Business Policies & Strategic (1)

1.A.

Marketing Intermediaries-

Market intermediaries are the bodies involved in transacting the product from the producer till the time
it gets purchased by the ultimate consumer can be termed. Market intermediaries can be individuals or
firms. The products keep changing the possession at each level where subsequent transporting and
inventory costs get added. Finally the product gets available at the retail outlet at a certain price.

Though intermediaries pose a challenge to firms when they compete on the prices yet they are
indispensable as a vast distribution network cannot be handled by the company alone.

Importance of Marketing Intermediaries-

A marketing intermediary is the link in the supply chain that links the producer or other intermediaries
to the end consumer. The intermediary can be an agent, distributor, wholesaler or a retailer. These
parties are used in the selling, promotion or the availability of the goods/services through contractual
agreements with the manufacturer.

They receive the products at a particular price point, add their margins to it and move it to the next link
in the supply chain at the higher price point. They are also known as middlemen or distribution
intermediaries.

Types of Marketing Intermediaries

The four types of marketing intermediaries are-

Agents

The agent is an independent entity that acts as the manufacturer’s representative for the buyer. Agents
have possession of the products without actually owning them. They work on commission basis.

Distributors

Distributors are different from wholesalers in that the wholesalers carry many product lines, say Tide
and Surf Excel, but distributors carry only one of complementary lines, either tide or Surf Excel products.
Distributors will carry these products to points of sale and they maintain very close working
relationships with suppliers and buyers.

Wholesalers

Wholesalers purchase product in bulk and resell it. They own the products that they sell. They usually
sell these products to retailers at a profit.
Retailers

A retailer can be independent, like small convenience stores, or they can be supermarket chains, like
Tesco, Walmart, Big Bazaar or Reliance Fresh. They own the products that they stock. The retailer is
usually the last link of the supply chain, reaching products to the end consumer for a profit.

1.B

Classification of Objectives

The classification of business objectives are as follows:-

1) Primary Objectives-

These are known as primary targets because they may be concerned with satisfying the wishes of the
number one stakeholders and consumers. They are the lengthy-time period dreams of the employer.
The primary goals of an agency may be surviving within the opposition, maximizing profit, growing
marketplace percentage, and so forth. These goals also are referred to as “strategic targets”.It shows the
classification of objectives.

2) Secondary Objectives-

These are also called “tactical goals”. Secondary goals are set to perform everyday operations efficiently.
These objectives deal with the issues of wages, repayment, incentives, popularity, and so on. It is one of
the classification of objectives. These are chronic goals and make a right away contribution to the
achievement of the primary targets.

3) Short-Term Objectives-

These goals are set to obtain quick-time period goals. The quick-time period dreams are set for up to
three hundred and sixty-five days or one monetary year. For an organization, fast-term objectives can be
used to increase income, reduce labour turnover, and so on.

4) Medium-Term Objectives-

These targets have a more extended time than the fast-term goals and, for this reason, are broader in
angle. The medium-time period targets are set for 18 months to five years. These goals may be changed
and reviewed on every occasion wished. The medium-term objectives convert into short-term targets
with time. It is the classification of objectives. For instance, they were introducing variations of current
products, modifications in current organizational shape, and so on.

5) Long-Term Objectives-

Long-time period objectives are extensive and inspiring. The duration of lengthy-term targets is more
than five years. These are the classification of objectives. For example, they are diversifying the
enterprise, acquiring or merging a brand new enterprise, worldwide expansion of the commercial
enterprise, and so forth.
6) Financial Objectives-

These goals are associated with monetary benefits. These objectives are a number of the core and main
targets of the organization. The economic goals of an organization may be to maximize income, grow
sales by using 20%, reduce product value, etc. These targets can be short-term in addition to medium-
term.

7) Non-Financial Objectives-

These objectives aren’t related to economic benefits: These goals help the organization to assess the
intangible components of an enterprise together with balance, fitness, lengthy-time period success, way
of life, fee, and so on. Non-financial objectives are included in the classification of objectives. Although
many of such targets are not aligned with sales technology, they, in the end, have an advantageous
effect on the financial elements of the corporation.

2.A.

Strategic approaches guide the development and implementation of activities, and determine the tools,
vehicles, and media mix a team will use to achieve objectives. An organization's manager usually
determines the implementation approaches based on their preferred techniques for adopting a plan.
Some implementation approaches include: parallel, phased, crash, and sequential

2.B

Strategic control is the process used by organizations to control the formation and execution of strategic
plans; it is a specialised form of management control, and differs from other forms of management
control in respects of its need to handle uncertainty and ambiguity at various points in the control
process.

2.C

Outsourcing is a strategic business decision to hire another company or individual to perform tasks,
provide services, or handle operations that were previously done by the company's employees. It can
help companies reduce costs, increase efficiency, and focus on their core operations.

2.D.

Growth strategy is an organization's plan for overcoming current and future challenges to realize its
goals for expansion. Examples of growth strategy goals include increasing market share and revenue,
acquiring assets, and improving the organization's products or services.

2.E

An effective evaluation system can help assess the performance, effectiveness, or quality of a project,
process, individual, or entity. It can be used in many fields, such as business, education, healthcare, and
government.

Here are some characteristics of an effective evaluation system:

Actionable data: Data that can be aggregated to identify areas for improvement and make systems more
efficient.

Technology: Can be leveraged to help with the evaluation process.

Business Policies & Strategic (2)

1.A

As the name implies, a stability business strategy seeks to maintain operations and market size and
position. This strategy is characteristic of small risk-averse firms or firms operating in a very precarious
market that is comfortable with its current position.

An expansion strategy is synonymous with a growth strategy. A firm seeks to achieve faster growth,
compete, achieve higher profits, grow a brand, capitalize on economies of scale, have greater impact, or
occupy a larger market share. This may entail acquiring more market share through traditional
competitive strategies, entering new markets, targeting new market segments, offering new produce or
services, expanding or improving current operations.

Below are common expansion strategies:

Expansion through Concentration- This involves focusing resource allocation and operational efficiency
on one or a select group of business units or core business functions. Concentration might include:
penetrating an existing market with an existing value proposition; developing a new market by attracting
new customers to an existing value proposition; developing a new value proposition to introduce in the
existing market. The benefits of expansion through concentration is that it allows the firm to focus on
areas where it already has operations and a level of competency. It is comfortable to avoid major
changes in operations while employing existing knowledge. This type of strategy can be risky from the
stand point of putting too many eggs in one basket. Changes in the market (price fluctuations, customer
sentiment, new value propositions, etc.) may cause the strategy to be unsuccessful.

Expansion through Cooperation- This strategy entails working closely with a competitor (while
potentially still competing against them in the market). Working with the competitor provides both
companies an advantage that trumps any advantage (or disadvantage caused to the competitor) from
not working together. Working together will generally provide operational efficiency to one or both
competitors or expand the market potential for one or both competitors. Working together may take
the form of consolidation of business units (mergers or acquisitions), strategic alliance (affinity group or
association), or joint venture (loose partnership-like alliance generally used to undertake a project or
enter into foreign markets).

Expansion through Internationalization - This method involves creating new markets for a value offering
by looking outside of the immediate nation. Generally, this option is preferable when there is little room
for expansion in domestic markets.
Internationalization can be carried out through the following strategic approaches: 1) International
Strategy - focusing on offering a value proposition in a foreign country without modification of
differentiation; 2) Multi-domestic Strategy - involves modifying or differentiating a product to make it
attractive or suitable to foreign markets; 3) Global Strategy - focuses on delivering the standardized
value proposition in countries where there is a low cost structure for delivery; 4) Transnational Strategy -
employs both a global and multi-domestic strategy by modifying or differentiating a product in foreign
markets where there is a low cost structure that results in profits from delivering the value proposition.

1.C.

An environmental analysis is a strategic technique used to identify all internal and external factors that
could affect a company’s success. Internal components reveal the strengths and shortcomings of a
company, while external components represent the opportunities and risks. This exists outside of the
company.

Trends and high-level factors are considered in it; another name for this is environmental scanning.

Interest rates, for example, and how they may affect a company’s operations. These analyses can help
businesses achieve attractiveness in their market.

Importance of environmental analysis-

Organizations need to do environmental analysis because it helps them:

Find opportunities: By looking at the outside world, organizations can find new trends and chances to
enter new markets or make new products or services.

Identify threats: It helps businesses find threats to their business, such as new competitors, changes in
regulations, or a slowing economy.

Create effective strategies: Organizations can create effective strategies that are in line with their goals
and objectives when they understand how the outside world affects their business.

Anticipate change: Environmental scanning helps organizations plan ahead for changes in the outside
world and create strategies to deal with them.

Make informed decisions: It helps organizations learn more about the outside factors that affect their
business so that they can make better decisions.

Organizations that want to stay competitive and successful in a business world that is changing quickly
need to do environmental analysis. It helps them take advantage of opportunities, lower risks, and come
up with good plans that lead to growth and success.

2.A.

Micro environment analysis is the study of the elements that directly influence how an organization is
run. These elements include actors and factors in the organization's immediate environment, such as
customers, suppliers, competitors, employees, shareholders, and media.

2 B.
A stability strategy is a corporate strategy that focuses on maintaining a company's current market
position and existing business. It's also known as a "status quo strategy".

2C .

The McKinsey 7-S Model is a change framework based on a company's organizational design and
coordination. It aims to depict how to manage organizational change by strategizing around the
interactions of seven key elements: Structure, Strategy, System, Shared Values, Skill, Style, and Staff.

2D.

A technological environment is the external factors in technology that affect business operations. It
includes physical and social conditions that shape technology development, such as a society's material,
political, legal, and cultural aspects. Social factors like age, gender, race, ethnicity, and culture also
impact technological environments because they affect how different groups access technology.

2E

Environmental analysis is a strategic process that helps identify internal and external factors that may
affect an organization's performance. It can help organizations understand the broader landscape in
which they operate and make strategic decisions