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SM Exam Answer Paper

The document is Md Atikur Rahman's final examination answer script for the Spring 2020 semester. It contains his responses to 4 questions for his Strategic Management course. In his responses, Rahman discusses: 1) Choosing a broad differentiation strategy over low cost for industries in Bangladesh due to creating brand loyalty and reducing price competition. 2) Ways for a business manager to improve market position such as developing a unique brand, acquiring competitors, focusing on niches, innovating, and engaging customers. 3) Key factors to consider when entering a new business like having a good idea, expertise, assessing costs, competition, location, staff, and technology. 4) Developing strategic

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104 views8 pages

SM Exam Answer Paper

The document is Md Atikur Rahman's final examination answer script for the Spring 2020 semester. It contains his responses to 4 questions for his Strategic Management course. In his responses, Rahman discusses: 1) Choosing a broad differentiation strategy over low cost for industries in Bangladesh due to creating brand loyalty and reducing price competition. 2) Ways for a business manager to improve market position such as developing a unique brand, acquiring competitors, focusing on niches, innovating, and engaging customers. 3) Key factors to consider when entering a new business like having a good idea, expertise, assessing costs, competition, location, staff, and technology. 4) Developing strategic

Uploaded by

AtikurRahmanNadim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Final Examination

Answer Script
Semester: Spring 2020

Name: Md Atikur Rahman

ID: 2019210004111

Section: 1
Program: Master of Business Administration (1 Year)
Batch: 34
Course Code: MGT687
Course Title: Strategic Management
Submission Date: 05-06-2020
Full Marks: 40
Question: 1: Suppose you are going to make a strategy for one of
these industries in Bangladesh- Garments/ Education/Transport.
What strategy will you choose between low cost or broad
differentiation?

Answer:
I will choose broad differentiation strategy because as this is a big industry I need to be
perfect. That’s why I will choose these strategy.
There are some several reason more why I will choose broad differentiation strategy They are
as follows as given bellow –

 Consumer brand loyalty. Effective differentiation may create brand loyalty in


customers if a business maintains the perceived quality of your products. For example,
if you have a brand that is marketed by a sports figure, it will likely increase brand
loyalty because it enhances the value of your brand.

 No perceived substitutes. A strategy that successfully differentiates may present the


idea that there is no other product available on the market to substitute it with. A
business may gain an advantage in the market even when there are similar products
available because customers will not be willing to replace your product for another one.
Companies try to differentiate themselves by providing consumers with unique products
that are frequently revolutionized.

 Reduced price competition. Differentiation strategy allows a company to compete in


the market with something other than lower prices.

 Unique products. This benefit of a differentiation strategy is that it builds on the


unique qualities of a product. Your company may create a list of characteristics its
products contain that your competitors lack. Those characteristics will differentiate your
product, and you may communicate this through effective marketing and advertising. 

 Better profit margins. When products are differentiated and turned into higher-quality
products, it offers more opportunity for larger profit margins. For example, if your
target market is willing to pay a higher price for top quality or better value, you may
generate more revenue with fewer sales.
Question: 2: As a business manager how are you going to improve
your company’s market position?

Answer: As a manager of a company we have various important responsibility. One of


the most important role is to improve company’s market position. So now I will discuss about
some of the responsibility that a manager can perform to improve the company’s market
position.
They are as follows-

 Develop a unique brand position and be consistent


We can all agree, Coca-Cola is one of the most known brands in the world. That red
and white color has been known across the world for over 130 years. And that level of
consistency, from their products to their marketing strategies, have made them stand
out. Owning 48 % of the beverage market share, Coca-Cola managed to produce
numerous products under different names and brands. But their iconic can of Coke
still remains untouched.

 Acquire a competing company


Mergers and acquisitions are a commonplace among big companies these days.
Perhaps the easiest way to increase your market share is to snap up your competitors.

 Market to smaller groups or niche


It may seem counter intuitive to target a small market when you are looking to
increase your market share. But one thing many businesses don’t know is this – the
money is in the niche. When small markets are combined together, they really add up.
Focusing on one product, one idea, and one group at a time helps you find real
customers.

 Planning an Increase in Market Share


Quite obviously, increasing the market share of a brand in particular or that of the
organization, in general, will be one of the most important things any top management
will be striving to achieve. 

 Engaging With Customers


You must make customer engagement a part of your core business practice. It will not
only help in maintaining the existing customers but can also attract new customers at
a fair pace. 

 Use a Referral Program


Finding and acquiring new customers can be a time-consuming process. That’s why
referral programs are being used by many B2B businesses. 

 Spring Out With Something Special


A number of factors can impact the market share of an organization. Finding a need
and filling that need or, in other words, the ability to address a specific need of the
market in a simple way can help create a distinctive position for your brand. A touch
of exclusivity in everything you do can help attract audience attention and do wonders
for your sales numbers.

 Stay relevant through innovation


Let’s talk about Google which currently holds 90.8% market share in the web, mobile,
and in-app searches. Yes, that’s right. You might be wondering – how does Google
manage to monopolize the market and can’t have a real competitor? The strategy lies
behind staying relevant through innovation.

 Obsess over customer engagement


It may sound bizarre, but really, the best people equipped to sell your product and
make it popular are not the marketing agencies, consultants or salespeople you’ve
hired. They are the ones who actually purchased your product. But being able to turn
your customers into effective advocates for your brand require great customer
engagement strategies.

 Embrace flexibility
We know it – we can be at our most creative self when we have a more flexible
working schedule. And for that reason, many companies have deviated to the 9-5 shift
and adopted a more generous, carefree work environment for their employees.

 Practice promotional innovation


Mint, a financial tracking startup, proved that it’s possible to stand out from the
competition by adopting well-executed online marketing strategies. Entering the
saturated financial management industry is never easy, let alone dominating it. But by
publishing hundreds of quality contents, from informative blog posts to helpful info
graphics and viral videos, they found new customers and grew their business.

Question: 3: If you choose to enter into a new business, what


factor will you consider?

Answer:Here are the list of factors to consider before starting a new


business:

 A Business Idea

Every business starts with an idea – a super duper idea that actually works.
If you want your business to stand out, you will need to offer something that
no one else has offered till date

 Knowledge or Expertise

Once you know what business you want to start, you will have to start
gaining the required knowledge and expertise to start that business.

 Market or Demand
Once you are sure of starting your business, your next step would be to explore the
market or the demand for your product or service.

 Start-up Costs

Estimating your start-up costs is one of the very important things to consider when
starting a new business. You will have to assess the total cost that is required to set up
and run your business successfully.

 Capital and Finance

No business in this world can run without money. Depending on the type of business
you are starting and the initial costs that you will have to pay up for, you will know
what kind of capital you would need to start your business.

 Competition

Unless you know who your competitors are and what they are doing, you will not be
able to survive in the market for long. If your product is a monopoly competition will
not matter. Else, you will have to come up with an excellent strategy to fill in the
demand and supply gap.

 Location

One of the most important things needed to start a business is a good location. If
yours is a retail business you will have to look for a well-populated area that is easily
accessible.

 Staff

Your staff members are the ones that can make or break your business. Without
efficient manpower no business can ever succeed. That said an efficient staffing
strategy needs to be in place if you want to reduce your staff replacement expenses.
You can hire a recruitment agency or use various recruitment tools to fill in your
positions with the right talent.

 Technology

Technology is one thing you can never compromise on when it comes to starting a
new business in today’s world.
Question: 4: How will you develop resources and capabilities to
execute strategy properly?

Answer: There are several ways you can align your capabilities and resources with
your strategic goals:

 Determine your strategic capabilities. Your organization has many capabilities.


These are made up of processes, systems, and talent. Identifying which capabilities
best support your desired outcome will enable you to make aligned organization
choices that lead to differentiation. For example, at one technology firm we worked
with, they had an uncanny ability to design simplicity and ease-of-use into their
systems. Even though they had robust functionality, they found ways to make their
system intuitive and easy for users. As a result, they constantly gained favorable
reviews and new users who were looking for systems that were easy to use and train.
The capability of designing intuitive systems was not accidental, it was understood,
intentionally designed into their organization and reinforced in how they worked and
operated as a company.
 
 Use your strategic capabilities to differentiate your company. Being able to offer
capabilities that set you apart from your competitors is a critical advantage. To do this
effectively, you need to clearly identify the market niche your company is filling or
creating, and diligently identify, build, and exploit new capabilities to strengthen your
unique positioning in the marketplace.
 
 Be willing to shift resources. Strategy looks to the future; capabilities are aligned to
the past. New or different demands that get placed on processes, systems, people, and
practices create strain on the current structure and necessitate shifting revenue and/or
other resources from one area of the business to another to align with future strategic
plans. While it may be necessary to implement cost cutting measures, be sure to do so
with surgical precision so as not so undermine the strategic, differentiating
capabilities that are needed to maintain a winning position. Stay focused on the areas
that have the biggest strategic impact and concentrate your capital investments there.
 
 Analyze the work as it relates to your strategy. Shifting resources will require that
you examine and reorganize work within your organization to maintain the ability of
work and people to deliver strategic value. This restructuring process is not the first
step in organization alignment; however it is often a necessary step in order to
accomplish your strategic plans. When determining which work to retain and which to
allot resources, give priority to that which is core to your strategy and differentiation.
When necessary, consider streamlining or even outsourcing work that is not central to
the strategy.

Your results follow naturally from your how you align your organization and resources to
drive strategy; the results you are currently getting are a reflection of how you have aligned
your organization and strategic capabilities. If you want different results, you will need to
realign or develop capabilities and resources in new and differentiating ways. In the process
of advancing your strategic planning efforts, you will inevitably develop goals and objectives
that will create benchmarks to measure success along the way and help you focus your efforts
to implement your plan.

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