SHIHAB KAMAL MUNSHI MBA FOR BBA ID#2233061018

Letter of Transmittal

17th May, 2024

Rashed Mahmud Shakil

Assistant Professor
School of Business
Uttara University.

Subject: Submission of Assignment on Subjective questions of Strategic Management.

Honorable Professor,

With great pleasure, I am presenting the assignment on subjective questions Of Strategic

Management for academic purpose. With the help of your guidelines and provided subjective
questions related to our curriculum i have completed this to satisfy the requirements of the
class assignment of Strategic Management.

I have tried to work hard to ensure the success of this assignment. My working Schedule for
the organization and writing this assignment has been both enjoyable and educational. But
clearly, this has been a fantastic source of knowledge for me to carry out similar kinds of
research in the future.

For all of your helpful advice and recommendations during the assignment's preparation, i
would like to sincerely thank you for gaining a clear understanding of the matter, it would be
my greatest pleasure if you found this submission to be helpful and enlightening. If you have
any questions about this report or any other pertinent topics, please allow me to provide them.
I would be pleased to offer any additional explanation needed.

Thanks & Regard's

Name
SHIHAB KAMAL MUNSHI
ID#
2233061018

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Table of Contents

SL. Questions & Answers Page

What is globalization? Explain the various advantages and disadvantages of

01 globalization?
3

02 Discuss various steps of the strategic management process. 4

03 Explain SWOT analysis with various examples. 5-6

04 Explain PESTLE Analysis with various examples. 7

05 What is divestment? Explain various reasons for divestment. 8

06 Explain various types of international / global expansion. 9-10

07 Bibliography 11

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1. What is globalization? Explain the various advantages and disadvantages of

globalization?

Answer: Globalization refers to the increasing interconnectedness of economies and cultures around
the world. It's driven by a combination of factors like international trade, investment, technology, and
travel. Here's a breakdown of the pros and cons of globalization:

Advantages:

 Economic Growth: Globalization fosters economic growth by allowing countries to

specialize in what they do best and trade with each other. This leads to increased efficiency
and productivity, ultimately raising everyone's standard of living.
 Greater Choice and Lower Prices: Consumers benefit from a wider variety of goods and
services at lower prices due to increased competition between businesses around the world.
 Spread of Knowledge and Technology: Globalization facilitates the exchange of ideas and
innovations, accelerating technological advancements and progress in various fields.
 Improved International Relations: Increased economic interdependence between countries
can encourage cooperation and foster better diplomatic relations.

Disadvantages:

 Job Losses: Globalization can lead to job losses in developed countries as companies move
operations to countries with lower labour costs.
 Income Inequality: The benefits of globalization can be unevenly distributed, widening the
gap between rich and poor both within and between countries.
 Environmental Concerns: Increased trade and production can lead to environmental
degradation due to pollution and resource depletion.
 Cultural Homogeneity: The dominance of Western culture can threaten the preservation of
local customs and traditions.
 Corporate Power: Globalization can empower multinational corporations, potentially giving
them undue influence over governments and economies.

Overall, globalization is a complex phenomenon with both positive and negative consequences. It's
important to be aware of these issues to ensure that globalization works for everyone.

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2. Discuss various steps of the strategic management process.

Answer: The strategic management process is the roadmap for an organization's long-term success.
It's a continuous cycle that involves setting goals, analyzing the situation, crafting a strategy, putting it
into action, and monitoring progress. Here's a breakdown of the key steps:

i. Goal Setting:

 This is where you define the organization's vision, mission, and core values. The vision is
your big-picture aspiration, the mission outlines your purpose, and the values guide your
decision-making. Setting clear goals helps everyone in the organization understand what
you're working towards.

ii. Analysis:

 Here, you gather information to understand your internal and external environment. This
involves conducting analyses like:
o SWOT Analysis: This examines your Strengths, Weaknesses, Opportunities, and
Threats. It helps you identify your internal capabilities and limitations, as well as
potential external factors that could impact your success.
o PESTEL Analysis: This considers Political, Economic, Social, Technological,
Environmental, and Legal factors that can influence your organization.

iii. Strategy Formulation:

 Based on the analysis, you develop a strategic plan. This involves:

o Setting SMART Goals: Specific, Measurable, Achievable, Relevant, and Time-
bound goals provide a clear direction for your strategy.
o Creating Competitive Advantages: Identify what makes your organization unique
and how you can leverage that to outperform competitors.
o Choosing Strategies: Depending on your goals, you might choose strategies like cost
leadership, differentiation, or focus.

iv. Strategy Implementation:

 Putting your plan into action is crucial. This involves:

o Resource Allocation: Allocate necessary resources like budget, personnel, and
technology to execute the strategy.
o Developing Action Plans: Break down the strategy into actionable steps with
timelines and responsibilities.
o Communication and Alignment: Ensure everyone in the organization understands
the strategy and their role in achieving it.

v. Evaluation and Control:

 Regularly monitor and assess your progress. This involves:

o Performance Measurement: Track key metrics to see how well your strategy is
performing.
o Making Adjustments: Be prepared to adapt your strategy as needed based on
internal or external changes.

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Remember, strategic management is an on-going process. The steps are interconnected, and you
might revisit them as circumstances evolve.

3. Explain SWOT analysis with various examples.

Answer. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It's a framework used
to analyse an organization's internal capabilities and external environment. By understanding these
factors, businesses can develop effective strategies to achieve their goals.
Here's a breakdown of each element with examples:

1) Strengths: These are internal attributes that give your organization an advantage over
competitors. Strengths can be:

 Tangible: Resources like a strong brand reputation, loyal customer base, efficient supply
chain, or innovative products.
 Intangible: Skilled workforce, strong company culture, unique expertise, or established
distribution network.

Example: A bakery might identify its strengths as its highly skilled bakers who create unique and
delicious pastries (intangible) and its established network of local cafes that carry their products
(tangible).

2) Weaknesses: These are internal limitations that hinder your organization's performance.
Weaknesses can be:

 Limited Resources: Lack of funding, outdate technology, insufficient manpower, or

dependence on a single supplier.
 Internal Processes: Inefficient production methods, poor communication, or low employee
morale.

Example: The same bakery might recognize a weakness as their limited marketing budget,
making it difficult to compete with larger chains (resource) or a lack of online presence to reach a
wider audience (internal process).

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3) Opportunities: These are external factors that present favourable conditions for your
organization's growth. Opportunities can be:

 Market Trends: Growing demand for your product or service, emerging technologies that
can improve your operations, or a gap in the market that your business can fill.
 Economic Conditions: Favourable economic climate, new government regulations creating
an advantage, or the weakening of a competitor.

Example: The bakery might identify an opportunity in the growing trend of organic and locally-
sourced ingredients (market trend) or the rising popularity of online food delivery services
(economic condition).

4) Threats: These are external factors that could potentially harm your organization's performance.
Threats can be:

 Competition: New entrants in the market, aggressive pricing strategies of competitors, or

substitute products that emerge.
 External Influences: Changes in government regulations, economic downturn, technological
disruptions, or natural disasters.

Example: The bakery might consider competition from large grocery stores introducing their own
bakery sections (competition) or a potential rise in flour prices due to a bad harvest (external
influence) as threats.

By analysing these four aspects, organizations can develop strategies that leverage their strengths,
address weaknesses, capitalize on opportunities, and mitigate threats.

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4. Explain PESTLE Analysis with various examples.

Answer: PESTLE analysis is a framework used to examine the external factors that can impact an
organization. PESTLE stands for:

A. Political: These factors include government policy, political stability, trade regulations, and
tax laws.

Example: A company manufacturing toys in China might be impacted by trade tensions

between China and the US, leading to increased tariffs and affecting their production costs.

B. Economy: Economic factors include inflation rates, interest rates, economic growth, and
consumer spending habits.

Example: A rising interest rate environment could discourage people from taking out loans to
buy cars, impacting a car manufacturer's sales.

C. Social: Social factors include demographics, cultural trends, consumer preferences, and
health consciousness.

Example: The growing popularity of plant-based diets might create an opportunity for a
company to develop new vegan food products.

D. Technology: Technological factors include advancements in technology, automation,

research and development, and the rise of e-commerce.

Example: The development of self-driving cars could disrupt the traditional taxi industry.

E. Legal: Legal factors include environmental regulations, employment laws, consumer

protection laws, and intellectual property rights.

Example: A new data privacy law might require a social media company to change the way it
collects and stores user data.

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F. Environment: Environmental factors include climate change, resource availability, pollution

levels, and waste disposal regulations.

Example: A stricter regulation on carbon emissions might force a power company to invest
in renewable energy sources.

By understanding these external factors through a PESTLE analysis, businesses can:

 Identify potential opportunities and threats in the marketplace

 Develop strategies to mitigate risks and capitalize on opportunities
 Make informed decisions about their operations, marketing, and future plans

It's important to note that PESTLE factors are constantly evolving, so businesses need to regularly
monitor these external forces and adapt their strategies accordingly.

5. What is divestment? Explain various reasons for divestment.

Answer: Divestment, the opposite of investment, refers to the process of selling off assets or
businesses. It's a strategic decision companies or even individuals undertake for various reasons,
which can be financial, ethical, or political. Here's a breakdown of the different reasons for
divestment:

Financial Reasons:

 Improve Profitability: Companies might divest from underperforming assets or businesses

that are no longer core to their operations. This can help them streamline their focus, improve
efficiency, and boost overall profitability.
 Raise Capital: Divestment can be a way to generate quick cash. Companies may sell assets
to raise funds for new investments, debt repayment, or shareholder dividends.
 Restructuring: Divestment can be part of a larger restructuring plan. Companies may divest
non-essential assets to focus on core competencies and improve their financial health.

Ethical Reasons:

 Socially Responsible Investing (SRI): Divestment can be a tool for promoting social
responsibility. Investors or companies might divest from holdings they consider unethical,
such as companies involved in weapons production, tobacco, or industries with poor
environmental practices.

Political Reasons:

 Pressure Groups: Divestment campaigns can be used to exert pressure on companies or

governments. For example, activists might encourage universities to divest from fossil fuel
companies to address climate change concerns.
 Geopolitical Issues: Divestment can be a response to political tensions or conflicts.
Companies might divest from assets in countries with unstable governments or where doing
business is deemed risky.

Here are some additional points to consider:

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 Divestment can be a complex process with legal and financial implications.

 The decision to divest should be based on careful analysis and a clear understanding of the
potential consequences.
 Divestment can be a way for companies to adapt to changing market conditions and
stakeholder expectations.

I hope this explanation clarifies the concept of divestment and its various motivations.

6. Explain various types of international / global expansion.

Answer: There are several methods companies can use to expand their reach internationally. Here's a
breakdown of some common types of international expansion strategies:

Exporting:

 This is the most traditional method, where a company directly sells its products or services to
customers in another country. It can be done through various channels like:
o Direct exporting: Selling directly to foreign buyers or distributors.
o Indirect exporting: Using intermediaries like export agents or trading companies to
handle the foreign sales process.
 Advantages: Relatively low initial investment, minimal disruption to existing operations.
 Disadvantages: Less control over marketing and distribution, exposure to currency
fluctuations and foreign trade regulations.

Example: A California-based winery exports its premium wines to distributors in France and
Japan. They maintain control over production but rely on local partners for distribution and
marketing.

Licensing:

 This involves granting a foreign company (licensee) the right to use your intellectual property
(like brand name, patents, or trademarks) for a fee (royalty). The licensee then manufactures
and sells your product or service in their own market.
 Advantages: Faster market entry, lower investment compared to setting up your own
operations, licensee handles marketing and distribution.
 Disadvantages: Less control over quality and brand image, potential loss of long-term profits
if the licensee becomes too successful.

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Example: A popular athletic shoe brand licenses its designs and technology to a Chinese
manufacturer. The Chinese licensee produces the shoes for the Asian market at a lower cost,
and the brand owner receives royalties on each pair sold

Franchising:

 Similar to licensing, but franchising involves a more comprehensive business model transfer.
The franchisor (you) grants the franchisee (the foreign company) the right to operate a replica
of your business, including branding, marketing strategies, and operational procedures.
 Advantages: Rapid market expansion, shared investment and risk, franchisee handles local
operations and marketing.
 Disadvantages: Finding suitable franchisees, ongoing support required for franchisees,
potential loss of control over brand consistency.

Example: A well-known fast-food restaurant chain franchises its operations in India. The
Indian franchisee pays an initial fee and royalties to operate the restaurant using the brand's
established menu, branding, and operational guidelines.

Joint Ventures:

 This involves partnering with a local company in the target market to establish a new,
independent business entity. Both companies share ownership, resources, and profits.
 Advantages: Gains local market knowledge and expertise, reduces risks and costs associated
with entering a new market.
 Disadvantages: Sharing profits and decision-making with a partner, potential for conflicts or
disagreements with the joint venture partner.

Example: A German automaker partners with a Chinese car manufacturer to establish a joint
venture that designs, manufactures, and sells electric vehicles specifically for the Chinese
market. Both companies share the costs and profits of the venture

Mergers and Acquisitions (M&A):

 This involves acquiring or merging with an existing company in the target market. This
allows for a quicker and more established presence in the new market.
 Advantages: Gain immediate market share, access to existing infrastructure and distribution
channels.

 Disadvantages: High cost and complexity of M&A transactions, potential integration

challenges with the acquired company.

Example: A US-based social media company acquires a smaller social media platform
popular in Brazil. This acquisition allows the US company to gain immediate access to the
Brazilian market and its established user base.

The best strategy depends on your specific situation. Here are some factors to consider:

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 Company Size and Resources: Smaller companies might find exporting or licensing easier
due to lower initial investment.
 Industry: Highly regulated industries might benefit from joint ventures with local partners
who navigate regulations.
 Target Market: Franchises work well for established brands in markets with strong brand
recognition. Greenfield ventures might be suitable for companies with unique technology or
expertise.

The choice of international expansion strategy depends on factors like the company's size, resources,
industry, and target market. It's crucial to carefully analyse the pros and cons of each approach to
select the method that best aligns with your overall business goals and risk tolerance.

BIBLIOGRAPHY of all the answers I provided:

1. Globalization

 https://www.investopedia.com/terms/g/globalization.asp
 https://youmatter.world/en/dictionary/

2. Strategic Management Process

 https://www.managementstudyguide.com/strategic-management-process.htm
 https://en.wikipedia.org/wiki/Strategic_management

3. SWOT Analysis

 https://simple.wikipedia.org/wiki/SWOT_Analysis
 https://en.wikipedia.org/wiki/SWOT_analysis

4. PESTEL Analysis

 https://www.investopedia.com/ask/answers/041015/whats-difference-between-
porters-5-forces-and-pestle-analysis.asp
 https://blog.oxfordcollegeofmarketing.com/2016/06/30/pestel-analysis/

5. Divestment

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 https://dealroom.net/faq/divestiture-guide
 https://www.investopedia.com/terms/d/divestment.asp

6. International Expansion Strategies

 https://www.smartling.com/resources/101/what-is-an-international-strategy-5-
examples/
 https://www.investopedia.com/international-markets-4689750

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