Strategic Management

June 2023 Examination

1. You are a business person who has access to capital and want to build a global
advertising empire. Create a strategic plan to build your business; do you think that
acquisitions could be a strategic option? Justify your answer properly

Ans :

Introduction:

Constructing a successful advertising empire worldwide is a challenging endeavour that calls

for a well-thought-out strategic plan. Building a powerful brand image, cultivating a talented
team, and broadening the company's reach through acquisitions, collaborations, and
partnerships should be the primary focuses of the plan. This paper will establish a 15-point
strategy plan for building a worldwide advertising empire and examine whether or not
acquisitions could be a strategic alternative. Also, the study will provide some background
information on the global advertising industry.

Concepts and Applications:

Establishing a worldwide advertising empire requires a strategic plan that primarily

emphasizes developing a powerful brand identity, expanding one's customer base, and
maximizing profits. The following is a list of the essential components that should be
included in a strategic plan for constructing a worldwide advertising empire:

1. Establish the company's vision and mission statement. Establishing the company's vision
and mission statement is the first stage in the process. The mission statement should reflect
the organization's fundamental beliefs and principles, while the vision statement should
reflect the long-term goals that the company has set for itself.
2. Establish a solid reputation for your brand. Establishing a solid reputation for your brand is
vital to the process of developing a successful advertising empire. The brand image must
reflect the company's fundamental values, mission, and vision.

3. Have a workforce that is full of talent. Having a workforce that is full of talent is necessary
in order to establish a successful advertising empire. The organization should seek out gifted
people who agree with its mission and can contribute to its success in achieving its
objectives.

4. Establish a robust company culture. Establishing a robust corporate culture is one of the
essential steps in constructing a successful advertising empire. The organization's core beliefs
and guiding principles ought to be reflected in the culture.

5. Invest in technology. It is necessary to invest in technology if one wishes to construct a

prosperous advertising empire. To maintain its position as a market leader, the organization
must ensure that it is always on the cutting edge of technological and industry developments.

6. Widen the scope of the company's operations through mergers and acquisitions. The
corporation has to find possible acquisition targets and determine whether or not they are an
excellent strategic match. Mergers and acquisitions represent one of several viable strategic
options when it comes to the establishment of a worldwide advertising empire.

7. Work together with partners in the business. Working together with partners in the industry
is a crucial step in the process of developing a successful advertising empire. The business
has to locate potential partners and determine whether or not they are an excellent strategic
match.

8. Have a solid online presence. The organization needs an effective website, a solid presence
on social media, and an online advertising strategy. Establishing a solid online presence is
one of the essential steps in developing a successful advertising empire.

9. Grow on a global scale. It is necessary to grow on a global scale in order to develop a

global advertising empire. The business needs to determine potential markets and formulate a
plan for breaking into those areas.
10. Formulate a solid content strategy. The organization should work on producing high-
quality content that reflects its core principles and strikes a chord with its intended audience.
Formulating a solid content strategy is one of the essential steps in constructing a successful
advertising empire.

11. Create an effective sales strategy. Creating an effective sales strategy is one of the
essential steps in constructing a successful advertising empire. The organization needs to
determine its potential customers and devise a sales plan that aligns with its core values and
beliefs.

12. Maintain current awareness of the most recent developments in your industry.
Maintaining current awareness of the most recent developments in your industry is crucial to
establishing a prosperous advertising empire. Participating in industry-related conferences,
seminars, and workshops would benefit the company.

13. Establish reliable connections: Establishing reliable connections is vital to establishing a

prosperous advertising empire. The company must cultivate relationships with influential
industry members, customers, and other stakeholders.

14. Formulate a solid plan for your financial future. Formulating a solid plan for your
financial future is crucial to the process of developing a successful advertising empire. The
organization ought to have efficient financial management and invest in various prospects for
expansion.

15. Analyze and make necessary adjustments to the strategic plan. In order to construct a
prosperous advertising empire, it is crucial to evaluate and make necessary adjustments to the
strategic plan. The organization needs to keep track of its development and make
modifications as appropriate.

When constructing a worldwide advertising empire, acquisitions are a viable strategic

alternative. The ability to quickly expand their reach, acquire fresh talent and expertise, and
enter new markets is one of the many benefits that may be gained through acquisitions. A
company's portfolio can be diversified, and its dependence on a single market or product can
be reduced through acquisitions, which benefit the company.

On the other hand, acquisitions expose businesses to various possible hazards. Integrating
newly acquired businesses can be complex and challenging, leading to cultural conflicts and
other problems. Purchasing companies can be expensive. Also, the acquired company could
not be a good fit with the company's culture and values that made the acquisition, which
could result in a loss of personnel and knowledge.

Conclusion:

Constructing a successful advertising empire worldwide is a challenging endeavour that calls

for a well-thought-out strategic plan. Acquisitions are a potential strategic option for
establishing a global advertising empire; however, these deals must be thoroughly analyzed
before proceeding. The strategic plan's primary focus should be building a powerful brand
image, cultivating a competent workforce, increasing the company's reach through
collaborations and partnerships, and maintaining awareness of the most recent developments
in industry trends. In addition, the business should review its strategic plan and make any
necessary adjustments to guarantee that it is successful.

2. The Indian Super League is India’s leading soccer league but is struggling with
viewership? What could be the reasons for this lack of consumer interest? What
strategies would you recommend to the league management if you were its strategy
consultant?

Ans :

Introduction:

To promote soccer in India and foster a competitive football atmosphere there, the Indian
Super League (ISL) was established in 2013. The ISL is currently India's top soccer league.
However, it is experiencing viewing issues, which concerns the league's management. In this
essay, we will investigate the various causes for the lack of consumer interest in the ISL and
offer solutions that the league management may apply to boost the league's popularity and
viewership.

Applications and Concepts:

Reasons for the Lack of Consumer Interest:

1. Star Power Deficit: The absence of superstar players is one of the leading causes of ISL's
low consumer engagement. While the league has included some notable foreign players, it
has been challenging for the league to draw in a larger audience due to the absence of known
and famous individuals.

2. Playing Standards: Both fans and commentators have expressed worry about the ISL's
playing standards. The league's structure and regulations, which set rigorous salary ceilings
and a cap on the number of international players allowed, have impacted the level of play.
Fans may be switching to other leagues, which offer soccer of a higher caliber.

3. Lack of Media Coverage: The low viewership of the ISL is also a result of the league's lack
of media attention. The league's marketing initiatives have not been successful, and the
league's broadcasters have not been able to land a prime-time television spot.

4. Bad Match Day Experience: ISL fans have complained about the match day atmosphere.
The stadiums are not usually packed, and the level of facilities, like seats and restrooms,
needs to be improved. This has made it difficult for fans to enjoy the games, which has led to
a decline in attendance.

Ways to Raise Popularity for the League:

1. Attract Famous Foreign Players: The league management might sign famous overseas
players to draw spectators outside India. The athletes must be well-known and have a solid
reputation in their home nations. This will boost the league's appeal and the football standard.
2. Promote the League: The administration should spend money on league promotion. This
can be done by advertising the league on television and social media. The league should
market itself effectively and schedule its games at opportune times to draw in more viewers.

3. Boost Football Quality: The league administration needs to concentrate on raising the
game's standard. This can be accomplished by investing in the training and development of
Indian athletes. Also, the league needs to hire qualified coaches who can raise the football
standard.

4. Improve Consistency: The league administration should ensure the league is played
regularly and annually. The league should be played each year simultaneously, and the
matches should be scheduled at regular intervals. This will make it easier for people to follow
the league's schedule and increase spectators.

5. Increase Football Quality: The ISL's management should concentrate on raising the level
of football played there. This can be done by selecting better players and spending money on
academies and training centers.

6. Raise the Salary Cap: To draw star players from around the world, the salary cap for the
ISL needs to be raised. This will raise the level of football play and increase fan interest.

7. Promote Star Players: The league administration has to spotlight its top athletes and build a
brand around them. This will aid in increasing attendance and interest in the league.

8. Reliable Scheduling: Games should be scheduled so that they occur on the same day of the
week and at regular intervals. This will make it easier for fans to schedule their time and
follow the league more frequently.

9. Efficient Marketing: The league should spend money on efficient marketing techniques to
generate interest in the ISL. Promoting the league on social media, television, and other
platforms can help.

10. Boost Fan Engagement: The league should prioritize better fan engagement. Online
forums, fan groups, and interactive events can all be used to accomplish this.
11. Broadcasting Rights: To boost its awareness among the general public, the ISL should
ensure its games are broadcast on well-known TV networks and streaming services.

12. Expand the Number of Teams: The league should add more teams to provide young
players with more opportunities and raise fan engagement.

13. Attract More Foreign Players: To raise the level of football and increase fan engagement,
the league should entice more international players.

14. Invest in Youth Development: The league should fund youth development initiatives to
foster young talent and build a pipeline of talented players.

15. Implement a Promotion-Relegation System: To increase competition and draw in players

and spectators, the league should consider implementing a Promotion-Relegation System.

16. Add Playoff Matches: The league can establish playoff matches to increase the league's
excitement and fan engagement.

Conclusion:

In conclusion, there are many reasons why the Indian Super League is having trouble
attracting spectators. The league's low popularity has been attributed to several factors,
including a lack of significant stars, poor play quality, insufficient media attention, and a bad
fan experience. Nonetheless, the league might employ tactics including boosting star power,
raising play quality, boosting media attention, and improving the fan experience to increase
league viewership. The league's management, broadcasters, and other stakeholders must
collaborate to make these plans successful.
3. Inox and PVR recently merged together to create India’s largest theatre groups, the
combined entity now has 1500 theatres across the country. This is 20% of the current
market size and nearly 50% of the revenue.

a. If you were an owner of a single screen theatre in a city where Inox PVR have
multiple screens what strategies would you adopt to compete.

Ans :

Introduction:

The primary theatre chains in India, Inox and PVR have combined to form a giant in the film
exhibition sector. It is positioned to rule the market with 1500 screens and an almost 50%
market share. Nevertheless, the merger also gives smaller, single-screen theatre owners a
chance to develop plans to take on the new giant. This essay will look at single-screen theatre
owners' tactics to take on Inox PVR in a market where competition has considerably
increased.

Applications and Concepts:

Single-screen theatre operators must separate themselves from their rivals in a sector where a
titan like Inox PVR dominates. They have numerous options for doing this, including:

Offering a unique movie-going experience:

Owners of single-screen theatres can set themselves apart by providing a distinctive movie-
going experience. This can entail offering comforts like reclining seats, a more robust music
system, and an upscale food and drink selection. Owners of single-screen theatres can draw
moviegoers willing to pay a premium price for the experience by providing a premium
experience.

Building a solid community presence:

Owners of single-screen theatres can set themselves apart by cultivating a significant local
presence. They can engage with the local community by sponsoring events, offering
discounts to residents, and hosting special screenings for schools and community groups. By
doing this, businesses can build a base of devoted patrons to pick them over larger chains.
And.

Emphasis on niche cinema

Focusing on specialty films that larger chains might not be interested in exhibiting is one-way
single-screen theatre owners can set themselves apart. Documentaries, foreign films, and
independent movies may all fall under this category. By doing this, they may draw a
passionate fan base for these kinds of movies.

Accept technology:

Owners of single-screen theatres can set themselves apart by utilizing technology. To make it
simpler for people to purchase tickets, they can invest in digital projection and sound
systems, offer online ticket sales, and offer mobile apps. They can provide a more
streamlined and convenient movie-going experience by doing this.

Conclusion:

In conclusion, the union of Inox and PVR has produced a titan in the movie theatre business,
which is problematic for more minor, single-screen theatre operators. However, single-screen
theatre owners can set themselves apart from their rivals and successfully compete in a
market dominated by Inox PVR by implementing strategies like providing a distinctive
movie-going experience, developing a strong community presence, concentrating on niche
films, and embracing technology. These smaller theatre operators must understand that while
they cannot compete on the same level as Inox PVR, they can carve out a place for
themselves by offering moviegoers a different, distinctive experience.
b. Analyze the state of India’s movie theatre industry and what the industry needs to do
to evolve going forward in this highly competitive technology driven media and
entertainment industry.

Ans :

Introduction:
India, the world's largest film industry, produces more than 2000 films annually. The Indian
film industry is predicted to develop at a CAGR of 7.5% between 2021-26. However, the
development of new media platforms has increased competition in the movie theatre sector.
The COVID-19 epidemic in 2020 made the problems the Indian movie theatre sector was
already having worse. The industry is currently at a turning point where to be relevant, and it
must change and adapt to the shifting market conditions. This essay examines the current
situation of the Indian film industry and identifies the tactics it must use to advance moving
forward.

Applications and Concepts:

The state of the Indian film industry:

PVR and INOX, holding more than 50% of the market share, dominate the Indian movie
theatre sector. The market is fragmented, and many single-screen theatres are having
difficulty surviving because there needs to be more investment in facilities, technology, and
good content. Many difficulties have been faced by the Indian motion picture theatre
industry, including:

People are consuming more content online due to the convenience of streaming services. This
trend has impacted the number of people entering theatres. The threat of OTT platforms
Netflix, Amazon Prime Video, and Hotstar are just a few over-the-top (OTT) platforms that
have upended the conventional movie theatre industry.

Lack of Investment: Poor audience experiences have been caused by a lack of technology
and facility investment in the Indian movie theatre sector. Most single-screen theatres must
be updated and offer contemporary comforts like reclining seats, 3D displays, and surround
sound.
Piracy: Within hours of a film's release, illicit copies can be found online, making it a severe
problem for the Indian film business. This significantly affects how much money theatres and
production companies make.

Evolution of the Movie Theatre Industry:

In order to adapt to the changing market environment and maintain its competitiveness, the
movie theatre sector must change and adopt new strategies. The following are some of the
tactics the sector needs to implement:

Investment in Technology: To improve the viewing experience for patrons, the movie
theatre sector must invest in technology. Upgraded theatre amenities like reclining seats,
digital screens, and immersive sound systems are needed. To improve the viewing
experience, augmented reality (AR) and virtual reality (VR) can be used.

Emphasis on Content: The motion picture business needs to put more effort into producing
high-quality content not offered by streaming services. To guarantee the availability of high-
quality content in theatres, the industry must work with production companies.

Providing live events, concerts, and sporting events will help the movie theatre sector
broaden its services. This would increase traffic and draw in a larger audience.

Strategic alliances and mergers can aid in industry consolidation and developing economies
of scale. An excellent illustration of this is the combination of PVR and INOX.

Regional Expansion: With their untapped potential, Tier II and Tier III cities are where the
movie theatre sector needs to concentrate its efforts. The sector's growth in these places might
boost overall revenue and offer prospects for it to expand.

Conclusion:

The Indian movie theatre sector is at a turning point where it must change and implement
new tactics to stay relevant. The sector has to concentrate on producing high-quality content
and using technology to improve the audience experience. The industry can grow and attain
economies of scale through strategic alliances, mergers, and geographical expansion. The
movie theatre sector must change to keep up with