Task 1

According to the assignment brief we have to choose a middle scale or a large scale organization. So I choused Srilankan airlines which is a large scale organization.

Srilankan airlines

SriLankan Airlines, which began operations in 1979, has re-invented itself in the recent past, winning numerous global awards and establishing a firm reputation as a leader among Asian airlines in service, comfort, reliability, and punctuality. As the National Carrier of Sri Lanka, SriLankan is proud to take to the air the qualities of warmth, caring and friendliness that are a distinct part of Sri Lankas culture.

SriLankan Airlines is the national airline of Sri Lanka. The airlines has its hub at Bandaranaike International Airport, Colombo. Sri Lankan Airlines was earlier known as Air Lanka and was established in 1978. In April 1998, Air Lanka, was privatised following the establishment of a strategic partnership with Dubai based Emirates Airline and was re-christened as SriLankan Airlines. United Arab Emirates airline holds 40% stake in the new company. As part of its commitment to the Sri Lankan government, Emirates contracted to undertake the management of Air Lanka for a 10-year period.

SriLankan Airlines has one of the most modern fleets in the region. It was the first Asia to fly the Airbus A340 and the first in South Asia to order the Airbus A330-200. The airlines presently has an all airbus fleet. It fleet consists of five A340-300, and nine A330-200 aircrafts. Sri Lankan Airlines presently flies to 49 destinations across Europe and Asia. In India, SriLankan Airlines has an extensive network and flies to Bangalore, Chennai, Delhi, Goa, Hyderabad, Kochi, Kozhikode, Mumbai, Tiruchirapalli, and Thiruvananthapuram.

Srilankan Airlines Vision

To be the most preferred airline in Asia

Srilankan Airlines Mission

We are in the air transportation business. We provide our customers with a reliable and pleasant travel experience. We provide our business partners with a variety of innovative, professional and mutually profitable services. We meet Shareholder expectations of profitably marketing Sri Lanka and contributing towards the well-being of Society. We are a competent, proactive and diligent team. Our contribution is recognized and rewarded.

Objectives of Srilankan Airlines Reach Across the World

SriLankan Airlines was rebranded in July 1999, after privatization and a strategic partnership with Emirates saw massive re-structuring and revitalizing plans come into action. Over the years since then, considerable time and effort has been invested into taking the Airline to its present world class ranking, winning several international aviation awards and a reputation for fine service, reliability and in-flight comfort, comparable with the best in the industry. Today, SriLankan Airlines offers a streamlined and efficient travel experience. Their high standards of safety, in-flight comfort, fine cuisine and the world-famously friendly service delivery, see a growing number of passengers flying across the world with Them. Intelligent route management is another vital factor in their success story. This year they proudly announced that through direct flights and code-share combined, they have increased their destinations to fifty one, in twenty eight countries. They also fly to ten destinations in India on a weekly basis, plus fourteen destinations within Sri Lanka a network thats expanding rapidly to reach every corner of the world.

To promote the standards of product and maintain a service of international standard. Currently Srilankan is giving a high quality services to their customers and their objective is to maintain this standard and to offer international standard services to their clients.

To improve the relationship and cooperation among customers, Srilankan employees and other stake holders involved in development and social welfare activities. Srilankan Airlines works hard to build good relationship with the customers by providing them good services and they are committed to countrys

welfare and they have done many projects to improve the standard of living in Sri Lanka by improving the ICT in Sri Lanka.

Core Values of Srilankan Airlines

Proactive and initiative Responsibility and accountability Diligence Professionalism Sense of urgency More demanding Lead from front Creativity Enthusiasm

Stakeholders, Their Objectives & for which extend objectives are achieved in Srilankan Airlines

Senior Management & employees:Currently Srilankan Airlines is having more than 5000 employees working for their organization. All the employees have given their maximum efforts to the organizations success. If we consider the objective of Srilankan Airlines work force it differs according to the types and standard of the work they do. If we look at the senior managements objectives organizations growth, promotions, maximum reward for their services in the organization, fringe benefits and put the organization in correct path to achieve the success thus becoming as the market leader. If we look at how far the senior management has achieved their objective in Srilankan, for example if we take organizations growth I can say Srilankan Airlines is in its peak of the success are they are doing far better than other Airlines in Asia, so it is clear by the success of the organization that senior management has achieved one of their major objectives in the organization which shows their hard work in the organization.

Customers:They have the best qualities of treating the customers, they think the customers are most important and they help customers in any case Srilankan Airlines Passengers can be considdered as a stake holder. But the consumers objective is totally different than the other stakeholders. This is because customers will always mainly focuse on standard services and lower rate for the services. And the customers will always look for good customer care services with Airline Industry. If we consider for what extend customers have achieved their objectives Srilankan gives a very good standard services for their customers and recently they have

reduce the Ticket Prices for considerable amount. Recently they achived of of their main targets and was awarded As the Worlds friendliest Airline. Government:Sri Lankan government can be considered as an external stakeholder of Srilankan Airlines. This is because Government becomes a stakeholder because it influences the organisation. Sri Lankan governments rules and regulations must adopted in an organization in Sri Lanka, if they fail to adopt it government will take actions against Srilankan Airlines

The Strategies that Srilankan airlines (pvt) Ltd, has put forward to achieve Competitive Advantage

Labour is an important Factor Condition for an Airline Industry. But it has never been a hard task for Srilankan airlines to attract people towards them. Qualities and values such as Teamwork, Training and development, Performance appraisals, have made Srilnakan a unique and a better work environment than other entities. The labour force of Srilanka has grown from 4000 to 6000 from 2005 to 2008

The following strategies have been followed at Srilanakan in order to attract employees. o Ensuring the right fit- The right person for the right job is a fundamental tenet in recruitment and selection. Standing of Srilankan as the preferred employer in Sri Lanka has ensured the acquisition of an excellent pool of skills and talents that is constantly bigger and broader plans of expansions and modernization.

o Srilanakn has espoused the principle of a strong internal first approach and the Internal Employees gives their associates the first option to pursue opportunities for career progression and development.

o Rewards Recognition and Enjoyment In addition to regular remuneration and benefits, associates of Srilanakn are rewarded with attendance incentives,, cash reward for service, annual bonus, free breakfast, concessionary lunch, uniforms, a comprehensive health and 7

medical scheme for both physical and psychological well being with special care for pregnant associates, staff loans, insurance cover, medical needs for associates and their families.

For instance Srilankan Intimate Apparel has funded an associates

childs heart surgery, a prosthetic limb for an associates spouse and thyroid treatment for an associate this year.

Going Beyond Training The T&D of Srilankan Airlines purviews are broad and not simply focused on the subject at hand but rather as an incentive to enable the team to be innovative problem solvers who think out of the box.

The budgeted T&D figures were doubled in anticipation of the

expansion and off-shore projects as well as the higher concentration on skills and talent development. T&D investment notched US$ 395,800(LKR 395 million) compared to US$ 176,600(LKR 176) invested last year. The T&D has spanned over a total of 173 programmes comprising both internal and external programmes with an average training of 3.82 man days per associate.

o -

Occupational Health and Safety

Occupational Health and Safety remains integral to a safe workplace and in creating the appropriate environment for employees to flourish, develop and have peace of mind

Firm strategy structure talks about the strategies of the business being in accordance with national culture and aspects.

Srilankan commit to them that their business decisions will balance economic progress, while driving a culture of sustainable development through a responsible consciousness for the environment and the community, while their people will be uplifted in mind, body and soul through a knowledge-centric learning culture that emphasizes tangible and intangible skills and talent development.

Srilankan position as the largest apparel exporter in Sri Lanka, one of the biggest employers and an industry leader adds more responsibility, transparency and accountability to their role and emphasizes the needs for sincerity, ethics and integrity in the way of doing business.

In the 2nd task we have to discuss the economic , social and global environmental aspects of the selected organization.

Task 2 What are the economic, social and global environmental aspects of Srilankan airlines?

Global recession The economic down turn has had an adverse impact on SriLankan Airlines with reduction in number of passengers. People have less disposable income and inflation has increased. Thus, disposable income is low. Unemployment is high. People are not willing to fly.people are taking fewer holidays and are also reluctant to travel long haul. Various measures have been taken to reduce CO2 emission of flights. SriLankan Airlines have initiated Green flights.

PEST Analysis

Political Factors Countries differ in their political and legal approaches. Political developments at any level (locally, nationally and internationally) can have an impact on the framework in which goods and services are produced, distributed and sold. Therefore when starting up a business, it is very important to analysis the political factors and issues of that country. Specially factors that you think are important to your business and will affect your business.

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Sri Lankan government can be considered as a political factor of Srilankan Airlines. This is because Government becomes a stakeholder because it influences the organisation. Sri Lankan governments rules and regulations must adopt in an organization in Sri Lanka, if they fail to adopt it government will take actions against Srilankan. The government can make a huge influence upon the organization example like taxation business laws and trade regulations. And another point is employee protection so Srilnakan must work under these standards. Economic aspects

SriLankan Airlines says bookings up, to increase flights SriLankan Airlines said it will increase flights this winter season to a dozen cities throughout Europe, the Middle East, the Indian subcontinent, and Far East as bookings were on the rise. The move is based on its projection that passenger numbers will "definitely increase" following the end of the island's ethnic war, the airline said in a statement. Forward booking for winter season has been encouraged and SriLankan Airlines is providing more flights to destination where the company will experience a high market growth. The increase in flights will be effective from October 25, and the new Milan service will be launched on December 16. The countrys tourism industry has witnessed steady growth since its 30-year war ended in May, when government forces defeated Tamil Tiger separatists. Tourist arrivals to the island have risen sharply despite the global economic downturn which has discouraged air travel.

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Statistics from the Sri Lanka Tourism Development Authority show that tourist arrivals from all countries grew by 34 percent in August 2009 in comparison to the same month in the previous year, and 28 percent in July. Sri Lankas national carrier said that in Europe it is launching a new twice-weekly service to Milan in northern Italy, with "considerable expectations" of increased Italian tourism into Sri Lanka. It is also adding two flights a week to London, bringing the number of flights to 12. "The UK has long been one of the largest tourism markets into Sri Lanka, and also has a sizeable population of Sri Lankan immigrants," the airline statement said. In the Far East, SriLankan will add three flights to both Singapore and Kuala Lumpur, which will each be served by 10 flights per week. "This will also serve Sri Lankan outbound traffic to these popular Southeast Asian cities," the airline said. One additional flight will start to Hong Kong, which will then have four weekly flights. Four cities in the Indian subcontinent region will get additional flights, to support South Asian tourism into Sri Lanka, the airline said. Trichy in south India and the Maldivian capital Male will each receive two additional flights. Trichy will then have a total of nine per week, while Male, where SriLankan has for many years been the largest carrier, will have 23. The airline is also increasing one flight each to Bangalore and Karachi, which will then have five and three flights. The airline also said it will increase one flight per week to Bahrain, Doha and Dammam, which will thus be served by three, five and four weekly flights.

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"With the addition of Milan, SriLankan will expand its route network to 44 destinations in 29 countries across the world," the statement said. "Despite the worldwide slowdown in air travel due to the global economic meltdown, SriLankan is continuing to strengthen its route network by launching services to selected destinations, and by strengthening its code share network with partner airlines."

SOCIAL ASPECTS COMMUNITY SERVICES Yet another social responsibility effort from SriLankan Airlines Thirteen undergraduates of the University of Ruhuna successfully completed an on-thejob training programme at SriLankan Airlines recently, yet another of the National Carriers many social responsibility efforts. SriLankan Airlines initially provided an in-house training programme for 25 undergraduates of Ruhuna, on the request of Dr. P. Hewage, Director of the Universitys Career Guidance Unit. The programme included leadership skills, presentation skills, speech & effective communication, telephone etiquette, social & office etiquette, strategic thinking, team building, MS Office IT packages and how to face interviews. Based on their performance, 13 of them were selected for the 3 month on-the-job internship, and placed in various projects around the Airline. Constant feedback was obtained from the Airlines departmental managers and the trainees regarding the programme, and project reports were compiled by each trainee and presented to Dr. Hewage for use by future students. The Airline also provided free transport, breakfast, lunch and tea for the interns throughout their programme. Sunil Dissanayake, Head of Human Resources at SriLankan Airlines, said that the Airline has invested more than half a million rupees for this programme, and noted that most of 13

the participants secured jobs while they were engaged in the programme, thus achieving the objective of making undergraduates employable. SriLankan Airlines has been working closely with several universities to support the cause of making graduates employable. These include a course in Business English for 12 final year undergraduates of the University of Colombo, and a 16 month internship programme for graduates involved in the Tharuna Aruna programme of the National Apprentice & Industrial Training Authority. The Airline also makes considerable efforts to assist in the education of children, such as the distribution of 30,000 schoolbooks in all areas of the country for the second consecutive year. In addition, it has taken 53 boys and girls gathered from every district on an educational tour to the Maldives,and currently provides computer training for ten children of the airlines employees, provides a scholarship in Computer and English training for the entire school career of the student who obtains the best result each year at the Grade 5 Scholarship Exam from among the Airlines employees children, and supports the Healthy Schools Project of the Colombo Municipal Council which is aims at ensuring that Colombos 150 schools have friendly environments that are healthy, comfortable and productive for students. SriLankans biggest school project is the adoption of Meepagama Jayanthi Maha Vidyalaya in Kalawana in the Ratnapura District, a school built for 400 children that now has nearly 1,000 students after floods destroyed several neighbouring schools. The Airline has invested Rs. 4.7 million for a new building that is scheduled for completion in May. SriLankan has already provided a fully equipped playground for the younger children, a computer room, computer training for members of the staff, sponsored the sports meet, and held a medical camp to treat students for everything from inoculations to dental problems.

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Other social responsibility projects by SriLankan Airlines include an Annual Blood Donation Campaign by the companys Medical Centre, the annual Christmas on Wings programme which raises funds for members of the staff to spend a day at a charitable institution such as an orphanage and brighten up the lives of children at a different institution each year, assisting the Mammography Programme of the National Hospital to fund mammograms for those who cant afford them, and gathering and distributing food and medicines for the flood relief effort last year, including airlifting of items sent from Europe projects. Education The education of Sri Lanka is handled by the ministry of education in Sri Lanka. All the decisions regarding the education system of Sri Lanka is taken by the ministry of education. Sri Lanka has a education system, that is highly recognized around the world. And Sri Lanka also creates a large number of graduates from the Sri Lankan universities. When discussing about the education of Sri Lanka. Most of the Sri Lankans can read and write. The literacy rate of Sri Lanka is high compared to other third world countries in the world.92.3% of the Sri Lanka can have the ability to read and write. The literacy rate of males of Sri Lanka is 94.8%. Education has been given priority by the government; this will provide Srilanakan Airlines with the opportunity to recruit highly skilled employees at relatively low wages. and far east. SriLankans many employees unions also actively participate in their own social welfare

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Technological Factors

When setting up a business, identifying the Technological factors of the particular country is very essential as it is another main aspect of the PEST analysis, which could affect your business activities. Some of the technological factors that have been identified are-:

Recent technological developments. Technology's impact on product offering. Impact on cost structure. Impact on value chain structure. Rate of technological diffusion. (NetMBA, 2002)

As the Prime Minister of Sri Lanka has stated, "The developing countries invest on the average of 1-1.5% of their income for innovations. The Sri Lankan Government spent only 0.2% of the GDP in science and technology, but following the Mahinda Chinthanaya, the Government has set 1% of the GDP for innovations in the field of science and technology." (Peiris.M, 2006.) Therefore from this we could assume that even though Sri Lanka had a very low level of technology. It is also mentioned that important sectors such as agriculture and trade have developed with the help of hi-tech information services during the past five years. And this could be of benefit to our company as we have the chance of using hi-tech information services too.

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SWOT analysis for Srilankan Airlines

If we relate SWOT analysis to Srilankan Airlines we can easily identify the Strengths, Weaknesses, Opportunities, and Threats involved in our business. First well take internal factors. By looking at the way our business operates I took an idea about strengths and weaknesses of our company. According to my findings strengths are as follows, The challengers the Srilankan airlines should face is 1. Srilanakan airlines is a world wide recognized airline 2. The brand name 3. Established employees working under srilanakan Airlines

The challengers Srilankan airlines will face is

1. 2.

Hove to compete with the other challenging Air lines in Asia. Their will be lots of Airlines to challenge with

The opportunities Srilanakan Airlines will have

1.

Their will be lots of opportunities because Srilankan airlines is a well established airline where lot of people recognizes it as a star airlines. Srilanaka is a country in the middle of the world so it is easy for the people to get to the country which they want to go through Srilankan Airlines.

2.

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The threats Srilakan Airlines will face

1.

The main treat Srilanaka Airlines will have is. Their are lots of competing airlines in the Asia. So will those customers leave there long time airlines and change in to other Airlines.

2.

And will the customers can afford the prizes of other airlines.

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Task 3

Discuss the relationship between the market forces and SriLankan Airlines with examples.

SriLankan Airlines is facing severe competition from International carriers and is finding it difficult to maintain their market pricing strategies. The above scenario is expected to change with the end of the countrys 30 years war, where tourist arrivals are expected to increase drastically during winter. Thus, SriLankan Airlines has taken measures to increase flights to a dozen cities throughout Europe, the Middle East, the Indian subcontinent, and Far East as bookings are on the rise. The increase in flights will be effective from October 25, and the new Milan service will be launched on December 16.

Global recession has had an adverse impact on SriLankan Airlines. Slow GDP growth, slow expansion of businesses, and rise in rate of unemployment has lead to reduction in customer spending power. Therefore, the airline was compelled to operate with lesser passenger loads incurring higher operational expenditure during 2008/2009 financial year.

There has also been an increase in airlines operating to Sri Lanka especially low cost carriers such as Air Asia etc. that will further dilute the market and UL will find it difficult to compete with these airlines that operate on the low cost model and offer very low fares.

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To counter this threat, UL has invested in heavy advertising and has enhanced the Inflight product through introduction of five star BC service and Ala Carte meal service on business class. An increase in fuel prices has affected SriLankan Airlines adversely as the rising cost of fuel has a direct impact on rising cost of operational expenditure. Increase in fuel cost has repeatedly triggered economic recessions, which in turn resulted in a substantial decline in demand for air travel and air cargo. SriLankan Airlines have taken various cost cutting measures to combat rising fuel prices and maintain reserves. Taxiing on one engine, delaying startup and push back, removing all discretionary weight, and using ground power instead of onboard auxiliary power units while at the gate are some of the techniques adapted by UL. These and similar measures are increasingly being used where commensurate with safety considerations to save fuel and, not incidentally, to reduce emissions. Global recession has an adverse impact on cost of raw material. Meal costs, interior cleaning raw material costs, engineering components costs have increased drastically posing a negative impact on overall expenditure of UL. The maintenance cost of aircrafts too has increased due to above factors hampering the bottom line of UL.

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Market Forces of Srilankan Airlines

Airline industry is very profitable. There are several reasons for this, using the five forces analysis I clearly demonstrated how each force contributes the profitability of the industry.

Barriers to Entry: The several factors that make it very difficult for the competition to enter the airline industry.

Partnership with Emirates: Srilankan Airlines has an agreement with Emirates

Airlines, so by that they have a strong market base.

Brand Image / Loyalty: Srilankan has a long history of heavy advertising and this has

earned them huge amount of brand equity and loyal customers all over the world. This makes it virtually impossible for a new entrant to match this scale in this market place.

Suppliers: Supplier power is the mirror image of the buyer power. As a result, the analysis of supplier power typically focuses first on the relative size and concentration of suppliers relative to Srilankanss participants and second on the degree of differentiation in the inputs supplied. The ability to charge customers different prices in line with differences in the value created for each of those buyers usually indicates that the market is characterized by high supplier power and at the same time by low buyer power.

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Srilanakas caters is one main suppliers for Srilankan Airlines. SriLankan Catering, although a 100% owned subsidiary of SriLankan Airlines, is a standalone operation responsible for its own economic infrastructure, management and profitability. Under the guidance of its chief executive officer, the companys prime responsibility is the preparation of in-flight meals for SriLankan Airlines. It also caters for foreign airlines, among which are Qatar Airways, Pacific, Singapore and Emirates. SriLankan Catering can produce 15,000 meals each day

Buyers: The major channels for the Airline industry are travelers, corporate people. The profitability in each of these segments clearly illustrates the buyer power and how different buyers pay different prices based on their power to negotiate.

Travelelers mostly they travel in the seasonal times of the year. In that case the airlines Corporate people Mostly corporate people travel through Srilankan Airlines for their

gains more profit.

business purposes, most of them are regular customers of the Airline. So Srilankan airlines have organized the business class.

Substitutes The threat that substitute products pose to srilnkan Airlines tickets profitability depends on the relative price-to-performance ratios of the different types of products or services to which customers can turn to satisfy the same basic need. The threat of substitution is also affected by switching costs that is, the costs in areas such as retraining, retooling and redesigning that are incurred when a customer switches to a different type of product or service.

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Rivalry: The Concentrate Producer industry can be classified as a Duopoly with Srilankan and Mihin Air as the firms competing. The market share of the rest of the competition is too small to cause any upheaval of pricing or industry structure. Srilanakan and Mihin Lanka mainly over the years competed on differentiation and advertising rather than on pricing except for a period in the 1990s. This prevented a huge dent in profits. Pricing wars are however a feature in their international expansion strategies.

Task 4
Ansoff Matrix
The Ansoff Growth matrix is a tool that helps businesses decides their product and market growth strategy. Ansoffs product/market growth matrix suggests that a business attempts to grow depend on whether it markets new or existing products in new or existing markets. There are four possible product-market combinations. Ansoff's matrix is shown below,

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 Market Penetration (existing markets, existing products) Here we market our existing products to our existing customers. Simply we can say that increasing our revenue. Promoting the product and introducing brand name are some examples. However, the product is not altered and we do not seek any new customers. Through market penetration we an achieve four main objectives, 1) Maintain or increase the market share of current products 2) Secure dominance of growth markets 3) Restructure a mature market by driving out competitors 4) Increase usage by existing customers Market Development (new markets, existing products) Here we market our existing product range in a new market. This means that the product remains the same, but it is marketed to new customers. Exporting the product or marketing it in a new region is some examples of market development. If we relate it to R&G distributors exporting our product is one example for market development. Market development is the name given to a growth strategy where the business attempts to sell its existing products into new markets. Product Development (existing markets, new products) This is a new product to be marketed to our existing customers. Here we develop and innovate new product offerings to replace existing ones. Such products are then marketed to our existing customers. Diversification (new markets, new products) This is where we market completely new products to new customers. Diversification is an inherently higher risk strategy because the business is moving into markets in which it has little or no experience. For a business to 24

adopt a diversification strategy, it must have a clear idea about what it expects to gain from the strategy and a transparent and honest assessment of the risks. For example we can say moving over from selling foods to selling cars. These are the four methods that can use under Ansoff Matrix. Considering about R&G distributors out f these four markets Penetration is more suitable, because at the moment our business is stagnant. To avoid these weaknesses and start it in new way we can use market penetration method. In market penetration we market our existing products to our existing customers. We can use strong brand name to introduce our product to current market and through that we can build loyal customers. As I mention before through market penetration we an achieve four main objectives, 1) Maintain or increase the market share of current products By creating brand loyalty or introduce our product to our customers in new way we can increase our market share. 2) Secure dominance of growth markets 3) Restructure a mature market by driving out competitors By introducing brand name and increasing the quality we can achieve this target. 4) Increase usage by existing customers But at the moment we introduce a new product to existing market. Therefore I use Product Development method also to market the new product.

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The BCG Matrix

The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. It is based on the observation that a company's business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the name "growth-share". Market growth serves as a proxy for industry attractiveness, and relative market share serves as a proxy for competitive advantage. The growth-share matrix thus maps the business unit positions within these two important determinants of profitability.

BCG Growth-Share Matrix

This framework assumes that an increase in relative market share will result in an increase in the generation of cash. This assumption often is true because of the

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experience curve; increased relative market share implies that the firm is moving forward on the experience curve relative to its competitors, thus developing a cost advantage. A second assumption is that a growing market requires investment in assets to increase capacity and therefore results in the consumption of cash. Thus the position of a business on the growth-share matrix provides an indication of its cash generation and its cash consumption. Henderson reasoned that the cash required by rapidly growing business units could be obtained from the firm's other business units that were at a more mature stage and generating significant cash. By investing to become the market share leader in a rapidly growing market, the business unit could move along the experience curve and develop a cost advantage. From this reasoning, the BCG Growth-Share Matrix was born. The four categories are:

Dogs - Dogs have low market share and a low growth rate and thus neither generate nor consume a large amount of cash. However, dogs are cash traps because of the money tied up in a business that has little potential. Such businesses are candidates for divestiture.

Question marks - (problem child) Question marks are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is a large net cash comsumption. A question mark (also known as a "problem child") has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share.

Stars - Stars generate large amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate; therefore the cash in each direction approximately nets out. If a star

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can maintain its large market share, it will become a cash cow when the market growth rate declines. The portfolio of a diversified company always should have stars that will become the next cash cows and ensure future cash generation.

Cash cows - As leaders in a mature market, cash cows exhibit a return on assets that is greater than the market growth rate, and thus generate more cash than they consume. Such business units should be "milked", extracting the profits and investing as little cash as possible. Cash cows provide the cash required to turn question marks into market leaders, to cover the administrative costs of the company, to fund research and development, to service the corporate debt, and to pay dividends to shareholders. Because the cash cow generates a relatively stable cash flow, its value can be determined with reasonable accuracy by calculating the present value of its cash stream using a discounted cash flow analysis.

Under the growth-share matrix model, as an industry matures and its growth rate declines, a business unit will become either a cash cow or a dog, determined soley by whether it had become the market leader during the period of high growth. While originally developed as a model for resource allocation among the various business units in a corporation, the growth-share matrix also can be used for resource allocation among products within a single business unit. Its simplicity is its strength - the relative positions of the firm's entire business portfolio can be displayed in a single diagram. Limitations The growth-share matrix once was used widely, but has since faded from popularity as more comprehensive models have been developed. Some of its weaknesses are:

Market growth rate is only one factor in industry attractiveness, and relative market share is only one factor in competitive advantage. The growth-share matrix overlooks many other factors in these two important determinants of profitability.

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The framework assumes that each business unit is independent of the others. In some cases, a business unit that is a "dog" may be helping other business units gain a competitive advantage.

The matrix depends heavily upon the breadth of the definition of the market. A business unit may dominate its small niche, but have very low market share in the overall industry. In such a case, the definition of the market can make the difference between a dog and a cash cow.

While its importance has diminished, the BCG matrix still can serve as a simple tool for viewing a corporation's business portfolio at a glance, and may serve as a starting point for discussing resource allocation among strategic business units.

According to above structure if we analyze BCG matrix to unique industry Particular Our market share Market growth B C G category Noodles High High Star Soya Law High Problem Child Mineral Water High Law Cash Cow Incense sticks Law Law Dog Noodles: in this noodles achieve market share and market growth high. So, this wills consider as star so, we can get clear output of this product in our unique industry business in order to facilitate the current position and market the current market share we should consider some appropriate strategies such as Machine up investments of rivals Advertising etc..

Soya: In the BCG matrix Soya is consider to be the problem child/ question mark since it has the lowest market share even though the soya market is rapidly growing in order to

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match the market share of competitors and to gain some more customer base we should consider the Soya market has structure with it has High competition Low quality products more investments through the elements of the insect stick the usage of mineral water cash flows. Make the problem child. Mineral Water: mineral water as a product is being considered as the cash cow in the BCG matrix of unique industries since the market same of the mineral water is low in the rapidly growing mineral water so, the more working capital is being strutted with the product in order to overcome the problem child appropriate measure is to invest in problem child theory the reversal of cash cows cash flow. Incense sticks: Its seem to be dog, element in the BCG matrix of the unique industry since it has got a low growth market so, and the appropriate measure is the elimination of the product

Generic Strategy
If the primary determinant of a firm's profitability is the attractiveness of the industry in which it operates, an important secondary determinant is its position within that industry. Even though an industry may have below-average profitability, a firm that is optimally positioned can generate superior returns. A firm positions itself by leveraging its strengths. Michael Porter has argued that a firm's strengths ultimately fall into one of two headings: cost advantage and differentiation. By applying these strengths in either a broad or narrow scope, three generic strategies result: cost leadership, differentiation, and focus. These strategies are applied at the business unit level. They are called generic strategies because they are not firm or industry

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dependent.

Porter's Generic Strategies

Advantage Target Scope Low Cost Product Uniqueness

Broad (Industry Wide)

Cost Strategy

Leadership

Differentiation Strategy

Focus Narrow (Market Segment) Strategy (low cost)

Focus Strategy (differentiation)

Cost Leadership Strategy This generic strategy calls for being the low cost producer in an industry for a given level of quality. The firm sells its products either at average industry prices to earn a profit higher than that of rivals, or below the average industry prices to gain market share. In the event of a price war, the firm can maintain some profitability while the competition suffers losses. Even without a price war, as the industry matures and prices decline, the firms that can produce more cheaply will remain profitable for a longer period of time. The cost leadership strategy usually targets a broad market.

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Some of the ways that firms acquire cost advantages are by improving process efficiencies, gaining unique access to a large source of lower cost materials, making optimal outsourcing and vertical integration decisions, or avoiding some costs altogether. If competing firms are unable to lower their costs by a similar amount, the firm may be able to sustain a competitive advantage based on cost leadership. Firms that succeed in cost leadership often have the following internal strengths:

Access to the capital required making a significant investment in production assets; this investment represents a barrier to entry that many firms may not overcome.

Skill in designing products for efficient manufacturing, for example, having a small component count to shorten the assembly process. High level of expertise in manufacturing process engineering. Efficient distribution channels.

Each generic strategy has its risks, including the low-cost strategy. For example, other firms may be able to lower their costs as well. As technology improves, the competition may be able to leapfrog the production capabilities, thus eliminating the competitive advantage. Additionally, several firms following a focus strategy and targeting various narrow markets may be able to achieve an even lower cost within their segments and as a group gain significant market share.

Differentiation Strategy A differentiation strategy calls for the development of a product or service that offers unique attributes that are valued by customers and that customers perceive to be better than or different from the products of the competition. The value added by the uniqueness of the product may allow the firm to charge a premium price for it. The firm hopes that the higher price will more than cover the extra costs incurred in offering the unique product. Because of the product's unique attributes, if suppliers increase their prices the

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firm may be able to pass along the costs to its customers who cannot find substitute products easily. Firms that succeed in a differentiation strategy often have the following internal strengths:

Access to leading scientific research. Highly skilled and creative product development team. Strong sales team with the ability to successfully communicate the perceived strengths of the product. Corporate reputation for quality and innovation.

The risks associated with a differentiation strategy include imitation by competitors and changes in customer tastes. Additionally, various firms pursuing focus strategies may be able to achieve even greater differentiation in their market segments.

Focus Strategy The focus strategy concentrates on a narrow segment and within that segment attempts to achieve either a cost advantage or differentiation. The premise is that the needs of the group can be better serviced by focusing entirely on it. A firm using a focus strategy often enjoys a high degree of customer loyalty, and this entrenched loyalty discourages other firms from competing directly. Because of their narrow market focus, firms pursuing a focus strategy have lower volumes and therefore less bargaining power with their suppliers. However, firms pursuing a differentiation-focused strategy may be able to pass higher costs on to customers since close substitute products do not exist. Firms that succeed in a focus strategy are able to tailor a broad range of product development strengths to a relatively narrow market segment that they know very well.

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Some risks of focus strategies include imitation and changes in the target segments. Furthermore, it may be fairly easy for a broad-market cost leader to adapt its product in order to compete directly. Finally, other focusers may be able to carve out sub-segments that they can serve even better.

Strategies that I recommend According to Ansoff matrix

Srilankan can develop their service to their customers by expanding in to another country example Maldives Bangladesh and Pakistan because in those countries are developing countries. So Srilankan easily capture the market.

Srilankan has the potential to introduce new technologies to the Airline industry in Sri Lanka.

Srilankan Airlines can Diversify to hotel industry. They can introduce the new airbus A380 to their customers.

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Conclusion

In this assignment I have covered all the objectives according to the scenario. First of all I have explained the mission, vision, the company objectives and core value of the organization, and then I identify the key stakeholders of my selected company Dialog telecom. Then I describe the strategies of the organization that put forward to achieve the competitive advantage onwards the company. Then I have discussed the economic, social and global, environmental aspects of Dialog telecom. Its mean the PEST analysis of the company. Then I have discussed the relationship between the market forces, mean the porters five forces, that its how influence the organization. So I have explained that with some examples. Finally I have explained that what the strategies are I consider, and what the strategies that I will select are, and I evaluate and justified the most appropriate strategy. I specially thanked to our Sir Kasun Dissanayake to give the knowledge to do this assignment. I tried my level best using the knowledge I gained from the lectures. And I would thank for the persons who gave me, supports to do this. There after I thank for my class friends who clarify my droughts when I do the assignment. And finally I thank ICBT to teach Business Strategy well as Personality Development to us and giving an opportunity to get a Degree in United Kingdom. Finally Im certifying that the complete assignment is of my own work. I completed the entire required task to achieve maximum result which would satisfy my hard work and the time spent to complete this assignment.

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