Bangladesh University of Business & Technology (BUBT)

Course Title - Strategic Management

Course Code – MGT504
Assignment on
1. Strategic Evaluation
2. The stage of product life cycle

Submitted To:
Ms. Farhana Islam
Assistant professor, Department of Management
Bangladesh University Of Business & Technology (BUBT)

Submitted By:
Group Name: Shadow
Group Member
SL Name Intake Id Contact number
1 Mir Farhad Chowdhury 48 19202201144 01744473887
2 K.M. Omar Faruk 38 16171201053 01752717567
3 Printha Mahmud 52 20213201057 01985114546
4 Sajida Fariha 49 19203201033 01862301582
5 Tamanna Taluckder Usha 50 20211201011 01614240492

Date of Submission: 4th November, 2021.

Evaluation Of Strategic Management in Business with AHP Case Study:
PARS House Appliance

Case Summary
A new business is simply a collection of ideas. It rests on a set of beliefs that the new
organization can offer some products or services to some customers, in some geographic scopes,
using some type of technology, at a profitable price. As a business grows, owners or managers
find it necessary to revise the founding set of beliefs, but those original ideas usually are
reflected in the revised statements of vision and mission. In this paper, we present the strategies
in which organizations could use to develop resource management and analyzing business
situations. Consequently, the best strategy have been chosen with Analytical Hierarchy process
(AHP). In PARS household appliance Cost leadership was chosen by AHP process and they
decided to focus on this strategy to improve their situation in market.
Introduction

The field of Strategy has evolved substantially in the past twenty-five years. Firms have learned
to analyze their Competitive environment, define their position, develop competitive and
corporate advantages, and understand threats to sustaining advantage in the face of challenging
competitive threats. Developments in the global economy have changed the traditional balance
between customer and supplier. New communications and computing technology, and the
establishment of reasonably open global trading regimes, mean that customers have more
choices, and supply alternatives are more transparent. Businesses, therefore, need to be more
customer-centric, especially since technology has evolved to allow the lower cost provision of
information and customer solutions.
The understanding of demands could solve some of the problems such as physical factors and
personal and social human factors relentlessly businesses are dealing with (Bucki and Suchanek
2012)(Enis 1980)( McCarthy and Perreault 1993).there are more complex aspects on the
social, economic, geography and culture factors (Schiff man and Kanuk 2007) brought
marketing mix and environment into the types of factors.
The complexity of the factors affecting consumer behavior and their changes in the time shows
relations between
external stimuli, consumer’s features, the course of decision-making process and reaction
expressed in choices. As a
result, the survey of consumer’s behavior is complicated for traditional analytical
approaches(Ronge and Schmieg
1971). accordingly, in this paper, we explain and review the business strategies and demonstrate
the strategies that an organization can consider. Then, we could choose the best strategy in the
organization with AHP method. Household industry was chosen for this investigation and the
result of AHP process in PARS house appliance was Cost leadership.
Strategic Evaluation

Strategy evaluation’ is the process through which the strategists know the extent to
which a strategy is able to achieve its objectives. In the words of Professor William F.
Glueck and Lawrence R. Jauch,
“Evaluation of strategy is that phase of strategic management process in which the top
managers determine whether their strategic choice as implemented is meeting the
objectives of the enterprise.”

The need for evaluation of business strategy arises out of the fact that a strategy may fail
during implementation and an early corrective action is to be taken based on the
detailed evaluation report. Decision-makers are also interested in such evaluation
reports for their rewards in case the strategic plans work well.
One may hardly meet with a manager who has never experienced any strategic failure in
his life. Failures are inevitable. The most important thing for a manager is to learn from
such failures. Those who analyze the cases of failure can learn more about how to avoid
failures. They become more cautions, more systematic in carrying out EAD and more
concerned about strategic implementation. In fact, unlucky executives are those who do
not have any experience of failure in their corporate lives.
Business organizations may also fail if no evaluation is undertaken. There are
organizations where the top man refuses to accept defeat and do not carry out adequate
evaluation of the current business strategies. Their decision making process solely
depends on current strategy of the firm. They refuse to deviate from the existing strategy
because of which strategic evaluation takes a back seat for them. Results are mostly
painful. They are forced to quit the organization and their successors take the
divestment decision due to accumulated losses.
Strategies in business

Market Penetration

Some of organizations invest on increasing quantity of their products or services that give them
more benefits. In this strategy, managers focus on advertising and improve product capacity and
other factors to sale their products. It increases the amount of annual sales and consequently,
will improve the position of organization. In the past decade, the scope of utility planning
processes has broadened. Traditionally, electric utility planning consisted mainly of matching
expected customer load growth with new capacity or energy purchases that is made. 1 little
attention was given to demand-side management or to supply resources than utility owned
generating facilities. Integrated resource planning (IRP) which considers demand-side factors,
transmission and distribution, and a wide scale of supply-side factors (Berry 1993). With the
demand from the consumers, the products will seem marketable. However, the organizations
should actively monitor their stock so that the service stations would never have empty stock.
After knowing that their sales are increasing permanently, stock quantity can be increased. The
expectation that the market share can be high could be met if the consumer is very sensitive
toward the price production and distribution cost will decrease if the sales (production)
increases and the competitor cannot compete in a very low price.

Market Development

Market development strategy falls under the category of business growth strategy, and it means
introducing new existing and current products into the new market. It helps companies in the
growing period to identify new opportunities and sell their current products in the new
unexplored market. Or instance, a software house designed a new software product. Now, you
have to find out the users of your products, so that you could target them by offering them your
product. That’s how market development strategy works.

Product Development

Organization that focuses on product or service development, intends to improve its products or
produce new Products. Using this strategy, organization can sell more products to its customer
and can make new chance in market for itself .Ocean spray paid attention to this strategy and
created innovation in the can of juice and made mix potable of some concentrate and nuts. The
new product development (NPD) process consists of the activities carried out by firms when
developing and begin to produce new products. A new product that is introduced on the market
will improve over a sequence of stages, beginning with an initial product concept or idea that is
considered, reformed, tested and started to produce in the market (Booz, Allen et al. 1982).
 Horizontal Integration

Horizontal integration strategy is when a business acquires a related business that occupies the
same stage of the value chain and provides a similar type of value as the business. The acquired
business does not have to be a direct competitor. It may produce a substitute product that serves a
similar need for the customer or end-user. Acquiring the company allows the company to supply
differing products that meet a similar value proposition. Normally horizontal integration happens
through merger with or acquisition of another company. For example, a retail store or chain may
purchase another retail store or chain to expand in its existing market.

Strategic Alliance

A strategic alliance in business is a relationship between two or more businesses that enables
each to achieve certain strategic objectives neither would be able to achieve on their own. The
strategic partners maintain their status as independent and separate entities, share the benefits and
control over the partnership, and continue to make contributions to the alliance until it is
terminated. Strategic alliances are often formed in the global marketplace between businesses
that are based in different regions of the world.

Stability Strategies

The Stability Strategy is adopted when the organization attempts to maintain its current position
and focuses only on the incremental improvement by merely changing one or more of its
business operations in the perspective of customer groups, customer functions and technology
alternatives, either individually or collectively. Generally, the stability strategy is adopted by the
firms that are risk averse, usually the small scale businesses or if the market conditions are not
favorable, and the firm is satisfied with its performance, then it will not make any significant
changes in its business operations. Also, the firms, which are slow and reluctant to change finds
the stability strategy safe and do not look for any other options.
Questions

1. What are the nature of Strategic Evaluation Process?

Answer:
 Nature of the strategic evaluation and control process is to test the effectiveness of
strategy.
 During the strategic management process, the strategists formulate the strategy to
achieve a set of objectives and then implement the strategy.
 There has to be a way of findings out whether the strategy beings implemented will
guide the organizations towards is intended objectives. Strategic evaluation and
control, therefore performs the crucial task of keeping the organization on the right
track.
 In the absence of such a mechanism, there would be no means for strategists to find
out whether or not the strategy is producing the desire effect.

2. What are the needs and importance of strategic evaluation?

 Strategic evaluation can help to assess whether the decisions match the intended
strategy requirements.
 Strategic evaluation through the process of control feedback rewards and review
helps in a successful culmination of the strategic management process,
 The process of strategic evaluation provides a considerable amount of information
and experience to strategists that can be useful in new strategic planning.
3. Who are the participants in strategic evaluation?

i. Shareholders
ii. Board of directors
iii. Chief Executives
iv. Financial controllers
v. Company sectaries
vi. External and internal auditors
vii. Audit and executives committees
viii. Corporate planning staff or Department
ix. Middle level managers.

4. How many steps are in strategy evaluation process?

i. Determine who your key stakeholder are and get their involvement in the
evaluation process.
ii. Describe the strategy you want to evaluate.
iii. Design you evaluation plan and develop an action plan to carry it out obtain
the data you need to answer your evaluation question.

5. What are the process of strategic evaluation?

 Fixing Benchmark of performance

 Measurement of performance
 Analyzing variance
 Taking Corrective Actions
Findings
1. Lack of funding to plan for or carry out evaluation activities or hire an independent
evaluation.
2. Lack of staff to support data collection and evaluation activities
3. Limited time to carry out an evaluation

Conclusion

In this paper, we introduced most recent business policies which organizations use to develop
resource management. In this regard, most important strategies which were studied and analyzed
include: market penetration, market development, product development, horizontal integration,
strategic alliance, stability strategies, competitive strategies, differentiation strategies, and Cost
leadership strategy. It was found that regarding the company situations, those business strategies
should be compared and ranked to help the managers planning for the future. Consequently, for
future work, the best strategy could be chosen with Analytical Hierarchy process (AHP).It has
attracted the interest of many researchers mainly due to the nice mathematical properties of the
method and the fact that the required input data are rather easy to obtain. AHP is a decision
support tool which can be used to solve complex decision problems. Hence, it is proposed to use
it as a tool to determine the best business approach for improvement.

Recommendation

1. Ensure that the most important are in place.

2. Update the measures and projects first

3. Hire the evaluator.

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