POKHARA UNIVERSITY

                                                   Semester : Spring

Level : Bachelor                                                                                     Year      : 2018

Programme : BBA/BBA-BI/BHCM/BHM/BBA-TT                                Full marks : 100

Course : Strategic Management                                                         Pass marks : 45

                                                                                                            Time         : 3hrs

Candidates are required to give their answers in their own words as far as practicable.

The figures in the margin indicate full marks.

                                                          Section "A"

                                           Very short Answer Questions                                    10*2

Attempt all the questons.

1. define benchmarking.

2. What is annual objective?

3. List out any two methods of differentiation strategy.

4. Draw a strategic group map of any industry you like.

5.  Make short note on SUB structure.

6. Mentionn any two  roles of leadership in strategy implementation.

7. Explain in brief strategy and levels involved in it.

8. Ecucidate strategic intent.

9. Define resource allocation and budgeting.

10. Illustrate financial objectives and strategic objectives.

                                                           Section "B"

                                           Descriptive Answer Questions

Attempt any six questions                                                                             6*10

11. How do you explain a well defined strategy and its close linkage for achieving the organizational goal ? Explain.

12. choose an industry in your native town which you would like to compete. Use the five forces model of competitive analysis to explain why that industry is attractive to you.

13. Explain the concept of GE mine cell matrix. How is the concept of GE grid helpful to manage the portfolio?

14. Explain in brief the different types of organizational structure for strategy implementation.

15.What do you mean by strategic control? How does it differ from operational control ? Explain with illustration.

16. How is a firm can get cost advantage from well-defined value chain analysis? explain with example.

17. Differentiate between operationalization and institutionalization of strategy. Both operationalization and institutionalization of strategy are necessary for proper implementation of strategic explain.

                                                         Section "C"

                                                      Case analysis

18. Read the case situation given below and answer the questions that follow:

                            Tesco Became the UK's Biggest Retailer

Tesco is a famous Uk supermarket chain that currently operates in 11 different countries, becoming one of the world's largest retailers.Despite its gargantaun size and success, Tesco came from humble beinnings.Its founder, Jack Cohen, bought a small plot of land in North London with the idea of selling surplus groceriess for a pofit. In the 1970s, supermarkets began to revolutionise the wat people shopped, and Tesco initiated a massive expansionary strategy, opening stores throughtout England. In the 1990s, when competition in the industry was heating up, Tesco impletmented several successful business strategies that effectively cemented its position at the top.

1. The Tesco club card

The Tesco club card offers the cardholder a variety of benefits; the main one being a rewards system where customers collect points for every purchase. when enough points have been accumulated, these points can be exchanged for cash vouchers which can be used in-store. This rewards system is a tried-and-tested way of cultivating brand loyalty. To accure future savings, customers are incentivised to shop exclusively with Tesco.

In fact, the Tesco club card scheme was so successful tat it helped Tesco overtake its closet rival, sainsbury's. As such, Tesco became the uk's largest food retailer. The tesco club card also allows customers to keep track of their purchases through their online account. In turn, Tesco is able to monitor and cater to their customers' preferences. Tesco has a team of analysis who routinely study its customers' behaviours by examining the data collected by club card . This data is then used to discern latest consumer trends, thereby allowing Tesco to create innovative products and advertising campaigns that are based on their customer's chanaging tastes and preferences.

Tesco's success is synonymous with the club card scheme. A conventional rewards system ha proven to be extremely successful in cultivating brand loyalty, especially when it comes to necessities. The club card scheme also creates an invaluable database of information that Tesco can use for market research, to inform the latest innovations.

2.' venture brands'

With eyes on a global brand strategy, Tesco, with its extensive market research and club card database, made a calculated move to create venture brands that sold products lacking in the market. some of "TEsco's venture brands include their famous chokablok ice cream, Yoo Yoghurt abd Nutricat  cat food. The ultimate aim for these venture brands is to create products that are dissociated with the tesco brand name and can be sold in non-competing retailers. Many of these venture brand products are branded as " premium products", and have enjoyed success in competing against other premium brands. As Tesco owns these venture brands, it can make their products exclusive only to Tesco stores, thus creating an aura of exclusivity and increasing brand loyalty.

As the biggest Uk supermarket retailer, Tesco benefits from access to suppliers and market information. By diversifying and creating venture brands that people won't  necessarily associate with Tesco, the company instanly creates new and exciting brands that will spead via word-of-mouth.

3. Brand Guarantee

After a period of crisis in late 2014, Tesco launched the Brand Guarantee scheme in 2015. The scheme promised to refund customers if a branded basket of ten or more products were found to be more expensive than those sold at their rivals' stores . On their bills, customers would receive the price differential between the amount they paid and what they would have paid at a rival store. To ensure transparency, Tesco engaged an independent agency to check the prices at rivel stores daily. The Brand Guarantee scheme was launched after receiving feedback from shoppers that its previous price match vouchers on their subsequent shopping trips. Matt Davies, CEO of Tesco Uk and Ireland said " with Brand Guarantee customers will never  lose out on their branded  ahop by getting money off their bill at the till."

Tesco keeps an open channel of communication with its customers, allowing them to easily submit feedback on its  services through an online survey. Tesco takes customer feedback seriously and is constantly improving its services based on what customer's value. the Brand Guarentee is one such example that not only helps to maintain brand loyalty, but also sends a strong signal to customers that Tesco is listening and is there to help.

4. Social media presence

Tesco actively engages social media through its official facebook and Youtube accounts. Tesco's Facebook page has garnered more than 2,000,000 likes, and its most popular Youtube video has close to 2,000,000 views. Tesco's facebook timeline is regularly updated with seasonal promotions and advertisements, which feature receipts that customers can easily recreate using ingredients from their nearest Tesco store. Tesco customers also sometimes  take their feedback and questions to  the facebook page, where they receive prompt replies and clarifications from Tesco customer officers. Its Youtube campaigns. For example, in the lead up to valentine's Day, Tesco producted videos teaching customers how to make a delicious chocolate bowl, and tastycanapes, using ingredients easily found in any Tesco store.

Today, consumers are constantly turned into social networking platforms to find out about the latest and trendlist. Hence, it is imperative for all comapanies, including industry heavyweighs, to tap into these social media platforms to engage and reward their customers.

Questions:

a) What sort of marketing strategy did Tesco use to complete with various other giants like Asda, Lidl, and Wal-Mart etc.?

b) What sort of strategy should Tesco need to follow in order to get competitive advantage in south Asian perspective?

c) Perform environmental analysis fo the success of Tesco.

d) What oppurtunities and threats can occurs for competitors like Bhatbateni if Tesco is supposed to start its business in Nepal?