Subject: STRATEGIC MANAGEMENT

Lecturer: Mr. Gunaraj Neupane

Kamalpokhari, Kathmandu, Nepal

www.hcm.edu.np

Submitted By: Submitted To:

Dikchhya Tamrakar Himalayan College of Management
MBA 4th Sem. Kamalpokhari, Kathmandu

DOS: March 15, 2021

INSTRUCTIONS:
_________________________________________________________________________

There are THREE (3) questions in this section. Answer ALL questions in the Answer
Booklet. (50 MARKS)

QUESTION 1(10 MARKS)

Sam is a manager for a shoe company, and he has about eight people who work for him. Sam is a
big fan of using idea generation with his team whenever they need to tackle a new challenge. The
team has a new project this month. They have to come up with a brand new way of marketing the
newest line of shoes to a previously unaddressed target audience. Sam puts his group to work
into pairs.
Each pair tackles the task by first thinking of many ideas, far more than they would ever use. The
pair will eventually rejoin the team, and the team will select the best idea or ideas before
assessing the ideas' worth on a focus group of potential customers at a later date. After feedback
from the focus group, the team will adjust their approach and build on the idea using the focus
group feedback before putting their plan through real testing or trials. Finally, when the team is
confident in their idea, the idea will be passed on for actual business implementation.
Answer the following questions.
a. Why idea generation is important for Shoe Company? (5 Marks)
Answer:
The systematic development of innovations — the production of ideas — is the first step in
creating new products. In certain cases, an organization must produce many ideas before settling
on a few successful ones. Internal outlets, consumers, rivals, dealers, manufacturers, and others
are the key supporters of innovative product concepts.
Likewise, for the Shoe Company also, they should get the ideas from different sources for the
below reasons;
● For creating an innovative and new product
● For Product improvement and customization
● For improving the current way of doing business
● To change the preferences of the customer
● To create brand value
● To understand competitors and their values
● To attract various customers
● To maximize market share
b. What are the various techniques of idea generation? (5 Marks)

Answer:
Idea generation is a starting process for anything by analyzing the past or the environment and
making the future strategy. The techniques of idea generation are as follows;
1. Brainstorming - This approach involves coming up with many alternative solutions to a
problem (idea).
2. Focus Group – A focus group is a type of observational polling in which a group of people is
polled on their feelings about a product, service, philosophy, advertising, idea, or packaging.
3. Problem Inventory Analysis – Working on problems allows you to develop fresh ideas and
solutions.
4. The Delphi Technique – In this technique, experts from various fields are asked to give their
opinions on an issue.
5. Checklist Process – When a problem is found, this method aids in the generation of ideas by
operating in a structured manner with a team.
6. Forced Partnership – In this situation, a commodity is compared and contrasted with
something entirely different to produce a range of ideas.
7. Attribute Analysis – This is the method of breaking down an issue, a concept, or a thing into
attributes or parts and then considering their characteristics.
8. Mind Map – This is a strategy for collecting concepts and bringing them to life in a visual
format. It turns a list of tedious details into a highly curated, colorful, and unforgettable one
when it connects with other new ideas.
9. Library and Internet Research – Trade papers, market-specific magazines, and industry
studies will all help you come up with new business ideas.
10. Survey Method – Entrepreneurs who want to launch a new product or an existing product
into a further market use this method.
QUESTION 2 (20 MARKS)
Entrepreneurship is the ability and readiness to develop, organize and run a business
enterprise, along with any of its uncertainties in order to make profit. With relating to
this statement prepare a power point presentation mentioning the major key elements
that one must consider to establish and run an enterprise.
Answer:

The following are the most important factors to consider when starting and running a business:

A great idea: No business will thrive unless it has a great idea. The only thing that can help you
grow your company is a brilliant and realistic idea. Furthermore, since there are many companies
in the industry, you must have a unique concept.

Funding and Budgeting: The financing of the business is the next critical thing to remember.
You must correctly identify the sources from which you can obtain funding for your company.
Furthermore, making a strategy to maintain a company's budget adequately is preferable.

Competitive analysis: We need to know what the rivals are up to. With this information, you
can make sound business decisions. It will also assist you in formulating a much more successful
business plan.

Business plan- No organization will expand to its maximum potential without a well-thought-
out business plan. Identifying whether your project is viable and offering guidance will help you
design a business plan. A business plan will detail the next steps you will take.

Legal documentation: The next item on the agenda is the completion of legal records. For the
selling of such goods and services, there are certain provisions for preparing legal documents.
Check to see if any of the company's legal papers have been completed.

A Positive Attitude: One of the most important aspects that can help you resolve all obstacles
and problems. You will face numerous risks and challenges during this process, and only your
positive attitude will save you. To start your own company, you must be willing to put in long
hours.

Recognize when you need assistance: Building a business does not happen overnight; it
requires time and effort. This method, however, will necessitate the help of some experts.
Ascertain that you have a consultant on hand who will provide you with the best guidance at the
appropriate time.
QUESTION 3 (20 MARKS)

The entrepreneur is a change agent that acts as an industrialist and undertakes the risk
associated with forming the business for commercial use. An entrepreneur has an unusual
foresight to identify the potential demand for the goods and services relating with this
statement explain the various entrepreneurial process.

Answer:
"Entrepreneurs don't do things differently; they just do them differently." This argument clearly
shows that entrepreneurs are change agents who take chances and do things differently. Even
though it is never known whether a company can succeed or not, entrepreneurs never stop
working. They can see a company thriving in the future, and their commitment and confidence in
it will help them get there. They figure out what people want in terms of goods and services.
Entrepreneurs may also generate demand for their products and services and then supply them in
the market.

The entrepreneurship process can be defined as a set of procedures and methodologies that
entrepreneurs use to start a new business. To create a business, each step of entrepreneurship has
unique definitions and functions that must be developed and defined.

Generally, the entrepreneurial process is categorized into four parts, and they are as follows;
Idea Generation: The entrepreneur starts to wonder why a product or service isn't available,
why some items haven't been changed, how sales are produced to cover costs and many more.
There may be thousands of questions and difficulty finding better solutions to satisfy the
market's needs. In previous years, there were defective goods and services. A company's position
used to be a little simpler, but now we need to conduct research and conduct a business study to
assess the probability of success. It's likely that many people live at this stage in the business
process because developing ideas is much simpler.

Making Decisions and Planning a Company: The beginning of a project is crucial in the
entrepreneurial phase. Being active and driven to continue are the most important factors for an
entrepreneur to start his business. Asking where and what services are needed is important so
that the entrepreneur can prepare at least one path forward. The development of a corporate plan
is merely a guideline.

Project Initiation: The project is launched when the entrepreneur chooses to search out and
procure money. Funding is difficult and can be one of the most significant obstacles to
establishing a company. It is a stress reliever for the entrepreneur to begin spending capital and
running his business because he can see his company's first steps.

Management and Control: Within the first few months of service, the company will check if
revenues have increased, decreased, or remained stable. Before thinking about a fancy office, the
entrepreneur should try to sustain sales growth. Managing a company isn't easy, but
entrepreneurs' experience will inevitably help with resource management over time. You might
argue that the business process ends here, but I don't believe he is a complete businessman at this
stage.