Strategic Management
April 2022 Examination
Q1.
Answer 1.
Introduction
A company's market share can also be increased through innovation. Even if they previously
purchased it from a competitor, a company's creative new product is rapidly snatched up by
eager customers. As a result, the company's market share increases while the percentage of the
agency they left decreases. Making moving from a competitor's goods more difficult when a
greater price is offered may help companies maintain their market share in today's market.
Customers that are pleased with a firm's product or service spread the word about it, resulting in
increased revenue for the company. It would not be necessary to pay for formal marketing
because word of mouth would spread.
Extra efficient products, offerings, tactics, technologies, or commercial enterprise fashions are
what permit this to occur, and they are ready to be had to markets, governments, and the general
public at the same time.
Discussion
Phenomenal customer service
It's not uncommon for a company to lose 33% of its clients as a result of a bad carrier. In today's
reasonably competitive market, losing clients to substandard providers is impossible. According
to 76 percent of customers, the capacity of a firm to meet its customers is determined by the
quality of its customer service. As many as 57 percent of those polled said that the most common
reason for leaving a company was "unaddressed unfavourable remarks." The most convenient
option to make things right with a disgruntled customer is to respond to their negative review on
your company's website. Customer retention necessitates a response to both positive and
negative feedback. If a corporation listens to its customers, it may be able to retain 14% more
customers if it's far listened to and acted upon. According to cent of yank consumers, consumer
opinions are taken into account by using 84.
Branding That Stands Out
That is why it is so important when it comes to branding. If you want to stand out from the
crowd, you must be one-of-a-kind. Starbucks, the coffee behemoth, has a mermaid as its logo.
The connection between a mermaid and a cup of coffee is yet unknown. Nothing at all. However,
it distinguishes them from the competition. Because of colour, shade is an important part of
branding; logo repute improves by an impressive 80%. Using the same colours and fonts
throughout your advertising and marketing materials can also help your logo stand out more.
Build a Strong Online Presence
Customers begin their search for local businesses on the internet in 97% of cases. If you want
your business to prosper, you need to establish a stable internet presence. For the purpose of
brevity, I'll just say that if you're not taking advantage of your internet presence to its full
potential, you're losing money. Before being labelled innovative, it would help if you initially
came up with something spectacular. At the same time, despite its volatility and unpredictability,
innovation is a wonderful way to set yourself apart. To win, you must create a completely unique
product that no one else can provide.
Reward Customer Loyalty
Customers have a higher opinion of a company that gives back to the community or the
environment, according to 92 percent of those polled. It is critical to have a goal that is in line
with your company's core values. Discover a cause that unites your audience and your company's
brand and get involved in it. Just because you adore puppies doesn't mean you have to donate to
an animal shelter. For 64 percent of customers, a company's "shared values" are the most
important factor in maintaining client loyalty. The principles that you and your colleagues share
must be used to their full potential.
Admit errors and fix troubles to construct more potent Relationships
The satisfaction that customers have with a brand is tied to that brand. Customers will not care
about an emblem if they have a single unfavourable experience with it. You must always be
willing to go above and beyond the call of duty in order to provide better service to your clients.
Even if you are not at fault, don't be scared to say it if you make a mistake. Businesses must
recognise and correct their errors in order to improve their overall performance. However, if the
situation is managed effectively, it has the potential to enhance client family members
significantly more than before.
Conclusion
Businesses have a responsibility to society and its key stakeholders, such as consumers,
employees, and owners; some even claim that this is their primary responsibility. Consider
Microsoft as an example. It offers a wide range of CSR projects to expand the network and keep
the company in the public eye. CSR activities help businesses stay top-of-mind with their
customers, establish brand loyalty, and, in some cases, even earn additional revenue. If you don't
bring up unpleasant news in the job, you're being dishonest. Clients will recognise and trust you
more if you deliver bad information as quickly as feasible.
Q2.
Answer 2.
Introduction
PESTEL is a business technique that examines the external environment and its impact on the
workplace. The authority's coverage, the economy, society, technology, and the natural
environment are all elements, in addition to those in PESTEL. In India's business environment,
the PESTEL evaluation approach is used to examine these macro-environmental variables. Such
software is used by Indian businesses to attract buyers and global corporations, as well as to
ensure long-term growth and profitability. India, one of Asia's fastest-growing countries, offers a
plethora of fresh business opportunities for both domestic and international companies. Due to its
status as a developing country, India provides several prospects for enterprises, particularly start-
ups.
India presently has the second-biggest population globally, making it a distinguished player in
global enterprise. For that reason, they have got end up one of the internationals most significant
buying and selling centers.
Discussion
PESTEL analysis
Political factors: The capital market of a country is boosted by quickly resolving political
issues. For years, India has been plagued by disputes with its neighbours, resulting in political
unrest. Politicians' personal interests, ideological conflicts, and other issues all play a role in how
well a country recovers from political crises. Despite the fact that the scenario has progressed in
recent years, the political environment remains extraordinary. Political balance is a strong match
between Indian organisations attempting to expand to the greatest extent possible.
Economic Factors: These characteristics have an impact on an organization's long-term and
short-term profitability, as well as its ability to set goals. Inflation, employment, unemployment,
and consumer purchasing power are all influences on a company's profitability. When deciding
on a deliver-on-demand model for your company, keep the following in mind: The country's
expanding GDP can be used by agencies. Since the country's economic reforms in 1991, more
foreign investment has flowed into India, particularly after the establishment of the Foreign
Investment Promotion Board (FIBP). To this point, it's been a boost to the economy. According
to the PESTEL analysis, India's taxation regulations are suitable for business expansion.
Furthermore, the large domestic market provides businesses with a plethora of fresh options.
Social factors: Social class is one of the aspects that influences and shapes customer attitudes
and behaviour. When attempting to comprehend the socio-cultural norms of a specific location, it
is critical to keep several aspects in mind at the same time. It assists agencies in learning about
the preferences and potential of their target market. India is a country with a diverse cultural
landscape. For an agency to succeed, it must have knowledge about the country's culture and
beliefs.
Technological Factors: Without technological advancement, the financial system's expansion
may be impossible. India's technology advancements are attracting a growing number of
international IT firms. Innovation, automation, and generational focus all have an impact on
commercial enterprise operations. It has an impact on the production, distribution, and
communication of goods and services. India's IT sector is growing at a steady pace. A healthy IT
department ensures that the software is regularly updated and improved.
Environmental Factors: India's businesses can take advantage of a shift in environmental
awareness to focus on long-term sustainability. Climate change technology, pollution, and a lack
of raw materials are all problems. Environmental awareness has grown as a result of recurring
environmental disasters. Businesses are looking for innovative ways to deal with it. Customers
are becoming more aware of environmentally friendly products and processes, and businesses
must adapt or risk losing customers. The erratic and unpredictable nature of the Indian climate
can be detrimental to businesses and infrastructure. Industrialization has become a problem in the
United States due to rising pollution levels and their negative influence on public health and
safety. The sustainability strategy, which includes recycling, a better waste management
machine, and other measures, must be implemented.
Legal Factors: Prison elements commonly overlap with political issues in India's PESTEL. An
organisation must follow the legal standards and customs of the countries or territories where it
does business. Labor costs and levies may be affected by recent improvements in recycling,
employability, and anti-discrimination legislation. These possible choices will be found by
international corporations looking for a trading opportunity.
Conclusion
India is a republic and the world's largest democracy. In addition, it is the world's oldest republic.
Corruption is a major issue that they will have to deal with in the meanwhile. Only then can the
United States' financial development be conceivable. Through privatisation attempts,
government and political engagement in organisations and start-up states has been diminished.
Entrepreneurs will flourish in the future in their own right. The corporation must also be aware
of the availability and demand for items in the local labour market. The country's large
population supports several organisations.
Q3.
Answer 3a.
Introduction
Stakeholders are all employees and departments within a corporation who are involved in or
affected by a project. A stakeholder analysis must be undertaken prior to the graduation of any
mission to understand who the primary stakeholders are, what amount of involvement, interest,
and influence each organisation has, and how high-quality to communicate with each of them.
Discussion
To enlist the help of critical organizational players
They could benefit from the knowledge and enthusiasm of prominent people, CEOs, and other
key stakeholders early on in the project to assist the mission succeed. If the programme is
delivered early, it has a better chance of gaining the support of those key players. However, they
must first assess a stakeholder before deciding which prominent and diverse stakeholders to
engage. Stakeholder evaluation activities will vary depending on the company, industry, and
groups who engage.
To gain early alignment amongst all stakeholders on goals and plans
Almost every product manager wishes they had a better understanding of their company's goals
and objectives. They'll employ stakeholder analysis to help them pick who to include in the
kickoff and early-stage conferences for the challenge. Each mission participant will gain a better
understanding of success standards and will be able to contribute to them by assessing the
assignment's stakeholders.
To help cope with conflicts or issues early on
Because many agencies are involved or affected by the introduction of a product, stakeholder
evaluation is crucial for product managers. A key man or woman inside the organization might
not respect initiative or pick to re-allocate assets to different tasks without project a stakeholder
have a look at. Those humans may additionally deliberately attempt to sabotage or derail the
industry. To ensure the task's successful, it might have been clever for them to do a stakeholder
evaluation earlier than the beginning of the venture. Because of losing time with the CEO, they
could have offered the idea and sought their consent before moving ahead.
Conclusion
While launching any complicated industrial endeavour, stakeholder analysis can be a strategic
asset. It is more likely to succeed if they identify as many stakeholders as possible early on and
adapt their communication to each one in order to gain support and acceptance.
Answer 3b.
Introduction
Several innovation projects have already failed because the innovation instruct's sponsor
neglected to identify, consult, and include key stakeholders early enough. If stakeholders are not
regularly regulated, a work that has departed from the core business model's strategic alignment
will not be stopped immediately, resulting in a loss of significant time, resources, and effort.
Discussion
One of the most prevalent causes of innovation task failure is the failure to involve key
stakeholders early enough, resulting in a misunderstanding of the project's goals and expected
outcomes. Furthermore, knowing and comprehending stakeholders allows them to recruit them
as project participants. It is critical for innovation leaders to identify and engage with
stakeholders early and often. Based on their assessments of what a group is working on and how
the problem affects their objectives, those prominent crew members can help, influence, or
damage a project. If stakeholders are brought in and briefed on the group's work, they may be
able to give a plethora of information and perceptions that can help move projects forward
A individual from a different section of the organisation who has dealt with a similar problem
before may be able to help identify out hazard areas, saving a group from doing "repeat work," or
supply information to speed up a project. Early participation and resolution of their issues
throughout the system allows expectations to be set and managed, ensuring that everyone is on
the same page and that time is not wasted. Despite the fact that this may appear to be a simple
task, it is not always clear who a group's efforts will affect. This could include developing a list
of potential partners before beginning a project and iterating on that list as you [Link]
stakeholder map and a strategy for informing the ones on the list approximately what you are
doing when it makes the whole experience can be evolved using this data. One of the most
truthful methods for determining whether or now not someone affects an assignment is to do so a
stakeholder evaluation.
Conclusion
As a result of this portrayal, you can see who might have an impact on your project and who
might be able to put it on hold. You'll also want to figure out the best time to bring in these staff
and how much focus you should give each character or company unit.
