ASSIGNMENT #01Course Name: Strategic

Management.Course code: MGT-342

Submitted to

Dr. Mohammad SolaimanProfessor of UITS

Submitted by

Fahima Akter Mahi

ID No: 10430337, Batch No: 33rdDate: 19.02.2013

University of Information Technology & Science (UITS)

Bangladesh

01. a) Define strategy with industry examples?

b) Describe about strategic management process with industry examples?

Ans:- a) Define Strategy

The word “strategy” is derived from the Greek word “stratçgos”; stratus (meaning army) and “ago” (meaning leading/moving).

Strategy is an action that managers take to attain one or more of the organization’s goals. Strategy can also be defined as “A general direction set for the company and its various components to achieve a desired state in the future. Strategy results from the detailed strategic planning process”.

Strategic also be defined as knowledge of the goals, the uncertainty of events and the need to take into consideration the likely or actual behavior of others. Strategy is the blueprint of decisions in an organization that shows its objectives and goals, reduces the key policies, and plans for achieving these goals, and defines the business the company is to carry on, the type of economic and human organization it wants to be, and the contribution it plans to make to its shareholders, customers and society at large.

Strategy may be defined as the theory about how to gain competitive advantages. A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem.

Five Definitions:

a consciously and purposefully developed plan;

a ploy to outmaneuver a competitor

a pattern in a stream of actions, whether intended or not

Strategy

as…

a position defined either with respect to a competitor, in the context of a number of competitors, or with respect to markets; and as.

a perspective, i.e. a certain mindset of how to perceive the world

"Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations".

In the world of business and marketing, “strategy” is frequently used, yet rarely useful. For all of our strategy statements, strategic roadmaps, corporate strategies, launch strategies, innovation strategies, and on and on and on, the ideas that we label as strategy fail to affect meaningful change.

Features of Strategy:

Strategy is a well defined roadmap of an organization. It defines the overall mission, vision and direction of an organization. The objective of a strategy is to maximize an organization’s strengths and to minimize the strengths of the competitors.

In shortly we can say that strategy means some kind of benefits.

Strategy is Significant because it is not possible to foresee the future. Without a perfect foresight, the firms must be ready to deal with the uncertain events which constitute the business environment.

Strategy deals with long term developments rather than routine operations, i.e. it deals with probability of innovations or new products, new methods of productions, or new markets to be developed in future.

Strategy is created to take into account the probable behavior of customers and competitors. Strategies dealing with employees will predict the employee behavior.

Some industry examples of strategy:

01. Now a days Grameen Phone is the market leader in the mobile telecommunication industry of Bangladesh and operating its business all over the world with a subscriber base of about 20.5 million. They are giving us various types of facilities. As we’ve mentioned earlier that strategy means some kind of benefits. So the strategy of grameen Phone is shown below:

<a> The growth rate of grameen Phone is very high.

<b> There's an opportunity to sell bazaar

<c> There's an opportunity to pay gass & electricity bill.

<d> There's an opportunity to transfer money by bkash.

02. Now a days Peninsula Hotel is one of the best hotel in Chittagong. Because the strategy of Peninsula is so good. The strategy of Peninsula Hotel is shown below:

<a> The best business hotel in Chittagong with 122 luxurious rooms like suites, Executive Twin, Super Deluxe, Deluxe.<b> There’s also restaurants, bar, business centre and other business facilities.<c> there’s also Spa, Club21- Swimming Pool, Gym, Sauna & Steam Bath.

Finally, that's Peninsula Hotel is one of the best hotel in Chittagong where customers can enjoy all kinds of Facilities.

03. In our country, Brac University is one of top private universities in Bangladesh. The strategy of BRAC university:<a> A full residential semester for all students at its highly acclaimed Savar campus.<b> Unique English language program for all students.<c> Hostel for female students with transport facilities<d> Rich library with access to online journals.<e> Wide choice of co-curricular activities.<f>  High-speed internet connectivity and video-conferencing facilities.<g> There are Higher Education learning facility.

Strategic Management Processes

The strategic management Process is a sequential set of analyses and choices that can increase the like hood that a firm will choose a good strategic; that is, a strategy that generates competitive advantages. An example of the strategic management process is presented in the following Figure.

Mission objectives

The strategic management process means defining the organization’s strategy. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. Strategic management is a continuous process that appraises the business and industries in which the organization is involved; appraises it’s competitors; and fixes goals to meet all the present and future competitor’s and then reassesses each strategy.

1. Mission:

The strategic management process begins when a firm defines its mission. A firm’s mission is its long-term purpose. Missions define both what a firm aspires to be in the long run and what it wants to avoid in the meantime. The Based on the situation analysis, what should our new business be, in terms of what products it will sell, where it will sell them, and how its products or services will differ from its competitors’?

External Analysis

Internal Analysis

Strategic Choice

Strategic Implementation

Competitive Advantage

Some Industry Example of Mission:

Name of the Company

Mission

1. Dhaka Bank Limited

Dhaka Bank Limited is a private-owned commercial bank in Bangladesh. Dhaka Bank mission is to be the premier financial intuitions in the country providing high quality products and services backed by latest technology and a term of highly motivated personnel to deliver excellence in banking.

2.Nurjahan Spices Limited

In the world of business Nurjahan Spices Limited is only performance and Growth that counts. Nurjahan Spices Limited mission is to perform and to grow and in the process become an entity that an be counted and acknowledge.

3. Bangladesh Commerce Bank Limited

Bangladesh Commerce Bank Limited is committed to fulfill its customer’s needs and become their first choice in banking so that a sustainable growth, reasonable return and contribution to the socio-economic development of the country can be ensured with a motivated and professional work-force.

2. OBJECTIVES:

Where as a firm’s mission is a broad statement of its purpose and values, its objectives are specific measurable targets a firm can use to evaluate the extent to which it is realizing its mission. High-quality objectives are tightly connected to elements of a firm’s mission and are relatively easy to measure and track over time. Low-quality objectives either do not exist or are not connected to elements of a firm’s mission, are not quantitative, or are difficult to measure or difficult to track over time. Obviously, low-quality objectives cannot be used by management to evaluate how well a mission is being realized. Saying the mission is “to make quality job one” is one thing; operationalizing that mission for your managers is another. The firm’s managers need strategic Objectives. What exactly does that mission mean, for each department, in terms of how we’ll boost quality?

E xample of Objectives:

1.Dhaka Bank Limited.

To build up a low cost fund base.

To make sound loan and investment.

To meet capital adequacy requirement at all advances.

To ensure 100% recovery of all advances.

To ensure a satisfied work force.

Objectives are 2 types- <a> External analysis

<b> Internal analysis

<a> External analysis:

The next two phases of the strategic management process- external analysis and internal analysis- occur more or less simultaneously. By conducting an external analysis, a firm identifies the critical threats and opportunities in its competitive environment. It also examines how competition in this environment is likely to evolve and what implications that evolution has for the threats and opportunities a firm is facing. Where as external analysis focuses on the environmental threats and opportunities facing a firm.

<a> Internal analysis:

Internal analysis helps a firm identify its organizational strengths and weakness. It also helps a firm understand which of its resources and capabilities are likely to be sources of competitive advantage and which are less likely to be sources of such advantage. Finally, internal analysis can be used by firms to identify those areas of its organization that require improvement and change.

3. Strategic Choice:Armed with a mission, objectives and completed external and internal

analysis, a firm is ready to make its strategic choices. That is, a firm is ready to choose its “theory of how to gain competitive advantage.”

The strategic choices available to firms fall two large categories: business-level strategic and corporate-level strategic. Business-level strategic are actions firms take to gain competitive advantages in a single market or industry. Corporate-level strategic are actions firms take to gain competitive advantages by operating in multiple markets or industries simultaneously.

4. Strategy implementation:

Strategy implementation occurs when a firm adopts organizational policies and practies that are consistent with its strategy. Three specific organizational policies and practies are partcularly important in implementing a strategy: a firm’s formal organizational structure, its formal and informal management control systems and its employee compensation policies.

Allocation and management of sufficient resources (financial, personnel, time, technology support)

Establishing a chain of command or some alternative structure (such as cross functional teams)

Assigning responsibility of specific tasks or processes to specific individuals or groups

It also involves managing the process. This includes monitoring results, comparing to benchmarks and best practices, evaluating the efficacy and efficiency of the process, controlling for variances, and making adjustments to the process as necessary.

When implementing specific programs, this involves acquiring the requisite resources, developing the process, training, process testing, documentation, and integration with (and/or conversion from) legacy processes.

5. COMPETITIVE ADVANTAGE:

A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.

FOR EXAMPLE:

Facebook has a competitive advantage because most people use its service, rather than adopting because of particular features. Same with iPhone and the AppStore: the competitive advantage is the number of developers in the eco-system,

CONCLUSION:-

The strategic management process is more than just a set of rules to follow. It is a philosophical approach to business. Upper management must think strategically first, then apply that thought to a process. The strategic management process is best implemented when everyone within the business understands the strategy. The strategic management process is a complex one and can only be done by a person who known every internal aspect of an organization and is able to provide information and foresee outcomes of a decision and its alternative. strategic management process is a continuous process. "As performance results or outcomes are realized - at any level of the organization - organizational members assess the implications and adjust the strategies as needed. In addition, as the company grows and changes, so will the various strategies. Existing strategies will change and new strategies will be developed. This is all part of the continuous process of improving the business in an effort to succeed and reach company goals.

2. a. what do you mean by Competitive Advantage?

b. What are the sources of Competitive Advantage?

Described with industry examples.

Ans. a) competitive advantage:

In general , a firm has a competitive advantage when it is able to create more economic value than rival firms. Economic Value is simple the difference between the perceived benefits gained by a customer that purchases a firm’s products or services and the full economic cost of these products or services Thus, the size of firm’s competitive advantage in the difference between the economic value a firm is able to create and the economic value its rivals are able to create.

A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices

Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry. Achieving competitive advantage strengthens and positions a business better within the business environment.

Competitive advantage occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors. These attributes can include access to natural resources, such as high grade ores or inexpensive power, or access to highly trained and skilled personnel human resources. New technologies such as robotics and information technology can provide competitive advantage, whether as a

part of the product itself, as an advantage to the making of the product, or as a competitive aid in the business process (for example, better identification and understanding of customers.)

An example of a competitive advantage might be where two companies such as Square Pharmaceuticals, And Incepta Pharmaceuticals market the same drug, but square ltd is a large well-known company and the other is a small relatively unknown company. Even though both are selling essentially the same product the larger company has an advantage because its well-known and people ask for the drug by its company name because of its wide name recognition. If no real competitive advantage exists in your product, try to focus on your company reputation, your excellent service, your responsiveness and reliability or any other factors than can positively differentiate you from your competition.

When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The goal of much of business strategy is to achieve a sustainable competitive advantage.

b) Sources of Competitive Advantage:

Although there are as many different competitive strategies as there are firms competing, three underlying approaches to building competitive advantage appear to exist at the broadest level. They are

(1) low-cost leadership strategies,

(2) differentiation strategies, and

(3) focus strategies.

These three broad types of competitive strategies have also been labeled generic strategies. All three generic strategies are designed to achieve distinction relative to a rival. I shall attempt to examine how each generic type of competitive strategy can build competitive advantage.

We can show the sources of Competitive Advantage by the following Diagram.

Now sources of Competitive advantage are briefly described below:

<1> COST LEADERSHIP STRATEGIES:

The goal of Cost Leadership Strategy is to offer products or services at the lowest cost in the industry. The challenge of this strategy is to earn a suitable profit for the company, rather than operating at a loss and draining profitability from all market players. Companies such as Wal-Mart succeed with this strategy by featuring low prices on key items on which customers are price-aware, while selling other merchandise at less aggressive discounts.

Low leadership strategies are based on a firm’s ability to provide a product or service at a lower cost than its rivals. The basic operating assumption behind a low-cost leadership strategy is to acquire a substantial cost advantage over other competitors that can be passed on to consumers to gain a large market share. A low-cost strategy then produces competitive advantage when the firm can earn a higher profit margin than results from selling products at current market prices. In many cases, firms attempting to execute low-cost strategies aim to sell a product that appeal to an “average” customer in a broad target market. Oftentimes; these products or services are highly standardized and not customized to an individual customer’s tastes, needs, or desires. A central premise of the low-cost leadership strategy is the following: By making products with as few modifications as possible, the firm can exploit the cost

Sources of Competitive Advantage

COST LEADERSHIP

COMPETITIVEADVANTAGE DIFFERENTIATI

FOCUS

reduction benefits that accrue from economies of scale and experience effects. Low-cost leadership strategies can also flourish in service businesses as well.

Examples of firms that successfully used a low-cost leadership strategy to build competitive advantage include:-

Whirlpool in washers and dryers, Black and Decker in power tools, BIC in ball point pens, Wal-Mart in retailing, Gillette in razor blades, Texas Instruments and Intel in semiconductors, Samsung in color television sets, Sharp in flat-panel screens and LCD technology

<2> DIFFERENTIATION STRATEGIES:

The goal of Differentiation Strategy is to provide products that stand out from competitive offerings. An example is Southwest Airlines, which promotes its no-fee baggage handling as unique from other airlines.

Another strategic approach to building competitive advantage is that of pursuing differentiation strategies. Differentiation strategies are based on providing buyers with something that is different or unique, that makes the company’s product or service distinct from that of its rivals. The key assumption behind a differentiation strategy is that customers are willing to pay a higher price for a product that is distinct (or at least perceived as such) in some important way. Superior value is created because the product is of higher quality, is technically superior in some way, comes with superior service, or has a special appeal in some perceived way. In effect differentiation builds competitive advantage by making customers more loyal-and less price-sensitive-to a given firm’s product. Additionally, consumers are less likely to search for other alternative products once they are satisfied.

Differentiation may be achieved in a number of ways. The product may incorporate a more innovative design, may be produced using advanced materials or quality processes, or may be sold and serviced in some special way. Often, customers will pay a higher price if the product or service offers a distinctive or special value or “feel” to it. Differentiation strategies offer high profitability 10

when the price premium exceeds the costs of distinguishing the product or service.

Examples of companies that have successfully pursued differentiation strategies include :-

Prince in tennis rackets, Callaway in golf clubs, Mercedes and BMW in automobiles, Coors in beer, KFC Restaurant

KFC Restaurant Product differentiation in the fast food industry exists but is not quite high and generally the products are perceived as commodities so their choice largely depends on price and service so the pressure to ensure competitive price and service escalate. Also, switching costs are quite low, as customers do not have to incur any cost for not buying from a firm. This industry’s customers are characterized as highly price sensitive so they can easily switch to a product that is like in quality and service but offered at lower price.  Therefore, rivalry can become high. Competitors have to enter into price and advertising wars to attract customers. However, this usually happens in small franchises who are unable to differentiate their products either on price or quality or the by increasing the product line.

<3>FOCUS STRATEGIES:-

The third generic strategy is known as a focus strategy. Focus strategies are assigned to help a firm target a specific niche within an industry. Unlike both low-cost leadership and differentiation strategies that are designed to target a broader or industry-wide market, focus strategies aim at s specific and typically small niche. These niches could be a particular buyer group, a narrow segment of a given product line, a geographic or regional market, or a niche with distinctive, special tastes and preference. The basic idea behind a focus strategy is to specialize the firm’s activities in ways that other broader-line (low-cost or diffrentiation0 firms cannot performs as well, Superior value, and thus higher profitability, are generated when other broader-line firms cannot specialize or conduct their activities as well as a focused firm. If a niche or segment has characteristics that are distinctive and lasting, then a firm can

develop its own set of barriers to entry in much the same way that large established firms do in broader markets.

The number of examples of companies finding and building by-based focus strategies is growing.

For example, in many parts of the United States, an increasing number of microbreweries have begun operations. These small breweries are designed to brew beer in limited quantities and cater to a specific taste or regional market.

HANDI resta urant focuses on quality and services. will go a long way in making the most of this potentially untapped opportunity scenario. Recognized the need as well as the opportunity which led to the creation of selected cuisine which was in synchronization with our long term objective of making our outlets all over the country.

Conclusion:-

Competitive advantage is the combination of elements in the business model which enables a business to better satisfy the needs in its environment, earning economic rents in the process. Competitive advantage occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors.

3. a) What is SWOT model?

b) Discuss different components of SWOT model with examples.

Ans. a) SWOT Analysis:

SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. 

SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position of the business and its environment. Its key purpose is to identify the strategies that will create a firm specific business model that will best align an organization’s resources and capabilities to the requirements of the environment in which the firm operates. In other words, it is the foundation for evaluating the internal potential and limitations and the probable/likely opportunities and threats from the external environment. It views all positive and negative factors inside and outside the firm that affect the success. A consistent study of the environment in which the firm operates helps in forecasting/predicting the changing trends and also helps in including them in the decision-making process of the organization.

A SWOT analysis is a strategic tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, a plan or some other venture. It itemizes internal and external factors that will either help or hinder a business or individual from reaching a goal, and present them in a logical, easy-to-understand format. SWOT analyses are typically drawn in a quadrant format, with internal factors in the top two boxes, and external factors in the bottom two boxes. Based on the items in your SWOT analysis, you can formulate an action plan

A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.

The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan:

SWOT model means:-

S = Strengths: characteristics of the business or project that give it an advantage over others.W = Weaknesses: are characteristics that place the team at a disadvantage relative to others.O = Opportunities: elements that the project could exploit to its advantage.T = Threats: elements in the environment that could cause trouble for the business or project.

SWOT Analysis provide information that helps in synchronizing the firm’s resources and capabilities with the competitive environment in which the firm operates.

SWOT Analysis Framework

Environmental Scan

          / \           

Internal Analysis       External Analysis

/ \                  / \

Strengths   Weaknesses       Opportunities   Threats

|

SWOT Matrix

The SWOT Matrix:

A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm's strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity.

To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below:

SWOT / TOWS Matrix

  Strengths Weaknesses

Opportunities S-O strategies W-O strategies

Threats S-T strategies W-T strategies

S-O strategies pursue opportunities that are a good fit to the company's strengths.

W-O strategies overcome weaknesses to pursue opportunities.

S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats.

W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats.

Identification of SWOTs is important because they can inform later steps in planning to achieve the objective

b) different components of SWOT model :-

SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it involves a great subjective element. It is best when used as a guide, and not as a prescription. Successful businesses build on their strengths, correct their weakness and protect against internal weaknesses and external threats. They also keep a watch on their overall business environment and recognize and exploit new opportunities faster than its competitors. Different components of SWOT model are described below:-

The SWOT analysis does not cover the entire business, just the factors that may influence their ability to introduce a new product.

To get the most out of the SWOT, they have made specific statements in each category. For example, rather than simply list 'competitors' as a threat, they have included specific details about how their competitors are a threat.

Once you have read through this example SWOT analysis, you can delete the entries that do not relate to your business, and type your responses to build a SWOT analysis for your business.

International Environment

Strengths (S) Weaknesses (W)

* Excellent sales staff with strong knowledge of existing products

* Good relationship with customers

* Good internal communications

* High traffic location

* Successful marketing strategies

* Reputation for innovation

* Currently struggling to meet deadlines -

too much work?

* High rental costs

* Market research data may be out of date

* Cash flow problems

* Holding too much stock

* Poor record keeping

External Environment

Opportunities (O) Threats (T)

* Similar products on the market are not as reliable or are more expensive

* Loyal customers

* Product could be on the market for Christmas

*Customer demand - have asked sales staff for similar product

* Competitors have a similar product

* Competitors have launched a new advertising campaign

* Competitor opening shop nearby

* Downturn in economy may mean people are spending less

Strengths:

Strengths are the qualities that enable us to accomplish the organization’s mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. These are what you are well-versed in or what you have expertise in, the traits and qualities your employees possess (individually and as a team) and the distinct features that give your organization its consistency. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty.

Examples of organizational strengths are huge financial resources, broad product line, no debt, committed employees, etc.

A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include:

patents strong brand names good reputation among customers cost advantages from proprietary know-how exclusive access to high grade natural resources favorable access to distribution networks

Example Of Strength:  

SWOT Analysis of Grameen phone Ltd.

Grameen phone widely known as GP, is the leading telecommunications service provider in Bangladesh. With more than 32 million subscribers (as of June 2011), Grameen phone is the largest cellular operator in the country.

Grameen phone has the best ownership structure in the telecommunication industry in Bangladesh. Telenor is one of the largest companies, which is operating in different countries around the world. They are giving us various types of facilities.

There are many strength of Grameen Phone. Strength of Grameen Phone is Shown below:

a) Market Leader:Grameen phone is the first organization in Bangladesh, which has

reached to the general people. Though Citycell had started their operation before hand, but they were unable to reach the general people. So, the people are being used to with Grameen phone. This is a huge advantage of Grameen phone.

b) Network Availability:Grameen phone has the widest network coverage and a large number of

BTS station (Tower) all over Bangladesh. That’s why the company can provide better connectivity in most of the area of the country.Brand. 

c) Financial Soundness:Because of effective strategic planning, Grameen phone is able to earn a

healthy amount of revenue, which gives them financial soundness.

 d) Skilled Human Resources:All the stuff, which are related to Grameen phone are skilled and

effective in their own job responsibility. The reason behind this is the Human Resource Department of Grameen phone follows ethical strategy to recruit new employees.

e) Effective Support Organization:Grameen phone has shared the idea from the employees of Bangladesh

Railway and Grameen Bank, who are experienced and able to provide precious guidelines for the operation of Grameen phone.

f) Easy Access to the Widest Rural Network:

Through the help of Grameen Bank, this was easier to Grameen phone to reach the rural area of Bangladesh.

g) High Ethical Standard:To ensure quality of service, Grameen phone is strict to follow its ethical

standard.

 

Weaknesses:

Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet. Weaknesses in an organization may be depreciating machinery, insufficient research and development facilities, narrow product range, poor decision-making, etc. Weaknesses are controllable. They must be minimized and eliminated. For instance - to overcome obsolete machinery, new machinery can be purchased. Other examples of organizational weaknesses are huge debts, high employee turnover, complex decision making process, narrow product range, large wastage of raw materials, etc

The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:

lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels

In some cases, a weakness may be the flip side of a strength. Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength that competitors do not share, it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment.

Example of Weakness:

Weakness of Grameen phone are describe below:

a) Cultural Gap:In Grameen phone management, employees from different countries are

existed. Suppose, CEO is a Norwegian, Chief Technical Officer is Indian and many more employees come from different countries. That’s why sometimes there may be lack of understanding due to cultural gap.

b) Many Men Many Minds:

Sometimes different ideas may create problem. In Grameen phone, this is highly encouraged to apply new strategy for better performance. Sometimes, it may create problem because employees are used to with previous strategy.

c) Complicated Pricing Structure:

Grameen phone has lots of products. The pricing of these products and their billing policies are different which also difficult for a user to understand.

d) Incomplete Message through Promotional Activities:

Most of the time the advertisements of Grameen phone have no clear appropriate messages. Not only that, most of them are also so confusing to understand. As a result, subscribers get the wrong meaning of what has been said to them.

e) Problem Contained Offers:

Recently almost all of the new offers of Grameen phone are having some technical problems. Either they are not working at all or part of the services of those offers is disabled. Moreover, Grameen phone is also delaying to solve these problems which are only raising the dissatisfaction level of its subscribers.

f) Lack of Harmony among SBUs:

Intercommunication among various departments is little bit weak. The reason behind this, there is no exchange program for employees to work among various Strategic Business Units (SBUs).

Opportunities:

1. Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable. Organizations can gain competitive advantage by making use of opportunities. Organization should be careful and recognize the opportunities and grasp them whenever they arise. Selecting the targets that will best serve the clients while getting desired results is a difficult task. Opportunities may arise from market, competition, industry/government and technology. Increasing demand for telecommunications accompanied by deregulation is a great opportunity for new firms to enter telecom sector and compete with existing firms for revenue.

The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include:

an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers

Example of Opportunities:

opportunities of Grameen phone are describe below:

a) Economic Growth of Bangladesh:

The economic growth of the country will increase the expansion of telecommunication industry. From 1995 to 2006, there is a huge change in telecommunication sector.

b) New and Better Interconnect Agreement:

Grameen phone is going to have agreement with T&T to have better communication from land phone. The organization has agreements with other operators like Robi, Citycell, Banglalink to have better internal connectivity.

c) Increasing Demand for Telecom Services:

The market of telecommunication is expanding. So, this is easy for Grameen phone to achieve the major portion of expanded market because of its leading position.

d) Increased Cross Boarder Communication:

As international activities increased in the country, people need the connectivity not only within the country, but also out side of the country. So, the market for outside of the country is also expanding.

e) Declining Prices for Handsets:

Few years ago the people from low income group could not afford mobile phone services due to the high price of handsets. Now the price of handsets has decreased and the low income people want to get connected through mobile phone.

f) New International Gateway:

As BTTB has established new gateway to connect internationally, this is easy for mobile phone operators to provide services of ISD call and international roaming.

g) Flexibility of Mobile Phone:

Communication through mobile phone is popular; because, land phone connection between intercity is relatively costly. Mobile phone is also easier to carry and because of its lower cost and easy portability, people are getting more dependent on mobile phone than land phone. So, there is a chance to achieve more subscribers and more market share.

Threats:

Threats arise when conditions in external environment jeopardize the reliability and profitability of the organization’s business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. When a threat comes, the stability and survival can be at stake. Examples of threats are - unrest among employees; ever changing technology; increasing competition leading to excess capacity, price wars and reducing industry profits; etc.

Changes in the external environmental also may present threats to the firm. Some examples of such threats include:

shifts in consumer tastes away from the firm's products emergence of substitute products new regulations increased trade barriers

Example of threats:

Threats of Grameen phone are describe below:

a) More Rigid Government Regulations:

Government is becoming restricted for taking away currency from the country. So, foreign companies are threatened because they may have risk to back their investment to the country. The government also put restriction for work permit of foreign employees.

b) Upgraded Technology Used by Competitors:

New mobile phone operators like Banglalink, Airtel are establishing their channels with latest technology, where as Grameen Phone is using the stations which are five years old. So, this is one of the disadvantages for Grameen phone.

c) Political Instability:

Political instability is another threat. With the change of Government, policies are also changed. So, this is difficult for any multinational organization to cope with new policies.

d) Devaluation of Taka:

As the investment occurs in foreign currency, that’s why the devaluation of Taka decreases profit from financial point of view.

e) Risky Position of Valuable Resources:

The organization has a large number of BTS stations which are spread all over the country. Anyone can make damage to these BTS and this is also difficult to arrange proper security for these stations.

f) No Cooperation from Government Agency:

BTTB does not want to provide better services to other operators, because, it wishes to remain competitive.

Conclusion:

A SWOT analysis is a strategic tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, a plan or some other venture. It itemizes internal and external factors that will either help or hinder a business or individual from reaching a goal, and present them in a logical, easy-to-understand format. SWOT analyses are typically drawn in a quadrant format, with internal factors in the top two boxes, and external factors in the bottom two boxes. Based on the items in your SWOT analysis, you can formulate an action plan.