ASSIGNMENT

Module Code: 19MBA509B

Module Name: STRATEGIC MANAGEMENT

Programme: MBA

Department: MANAGEMENT

Faculty: FACULTY OF MANAGEMENT AND COMMERCE

Name of the Student: SHREYAS H GOWDA

Reg. No: 20MCMS101142

Batch: 2020

Module Leader: DR. G DEVAKUMAR, MR. P RAJEEV PRASAD, PROF.

V. NAGENDRA

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 Declaration Sheet
Student Name SHREYAS H GOWDA
Reg. No 20MCMS101142
Course MBA Batch Full-Time / Part-Time 201 .

Module Code 19MBA502A

Module Title STRATEGIC MANAGEMENT

Module Date 21-08-2021 to

Module Leader DR. G DEVAKUMAR, MR. P RAJEEV PRASAD, PROF. V. NAGENDRA

Declaration

The assignment submitted herewith is a result of my own investigations and that I have
conformed to the guidelines against plagiarism as laid out in the Student Handbook. All
sections of the text and results, which have been obtained from other sources, are fully
referenced. I understand that cheating and plagiarism constitute a breach of University
regulations and will be dealt with accordingly.

Signature of the student SHREYAS H GOWDA Date

Submission date stamp

(by Examination & Assessment
Section)

Signature of the Module Leader and date Signature of Reviewer and date

Faculty of Management & Commerce

M.S Ramaiah University of Applied Sciences
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 Department Management Studies
Course MBA in HRM, MMT, OPM, FMT, BA, BFS, HM, and PBM
Batch Full -Time 2020 Course 21st June, 2021
Start Date
Course Code 19MBA509B Assignment Report Submission Date: 14th August 2021
Course Title Strategic Management
Course Leader(s) Dr. G Devakumar, Mr. P Rajeev Prasad and Prof. V. Nagendra

Assessment (CE + SEE = 100 Marks)

Reg. No. 20MCMS101142 Name of the Student SHREYAS H GOWDA

Assignment 1 – SC3 – Group

Assignment

PO

RBL
CO

Evaluators

Moderator
Max Marks

Marks

Marks
Marking
Scheme

GROUP ASSIGNMENT - Form a group of 5

students
(maximum) – from within the class sectionto which
you belong - and assume a fictitious (non-existing)
company
and submit a report on the following:
Profile of the company – including Name of 1 4 2
the
1 05
proposed company, nature of business, portfolio
of
products and / or services, and any other important
relevant details about the company
Develop Vision, Mission, Objectives and Core Values 2 6 6
2 10
for
the proposed company
Develop a conceptual framework using Porter’s five 3 8 4
3 forces principles and submit your suggestions for 10
business sustainability
Max Marks 25

Signature of First Examiner Signature of Moderator

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Please note:

1. Documental evidence for all the components/parts of the assessment such as the
reports, photographs, laboratory exam / tool tests are required to be attached to
the assignment report in a proper order.

Assignment

Instructions to students:

1. The assignment consists of 3 questions:

2. Maximum marks is 25.
3. The assignment has to be neatly power point processed as per the prescribed
format.
4. The maximum number of pages should be restricted to 10 pages.
5. The soft copy of the assignment must be submitted to the RUAS portal only
6. Submission Date: 14th August-2021 before office closing hours, at the exam
centre
7. Submission after the due date is not permitted.
8. IMPORTANT: It is essential that all the sources used in preparation of the

assignment must be Suitably referenced in the text.

9. Marks will be awarded only to the sections and subsections clearly indicated as per
the
problem statement/exercise/question

Introduction to the course:

This course deals with the essentials of strategic management. Students are taught
concepts of strategy, importance of strategy, formal planning in strategic
management. Students are also taught different types of environmental analysis,
Strategic Implementation, Evaluation and Control for making business decision.

1) As per the given task the company which I have selected is

LAMBORGHINI
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(AUTOMOBILI LAMBORGHINI S.P.A)

AUTOMOBILI Lamborghini S.P.A is commonly Referred as

Lamborghini is an Italian brand and manufacturer of luxury SUV’S
and Sports car. It was founded in 1963with the objective of
producing a refined grand touring car to compete with offerings
from established marques such as Ferrari. The company's first
models, such as the 350 GT, were released in the mid-1960s. This
company was bought by Audi in 1998 and presently its own under
Volkswagen group. Volkswagen Group is the world’s second largest
automotive manufacturer. In addition to their eponymous passenger
car brand, Volkswagen Group is responsible for eleven other major
car, motorcycle, and commercial vehicle brands, including Audi,
Seat, Skoda, Ducati, Scania, Lamborghini & Ferrari.

What is PEST Analysis?

PEST Analysis (political, economic, social and technological) is a
management method whereby an organization can assess major
external factors that influence its operation in order to become
more competitive in the market. As described by the acronym, those
four areas are central to this model.

PEST Analysis of Lamborghini (Volkswagen group)

Political factor:
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Both the United States and the United Kingdom are significant
business sectors for Volkswagen Group's numerous vehicles.
Tragically, there are not kidding questions about the fate of
exchange guidelines between Germany — the organization's
headquarters — and those nations. All through 2018 and 2019, the
United States has over and over shown its eagerness to put duties
on merchandise imported from the European Union. As of recently,
the auto business has not been dependent upon these duties, yet
there's an undeniable danger that may change. With respect to the
United Kingdom, its much-discussed choice to leave the European
Union might bring about extra charges being put on the import of
Volkswagen Group vehicles.
ECONOMIC FACTOR-
Developing shopper spending on the in addition to side, buyer
spending is developing across all edges of the globe. This implies that
customers are more willing than any other time to buy buyer
products like gadgets and, to a degree, autos. Expanded purchaser
spending is particularly critical for auto brands in more unfortunate
business sectors, where shoppers might have recently bought no
vehicles at all. In more welloff business sectors, expanding purchaser
spending is as yet useful as it brings about more costly model
decisions and the acquisition of different additional items.
SOCIO CULTURAL FACTOR-
Volkswagen Group's different brands are somewhat very much seen.
Its most regarded brands incorporate Lamborghini, Audi, Porsche,
Bugatti, and — to a degree — Volkswagen itself. In any case, a
portion of Volkswagen's brands are less interesting to purchasers,
like Seat or Skoda. Regardless, a considerable lot of Volkswagen's
brands (counting a combination of both costly and reasonable ones)
battle with acknowledgment among sumptuous, inventive
contenders like BMW or Tesla. This is particularly obvious among a
more youthful crowd.
Shift away from driving.
While consumer spending is developing, buyers' craving to drive
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isn't. For reasons both monetary and ecological, numerous people
are deciding to surrender vehicle possession and travel with bikes,
bikes, transports, prepares, and ride-sharing applications like Uber
or Lyft. This could introduce a significant decline in deals both for
Volkswagen Group and the business overall. By and by, this
Sociocultural shift appears to be generally unmistakable among
more youthful consumer.
TECHNOLOGICAL FACTOR-
Self-driving vehicles
What with the huge advancement made by Tesla as of late, auto
makers are scrambling to foster their own self-driving vehicles.
According to a mechanical viewpoint, there are both equipment and
programming difficulties engaged with creating independent
vehicles. A considerable lot of the equipment limitations, including
high quality cameras and precise sensors, have effectively been
survived. Fortunately, Volkswagen Group's solid financial standings
make the essential innovative work a lesser issue than for recently
settled auto makers.
2)BCG Matrix INTRODUCTION-

 Stars (high share and high growth):

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Star products all have quick development and prevailing piece of the
pie. This implies that star products can be viewed as market-driving
items. These items will require a great deal of venture to hold their
situation, to help further development just as to keep up with its
lead over contending items. This being said, star products will
likewise be producing a ton of income because of the strength they
have in the market.

 Cash Cows (high share, low growth):

Cash cows don't need the same level of support as before. This is
because of less aggressive pressing factors with a low development
market and they generally enjoy in a predominant position that has
been created from economies of scale. Cash cows are as yet
producing a huge degree of pay yet not costing the association much
to keep up with. These items can be used to subsidize Star products.

 Dogs (low share, low growth):

Products classified as dogs consistently have a weak portion of
the overall industry in a low-development market. These products
are conceivable making a misfortune or an exceptionally low
benefit, best case scenario. These items can be a major channel
on administration time and assets. The question for managers is
whether the investment presently being spent on keeping these
items alive could be spent on making something that would be
more productive. The response to this inquiry is generally yes.

 Question Markets (low share, high growth):

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 Likewise now and then referred to as Problem Children, these
products end up being precarious ones for item directors.
These products are in a high development showcase however
don't appear to have a high portion of the market. This could
be the justification this like an extremely new item to the
market. On the off chance that this isn't the situation, a few
inquiries should be posed. What is the association fouling up?
What are contenders doing right? It may be the case that these
items simply need greater venture behind them to become
Stars.

BCG MATRIX OF LAMBORGHINI:

Lamborghini has the alternative to make market picture as a
vehicle creator that offers the customers with vehicles that
bring them comfort, close by a sensation of lavishness. Moving
past the production of automobiles, the association's
associations have wandered into various regions like bicycles.
In money related year 2016, LAMBORGHINI Group has
recorded salaries of $864 million, suggesting strong financial
execution of the association (LAMBORGHINI Group, 2016).

The utilization of BCG Matrix for LAMBORGHINI Groups would

help with recognizing the useful and dangerous undertakings
being directed by the firm. The BCG network is clarified is
according to the accompanying:

 Stars:

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 There are numerous items being overseen by Lamborghini
which can be recognized as Stars. For example, vehicles
remembered for Lamborghini Huracan, Lamborghini Urus for
example, Sports and super utility vehicle are a portion of the
vehicles that have been performing admirably.

 Urus is explicitly a famous vehicle among the shoppers in

various pieces of the world. As indicated by Lamborghini Group
(2019), there has been a huge expansion in deals of its Super
utility vehicle image in the course of recent years, alluding to
the high purchaser interest.

 Lamborghini bigger than normal is another vehicle that can be

put in this quadrant because of its monetary presentation and
future development possibilities.

 The organization has extended the product offering, adding

new plans of the Lamborghini, reinforcing the presentation of
its star item.

 Question marks:
 An affiliation needs to take apart the accomplishment and
frustration probability of these things to pick whether further
hypothesis is presumably going to fulfill the key and money
related objectives of the firm.

 The question marks for Lamborghini is its SUV series

which has been a useful undertaking, at any rate it's pay age

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 potential has declined, achieving loss of its part of the general
business in the luxury vehicle area.

 The SUV specialty unit may have the alternative to chip

away at its financial presentation in the coming months. The
interest for SUV may grow, helping the association with
additional fostering its slice of the pie.

 The business might potentially also create, suggesting at

the future progression of SUV brand into a principle
circumstance in the overall vehicle industry.

CASH COWS-

 They keep on offering monetary help to the organization,

getting high productivity and giving food to the organization's
tasks, without requiring monstrous speculations to keep up
with the benefit.
 These qualities make the gold mines a reasonable choice for
producing pay to back other specialty units. Lamborghini has a
few items which are high moneymaking specialty units,
consequently bringing in the situation with money cows for the
organization.
 One of the principle instances of gold mine items incorporate
lamborghini, which is an auxiliary of volkwagon. This fragment
has been an excellent wellspring of monetary profit, driving the
organization towards development throughout the long term.

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Dogs:
 This class incorporates that load of specialty units or things
that don't yield monetary profit for the organization. All things
considered, these things show lackluster showing as far as
deals, incomes and future possibilities.

 Another component which makes these items a plausible

alternative for divestment is the low ROI as the organization
considers these to be as money traps. Now and again an
organization keeps on putting resources into these
organizations, while in different cases the administration
chooses to break down the specialty unit or deal it.

 The sesto elemento and gt 350 vehicles have been

distinguished as canines as these vehicles have not had the
option to acquire comparable measure of deals as created by
different brands being delivered by the organization.

 The exhibition of these vehicles was not up to the presentation

standard that other lamborghini vehicles have set up, making
the sesto elemento and gt 350 acquire negative criticism from
the clients.

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 3)G.E MATRIX-
GE multifactoral examination is a method utilized in brand
advertising and item the board to assist an organization with
choosing what items to add to its portfolio and which openings
in the market they should keep on putting resources into. It is
adroitly like BCG examination, yet fairly more confounded. Like
in BCG investigation, a two-dimensional portfolio network is
made. Nonetheless, with the GE model the measurements are
multi factorial. One measurement includes nine industry allure
gauges; the other contains twelve inward business strength
measures. The GE matrix helps an essential specialty unit
assess its general strength.

DEVELOPMENT OF G.E MATRIX-

The GE matrix is created in a 3x3 structure with Market
Attractiveness plotted on the Y-axis and business strength on
the X-axis, both being assessed on a high, medium, or low
score. Five phases ought to be considered to characterize the
lattice;
The extent of things conveyed by the SBU (Strategic Business
Unit) ought to be recorded
 Factors which make the particular market charming ought to
be perceived.
 Evaluating where the SBU stays in this market.
 Cycles through which assessments about business strength and
market appeal can be made.
 Sorting out which characterization a SBU lies in; high, medium,
or low.
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  Market attractiveness / appeal-
The appeal of a market is displayed by how beneficial it is for
an association to enter and fight inside this market. It relies
upon various factors; the size of the market and the rate at
which it is creating, the possibility of advantage, the amount of
competitors inside the business and their weakness.

 Business/competitive strength-
This chooses whether an association is sufficiently talented to
fight in the given business areas. It might be directed by factors
inside the real association like its assets and assets, the offer it
hangs keeping watch and the headway of this offer, the
circumstance in the market of its picture and the devotion of
customers to this brand, its creativity in devising in excess of
anyone's imagination things and in dealing with the fluctuating
conditions of the market, similarly as recollecting
natural/government concerns like energy utilization, garbage
removal etc.

 Estimating market attractiveness and business strength-

At the point when the factors that choose the two are
recognized and assessed, each factor is then given a particular
significance and a calculation is made as follows; factor 1 rating
x factor 1 size + factor 2 rating x factor 2 extent + ... factor n
rating x factor n magnitude.

 Plotting –
SBU's in the cross section can be tended to as a circle; the
range shows the size of the market, the SBU's property in the
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 market are analyzed through a pie chart inside the circle and a
bolt outside the circle shows the excess of the SBU expected
later on. In the image associated for example, a SBU holds 45%
of the bits of the general business'. The bolt is outwards in like
manner showing that the SBU is depended upon to become
more grounded and subsequently its tip exhibits the future
circumstance of the SBU.

 Investigation stratergies-

 Grow

SBUs that are requested into this arrangement attract

distinctive association's endeavor as they are depended upon
to yield critical yields later on. These endeavors should be
separated into characterizations like imaginative work,
obtainment of other Sbu's, wide notification and broadening
creation limit.

 Selectivity

SBUs that hold a huge load of unclearness fall into this class.
They are typically conceivably placed assets into in the event
that there is any chance of capacities in regulatory and
corporate limits and if associations have any money left social
affairs in 'create' forte units.

 harvest

SBU' performing insufficiently in revolting ventures are

requested into this class. Associations conceivably put assets
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 into them if they produce adequate cash to move toward the
endeavor aggregate, else, they may be sold.

References:-
1) https://en.wikipedia.org/wiki/GE_multifactoral_analysis
2) https://hannahaiyamahvolkswagen.weebly.com/bcg-
matrix.html
3) https://hannahaiyamahvolkswagen.weebly.com/bcg-
matrix.html

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