MANAGEMENT CONCEPT AND PRACTICE

CHAPTER ONE
PLANNING FUNCTIONS AND DECISION MAKING
 Chapter Objective

After studying this unit, you should be able to:

Explain Planning Functions and Decision making,
Describe the basic planning functions, Decision making and
types of planning .
Understand significances and nature of planning functions and decision
making
Types of decision making ,processes of decision making
 Chapter one
1. 1 Historical Background of ACSI
 Amhara Credit and Savings Institute (ACSI) was initially established in
october 1995 as a department with the former Ethiopia Relief
Organization (EGO ),the current organization for Rehabilitation and
Development in Amhara (ORDA), it was licensed by the national
Bank of Ethiopia as a micro finance intermediary share company in
April 1997.
Its primary mission is to improve the economic situation of the low-
income, productive poor in the Amhara region, primarily through
increased access to lending and savings services. The majority of poor
people in rural areas around the world lack access to financial services.
2 . Government and ownership
ACSI has governed by the General Assemble ,the Board of Directors
,Auditors and a managing Director. The shareholders are ORDA (35
%),the regional government (25% ),Amhara Development Association
(ADA),(20% ).Amhara Women's Association (AWA ) (10% )and
Endeavour (10% ).
Cont…
(3 . Organizational Structure
ACSI has three structure layers ;Head office ,Branch office \Micro bank
and sub - branch office .
4 . Vision
ACSI aspires to see people of the region liberated from gripes of abject
poverty with all the power determining their future in their.
5 . Mission
It is to improve the economic situation of low income, productive poor in
Amhara region, primarily through increased access to lending and
saving services.
6 . Objectives of ACSI
Promoting agricultural and nonagricultural economic activities
Alleviating poverty, and stimulating the region’s economic growth,
giving priority to rural and remote communities, particularly women.
Significantly increasing clients in cone and asset position
 Cont.....
7 . Human resource
ACSI, by the end of the 2009 (G.C ), fiscal year ,and a total of
employees with 2,985 various educational qualification and levels
at 58 branches. Of these, 56% are males.
8 . Values and principles
Loyalty to clients
Respecting rural values, economic and social settings, and settlement
and gender issue.
Commitment to improve the living standards of the population.
Learning from practice.
Anti-corruption stand.
Exemplary accomplishment
9 . Targeting principle
Due to the scarcity of loanable fund and the limited capacity to meet
all the demands in the region, ACSI entertains targeting
Cont..........
10 . Financial products
The major financial product ;credit ,saving ,micro -insurance
,fund administration and money transfer.
11 .Loan Size
A . Through group collateral
Minimum = 300 birr for each member
Maximum = 5000 birr
B. Individual loan (through asset collateral)
Minimum = 5001 birr
Maximum = 3 million
CHAPTER -TWO

LITRATURE - REVIEW
Introduction;
A basic management function involving formulation of one or more
detailed plans to achieve optimum balance of needs or demands with the
available resources.
 Planning is the first function that all managers engage in;
It lays the groundwork for all other functions. Planning usually
Identifies the goals of an organization ,It maps out courses of actio
The decision-making process, in a business context, is a set of step
taken by managers in an enterprise to determine the planned path
for business initiatives and to set specific actions in motion.
1 . The Concept of planning
 Planning is the most basic of all managerial functions. It is the
process by which managers establish goals and define the methods
by which these goals are to be attained. Planning involves selecting
missions and objectives and the actions to achieve them. Planning:
is a road map which takes us toward our goal. It indicates course of
action. Shows commitment of the organization, resource and time
allocation.
 Planning is the fundamental management function, which
involves deciding beforehand, what is to be done, when is it to be
done, how it is to be done and who is going to do it.
 In general, planning involves determination of objectives,
formulation of programs and courses of action for attaining them,
developing of schedules and timing of action
Cont…
Planning tries to answer the following basic questions:
Where are we now?
Where do we want to be?
What is the gap?
how (the specific steps or methods to reach the goals
The following figure can summarize the basic questions that address the
function of planning.

( 3) Gap?

[Current status] 4) How to bridge [Future image]

1) Where are we now? 2) Where we want to be?

1.2 The Nature of Planning
The nature of planning can be understood by examining its four major
aspects. They are;
A . It is a contribution to objectives,
B . It is primacy among the manager’s tasks.
C . It is pervasiveness, and
D . The efficiency of resulting plans.
E . Plans are arranged in a hierarchy
A . The contribution of Planning to the Attainment of Objectives ;
Since plans are made to attain goals or objectives, every plan and all
its support should contribute to the achievement of the organization’s
purpose and objectives.
B . Primacy of Planning;
That planning is the prime managerial function is proved by the fact
that all other functions such as organizing,
Cont…
staffing, leading and controlling are designed to support the
accomplishment of the enterprise’s objectives.
C . Pervasiveness of Planning;
Planning is a unique and universal function of all managers. The
character and scope of planning may vary with each manager’s
authority and with the nature of the policies and plans outlined by
superiors, but all managers must have some function of planning.
D . The Efficiency of Plans should not only be effective, but also
efficient. The effectiveness of a plan relates to the extent to which it
accomplishes the objectives.
E . Plans are arranged in a hierarchy: Plans are first set for the
entire organization. Such plans are called corporate plans. The
corporate plan provides the framework for the formulation of
divisional, departmental and sectional goals.
1 .3 Planning Process
The following are the steps.
 identifies the goals or objectives to be achieved,
 formulates strategies to achieve them,
 arranges or creates the means required,
 implements, directs, and monitors all steps in their
proper sequence.
. Establishing Clear-cut Objectives: An objective
provides the direction for all managerial functions;
especially planning.
 Establishing the Planning Premises and
Constraints: Premises are assumptions about the
environment in which the plan is to be carried out.
 Cont
Strengths are internal competencies possessed by the
organization in comparison with the compotators.
Weaknesses are attributes of the organization which tends to
decrease its competence in comparison to its competitors.
Threat is reasonably probable events which if it were to occur,
would produce significant damage to its organization.
Opportunity is a combination of circumstances, time, and place
which if accompanied by a certain course of action on the part of
the organization, it likely to produce significant benefits.
Identifying Alternative Courses of Action: Alternatives are
course of actions that are available to a manager to reach a goal.
 Choosing the Proposed Plan: Selecting the course of action is
the point at which the plan is adopted-the real point of decision-
making .
Cont…
Monitoring and Evaluating the Implementation:: The planner/manager
should monitor/supervise how the implementation is going on and should
be certain that the plan is implemented as it was intended.
Forecasting
Planning is deciding about what is to be done in the future.
1 .3 The characteristics of planning
First and foremost managerial function: Planning provides the base for
other  functions of the management, i.e. organizing, staffing, directing and
controlling, as they are performed within the periphery of the plans made.
Goal oriented: It focuses on defining the goals of the organization,
identifying alternative courses of action and deciding the appropriate
action plan, which is to be undertaken for reaching the goals.
Pervasive: It is pervasive in the sense that it is present in all the segments
and is required at all the levels of the organization.
 Cont
Continuous Process: Plans are made for a specific term, say for a
month, quarter, year and so on. Once that period is over, new plans
are drawn, considering organization's present and future
requirements and conditions
Intellectual Process: It is a mental exercise at it involves the
application of mind, to think, forecast, imagine intelligently .
 Futuristic: In the process of planning we take a sneak peek of
future.
G . Decision making: Decisions are made regarding the choice of
alternative courses of action that can be undertaken to reach the goal
1.4 Importance of Planning
Without planning, business decisions would become
random, ad hoc choices.
Cont…
It helps managers to improve future performance,
It minimizes risk and uncertainty, by looking ahead into future.
It facilitates coordination of activities.
It states in advance, what should be done in future, so it
provides direction for action.
It uncovers and identifies future opportunities and threats.
It sets out standards for controlling
It provides direction and sense of purpose
 Reduces uncertainty and anticipates the future
Provides basis for controlling:
Promotes efficiency:
Provides the base for cooperative coordinated efforts:
Developing managers
Provides guideline for decision making:
 1.5 Types of Plans
Plans can be classified on different bases or dimensions;
A . Scope/breadth dimension
B . Time dimension, and
C . Use/repetitiveness
This dimension creates hierarchy of plans. Based on scope we can classify
plans into: strategic, tactical and operational
Strategic plan:
Strategic planning is the determination of the basic long-term objectives of
an enterprise
 and the adoption of courses of action and allocation of resources
necessary to achieve these goals.
The characteristics of strategic plans.
They take longer period of time.
They tend to be top management responsibility
They address such issues as: how to allocate resources
Tactical Plans
Tactical plans are specific and more goal oriented than strategic plans. Middle
level management in consultation with lower level management develops
them. It is narrow scope than strategic plan and wider than operation plan;
but more detail than strategic plan and less detailed than operational plan.
Operational Plans:
Operational planning is the process of determining how specific tasks can
best be accomplished on time with available resources. This is also done to
cover the day-to-day operations of an organization.
Operational plans have relatively short time frame (<1 year). It is the most
detailed and narrowest plans compared to the above two.
B . Plans Based on Use Dimensions;
Use-based plans indicate whether we can use the plans repeatedly for
uniformity or for a single period. Based on use dimension, plans could be
further classified in to single-use plans and standing use plans
 Single-Use Plans: -
These types of plans focus on relatively unique situations within the
organization and are used only once. Dissolved when these have been
accomplished. These plans can be subdivided into:
A . Programs: Programs are plans of action followed in proper sequence
according to objectives, policies, and procedures.
B . Projects:. A project is a particular job that needs to be done in
connection with a general program. So a single step in a program is set
up as a project.
C . Budget: A budget is a statement of expected results expressed in
numerical terms.” It is sometimes called the enumerated program and
most commonly expressed in terms of money i.e. Rupee, Euro,
Dollar ,
2 . Standing-Use Plans: -Standing plans are drawn to cover issues that
managers face repeatedly. Managers may, therefore, design a standing
plan to be implemented automatically each time an employee is late
Cont…
A . Policies: Policies are, in most cases, standing plans. As a matter of
fact, policies provide guidelines for repetitive actions. Policies help
decide issues before they become problems .
B . Procedures: Procedures establish customary ways for handling
certain activities like hiring a clerk, promoting employees, obtaining
a loan from a bank. A procedure is a series of related steps or tasks
expressed in chronological order for a specific purpose.
C . Rules: Rules Like policies, rules, too are standing plans that guide
action. Rules are statements that a specific action must or must not be
taken in a given situation.
C . Plans Based on Time Dimension;
Based on time frame or length of them, we can classify plans into
three; these are
Long-term Plans: - These plans establish long-term goals and work
out strategies, policies and programs to achieve the goals. They
extend beyond five years.
Cont…
Medium-term Plans: -These plans are usually made to support
long-term plans. They cover a period of more than one year, but less
than five years.
Short-term Plans: - Generally such types of plans are made to
achieve short-term goals . These plans are action-oriented and the
responsibility of lower level managers Example Short-range plans
usually cover a period of one year or less, in most cases.
1.6 Limitations of Plans;
Major planning limitations are classified into two categories.
A . Internal inflexibilities
Major internal inflexibilities that may limit planning are related to
human behavior ;
Psychological Inflexibility:
 Policy and Procedural Inflexibility
 Capital Investment:
 Cont...
B. External or Imposed Inflexibilities:: These
inflexibilities usually emerge from sources outside of the
organization. Some of the major external inflexibilities
include:
Political Climate
Labor Unions
 Technological Change
 Sociological and Cultural Factors
 Educational Variable
Societal Marketing
Effective internal marketing must be matched by a strong sense of
social responsibility. Companies need to evaluate whether they are
truly practicing ethical and socially responsible marketing. Several
forces are driving companies to practice a higher level of corporate
social responsibility: rising customer expectations, changing
employee expectations, government legislation and pressure,
investor interest in social criteria, and changing business
procurement practices.
The issues are complicated: It is not easy to draw a clear line
between normal marketing practice and unethical behavior. At the
same time, certain business practices are clearly unethical or illegal.
These include bribery or stealing trade secrets; false and deceptive
advertising; exclusive dealing and tying agreements; quality or
safety defects; false warranties; inaccurate labelling; price-fixing or
undue discrimination; and barriers to entry and predatory
competition. (Philip Kotler& Kkevin Lane Kelle)
Diagram of holistic marketing
Holistic marketing must meet all the challenges
of 21th century which are:

Globalization
Changing technology
Customer empowerment
Customization
Customer relationship marketing
customer life time value
target marketing
integrated marketing communication
channels as partners
every employee as marketer
Meanings of international marketing
International marketing is simply the application of
marketing principles to more than one country. However,
there is a crossover between what is commonly expressed as
international marketing and global marketing, which is a
similar term. For the purposes of this lesson on
international marketing and those that follow it,
international marketing and global marketing are
interchangeable.
International marketing is simply the application of
marketing principles to more than one country.
At its simplest level, international marketing involves the
firm in making one or more marketing mix decisions across
national boundaries. At its most complex level, it involves
the firm in establishing manufacturing facilities overseas
and coordinating marketing strategies across the globe.
Reasons Why Companies Go Into International Marketing
By George N. Root III; Updated September 26, 2017, There
are several reasons why companies go into international
marketing, and business owners need to recognize these
reasons to determine if it is their time to think global.
1. Regional Standardization
One of the reasons a company gets into international
marketing is to help establish a standard for particular
regions, according to marketing expert Lars Perner. For
example, your customers in Europe may not have access to
an accessory that you can make available in Asia. So your
European marketing will work to either offer a substitute to
that accessory or let customers know that they cannot get
that accessory in their part of the world.
 Resources
If you are planning global expansion to take advantage of
resources available in other parts of the world, then you
need to create an international marketing plan to generate
interest in your company abroad.
Internet
The Internet can make any company into a global retailer
without that company needing to have any presence
outside of the your country.
Competition
Some companies may not feel the need to expand
internationally; however, their marketplace may force them
to move into international marketing. If your competition
has decided to go global, then that is something that you
need to investigate as well, according to marketing expert,
Professor W. Tim G. Richardson
Techniques to enter in international marketing/mode of
entries
Organizations exist in environments. The change in consumers
test, suppliers’ condition, government policies, political
conditions etc…results in the change production and trade
structure. New system and techniques are involved and
developed to conduct involved International business Modes of
entry into an international market are the channels which your
organization employs to gain entry to a new international market
1. Joint venture
A corporate entity created with the participation of two
companies that share equity, capital, and labor, among
others. Joint Ventures tend to be equity-based i.e. a new
company is set up with parties owning a proportion of the
new business. There are many reasons why companies set up
Joint Ventures to assist them to enter a new international
market:
Cont…
1. Access to technology, core competences or management skills.
2. To gain entry to a foreign market.
3. Access to distribution channels, manufacturing and R&D are
most common forms of Joint Venture
2. Counter trade
Trade carried out wholly or partially in goods rather than
money.
 Denotes a whole range of barter-like agreements
Primarily used when a firm exports to a country whose
currency is not freely convertible
 Developing countries or new states
Importing country may lack the foreign exchange
reserves required
3. International subcontracting
An arrangement by manufacturer in the developed country with one in
the developing country under which the latter agrees to supply the
parts and components and or do assembly operations for the former,
on a long term basis. Under this system the manufacturer of a final
product does not produce the whole product but imports some of its
parts and components from the manufacturers of those parts and
components in another country under specifications provided to them
by the former
 Sometimes the contractee also supplies finance and technical
assistance to the contracting party
 Such types of arrangements are generally made in labor-intensive
industrial products.
Reasons for growth of sub contracting
Capital scarcity(host country)
Labor-cost factor(coming one)
Lack of expertise(host country)
Lack of natural resources(coming one)
4. International Agents
Agents are often an early step into international marketing. Put
simply, agents are individuals or organizations that are contracted
to your business, and market on your behalf in a particular
country. They rarely take ownership of products, and more
commonly take a commission on goods sold. Agents usually
represent more than one organization. Agents are a low-cost, but
low-control option.
5. Strategic Alliances (SA)
A strategic alliance is a term that describes a whole series of
different relationships between companies that market
internationally. Sometimes the relationships are between
competitors. There are many examples including:
1. Research and Development (R&D) arrangements.
2. Distribution alliances
Essentially, Strategic Alliances are non-equity based agreements i.e.
companies remain independent and separate.
6. Overseas Manufacture or International Sales
Subsidiary
 A business may decide that none of the other options are as viable as actually
owning an overseas manufacturing plant i.e. the organization invests in
plant, machinery and labour in the overseas market. This is also known as
Foreign Direct Investment (FDI). This can be a new-build, or the company
might acquire a current business that has suitable plant etc.
7. Internationalization Stages, and odes of entry
 So having considered the key modes of entry into international markets, we
conclude by considering the Stages of Internationalization. Some companies
will never trade overseas and so do not go through a single stage. Others will
start at a later or even final stage. Of course some will go through each stage
as summarized now:
 Indirect exporting or licensing
 Direct exporting via a local distributor
 Your own foreign presences
 Home manufacture, and foreign assembly
 Foreign manufacture
8. The Internet
The Internet is a new channel for some organizations and
the sole channel for a large number of innovative new
organizations. The e Marketing space consists of new
Internet companies that have emerged as the Internet has
developed, as well as those pre-existing companies that now
employ e Marketing approaches as part of their overall
marketing plan. For some companies the Internet is an
additional channel that enhances or replaces their traditional
channel(s). For others the Internet has provided the
opportunity for a new online company
9. Exporting
There are direct and indirect approaches to exporting to other nations.
Direct exporting is straightforward. Essentially the organization
makes a commitment to market overseas on its own behalf. This
gives it greater control over its brand and operations overseas, over
and above indirect exporting.
Whether companies decide to export indirectly or directly, many
companies use exporting as a way to "test the waters" before building
a plant and manufacturing a product overseas.
Approach international marketing
Rachel Miller explains how to approach international marketing and why it is
worth doing
1. Find out if your product will travel. Many UK firms get occasional orders
from overseas - thanks to the reach of the internet. However, should you
actively market your products abroad? Not every product travels well so if
you plan to expand into new territories, find out if your product can be sold
widely without having to be adapted.
2. Research new territories. Your experience and the resources you have built
up in the UK means that you're not starting from scratch. But you need to
know how to leverage them appropriately - and that means researching new
markets and thinking about issues such as logistics, order fulfilment and
customer service.
3. Assess the size of the market. How big is the market for your product in
other countries? You'll have to see how established it is, find out how many
players there are in that sector and how big the customer base could be. Are
there any potential trade barriers or restrictions?
Cont…
4. Adapt your marketing strategy. You may have a product that can easily cross
borders but your marketing strategy will have to be adapted. Local values,
customs, language and currencies will all impact on your marketing plan. Look
at your unique selling points and your branding. Are they right for the new
markets you are targeting?
5. Work with local partners. Working with affiliates, partners, distributors,
licensees or agents can help you get established in a new market. Close
consultation with business partners on the ground will ensure that your
marketing materials have local appeal and don't include any mistakes.
6. Check your prices. Pricing is not just about understanding currency
differences - you need to research price levels in each new territory. Your
overheads may also be higher so ensure that your prices take into account the
cost of freight and transport, packaging and agent's commission.
Cont…
4. Adjust your media mix. The marketing channels you use will vary in each
territory. In some countries, you may rely mostly on social media or online
advertising. In other places, it could be local newspapers, outdoor
advertising or radio.
5. Learn local customs. When it comes to customer service, what works in
one country may not work in another due to cultural differences, language
and health and safety regulations. Levels of formality, business etiquette,
the way you address them - all these are issues that could make or break
your expansion plans.
6. Get the timing right. Timing is everything. In some places, what you sell
may be ahead of its time, in others it could be seen as outdated. Is demand
for your type of product already peaking? Or is it just starting to grow?
7. Exhibit overseas. Taking a stand at trade shows abroad is a good way of
dipping your toe in the water, meeting contacts and making your first sales
in a new market. It's also a chance to see what your competitors are doing.
 Chapter Three
3. Data analysis, Conclusion and Recommendation
3.1 analysis of the interview related with value chain.
What seems value chain process in DBSC?
As the sales and logistics department managers said Primary activities are the
activities from the reception of raw materials up to delivery of finished goods
and the secondary activities are supportive for the primary activities. As they
said the primary activities especially inbound and operations add the value to
the company as well as the customers. Generally the values are added when we
move from one process to another and the company primary activities are those
below:
1. Inbound logistics
1. Purchasing of raw material(barley, malt and hop)
2. Loading, transportation and unloading automation

3. Warehousing
4. Material handling
 
Cont…
2. Operational activities/production related activities
 Grinding
 Mixing raw materials with water and making ready for Fermentation
 Bottling and branding
 Labeling and packaging
 Pasteurizing
3. Marketing related activities
 Distributing the products: Company does not sell directly to bars, liquor stores,
or grocery stores. It is the responsibility of the distributor to establish the retail
relationship. Dashen brewery use different agents found in different places to
distribute its quality beer to the ultimate customers and it sets different criteria
to select the qualified agents. In addition to the agents, the company has three
main warehouses found in three different locations. This includes Gondar
warehouse, Addis Ababa warehouse and Woldia warehouse.
 Promotional activities are activities used to introduce the product or services and
our case company uses almost all types of promotion mixes those are
advertisement, promotion and public relation. In the international market they
did not applied a good promotion because their potential market is local
countries.
 As they said the company does not engage in after sales service because it
produces consumption goods an.
 Secondary activities are those of supportive activities
1. Procurement: about the selection of suppliers and the acquisition of raw
materials. In this step the purchasing department selects the potential and
capable suppliers. the company purchases their raw materials from the external
market and from the local farmers.
2. Technology development: currently the factory uses the latest brewery plants
and machines. DBSC uses advanced technologies while designing and
manufacturing new products. The factory has latest equipment that makes its
production modem. Among these equipment: CIP plant-the brewing equipment
is cleaned by 4CIP plants using recovered water, caustic soda, and acid; EBI:
removes products that do not fulfill the standards water treatment plant, C02
recovery plant, Air compressor plant, Cooling plant, Boiler plant, Conveyor;
Casing and uncasing, Crate washer, Bottle washer, Filler, Pasteurizer, Labeler,
Keg plant and others
3. Human resource management:  those are activities related with staffing. They
have two types of employees i.e. temporary/wage based/employees and
permanent employees. Human resource related activities are in light with
Ethiopian civil service rules and regulations. It also uses different motivational
methods to maintain and retain employees. The company has a number of
employees from illiterate to highly trend and educated personnel.
4. Firm infrastructure: they have well constructed organizational structure
having almost all basic functions.
 Cont…
3.2. Interviews related with short term opportunities and
threats
What are the short term opportunities, the major factors
detect to utilize those opportunities and your strategies?
As the sales manager said the opportunities, threats and
strategies as follows:
1. The key medium and short term opportunities of DBSC are
holidays
2. There is one major factors detect the utilization of this
opportunities that is the existence of competitors
3. DBSC upgrades its strategies in holidays to exploit short
term opportunities for example price discount
4. It also makes integration with different private and public
organizations so as to announce the short term discounts in
the name of the holiday
 Cont…
3.3. Interviews related with holistic marketing
How company exercises holistic marketing and its response to each dimension?
As the sales manager said, the company practices holistic marketing by integrating all
stakeholders.
1. Relationship marketing: DBSC used relationship based marketing with suppliers and
customers so as to minimize the cost of customer acquisition and supplier selection. The
acquisition of both customers and suppliers requires resources those are personnel
(experts in the selection of suppliers and attraction of buyers), time (most of business
buying process needs time from0.5-1year), money to run the activities and other
overheads.
2. Internal marketing: it also uses different motivational method to satisfy and keep the
safety of employees for example: holiday bonuses, holiday based gift, different
allowances…
3. Social marketing: as the manager said DBSC executes the social responsibility of itself
by sponsoring different public programs and producing environmentally friendly
products.
4. Integrated marketing: it also works with different stakeholders by providing
important in formations to them and receiving from them by using different research
and survey for example about the tests and the alcoholic contents of its product, price,
advertisements in relation to cultures and norms it also works with other external
parties to reduce the severity and frequency of accidents by showing warning posters.
 Cont…
3.4. Interviews related with international marketing
How the company enters and applies international marketing and
what are the factors that influence the company to enter in the
international market?
The sales manager said that, the entry mode of DBSC is exporting (indirect
exporting or through the agents of the company). As we have written in
our literatures exporting through agents is called indirect exporting
because they have not take the ownership of the product.
There are two forces that push DBSC to inter in the international market:
1. Government influence: it is mandatory to the manufacturing co. to
participate/ involve in the international market and at least 25% of its
products must be exported to the international market.
2. To compete with its competitors our competitors are not only domestic
brewery factors but also international brewery factories
Cont…

Conclusion of the project

 As Michael porter value chain processes, DBSC`s Primary activities are the
activities from the reception of raw materials up to delivery of finished goods
and the secondary activities are supportive to the primary activities.
 The key medium and short term opportunities of DBSC are holidays. There is
one major factors detect the utilization of this opportunities that is the existence
of competitors. DBSC amends its strategies in holidays to exploit short term
opportunities for example price discount. It also makes integration with different
private and public organizations so as to announce the short term discounts in
the name of the holiday.
 The company practices some of the holistic marketing dimensions by
integrating stakeholders and it does not fully practice societal marketing.
 The entry mode of DBSC is exporting (indirect exporting or through the agents
of the company).
 The gaps in the organization
As we observe the factory, there are many gaps that they should
observe so as to compete in the current international market.
The company selects indirect export method as the only means to
inter in the international market
As we observe the company does not execute all the social
responsibilities for example: wastage disposal system affects the
community around it and affects the environment and results the
pollution of air, subterranean water and soil.
As we observe the sales power of the company and the customer’s
response in the last few years, the company does not exercise
relationship marketing on customers’ side because of many
factors. As we know their participation in social activities, the
company overlooks that their neighbors, the community around
the town and all Ethiopians are their potential customers because
it is. The Political condition of the country is the other factor that
hinders the company to exercise relationship marketing.
Recommendation
 As we have seen in the analysis of the company’s entry mode, its mode
of entry is indirect export but there are other types of entry modes that
will make the company beneficial for example oversea manufacture:
this type of entry mode is the best entry mode for the companies
having strong financial position like DBSC, to exploit local resources,
to standardize their product and to compete with their competitors
and in total to exploit the advantage of international marketing.
 The company did not conduct any powerful advertisement in external
markets that it trades. So if it provides powerful adverts in the external
market it will increase its sales volume.
 As the communities around the factory said and as we observe the
companies waste disposal system it is not environmentally friendly so
it is better to treat its wastes before disposal or use other method like
reusing of wastes in the form of lees. These will create a good
relationship with the communities around it.
 Participation of the companies in charity organizations and social
activities is more power full than any types of advertisements within
the local market for business organizations. We recommend the
company to highly involve in social activities to improve their sales and
their good will.