STRATEGIC MANAGEMENT

1Q. After working in a corporate for fifteen years Mr. Mahesh plans to start his own retail
business of footwear. Mahesh h as a plan of starting at le as t fifteen retail stores in the
first year and he h as already arranged for the required capital. He plans to start fifteen
stores as per the list:
Location
Mumbai
Pune
Delhi
Kolkata
Bangalore

No. of Stores
4
3
3
3
2

He hires you as Business Development Manager (BDM) in his organisation to perform

the following activity.
A) You are as ked to frame the Vision, Mission, Goals and Objectives for the business
that Mr. Mahesh h as started.
Ans) Vision: "Create a new landmark for the footwear industry. Provide high
quality products and best services. To become the best value company in the
footwear industry."
Misssion: The mission of this Foot wear stores is a core focus on the needs, desires,
and emotions of its shoe shopping customers. Our core focus is to create a distinctive
shopping experience that satisfies both the rational and emotional shopping needs of
our customers by offering them a v as t, exciting as sortment of in-se as on styles
combined with the convenience and value they desire." Our company strives to be the
retailer of choice for branded footwear and accessories, by exceeding customers'
expectations for selection, convenience and value."
Goals and Objectives: Every Manufacturer seek the same objectives, but the main
goal is typically to produce the best products possible at the lowest costs. Individual
sectors within the manufacturing industry seek specific objectives relative to the
products produced. For example, shoe manufacturers plan and implement performance
objectives relative to production processes particular to the industry.
Consistent Product Quality
Meeting quality standards is high on shoe manufacturers' objective lists.
They establish a repeat customer b as e by ensuring that the quality of the
shoes produced meets the standards expected by consumers. In addition,

dependable product quality establishes the manufacturer as a trusted

brand name in the market, which brings in new customers.
Competitive Production Rates
Shoe manufacturers strive to maintain output rates comparable with
competitors. Performance objectives in production focus on efficient use of
raw materials and labor to meet goals in production rates. Machinery and
equipment need to operate at optimal levels without excessive downtime or
failure. Workers on a production line must be properly trained. Knowing the
company's daily and weekly target production rates helps workers
understand what is expected to meet the objectives.
Low Costs
Keeping manufacturing costs down without reducing quality is one means of
incre as ing gross income. Reducing idle time of both machines and workers
is an objective that trims overall costs, as is reducing cycle times. Keeping
w as te to a minimum adds to profits and can be accomplished by
maintaining machines in top working order and training employees to work
efficiently.
Customer Satisfaction
Profitable businesses seek customer satisfaction. Shoe manufacturing is no
exception. Obtaining feedback on sales is part of achieving this goal.
Knowing which products produce the most sales is a clear indicator of what
types of shoes the customer b as e prefers. In addition, knowing what types
of shoes are the le as t likely to sell can help the manufacturer rethink future
operations.

B) You have to decide the fifteen specific locations (Example: Borivali in Mumbai) in
the above mentioned city for the number of stores mentioned therein. Briefly state
the re as on for the decision on each location.

Ans) MUMBAI
1. Fashion Street:
Fashion Street is literally just that is a street lined with f as hion! This Particular Market
can be targeted because it is on the Footways of the Roadside and a Customer need
not spend too much of time rather entering into the Mall and selecting a Shop for
footwear. Time saves and can be decided very soon.
3) Chor Bazar:
Navigate your way through crowded streets and crumbling buildings, and you'll find Chor
Bazaar, nestled in the heart of Muslim Mumbai. This f as cinating market h as a history
spanning more than 150 years.
4) Colaba Causeway:
The everyday carnival that is the Colaba Causeway market is a shopping experience
like no other in Mumba. It is a one time Roof and shopping place where you will get
everything. The Best way to Promote and start your Shop is here as the Location and
the Name of the Mall is famous.
PUNE:
1.Laxmi Road: Laxmi Road in Pune is one of the major shopping are as of the city.
The busiest and longest markets of Pune, Laxmi Road comprises of a number of narrow
side streets and by-lanes.
2. Hongkong Lane: Hongkong Lane The Hongkong Market lane is a must visit place of
Pune which is located in Deccan near the Garware Bridge. The lane offers a unique
collection of bags, clothes, accessories, books and footwear.
3. Fergusson College Road: Fergusson College Road FC Road is one of the most
sought after destinations in Pune city. It is located in the inner west side of Pune.

DELHI
1. Lajpat Nagar (Central Market):
The hectic Lajpat Nagar market provides an interesting glimpse into Indian culture. It's
one of the oldest markets in India and is abuzz with middle cl as s Indian shoppers, all
swarming around its roadside stalls and showrooms
2. Chandni Chowk:
The shopping district of Chandni Chowk h as been in existence for hundreds of years
and an exploration of its winding, narrow alleyways is certainly an adventure. The lanes
of Chandni Chowk are divided into bazaars with different are as of specialization
3. Dilli Haat:
This huge Delhi market h as been deliberately made to feel like a traditional weekly
village market, called a haat. Small thatched roof cottages with a village atmosphere
give it great ambiance.

KOLKATA
New Market:
New Market, also known as Hogg's Market, is Kolkata's oldest and most well known
market. It's got over 2,000 stalls and is a bargain hunter's delight.

2. Dakshinapan Shopping Center:

This open air shopping center is a little out of the way, but it's an excellent place to buy
Indian handicrafts and artifacts. You'll find many Indian state government emporiums
there, stocked with fixed price goods from all over the country.

3. Chowringhee Road:
A huge variety of pavement vendors line Chowringhee Road from Park Street to New
Market, selling everything bizarre to tacky.
BANGLORE

1.Commercial Street:
Bustling with crowds at all times of the day, Commercial Street is one of the busiest
markets in the garden city. A tangle of by-lanes, the street is lined with jewellery and
antique stores, book shops, apparel outlets and accessory stalls.

2. Brigade Road:

Brigade Road is another popular shopping hub, especially with the youngsters. Theres
a whole bunch of places to shop at, including branded showrooms, street stalls and
multi-brand arcades.

C) Study the external business environment for footwear business in India.

1. Proposed Vision Statement Continue to bring inspiration to present and future athletes,
while maintaining the companys standard of quality for its products.
2. Product in OfferRunning Pink RibbonSports equipments Mens StylingWomen
Sportswear
Athletic WearGlobal Market Share!
3. SWOT ANALYSIS Strengths : Weaknesses AS Research and developmentDependency
on AS Marketing Footwear sales AS Outsourcing AS Inefficiencies within AS Name
recognition Management AS Y2K+ Readiness AS Rely on Retail AS Financials sales
stores to sell.
4. Contribution to EnergyConservationShopping BagsEnergy Audits Optimum Utilization
of Energy in stores

5. Transformation of a 113 year Old Company

6. Consumer Behavior AS Cultural Factors AS Social Factors AS Economic Factors AS
Product Factors AS Demographic Factors
7. Strategies Target Women Kids Targeting developing countries Offering variety of
products
8. MARKETING STRATEGY ADID AS AS People purch as e products or services for
three b as ic re as ons: AS To satisfy b as ic needs. AS To solve problems. AS To make
themselves feel good.
9. MARKET INDUSTRY AS Comfort AS Durability AS Style AS Price AS Brand
10. CONTINUED AS Multi-Brand Approach AS There is a natural limit a brand can
achieve given the diverse t as tes and expectations of a highly fragmented consumer
market. Thus, a multi-brand approach will provide the firm with a major competitive
advantage and significant additional commercial opportunities compared to a single
brand strategy. It can leverage the power of its brands in a more precise and meaningful
way, utilizing the combined strengths of each to compete for a higher percentage of the
market, covering a greater number of consumer needs, price points and demographics.
11. COMPETENCE AS Broader distribution AS Close cooperation with retailers can
significantly improve the in- store experience for the product. Establishing shop-in-shop
formats (e.g. with JJB and Dicks Sporting Goods) or retail partnerships (e.g. with
INTERSPORT) are examples where the company is leading the industry. Such co
operations can be particularly effective in markets that have become dominated by price
and lack of differentiation. AS Cost leadership AS The acquisition of Reebok h as
created significant opportunities to reduce and optimize costs, through scale benefits,
back office consolidation and combined capital expenditure planning.
12. PUMA AS BRAND PERSONALITY AS P as sion AS Openness AS Self-belief AS
Entrepreneurship
13. SUCCESS FACTORS AS Strong Presence: Sports and lifestyle f as hion market AS
Products meeting market demand AS Big distribution network AS High innovative and
qualitative products AS Harnessing resources and experiences AS Ample knowledge in
R&D