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O.D.M Computer & Mgt. Education

BUSINESS POLICY & STRAEGIC ANALYSIS (CP-301)

Ques 1:- What is Business Policy? How does Business Policy make the Study of

Management more meaningful?Ans:- Business Policy:-

The term Business Policy may be used interchangeablywith Strategic Management, corporate planning etc.

Primarily the term Business Policy means a long-term planning for the total business as a whole.

BUSINESS- Corporate/ Overall functioning

POLICY Planning/ Formulation of StrategiesThus Business policy means a long-term planning of any Organization for thepurpose of its -

GROWTH

SURVIVAL

EXPANSION

DIVERSIFICATION ETC.The planning of the overall Business is done by the top-level managers who have the

relevant skills experience and knowledge to take a strategic decision for the overallcorporate.Acc to Christensen:-

Business Policy is the study of the functions and responsibilities ofSenior Management, the crucial problems that affect success in the total enterprise,and the decision that determine the direction of the Organization and shape itsfuture.From the above definition it may be understood that Business Policy attempts to studywhat path is the Organization going to take in future.

-------------GAP-------------------------

Actual Position Anticipated Position

Planning Designing Implementing Steps


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Study of Business Policy

Nature of Business Policy:-

1. Business Policy is a Study:-It is a study of a what the top level

Managers do and what guides their activities.

2. Top-Management:-Business Policy deals with the long term perspective of the

Organization. These decision are taken by the managers at the senior level ofmanagement. Therefore, Business Policy attempts to Study the functions andresponsibilities of the senior management which primarily concerns itself to the crucialproblems or decisions of the organization.

3. Future Oriented:-As the Study of Business Policy entails what should be done

to take a desired future course of position it is future-oriented. The Senior levelmanagers anticipate and predict the future and take a policy decision in the present.

4. Choice of a Position:-The study of a Business Policy involves evaluating

Various courses of action and various desired future positions and ultimately choosingone of the best suitable future position.

LeaderFollower

Choice of a positionChallengerInitiator

5. Choice of a Strategy:It also involves an evaluation and choice of a

Strategy to reach upto the desired future position.

Mergers & AcquisitionsJoint Ventures

Choice of a StrategyDiversificationIntegration

6. Mobilization of Resources:-

The study of Business Policy is also concerned with the optimum andmobilization of the available and the required resources in an organisatio9n for theachievement of the :

Organizational Goals

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Short-term Goals Long-term Goals

Evaluation of Business Policy:-

FutureStrategic thinking

1980sStrategic Management

1960s

Strategy Paradigm1930-40s

Planned Policy formulation Integration areas

Mid 1930s

Ad-hoc Policy-making1911

Hartvard Business School introduced anintegrative Course in Management.

In the Initial days managers used to do with day to day planning methods. The firstphase in mid 1930s was the premise of ad-hoc policy-making mainly due to the

nature of the business of that period.

The second phase in 1930s and 1940s was marked by the increasing environmentalchanges. Planned Policy formulation replaced ad-hoc policy making, which led to theemphasis shift to the integration of functional areas.

The third phase during 1960s was based on strategy paradigm. It was the effect andrelationship of the business with the environment, which guided the process of policymaking.

In the early eighties, the patterns changed again companies went global and

competition increased Japanese Companies unleashed a force across the worldalong with other Asian companies and possed threats for the U.S. and EuropeanCompanies.

Strategic Management

Strategic process of business Responsibilities of General management

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ImportanceThe study of Business Policy makes the study of mana-

gement more meaningful. It completes the study of management for the students, asit puts together the information of all the functional areas and gives a complete pictureof the organization for determining a comprehensive future policy of an organization.

Thus the Business policy is important for

Students Executives

For Students:-

a) Business Policy seeks to integrate the knowledge gained in various functionalareas of management i.e. Finance, Production, Marketing, and Human Relationsetc.

b) All the constraints and complexities of the real life business are studied in thesubject of Business Policy.

c) The study & practice of management becomes more meaning with the integrationof all the functional sub-systems.

For Executives:-

d) Business Policy helps to create an understanding of how policies are formulatede) The study makes the executives more receptive to the developments in the

environment to pick ideas and suggestion for implementation purpose.f) Business Policy prepares the executives at middle-level of management for the

understanding of strategic decision making.g) It offers a unique perspective to executives to understand the senior

managements viewpoint.

CONCLUSIONS:-

The purpose of the business policy course is to integrate the knowledge gained invarious functional areas, to adopt a generalist approach and to comprehend thecomplex interaction taking place within the organization. It is a core subject thatintegrates all the knowledge & experience gained for future of the organization.

Example-1 The study of the planning & activation of a joint venture betweenONGC Mittal Energy (OME) and ONGC Videsh (OVL) as Mittal Steel Group is astrategic decision.

Example-2 The kolkata based ITC, known primarily for its tobacco productshas taken a strategic decision to enter into Soaps by targeting SEC-A consumersusing products in the Rs. 15/- range.

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Ques. 2:- Differentiate between Vision and a Mission Mention thecharacteristics of a good mission statement.

Ans:- VISION:- The promoters of an organization, normally have some aspirationswhich guide them in the structuring and functioning of the organization. These

aspirations are expressed in strategic intent means intention. A strategic intent shouldlead to on end. That end is the Vision of an organization. It is what the firm or personwould ultimately like to become in the future.

A vision is more dreamt of than it is articulated. Many a times it may not be evidentwhat vision does the top management holds for its organization. A vision could be ashazy & vague as a dream. Yet it is a powerful motivator to action.

Acc to Kotler:- Vision is a description of something in the future.

Acc to El-Namaki:- Vision is a mental perception of the mind of environment on

individual, or an organization that aspires to creat within a broad time horizon and theunderlying conditions for the actualization of this perception.

This vision is a future aspiration that leads to an inspiration to be the best in onesfield of action. It acts as a strong motivating factor for the senior level managers as itprovides a direction to the organizational efforts.

Benefits of a VISION:-

Acc to Parikh:-

1. Good visions are inspiring.2. Visions represent a discontinuity and shows the company what is to be achieved

as an ultimate position.3. Good visions helps in the certain of a common identity and a shared sense of

purpose.4. Good visions are competitive, original and unique. They give a sense of identity to

all the employees in an organization.5. Visions foster long-term thinking and guides the organizational working towards a

common philosophy.

6. A Vision represent integrity and may be useful for the benefit of people.

Thus a good Visions may be inspiring & motivating to the management. It may guidethe working of a dream i. e. a Vision. A vision articulates the position that a firm wouldlike to attain in the distant future.

E.g. :-

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IOCs Vision

Indian Oil aims to achieve international standards of excellence in all aspects ofenergy an diversified business with focus on customer delight through qualityproducts and services.

Thus Vision constitutes future aspirations that lead to an inspiration to be the bestin ones field of activity.

Mission:A mission is a statement which defines the role that an organization plaus in a

society. It is the link that the organization develops between its existence and the need ofthe society.

While the essence of a vision is forward-looking view of what an organizationwishes to become Mission is what an organization is and why it exists.

According to Thomson.

Mission is the essential purpose of the organization concerning particularly why it is inexistence, the nature of the business it is in an the customers it seeks to serve andsatisfy.

According to Hunger:-Mission is the purpose or reason for the organizations existence.

* CHARACTERISTICS OF A MISSION STATEMENT:

1. Feasible:-A mission statement should always aim high should not be an impossible statement.

It should be realistic and achievable.

According to Havells:

VISION:- We are committed to the cause of enriching the quality of life by ensuringsafe, efficient and convenient use of electricity.

MISSION: Better TechnologyBetter QualityBetter Tomorrow

6

Formally Mission

VisionInformally

Formulated

Statement of thereason of existence

Dream to be achievedin future


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CONCLUSION:-Therefore from the above discussion it may be concluded that a vision is a future

dream of the promoters of an organization. Based on this foundation, the topmanagement designs a statement for the very reason of its existence in the society,which is called Mission. The two terms are different in concept yet they complement each

other in giving a purpose to the existence of an organization and guides its activitiestowards a future position.

Strategic Intent

Q.3:- What is the concept of Environment in Strategic Management? What aspectsdoes Environmental Appraisal deal with?Ans:-

Environment:The term basically means the surroundings: external objectives, variables, events

and circumstances under which someone or something exists. In terms of Business,Environment refers to the culmination of all conditions, events, circumstances andsituations and the various pressures and influences and surround and directly andindirectly affects the organization.

7

VisionMission

Business (Corporate level)

Objectives

Divisional ObjectivesDepartmental/ FunctionalObjectives

Operational Objectives

Environment

Circumstances

Influences

Situation

Pressure

Conditions


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*Characteristics of Environment:-a) Complex:

The environment consists of a number of factors and variables directly or indirectlyinfluencing the operations of any business organization. All the factors and conditionswhich form a part of the environment are interrelated and interdependent. One factorinfluences or get influenced by another factor. Thus environment is a very complexphenomenon whose parts may be easily understood in isolation but a total picture mayrequire sufficient understanding and knowledge.

b) Dynamic:Due to so many forces operating in the environment the nature of environment is

constantly changing and is thus dynamic in nature.

c) Multi-Faceted:

The character of the environment is understood by the person who is observing it.It has got many angles. It ultimately depends upon the perception of the observer, whathe derives out of the development of the events. For example the de-licensing of theindustries may be considered as an opportunity by some who want to enter the business.However the same may be considered as a threat by those who were earlier having amonopoly in a particular business.

d) Far-reaching impact:

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EnvironmentalInfluence onorganization

Directly

Indirectly

Globalisation

Technologicaladvancement

Infrastructure

development

Liberalisation

Competition

Environment sub-systems


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The developments and events shaping the environment have a far reachinginfluence on the operations of a business. For example any change in the tastes & linkingof customers affect the growth & profitability of a firm.

For any business organization the study of environment is of utmost important tobe able to adjust itself to the latest developments and to be able to reap the benefits ofthe opportunities arising in the market. The complexities of any environment may be

understood by dividing it into different categories.Environment

Internal Vs. External General Vs. Relevant

A) INTERNAL ENVIRONMENT:The internal environment of a business consists of various factors existing within

an organization which results into building its strengths & weaknesses.

It includes:-Employees & their skill base.

Level of Technology availableAvailability of various resources like finance, infrastructure etc.ProcessOrganizational design and structureOrganizational work culture- Procedures policies.

B) EXTERNAL ENVIRONMENT: -The external environment of a business includes all the factors outside the organization.It is this set of factors which provide an opportunity or pose threats to the organization. Itincludesi) Market Environment: Customers needs, preferences, attitudes, perception,

bargaining & purchasing power, satisfaction etc.Product: features, functions, ingredients, image, price, differentiation, availability,substitutes, services etc.Marketing intermediary: Channel, levels, costs, logistics, delivery, service & financialschemes etc.Competitor related factors: types & number of competitors, entry & exit of competitors,nature & strategy of competition.ii) Technological Environment:Sources of technology, cost of technology acquisition,Technological development, stages of development change & rate of change, research &development.

Impact of technology on human beings and environmental effort.Communication & infrastructural technology.iii) Supplier Environment:-Cost, availability & continuity of supply of raw materials, parts & components.Cost & availability of finance, energy, human resources, machinery, spare parts & aftersales service.Infrastructural support & ease of availability.Bargaining power of suppliers & existence of substitutes.

iv) Economic Environment:-

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Stage of economic development of the country.Structure of economy- Capitalist/Socialist/MixedEconomic policies- industrial, monetary & fiscalEconomic planningEconomic indicates like national income, GNP per capita income, savings & investment.Balance of payments, value of exports & investment.

v) Regulatory Environment:- Constitutional framework, Directive principles,fundamental rights, division of powers.Policies related to licensing, monopoly, foreign investment, financing etc.Policies related to distribution & pricingPolicies related to imports & exportsOther policies related to the public sector, small scale industries, environmental pollution,consumer protection etc.vi) Political Environment: The political system and its features, political parties.The political structurePolitical processes like party system, elections, economic & industrial promotion &regulation.

Political philosophy, governments role in business etc.vii) Socio-cultural Environment:- Demographic characteristics e.g. Population and itsdensity, distribution, change, age composition, interstate, migration, rural-urban mobility& income distribution.Environmental pollution, consumerism, corruption, use of mass media etc.Family, family values & family structure.Role and position of men, women, children etc.Educational level, work ethics, role of minority etc.viii) International environment:-Globalisation, global blocksGlobal HR, Global information system

Global markets & competitivenessGlobal legal systemC) General Environment:-

A wider perception of the environment includes all the aspects of the externalenvironment e.g.National/ internationalEconomicSocial/ DemographicTechnologicalPolitical etc. together constitute the general environment. The general environmentaffects the business someway or the other and thus all business houses are concerned

about it. The general environment offers a common set of opportunities and poses acommon set of threats to all the players in the industry. However, the organization maynot be influenced by each factor of the general environment.D) Relevant Environment:-Every business organization is concerned with a set of environment aspects, which havea direct, or an immediate affect on the business. This part of the general environmentwhich is of an immediate concern to the business is termed as Relevant environment.What constitutes a relevant envornment depends upon the perception & working of thebusiness and the industry a firm is in.

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PORTERS FIVE FORCES MODEL OF EXTERNAL ENVIRONMENT

According to Michael Porter:Competitive strategy must grow out of a sophisticated understanding of the rules ofcompetition that determine an industrys attractiveness.

CONCLUSION:-Thus the study of various aspects of the environment is undertaken by the

strategist in order to determine positive & negative trends that could impact uponorganizational performance. Change is a continuous phenomenon in the externalenvironment and that change is unpredictable from the perspectives of timing & strength.

A managers ability to recognize and anticipate environmental changes plays a key rolein shaping the companys future. Understanding of the external environment helps tobuild the companys base of knowledge and information, which can help improve acompanys competitive position, buffer the company from environmental impacts & buildbridges to influence stakeholders of the company. This will improve the companysopportunities to successfully adopt its strategic direction to the trend of the environment.

Q.4.: Define SWOT. What is the rationale of performing SWOT?Ans: SWOT:

Any Business organization for its survival and growth undertakes a detailed SWOTanalysis. SWOT is the shortform for

StrengthWeaknessesOpportunities &ThreatsIn the cut-throat competition faced by the business today a detailed environmental

scanning is a must. The study of Internal & External Environment, General & Relevant

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Substitutes

Potential Entrants

OtherStockholders

Suppliers

BuyersIndustry

Competitors Bargaining power ofsuppliers

Threat of substituteProducts or services

Bargaining power ofbuyers

Relative power of Unionsand Government etc.

Threat of New Entrants

Rivalry among existing firms


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environment makes a business house adopt itself to the ever changing and everdemanding surroundings in which the business operates.

S W O T

Internal ExternalEnvironment Environment

The strengths & Weaknesses of any organization are inherent and reside in theinternal environment of a business.

The Opportunities & Threats are the development or events which exist in theexternal environment and are open to all the players in the industry.

a) Strengths:A strength of a business is its capacity or ability to perform or to possess any

resource relevant for the success or otherwise of a firm, which may not be possessed bya rival player in the industry.For e.g.

Skilled manpowerLevel of technologyEconomy of Scales or availability of cheap financeIntense distribution channelsRaw materials/ components at least cost.Efficient suppliers etc.

The strengths possessed by a firm gives it a strategic advantage over the otherfirms either in the short run or in the long run business can take a risk based on one of itsstrengths. This strength, if realized can help strategic planning of a firm.

b) Weaknesses:A weakness of a business is its shortcoming or unability to do something or to

possess something which a rival firm may have. This weakness determines the level ofstrategic advantage gained by a competitive firm over a business. A weakness could bepoor availability or poor retention of skilled manpower.

High cost of capitalOutdated or expensive technology

High cost of productionUnreliable suppliers.Shallow distribution channelsPoor state of logistics & physical distributionEvery organization should try to further strengthen its abilities and try to overcome

or hide or compensate its weaknesses. These weaknesses or shortcoming are generallymade known to the customers by competitors. The firm should always have a readystrength available to be able to compensate any or all of its weaknesses in the eyes orthe customers.

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For example:Weakness of high cost of production may be justified by unique features, high

quality & durability etc. of the product.

c) Opportunities:

An opportunity is any chance or an event, which can be utilized and takenadvantage of an opportunity, lies in the external environment and is open to all theplayers in the industry serving on the same platform. It primarily depends upon theperception as well as the resources of the organization that, whether any occurrence isconsidered as an opportunity or not. An effective manager is always receptive toopportunities, which may soon be converted into strengths.An opportunity may be :-Some favourable law passed by the legislature of the countryEntry or exit of a competitor a substituteChange of the consumer behaviour

Change in the technology compatible to organisational resourcesAvailability of a cheap financePossibility of a joint ventures or takes overChange in the competitors strategyChange of a political party in power etc.

Thus if any event or an occurrence is in favour of the organization it is perceived tobe an opportunity by it. Opportunities are taken advantage of to create a competitiveedge or a first movers advantage in the industry.

d) ThreatsThreats exists in the external environment. It is in accordance of an event or the

potential occurrence of an event which may adversely affect the organisationsfunctioning or potentiality to lead over the competitors in todays time or in future. Theabove mentioned opportunities may well act as a threat to an organization

If it is not suiting its style or working, resources or business strategy.It is very significant for any business organization to do its SWOT analysis on a

regular interval to make use of its strength & opportunities, to overcome its weaknessesand to avoid the threats in hampering its business.

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14

Feedback&Control

Business

Mis

sion

External

Environment

Internal

Environment

Goal

Formulation

Strateg

ic

Formulation

Program

Formulation

Imp

lementation

SWOT

Analysis

THE

BUS

INESS

STRATEGIC-PLANN

INGP

ROCESS


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Indicators of competitive strengths1. Strong market share

2. Growing customer base and customer loyalty.3. Above average market visibility4. Strongly differentiated products5. Cost advantages6. Above average profit margins7. A creative & entrepreneurial alert management8. Above average technological & innovational capability

Indicators of Competitive Weaknesses1. Competitive disadvantages2. Short on financial resources3. Slipping reputation with customers

4. Lag in new product development5. High cost of production6. Weak product quality7. Losing ground to rival companies8. Lacking skills & capabilities in key areas

CONCLUSION:A Successful strategist concentrates his efforts on the understanding of both

external as well as the internal analysis. The knowledge of competitive moves andcounter moves and the recognition of the potential competitive advantages of theorganization. Both are equality important to be realized by a Strategist.

Q.5. Differentiate between BCG and GE matrix tools used for Strategic planning.Ans:- BCG GROWTH- SHARE MATRIX:

The Boston Consulting Group (BCG) a leading management-consulting firmdeveloped and popularized a growth share matrix. The matrix comprises of fourquadrants each describing the size and position of the strategic business unit owned byan organization.

Stars Question Marks

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MarketGrowthRate

H


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Cash Cow Dogs

On the vertical axis is the Market Growth rate of the market in which the businessoperates. A market growth rate above 10 percent is considered to be high.

On the horizontal axis is the Relative Market Share. It refers to the StrategicBusiness Units market share as compared to the firm, which is its largest competitor inthe segment under consideration. The relative market share serves a measure of thecompanys strength in the market segment.

The two axis are divided into high & low. The growth matrix is divided into fourcells each indicating a different type of business profile.

1. Question marks:

These are Businesses that operate in high- growth markets but have low relativemarket shares. A question mark requires a lot of cash because the company has tospend money on plant, equipment and personnel to keep up with the fast growing marketand because it wants to overtake the market leader. The company has to think hardabout whether to keep on investing money into this business or put an end.

2. Stars:It is a market leader in a high growth market. A star does not necessarily produce

a positive cash flow for the company. The company must spend substantial funds to keepup with the high market growth an to fight off competitor attacks. A star is a potentialbusiness which has the competitive advantage to be a market leader in an industry that isgrowing fast.

3. Cash cows:Stars with a falling growth rate that still have the largest relative market share and

produce a lot of cash for the company is called a cash cow. The company does not haveto finance expansion because the markets growth rate has slowed because the businessis the market leader it enjoys economies of scale and higher profit margins. The companyuses its cash cows to pay bills and support other business.

4. DogsBusinesses that have weak market shares in low-growth markets are in the dog

category. The company should consider whether they are expecting a turn around in themarket growth rate or a new chance for market leadership else they should divest thisbusiness. It would be fruitless to spend and money on this matrix business.

G-E MATRIX

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Relative Market Share

HL

L


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A refined version of the BCG Matrix is the one pioneered by General Electric. AnSBUs appropriate objectives cannot be determined solely by its position I the growthshare matrix. If additional factors are considered the growth-share matrix can be seen asa special case of multifactor portfolio matrix.

Protect position Invest to build BuildSelectivity

Build Selectively Manage for Earnings

LimitedExpansion orHarves

Protect &Refocus

Manage for earning

Divest

Market attractiveness Competitive - Position Portfolio

Each business is rated in terms of two major dimensions market attractiveness andbusiness strength. Companies are successful to the extent that they enter attractivemarkets and posses the required business strengths to succeed in the markets. If one ofthese fact is missing the business will not produce outstanding results. Neither a strongcompany operating in an attractive market will do very well.To measure the two dimensions, strategic planners must identify the factors underlyingeach dimension and find a way to measure them and combine them.

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MarketAttractiveness

Low

Medium

High

Strong Medium WeakBusiness Strength


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Market attractiveness varies with the markets size, annual market growth rate,historical profit margins etc. business strength varies with the companys market share,share of growth, product, quality etc.

While the BCG matrix considers only two factors, the GE portfolio matrix helps thestrategic planners to look at more factors in evaluating an actual or potential businessthan the BCG model does.

As against the BCG matrix the GE matrix is divided into nine cells, which in turnfalls into zones.

The three cells in the upper left corner indicates strong SBUs in which the companyshould invest or grow. The diagonal cells stretching from the lower left to the upper rightindicate SBUs that are medium in overall attractiveness.

The company should pursue selectively and manage for earnings. The three cells

in the lower-right corner indicate SBUs that are low in overall attractiveness. Thecompany should give serious thought to harvesting or divesting these business units.Apart from the BCG and GE portfolio matrix, three more portfolio matrix are used toevaluate the strength of business units and facilitate strategic planning.

A) Direction PolicyB) Space Matrix

CONCLUSION:Portfolio models have helped managers to think more strategically, to understand

the economics of their businesses better, improve the quality of their plans, improve

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Business Strength

High

Medium

Low

MarketAttractiveness


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communication between business and corporate management, eliminate weakerbusinesses & strengthen their investment in more promising businesses.

However, portfolio models must be used cautiously. They may lead the companyto place too much emphasis on market-share growth and entry into high growthbusinesses or to neglect its current businesses because may end up in the same cellposition though differ greatly in underlying ratings & weights.

Q.6. : The core of general management is Strategy Elaborate. Also discuss therole that a strategist play in strategic management.Ans: STRATEGY:

THE concept of Strategy is central to understanding Business Policy and StrategicManagement. The term Strategy is derived from the Greek word Strategos whichmeans generalship. The term Strategy means the art of the managing or adopting acourse of action. A course of action may be:

- to take advantage of opportunities- to devise ways to counter threats etc.

ACCORDING TO ALFRED D. CHANDLER (1962)A Strategy is the determination of the basic long- term goals and objectives of anenterprise and the adoption of the courses of action and the allocation of resourcesnecessary for carrying out these goals.

ACCORDING TO WILLIAM F.GLUECK (1972)A Strategy is a unified, comprehensive and integrated plan designed to assure that thebasic objectives of the enterprise are achieved.

By combining the above definitions we understand that a Strategy is a plan orcourse of action or a set of decision rules forming a pattern or creating a common thread

related to the organizations activities which are derived from its policies, objectives andgoals.

In business the strategy operates at different levels.

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Functional LevelStrategy

Business LevelStrategy

CorporateOffice

SBU 1 SBU 2 SBU 3

Production Operations Marketing Finance Personnel

Corporate LevelStrategy


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Apart from the three levels mentioned, many a times a strategy may be designedat higher levels. Such strategies may be called the Societal Strategies.

The strategies may be set at levels lower than the functional level, which are

called Operational Strategies.The stream of decisions and actions which leads to the development of a aneffective strategy or strategies to help achieve corporate objectives.

-Glueck (1984)Strategy is the most significant concept in Business policy and Strategic Management. Itguides the functional and operational decisions by defining the broad course of action.

For example, for an old and very well established company, which had been themarket leader for several years, suddenly faces threat from the emergence ofcompetitors has e.g. Bajaj Scooters faced competition from LML scooters. A course ofaction may involve strategies like expansion diversification, focus, turn around, stability ordivestment phases in the Strategic Management.

Role of strategists:Strategists are individuals or groups who are primarily involved in the formulation,

implementation and evaluation of strategy. For different levels of managers andsometimes even outside experts are involved.a) Board of Directors:

The Board of Directors are the ultimate legal authority which is elected by the

owners of the organization. The board is responsible for providing guidance andestablishing the directives. There may be difference between the role played by theBoards of different Organisations.

The board activities include:To directDiscuss matters of technology collaborationNew product developmentSenior management appointmentsReviewing and screening executive decisions

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Establishmentof Strategicintent

Formulation ofStrategies

Implementationof Strategies

StrategicEvaluation

Strategic Control


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Setting and accomplishing objectivesReviewing and evaluating organisational performance

b) Chief Executive Officer:-A CEO may be designated as the Managing Director, Executive Director,

President or General Manager. He is chief Strategist and plays a major role in decision-making. He is responsible for-Execution of functions of strategic importanceSetting the mission, objectives & goals of the organizationOrganisational leader, Organiser, Implementer, Coordinator and controller.

c) Role of Entrepreneurs:-An Entrepreneur is the person who starts a new business and has a high level of

achievement-motivation. Since the entrepreneurs are the initiators and owners they

provide a sense of direction to the organization and set objectives and formulatesstrategies to achieve them. An entrepreneur usually play all strategic rolessimultaneously.

d) Senior Management:-The Senior Management consists of managers at the highest level of the

managerial hierarchy. Managers at the senior level may serve the Board of Directors onrotational basis, may be as a part of executive committees formed to deal with newproject.

They look after:

ModernizationTechnology upgradationDiversification & expansionPlan implementation & communicationNew product development

Assisting the board & the CEO in the formulation, implementation &evaluation of strategy.

e) Consultants:-There may be Organisations, which do not have corporate planning department

because of small size, infrequent requirements, financial constraints etc. Such

organisations hire external consultants for strategic planning they may be.Individuals

AcademiciansConsultancy companies etc.They provide professional service by specially trained & experienced persons to

advise and assist managers & administrators to improve their performance &effectiveness of their Organisations. e.g. A.F.Ferguson, McKinsey & Co.

Conclusion:

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Thus there are various parties involved in the strategy Formulation, Implementation &evaluation. Strategies give a direction to the company. They coordinate the efforts of allfunctions & all levels towards a predetermined common organisational purpose. Itfacilitates an optimum resource allocation & helps programming all organisationalactivities in advance.

Q.7. What are the different types of Strategies under Corporate- level Strategies (a)Stability (b) Expansion (c) Retrenchment (d) Combination. Discuss its advantages& disadvantages.Ans: CORPORATE LEVEL STRATEGY:-

Corporate level strategies are basically about choice of direction that a firm adoptsin order to achieve its objectives. These strategies guide decision making related toallocating resources among the different businesses of a firm, transferring resources fromone set of business to others and managing & nurturing a portfolio of businesses in sucha way that the overall corporate objectives are achieved.

There are different types of grand strategies.

I) STABILITY STRATEGYIt is a strategy, which aims at an incremental improvement of its functional

performance. It may aim at marginally changing any one aspect of the business:-Customer segment

Alternative TechnologyProduct mix etc.

A stability strategy is adopted becauseIt is less riskyEnvironment faced is relatively unstable.Expansion may not be suitable.

There may be three types of stability strategies.

a) No-change Strategy:-It involves a conclusions decision to do nothing new and to continue with the

present business.

b) Profit Strategy:There may be a situation when the firm tries to sustain its profitability by reducing

investments, cutting costs, raising prices, increasing productivity etc.

c) Pause Strategy:-

22

Proceed withcaution/pausestrategy

No-changeStrategy

Profit strategy


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It is a strategy to give a pause to the blasting expansion strategy in the past or toemove cautiously before moving into a new business aspect.

DISADVANTAGES OF STABILITY STRATEGY

- Acts as a testing ground, before entering into a new venture

- Gives a period of rest if the company had been pursuing aggressive expansion.- Suitable when any expansion may be threatening

II EXPANSIONS STRATEGY:THIS strategy aims at high growth by substantially broadening the scope of one or

more of its businesses. It aims at the improvement of its overall performance in business.

There may be five types of Expansion Strategies.

a) Expansion through concentration:-It is also called as intensification, focus or specialization strategy. It involves

concentration of resources on one or more of a firm business so that it leads toexpansion

b) Expansion through Integration:Integration means combining activities related to present activity of a firm. It is an

expansion strategy which involves integrating to any business activity in the value chainahead or backwards existing business of an organisation.

Potato Chips Distribution

Backward Integration Existing business Forward Integration

c) Expansion through diversification:-Diversification involves a substantial change in the business of the organisation.

Concrete Diversification:- When the new activity is related to existing business activity.

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Cooperation Concentration

Integration

DiversificationInternationalisation


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Marketing Technology Marketing &Related Related Technology

relatedConglomerate diversification: A strategy that plans to enter into an unrelated businessactivity for eg. Godrej locks/Almirahs/Referigerators/Soaps.

d) Expansion through Cooperation:-it is a strategy which works on the possibility of mutual cooperation with

competitors; with the competition also going at the same time.Mergers:-It is a strategy of two or more organisation in which one acquires the assets and liabilitiesof the other in exchange of share or cash.

Takeover:-It is a strategy where an attempt is made by one firm to acquire ownership or

control over another firm against the wishes of the latters management.

Joint venture:-It is a strategy where two or more companies combine to form a new company in

order to make use of the strengths of the partners to gain access to a new business. Eg.

Maruti-Suzuki.Strategic alliance:-Two or more firms unite to pursue a set of agreed upon goals but remain independentsubsequent to the formation of the alliance.

e) Expansion through Internationalisation:-These are the types of expansion strategies that require firms to market their

products beyond the national market.

GlobalStrategy

TransnationalStrategy

InternationalStrategy

MultidomesticStrategy

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Low

High

Conglomerate mergers(2 unrelated firms)Horizontal mergers

(2 firms in same business)

Concentric mergers(2 related firms)Vertical mergers

(2 firms creatingcomplementary products)

Cost Pressures


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Low High

Pressure for local Responsiveness

III RETRENCHMENT STRATEGYRetrenchment strategy is followed when organisation aims at a contraction of the

scope of business. It may involve a total or partial withdrawal from an existing business.A firm may adopt this strategy when faced with adverse external environment eg.Shrinking market share, diminishing profitability, falling sales, emergence of substituteproducts, adverse government policies, tougher competition, changing customer need &preferences etc.It involves strategies like.

a) Turnaround Strategies:-It means devising a strategy to reversing the trend, negatively affecting the

organisation. The strategy implemented internally focus on the ways and means ofreversing the process of decline.

b) Divestment:-It is a strategy which cuts-off the loss- making units or divisions, a product list or

any of its decline causing function etc. it involves a sale of a portion of business. It isadopted in case a turn-around strategy is not successful.

c) Liquidation:-It is a strategy adopted to abandon all its activities completely. It involves closing

down a firm and setting its assets. It is considered to be the last resort for any strategistas it involves both loss to employees as well as to the organisation.Advantages of Retrenchment strategy

To move out of loss-making business.To meet threatening environment (Government/ competitor/ Substitutes/ Economy/Customers needs & preferences).Supports profitable businesses by reallocation of resources.Saves managements efforts by cutting off unprofitable business.

DisadvantagesMay be used a short cut to putting hard workMay divest a potentially profitable business.May be the decline is temporary.IV COMBINATION STRATEGIES:-

It is strategy adopted by an organisation as a mixture of Stability, Expansion &

Retrenchment either at the same time in its different businesses or at different times inthe same business with the aim of improving its performance. In practice it is very difficultto find any organisation that has run its business on a single strategy.

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Simultaneous


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Advantage of Combination Strategy

Big organisation facing complex environment cannot run a single strategy.An organisation has different business.Each business lies in different industry requiring a different response.

CONCLUSION:-Thus, the above discussion shows that there exists various strategic alternatives

before a strategist. Depending on the- Type and nature of business- Growth & future of business- Nature and number of competitors

- External environmental variables- Overall philosophy of the top-management- Internal strengths & weaknesses etc; a given strategy or a combination is adopted

**********************************************************************************************

Q.8: Distinguish between the different approaches in Decision Making.

Ans : DECISION MAKING:

The process of decision making is a very complex and an important function. Itinvolves considering various alternatives to reach to a choice of an alternative whichfacilitates the accomplishment of the organisational objective. Strategy formulationinvolves a choice amongst alternatives. It is the most important task of the seniormanagement to take decision on strategic issue.

Decision-making is of two types

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SequentialSimultaneous &Sequential

Conventional Decision-MakingObjective Setting

Identification alternativesEvaluation of alternativesChoosing the best alternativeRoutine decisionsMiddle & lower levels of management

Strategic Decision-makingMore complex & varied decisions

Extremely difficult choiceResponsibility of the Senior levelmanagementImportant issuesLong term impact.


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APPROACHES TO DECISIONS- MAKING

a) Rational approach:-The rational approach to decision-making involves an intensive effort in all the

steps:-

Identification of Problem

Diagnosis of the problem

Identification of various alternatives

Evaluation of alternatives

Choice of an alternative

Implementation of decision

Review & control

This approach holds that all the steps involve an effort to reach to a quality decision.Extensive information Search and a logical analysis is done by a decision makingfunction.

However such an approach undermines personal & the psychological factorswhich play an important role in the process of decision-making. Not all managers may beable to collect, consider & analysis the details & the information.

b) Human Approach:-The Human approach of Decision Making maintains that the human factors

plays a significant role in decision making. Not all decisions may be made rationally. Apersonal touch, emotional analysis and psychological factors like perception; motivation& attitude etc. may affect the process of Decision- making.

c) Combination:-The third approach to decision- making is a combination of the two approaches

mentioned above.

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(Simon)BoundedRationality

Factors inDecision making

Person Related factor

VariabilityRationality

Creativity

Individual Vs. Groupdecision-making


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Combination ApproachThis approach states that practically decisions are not completely rational or

completely emotional. These are taken in combination of the two. A Strategist tries totake a decision based on an extensive research however he may have some personalfactors affecting his choice of an alternative. Thus its the combination, which is the mostpractical approach of decision-making.

**********************************************************************************************

Q 9. Discuss the Techniques used for Operational Control.

Ans:- Operational Control:-Operational control is aimed at the allocation and use of organisational resources

through an evaluation of the performance of the organisational units an to assess their

contribution to the achievement of organisational objectives.Concerned with actual results or performance

Control

Strategic Control Operational Control

Strategic ControlProactiveContinuous questioning of the basic direction of strategyFocus on external environment

Operational ControlReactive

Allocation & use of organisation resourcesFocus on internal environment

Process of Operational Control

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Human

Approach

Rational

Approach


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TECHNIQUES FOR OPERATIONAL CONTROLThe techniques for Operational control are based on organisatonal appraisal i.e.

internal environmental performance. Broadly speaking there are three sets ofTechniques.

a) INTERNAL ANALYSIS:-it is the analysis of the internal environment of the organisation strengths &

weaknesses etc. this analysis can be done by various methods:-

i) Value-chain Analysis:-Value chain is the sequence of activities starting from production to marketing.

The value chain analysis focuses on a set of these inter-related activities undertaken inan organisation. The importance of this technique is that the total tasks of an organisationare segregated into different parts and then evaluated.

ii) Quantitative Analysis:-It is an operational technique which makes use of a physical unit in quantitative

terms for the purpose of performance assessment. It is one of the most popularly usedmethods.

Quantitative techniques

Financial parameters Physical parametersRatio Analysis Computation of absenteeismEconomic value-added (EVA) Market ranking

Activity based costing (ABC) Rate of advertising recallTotal cycle time of production

b) COMPARATIVE ANALYSIS:-

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Comparative Analysis

Strategy /Planobjectives

Settingstandards ofperformance

Actualperformance

Measurementof actualperformance

ReformulateStrategy/plan

Check standards Checkperformance

AnalysingVariance

Feedback

Internal Analysis

ComprehensiveAnalysis


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The technique mentioned aims at comparing the performance of an organisationwith its past performance. This comparison helps in the operational control. There existsthree techniques:-

i) Historical Analysis:-The technique of Historical analysis is a very easy to implement and a very

frequently used technique. This aims at comparing the present performance of anorganisation uses past date i.e. historical data for analysis of comparison.

ii) Industry Norms:-This method of comparison uses the standards of leading firms in the same

industry to be used for comparison with the performance achieved by an organisation.

Present performance Industry norms/averageOf an organisation. of performance

iii) Bench marketing:-

Bench marketing is a comparative technique, where the performance of anorganisation is measured against the best practices in an area.

Performance The best practicesOf an organisation in the Industry

c) COMPREHENSIVE ANALYSIS:-As the name suggests, it is a technique, which encompasses total activities of an

organisation for the purpose of analysis.i) Balanced Scorecard:-

This method is based on the identification of four key performance measures of customer perspective, internal business perspective, innovation & learning perspective &financial perspective. The performance of an organisation is measured taking intoaccount various parameters.

ii) Key Factor Rating:-It is a very comprehensive method taking a holistic view of the organisational

performance. It takes into account key factors in several areas & then evaluatesperformance.

********************************************************************************************

30

VS

VS


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Q.10 (a) Write a short note on Industry Analysis.

Ans:- INDUSTRY ANALYSIS:-Because Organisations are open system, a number of environment factors

influence these inevitably that is suppliers, competitors and buyers.

Suppliers :- They supply the goods

Competitors:- They have impact on out business. Their every step influence us.

Buyers:- By whom we makes profit.The industrial environment of the firm.

INTERNATIONAL ENVIRONMENT

INDUSTRY CHARACTERISTICS THAT COULD IMPACT FIRMS PERFORMANCEThe number of firms in the industryThe level and pattern of Promotional expenditure.The rate and nature of technological competition.The relative size of firm.Consumer preferences for the product and for related products.The rate of demand growth.The extent of demand growth.The price behaviour of the leading firm.The minimum efficient scale of production.Buyers switching costs.Demand- side economies of scale.

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The industry env.

Suppliers

Competitors

Buyers

Economic Env.

Social & CulturalEnv.

Political Env.

Legal Env..

Technological Env.

Natural Env.


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Specificity of plant and equipment to industry etc.

i) Threats of Entryi) The economies of scaleii) Brand identificationiii) Govt. Limitations (License requirement)

ii) Powerful Buyers:-When buyer can force down prices.

iii) Powerful Suppliers:When Suppliers can force buyers to pay higher prices

iv) Substitute Products:-By placing a ceiling on the price it can change to substitute products or services and limitthe potential of an industry.

V) Jockeying for Position:-

The strongest forces which influence the profitability of a firm become the determiningfactors in strategy formulation.

Usefulness of Industry Analysis :-

A. Industry AttractivenessB. Competitive Position.

Industry Attractiveness:-

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Michaelportersanalysis

Threats ofentry

PowerfulSuppliers

Powerfulbuyers

SubstituteProducts

Jockeyingfor position


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a) Growth potentialb) Profitability of the industryc) Relative abilities of players.

Competitive Position:-

Where does the firm stand in comparison to others ina particular Industry.

INDUSTRY ANALYSIS

1. Basic Features:-Size of IndustryProduct offeringVolume

2. Industry Environment:-Fragmented IndustryEmerging Industry

Nature of IndustryDeclining IndustryGlobal Industry

3. Industry Structure:Market SizeNumber of playersShares of playersNature of competitions.

4. Industry attractiveness:-Profit PotentialGrowth Prospects.

Barriers in industry entry5. Industry performance:-

ProductionSalesProfitability

6. Industry Practices:-Product PolicyPricing StrategiesPromotion PolicyDistribution Policy etc.

7. Future Scenario:-

Change in consumer PreferencesProduct innovationsEntry or exit of firms in a market.Rate of growth etc.

Conclusion:-For any strategist to plan for a policy for future requires a complete internal as well

as external analysis. In the external environmental analysis special effort is put on

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Industry Analysis. The analysis of the Industry includes the overall variables of theindustry includes the overall variables of the industry incorporating its size, nature,performance, attractiveness, relative market share etc. by analysing the industry, aStrategist can very well evaluate whether it should enter into a given business withinvestments or refrain from going ahead.

Threat of entry:-

A new entrant in an industry represents a competitive threat for established firm(Called as Incumbents) but the likelihood of new entrant is functional of two factors.

Major Forces in this are:-

Economics of scale:-

New entrants have to enter the industry in big way to reap economies of scale. There willbe a risk of a strong retaliation to over come these barriers. Auto mobile manufacturershave customized their product.

Expected retaliation:-Retaliation (Strong) can be expected if incumbent has a major share in industry butindustry growth is slow.

Product differentiation:-Product differentiation refers to physical/perceptional differences that make a productspecial/Unique. Companies such as Pepsi, Coke spend huge amount on advertisementand create emotional bondings. It is very difficult to switch customers from them.

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NewEntrant

Barriersto entry

Retaliation from

Incumbents


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Capital Requirement:-

Competing in new Industry needs huge capital investment. Even when competing in anew industry is attractive, the huge capital needed for successful market entry may

create a barrier.

Cost disadvantages;-

Established companies have cost advantages that new entrants can not duplicate e.g.favourable locations Mc Donalds.

Switching costs:-If a buyer were to change his supplies from an established supplier to new comer thencost may have to be paid in form of new handling equipment, training cost etc.

b) Intensity of Rivalry:-Firms operating within an industry are mutually dependent. Action takes by one firmusually attract competitive retaliation in from of price cutting modifications in product orpromotion etc. This variable studies the extent of competition amongst the competingfirms.

c) Powerful suppliers:-A supplier is said to be powerful when:-

Strong Supplier:-

It is dominated by a few large companies & is more concentrated than the industryto which it sells Selling to fragmented buyers means that concentrated suppliers will beable to exert great influence over price, quality etc. for e.g. pharmaceutical industry.

No Substitute:-If there are no substitute products to buyers and if they have no alternative

sources of supply then all buyers are weak in relation to existing suppliers.

Buyers Importance as a Customer:-If the buying industry is not an important customer of the supplier then the supplier

is in a strong position for example, McDonald is a much more important customer of soft

drink producer than a small disc would be.

Suppliers ability to enter the buying Industry:-When supplier can enter the Industry of their customer, then their bargaining

power is increased. If the firm has its own production, R & D and has no distributionchannel, they can put great pressure on buyers, by threatening them to enter the market.

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d) Powerful buyers:-Customers can force price down demanding better quality or more service & play

competition off against each other, in case they are stronger that the suppliers.

Buyers Concentration:-Buyers are concentrated at one place or buy in large quantities related to total

industry sales. In such scenario buyers can get deals stuck in their favour. For e.g.Computer & Automobile industry.

Price Sensitivity:-If the product that the buyers purchase represent a large portion of buyers cost. In

such a case, price is an important issue for buyers. They all are keen to bargain forfavourable terms & indulge in selective buying. For e.g. Refrigerator v/s Cigarettes.

Standardized products:-If the products that the buyers purchase are standardized, in such case buyers

have a tendency to play one seller against another. For example steel is a standardized

product, all automobile like Maruti, Hyundai can have bargaining power for that.

e) Threat of Substitute products:

Substitute products are different goods or services from outside a given industry thatperform similar or the same function as a product that the industry produces. Thepresence of substitute products poses a threat on prices that can be changed by anindustry. When relative price of substitute product rise, for example Tea & Coffee, plasticbag vs paper beg, Oil vs LPG. Customers tend to switch their localities towards thesubstitute products because of low price.

CONCLUSION:After having a view of Porters model we conclude that how a firm can do its competitiveanalysis & which can be done to avoid this by studying porters five forces and makeeffective strategic planning.

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VS

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Future objectivewhere will emphasisin future?

Current StrategyHow are we currentlycompeting?

AssumptionsAre we operatingunder a status quo?

CapabilitiesWhat are our strengths& weakness?

ResponseWhat will ourcompetitors do infuture?


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GURU HARKRISHAN INSTITUTE OF MANAGEMENTBUSINESS POLICY & STRAEGIC ANALYSIS (CP-301)

Ques:- What do you mean by competitive advantage? What are the determinants of nationalcompetitive advantage? Explain approaches and types of competitive advantage?

Ans:- Definition:- Competitive Advantage a situation in which there is a match between thedistinctive competencies of a firm and the factors critical for success within its industry thatpermits the firm to out per form competitors. Competitive Advantage profile a statement showingcompetitive position of an organization in the market place. It is also known as Strategic

Advantage.

Dynamics of National Competitive Advantage:-National Competitive Advantage:- Competitive advantage to a country in relation to othercountries. Like each organization , each country is known in terms of its competitive advantage.For ex.:- USA of computers, credit cards, Japan for electronic & automobiles, Germany forprinting Presses, Switzer land for pharmaceuticals and India for software professionals. Thequestion is what factors have contributed to generate advantage to these countries in specificareas? The answer of this question is important for the purpose of generating competitiveadvantage at the global level.

According to M.Parter has categories various national attributes in four groups.

1. Factor Condition:- Factor that provide base for undertaking various business activities.These resources can be divide into five broad categories-human resources, knowledgeresource, physic resource, capital resource & infrastructure.

2. Demand Condition:- The nature of demand conditions for an organizations or industrysproduct services in the country is important because it determines the rate of and nature

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Firm Strategy

structure & rivalry

Related &

supportedIndustries

Factor conditionsDemand Condition


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of improvement & innovation by the organisations. These factors either train organisationsfor world-class competitive or fail to adequately prepare them to competent in the globalmarket place

3. Related & supporting Industries:- Apart from the main industry in which contextcompetitive advantage is talked about, the conditions of related & supporting industriesalso determine industrys competitive advantage. However the Long run , the relationshipbetween main industry & related & supporting industries becomes reciprocal. For ex.:- Ifthe main Industry is developed, the relate industries will also develop with a time lag. Inthe same way, the related industries will provide support to the further development of themain industry.

4. Firmstrategy,structure & Rivalry:- Differences in strategy, structure & rivalry createadvantages or disadvantages to firms. Competing in different types of industries in anation. The aggregate of these determines national competitive advantage. The waydifferent firms shape their strategy- ranging from a broad outlook and long-termprofitability to narrow range and short term profitability-determine how the nation will becompetitive. For ex.:- US companies rank return on investment, share price increase, &market share in that order.

Approaches for Competitive Advantage:-These approaches are as follows:-1. Generic competitive strategy2. STRATEGIC intent3. Bench Marketing4. Synergistic approach5. critical success factors approach.

1. Generic competitive strategy:- A basic strategy based on the principle that the achievement ofcompetitive advantage is at the case of superior market strategy.

COST DIFFERENTIATION

BROAD Competitive& Scope

NARROW

Competitive Base

(a) Overall coat leadership:- an organizations position as the Industrys least costproducer in broadly defined markets or a wide mix of products.

(b) Cost Focus:- a situation in which an organisation focus on a narrow marketsegment & offers product at the lower price than its competitors based on cost

advantage.(c) Differentiation:- is the act of designing a set of meaning full differences of

distinguish the organisations offerings from competitors offerings(d) Focused Differentiation:- differentiation of activities to generate competitive

advantage in a narrowly defined market/ coustmor segment.II. Strategic Intent:- ambitions and obsession for winning which are used a means forgenerating competitive advantage.

According to Hamel & Prahalad:-(a) Building layers of advantage(b) Searching for loose bricks

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Overall cost leadership Differentiation

Cost Focus Focused

Different ion


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(c) Changing the rules for engagement(d) CollaboratingIII. Bench Marking:- It is another tool which can be used to generate competitive advantage. Itis a process of identifying, understanding, and adapting outstanding practices from within thesame organization or from other business to help improve performance.Types of Benchmarking:-1. Product Benchmarking2. Competitive bench marking3. process bench marking4. strategic benchmarking5. global benchmarking.

IV. Synergic Approach:- can be used as a means do generating competitive advantage to anorganisation if the managers are sufficiently aware about how synergistic effect is developed.Synergy is the process of putting two or more elements together to achieve a sum total greaterthan the sum total of individual elements separately. This effect is described as 2+2=5 effect.

Areas of synergistic effect:-- Production synergy- Marketing synergy- Research development synergy- Financial synergy- General management synergy

V. Critical Success factors Approach:- characteristics, conditions or variables which whensustained can have significant impact on the success of an organisation competing in aparticular industry.

Organisational Critical success factors:-

Mckinsey 7s framework:-Strategy, Structure, systems, staffs, skills, style, shared values

Types of competitive Advantage:-

FEW MANY

LARGE

Size of advantageSMALL

Number of approaches of competitive advantage1. Volume:- volume of competitive advantage exists when organisation has very few

advantages but these are quite large in volume.For ex.:- In luxury car segment, product differentiation in terms of style, comfort, design etc. is

used for generating competitive advantage and cost becomes secondary.2. Specialized:- specialized competitive advantage exists when an organisation has theopportunity to adopt many approaches together to generate competitive advantage.

For ex.:- Organisations manufacturing specialized machinery for selected market-segmentcan combine both approaches-low cost & product different ion- to be competitive.3. stalemated:- competitive advantage exists when an organisation operates in an industry in

which meaningful product, differentiation is not possible & industrys cost structure is quiterigid.

For ex.:- sugar industry, product differentiation does not exist.4. Fragmented:- competitive advantage exists an organisation has many opportunities but

each opportunity has limited payoff.

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Volume Specialized

Stalemated Fragmented


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5. For ex. Restaurants.

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