Corporate Strategy 1 Assignment.

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NAME – Mohd Osama Sami

ENROLLMENT NO – 2000100401
SUBJECT – Corporate Strategy
CODE – BM 324
COURSE – BBA 3rd Year
GROUP – B

SUBMITTED TO – Dr. Habibuddin Sir

Q.1 – Briefly Discuss:

a) Policy - Policy is a deliberate system of guidelines to guide decisions and achieve


rational outcomes. A policy is a statement of intent and is implemented as a procedure
or protocol. Policies are generally adopted by a governance body within an
organization. Policies can assist in both subjective and objective decision making.
Policies used in subjective decision-making usually assist senior management with
decisions that must be based on the relative merits of a number of factors, and as a
result, are often hard to test objectively, e.g. work–life balance policy... Moreover,
Governments and other institutions have policies in the form of laws, regulations,
procedures, administrative actions, incentives and voluntary practices. Frequently,
resource allocations mirror policy decisions.

b) Strategy - Strategy is a general plan to achieve one or more long-term or


overall goals under conditions of uncertainty. In the sense of the "art of the general",
which included several subsets of skills including military
tactics, siegecraft, logistics etc., the term came into use in the 6th century C.E.
in Eastern Roman terminology, and was translated into Western vernacular
languages only in the 18th century. From then until the 20th century, the word
"strategy" came to denote "a comprehensive way to try to pursue political ends,
including the threat or actual use of force, in a dialectic of wills" in a military conflict,
in which both adversaries interact.

c) Tactic - The terms tactic and strategy are often confused: tactics are the actual means
used to gain an objective, while strategy is the overall campaign plan, which may
involve complex operational patterns, activity, and decision-making that govern
tactical execution. The United States Department of Defense Dictionary of Military
Terms defines the tactical level as "the level of war at which battles and engagements
are planned and executed to accomplish military objectives assigned to tactical units
or task forces.

d) Strategic Plan - Strategic planning is an organization's process of defining its strategy or


direction, and making decisions on allocating its resources to attain strategic goals.

Furthermore, it may also extend to control mechanisms for guiding the implementation of the
strategy. Strategic planning became prominent in corporations during the 1960s and remains
an important aspect of strategic management. It is executed by strategic planners
or strategists, who involve many parties and research sources in their analysis of the
organization and its relationship to the environment in which it competes.

Q.2 – Discuss with the help of an example approaches to strategic


decision making.

 Approaches to Strategic Decision Making –

I. Entrepreneurial Approach -  this approach is followed in strategic decision-


making by the organisations headed by family heads where by the organisation
is moulded to face the environmental changes. In the Indian context the
business groups such as Reliance, Jyoti Udyog, Nirma, Kothari Products,
Mofatlal Group, Dabur Products, T.T.K. Group, Infosys Technologies are
examples.

Features of Entrepreneurial Approach:

 Capitalising on the Opportunities.

  Centralized Decision-Making Power.

 Growth and Expansion Orientation.

  Efforts and Rewards are Well Balanced.

II. Adaptive Approach - This adaptive approach is reactive rather than proactive
and tries to collect and mix the variant factors influencing the strategic
decisions. It touches the very root of changing context of decision-making.
This approach is very common in case of public sector enterprises where
decision-making power is divided amongst different constituents. It is a matter
of governing and managing these enterprises where the objectives are social
service orientation hinged by profit making. That is, though the aim is to meet
the social needs the government enterprises not barred from making profit.

Features of Adaptive Approach:

  It is an Exercise of Problem-Solving.

 Dominance of Decision Making Process by Constituents.

 Priority Based Decisions.

III. Planning Approach - This approach calls for making decisions in anticipation
of the future state of affairs where the organisation is prepared to face it
boldly. That is, strategic decisions are based on socio-economic purposes of
the organisation, value of top management, external opportunities and
problems on one hand and organisations strength and weaknesses on the other.
It is widely used by multi-nationals which have formalised and structured
strategic decision-making process.

Features of Planning Approach:

  Analysis of Factors Influencing a Strategy.

 Systematic and Structured Approach.

  It is a Comprehensive Process.


Q.3 – .Discuss with the help of live example from the industry the
following –

a) ETOP – Environmental Threat and Opportunity Profile Analysis of PepsiCo

Threats in PepsiCo:

1. Intense Competition – Intense competition from other beverage and snack


companies, especially Coca Cola, threatens PepsiCo’s current position in the market.
Coca Cola holds a 46.3% market share, while PepsiCo holds the second position with
a 24.37% share.

2. Labour Issues – Labour issues such as disputes, unionization efforts, and high
turnover rates pose a threat to PepsiCo’s operations and profitability. These issues can
disrupt production and supply chain operations, increase labour costs, and lower the
quality of products and services.

Opportunities in PepsiCo:

1. Sparkling Water market – PepsiCo has opportunities to grow in the sparkling water


market by expanding its product offerings with unique flavours, leveraging its
distribution channels, and investing in marketing campaigns to promote the health
benefits of its product.

2. Acquisition – Acquisition presents an opportunity for PepsiCo to expand its product


offerings, diversify its revenue streams, and enter new markets, but come with risks
and must be carefully evaluated to ensure they align with strategic goals and deliver a
positive return on investment.

b) Value Chain Analysis – Below is the Value chain Analysis of Samsung

Primary Activities

Primary activities have a direct relationship with customer satisfaction. Any improvement in
these activities can induce changes in product quality, pre-sale service, and transportation
success. Value chain activities that collectively create the group are explained below. 

 Inbound Logistics – The inflow of goods for product creation is related to inbound
logistics. Samsung has a 2500 supply chain. For that reason, Samsung value
chain (Analysis) keeps the inbound logistic strategy strong. Mostly, its suppliers are in
Asia. Yet, some of them are present in the US and other countries as well. Samsung
Electronic Logitech (SELC) is the logistics management sub-corporation for the firm.
It separated from the company's logistics arm in 1998.

 Operations – From 1938 to 2022, Samsung stepped into various new areas of product
businesses. Collectively, it runs seven big manufacturing stations located in different
cities. Besides that, the firm has research and development sections- referred to as
R&D sections. These are present in 11 different locations that help create new and
better products.

 Outbound Logistics – Outbound logistics comes from the flow of completely


manufactured goods from a company to customers and the market. The subsidiaries
hired by Samsung take care of outbound logistics transportation mechanisms. SELC
and Samsung SDC are principal subsidiaries that help the corporation manage
logistics.

 Marketing and Sales – Samsung has been competing with top brands and crossed
them in the past. All that happened because of an excellent marketing strategy and
sale temptation. Mainly the firm uses digital marketing procedures to promote its
products. In addition, the corporation also uses CSR methodology to maintain a solid
reputation.

 Service – The global sellers and distributors of Samsung provide pre-sale service.
They also have exceptional customer service, providing an after-sale servicing
feature. Only India has 3000 service centers for Samsung, making it a customer-
oriented firm. Plus, you can schedule an appointment through several channels that
help you build unbreakable confidence.

Support Activities

Same as the name calls out; these activities are there to support the primary activities and
their causes in Samsung value chain. Support activities are specially for assisting features as
they help improve the existing methodologies and strategies.

 Firm Infrastructure – Ki Nam Kim, the CEO of Samsung, has distributed the
businesses into four different operational divisions. The vice president and president
of the company collectively operate the company by dividing sub-departments each
other. Ki Nam Kim directs the semiconductor, device solutions, and memory
business. However, President Hyun Suk Kim heads the consumer technology
business.
 Human Resources – The HRM of Samsung not only focuses on training employees
but also helps them grow fast throughout their careers and stay satisfied with their job.
The company focuses on bringing high equity to women inside the empowerment
organization. Besides that, the company offers competitive salaries that help build
loyal and trusted employees.

 Technology Development – Technology is the most important part of Samsung value


chain. It needs to stay aligned with the advancing technology; otherwise, it will be left
behind. For that reason, Samsung has built numerous research and development
sections that invest hefty cash in developing technological evolution.

 Procurement – A constant supply of products is possible only if Samsung has a


continuous supply of raw materials. Samsung has 216 bases around the world in 76
countries. Besides that, the firm's international procurement center also helps manage
supplier and receiver connections.

c) SWOT Analysis – Below is the SWOT Analysis of TATA Motors

Strengths of TATA Motors

 Recognized brand image –  Tata Motors is a well-recognized global automotive


brand. The company itself sells its vehicles under various brand names like Jaguar
Land Rover, Tata Hitachi, Tata Daewoo, Tata Marcopolo etc. This has not only
expanded the company’s market but has also increased the brand value and the brand
image of the company
 Research and Development –The company spends more than 23% of its complete
budget on research and development. It shows the company’s dedication to its
productivity and growth. Tata Motors has also established its research centres in
countries like the UK, India, Spain, and South Korea.

Weaknesses of TATA Motors

 Greater operational costs and a lower rate of profits –  Though the company has
the acquisition of brands like Jaguar and Landrover which were successful in the
initial years it made the company more dependent on its subsidiaries. This resulted in
a decrease in the overall sales and profits of the company over the last five years.

 Controversies –  Back in 2008 the company launched the construction work of Tata
Nano in India, Singur and West Bengal. During that time the West Bengal
government interfered and controlled the land under the Land Acquisition Act 1894,
where a factory was going to be built by the company. This happened because West
Bengal wanted Tata Motors to establish a company within the state.

Opportunities of TATA Motors

 Digital Marketing – We are all familiar with the terms of digital marketing and
the benefits of marketing a product digitally. Almost every top brand and company
is using social media to connect with their target audience. Tata Motors should also
take full advantage of all the platforms of social media and increase its
engagement with its target audience. Which will help the company to get proper
feedback about improving the products and services.

 The Supply chain and service – The best way for the company to enlarge its market
further is by expanding its supply chain system and distribution network in its current
market.
Threats of TATA Motors

 Pandemic – Pandemic was not only deadly to health but also to the economy as well
all around the world. During the pandemic,- people lost jobs and lots of companies
went out of business. A pandemic will always be a big threat to all the companies and
businesses out there.

 Competitors – Tesla, Honda, Hyundai, BMW etc are big competitors of Tata Motors.
Competitors’ market share growth and customer’s market expansion result in lower
market share for the company.

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