from inside.

2) BUILDING BRAND CULTURE FROM THE OUTSIDE

The other key building block of
brand culture is how well the values that the organization embodies match
what its customers are seeking. Employees and management may share a
similar passion but if this is not also shared with the customer then the
brand will be doomed to failure. It is now well recognized that consumers
no longer seek just functional benefi ts from products and services, they
seek meanings that help them construct and maintain their identities
(Elliott and Wattanasuwan, 1998 ).
- Co-creation of Meaning with Consumers

3) CREATING ICONIC BRANDS:

In Doug Holt’s (2004) path-breaking book on cultural branding, he shows
how brands become iconic. Icons are representational symbols that embody
meanings that we admire and respect. They provide us with templates of
what to value and how to behave. In ancient times icons were mainly religious
fi gures (saints, gods, disciples and so forth) and stories about them
were circulated mainly by word-of-mouth, passed down through generations
in this way. According to Holt, iconic brands are the ones that best know how to
respond to key cultural tensions that are taking place in the wider sociocultural
environment. A good example of this is Brand Beckham ( Milligan,
2004). As a sporting celebrity, David Beckham is also a powerful brand that
embodies core values of dedication, down-to-earth humanity and an impeccable
sense of style. Proud of being a loving father, Beckham is well known
for being in touch with his feminine side, changing his hair styles regularly
and willing to be photographed in a sarong. The identity myth that he represents
helps young men carve a path between the perceived ‘sissiness’ of
the feminine, and the widespread disapproval of the ‘brutish ’ masculine.
CONCLUSION : There are many organic influences that marketers cannot control
as, for example, those that stem from organizational culture and employee
perceptions of the brand. Consumers also play a major role and often
co-create meanings which can be both positive and negative. The most successful
brands built strong cultures that incorporate these organic influences
and remain sufficiently flexible to adapt to changes in the macro environment.
The best brands tell great stories with which we can identify. However,
the more we look to brands to guide our beliefs and behaviours, the more they
are likely to be held accountable.

Buidling brand culture can be explained using the case study as follows:
Case study: Building a Mini
brand culture:
Like the Volkswagon Beetle, the Mini is an iconic car that
dates back to the rebel culture of the 1960s. Just like the
mini-skirt and the Beatles, the little car is an enduring symbol
of the ‘swinging sixties ’. The Mini was designed by the
British Motor Corporation (BMC) in response to the increasing
popularity of the smaller and fuel effi cient German ‘bubble
cars ’. Sir Alec Issigonis, the Mini’s designer, has become
a legend in his own right, famed for his innovative design
that allowed both performance and space despite the limitations
of size. Sir Alec’s history intertwines with that of the
Mini and many stories circulate around him that contribute
to the Mini’s brand culture and reinforce it as a triumph for
British design. Fans relate how Pininfarina, a famous Italian
carmaker, once asked Issigonis why he did not style the
Mini a little. The reply that Issigonis made to this competitor’s
taunt has now become part of the Mini myth: ‘It will
still be fashionable when I’m dead and gone ’ ( Beh, 2008 ).
The Mini was marketed as a fun car with a cheeky
image. ‘You don’t need a big one to be happy ’, ‘Happiness
is Mini shaped ’ and ‘Small is Beautiful ’ are some of its
famous straplines. Its brand culture has evolved around this
image, an image that made it ‘cool’ to drive a small, unpretentious
car. In challenging prevailing notions of respectability,
the Mini was very much a part of the countercultural
movement that emerged during the 1960s. Heralding the
idea of the ‘rebel sell ’ that we have previously referred to,
it stood for a youth culture that was hedonistic and funseeking.
The Mini was continually associated with major
celebrities throughout this decade. This enhanced its brand
culture signifi cantly, giving it celebrity status by association
with stars such as Peter Sellers, Ringo Starr, Britt Ekland,
Lulu and fashion designer, Mary Quant. When Marianne
Faithful drove to Mick Jagger’s drugs trial in her Mini, and
George Harrison’s psychedelic Mini appeared in the Beetles ’
Magical Mystery Tour, the Mini’s subversive connotations
were enhanced (wikipedia.com). Well-known dare-devil racers
such as Niki Lauder, Enzo Ferrari and Steve McQueen
drove Mini Coopers. In 1969 three Minis featured as getaway
cars in The Italian Job. The car chase that ensued,
with its daring stunt-driving that included descending a set
of steps, has become a classic. In 2003 three new BMW
MINIs featured in a remake of this fi lm.

20. Identify the potential ethical issues associated with each of the research approaches related
to videography and netnography. In each case discuss how these issues might be addressed.

VIDEOGRAPHY: Videography is a method which has recently emerged in consumer research.

Its increasing popularity has been brought about by improvements in video
technology and reductions in the price of equipment. It is now relatively
easy to use video cameras and produce reasonable results.

The technique of videography also offers considerable diversity, Belk and Kozinets (2005,
p. 129) identify three main applications in consumer research:
1. Videoing individual or group interviews
2. Naturalistic observation
3. Autovideography

Videography can also be really benefi cial in the corporate world. Recently the mobile phone company O 2
commissioned the video based market research company Voxpops International (see weblinks below) to use video
to illustrate their main customer segments. The aim was to bring consumers to life for internal staff and sales
purposes. The project involved twentyfour individual depth interviews with members of the O 2 consumer panel.
Each interview was fi lmed in the respondent’s home and additional time was spent filming the surroundings and
lives of the individuals. The original intention of the videos was to illustrate each segment in an exciting and
impactful manner. However, the depth interviews actually uncovered more information and insight than originally
anticipated, and the reports have been used as part of O 2’s annual research. Use of the fi nal videos has also
expanded to training courses to help O 2 marketers understand and refresh their knowledge of O 2 consumers
(Voxpops International).

NETNOGRAPHY AND ONLINE COMMUNITIES : Netnography is a relatively recent research approach that has
also been developed largely in the fi eld of consumer research. Kozinets (1998, 1999, 2002, 2006) and Catterall and
Maclaran (2001) have been key proponents of this approach.
Kozinets describes netnography as follows: “ Netnography, ” or ethnography on the Internet, is a new qualitative
research methodology that adapts ethnographic research techniques to study the cultures and communities that
are emerging through computer-mediated communications. (2002, p. 62).

Netnography has a number of distinct advantages over more traditional

forms of marketing research. Discussion in online communities is entirely
consumer directed, and thus offers insights into what really matters for consumers.
As such, Kozinets observes that netnography offers the researcher
‘a window into naturally occurring behaviours ’

There are also significant ethical issues associated with the collection
and use of this type of data. In netnographic research of a leading retailer,
Maclaran and Catterall (2002) usefully identify the practicalities and ethical
considerations involved. They observe the difficulties in gaining entry
to a community structured by its own internal norms, hierarchies and vernacular.
In particular they stress the importance of learning these rules and
norms before trying to enter into discussion. Thus, they suggest a form of
‘ lurking’ or observing exchanges for a period of time prior to participation.
They also observe that the community members may have a number of different
identities. In addition to the potential problems of deliberate fabrication,
this means that the same participant could be interviewed more than
once in a number of his/her different virtual identity guises. They also highlight
the challenges raised by the lack of paralinguistic cues and, because of
its asynchronous nature, the lack of spontaneity in participants ’ responses.
In discussing interpretation and representation.

The communities under study in netnography are ‘online communities’.

Rheingold characterizes these communities as ‘Social aggregations that
emerge from the Internet when enough people carry on those public discussions
long enough, with sufficient human feeling, to form webs of personal
relationships in cyberspace ’ (1994, p. 5). Thus he marks online communities
out from other more casual exchanges of news or information. Consumers
are therefore developing ‘relationships’ in online environments (see for
example Maclaran et al., 2006 ). However these relationships may often be
quite fleeting. Consumers may dip in and out of these communities, using
them as much as a source of information about a product or service, as for
the experience of social bonding they may offer. Kozinets (1999) identifi es
four types of user: tourists who have only a casual attachment to the community;
minglers who prioritize the social dimensions of the exchange and
are not deeply involved in the topic of interest; devotees who have strong
interests in the topic but lack social attachment to the group; and insiders
who have both strong ties to the group and the topic in question, they are
often longstanding founder members. Kozinets (2002) also identifi es fi ve different
types of virtual communities:
1. Boards – These function as electronic bulletin boards (usenets/newsgroups).
2. Web rings – These bring together thematically linked web pages,these may be independent web pages.
3. Lists – These are email lists distributed to users united by a common interest.
4. Multiuser dungeons – These are themed virtual locations in which interactions are structured by role playing
rules.
5. Chat rooms – These are un-themed virtual locations loosely organized around common interests.
A sixth type of online community not specifi cally mentioned by Kozinets, undoubtedly due to its relatively recent
popular emergence, is the virtual life world. As with dungeons, these are themed virtual locations or islands
where visual representations of users, called ‘avatars’, interact in three dimensional space.

BLOGS AND BLOGGING

Blogs are one of the more recent sites for marketing researchers ’ attention.
Blogs have been described as follows:
A blog (a contraction of the term “Web log ”) is a Web site, usually
maintained by an individual, with regular entries of commentary,
descriptions of events, or other material such as graphics or video
(Wikipedia).

VIRTUAL LIFE WORLDS

The marketing and consumer research potential of virtual life worlds, such as
Second Life, Entropia Universe and There.com, has yet to be fully explored.
Existing commentary suggests that they offer signifi cant opportunity for
understanding consumers. These life worlds take the self presentation found
in blogs to another level. Here individuals are represented by their own digital
‘avatars’ which may or may not resemble their offl ine appearance. These
three-dimensional virtual selves allow for signifi cant play and creativity in
identity formation. Recent research by the Global Market Institute (cited in
Novak and Anderson, 2007 ) found two main motivations for people to use
Second Life: ‘because it is a creative outlet for me ’ and ‘to escape real life,
which I am not satisfi ed with ’.
DATA CAPTURE AND DATA MINING
The impact that technological developments have had on marketers ’ ability
to both understand and infl uence the consumer is perhaps most clear
when looking at data driven marketing. Rather than trying to understand
consumers’ psychologically or sociologically based motivations for purchase,
marketers rely here on mathematics to predict the probability of a consumer
making a specifi c purchasing decision. In order to do this, companies collect
vast amounts of data on consumers ’ spending histories.

CONCLUSIONS
The fragmentation and dynamics of postmodern markets means that traditional
methods of researching consumers and markets are increasingly less
likely to produce the kinds of insights that marketers need to guide future
action. To this end, the approaches to consumer and marketing research
discussed in this chapter are being used in increasingly eclectic ways within
companies. As Ereaut (2004) observes:
The heroic qualitative researcher with diverse skills is giving way to
the specialist. Expert teams are being put together by agencies for
clients, of ethnographers, semioticians, futurologists, data miners,
discourse analysts and others working together. They analyse their
own and each other’s data. Qualitative and quantitative sources
get integrated, meta-analyses created, key implications drawn.(2004, p. 146)

21) With reference to the case study ‘Bottled water – A pure or guilty pleasure?’ above, critically
discuss the benefits and the pitfalls that have occurred as a result of globalization. Overall who
are the winners and losers in this process?
Case study: Bottled water – a pure or guilty
Claridges is one of London’s most famous hotels. In its own
words it is the ‘epitome of English style, the last word in
luxury’. Visiting statesmen often stay there and whilst doing
so use the hotel to entertain members of the British royal
family. Building on this exclusive reputation the hotel has
teamed up with one of the UK’s top chefs naming one of
its restaurants ‘Gordon Ramsay at Claridges ’, thus positioning
itself in the world of fi ne dining as well as that of luxury
accommodation. Whilst enjoying the delights of Claridges ’
celebrity created food you can choose to accompany your
meal with not just an impressive selection of wine but also
with a choice of waters. Claridges ’ water list provides a collection
of 30 of the worlds ‘fi nest ’ bottled waters, with the
most expensive costing the equivalent of £50 a litre. These
waters are selected from around the world, from sources as
exotic sounding as the icebergs of Canada, the volcanoes of
New Zealand and the Nilgris mountains in India.
Described in terms more familiar to those reading a
wine menu, the various waters make claims about their
taste, health benefi ts and the foods to which they are best
suited. Renaud Gr égoire, the director of food and wine at
Claridges, is quoted as saying ‘Water is becoming like wine.
Every guest has an opinion and asks for a particular brand. ’
The last item on the water list is London tap water,
which is available in a glass or a jug free of charge. Costing
less than 1 pence a litre, in a blind taste test this tap water
was actually rated higher than many of the more exclusive
brands on Claridges ’ list.
The consumption of bottled water is increasing rapidly
and is, in fact, the fastest growing sector of the soft drinks
industry. In the UK, two billion bottles a year were consumed
in 2003, an increase of 18% on the previous year.
Yet in the UK and other developed countries we have a
ready supply of water, available at a much more reasonable
cost in our taps. This growing preference for bottled water
is not because the water in our taps is contaminated or otherwise
unsafe to drink, or according to the blind taste test
quoted above, because it does not taste good. So, whilst tap
water is safe, functional and palatable, people are prepared
to pay a premium for water brought to them in a bottle from
Canada, New Zealand or India. How can this be explained?
Drinking bottled water has become a lifestyle choice.
Consumers might choose to drink it because they like
the bottle, the convenience, or the values with which they
perceive a particular brand to be associated. In short, the
increase in consumption of bottled water can be explained
by our concern with brands and the way in which they are
used to make statements about the people we are, and the
lifestyles we aspire to.
UK market just fi ve weeks after launching it.
Dasani’s fi rst stumbling block came when it was discovered
that the water they were selling was actually tap water
distributed by the Thames Water Company. Unlike some
of the waters on the market, which is bottled at (its natural)
source and known as mineral water, Dasani is purifi ed
tap water. Coca-Cola claims that this purifi cation process is
highly sophisticated, based on NASA spacecraft technology
and is termed reverse osmosis. Whatever it involves,
it enables Cola-Cola to take a product costing 0.03 pence,
process it, and charge 95 pence a bottle. The second, and
subsequently fatal, blow in the UK came when it was discovered
that Dasani had been contaminated with potentially
carcinogenic bromate. Thus, far from purifying the water,
Coca-Cola’s highly sophisticated process appeared to be
adding potentially harmful chemicals.
Whilst the purchasing of bottled water is an interesting
example of the strength of the branding phenomena,
its consumption to enable us to make statements about our
lifestyle is not without consequences. Much more expensive,
yet no healthier or safer than tap water, bottled water has
been criticized as being very environmentally unfriendly and
ethically questionable. Research for the BBC showed that
drinking a one litre bottle of water can have the same impact
on the environment as driving a car for a kilometre, in terms
of CO 2 emissions. Our taste for globally sourced water also
has consequences on local populations. Fiji water is one of
the waters featured on Claridges ’ menu. Abstracted by an
American company, from a water source discovered by the
government with the help of British aid money, this source
is used exclusively for bottled water and is not used by the
local population. The water is then bottled and shipped tens
of thousands of miles to exclusive outlets in the UK and
USA. Meanwhile, a third of Fijians do not have access to
safe drinking water and instead drink from local ponds and
creeks, a factor which may in part explain the high number
of cases of typhoid (a water borne disease) in Fiji each year.
Such fi ndings have led Professor Tim Lang, the UK
government’s natural resources commissioner, to state that
drinking bottled water should be made as unfashionable as
smoking, and that when a large percentage of the world’s
population do not have access to safe drinking water. It is
an example of one the gross inequalities in the world that we
can buy water in bottles and see this as progress.
22. IN ORGANISING AND STRATEGY -Analyse main organisational structural types in terms of their
strengths and weaknesses OR ADVANTAGES AND DISADVANTAGES. (10 marks)
23) Identify and assess different leadership styles, as related to strategic change.
(10 marks)
Case study question : 15 MARKS
1) Explain about "exploring the future" - Siemens' example (15 marks)
2) Case study question : Analyse the term Strategic Corporate Social Responsibility by understanding
the case study of 'Acess to Healthcare' - "integrating a CSR programme" in Coloplast.(15 marks)
3) Case study question : Analyse "implementing the strategy" to achieve the changes required for
profitable growth through Siemens example (15 marks)
4) Case study question : Explain the concept of 'always getting better' through Case study of Ryanair.
(15 marks)
5) Case study question : Analyse the influential busines trends - globalization and the increasing
market for sporting entertainment with the help of case study on " Indian Premier League - glitz,
glamour and globalization" (15 marks)
6) How far strategic management should be centralized or devolved? Explain with the help of
example on" Academies and Free Schools - the future of education". (15 marks)
7) Case study question : The 'pub' decline of a British institution - how the brewers fought back -
Analyse (15 marks)
8) CASE STUDY question:(15 marks)
- CONVERTING GOOD STRATEGIC THINKING INTO ACTION CAN BE A CHALLENGE. EXAME HOW AIRBNB
HAS ACHIEVED THIS BY CONSIDERING VARIOUS ELEMENTS, AND ITS ACHIEVEMENT IN 2016.

Case example: The rise of a unicorn – Airbnb (15 MARKS)

.
Airbnb in 2016
In 2016, Airbnb had over 1.5 million listings in 34,000
cities in 192 countries, with 40 million total guests. Anyone
anywhere in the world can list spare space from a
room to a tree house, from a castle to an island in Fiji,
with prices ranging from $50 to $2000 per night. Airbnb
received 30 million page views per month. The headquarters’
walls were covered with world maps dotted with hundreds
of coloured pins, charting world domination. Airbnb
was so popular that one of their rooms was booked every
two seconds.The company was now focused on the whole travel trip
with an emphasis on delivering local experiences. This
focus on hospitality was not just about where you stay,
but what you do – and whom you do it with – while you’re
there. To this end they introduced Airbnb Neighbourhoods
and local lounges, partnering with local coffee shops that
can offer free wifi, a comfortable setting and local guidebooks.
They also acquired a small start-up that connects
guests with locals who can answer their questions. They
also offer cleaning services.
Airbnb was providing a strong challenge to hotels with
prices 30–80 per cent lower than local operators. San
Francisco hotels were having to slash prices to protect
their occupancy rates. Incumbents in the industry fought
back by arguing Airbnb were dangerous and unsafe in
terms of health and safety and quality assurance as it was
unregulated. Although one must have a permit to rent for
under 30 days, San Francisco residents were still illegally
listing personal homes and apartments. Similar problems
were being experienced in New York where an ‘illegal hotel
law’ was passed preventing people from subletting apartments
for less than 29 days. There was also a question
mark over hosts not paying tax on earnings.
During 2016, Airbnb redesigned its website and apps
with subtle animations and flashier imagery. This huge
rebranding represented a transition from a hotel service to
a lifestyle brand. Airbnb wanted their logo to be seen on
a variety of products, houses and businesses, so people
understood that owners supported their ideal and their
brand. Airbnb’s focus was now firmly on ‘belonging’. This
rebranding may not have been before time, as competition.
9) CASE STUDY QUESTION : Carry out a PESTEL analysis of Alibaba at
the time of the case. (15 MARKS)
Case example: Alibaba – the Yangtze River Crocodile
“ eBay EBAY -1.38% May Be a Shark in the Ocean, But I Am a Crocodile in the Yangtze River”
In May 2015, the Alibaba Group – China’s largest
e- commerce company – got a new Chief Executive. Daniel
Zhang was 43 years old, with a career in the accounting
firms Arthur Andersen and PwC before joining Alibaba
in 2007. Zhang’s experience in international firms was
reflected in an early statement: ‘We must absolutely globalize,’
he said during a company-wide strategy session.
‘We will organize a global team and adopt global thinking
to manage the business and achieve the goal of global buy
and global sell. ’
Zhang’s appointment as CEO came at a difficult time.
Alibaba had undergone the largest ever Initial Public Offering
(IPO) on the New York Stock Exchange in September
2014, achieving a total valuation of $231bn (£138.6bn,
€173.3bn). But the first quarter of 2015 had seen profits
at half those of the same period in the previous year. The
Group’s share price was down a third from its post-IPO
peak. Zhang’s predecessor as CEO had been dismissed
after just two years in the job.
The man who appointed Zhang was Jack Ma, founder
of Alibaba just 16 years earlier. Alibaba started as China’s
first business-to-business portal connecting domestic
manufacturers with overseas buyers. Since then, the
Group had grown in many directions. 1688.com was
founded for business-to-business trade within China. Alibaba’s
Taobao Marketplace serves small businesses and
individuals. Tmall.com provides electronic shop fronts
to help overseas companies such as Nike, Burberry and
Decathlon to reach Chinese consumers. Juhuasuan offers
daily deals on everything from toys to laptops. There is
also Alipay, effectively under Ma’s personal control but
functioning as the Group’s equivalent to PayPal, which
processes 75 per cent of Group transactions. One way
or another, it is possible for Alibaba’s customers to trade
almost anything: the American security services have
even set up a sting operation on Alibaba to catch traders
selling uranium to Iran. At the start of 2015, Alibaba
had approaching 80 per cent of the e-commerce market
in China, the largest e-commerce market in the world,
and also had strong positions in Brazil and Russia. International
e-commerce represented nearly 10 per cent of
the company’s total sales of 76.2bn Yuan in the financial
year ending 2015 (about $12.3bn, £11.2bn, €8.2bn: see
Table 1 ).
Alibaba had always had an international bent. Founder
Jack Ma had started his career as an English language
teacher in the city of Hangzhou, not far from Shanghai.
As early as 2000, Ma had persuaded both the leading
American investment bank Goldman Sachs and the Japanese
internet giant Softbank to invest. The then ascendant
America internet company Yahoo had bought nearly
a quarter of the Group in 2005. Post-IPO, SoftBank still
held 32.4 per cent of the shares and Yahoo 15 per cent.
The Alibaba Group board counted as members Yahoo’s
founder Jerry Yang, Softbank’s founder Masayoshi Son
and Michael Evans, former vice-chairman of Goldman
Sachs. Even so, Jack Ma was ambivalent about Western
investors: ‘Let the Wall Street investors curse us if they
wish!,’ Ma had proclaimed at a staff rally. ‘We will still
follow the principle of customers first, employees second
and investors third!’
Strictly, overseas investors do not directly own stakes
in the Alibaba Group, instead owning shares in a shell
company – a so-called variable interest entity (VIE) – that
has a contractual claim on Alibaba’s profits. This VIE
structure is a common way for Western-listed Chinese
firms to get around Beijing’s foreign-ownership rules. But
the Chinese government could close the loophole at anytime,
and it gives foreign shareholders limited recourse
against abuses by Chinese companies’ managers. Ironically,
the most notorious VIE controversy so far involved
Alibaba’s Jack Ma, who in 2011 separated Alipay from
the rest of the Group without board approval. Ma said new
Chinese regulations forced him to make the move. Yahoo
was only told about the spin-off five weeks after it had
happened. A fund-raising round for Alipay’s new parent
company valued Alipay at nearly $50bn.
Alibaba’s relationship with the Chinese government is
hard to read. Jack Ma insists that he has never taken loans
or investment from the Chinese government or its banks:
he had gone to overseas investors instead. However, given
that a third of Chinese business activity is carried out
within state-owned enterprises, the government is bound
to be in close liaison with the dominant national player in
e-commerce. Ma explained his philosophy as: ‘Always try
to stay in love with the government, but don’t marry them.’
The Alibaba Group has built up its political connections.
Tung Chee-hwa, Hong Kong’s first chief executive after its
return to China, served on its board of directors. Alibaba
has also allied with several so-called ‘princelings’, children
of important political leaders. Princeling investors include
Winston Wen, son of a former Chinese premier; Alvin
Jiang, grandson of a former Chinese President; He Jinlei,
son of a former Politburo member and a senior manager
of the state Chinese Development Bank; and Jeffrey Zang,
son of a former vice premier and a senior manager at
China’sstate sovereign wealth fund, Citic Capital.
Given Chinese President Xi Jinping’s sweeping political
and economic reform campaign, there are no guarantees
of Alibaba’s position domestically. In 2015, princeling
investor He Jinlei’s older brother was under house arrest
because of accusations of corruption. The beginning of
the year had also seen the publication of an investigation
by China’s State Administration for Industry and Commerce
into counterfeit goods and fake listings on the
Group’s Taobao site, leading to a 10 per cent fall in Alibaba’s
share price. Jack Ma commented on his relations
with Chinese regulators: ‘Over the past two years, not only
was I a very controversial figure, but also these days, the
disputes are bigger and bigger.’ He continued, ‘I, too, felt
puzzled, sometimes wronged – how did things become
this way?’ Nonetheless, Ma promised to clean up the site.
Even so, just a few months later, fake Apple Watches were
on sale on Taobao weeks before their official launch in the
United States.
President Xi Jinping’s reform campaigns were partly in
response to changing economic conditions in China. After
three decades of double-digit growth, China’s growth rate
has slowed to around 7 per cent a year (see Table 1). Such
growth is very respectable by world standards. Besides,
faced with rising domestic concern about the environment,
President Xi was happy to restrain the expansion of
high polluting industries such as cement, coal and steel.
At the same time, the Chinese government was promoting
e-commerce as a key area for future economic growth.
However, there were causes for concern. Many local
authorities and firms had borrowed heavily on expectations
of higher growth, and there were fears that financial
institutions had over-lent. Some warned of a consequent
crash. Moreover, it was hard to see China’s growth rate
picking up again, on account of an ageing population and
the drying up of the traditional supply of young labour
from rural villages: by 2015, the Chinese workforce was
falling by about three million workers a year. Although
the government relaxed the famous one-child per family
rule in 2013, Chinese parents are still reluctant to have
more children because of the cost of housing and a good
education in the main urban centres. It is predicted that
by the early 2030s, about a quarter of China’s population
will be over 65 (against 17 per cent in the United Kingdom).
Slower economic growth in China overall is being
matched by some slowing in the rate of growth of the
Chinese e-commerce market (see Table 1).
At the same time, Alibaba faces greater competition. A
decade ago, Alibaba had seen off an attack by American
rival eBay in the Chinese market with a fierce price-war.
Jack Ma had proclaimed: ‘EBay is a shark in the ocean;
we are a crocodile in the Yangtze River. If we fight in the
ocean, we will lose, but if we fight in the river, we will
win.’ A combination of cultural, linguistic and government
policy factors kept Western internet companies at arm’s
length in the Chinese market: Google has been reduced
to a market share of about one per cent, while Amazon
eventually chose to list on Alibaba’s TMall site after a
decade pushing its own venture in China.
But now Alibaba’s home-market dominance is facing a
local challenge from the aggressive JD.com. While Alibaba
still depends on China’s unreliable postal service to get
its goods to customers’ doors, JD.com has been more like
Amazon in investing in its own distribution centres and
delivery services. As a result, JD.com can promise sameday
delivery in 43 of China’s biggest cities. Moreover,
JD.com is well-placed to benefit from the shift to smartphones
for e-commerce. Tencent, China’s largest social
networking and online games company, has taken a 15
per cent stake in JD.com, giving the challenger access to
more than 400 million users of its WeChat phone messaging
app. WeChat allows users to scan product bar
codes with their smartphone cameras to make instant
purchases through JD.com. Alibaba too has been entering
smartphone e-commerce, and in early 2015, smartphone
sales accounted for half of its retail Chinese sales, twice
the proportion of a year earlier. But smartphone screensizes
are less attractive to advertisers, an important
part of Alibaba’s traditional PC-based business model.
JD.com’s domestic growth in the year to 2015 has been
twice that of Alibaba’s. Although JD.com was still only
about 15 per cent of its rival’s size, founder and chief
executive Richard Liu has declared a goal of beating Alibaba
to the top position: ‘The competition makes the two
companies stronger. I’m actually enjoying competing.’
Thus Alibaba’s new chief executive Daniel Zhang faced
many opportunities and threats in 2015. There were
already promising signs in favour of the globalisation
strategy, though. Alibaba’s international flagship AliExpress
had rapidly taken the number one position in Russia
and the number three position in Brazil, with local users
delighted to have direct access to cheap Chinese goods.
One target now is the United States, only second to China
in market size. The Yangtze River crocodile is aiming to
attack the ocean sharks in their home seas.

10)Case study question : With an eye to elements of the cultural web

analyse the culture of Barclays’investment banking business.(15 marks)
Case example: Culture clashes at Barclays Bank
‘The chief problem was culture. as Michael Lewis,
author of Liar’s Poker, a commentary on Wall Street in
the 1980s, memorably put it, a commercial banker was
someone who had a wife, a station wagon, 2.2 children
and a dog that brought him his slippers when he returned
home from work at 6 pm. an investment banker, by contrast,
was a breed apart, a member of a master race of
dealmakers. he possessed vast, almost unimaginable
talent and ambition. If he had a dog it snarled. he had
two little red sports cars yet wanted four. To get them,
he was, for a man in a suit, surprisingly willing to cause
trouble.’
Investment banking was notorious for its ‘hard work
and hard play’. It was common for investment bankers
to work through the night, or at least to be seen to be
doing so – stories had it that they would own two suit
jackets so they could leave one on the back of the chair
to pretend they were still in the office working. It was also
a ‘can-do’ mentality which legitimated, for example, a
day trip to Australia for a one-hour meeting. No expense
was spared on flights, entertainment or accommodation
provided a big deal was signed. There was also much
Barclays Bank is an international retail and investment
bank based in London. It ranks amongst the ten largest
banks in the world and has 130,000 employees.
In the four years to 2015, it had four separate bosses:
the aggressive investment banker Robert Diamond
(‘Diamond Bob’), the reformist ‘Saint’ Antony Jenkins,
ex-insurance titan John ‘Mack the Knife’ McFarlane; and
lately another American investment banker James (‘Jes’)
Staley.
Quaker origins – and beyond
Barclays Bank traces its origins to 1690. Its early address in
Lombard Street – the heart of London’s financial district –
was ‘the Sign of the Black Spread Eagle’. The Spread Eagle
remains Barclays’ corporate logo even today. The bank’s
founding families were from the Quaker religious movement,
who emphasised sobriety, pacificism and high ethical
standards. Their descendants were still in important executive
positions in the mid-twentieth century: the last family
member served as Chairman during the 1980s. Reinforced
by mergers, the company became one of the big four retail
bankers in the UK. As the Financial Times observed:
‘In many ways the bank resembled a club and, as so
often with British clubs, the thing worked surprisingly
well despite its flaws … It was, in fact, the most innovative
of the British clearing banks in the post-war period.
In 1967 it installed the world’s first automated cash
teller machine … Barclays also came up with the first
plastic payment device, Barclaycard, still outstandingly
successful.’
Since the early 1800s, Barclays had been accepting
bills from other banks to reinvest in businesses – an
early form of investment banking. The investment banking
business received a huge impetus after the 1986
Big Bang, the liberalisation of London’s stock market.
Barclays embarked on acquisitions including a leading
stock broker, de Zoete Wedd. This became the core of an
investment bank, BZW. However, in common with other
investment banks who got involved in equities trading,
Barclays had great difficulty combining conventional and
investment banking in a coherent model. As the Financial
Times put it: excellence and stewardship. Jenkins became known in
the bank as ‘Saint Antony’, wearing crisp white shirts and
plain ties in the Barclays’ colour blue. In a saintly gesture,
Jenkins waived his first year bonus of £2.75m. He also
told his employees that anybody who did not like the new
culture should leave.
In his first strategic review, Jenkins examined the performance
and reputation of Barclays’ 75 business units.
The review concluded that 39 business units were in good
shape, 15 needed some attention, 17 needed serious
attention to avoid closure or sale and four would definitely
be sold or closed, one of which was its tax-avoiding Structured
Capital Markets unit. Basically though, investment
banking would remain intact.
Nonetheless, Jenkins promised to bring pay at the
investment bank down as a percentage of income to the
mid-thirties. During 2014, however, rival banks started
to poach top performers. Jenkins publicly warned of a
‘death spiral’ if pay did not match competitors’. The
investment banking pay ratio increased from 39.6 to
43.2 per cent.
Mack the Knife
In May 2015, John McFarlane took over as Barclays chairman
on the retirement of his predecessor. McFarlane had
acquired his nickname ‘Mack the Knife’ when he had
despatched his CEO within a few weeks of arriving as
chairman of Aviva, the large insurance company. Matters
quickly came to a head at Barclays when the board had
an off-site meeting in June at an exclusive country house
hotel near Bath.
The investment bankers were already disgruntled with
Jenkins. The latest irritation was when Jenkins had sent
a letter to all staff celebrating the bank’s 325th anniversary
without mentioning the investment banking division.
The Bath meeting was divided between Jenkins
and the investment bankers about strategy for the next
five years. McFarlane sided mostly with the investment
bankers. Consulting with the non-executive directors present,
McFarlane decided to dismiss Jenkins. McFarlane
declared himself as executive chairman, filling the CEO
role until another one could be put in place.
McFarlane did not commit himself to major changes
in strategy, only to focus more on execution. He declared
that Barclays was only halfway through its cultural change
‘journey’. But in almost the same breath, he added: ‘What
we really need is a high energy, supercharged performance
driven approach.’ He promised to double the Barclay’s
share price in three to four years.
The Staley strategy
James Staley joined Barclays as CEO at the end of 2015,
with McFarlane returning to a non-executive chairman
role. Although recently working at a hedge-fund, Staley
had spent his career mostly at JPMorgan, the largest bank
in the USA and an investment banking powerhouse since
the late nineteenth century. Staley quickly appointed former
JPMorgan colleagues as chief operating officer and
chief risk officer.
In March 2016, Staley presented his first strategic
review to shareholders and analysts. He committed himself
to simplifying the international businesses, including
the sale of the major African retail business and peripheral
international investment banking operations. In order
to strengthen the bank’s financial position, he cut the
dividend payments for the next two years by 50 per cent.
The Barclays share price fell by eight per cent on the
news. Barclays’ market valuation was little more than half
what it had been in 2014.

11) Case study question : Analyse The IKEA approach (15 marks) (please read completely attached pdf
file for IKEA approach)
This study explores the process of global sourcing through a case of the Swedish furnishing retailer IKEA
from an interaction perspective. With a point of departure in the streams of existing research on global
sourcing and the internationalization process of firms through networks, a research question is
proposed concerning supply network interactions as an influence in the global sourcing process. The
study uses an in-depth qualitative case study methodology, focusing on IKEA and its development of a
supply network for the PAX wardrobe system during the years 2003–2009. The findings draw on 29
interviews in Sweden and China, ranging from interviews with the supply management function of IKEA
to interviews with Swedish and Chinese suppliers and sub-suppliers. The findings show that the global
sourcing process is influenced by interactions and network effects between supply network actors. In
particular, we find that relationships between suppliers were identified and set up by IKEA, but cascaded
into deeper interactions amongst suppliers at different supply network tiers. Our study contributes to
global sourcing research in indicating the importance of interaction amongst supply network actors,
showing how the global sourcing strategy of one actor may significantly influence the sourcing strategies
of other actors. Global sourcing decisions therefore need to be understood and coordinated across
global supply networks.
Highlights
▶ Explores the global sourcing process from an interaction perspective through a case study of IKEA. ▶
Global sourcing process is influenced by interactions amongst supply network actors. ▶ Global sourcing
strategy of one actor may influence the sourcing strategies of other actors. ▶ Global sourcing decisions
need to be understood and coordinated across global supply networks.

12) CASE STUDY:

Three types of consumer collectives (15 marks)
1 Lower mill estate
Whilst there are many examples of lifestyle subcultures
based upon sport and leisure, a more recent phenomenon
is the emergence, in the UK, of middle-class lifestyle group-
ings whose purpose is to downshift to simpler ways of liv-
ing, of eating and of going on holiday, such that daily family
existence creates only a low carbon footprint. Alongside this
‘ new’ way of living is the rejection of mainstream ideas about
life that are based upon overtly expensive lifestyles. The
practices adopted by such middle-class families demand
different forms of consumer collectives, and hence different
shared practices. One particular example is the Lower Mill
Estate in the Cotswolds, which offers those who can afford
it the opportunity to buy a second (holiday) home, in a
safe, purpose-built, secluded, rural location. This traditional
model of a family holiday attracts a specifi c demographic:
affl uent, middle-class, young-middle-age couples with chil-
dren, who are drawn to the relatively closed and safe com-
munity lifestyle, affordable only to those who already have
similar lifestyles and incomes – in other words, ‘people like
us’. In that sense, they are a self-selected group based upon
already-common social and cultural capital; a particular
culture of consumption based upon shared and individual
practices. This consumption space offers the potential for
participants to enact a traditional middle-class holiday, with
their children experiencing an Enid Blyton-style childhood
of innocent adventures and cream teas. This is a m iddle-
class phenomenon that seems to arise in response to the
challenges of life in the 2000s, a time where excess and
waste have become unfashionable, and where the qualities
of thrift and austerity, at every level of existence, are socially
sanctioned.
2 A typical collectors ’ club
Around one-third of the UK population can be classed as a
collector ( Pearce, 1998 ), and collectors clubs abound in the
UK and in the USA. They may operate as online communi-
ties or they may operate more traditionally as a monthly club
meeting. The clubs typically form around objects that might
be deemed to be low culture (such as hatpins, old picture
postcards, 1960s glass, coins, stamps, militaria). Collectors ’
clubs are often run in a formal fashion, with membership
fees, guest speakers, special events at Christmas, nights
out in the summer and other social events. This programme
of activity requires that individuals adopt roles to enable the
club to operate. Typically, a club president will be elected
each year who provides leadership and ensures that pro-
cedures are followed. There may also be a secretary who
acts as the central contact for all members, who books
speakers and social events, and who sets and circulates the
agenda for the monthly meeting. Finally, a treasurer will be
responsible for book-keeping and administration of mem-
bers’ monies. These roles are taken very seriously but other
less formalized roles also exist: the elder statesman role
conferred upon the past president (usually but not exclu-
sively a male role); the social duty of providing tea and cof-
fee at the club meeting (usually but not exclusively a female
role). Evidence seems to show that in the UK, collecting is
an activity that cuts across social class, and is popular with
all socio-economic groupings ( Pearce, 1998 ). However, the
age profi le is skewed toward the middle-aged or young-
middle-aged sector of the population. The notion of a col-
lecting subculture has, however, been very fi rmly rejected
by Pearce (1998) , who argues forcefully that in her study
of UK collecting practices there was no evidence of any real
subcultural factors relevant to collectors and collecting: col-
lectors were simply proportionally representative of the pop-
ulation as a whole, merely a segment or a minority group of
the whole, and not a separate caste with personal or social
defi ning characteristics.
3 MMOGs (massively multi-player
online games)
Real life and virtual life, and thus real communities and
online communities, can become inextricably linked, as
has occurred in the activity known as ‘gold farming ’. In
many online games such as ‘World of Warcraft ’ and ‘Star
War Galaxies ’, a player needs to acquire an online currency
(gold) by performing, successfully, a number of menial, bor-
ing, low-skilled tasks, which are nevertheless necessary, but
very time-consuming. A player who can acquire gold quickly
may use that as currency to buy equipment or resources
(e.g. a virtual horse) which allows faster progression to
higher playing level, where more stimulating and demand-
ing tasks are to be found that require more sophisticated
skills. The fastest way to bypass the low-level tasks is simply
to acquire gold by other means, such as buying it from other
players. The going rate at the time of writing was £39.99
(real currency) for 5000 gold pieces, or virtual currency
(Mostrous, 2008 ). In his recent report on gold farming,
Heeks (2008) describes how a vast virtual economy has
grown, based upon the real-world activity of acquiring in-
game currency (gold). He also notes that this is a world that
operates under the radar of public attention, and indeed
under the radar of mainstream media and marketers. He
claims that this market, like the sale of digital pornography
(another form of online community), is an example of liminal
ICT work, that operates at the threshold, or even below, what
is deemed socially acceptable and legally permissible.
Indeed, the demand for gold in the online community is
such that ‘gold farmers ’ have emerged whose role in (real)
life is to recruit employees (typically young Chinese men) who
will then spend hours at the computer, performing the low-
level tasks that earn online gold ( Mostrous, 2008 ). The gold
can then be sold by the employer (the gold farmer) to online
gamers – for real money, that generates enough profi t to pay
the real-world workforce a real-world wage. Clearly this struc-
tured community is a microcosm of the real-life economy, but
it also creates an online hierarchy, a distinction in social posi-
tion between: (1) players, who do the higher-level tasks, i.e.
more challenging ‘work’, as part of their leisure time; (2) the
supporting community of workers, who are employed to do
low-level unskilled work, albeit online; and (3) the gold farm-
ers who are the intermediaries, employing the workers and
supplying gold to the players. So, perhaps unsurprisingly,
online communities yield social structures and social char-
acters not dissimilar to those found in traditional community
life. It is possible to link these differing levels of engagement,
and different collectives, with different positions on Maslow’s
(1954) hierarchy of needs, and indeed with different socio-
economic positions and access to resources.

CONCLUSION
Clearly, individuals have a signifi cant degree of freedom to create their
individualized identity through consumption, but the key message of this
chapter is the extent to which individual preferences and lifestyles are con-
strained or empowered by the infl uence of ‘others’, directly or indirectly.
These will usually be consumer collectives that the individual has elected to
join, and there may be a constellation of collectives to which each individ-
ual belongs. Bourdieu (1984) goes further, arguing that individuals demon-
strate certain enduring dispositions, in the way that they consume different
categories of products and services in their own life. Thus forming a process,

13) Gender and consumber behavior : Case study: Doing gender,

doing consumption – a study of the consumption of sex (15 marks)
Thinking through the consumption of sex is interesting
because, in contradistinction to the common assumption of
the consumer as female, with respect to this form of service
provision, gender roles have traditionally been seen as
operating ‘the other way round ’, with ‘men’ typical in their
role as consumers and women in the role of ‘woman-ascommodity’
( Roberts, 1998 ). Prostitution is argued to be
the oldest ‘commercial’ exchange relationship between
men and women, invariably shrouded in degrees of secrecy
because of its socially questionable nature (Grenz, 2005).
Pornography, on the other hand, is a somewhat newer phenomenon,
which has grown in prevalence and visibility with
the rise of mass media, and concomitantly, of second wave
feminism, which has offered vehement critiques of the ways
sexual portrayals of women are demeaning and oppressive
(Dworkin, 1981). It seems that as we have moved into contemporary
society, sex and commerce have combined in
new ways to confront everyday life in rather more explicit
ways than was the case in the past. In today’s society, representations
of sex and bodies are used in various guises
in advertising, in newspapers and magazines, on TV and
in fi lms, and it is probably true to say that boundaries of
what is acceptable and what not are continuously shifting.
Let us therefore consider how the ‘sexualization of culture ’
(Attwood, 2005 ) is in fact also a sexualization of consumer
culture.
Three salient and interconnected facets are part of the
story: the diversifi cation of the market for sex products and
services; the consolidation of a consumer attitude and rationalization
amongst male consumers of sexual services; and
the targeting of sexual products at women. Starting with the
fi rst theme, the transformation in the relationship between
sex and commerce was already implied in my comments
above on pornography. It is also apparent in Bernstein’s
account of the market for sexual services targeted at men:
During the last 30 years, demand for commercially
available sexual services has not only soared but
become ever more specialized, diversifying along
technological, spatial and social lines. The scope
of sexual commerce has thus grown to encompass:
live sex shows; all variety of p ornographic texts, videos,
and images, both in print and on line; fetish
clubs; sexual ‘emporiums’ featuring lap-dancing
and wall-dancing; escorts agencies; telephone and
cyber-sex contacts; ‘drive-through’ striptease venues;
and organized sex tours of developing countries
(2001, pp. 392 –3).
This ready supply, overwhelmingly by women 3 (though
no doubt organized in important ways by male entrepreneurs),
using their bodies in diverse ways in the cash nexus
connects, peculiarly enough, with our earlier theoretical
discussion on the extension of Bourdieu by feminist theorists.
Whilst Silva (2007) attempted to broaden the gender
applicability of Bourdieu’s theories by arguing for the inclusion
of emotional capital, Beverley Skeggs (1997) focuses
on how women use their bodies as a form of capital. This
partly explains the prominence of body enhancement products
and practices in our contemporary consumer culture,
though evidence from the merchandise of the early department
store warns us against exaggerating the novelty of this
phenomenon. Thinking about the body as a form of capital
moves different contemporary phenomena closer together.
Thus, the use by women of their bodies in the production
of pornographic imagery is perhaps not so different from
the female celebrity, who also extensively capitalizes on
her body and appearance, or, for that matter, the Victorian
woman, who not only uses her appearance to make a good
‘ match’ but then moves on to be the walking proof of her
husband’s wealth by self-decoration practices (Veblen,
1953). Sadly, the material need to utilize the body in this
way has given rise to the global sex worker ( Ehrenreich and
Hochschild, 2003 ), and her predicament appears in stark
contrast to the seemingly frivolous pursuits of sexual pleasures
in our contemporary society.
Whilst the diversifi cation Bernstein talks about is clearly
targeted at men, Attwood emphasizes the different ways in which
women are now also increasingly drawn into the market
for sexual products.
Women are increasingly targeted as sexual consumers.
… Women’s consumption of sexual commodities
is regarded as a huge growth area, and erotic
products – most notably lingerie and sex toys – are
increasingly visible in the West End, the high street
and the virtual world of the Internet. (2005, p. 392)
This raises the question whether the traditional demarcation
between ‘man-as-sex-consumer ’ and ‘woman-ascommodity’
is shifting, and in what ways. To answer that
question, let us turn briefl y to their arguments.
Bernstein discusses the ways in which the men, who
took part in her study, illustrated a contemporary consumer
disposition in relation to their use of commercial sexual services;
men thus positioned themselves very much as consumers
in their research encounter with her. According
to Bernstein, her research suggests a crucial shift from ‘a
relational to a recreational model of sexual behaviour, a
reconfi guration of erotic life in which the pursuit of sexual
intimacy is not hindered but facilitated by its location in
the marketplace ’ (2001, p. 397). Paying for such services
had ‘the benefi t ’ of making the sexual encounter clearly
bounded, devoid of the expectation for ‘more’, even though
the men also engaged the fantasy that the engagement
provided an ‘authentic interpersonal connection ’ (2001, p.
402). Exchanging money for sex was also seen by the men
as an equal exchange, in which neither party was exploited.
Interestingly, they also assumed the right to be a sex
‘ consumer ’, with the associated right to make choices
and introduce variety into their consumption practices.
Bernstein’s male research participants therefore ‘do consumption’
very much according to the contemporary image
of the sovereign consumer, and in so doing, they participate
in the p roduction of a gendered consumer domain which
positions women in contradictory ways.
By contrast, Attwood (2005) and Storr (2003) question
how women and female participation in sexual practices are
‘portrayed’ in this process of sexual commoditization. The
popular and much discussed rabbit vibrator is highlighted
by Attwood as an example of the incorporation of ideas from
second wave feminism (sisters are doing it for themselves)
into female sexuality. It prefi gures a more active female sexuality
and a more prominent presence of clitoral pleasures.
Meryl Storr, on the other hand, is not so optimistic in her conclusions
of the Ann Summers Party. She discusses the varied
bodily and social pleasures ‘to be had ’ at the party, with
games, banter, teasing, joking and the copious consumption
of sweets all making it ‘the ultimate girls ’ night in ’. 4 Yet, against
this backdrop of agentive female homo-sociality, she identifi es
the party’s ‘organizational regime ’ as prioritizing phallus centred,
vaginal penetrative heterosexual sex, which emphasizes
the female body as passive and receptive of sexual pleasures
(2003, p. 135) and which illustrates the rejection of homosexuality.
The Ann Summers Party is therefore also a gendered
consumer experience and like Bernstein, Storr sketches a
picture which illustrates the connections between gender
and the disparate positions ‘men’ and ‘women’ are allotted in
contemporary society.

14)CASE STUDY ON ORGANIZING AND STRATEGY - ONE SONY

Kazuo Hirai’s April 2012 appointment as Chief Executive of ‘One Sony’. The old structure had been based on
Officer of Sony Corporation would probably have surprised two big groups centred on Japan and predominantly in
his younger self. After all, Hirai had started out as Japanese hardware: the Professional, Device and Solutions Group,
translator to the American hip-hop band the Beastie responsible for about half of all sales; and the Consumer
Boys. He had then become a video games designer and Products and Services Group, responsible for another fifth
later led Sony’s PlayStation business in the USA. However, of sales. Alongside these two major groups were several
by the time he finally became CEO at the age of 51, stand-alone businesses mostly based abroad, including
Sony was in deep trouble. One of Hirai’s first moves was Music, Pictures (movies) and the Sony–Ericsson joint venture
to change Sony’s organisational structure. The aim was in mobile phones (see Figure 2).
to create a more integrated business – ‘One Sony’. With The new structure broke up the big groups, creating
some adjustments over time, Sony retained this basic 12 stand-alone businesses in all (see Figure 3). The
structure to at least until 2016. ending of the Sony–Ericsson joint venture in late 2011
Business background allowed the mobile phone business to be brought closer
Sony’s businesses spanned professional electronics such to the VAIO and mobile computing business. Sony’s
as semiconductors and medical devices, consumer electronics medical-related businesses, previously dispersed across
from televisions and mobile phones to computers multiple units but now targeted for rapid growth, were
and the PlayStation, together with ‘content’ businesses folded into a dedicated medical business unit led by an
such as movies and music. As such, Sony was pitching against executive at corporate level. The device and semiconductor
companies like the American success-story Apple businesses, including image sensors, became a
and the Korean high-technology giant Samsung. Despite single business group, Device Solutions. Sony Network
Entertainment was strengthened, with all Sony’s online
a proud history associated with such brands as the Sony offerings now included.
Walkman audio devices or Sony Trinitron televisions, Sony Hirai completed his structural changes by reinforcing
was being left far behind. By 2012, Sony’s stock price headquarters resources and oversight, with several new
was less than half it had been five years before, while senior management appointments. The aim was to leverage
Apple and Samsung were two or three times as valuable the company’s broad portfolio by creating exclusive
(see Figure 1 ). content for Sony’s own devices. A single corporate-level
Sony’s relative decline has not been for want of trying. executive was made responsible for User Experience
In 2003, the company had suffered the so-called ‘Sony (‘UX’), Product Strategy and the Creative Platform,
shock’, when both earnings and stock price had plunged charged with strengthening horizontal integration and
simultaneously following a weak response to cheaper Asian enhancing the experience across Sony’s entire product
electronics firms. The company reduced costs by cutting and network service line-up. The same executive would
its workforce by nearly 20 per cent. In 2005, Sony had oversee the mobile businesses, including smartphones,
taken the then-revolutionary step of appointing its first tablets and PCs (indicated by the box around the two
foreigner as CEO, Howard Stringer, a Welsh-American with relevant business groups). Digital Imaging and the
a background in the music and movie business. Stringer Professional
had announced that he would break down the company’s Solutions likewise came under the oversight of a
vertical management system, which he described as a single corporate-level executive. Hirai himself was to take
set of separate ‘silos’ with little coherence. He sought to direct responsibility for the Home Entertainment Business
integrate the company’s hardware business, based in Group, including the troubled television business,
Japan, with its various content businesses, led by music pledging to give it the majority of his time in the coming
and movies in the USA. Stringer’s slogan had been ‘Sony months.
United’. But Stringer had been neither an engineer nor a At an investors’ meeting in April 2012, Hirai went
Japanese speaker. It was reported that many of his diktats beyond strategic and structural changes:
to the Japanese hardware businesses were largely ignored. ‘The other thing is . . . the One Sony/One
The financial results for 2011–12 confirmed Stringer’s Management
failure. Without a striking new product to compare with concept. That is really important, because I made
the original Walkman or Trinitron and still heavily reliant sure
on an expensive Japanese manufacturing base, Sony’s that as I built my new management team, that
sales were down nearly ten per cent while profits were everybody
negative. The 69-year-old Stringer became Company in the team is 100 per cent fully committed and also
aligned as to what needs to get done and how we’re
Chairman. Hirai, Sony’s youngest ever CEO and the second
going to get that done. And so we have a lot of
non-engineer in a row, set to work.
discussions
New strategy and new structure internally amongst the management team. Once
Hirai insisted that the new Sony would be focused we make that decision, then everybody moves in the
predominantly same direction and we execute with speed. And I
on five key strategic initiatives. First of all was think
a strengthening of the core business, by which he meant that is another area that is quite different from some
digital imaging, games and mobile devices, including of
phones, tablets and laptops. Second, Hirai committed the restructurings or the changes that we have made
himself to returning the television business back to perhaps in the past.’ Results did not come quickly,
profitability, however. In November
after eight years of consistent losses. Third, Sony 2012, the Wall Street Journal observed of Sony’s new
would develop faster in emerging markets such as India organisational chart: ‘Far from providing clarity of purpose,
and South America. The fourth initiative was to accelerate the diagram should leave investors tearing their hair
innovation, particularly by integrating product areas. out. While new Chief Executive Kazuo Hirai shuffles the
Finally, Sony was preparing to realign its business portfolio, deckchairs on board the one-time electronics titan, Sony’s
with divestments expected of non-core businesses stock is plunging into deep waters.’
2012.
(e.g. the legacy chemicals business).
Hirai supported these strategic initiatives with a new Questions
organisational structure, designed to support his concept 1 Assess the pros and cons of Hirai’s structural
changes.
2 What other initiatives beyond structural change
might be necessary in order to create ‘One
Sony’?

Alternate questions : try answering them and be ready for the following questions too:
1) Critically evaluate macro-environmental themes and forecast their potential
impact upon a specific sector or industry with respect to consumer behavior,
competitors and supply chain management? 10 marks
2) What do you understand by emerging themes in marketing? 5 marks
3) Explain the methods of forecasting /predicting change? 5marks
4) Briefly explain what is supply chain management?
5) Explain macro environmental challenges in emerging markets illustrate? 10
marks
6) Contemporary economic opportunities/challenges in emerging themes
explain? 5 marks
7) What are the Contemporary business strategies in emerging themes? 10
marks
8) Explain the various technological factors in Potential macro-environmental
emerging themes? 10 marks
9) EXPLAIN BRIEFLY ABOUT emerging technologies and their impact on business SUCH AS
social networking/social media 3D printing, telepresence, Google analytics, Web 4.0, AND
T-Commerce.