Week 10

1. In your own words and using referenced quotes describe what is meant in strategy by 'Organizational Purpose' and describe what is meant by 'Corporate Social Responsibility'.

In strategy, organizational purpose means to give the firm its reason for the existence. Organizational purpose is made up of ideas, values, beliefs and objectives. It is needed to accomplish the goal of an organization and make innovative strategy to exist in a market. It can also gives direction of gaining competitive advantage and tackling competitors strategy. In simple words, it is a guiding force where every decision is made (Basu, 2013).

Corporate Social Responsibility means the responsibility for company to well manage their workforce and provide maximum satisfaction to the employees working in a company. In CSR companies are also responsible for the development and improvement of the society. They must take care of the stakeholders and try to make them happy (Basu, 2013).

2. Should organizations focus more on profit and shareholder satisfaction or responsibility and stakeholder satisfaction? Discuss your own thoughts but try to support your ideas with theory or examples

I think organizations must give priority to profit and shareholder satisfaction because only if organizations gain some profit they can use it for social responsibilities. Profit is needed to operate everyday operation of an organization whereas social responsibility is done to create a good brand image in a society. Although social responsibility might help a lot to gain profit, but before if organizations get more focused on earning profit and use it for social responsibility they can ultimately maximize the profit of an organization and there will be win-win situation for both organization and societies.

3. Write about your experience with today‘s case study. What answers did you give to the questions? What did you think of the CEO?

Today's case study was very interesting, it was about Pepico. The case study clearly presented the strategies that Pepsico is obtaining to regain their market share and compete with their competitors.

               a. What are Pepsico‘s strategic objectives? Why does the firm exist?

Pepsico's strategic objectives are to regain the market share which they lost with arch rival coca cola. They are introducing healthier drinks or snacks to attract consumers which they are losing every year by 3%. They are also increasing their marketing and advertising investment to compete with their competitors.

The firm exists due to strong product diversification and good portfolio management.

               b. What are the possible strengths and benefits of the strategy?

Some possible strengths and benefits of the strategy are:

• They could regain their market share.
• By opting to healthier drinks and snacks they can attract more consumers.
• There could be growth in revenue and profit.

               c. What are the possible weaknesses and disadvantages of the strategy ?

Some possible weaknesses and disadvantages are:

• More investment in marketing and advertising
• Downsizing their employees
• Pepsi Next may also fail like Pepsi Edge

               d. Do you think the organization has the right balance between profitability and responsibility?

I don’t think the organization has the right balance between the profitability and responsibility because shareholders were not satisfied due to the decreasing stock price and they have announced to cut their employees by 3%. Likewise, it does not look like they are investing any money on social responsibility.

CEO is trying her best to revive the company's core business and establish company as a maker of healthier drinks and snacks. Likewise her aim to triple the revenue of nutritious products by 2020 is a positive step. Although she is not able to please shareholders and cutting number of employees I find her good at her job and dedicated towards to the company's objective.

References:

Basu, C., 2013. [Online]
Available at: http://smallbusiness.chron.com/difference-organizational-purpose-objectives-36051.html
[Accessed 2013].

Wiley Ireland, R., Hoskisson, R, and Hitt, M. (2009) The Management of Strategy: Concepts and Cases, 8th Ed. Cengage Learning

Grant R (2010), Contemporary Strategy Analysis: concepts, techniques,applications Ed 7. Blackwell.

Week 9

1. In your own words and using referenced quotes describe what is meant in strategy by the ‘Resource-Based View’?

The resource- based view of the firm and strategy combines the internal analysis of phenomena within companies with the external analysis of the industry and the competitive advantage. Any firm which can attain competitive advantage can gain economic value. It is undertaken to find out the strengths and weaknesses of an organization. It analyses current vision, mission, strategic objectives and strategies of an organization to gain competitive advantage within the industry (businessdictionary.com, 2013).

2. How might you undertake ‘Internal Strategic Analysis’?  What models would you apply and why? Where would you go to find the information you need?

Internal Strategic Analysis identifies and evaluates the factor that is influencing micro environmental changes. Organization has to closely analyze and monitor all the elements of micro environment in order to stay competitive. It is undertaken to find out the strengths and weaknesses of an organization. It analyses current vision, mission, strategic objectives and strategies of an organization to gain competitive advantage within the industry (mystrategicplan.com, 2013).

There are different models to analyze internal strategy.

• Value Chain Analysis

Value chain analysis has been widely used as a means of describing the activities within and around an organization, and relating them to assessment of the competitive strength of an organization. One of the key aspects of value chain analysis is the recognition that organizations are much than a random collection of machines, money and people.  These resources are of no value unless deployed into activities and organized into routines and systems which ensure that products or services are produced which are valued by the final consumer/user. In other words, it is these competences to perform particular activities and the ability to manage linkages between activities which are the source of competitive advantage for organization.

• The McKinsey 7S Model

The McKinsey 7S Model consists of seven independent factors that are used to measure the quality of the performance of the firm. It involves 3 hard elements and 4 soft elements. Hard element consists of strategy, structure, systems. Soft element consists of Shared Values, skills, style and staff. Hard elements are easier to define where they can be easily influenced by the management. Soft elements are hard to define and are influenced by the culture. This model helps to analyze the current situation, a proposed future situation and to find the gaps between them.

• VRIN tool

VRIN Analysis enables managers to recognize their core competencies and key sources of competitive advantage. VRIN tells what they should do, given the relative strengths and weaknesses of their resources and capabilities. Then managers’ job is to bundle resources and capabilities to achieve competitive advantage. Competitive advantage is derived from unique resources and capabilities. Firms distinguish themselves from competitors by developing Core Competencies which are the resources of a firm that allow it to differentiate its products or services from competitors. Core competencies are the basis for strategy and competitive advantage and are most effective when they are based on intangible resources and organizational capabilities (Boulton. W, 2013).

3. Talk about your group video work. How is it going so far? Do you have a plan? What are you most worried about at the moment? What is going well?

We have started working on our group video work, we are now at initial stage, and we have planned to do a video work on Wal-Mart Company. As we are collecting the information about the company from secondary sources, there is no problem so far. Overall it is going well.

References:

business dictionary., 2013. business dictionary. [Online]
Available at: http://www.businessdictionary.com/definition/resource-based-view.html
[Accessed 2013].

Definition of Internal Analysis | MyStrategicPlan Resources. 2013. Definition of Intermal Analysis|MyStrategicPlanResources. [ONLINE] Available at: http://mystrategicplan.com/resources/external-analysis/. [Accessed 30 March 2013].

Boulton.W., 2013. auburn university [Online]
Available at: http://www.auburn.edu/~boultwr/html/strategic_analysis_model.htm
[Accessed 2013].

Week 8

    1) To which strategic group might Islington College belong?

                 

                  This strategic group might belong to Educational Service sector.

·         Can you map the group?

Name of the college	Location	Fee Structure	Program	year
British College	Thapathali	12-13 lakh	BBA	3 or 4 years
ACE	New Baneshwor	520,000	A level, BBA, MBA, EMBA	4 yrs
Kings College	Babarmahal	330,000 + $1075	A level, BBA, MBA	4 yrs
Islington College	Kamal Pokhari	7-8 lakhs	BBA, IT	3 or 4 years
KCM	Gwarko	5-6 lakh	BBA	4 yrs

Week 7

Pestle analysis is needed to study about the macro factor of the industry. It helps to understand about the political, economic, socio- cultural, technological and legal factors of the industry (I. o. C. A. o., 2010).

Political Factor

Due to frequent change of government, it is directly or indirectly affecting Big Mart. Although the governing party would encourage continuing with the business, some opposition political parties will call off for strikes and harm the business. Likewise, with unstable government there might be change in rules and regulations too.  Today, different trade unions who are involved with various political parties are influencing business by their unachievable wants.  So, the political condition of the country should be well known for smooth operation of business.

Economic Factor

Since its establishment in 2009 till today it has been doing some good business. The purchasing power of people has increased. Although the inflation rate is increasing people are consuming more, this could help Big Mart to bring up with new products or diversify their products so that all age groups people could consume goods from their mart.

Social Factor

When we talked with some of the customers in Big Mart, they were very happy with the services provided by the store. Customers were more attracted by the diversification of product. They could find all kind products under one roof so it was easy for them to shop. Customers were happy with the quality management and their pricing strategy.

Technological Factor

Nowadays people are most attracted to the place where it is convenient and easy for them to shop. Big Mart is actually lacking its competitive advantage in this factor. Although they have computerized cashier system, there was queue of people to in cash their purchased goods. If Big Mart can open an ATM lounge or come up with online shopping they can help customers to shop easily and gain competitive advantage.

Legal Factor

Big Mart is not much affected by this factor. They have fulfilled all kind of procedure to register their company in Nepal. Only if there is any kind of change from national level then they could be affected. Otherwise they are on the safe side of this factor. In case of any other legal issues they have hired some top lawyers to look after their cases.

Environmental Factor

Big Mart is located at one of the prime location in capital of nation, so they are not much affected by the surroundings. Only if there is some kind of life threatening natural disaster or calamities it could get affected.

References:

India, I. o. C. A. o., 2010. Strategic Management. New Delhi: Sahitya Bhawan Publications.