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Strategies in Action. Road Map. Long Term Objectives Alternative Strategies ( Discuss via Case Studies ) Poter's Five Generic Strategies ( Discuss via Case Studies) Means for Achieving Strategies Discussion. Long Term O bjectives.
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Road Map • Long Term Objectives • Alternative Strategies (Discuss via Case Studies) • Poter's Five Generic Strategies (Discuss via Case Studies) • Means for Achieving Strategies • Discussion
Long Term Objectives Long-term objectives represent the results expected from pursuing certain strategies with in a time frame
Case 01 John Keells Holdings established the "Keells Super" supermarket chain to sell their products to the Sri Lankan market.
Case 01: Question & Answer • What is the strategy taken by JKH in the above scenario ? • Backward Integration • Horizontal Integration • Forward Integration • Gaining ownership or increased control over distributors or retailers.
Case 01 Other Explanations Backward Integration Horizontal Integration Seeking ownership or increased control of a firm's suppliers Seeking ownership or increased control over competitors
Case 02 DFCC Vardhana Bank as the smallest commercial bank in the country which came up with a savings account product which gives 10.5%interest ( Highest interest rate given by Sri Lankan bank for a savings account)
Case02 Question & Answer • What was the strategy used by DFCC Vardhana Bank? • Market Penetration • Product Development • Market Development • Seeking increased sales by improving present products or services or developing new ones
Case 02 Other Explanations Market Penetration Market Development Introducing present products or services into new geographic area • Seeking increased market share for present products or services in present markets through greater marketing efforts
Case 03 NDB Bank entered in to insurance business by taking over Eagle insurance in 2003
Case 03 Question & Answer • What NDB Bank did ? • Follow a Related Diversification strategy • Follow a Unrelated Diversification strategy • Adding new but related products or services
Case 03 Other Explanations • What is Unrelated Diversification strategy ? • Adding new but unrelated products or services to the business. Eg. Sri Lanka’s Cargills Group to set up own bank called Cargills Agriculture and Commercial Bank (CACB)
Case 04 Shell Gas Lanka decided to close down one division of the company and filed an application for a layoff of 17 workers on April 18, 2001.
Case 04 Question & Answer • What was the strategy used by Shell Gas Lanka? • Retrenchment • Divestiture • Liquidation • Regrouping through cost and asset reduction to reverse declining sales and profit
Case 04 Other Explanations Divestiture Liquidation Selling all of a company's assets, in parts, for their tangible worth • Selling a division or part of an organization
Case 05 • Mihin Lanka (Pvt.) Limited is a low-cost airline based in Colombo, Sri Lanka. Its main focus is providing low cost flights from Colombo to a number of cities in India and the Gulf States
Case 05 Question & Answer • What is the strategy used by Mihin Lanka? • Cost Leadership • Differentiation • Focus • A primary reason for pursuing forward, backward, and horizontal integration strategies is to gain low-cost or best-value cost leadership benefits
Case 04 other explanations Differentiation Strategy Focus Strategy A successful focus strategy depends on an industry segment that is of sufficient size, has good growth potential, and is not crucial to the success of other major competitors • Different strategies offer different degrees of differentiation.
Case 01 Other Explanations Horizontal Integration Example Royal Ceramics Co. acquisition of Lanka Ceramics Co. in 2013. Due to that transition, the entire tile industry in Sri Lanka including Lanka Wall Tiles, Lanka Tiles, Rocell came under a single ownership