4.

a) For an FMCG company of your choice analyze potential alternative

strategies with regard to substantive growth, limited growth or
retrenchment.
Basically all organizations will face the challenges of strategic direction. Some will wish to
use the opportunities in an optimum level and others will think to solve the problems which
have been identified towards the organization. To run the organization successfully it should
know its strategic direction which leads to take the effective strategic decisions. This strategy
can be mainly classified into three major types as corporate level, business level and
functional level. Among these three, corporate level is an important level which will
approach the future which involves some features such as,
Evaluating they way that the customers and competitors are associated and the firm its
self
Focusing on the new and effective role to formulate the business
Changing the policies and practices eventually which will align with the vision
Under this corporate strategy it can be classified more deeply as growth, stability and
retrenchment. The theory of corporate strategy is based on the growth options which are
related to the range of internal and external development activities that has been invested to
the future growth opportunities.
Growth Strategy
Every organization will think to have a victory earnings in short term. To understand the
growth strategy The Ansoffs model will be the best tool which organizations has to develop
market and product expansion strategies. Ansoffs model is based on the four types of
strategies which are known as market penetration strategy, market development strategy,
product development strategy and diversification strategy. This strategy is basically depend
on company objectives which include increasing sales and profit, new entry to the market,
developing new product and entering into new business. These are the main elements to
consider about the growth strategy. If the companies or organizations concentrate on the
growth strategy they can achieve their goals and objectives as they want. These results have
wide suggestions for conduct a research in strategic management and the importance of the
growth of the firm to corporate strategy will lead to utilize the resource allocation and value
creation.
Stability Strategy
This strategy is somewhat differs from the growth strategy which simply does not like to
change the current strategy of the particular organization. A stability strategy is basically
characterized by the absence of prominent changes. By practicing this strategy an
organization will proceed to serve its same market and customers while maintaining its
market share. Basically some organizations will use this type of strategy either the
organization might think that no point of going for a change or the particular organization
wish to maintain a low level performances. There are three types under this stability strategy.
They are,
Pause or Proceed with Caution strategy
No change Strategy
Profit Strategy
Retrenchment Strategy
This is one of the corporate strategies which goes for the reduction of the size of the
organizational operations or limit their profitable product lines. Basically this can happen
because of the effects of technological changes, undefeatable competition and other
environmental changes and that will lead to live no longer. This can be classified further as
Turn around, Captive company strategy, Selling out, Bankruptcy, and Liquidation.
Sometimes bankruptcy which involves giving up the management of particular organization
to the courts for some settlement of the corporation obligation and that will be a better way to
avoid the debt duties.
Currently there are some organizations which have been pushed to follow the retrenchment
strategy where there has been no way to recover again like Bajaj Auto, Mahindra & Mahindra
in India and so on so forth.
The Strategy of Bairaha Farms PLC
According to the corporate level strategy which has been mapped down by the senior
management of Bairaha Farms PLC it should be noted that firm is using Growth Strategy
for the companies wellbeing. To succeed on their existing business they no need to go for
the strategy of stability or the retrenchment. Because if we consider about the stability it says
that it doesnt accept or adapt to the changes. But Bairahas vision and the mission relies on
making a unique change among its customers perception. According to the retrenchment
strategy it shows that it basically reflects the down sales and poor profit which leads to the
loss. But comparing theory to practicality of Bairaha Farms PLCs scenario, its annual report
shows the positive growth range of sales, profit and the net assets which has been stepped
forward uniquely.
So by considering about the above stated facts it can be assured that Bairaha Farms PLC is
predominantly practicing Growth strategy. The below listed aspects will clearly clarify as to
how and why Bairaha Farms PLC is practicing Growth Strategy.
Financial View
According to the Bairaha Farms PLCs financial highlights it has seen a continuous
improvement in Revenue, Net Profit and Net Assets. Following figure makes this statement
more clear.

Figure 4.1 Comparison of Revenue, Gross Profit and net Assets
0
500
1000
1500
2000
2500
3000
2009 2010

M
i
l
l
i
o
n


Year
Revenue
Gross Profit
Net Assets
By analyzing this chart Bairaha Farms PLC has currently ear marked a remarkable rotation in
terms of operational profit by focusing its utmost on pricing. Hence profit is derived from the
price which a company sells its products to the consumer, so this automatically shows that
Bairaha Farms PLC is operating under growth strategy. But by forecasting for the future of
BF PLC (approximately for 5-6 years) if it confines its self more towards financial stability
and performance like its present heyday which Bairaha Farms PLC is enjoying can achieve
distinctively on its growth strategy. It can easily go for financial outsourcings to implement
this growth strategy in future.
The range of employee level
This is one of the most important factors which have to be considered. To show the evidence
that Bairaha Farms PLC is practicing the growth strategy this factor would be best as the total
staff strength of 40 has now expanded massively to 650 plus direct employees. To decline
the YoY staff turnover they have conducted many regular activities as to satisfy their
dedicated employees like annual outings, karaoke, dance and drama competition and
evaluation of the outstanding performances. They dont feel uneasy to allocate the money for
these matters because they knew that their employees are more important when going for
implementing the growth strategy. As they strongly believe that their employees are more
needed to them they should care more and satisfy them by promoting some more activities
than the current activities. This will definitely lead the Bairaha Farms PLC to increase the
capacity of employees outcome. Currently to remain on their growth strategy Bairaha Farms
PLC is conducting some compensational activities like,
1. Rewards and recognition schemes to identify the way employees has gone the extra
mile in terms of performance.
2. Awarding the Employee of the month and Employee of the year (Spotlight
Achievers).
3. Conducting some skill development programs to increase their productivity of
employees across the organization.
4. Giving increment and bonus according to the annual appraisal and performance.
5. Arranging schemes for special loans and salary related benefits.
More than the above stated activities Bairaha Farms PLC have to implement some activities
in future which can help to avoid the migrations of the employees and give more outcomes
that now.
The content of brand name
Bairaha Farms PLCs victory was really based on their brand name. The name Bairaha Farms
PLC has obviously changed peoples life style. Their innovative through of their brand name
has now let them to the international. According to their scenario their commitment in
innovative is more high in order to grow more and more. The shape of Bairaha Farms PLC
came from their unique factors such as effortless glamour, price, quality and good services to
the customers. But to succeed their growth strategy in future they should exceed their
expectations in above unique factors. Especially Bairaha Farms PLC should deeply concern
about the quality in future years also which is currently having.
Consideration on Corporate Social Responsible Activity
Basically an organizations growth is majorly depended on customers reactions. If customers
give a response to their activities only they can move for further development. So when
organizations participate on the social activities customers will support on that particular
organizations growth also that will automatically shows the organizations good position.
Bairaha Farms PLC is also not an exemption in this case. Considering to all the above stated
factors currently Bairaha Farms PLC have concerned more about the Corporate Social
Responsible Activities.
By balancing with the Bairaha Farms PLCs financial area if Bairaha Farms PLC contribute
more and take part in the social activities it can earn more goodwill among the customers and
can make them as pillar of their implemented growth strategy in future years. This will be
possible because as the customers will believe and trust Bairaha Farms PLC through this CSR
activities and automatically the customers will support their operations.
So by thinking in an analytical view it has been evaluated from the corporate strategic options
which are available it has been identified as the growth strategy is more suitable for Bairaha
Farms PLC in present year and for future five to six years. More than this it does not think
about the stability or retrenchment strategy as Bairaha Farms PLC is far from these strategies.


b) Select a future strategy for this FMCG Company while considering
appropriateness, feasibility and desirability.

The value of balancing desirability, feasibility, and viability

Suitability
The proposed Strategy is suitable in terms of it suitability since it addresses its strategic-
objective. For to grow it needed to enter new market which happened through their
differentiation strategy. Therefore, with its gaining strategy of communication operators, it
was able to penetrate new and existing markets.
Feasibility
In terms of whether the strategy is feasible, strategy might not be feasible due to their start
revenue & profits, but with its high quality and experienced staff, technology and physical
resources, strategy might meet its objectives.
Acceptability
The strategy might not be accepted consideration those acquisitions that ended up being sold
to other providers due to the decline in revenue and its cost.










The most excellent strategy for an organization is to embrace what is the most fitting to its
present strong point and its location. Into which a future strategy corresponds with the
circumstances as acknowledged by a strategic analysis and how the organization is fit into
maintaining, or improving its economical advantage.

A constant progression of outside changes obtains position throughout a cycle of a product, in
a series of when it entered the market down to competitors entering the market and changes
the customers views of buying. The life cycle of a product provides a significant idea in
sustainability of an organization in terms of its weakness and strength strategy.

When looking a product, the first time round it can become popular but when time passes it
loses its popularity and less selling of such product. This could be down to these few reasons.

New and better design on the market
Quality of the product is better and cheaper
Customer looking for new trend.

For or as a manager its very crucial to know your organization weakness and strength to be
able to select an appropriate strategy for the future whereby you can tackle the threat and take
the advantage of the opportunities. A company that has a future strategy has a constant
routine to be better than the competitors.

Wide Market Segment

Cost Leadership Strategy
It seeks to achieve the position of lowest-cost producer in the industry as a whole. By
producing at the lowest cost, the manufacturer can compete on price with every other
producer in the industry.

Differentiation Strategy
It assumes that competitive advantage can be gained through particular characteristics
of a firms products. Product differentiation fulfils a customer need and involves
tailoring the products or the service to the customer.

Narrow Market segment

Cost Focus Strategy
Aims to be a cost leader for a particular segment.

Differentiation focus strategy
Pursue differentiation for a chosen segment. Cost leadership strategy works best for a firm in
the industry in the below mentioned reasons,
Price competition in the hotel industry is vigorous.
Product is standardized or readily offered from many suppliers.
Few ways to achieve product differentiation.
Buyers use the product in similar ways.
Buyers incur low switching costs.
Buyers are large and have significant barraging power.
Industry newcomers to use low prices to attract buyers and build customer base.

Hence the underlying reason for adopting differentiation strategies for a firm in calibre of
Bairaha Farms PLC is shown below,

Firm builds up a brand image in the industry. e.g. Bairaha Farms PLC
Firm can give special product features to make it standout in the industry. e.g. Bairaha
Farms PLC
Firm can provide unique or superior value through product quality, innovation or after
sale support to the customer.
If a firm has access to reliable and speedier delivery system and distribution channels.
If the technology is influenced by rapid development.

Focus strategy is attractive to a particular niche or segment in the following circumstances,
Niche is not crucial to the success of overall industry leaders.
Its costly or hard for multi segment competitors to meet specialized needs of niche
members.
It offers good growth potential and high profits.
Focuser has essential resources and capabilities to effectively serve a niche.
Only few other rivals are specializing in the same niche.
Focuser can guard against challengers via superior ability to serve niche members.

5
a) Discuss the roles and responsibilities which are necessary for strategy
implementation.
Implementation of strategy is a key element of a business success. A strategy should be very
effective and it must naturally implement. When it comes to implement a strategy the key
people who are committed with the organization should clearly identify their required
resources. They should realize that to encourage successfully they should take specific
actions before they implement their strategies. These implementation sessions can be made
up before implement, during the implement and after the implement. The following chart
explains the factors which influencing in implementing a strategy.
Before the implementation During the Implementation After the Implementation

Demonstrating senior
management to commit
with the plan

Selecting the correct
planning team members

Gather the right pre
planning information

Getting the employees
to involve in the
planning



Encouraging the
participation

Developing the
objectives according to
the current report system

Developing balance list
of objectives

Develop the strategies to
the built the companys
strength

Considering the
resources which are
available

Develop in building up in
monitoring system

Communicating the
strategy

Linking the strategic plan
with operational plan

Monitoring the progress
quarterly

Fine tune the progress



Table 5.1 Understanding the Strategic Implementation

According to this task the requirement of resources are widely important to implement
Bairaha Farms PLCs selected strategy. So if we consider about the resource requirements of
Bairaha Farms PLC needs in order to put in place its chosen strategy and execute this strategy
the answers are clearly analyzed below.
Financial Resources
Basically the financial resources are the fact which concern to implement the chosen strategy.
As Bairaha Farms PLC is under growth strategy currently their product lines are having an
actual growth potential. Along with the concentration of resources on their product portfolio
makes to go further in their growth strategy. In Bairaha Farms PLC to implement their
growth strategy which requires prominent investment in new, innovative and dynamic
products, to have a best distribution lines, the maximum capacity in production and working
capital will need the proper financial structure with a greater effort. This is mainly should
managed by the Bairaha Farms PLC in Financial point of view.
If we go in depth on financial highlights their existing finance funds like cash balance remain
strong stability comparing to the past years. Especially their group revenue is not going down
and smoothly increasing yearly. Also they have not fallen into the bank overdraft or other
loans. So these factors show that the Bairaha Farms PLC has a better stability in finance and
by identifying these factors clearly Bairaha Farms PLC can easily implement the strategy
what they expected to achieve in future. According to the current situation Bairaha Farms
PLC has issued the shares to the public in the year 2011 and earn more profit as they
expected. By this shareholders capital Bairaha Farms PLC can plan to implement their
strategy in future according to the time frame. Apart from this if the working capital like
stocks, debtors will give a push to Bairaha Farms PLC when they implement a strategy and
also can have the good creditors (Suppliers). So according to the financial resources on the
beginning of every year Bairaha Farms PLC can easily achieve their target.
Human Resources
The fundamental issue of human resources is how the human resource factors are skilled to
work out with the strategy which is going to be implemented. When the implementation of
strategy is ready Bairaha Farms PLC has to think whether their skills are appropriate to use to
implement their strategy? And should consider whether it is possible to make flexible or
stretch their skills to meet the new requirements of chosen strategy. When planning for
implement a strategy the Project Manager who is recognized as a main human resource for a
chosen strategy should be very dynamic. Because each and every steps which he take for the
selected strategy will definitely affect directly. Before they implement their strategy Bairaha
Farms PLC should know about their existing staffing resources such as the number of staff by
function, location, grade, experience, qualification and remuneration. By identifying this
Bairaha Farms PLC can easily go for the calculation of required human resources for chosen
strategy. Also they should analyze their existing rate of labour turnover, overall training and
specific training for key people of Bairaha Farms PLC, BF PLCs business culture and
confidence. If they do this activity according to they can have a successful strategic
implementation. These aspects are most important implement the strategy which Bairaha
Farms PLC have chosen. As human resource is mainly needed to implement the strategy, by
exactly measuring the above stated facts Bairaha Farms PLC can easily estimate the future
required sources and can get a clear idea of how can they be sourced like outsourcing,
alternative include employment and etc,.
Project Management Resources
This is basically comes under marketing strategy implementation. As Bairaha Farms PLC has
chosen the growth strategy, to have a concentration product lines Bairaha Farms PLC should
deeply concern about the marketing strategy. Under this Project management resource
includes the project planning, status checking, mutual work plans, timeline management
factors and more. These resources will fulfil the need of marketing plan for the chosen
strategy. This factor is really important to Bairaha Farms PLC as to implement their strategy
according to the time frame. Now days time has recognized as a very important source in
every organization. So according to the Bairaha Farms PLC this particular resource will cover
to work out the strategy with the segmentation of time frame. As mentioned earlier the
Project Manager is very important when going for a strategic implementation and with his
background Bairaha Farms PLC can have a proper project planning with the help of checking
the actual status of Bairaha Farms PLC in the market. This will automatically leads to have a
mutual work plans that is aligning with the market situation and implement the chosen
strategy.
Physical Resources
This category is satisfying the whole and broad area of operational facts which explains that
can deliver the chosen strategy in order to the physical capability. According to the Scenario
of Bairaha Farms PLC it can mainly focus on production facilities, Information technology
applications, marketing facilities and further more. If Bairaha Farms PLC go through the
current situation of production facilities which analyzes the current product quality methods
(Current production process), Production capacity, and Current location of existing
production facilities Bairaha Farms PLC can think about the further requirements of the
chosen strategy and can measure the extend of delivering the production facilities. They can
also calculate the range investment and the maintenance of the production facilities for
implementing the strategy in future. According to the marketing facilities such as marketing
management process, distribution channels will help to implement their growth strategy
widely in future. Especially Bairaha Farms PLC must consider about these facilities which
should be very efficient and effective manner in order to succeed in implementing the
strategy. To mix up with customers and supplier in a unique way Bairaha Farms PLC must
get the maximum use of information technology resources like IT systems. This will
automatically help Bairaha Farms PLC to move further in implementing their chosen strategy
according to the time frame.

b. Discuss timescales and targets which are required for achievements in a
selected organization in order to monitor a given strategy. (Do your
evaluation on benchmarked outcomes in a particular period in relation to
corporate and operational targets)
It is important to have monitoring procedures when implementing a strategy as information
can then be used to,
Assess resource allocation choices
Monitor implementation progress
Evaluate performance of managers in achieving implementation tasks
Monitor any environmental changes from those that were projected
Provide a feedback mechanism
Monitoring becomes increasingly important as the concept of strategy moves from
being isolated to being an ongoing event.

Many businesses spend significant resources on monitoring their activities; some major
organizations have complete departments whose only task is to monitor competitors. It is also
a characteristic that many small businesses are also aware of any immediate competitors,
their market prices and other strategic activity.

A strategic control system can be used to monitor the main elements of a strategy and its
objectives. What is more crucial is that this information is available in time to be able to take
action if required. Strategic controls systems will include some financial measures but will
also involve looking at customer satisfaction, market share and quality measures.

It could also be necessary to apply the same indicators externally to monitor competition.
This would allow the performance of the organization to be measured against others in the
marketplace.

To obtain the best from a strategic control system the following guidelines can be followed
Concentrate on key performance indicators If too many elements are being monitored the
result will be information overload.

Distinguish between corporate, business and operating levels of information and only monitor
where relevant Not everyone needs to know every piece of information.
Avoid overreliance on quantitative data Although this information is easier to measure it
can also be misleading. Qualitative data that is more difficult to quantify may be more
relevant when monitoring.

As controls become more established give consideration to relaxing them Not doing so may
interfere with the ability to explore a strategy clearly.

Be realistic of what a control system can do Some may consider strategic controls as a
waste of time because of the lengthy time scales involved in seeing results. It is more
beneficial to acknowledge the benefits of a control system in terms of improved strategy.

Below I will set out how Bairaha Farms PLC can use targets and timescales when
implementing a new advertising strategy.

The following is a summary of the expected major focus of activities by target for the Bairaha
Farms PLC Board of Directors and Staff in each year of the strategic plan.
action\year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
increasing the portfolio
of organization

Opening new outlets
outside of Colombo

Adding some unique
brands to their products

Going for new
promotional activities

Engaging with some
international brands

Adopting new
technology and
improving the
infrastructure of
organization

Going for contract with
new suppliers.

Moving to the
European continent


This plan is simply explains how Bairaha Farms PLC can implement its selected strategy
with sticking into the time frame. If Bairaha Farms PLC follows in this manner it can
definitely achieves its target according to the growth strategy.





















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