LD7161 Assignment Sample - Strategic Management

LD7161 Assignment Sample – Strategic Management 2022

Introduction

Behind every successful organization, a pre-planned strategy is made to survive in its respective field. Every company like Jio and BSNL has its management policy of taking strategy to let their freak flag fly to compete with others. In this paper, the data would show different strategies to have in different companies like Jio and BSNL and the effect on the company’s margin of profit. Whenever a push comes to shove then a company releases for a change to its strategy to save itself from being null.

In the growth of a company, the management should presume the concepts to take before launching a product to the market. The strategies with the theories and their analysis will help the company to move to the top. The management of Jio and BSNL both needs to find out their flaws in the system to make more improvements.

Moreover, a complete case study is needed to think about what should be the next step to make. A hypothetical conclusion from the extraction of concepts, theory, and its evaluation should be needed to have a preconceived notion about what the company is going to face.

Main Body

Concepts, theories, and   elements

There are numerous theories in the field of management, which can be applied here. This will help us somewhat understand the reasons behind such varied policies of Jio and BSNL. The profit maximization theory has influenced the business decisions of Jio. As per Sullivan et al. (2018), however initially, it had entered the market through predator policy.

Whereas BSNL followed survival and contingency-based theories. This is quite an old company but it is gradually adapting itself to the changing scenario. This has been done by BSNL to be able to stay alive. Thus, this approach can be justified by the contingency model. The resource-based approach and human resources theory can also be applied as BSNL has an excess of staff being paid a lump sum salary.

Strategic management is a procedure of making decisions and planning which leads to developing objectives of the individual organization. Strategic management can express the decision-making plan, for that case, the individual organization can develop its strategic position (Bagdadli and Gianecchini, 2019). It helps the future stability and durability of the individual business organization.

After that, it helps to increase the profitability of the business organization. Apart from that, it helps to increase the capabilities, responsibilities, and motivation of the employees of the particular business organization. As argued by Demir et al. (2017), employees, it is one of the most satisfying subjects for improving the performance of the individual employees. A strategy is defined as a long-term plan for a particular business organization that helps to overcome challenges and difficulties.

After that Human relation theory, this theory was created by Elton Mayo who led the experiment design to develop the productivity for human relation behaviour. The theory only focused on improving the working condition of the individual business organization (Carless, 2019). After that, the theory is mostly evaluated to test the changes of the performance improvement.

Apart from that, the theory is mostly focused on trying to track the performance of the business organization after applying this concept. As argued by Demir et al. (2017), after these experiments employees are more motivated than before and after that, they are voluntary by their attention.

After completing this experiment they realize they are valuable and worthy for the business organization. With the help of different theories, they are becoming a part of motivation and better performers of the business organization.

System management theory is one of the most vital and virtual parts of every business organization. It helps to develop the new business strategy in the organization. Generally, this theory shows off the business structure of multiple elements that work similarly for larger system functions of the individual business organization (Picciano, 2017).

The success of the organization always depends on unity, interdependence, and interrelation between all the systems. According to the theory, employees are the most vital components of the company and the different workgroups and the business units. With the help of these elements, different organizations are achieving their goals and the targets that improve the performance of the individual business organization.

According to this theory, managers are to describe the patterns and events in the business organization to think out a better management approach. They need to expand their work together to ensure their goals and success. System management theory is one of the most vital part of the every business organization.

Apart from that, it engages the determination of the objectives of the organization, after that involves the objectives which are good for a business organization. Apart from that, strategic management helps to take financial and nonfinancial decisions of the business organization. It helps an organization and its leadership to think about the future ideas of some difficulties and problems (Sudiardhita et al. 2018).

Strategic management helps to make a direction for the employees of the business organization. Once the Strategic Plan, effective market management has gone correctly then an organization can be profitable on a day-to-day basis. It helps to increase the productivity or performance of a particular business organization. The strategic management concept has to be a clear understanding of its vision should be clear for future difficulties.

Strategic management helps to make logical decisions and different types of good ideas for the business organization that help to increase the motivation power of the employees. This policy helps the business organization to gain different types of advantages such as improve market share and develop profitability (Täuscher and Abdelkafi, 2017).

Strategic management also develops the effective communication of the particular organization. In organizational culture, effective communication plays a different and important role in the strategic management process. It helps to make new business decisions for the employees to ensure them the strategic plan.

Apart from that, a strategic management plan helps to deal with the different types of situations such as good and bad. A good strategy always properly maintains the organization and work environment of the business organization. Strategic management is also more responsible for both short-term and long-term competition.

Properly managing an organization depends on the employees’ behaviour. There are some theories such as Porter’s generic strategies according to Porter generic strategies are cost leadership, focus, and differentiation. As argued by Bagdadli and Gianecchini (2019), the theory divides the focus into two different parts, cost focus and differentiation focus.

Cost focus is described to organizations who want to develop the lower cost advantage but within a small market part. On the other hand differentiation focus strategy is the planning where a particular organization or company focuses on the narrow market part.

After that, it helps to make sense between the employees and the individual business organization. It is the most vital part of every organization that helps to develop the performance of the company (Taylor et al. 2018).  This business policy is generally used to gain the goals and objectives for the long term and short term basis of the organization.

The strategic management process helps to make proper dissension for the employees. It is the process from which the managers can realize how to properly maintain an organization. After that, if any organization is maintained properly and most of the decisions are applicable for the low level of the employees then it increases the motivation of the employees. For that reason, the profitability and the performance are developing day by day.

In this subject, the greatest responsibility for developing the organization is the manager of the organization, if they want to maintain the performance of the company they make sure that all the circumstances are thoroughly maintained by them (Taylor et al. 2018).

The smooth performance of the organization depends on the decision of the higher authority. Apart from that, strategic management theories are a gathering of different types of ideas that consult the general rules of the organization.

Case study

Nowadays for the growth of any industry, the companies like private sector Reliance Jio Infocomm Limited and public sector BSNL follow many strategic management elements. Reliance Jio Infocomm Limited is the largest telecommunication company in India. As per the opinion of Bailey et al. (2020), the company uses the strategy of AARRR for the growth of the organization.

In the strategy of AARRR, there are five key elements to help an organization achieve success such as acquisition, activation, retention, referral, and revenue. In the segment of acquisition, Jio offered to the customer’s free services for 3 months and it helped the company to acquire customers. As a result, there were approx. 16 million subscribers within one month (Gainanov et al. 2017).

In the element of activation, Jio provided unlimited calling and unlimited 4G data at high speed. In retention, Jio extended their free services of 3 months to the customers in the time of New Year, 2017.

In just 2 years, Jio gained approx. 200 million subscribers and the company grew with the positive review and experiences of the users. Jio sells their phones at a very low cost that was a major factor for the growth of the organization (Papke-Shields and Boyer-Wright, 2017).

The strategy of digital marketing in Jio was brilliant and on Instagram, it has almost 960k followers. The organization always focuses on the experience of its users and analyses their objections and queries (Phornlaphatrachakorn and Na-kalasindhu, 2020). Jio uses superior technology for growth as Jio had Volte and it was able to handle voice calls across the support of data.

Bharat Sanchar Nigam Limited follows many formulations of strategy for growth such as clear technology and customer orientation strategy. It provides internet connection and telecommunication to its customers such as mobiles, internet, Bharat fibre, wing services, IP services, broadband, and landline (Shukla and Roopa, 2017).

The goal of the BSNL strategy is to retain the customers by enhancing the services and advanced technologies. Being state-owned, BSNL always ensures that every section in the country can buy telecom systems. For that reason, the price of BSNL products is low and reasonable. As stated by Sullivan et al. ( 2018), with the competition of other telecom companies BSNL always tries to rebuild their structures by taking several steps such as a new logo, easy payment services, new schemes, etc.

They use their slogan for promotion as “Connecting India, Faster”. They always try to give proper customer service as they have enough service centres across the country (Shukla and Roopa, 2017).

BSNL should work on the strategy of promotion and should update the strategy. The government backs BSNL and it has vast experience across the country (Teece, 2019). BSNL has strategic alliances with hardware, IT companies, and it helps for the growth of the organization.

The section promoting BSNL uses many sportspersons and actors such as Deepika Padukon, Mary Kom, and Priety Zinta and this helps in promoting. BSNL has the coverage of an excellent network across the country and with the help of that, the organization can retain the customers. As per the opinion of Vats and Kumar (2017), it has approx. 90 million subscribers, vast experience, and brand loyalty.

The organization BSNL has a flexible process in registering so that the customers can register with BSNL. As the company has numerous customer services across the country, customer service providers can provide proper services and guidance to customers. For the growth of the organization and providing proper services in 2009, BSNL has signed a contract with Aircel (Mbaskool.com, 2017).

In the strategy of using advanced technology, BSNL is providing accurate services. There is approx. a 65% market share and is the largest GSM operator in the growing market. With new schemes or plans, the organization can retain its customers. Currently, BSNL is focused on improving the network of telecommunication to achieve more subscribers.

In the business strategies, BSNL is using their old software in providing their services. On the other hand, Jio is updating their software in providing their networks. With the help of updated software, the workers of Jio can analyse the queries of its customers more effectively. Through the plan of Jio Prime, the authority can retain its customers.

LD7161 Assignment Sample - Strategic Management

The major strategy of Jio was providing free services including 4g speed data and unlimited calls, enabling the organization to acquire a huge number of subscribers (Shukla and Roopa, 2017). The company has ambassadors like Amitabh Bachchan and Shahrukh Khan who helped the organization in promoting.

It has advanced technologies and across the country, it covers almost 22 circles. Jio offers Jio apps on the phones with a huge range of elements such as games, shopping, movies, chat, etc.

There are many difficulties in growing an organization and becoming successful. With the help of the strategy AARRR including 5 key elements such as acquisition, activation, retention, referral, and revenue, Jio was able to achieve subscribers (Iide.com, 2021). As BSNL is backed by the administration of the country, the price list of its products is very low and reasonable.

It helps BSNL achieve its subscribers and retain its customers. Through producing new schemes, helps the organization for growth and increasing the number of subscribers (Papke-Shields and Boyer-Wright, 2017). However, the organization should update its software and should be customer-focused. There are almost 20 million subscribers in BSNL.

The organization BSNL is focusing on the improvement of internet service to retain customers. In the strategy of pricing, it provides a cheap rate in calling services to its subscribers. BSNL authority provides special offers and specific discounts to its old customers or the high usage customers. BSNL also provides the services like lifetime cards and that helps the authority to be connected with the users (Papke-Shields and Boyer-Wright, 2017).

Through the help of numerous customer service centres across the country, it helps to retain its old customers. The strategic management plan or elements are always important for the growth of any organization.

In the telecommunication world, Jio hovered the market by providing free services to everyone and this was a strategy in playing with the human psychology of the normal people for a business. As cited by Agrawal and Agrawal (2019), the strategy of completing every needed action to have a SIM card in the home called the attention of the whole country.

There is a big brain behind the strategy to make and for that, the situation gets better day by day. The monopoly could come if Jio stayed like this and the market got crushed down. The decision-making in the strategic plan to be made by Jio wowed everybody to have a service like that which still no company could think of. In the field of telecommunication, Jio sets a trend, and to say everyone now follows it.

The marketing policy it takes is also grabby to the customers as they use referral methods to advertise its product, unlike the others. A company thinks today about what it is going to achieve in the future and for this thinking the management of Jio needed to study human behaviour.

According to the psychology they innovated something new, the free service was the attraction and giving the net connection and the call facilities were giving the customer a reason to be habituated and obsessed with the network. By their prediction of time, they achieved their target and a successful strategy was made. Volte was the step that made Jio to the zenith in its field as well as it is one of the kingpins.

Jio is a game-changer and it knows how to manipulate the characteristics and get a solution out of a situation to take a step more effectively (Mayilsamy and Ranjitha, 2021).

Jio was the odd among the evens as when all companies tried to reconstruct their product then Jio launched its product with extra eye-catching facilities. According to Pavithra et al. (2018), the cost was incredibly unique compared with other companies because Jio wanted to hack the market. It almost united so many users under the same roof.

Jio used a combined strategy of starting so many outlets in every place to facilitate the customer from facing problems (Teece, 2019). They assumed the customer psychology of giving every facility as handy as air to breathe to satisfy the base of the whole system. The availability of the network of Jio surplus BSNL as the customer did not want to keep back in BSNL.

In the management technology, Jio wants to secure the summit, and to do so they take some management processes which could magnify the profit margin. Right now, Jio is prevailing in the field of the telecom industry with the highest rating of its service. As per the opinion of Andersson and Chapman (2017), there are some predetermined stages in which Jio invested and invests it’s time to make more profit in the long run.

The journey of the BSNL was good according to its time to launch but right now this telecom company suffers a lot just to keep it from complete annihilation. The theories and concepts are taken to BSNL just to be as it is without thinking of the profit as it is a public sector and it cannot be doomed. This telecom fights for itself to live for the employee as the survival matters with continuation to work at its desired.

Hypothesis

The Strategic Management policy of any industry helps it stay relevant in this competitive world. However, Strategic Management is a very broad concept and needs to be broken down for its proper functioning in an organization. Each subdivision of the organization needs to focus upon its theory and connect it with the strategies of the other divisions so the organization runs smoothly.

According to Tierce (2019), the top level of the organization will first formulate the business strategy, which will be followed by the operations division to make an operational strategy.

Business Strategy

This outlines the process and procedures, which are followed by a business firm to launch its product. It clearly defines the basic strategy that a firm will undertake before the launch of any of its products, services, or both (Wang et al. 2020).

Operational strategy

It formulates certain achievable plans based upon the business strategy. It helps an organization to set up various short-term goals to meet the business’s strategic goals in the end.

Transformational strategy

Transformational strategy is not an absolute requirement for an organization. It becomes useful only when an organization is looking to change some of its products or structure.

Thus, it can be said that the telecommunication companies also follow this strategy to hold on to their positions (Imbug et al. 2018). Companies like Jio and BSNL that we are discussing here are constantly making, remaking and adopting, readopting themselves with changing strategies required today.

Harold Mintzberg quite early in the year 1987 developed the 5P approach to make a suitable strategy for any business. He believed that various business houses could easily evaluate themselves if they tried to analyze their business through the above approach.

Plan

This is the automatic thing to do before starting a business. This is generally arrived at through various brainstorming sessions.

Ploy

By this strategy, firms get advantage by destroying others. Here the analysis is however done through numerous stages. First, a scenario analysis needs to be done to understand the present condition of the business. Then the prospects are clarified through a future analysis. Lastly, a game plan is needed to chalk out the nature of the competition and prepare accordingly.

Pattern

Sometimes rather than making an intentional choice the organizations like to adapt the way of the successful one.

Position

This means the situation of a firm or its product in the market and if it can derive a competitive advantage.

Perspective
The perspective with which the different business houses work also influences its policies. Jio has a different approach than BSNL.

The telecommunication sector is a buzzing sector of today is fast pacing world. The people who are constantly on the move because of the nature of their work hugely depend upon their internet and service providers. According to Hapsari et al. (2020), people these days do much of their work through their phones and laptops.

Therefore, they cannot almost do anything without the constant support of their service providers. Thus, a good strategy can create many opportunities, even unforeseen ones, for any good company in this industry.

The companies that we discuss here had adopted two different approaches to access the market. Thus, they now stand out in two different positions in the competition. Jio, being a private sector company, had a different vision than BSNL, which is a public sector company (Pham, 2020). They thus had formed their respective different strategies accordingly.

Jio is a comparatively new company that has been successfully able to wipe out many of its competitors. Jio’s AARR strategy has brought profits for it in leaps and bounds. Acquisition, Activation, Retention, Referral, and Revenue has helped Jio capture the greatest share of the market.

According to Kukreja and Ajagaonkar (2020), Jio has used Mintzberg’s Ploy model successfully to eliminate others from the game. Therefore, it can be said that the future analysis model that has been adopted by Jio was extremely successful. Jio focused mainly on capturing as many customers as possible.

The scenario of BSNL is somewhat different. BSNL (Bharat Sanchar Nigam Limited) is currently under the holding of the Government of India. Thus, the strategic policy of BSNL also has not just profiteering motives but also certain welfare policies within it.

The majority of the customers of this company belong to rural areas. Besides, it also provides different plans for people of different income groups.

Therefore, if we see the business policies of these two companies together we can understand there are many key differences between the two. When Jio came into the market, it applied the predator policy whereas BSNL is evolving with the times.

BSNL has come up with the Connecting India scheme to spread internet accessibility. Jio however tends to keep a hold upon its huge customer base through varied but costly prepaid schemes (Amin et al. 2019).

Thus, it can be said, without a doubt, that as the two companies see their future differently it will bring different results for them. The need of the hour is to make an analysis of the different scenarios that are getting more prominent in the Indian Telecommunication sector.

Our analysis should be in a systematic module to understand what the businesses are aiming at. This industry is one of the fastest growing ones and has huge opportunities. However, these opportunities need to be harnessed by the firms at right times.

Conclusion

Based on the above discussion it can be concluded that Jio has better management skills to deal with the obstacles compared to BSNL. BSNL is about to be extinct from the market but still tries to be a sufferer not as a competitor but as a member of a long race. In Jio there are some flaws in the mechanism that can affect the customer’s retention.

Jio planned everything properly but the execution was somehow in less control as the project was big enough though. In the system management, the strategy to impose on the customer should be effective enough that after successfully distributing and having outlets it gains less interest.

The big brain is always there to explore new hackings to the common life by launching ken speckle offers. As every company in a development phase faces both the up and downs Jio is not differ from them.

Jio should presume the upcoming scenarios which can shake the whole skeleton and make advanced planning to be in the boulevard of success alone. The employee should be given more attention for the better upliftment of the company.

The public sector i.e. the BSNL lies like an abandoned child who has no clue where to go. In BSNL the government should give its investments if it wants to give a new aspect in its field and to rise again. A gaff to puff up the business by making perfect planning should be taken by the management to be an apogee.

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