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t Francis Institute of Management and Research

MMS Il Semester III Term End Exam- Nov 2017

Max Malks - 60

Subject: Strategic Management

Dulation 3 I{rs

lnstructions:
l) QI is compulsorY of 20 N'Iarks.
zi r.o* ."-oi.ring sir questions attempt any four questions, each question carrying 10 NIarks'

Seclionl-CaseStudr
patriots come in all shapes and sizes. venkatesh Iyer (venky), co- founder of Goli vadapav,
found it disturbing thatle did not have any Indian brand in the list of products
he consumed
and Lux soap.
on a daily basis. 'll 11,ouid stafi my day with Colgate toothpaste, Gillette razor
posted on Goli
And I ivor-rld think. rvhy we can't huu" un Indian brand among this, "says a note
do his bit by building something everl'
Vadapay site. So this gusty entrepreneur decided to
Indian can be proud of. Launched in2004, in Kalyan - a suburb near Mumbai, Goli Vadapav
has come a long way in making that thought reality. Your story caught up with
the founder for
an inside vier,v into the making of the 'humble Vadapav'. Venky and co-founder shivadas
\'vay to
Menon are self - confessed foodies who had decided early on that food would be their
together. Once
glor1,. Both knew each other for a while as they had also run a finance venture
fast food
in.1: nuA decided the category, the actual product choice was tougher. While Indian
options are plenty, to choose a product that could be mass produced in minimum time r'vas a

toush decisiorr.

eat. "ln 5
They, choose Vaclapav because of the convenience it offers to make, deliver and
minltes you can *ut . S Vadapav, but you can't make 5 masala dosas in 5 minutes. It's a finger

food, so you don't need a plate, spoon or table. It's a rnobile food which yoll can drive and eat'

or hang in a bus and eit, "explains Venky. Venky and shivadas started with their oivn
investrient and the conventionai r,vay of hiring a cook and other staff. However, this rnodel
presented them with rnany problems initially from wastage, pilferage and even the risk of
shutclowl, in case the cook decided to move out. This unpredictability didn't go down rvell
with Venky and he starled a US company that supplied frozen vegetables and chicken patties
to McDonald's in 1idia. And thus vadas started getting automated - machines helped rnake
three
standard sized and shaped vadas. Thanks to this investment in technology, Goli overcome
big problems in a single shot - of wastage, pilferage and standardisation.

Today, Goli has a central manufacturing capacity from where vadas are prepared and shipped
across the country. Their teclinology er-rables vadas to be stored in a frozen form and sent
ever,v

2 or 3 days to the actual shops, where they are again stored properly. This has made it
possible
fbr the goli vaclas to have a shelf life ol as much as nine months. "standardisation and

technolJgy has helped us create a model which can help everyone, otherwise if a Delhi
businessman takes our franchise and he has to do local sourcing and production,
there wouid
that is
be price fluctuatiolrs in 6 months, and different kinds of problems may arise. But now
what has
not an issue, as the supply is done centrally," explains Venky. This approach is also
helped Goli grow uggi.siu.ty to have 277 stores across 61 cities, while other Indian foods

,r1, .
'l ' 1 r.'
chains like Saravana Bhavan and halitlram's still have lower dor"rble digit scores.
\retrkr sarS
the dependent that the other stores have on human capital has restricted their
abilitl' to grtrrr .

With the proclgct perfected, Venky and shivaclas stafted looking for options to setup shop-
Rr''i
estate ri-l N4Lrrnbai is pricey ancl thereiore they hit upon a novel idea to use Aarey t11ill' [u1ri1rI

to dor,rble up as Goli outleis. The acquired 350 Aarey milk booths and at a shot, 350
Goli Store .
...r. op-,1"d. Hor,vever. political trouble and disagreernent between the booth orvner atr.j
p..litici parties cut short ihi, dr"utrr, and all Goli outlets had to down the shutter. As a t'esttlt
ihei also^lost the first round of funding money. "That was a very tough time and people thoLrght
alst'
Goii ,i,as finished. All our fiIoney was finished and then immediately Lehmann brother's
money. But Goli Vadapav sailed through the
liappened, so no investor'was wiilirrg to put their
crisis. The Nasik store happened.and we grew across India," Shares Venky'

,,\\,'e ha'e had many challenges, but if there are no chailenges in your business yotr u'ill not
real estate
grorv. So pilferage, r,vastage was a challenge, find - raising was a challenge, then
i"u, u because of the political sitr,ration we got wiped dut and had to lnove out
"huil",1g",1t"n
of Murnbai, but then we found place in Nasik and that was evolution' No doubt things
were
tough, but that is how business evolves," he philosophizes' Moving into Nasik was
a blessing
fresh of life, but also defined tlie
in JisgLrise, because 1ot only did it give the business a lease
futLrre expansion strategy for Goli. As a company, they first entered Maharashtra
arrd

consolidaied there, they next went to Karnataka and saturated it, now they
will move to
and the entire
Chennai, Up and so ol1. Maharashtra now has 85 stores, banglore has B0 stores,
l(arnataka has 100 stores. They recently started their Kolkata store about two months back and
also have a store each in Kochi and GorakhpLrr'

has Rs. i5,

Today, Goli sells 70,000 Vadapav daily, and even the recently opened Kochi outlet
000 iash coilection per day, claims Venky. "We got into the market where there was
no
territories
competition, no one sold Vadapav in Banglore, Aurganbad, or Nagpur. So rvent into
where there was no competition where Vadapav was only heard of. but it r'r'as not available
there. plus we are a hygienic store, integrated backend, and fulll' sultmated like the
American's," he saYS.

Two decades later, things have changed. India's fast - food industry is expected to double
in
size betrveen2013 and10l6, to $1..12billion, according to the Economist Intelligence Unit'
And demographic trends mean it could become the next mega - market for international fast
food playeis. iioli is a profitable company today and will be touching revenues of Rs.45
cores
out of other Indian
this ylar. Ver-rky is alsobullish about the possibility of making a mass brand
fooj items. Venky and team are now faced with a challenge - growth .... ... And sustainability.

As CEO of Goli Vadapav, elucidate yollr way forward on: (20 marks)

a) The growth strategy Goti Vadapav should adopt to double revenues in the next 3 years
b) Suggest some new category options and pick one of them and substantiate the same
rj prJiiOe a Vision , Misslon and core values that Golivadapv should adopt, to go global
d) Explain Pofter's Five forces for Goli Vadapav with the help of above case study

) /.-
< "'l ]
Section Il

Q2. Write Short Notes on any two: (10marks)

(a)'I'urnaround StrartegY
(b) Value Chain ConcePt
(c) PLrrple Ocean StrategY

Q3. Answer anY two - (lOmarks)

(a) Explain the 5ps of strategy ancl its significance for any Business Organization?
ib; Explain GE Matrix and what are its Advantages? power in a competitive business
i.j Ho* is it possible for a company to create market
environtnent?

Q4. Ansrver anY two - (l0marks)

(a) What is the role of SWOT analysis in crafting a company's strategy?
any company to outperform
ibj eot.r,s fir,e forces rrodel of Inclustry attractiveness enable
their competitors. Horv is this possible? Illustrate with examples.
(c) Expiain VUCA arralysis with recent Industry examples?

Q5. Answer anY frvo - (10marks)

(a) Explain joint ventures and strategic alliances with examples?
iUl p*btuin hor,v strategy shapes structure in an organization?
national, Global and Trans
i.j Wfrut is the difference between Multiand- disadvantages - national
Corporations? Describe the advantages ofeach?

Q6. Answer any trvo - (l0marks)

(a) Elucidate VRIO analysis with recent industry examples?
the Merger and Acquisition process
iUj Wny is SWOT analysis a prerequisite before
starls? What are the several tenefrts derived by this analysis? When do mergers fail?
(c) What is the role of organizational structure in ensuring effective implementation of
strategY?

Q7. Answer anY twO - (10marks)

(a) Explain "stuck in the Middle" in pofier's generic strategies'
(b) Develop TOWS strategy using SWOT for Reliance Jio
pESTLE factors can be used by an e-tailer wishing to enter a new
' . Explain how
icj
Geographic market, focusing on the fashion and lifestyle category'

Rest of Luck

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