STRATEGIC MANAGEMENT

Q1. A business enterprise takes major critical decisions like expansion, curtailing down production
lines or continuing the operations, diversifying the activities or looking into the current industry
only, mergers, acquisitions, or strategic alliances. Orientation towards growth is one of the
influential factors deciding the long-term performance of a corporation. Discuss with reference to
the corporation's directional strategy the three other grand strategies which need to be designed
and implemented for the overall success of the corporation's directional strategy. Conclude, by
reflecting on the importance of directional strategy (10 Marks)

Ans 1.

Introduction:
An organization's directional methodology incorporates the fundamental plan, venture, or command
it picks and carries out to enhance, blast profit, and meet its cravings and targets. Any organization
looking to increment pay requirements regardless a directional arrangement. A directional system
empowers an organization to frame the qualities it needs to maintain and the objectives it tries to
acquire. Directional methodologies are viewed as a worldview for showing functional decisions and
techniques of any business.

Execution of Directional Strategy

Among numerous procedures, three thousand strategies involved by a partnership for the execution
of a directional methodology are increment, dependability, and decrease. Those will be presently
taken care of exhaustively as follows-

1.Growth procedure: When you want to foster past present triumphs connected with your item,
execution, pay, or other venture measures, you use a directional methodology intended for the
blast. Too known, organizations need to stretch out to exist. Gotten through development means
better deals and lower item charges, bringing about higher productivity. A company's inward
development can be achieved by broadening its exercises overall and locally, and the external
development can be guaranteed by converging with various associations and shaping vital
partnerships. Bunches are seeking after a fruitful methodology searching for new business sectors,
items, and deals streams. Offering new items to current clients is an upward development strategy.
Introducing sans sugar or better choices to a delicate beverage maker's normal items is an
illustration of an upward development approach. Finding new business sectors for limit clients is
essential for an even development technique, which might be noticeable in ventures of any soda
pops.

Essentially, there are two assortments of increment systems fixation and enhancement.
Consideration procedures permit an association to focus on its resources and abilities in battling
inside the restrictions of a specific item market. Enhancement procedures focus on creating new
item follows in whole businesses.

2.Stability procedure: A soundness methodology means to diminish functional changes to an

absolute minimum and protect the notoriety quo. In the event that an organization's pay edge is
steady and solid and needs to stay away from the gamble of pursuing new possibilities, it might pick
this technique. It's best ideal when a business capacity in a functioning commercial center produces
unsurprising profits from financing, including a deep rooted clinical imaging center or pathology
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research facility. The thought can likewise be powerful as a band-aid for organizations hoping to
slow development or endure a market shift. The most extreme normal is the delay/tread carefully,
no-change, and pay strategies. The first is a clear technique that might be used till the climate
improves or until an organization's assets can be solidified after a length of the expedient blast. The
subsequent circumstance is to do the same old thing and remain with present-day tasks and
guidelines until further notice. The organization's overall equilibrium urges it to glue to its current
bearing with just minor changes for expansion or pay dreams. The third methodology is just useful in
supporting an association in conquering a concise mishap. This strategy might harm the
organization's serious situation over the long haul. This technique is more pertinent to short
responses to complex circumstances.

3.Retrenchment procedure: A conservation is a business approach that goals to assist battling

associations with improving their outcomes. Cutting back staff and items, stripping failing to meet
expectations business contraptions and markets, and rethinking significant endeavor exercises like
patient charging or phlebotomy contributions are normal conservation systems. Fundamentally, a
conservation plan is a circle back method that assists you with remaking hierarchical energy and
financial equilibrium by means of bringing down spending in defenseless locales and zeroing in on
the parts of your firm that help cutthroat advantage and benefit. The objectives of a conservation
plan are to bring down costs, lessen present items, and diminish the labor force. Because of
monetary slumps, industry-tremendous concerns, or inside inconveniences, associations may
likewise save. Laborer cutbacks are frequently used to procure limits. This is an ordinary
legitimization for conservation: chiefs expect that by lessening the size of their organization, they
might be equipped for keeping it beneficial.

Significance of Directional Strategy

Bunches without a coordinated technique risk neglecting to focus on their objectives and goals and
straying away from bearing with errands and plans. A directional technique permits living
persistently in the most essential way conceivable even as expanding profit and the items and
contributions they give clients. They achieve this by guaranteeing that singular offices team up to
secure organization objectives instead of seeking after their own. The reason for a directional
technique is to give direction or thoughts for an organization's development. The directional
methodology makes a specialty of how the association has developed or will grow as opposed to the
games and choices made, which are elements of functional techniques.

Conclusion: You could decide the directional technique that suits your association whenever you
have surveyed your business wants. For instance, on the off chance that your private company is
dropping money, a conservation strategy might be the most ideal choice. Cutbacks, getting rid of
special products from your line or submitting for chapter 11 or liquidation are conceivable outcomes
during conservation. The inverse directional methodology considers the costly qualities clients keep
and decides if the association should work by the one worth. This might captivate not best additional
clients but rather likewise a more fantastic committed labor force.

Q2. A business model is an outline of how a company plans to make money

with its product and customer base in a specific market. At its core, a business
model explains four things:
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- What product or service will a company sell?

- How it intends to market that product or service.

- What kind of expenses will it face?

- How it expects to turn a profit.

Business models are constantly changing — there is no one-size-fits-all model

that can be applied to every business.

Discuss the term business model and mention the key features of possible
business models observed in companies like IBM, HP, Amazon.com, KIA
Motors, Walt Disney, and LinkedIn. (Student can specify any four possible
business models,) (10 Marks)

Ans2. A business model defines how a company generates revenue.

Ultimately it comes down to the employer's ability. The business version
addresses basic questions about the problem you are trying to solve, how to solve it,
and market growth opportunities. Whether you're starting a new business, expanding
to new locations, or changing your go-to-market strategy, developing a successful
business model is essential. You can use the business version to centralize your
assumptions and conclusions about your possibilities and make sure you're listening
to the right music.

The Importance of the Business Model:

• TheBusiness Model helps start-up and developing companies to raise capital,

recruit expertise, manage andmotivate their employees. Installed companies
often need to revise their business models. Otherwise, you will miss out on
future trends and topics. Investors use business trends to analyze
organizations of interest. The price offer document is an important part of the
business version. It describes the company's products or services and why
clients or customers find them attractive. The mileage should be
clearly articulated to differentiate your service or product from your
competitors.
There are as many different business models as there are different types of
groups. Traditional business methods include direct
income, franchising and advertising. Some groups are
merging internet retailers with bricks-and-mortar stores,
dubbed hybrid fashion.
Large Business Model:
1. IBM: The business version of IBM offers software programs that enable
large enterprises to integrate various software systems for greater efficiency.
IBM's business is therefore guided by five number one business segments.
• Global Technology Services – IBM, like many large corporations, serves a
variety of industries including retail, telecommunications, healthcare, and
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a variety of other services. Similarly, IBM's business model has a
relatively robust and superior IT infrastructure that can serve its
customers and deliver some benefits.
• Global Business Services – GBS leverages world-class services such
as consulting and application control services.
• Software Service – This is similar to Middleware Service.
Middleware services receive layers of software that can connect
organizational structures.
• System Hardware Services – Hardware Services include
premium device server and storage solutions. IBM's business plans also
include some sample deployment services available.
• International Finance – Consumer Finance, Commercial Finance,
Remanufacturing and Resale are three key services provided by this industry.
2nd Amazon – Amazon's business edition is divided into "North America,
Worldwide" and "Amazon Internet Services". The North America and Global
segment shows the geographic breakdown of Amazon's retail operations. The
retail phase can be divided into net deals, debt for maximum sales, and
physical deals.
3. LinkedIn – LinkedIn's business model is Fermium. In other
words, the key skills are hands-on.
Still, the company charges cash for additional equipment to help recruiters
and candidates find jobs. LinkedIn connects you with other specialists as well
as companies and recruiters. Unlike other social his networks, on this platform
users can even pay to show themselves.
4. Walt Disney - Media Networks, Parks and Lodges, Studio Pleasures,
Custom Products and Interactive Media are Disney's four middle business
segments. Disney Television Group and ESPN Inc. are the two main divisions
that make up Disney's media network segment and are home to various
broadcast, publishing and virtual agencies. Disney's 2D business space is
Parks and Resorts, bringing Disney characters and stories to life through toys,
apps, clothing, books and shops. The Studio Enjoyment segment ensures that
customers around the world can enjoy high-quality movies,
melodies and dramas.
• The Direct to the Buyer and International business segments integrate
Disney's technology, content assets and distribution channels to deliver
customized stories to consumers. Media networks are the most profitable
of Disney's four businesses, followed by Parks and Resorts.

Conclusion:The business model has different segments such as

style and size, but the basic additions are all the same.
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It is important to note that the business version can actually be the idea of a
money making plan.In addition, investing time and effort in developing the business
version allows companies to follow certain steps. can lead your company to success.

Q3. Q3. Businesses have social responsibilities. They should try to help ease societal ills—
by providing employment to the long-term unemployed, for instance, or fighting
discrimination or avoiding pollution—in addition to generating profits for their
shareholders.
Maximization of profits is like maximizing food, as contended by Byron.
However, Friedman propounded all together differently the responsibilities of strategic
decision-makers. "Businessmen who talk this way are unwitting puppets of the
intellectual forces that have been undermining the basis of a free society these past
decades."
In the light of the above two statements, discuss according to you what are the
responsibilities of strategic business decision-maker
a. Responsibilities of business, according to Carroll. (5 Marks)

Ans3. The concept of corporate social responsibility requires groups

to support issues related to the common good. Philanthropy is not required
as companies do not take primary responsibility for these
undesirable circumstances. However, organizations are expected
to take responsibility for supporting networks and ensuring that the best
interests of society are taken into account.

Carroll's Corporate Social Responsibility

The concept of CSR became a major issue in the early 1950s.
Carroll proposed his CSR his pyramid of four: financial,
criminal, ethical and philanthropic. Here we need to describe these four
levels of responsibility.
1. Financial Responsibility: This phase concerns the most important
area of any organization - income generation. This is the lowest level of the
CSR pyramid. After all, no business can thrive without profit.
But the company must make a profit by defending the opinions and
positions of its patrons. This means
that the company must manufacture and bring in goods at a reasonable
cost.
2. Legal Liability: This is the next level in the pyramid and indicates that
the company has a legal obligation to comply with the law.
Laws that must be complied with include employment, environmental
protection, minimum wages, taxes, etc. An organization's reputation is
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affected when it does not follow clear policies.
3. Ethical Responsibility: At this level, an organization must comply not only
with the law, but also with basic business ethics. In today's scenario,
Zara, H&M and many others are. They have been accused of being
unethical and exploitative. This situation should be avoided if you want her
photo to remain intact.
4. Charity Responsibility: Charity is at the top of the pyramid and
occupies the smallest area. Businesses have to pay the disadvantages
such as their carbon footprint. This can be achieved by following a policy
of "returning" them to their community of origin.

Conclusion:
Most businessestoday have policies that ensure they should be particularly
socially responsible to society and the environment, leading to
dissatisfaction with previous approaches. That being said, competition
between entities that relate to and influence various other stakeholders,
including governments and local communities, is inevitable. As a result, the
institution is considered accountable for its
part. They need to reward society for what they have done, and
consequently provide viable explanations for stakeholders.
b. Friedman’s traditional view. (5 Marks)
Introduction
Friedman's theory assumes that shareholders are the backbone of the company and
must be treated with the utmost care. To maximize profits, organizations
must discover new revenue streams through value creation and introduce new
products and services while keeping prices low. Mr. Friedman
also warned that major decisions, including social activities, should be made
by the shareholders rather than on their behalf with the help of everyone else.
Friedman's Traditional
Milton Friedman's essay The Friedman Doctrine was published in 1970, in which he
defined an entity as having no social obligations to the society in which it resides.
Instead, he argued that the company's primary responsibility should lie with its
shareholders.
Friedman backed up his claim by stating that each director was an owner person.
Individuals running for public office are expected to perform their duties in
accordance with their employer's expectations. As such, they owe a great deal
of service to their employers before helping other parties. We believe that we need
to focus on maximizing This opinion shows the impact of the
Friedman Doctrine on economies around the world. Various activities that are no
longer important to maximizing shareholder value need not be
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prioritized when allocating economic resources. The basic goal of a company
should be to increase the profitability of the company. Because this is what
shareholders care about.
This theory holds that corporate social responsibility is to achieve higher
returns for stakeholders, and that it is a holistic responsibility with far-
reaching implications. Among the shareholders of many public companies are
many ordinary people who want to earn extra money by investing in stocks instead
of putting their money in the bank. People lost their retirement plans, many white-
collar workers lost their jobs, and it had a huge impact on society.