Question: 1.

using any industry with which you are familiar, please analyze the
industry using Porters Five Forces Model. Please explain your rationale.
Answer:

Entry of competitors
Economic of Scale: it is very easy for GP to increase economic scale. With 23
million subscribers, more than 40 percent market share, and billions of dollars
invested in Bangladesh, GrameenPhone is meeting the scale and scope of the

challengeand unleashing widespread social benefits in the process.

Capital: GrameenPhone has a huge amount of capital mainly invested by the
shareholders. Capital size is $280 million. Moreover, global institutions like
IMF, World Bank etc. have sanctioned loan for GP. This is a huge success for
GP. GrameenPhone total capitalization was US$120,000,000, including
around US$50 million from IFC/CDC, and the Asian Development Bank

(ADB).
Access Technology: GrameenPhone Ltd., Bangladeshs largest mobile phone
operator recently opted for Oracle technologies to streamline its business
operations. The telecom major will be deploying Oracle technology to
standardize its IT infrastructure and reduce cost of ownership, thereby

enhancing customer service in Bangladesh.

Customer switching costs: GP may design price-structure and productofferings in such a way that switching cost to any substitute product becomes

higher and buyers will stick to them.

Customer loyal: Grameen Phone is losing its loyal customer to other
operators due to cheaper and attractive promotional packages from other
operators, though 98% of the population is covered by the network of GP. For
their loyal customers GP can launch promotional packages, like loyal
customer package, GP partner.

 Threat of Substitutes:
Quality: Grameenphone give the high standard quality through their
customers. They modified their packages for consumers wants and demand.

They provide various facilities, which dont given by any other competitors.
Buyers willingness to substitute: The loyal GP customers dont move any
other operator, because they have the highest number of customers and a

strong network protocol.

The relative price and performance of Substitutes:

Operator
Grameenphone
Banglalink
Robi
Citycell
Airtel
Teletalk

SIM Price
150
120
100
80
99
100

Performance
High
Moderate
Low
Very Low
Moderate
Low

Cost of switching Substitute:

When customers want to switch GP from another network, then they must bought
a new connection for use.

Bargaining Power of Suppliers:

Concentration of suppliers: Grameenphone have sufficient wholesaler
around the country, so they have a strong supply chain management.
Customers can easily buy the product different Sim selling shop and
customer care centers.

Branding: GP is the highest mobile usage brand of Bangladesh. It has a

strong supply and chin management.

Profitability of suppliers: Suppliers cant force to price rising. GP fixed the

price and suppliers can only supply the products.

Role of quality and service: GP always provide their services as maintain
highest quality standard as their role.

Bargaining power of buyers:

Concentration of buyers: Grameenphone have sufficient wholesaler around
the country, so they have a strong supply chain management. Customers can

easily buy the product different Sim selling shop and customer care centers.
Differencation: Products are high standard. Business people can use

Blackberry and Business Solution package.

Profitability of buyers: Buyers can easily get the packages which they want.
Role of quality and service: Buyers always seek the quality full products.

From the buyers need, GP can easily fulfill the quality service.
Switching costs: It is easy to switch the suppliers. Because it depends on
buyers behavior.

 Intensity of rivalry:
The structure of competition: Absolutely GP is a market leading company of

our country. GP provides highest value rather than other operators. GP has the
highest number of customers and they have a strong network and market
system rather than other competitors.
The structure of industry costs: GP takes some stapes or strategies, when

the competitors give any advertisement. When needed, they can easily cut the

price.
Switching cost: Buyers need not to switch. If anyone wants to switch then,

buyers have to carry a high value.

Exit barriers: Now a day, Teletalk, Citycell and Robi can any time out of
market. Because their market system too much poor rather than GP. They
cant compete with GP.

Question: 7.What do we mean by resource based view of the firm? What are
these resources and what make them valuable?
Answer:
The resource-based view (RBV) argues that firms possess resources, a subset of
which enables them to achieve competitive advantage, and a subset of those that
lead to superior long-term performance.
Two Critical Assumptions of the RBV
Resource Heterogeneity

Different firms may have different resources

Resource Immobility

It may be costly for firms without certain resources to acquire or develop

them

some resources may not spread from firm to firm easily

What are these resources?

Tangible assets are physical things. Land, buildings, machinery, equipment

and capital all these assets are tangible. Physical resources can easily be
bought in the market so they confer little advantage to the companies in the

long run because rivals can soon acquire the identical assets.
Intangible assets are everything else that has no physical presence but can
still be owned by the company. Brand reputation, trademarks, intellectual
property are all intangible assets. Unlike physical resources, brand reputation
is built over a long time and is something that other companies cannot buy
from the market. Intangible resources usually stay within a company and are
the main source of sustainable competitive advantage.

What make them valuable?

Resource = anything that could be thought as a strength or a weakness for a firm.
Tangible and intangible assets tied permanently or semi-permanently to the firm.
Resources that are valuable and rare can lead to the creation of competitive
advantage. That advantage can be sustained over longer time periods to the extent
that the firm is able to protect against resource imitation, transfer, or substitution.

Question: 9. Compare and contrast the business (generic) level competitive

strategies. In particular, when would each strategy be most effective and what do
you perceive as the greatest limitation of each? Please give me a real world

example of a low cost producer and a company that is competing by broad

differentiation.
Answer:
A firm positions itself by leveraging its strengths
Michael Porter has argued that a firm's strengths ultimately fall into one of two
headings: cost advantage and differentiation.
By applying these strengths in either a broad or narrow scope, three generic
strategies result: cost leadership, differentiation, and focus
These three generic strategies are defined along two dimensions: strategic scope
and strategic strength.
Strategic scope looks at the size and composition of the market you intend
to target.
Strategic strength is a supply-side dimension and looks at the strength or core
competency of the firm.
Cost Leadership Strategy
A firm tries to reduce its overall production and distribution costs, wins market
share by appealing to cost-conscious customers and sets the lowest prices in the
target market segment, or at least the lowest price to value ratio.
3 ways to achieve this:

Economies of scale

low direct and indirect operating costs

control over the supply chain

Firms that succeed in cost leadership often have the following strengths:

Access to the capital required making a significant investment in production

assets; this investment represents a barrier to entry that many firms may not
overcome.

Skill in designing products for efficient manufacturing.

High level of expertise in manufacturing process engineering.

Efficient distribution channels

Limitations:

Other firms may be able to lower their costs as well.

As technology improves, the competition may be able to leapfrog the

production capabilities, thus eliminating the competitive advantage.

Several firms following a focus strategy and targeting various narrow markets
may be able to achieve an even lower cost within their segments and as a
group gain significant market share.

Examples of Companies That Use Cost Leadership Strategies

Dell Computers: achieved market share by keeping low inventories and only
building computers to order, procurement advantages from preferential access
to raw materials, or backward integration.

Wal-Mart is famous for EDLP, achieved by developing close relationships

with its suppliers and vendors to achieve cost savings through large volume
purchases and pass these savings to the consumers.
Differentiation Strategy

A company concentrates on differentiating the products in some way in order to

compete successfully where the target customer segment is not price-sensitive, the
market is competitive, customers have very specific under-served needs and the

firm has unique resources to satisfy these needs in ways that are difficult to copy
patents or other Intellectual Property (IP), unique technical expertise, talented
personnel or innovative processes. Successful brand management also results in
perceived uniqueness even when the physical product is the same as competitors.
Fashion brands rely heavily on this form of image differentiation.
Firms that succeed in a differentiation strategy often have the following
strengths:

Access to leading scientific research.

Highly skilled and creative product development team.

Strong sales team with the ability to successfully communicate the perceived
strengths of the product.

Corporate reputation for quality and innovation.

Limitations:

Imitation by competitors and changes in customer tastes

Various firms pursuing focus strategies may be able to achieve even greater
differentiation in their market segments.

Examples of Companies That Is Competing Broad Differentiation.

Differentiation through Multiple sources: L&T, the engineering firm ,
recruits engineers with excellent qualification and claims superiority in
executing projects.
Product Differentiation based on ingredients: HUL Close Up used
glycerin instead of calcium carbonate and secured differentiation and
Colgate compelled to copy the same
Focus Strategy

The firm focuses its marketing effort on serving a defined, focused market
segments with a narrow scope by tailoring its marketing mix to these specialized
markets, it can better meet the needs of that target market.
The firm typically looks to gain a competitive advantage through product
innovation and/or brand marketing rather than efficiency.
It is most suitable for relatively small firms but can be used by any company.
A focused strategy should target market segments that are less vulnerable to
substitutes or where a competition is weakest to earn above-average return on
investment.
Firms that succeed in a Focus Strategy often have the following internal
strengths:

The firm is able to tailor a broad range of product development strengths to a

relatively narrow market segment that they know very well.

Limitations:

Imitation and changes in the target segments

It may be fairly easy for a broad-market cost leader to adapt its product in
order to compete directly

Other focusers may be able to carve out sub-segments that they can serve even
better.

Question: 10. Please complete a SWOT analysis for any organization with which
you are familiar.
Answer:
Grameenphone widely known as GP, is the leading telecommunications service
provider in Bangladesh. With more than 32 million subscribers (as of June 2011),
Grameenphone is the largest cellular operator in the country. It is a joint venture
enterprise between Telenor and Grameen Telecom Corporation, a non-profit sister

concern of the internationally acclaimed microfinance organization and

community development bank Grameen Bank. Grameenphone was the first
company to introduce technology in Bangladesh. It also established the first 24hour Call Center to support its subscribers. With the slogan
Stay Close, stated goal of Grameen phone is to provide affordable telephony to
the entire population of Bangladesh. From the SWOT analysis we are trying to
know the companys strategic position as well as Strengths, Weaknesses,
Opportunities, and Threats.

Strengths
Good Ownership Structure:

Grameen phone has the best ownership structure in the telecommunication

industry in Bangladesh. Telenor is one of the largest companies, which is
operating in different countries around the world. Again, in Bangladesh, Grameen
Bank is one of the largest NGO, which has the sound communication allover the
country. It is a joint venture enterprise between Telenor (55.8%), the largest
telecommunications service provider in Norway with mobile phone operations in
12other countries, and Grameen Telecom Corporation (34.2% ), a non-profit
sisterconcern of the internationally acclaimed micro-credit pioneer Grameen
Bank. Theother 10% shares belong to general retail and institutional investors.
Figure-1: Ownership Structure
Source: Internet

Market Leader:

Grameenphone is the first organization in Bangladesh, which has reached to the

general people. Though Citycell had started their operation beforehand, but they
were unable to reach the general people. So, the people are being used to with
Grameenphone. This is a huge advantage of Grameenphone.

Network Availability:

Grameenphone has the widest network coverage and a large number of BTS
station (Tower) all over Bangladesh. Thats why the company can provide better
connectivity in most of the area of the country.
Brand

Name of Grameen Image:

Grameen Bank is well known all over the country because of its appreciable
activities in financial sector for poor people in Bangladesh. So, when the name
Grameen has been added with this telephone company, the organization gets a
huge exposure due to this Grameen image.

Financial Soundness:

Because of effective strategic planning, Grameenphone is able to earn a healthy

amount of revenue, which gives them financial soundness.

Skilled Human Resources:

All the stuff, which are related to Grameenphone are skilled and effective in their
own job responsibility. The reason behind this is the Human Resource Department
of Grameenphone follows ethical strategy to recruit new employees.

Effective Support Organization:

Grameenphone has shared the idea from the employees of Bangladesh Railway
and Grameen Bank, who are experienced and able to provide precious guidelines
for the operation of Grameenphone.

Easy Access to the Widest Rural Network:

Through the help of Grameen Bank, this was easier to Grameenphone to reach the
rural area of Bangladesh.

High Ethical Standard:

To ensure quality of service, Grameenphone is strict tofollow its ethical standard.

Weaknesses
Cultural Gap:

In Grameenphone management, employees from different countries are existed.

Suppose, CEO is a Noregian, Chief Technical Officer is Indian and many more
employees come from different countries. Thats why sometimes there may be
lack of understanding due to cultural gap.

Many Men Many Minds:

Sometimes different ideas may create problem. In Grameenphone, this is highly

encouraged to apply new strategy for better performance. Sometimes, it may
create problem because employees are used to with previous strategy.

Complicated Pricing Structure:

Grameenphone has lots of products. The pricing of these products and their
billing policies are different which also difficult for a user to understand.

Incomplete Message through Promotional Activities:

Most of the time the advertisements of Grameen phone have no clear appropriate
messages. Not only that, most of them are also so confusing to understand. As a
result, subscribers get the wrong meaning of what has been said to them.

Problem Contained Offers:

Recently almost all of the new offers of Grameen phone are having some
technical problems. Either they are not working at all or part of the services of

those offers is disabled. Moreover, Grameen phone is also delaying to solve these
problems which are only raising the dissatisfaction level of its subscribers.

Lack of Harmony among SBUs:

Intercommunication among various departments is little bit weak. The reason

behind this, there is no exchange program for employees to work among various
Strategic Business Units (SBUs).

Opportunities
Economic Growth of Bangladesh:

The economic growth of the country will increase the expansion of

telecommunication industry. From 1995 to 2006, there is a huge change in
telecommunication sector.

New and Better Interconnect Agreement:

Grameenphone is going to have agreement with T&T to have better

communication from land phone. The
3organization has agreements with other operators like Robi, Citycell, Banglalink
to have better internal connectivity.

Increasing Demand for Telecom Services:

The market of telecommunication is expanding. So, this is easy for

Grameenphone to achieve the major portion of expanded market because of its
leading position.

Increased Cross Boarder Communication:

As international activities increased in the country, people need the connectivity

not only within the country, but also outside of the country. So, the market for
outside of the country is also expanding.

Declining Prices for Handsets:

Few years ago the people from low income group could not afford mobile phone
services due to the high price of handsets. Now the price of handsets has

decreased and the low income people want to get connected through mobile
phone.

New International Gateway:

As BTTB has established new gateway to connect internationally, this is easy for
mobile phone operators to provide services of ISD call and international roaming.

Flexibility of Mobile Phone:

Communication through mobile phone is popular; because, land phone connection

between intercity is relatively costly. Mobile phone is also easier to carry and
because of its lower cost and easy portability, people are getting more dependent
on mobile phone than land phone. So, there is a chance to achieve more
subscribers and more market share.

Threats
More Rigid Government Regulations:

Government is becoming restricted for taking away currency from the country.
So, foreign companies are threatened because they may have risk to back their
investment to the country. The government also put restriction for work permit of
foreign employees.

Upgraded Technology Used by Competitors:

New mobile phone operators like Banglalink, Airtel are establishing their
channels with latest technology, whereas Grameen Phone is using the stations
which are five years old. So, this is one of the disadvantages for Grameen phone.

Political Instability:

Political instability is another threat. With the change of Government, policies are
also changed. So, this is difficult for any multinational organization to cope with
new policies.

Devaluation of Taka:

As the investment occurs in foreign currency, thats why the devaluation of Taka
decreases profit from financial point of view.

Risky Position of Valuable Resources:

The organization has a large number of BTS stations which are spread all over the
country. Anyone can make damage to these BTSs and this is also difficult to
arrange proper security for these stations.

No Cooperation from Government Agency:

BTTB does not want to provide better services to other operators, because, it
wishes to remain competitive.
Question: 16. Please list and define the three methods of strategic control we
discussed in class.
Answer:
Strategic Control
Strategic control is concerned with tracking a Strategy as it is being implemented,
detecting problems or changes in its underlying premises, and making necessary
adjustments.
Strategic control is concerned with guiding action on behalf of the strategy as that
action is taking place and when the end result is still several years off.
Three methods of strategic control are:
1. Premise control
2. Implementation control
3.

Strategic surveillance
Premise Control

Premise control is designed to check systematically and continuously whether the

premises on which the strategy is based are still valid.
If a vital premise is no longer valid, the strategy may have to be changed.

E.g. many software companies postponing the joining dates of new recruits during
slowdowns.
The sooner an invalid premise can be recognized and rejected, the better are the
chances that an acceptable shift in the strategy can be devised.
Planning premises are primarily concerned with two types of factors:

Environmental factors (for example, inflation, technology, interest rates,

regulation, and demographic/social changes).

Industry factors (for example, competitors, suppliers, substitutes, and

barriers to entry).
Implementation Control

Strategy implementation takes place as a series of steps, programs, and moves that
occur over an extended time.
Managers implement strategy by converting broad plans into concrete incremental
actions and results of specific units and individuals.
Implementation control is the type of strategic control that must be exercised as
those events unfold.
Implementation control is designed to assess whether the overall strategy should
be changed in light of the results associated with the incremental actions that
implement the overall strategy.
The two basis types of implementation control are:
1. Monitoring strategic thrusts (new or key strategic programs). Two
approaches are useful in enacting implementation controls focused on
monitoring strategic thrusts:

(1) One way is to agree early in the planning process on which thrusts are
critical factors in the success of the strategy or of that thrust;
(2) The second approach is to use stop/go assessments linked to a series of
meaningful thresholds (time, costs, research and development, success, etc.)
associated with particular thrusts.
2. Milestone Reviews. Milestones are significant points in the development of a
programme, such as points where large commitments of resources must be
made. A milestone review usually involves a full-scale reassessment of the
strategy and the advisability of continuing or refocusing the direction of the
company. In order to control the current strategy, must be provided in strategic
plans.
Strategic Surveillance
Strategic surveillance is designed to monitor a broad range of events inside and
outside the firm that are likely to affect the course of its strategy.
The basic idea behind strategic surveillance is that important yet unanticipated
information may be uncovered by a general monitoring of multiple information
sources.
Strategic surveillance must be kept as unfocused as possible.
Strategic surveillance provides an ongoing broad-based vigilance in all daily
operations that may uncover information relevant to the firms strategy.
1.

How might the product life cycle impact your choice of competitive
strategy? Please explain.

2.

Compare and contrast the terms: market failure, taper integration, and
quasi integration. Why might a firm consider violating the principle of
market failure and pursue taper integration?

In what ways must functional level strategy be consistent? Please explain

3.

Please discuss the limitations of accounting-based measures as control

measures in strategic management. How might executives mitigate
these limitations?

4.

Compare and contrast the grand strategies of concentration,

integration, and diversification. Focus on the strengths and limitations
of each. Also, please give me an example of a firm for each of these
corporate level strategies.

Answer
Assume youre approaching the marketplace with a differentiation strategy based
upon speed. What might your value chain analysis look like?
5.
Please list and explain an organizations options as to growth
strategies. Please give me an example of a company that is pursuing
external growth strategies and another that is pursuing internal growth
strategies.
6.

Please compare and contrast Porters five forces model with the Blue
Ocean perspective. Are these competing approaches? Please explain
your rationale.

7.

Please compare and contrast the terms environmental determinism,

strategic choice, stakeholder approach, enactment, and adaptation.

8.

How do we identify direct competitors and what are some of the

common mistakes in identifying them? What tools are used to assist
executives in examining direct competitors?

Answer:
Explain the relationship between a firm and the various levels of external
environment. Which stakeholder in the operating environment do you believe to
be the most important? Why? Please explain your rationale.

External Strategy
Merger strategy

It means that two or more organizations merge together by formally losing

their corporate identities and form another organization through
combining assets & liabilities & issuing new stock, for mutual synergetic
benefits. The new co. is called holding company and the merging
companies are called subsidiary companies. According to the nature of
business of merging companies, merger may be

Horizontal

Vertical

Concentric

Conglomerate

Acquisition or takeover

It means that one company attempts to acquire ownership or control over

management of other co. either by mutual consent of or against the wishes
of latters (other co.) management or stock holders. It may be

Friendly takeover

Hostile takeover

Join venture

It means that two or more companies combine to form a new company by

equity participation and sharing of resources like finance, managerial
talents, technology etc., so as to create new entity distinct from its parents

JV b/w Government of India and another company

JV b/w two or more Indian private sector companies

JV b/w Indian company and a foreign company

Strategic Alliance

It is one in which two (or more) firms unite by a win-win type

agreement mutually acceptable to both (or all),

In strategic alliance partners join hands together for certain specified

objectives, when these objectives are achieved partners terminate their
alliance.

Types of Strategic Alliance (Based on its focus)

Technology Development Alliance

Operations and Logistics Alliance

Marketing, Sales and Service Alliance

Single Country or Multicounty Alliance

X and Y Alliance

Compare and contrast the grand strategies of concentration, integration, and

diversification. Focus on the strengths and limitations of each. Also, please give
me an example of a firm for each of these corporate level strategies.

When an organization focuses on intensifying its core businesses with a view

on expanding through either acquiring a new customer base or diversifying its
product portfolio, it is having a concentration strategy

Three Types of Concentration Strategies

o Market Penetration Selling More Products In The Same Market
o Market Development Selling Same Products To New Markets
o Product Development Selling New Products To The Same Market
Integration Strategies

Integration during product development process in which separately produced

components or sub system s are combined and problems in their interactions
are addressed.

o Horizontal Integration

When an organization takes up the same type of products at the same level of
production or marketing process, it is said to follow a strategy of horizontal
integration.
Horizontal Integration: Square and BEXIMCO both make pharmaceuticals
product. If thats what you see, they are in the same industry and so this is
horizontal integration.
o Vertical Integration
When an organization starts making new products that serve its own needs,
vertical integration takes place.
o Vertical Integration is of two types, namely Backward and Forward
Integration

Backward Integration means going back

to the source of raw

materials.(Example: A Thermal power company may do coal-mining)

Forward Integration implies moving

closer to the finished

product (Example: A car spare parts manufacturer would start

manufacturing passenger cars)

Diversification Strategies
When an organization takes up related activities within a wider industry
situation, it is termed as Concentric Diversification (Example: A sewing
machine manufacturer starts manufacturing Kitchen appliances)
Marketing-related concentric diversification-: A similar type of
product is offered with the help of unrelated technology.
Technology-related concentric diversification-: A new type of
product or service is provided with the help of related technology.

 Marketing-and technology-related concentric diversification-: A

similar type of product or service is provided with the help of a related
technology.
When an organization adopts a strategy which requires taking up those
activities which are unrelated to the existing business definition of any of
its businesses, it is conglomerate diversification.