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Task- 1
1.1
Identify and explain the ABC Plc mission, vision, objectives,
goals, core competencies strategy in terms of Business
strategy.
ABC Plc is a largest insurance company in Sri Lanka, in year 2014; company management is
evaluating the possibility of diversifying the business in to the tourism sector in order to capture
the growing tourism market. The proposed hotel is three star category Hotel which mainly target
the Indian and Chinese market segment who love to have their leisure activity in Sri Lanka.
However managing director of the company is required to have detail Analysis about the macro
and micro environment factors to see the underlying impact to the business. In addition to that
MD also evaluates the nature of the stakeholders and it is impact to the new business.
Therefore you are requiring to analysis the Macro and Micro environment and the stakeholders
using acceptable strategic management technique.
Vision
Vision is what keeps us moving forward where we want to go, even against discouraging odds.
It is the most powerful motivator in an organization if its vivid and meaningful enough, people
can do astounding things to bring it to realization. The vision statement describes an ideal
future.
According to the scenario ABC Plc vision is Diversifying the business into the tourism
sector and growing tourism market.
Because Sri Lanka has beautiful nature sources; which are attracted mostly by the foreigners,
Therefore ABC Plc has decided to star tourism business; it is possible to retain in the tourism
market.
Mission
Mission describes the organizations basic function in society, in terms of the products and
services it produces for its clients what you want to achieve by starting the business.
According to the scenario mission of ABC Plc as:
Mission -1 providing high quality service: - the hotel management should be provided the
high quality services to guests, therefore they should recruit service people for provide
(day, evening services quickly and increase guest convenience.
Mission 2 mainly target Indian & Chinese market segment: - the Hotel management
should be brought the Indian & Chinese culture for attract those related people.
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Objectives
Objectives set out more specifically the goals of the organization, the aims to be achieved and
the desired end results.
Providing morning services before 8.00am and evening services before 6.00pm.
increase the number of guest 25% in2014
responding to call within ten minutes (room services )
Aim or goals
Goals or aims give a sense of direction for the activities of an organization and are sufficient for
the satisfaction of the organizations mission
Goals -1 propose the three star Hotel: - the hotel should be come into three star categories
and can enhance the quality services.
Goals-2 prepares Indian Chinese food: - recruit the cookers who expertise in makes those
foods.
Core competencies - are Resources, process or skills which provide distinctive competitive
advantage. It expands into new end markets as well as provides a significant benefit to
customers.
Process: - the hotel every functions such as H/R, finance, housekeeping, food &
beverage and cookery; these department processes should be competence then
competitor.
Technology: - the hotel should be provides such as internet services (wifi, wiber setting),
laptop to guest and satellite (Dish TV)
Human: - the hotel must have best service people such as waiter, cooker, housekeeping
people and managers.
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Above three factors are become core competencies of hotel organization. Then it will create the
strategies after initiatives to provide for customer.
Conclusion
According to the ABC Plc (hotel) vision,mission,objectives ,aim and core competencies are
reach to achiceve mail goals and threfore it will make an expertise the oranizationa function
then compatitors.
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1.2
Identify and give your arguments for strategic planning
within ABC Plc.
Strategic planning
Definition
Strategic planning is the managerial process of developing and maintaining a strategic fit
between the organizations objectives and resources and its changing market opportunities.
Strategic planning is often referred to as corporate planning because it deals with the whole
organization.
Important of planning
a) It focuses attention on objectives by uniting the organization and its activities.
b) It removes uncertainly by providing a framework of activities that can be placed in
a context.
c) It facilitates control by supplying targets for performance.
d) It leads to economical operations by emphasizing efficiency and consistency.
The ABC Plc company concerns with strategic planning. (Three star Hotel)
Strategic planning process
The strategic planning processes can make strategic planning of any organization.
a) Strategic analysis: - in which a thorough assessment of the organization is undertaken,
covering as:
its objectives :- strategic analysis through such as Providing morning services before
8.00am and evening services before 6.00pm , increase the number of guest 25%
in2014 and responding to call within ten minutes (room services ).as result ABC can
make strategic planning for attract the guest.
Its resources and capabilities: - strategic analysis through such as available most
natural resources (seas, hills & water falls), and has sufficient financial resources
through issues of shares, most of the labour also available as result ABC can make
strategic planning grow the star Hotel.
its external influences :- strategic analysis through the government interventions as;
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Taxes and vat the hotel must be paid taxes, VAT to the government.
Government legislation The hotel must be followed government legislations
such as management protects the hotel labours, protects foods. As result ABC
can make strategic planning.
Its future potential: - strategic analysis through it has many opportunities of natural
resources and tourist; as result ABC can make strategic planning.
b) Strategic choice:-, in which the strategic options that exist are considered and the most
appropriate one selected.
Resources and capabilities: - it is a best strategic choice for improve strategic planning of
ABC (star hotel); because for tourism industries natural resources are very important which
are attracted by the tourist. In Sri Lanka have these resources. So the ABC (star hotel)
strategic choice in Resources and capabilities can make a strategic planning for nourish the
hotel industries In Sri Lanka.
c) Strategic implementation:-, in which the selected strategy is developed and put into action.
Resources and capabilities:- the strategic implementation on resources and capabilities of
ABC (star hotel).it should be constructed on where the natural resources are available
because tourists enjoy their holidays and where raw material are available; can prepare
meals for guests.
Conclusion
According strategic processes such as Strategic analysis, Strategic choice, Strategic
implementations are created the good strategic planning on as providing best services to guest,
having relevant resources and selected appropriate strategy implementation.
1.3
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Strategic planning for forests has to account for cross-cutting functional and spatial
relationships. The methods for this rely on maps and area planning, together with computer
simulations and models in regional economic geography.
E.g.: ABC Plc (Hotel) should be used the methods to examine spatial and inter-sectoral
relationships. It should plan for make relationship based on geography. Make good
relationship with various countries people can learn their culture, want and expectation.
It is a good opportunity to attract tourists.
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Conclusion
The different planning techniques such as Methods to Clarify Issues and Problems, Methods to
Examine Spatial and Inter- Sectoral Relationships, Methods for Social, Environmental, and
Economic Analysis, Methods for Social, Environmental, and Economic Analysis and Methods to
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Discuss the Future conduct with ABC Plc (hotel) for solve the scarcity problem, build the
relationship in geographical range and increases additional facilities.
Task-2
2.1
Conduct an organization audit for ABC Plc.
The Internal factors (organizational audit) in an organization refer to the strengths and
weaknesses born within an organization. They include customer service, production, and
development, marketing and sales.
The ABC Plc (Hotel) makes organizational audit on:
Production and brand the hotel should analysis; its production (meals or drinks),
whether it can prepare or not.
Strength available raw materials to prepare Indian and Chinese foods and Sri
Lankan foods.
Weakness some time raw material may not available.
Customer services the hotel should analysis; its providing services; whether it can
provide efficiently or not.
Strength available house keeping people for provides morning, evening service
and provide additional services to guest.
Weakness some service people not available and delay for providing services.
Human resource the hotel should analysis; its human resources; whether they are
sufficient or not.
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Strength the hotel has relevant staff for relevant operation such as waiters,
front officers, house keeping people and cookers.
Weakness some time staffs have not experiences for relevant operation such
as waiters, front officers, house keeping people and cookers.
Financial resources the hotel should analysis; its financial resources; whether it is
sufficient or not.
Strength the hotel has sufficient financial resources by issued of shares.
Weakness the hotel could not issue the most of the shares.
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Conclusion
According to the organizational audit such as Production and brand, Customer services, Human
resource, financial resources and Boston matrix conduct with ABC Plc .as result it can analysis
its available resources sufficient or not to carry out its activities and analyze its market
growth ,market shares.
2.2
Conduct an environmental audit for ABC Plc.
Environmental auditing
PESTEL analysis is in effect an audit of an organizations environmental influence with the
purpose of using this information to guide strategic decision-making.the assumption is that if the
organization is able to audit its current environment and assess potential changes, it will be
better placed than its competitor to respond to changes.
PESTEL stands for:
Political
Economical
Sociological
Technological
Environmental
Legal
Taxes and vat the hotel must be paid taxes, VAT to the government.
Government legislation The hotel must be followed government legislations such as
management protects the hotel labours, protects foods. As result ABC can make
strategic planning.
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Economic: - what is happen within economy, for example; economic growth/decline, interest
rates, exchange rates and inflation rate, wage rates, minimum wage, working hours,
unemployment(local and national),credit availability, cost of living, etc.
E.g.:
Economic growth -through the ABC hotel industry most foreign tourists will visit in Sri
Lanka; as result high income will contribute for economic growth.
Employees benefits:- through the ABC hotel industry, people will get job opportunities,
wages will be increase and if they get promotion cost of living will be decreased
(residential manager)
Cultural norms and expectations The hotel always reveal the cultural norm, attitudes
on its services.
Emphasis on safety keeps the fire extinguishers, show exit ways when fire situation.
Technological: - what is happening technology-wise which can impact what we do, technology
is leaping every two years, how will this impact our products or services. An organization,
technological change probably has the most rapid, persistent and profound effect.
E.g.:
Mobile and line phone: - these technologies are use in the hotel for front office
operation.
Internet and E-mails:- These are used in hotel identify the tourist and identify the
locations.
Employment law: - The hotel must be followed employees protection law (insurance),
providing regular wages or salary.
The hotel must be registered under the law.
Environment: - what is happening with respect to ecological and environmental aspects. Many
of these factors will be economic or social in nature.
E.g.:- The hotel drains can disaster environment, so it should be followed environmental
protection policies and procedures.
Conclusion
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According to the environmental factors such as political environmental, sociological,
technological, economical and legal (PESTEL) conduct with ABC Plc. as result this ABC (Hotel)
is impacted through Government legislation, Economic growth, Cultural norms and expectations
and environmental protection policies.
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2.3
Conduct a stakeholder analysis and explain the significance
of the analysis.
Significance of stakeholder analysis
Stakeholder analysis is important for the development of knowledge and understanding about
other organizations in the firms environment. All of those that indirectly assist the business in
achieve organizational objectives.
The stake holders are divided in two categories:i.
Internal stake holder employees, managers
ii.
External stakeholder- shareholders, bankers, customers, suppliers, government, local
authority, community, professional bodies and pressure groups.
Internal stakeholder
The employees ad mangers are connected with company, their objectives are likely to have a
strong and immediate influence on it. And they are interested in the organizations to growth,
they spend a great deal of their time and energy, therefore the firm has to pay them, as result
managers, employees will have an interest in the organization.
How internal stake holders conduct the ABC (star hotel)
Employee: - the employees are impact the business mostly, and giving hard working, as
result hotel organizational production will be increase therefore it has to provide wages or
salary.
E.g.:- the employees such as front office people (team), house keeping people & supervisor,
waiters and cookers.
Significant or benefits: - They are contributing mostly to do all hotel activities.
Managers: - the managers are impact the business as monitoring, controlling the all
activities as result hotel organization will go with good performance, will increase
productivity therefore it has to provide salary.
E.g.:- the manager such as general manager, front office manager, food & beverage manager,
executive house keeper and cook chef.
Significant or benefits: - they are contributing to manage all functions and decision
making as strategically, tactical and operational planning and problem solving.
External stakeholder
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The external stakeholders impact the business from the outside, they likely to have quite divers
objectives and have a varying ability to ensure that the company meets them.
How internal stake holders conduct the ABC (star hotel)
Shareholder: - the shareholders invest the money on company, it can receive the capital.
Therefore they will return on their investment.
Significant or benefits: - they are allocating the capital to Hotel.
Customer: - the customers involves with business for getting best services, they want
quality, services. Therefore the hotel organization has to produce as quality services of
what they expect.
Significant or benefits: - the customers (guests) are very important to hotel
organization, which is depending on customer; because it is getting income from the
customers.
Supplier: - the suppliers impact the business; they provide raw material (meats,
vegetables) to hotel organization therefore will expect payment.
Significant or benefits: - the suppliers are very important to this organization because
they provide raw material (meats, vegetables) according to order.
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Conclusion
According to the ABC Plc (hotel) organization stakeholders such as employees, mangers,
shareholders, customer, supplier, government, and bankers local authorities are significant to
organization; because they are providing hard earning, raw materials, capitals and
infrastructures. As result of that ABC Company will make efforts to achieve goals and objectives.
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Task-3
a. Analyze possible market entry strategies which GSM
can adopt in order to enter into India.
b. Analyze possible alternative growth strategies for GSM
falling into substantive growth, limited growth or
retrenchment (diversification) strategies which could be
adopted.
c. In your opinion select a future strategy which is
appropriate, feasible and desirable to GSM, when
entering into India.
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Personal Note
a) Entry strategies
The GSM is one of large mobile service provider; it wishes to operate in India; when GSM is
entering into India, it uses some entry strategies as:
Building up new businesses and development: - the GSM Company is using strategies, it
provides professional website services, for people who want to develop a brand identity, these
may include: logos, stationary designing; web development, search engine optimization (SEO)
and mobile application development. And also provide services that meet the clients needs, at a
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quality & their expectation, its service is delivered in a genuine way with a customer service, at
affordable price.
Marketing methods: - the GSM Company is using strategies, it has global mobile
communication system and works across 213 countries. And it is introducing mobile network
services, GSM mobile phones and it represents 82.4% of all global mobile connection. The
GSM mobile users are across the world wide than 370 million. And GSM network also agreed
with foreign operators for providing roaming services.
GSM Products and services: - the GSM Company is using strategies for producing products
and services to entry into India. The GSM provide Ocean wide coverage in deep waters such as
Voice calls (inbound and outbound), SMS messages (outbound and inbound), SMS notifications
and Phonebook and short dial code functions of the GSM phone.
The Tata Docomos GSM and CDMA services across India, with value based plan and easy
billing to meet their voice connectivity requirements. With Mobile Number Portability (MNP), they
can now shift to Tata Docomo services without changing their number and leverage the
advantage of superior voice clarity, pan India coverage and congestion free network.
The GSM Company provides additional service as:
I.
Choice plan
Start saving on their company mobile bills with our array of plans
Customized plans: Take their pick from a variety of enterprise specific plans or allow us
to put together a tailor made plan to meet their requirement.
Unlimited plans: Enjoy unlimited local and STD calls on any network.
Combo plans: Stay connected on Internet with excellent benefits on Data usage with
Voice plans.
Common User Group (CUG): Save on mobile phone bills with National CUG
Billing flexibility
conference
Roaming
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BlackBerry
BlackBerry services from Tata Docomo offers:
Franchising methods: - the GSM Company is using franchising methods for entry into India.
Tata Teleservices Limited (TTSL) on Friday entered into a strategic partnership with retail major
Future Group to offer mobile telephony services on the GSM platform. Starting with the telecom
circles in South India, TTSL will soon commence mobile operations under the brand name T24
and cover entire nation by the end of this year. This is a unique marketing alliance between a
retailer and a telecom operator in India. Under the franchise model, the service will only be
available to Future Group customers. Future Group will sell TTSL GSM connections under the
brand name T24 to customers in its retail outlets.
And the Videocon group of company is providing the GSM mobile services in Tamil Nadu.
b) Growth strategies
When GSM is entering into India, it uses some growth strategies as:
The GSM Company uses strategies on develops its products and services (GSM net work) in
India joint with Airtel Ltd Bharti, which provides mobile telecoms 26.5% market share in India.
Ericsson is a long-term partner of Bharti Ltd,GSM/GPRS networks are existing within 15 of the
23 Indian telecoms regions such as Mumbai, Maharashtra and Goa, Gujarat, Bihar (including
Jharkhand), Orissa, Kolkata, West Bengal and Madhya Pradesh (including Chattisgarh) And
enhanced data rates for GSM Evolution (EDGE) technology by Ericsson.
Bharti TeleVentures also signed a five-year managed services agreement with Nortel Networks
in March 2006. Nortel is hosting contact centre services for more than 19.7 million subscribers
to Bharti's Airtel GSM mobile, broadband and fixed-line services. Nortel will create a network
operations centre in New Delhi and provide network design, integration, support and
maintenance services for Bharti's contact centre architecture.
Diversification (new product in new market)
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The GSM Company uses strategies on Diversification
ITI has been a pioneer in the field of telecommunication. It is approaching with GSM company
for sustain in telecom industries. Therefore ITI Company is the only manufacturing GSM related
equipments in India. And also the ITI Company is further diversifying to manufacture products
such as established GSM network for MTNL in Mumbai, provides turnkey GSM solutions for the
BSNL West Zone & South Zone networks. And manufacturing of other GSM infra items like as
Roof Top Towers (RTT), Shelters and Switch Mode Power Supply (SMPS) in addition to BTS.
Market development (present product in new market)
The GSM Company uses strategies on develops its market, the GSM Company provide its
customer in KOLKATA to Shyam Teleservices (SSTL) which provides CDMA telecom service
under the MTS brand and The dual SIM handset is operated in both GSM and CDMA
technology in low- prices. The GSM customers are acquired such as upper middle income and
lower high income users, and introducing of the new phone base on low income entry level
customers. So it is allowed for grow up GSM market.
The GSM Company allows for provide services to MTS Company which is only CDMA based
single technology and allows introducing more dual SIM CDMA-GSM products. It also contribute
for grow up GSM market.
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4.1
Compare the roles and responsibilities for strategy
implementation in GSM and other organization of your
choice.
Role
Definition:- A prescribed or expected behavior associated with a particular position or status in a
group or organization.
Responsibility
Definition:-A duty or obligation to satisfactorily perform or complete a task (assigned by
someone, or created by one's own promise or circumstances) that one must fulfill, and which
has a consequent penalty for failure.
Example
I have chosen example of RELIANCE network organization for compare with GSM.
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Roles
GSM
Reliance
Responsibilities
GSM
Duties and responsibilities:-
Reliance
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Education
Community Health Care.
Safety initiatives for community.
Environment initiatives for the
community.
Livelihood Support Programs.
Improving quality of agricultural
produce.
Skill Up-gradation for Plumbers.
Supporting Indian Culture.
Promoting Sports.
Children's Welfare.
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4.2
Identify and evaluate resource requirement to implement a
new strategy for GSM.
Requirement of resource
Corporations live in world where some resources are more limited than others. A strategy
requires decisions as to how resources should be deployed and this is an important issue in
evaluation and implementation.
According to the GSM for implement new strategy some resources are needed as:
Plan
Finance
Time
Information
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Plan
Definition
Planning: - is the process of deciding which objectives need to be achieved and of preparing
how to meet them
Strategic planning: - is the managerial process of developing and maintaining a strategic fit
between the organizations objectives and resources its changing market opportunities.
Why planning is important
Finance
Finance (money), and the infinite variety of things its represents, is always limited and tightly
controlled in organizations. It allocated to different units represents cost to the organization,
whose financial objectives are likely to be profitability, return on investment and so on: in other
words, to maximize earning and minimize costs.
Limited financial resources therefore constrain managerial decision- making because:
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a) A limited budget can only be stretched so far, and the manager may not be able to obtain
or retain all the other resources-quality materials, extra labour, and new equipment and
so on-that he or she wants.
b) A manager may be tempted to spend up to the allocated budget, even though it is not
require, so not having the allocation reduced next time round.
Example
How GSM company is implemented a new strategy by resource of finance:
The GSM network company is financial forecasting on such as planning, financial
controls, and financial analyze, annual and multi-year financial and budget planning,
expense management, operating plan variance analysis, working capital (cash flow
analysis and management), capital project planning & analysis and financial and nonfinancial business performance metrics.
Ocean wide provides GSM coverage in deep waters.
The GSM plan organizing the school, and is the primary staff resource person for all
fiscal and budget of $20 million activities of the school such as 33 Senate Faculty, 34
Lecturers and Visiting Faculty, 60 Staff, 600 graduate students.
Time
The time is also a limited resource.
There are only so many working hours available. If these are not sufficient to accomplish
everything a manager will be constrained to:
i.
ii.
iii.
Find extra labour or machine capacity, to cover the excess workload in the time
available.
Eliminate, or simplify, tasks or cut corners in order to get high-priority work done with
the existing workforce.
Allow work to run late, and adjust the work plan for the knock-on effects.
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Information
Information is a limited resource for several reasons.
a) Time and money for gathering it may be limited.
b) There is a limit to how much a person can take in and use effectively.
c) Some information is simply not obtainable with any certainty-for example, how people
are going to react, or what is going to happen tomorrow.
d) Information is power, and individuals and units in organizations tend to hoard it if they
think it will give them extra influence or a competitive edge over others.
How GSM company is implemented a new strategy by information:
GSM covers the most part of countries and greatly improve the socioeconomic by
information, which are based sectors of the economy.
Information contributes to GSM make possible for formats to be retrieved, processed,
stored, and disseminated.
The informations will help to GSM in library services to users in the following ways as:
GSM technology's acceptance and growth among the Nigerian populace has great
potential for enhancing the services in libraries and information centers in Nigeria. Users
want an information system that will meet their needs with far less stress and energy.
Conclusion
According to the GSM new strategy; it is allocated the required resources such as plan, finance,
time and information. These resources are benefit able to this organization as provides its
special expertise through the experienced cellular phone market, expanding CDMA and
3G/UMTS network in various countries in Europe, Asia, Africa and South America, financial
forecasting, provide timely delivery services, providing services to library users; as result the
GSM Company implements new strategies in order to its goals & objectives.
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4.3
Propose targets and timescales for achievement of the
growth strategies in GSM to monitor a given strategy.
Gantt charts
As well as plotting time to be taken (and actually taken), Gantt charts can be used to estimate
the amounts of resources required for a project.
The Gantt charts also can analysis the every activities of GSM Company to implement new
strategy, GSM Company has decided for mobile phone manufacturing.
Activity
Time (Month)
(A)Planning
(B)Order for raw materials
C
(C)Manufacturing
D,E
(D)Market testing
F
(E)Advertising
G
(F)Distributing
(G)Providing customer services (feedback) -
3
5
2
2
2
3
2
BCDF
10
11
12
A
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Business Strategy
advertisement at same time and while distributing, doing providing customer services
(feedback) at same time.
Conclusion
According to the GSM mobile manufacturing company target and timescales; it must be
completed the works within 12 month, activities such as Planning - 3 month, Order for raw
materials 5 month, Manufacturing - 2, Market testing 2 month, Advertising 2 month,
Distributing 3 month and Providing customer services (feedback) 2 month.
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