Mubeena Ibrahim

A123962

Associates Degree in HRM- Unit 07: Business Strategies

Table of Contents
Strategic Contexts (P1.1)....................................................................................4
P1.1 Mission, Vision, Objectives, Goals and Core competencies of Flipkart Maldives......4
Issues involved in strategic planning (P1.2).............................................................5
P1.2 Limitations of strategic planning.................................................................5
BCG growth-share matrix (P1.3)...........................................................................6
Organizational audit for Flipkart Maldives (P2.1)......................................................7
P2.1 SWOT analysis of Flipkart Maldives............................................................7
Environmental audit for Flipkart Maldives (P2.2)......................................................8
P2.2 PESTEL analysis of Flipkart Maldives..........................................................8
Significance of stakeholders analysis (P2.3).............................................................9
P2.3 Importance of stakeholder analysis..............................................................9
New strategy for Flipkart Maldives (P2.4).............................................................10
P2.4 New strategy........................................................................................10
Possible alternative strategies relating to substantive growth, limited growth or retrenchment
(P3.1)..........................................................................................................10
P3.1.1 Market entry and expand strategies..........................................................10
P3.1.2 Best possible alternative strategy for Flipkart to enter Maldivian market............11
Risks and Uncertainty (P3.2).............................................................................11
P3.2.1 Different types of risks and uncertainty for Flipkart.....................................11
P3.2.2 Future strategy for Flipkart Maldives explained using Ansoff matrix................12
Roles and responsibilities for strategy implementation (P4.1).....................................12
P4.1.1 Importance of communication during strategic implementation.......................12
P4.1.2 - Differences between upward and downward communication........................12
Requirements to implement a new strategy for Flipkart Maldives (P4.2)........................13
P4.2 Resources required to implement a new strategy evaluated based on money, time and
information................................................................................................13
Targets and timescales for achievement in Flipkart investment in Maldives (P4.3)...........15
P4.3 Benchmarked outcomes in a given time period in relation to:...............................15
Conclusion....................................................................................................16
References....................................................................................................16

Strategic Contexts (P1.1)

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Strategic planning is important for any organization. A clear understanding of the process of
strategic planning is crucial for successful implementation of the same. This chapter focuses
on mission, vision, objectives, goals and core competencies of TNT, issues involved in
strategic planning and also different planning techniques.
The strategy as the long-term direction of an organisation. According to this definition, the
strategy has long-term direction of achieving organisational goals.
P1.1 Mission, Vision, Objectives, Goals and Core competencies of Flipkart Maldives
The mission statement aims to provide employees and stakeholders with clarity about the
overriding purpose of the organisation (Johnson et al, 2011).
The mission of Flipkart Maldives is to put together a portal where community can come up to
and discover quality products of a wide range online, making their shopping experience
delightful.
The vision statement is concerned with the desired future state of the organisation Vision
statement of the company should answer to the question of What do we want to achieve?
(Johnson et al, 2011).
The vision of Flipkart Maldives is providing a delightful shopping experience to customers.
Objectives are the desired outcomes of the organisation. Flipkarts top-level objective is to
achieve profitable growth.
Other objectives of Flipkart Maldives include;
Providing quality products Providing top quality products to all the customers of Flipkart.
Generating a gratifying experience for customers Providing the most relevant and satisfying
online shopping experience, getting them what they want as quickly as possible.
The best customer relation Providing the best customer service by attending to their needs
24/7.
The goals explain the way in which the organization is going to achieve its mission.
Organisational goals and aims can be identified as similar concepts.
Goals of Flipkart Maldives are;
To make delightful customers
Provide Innovative top quality Products
Increase Profits
Develop and expand the business
Core competencies differentiate the organisation from its competitors. Skills, resources, and
activities which cannot be imitated by other competitors can be identified as core
competencies of the organisation. Flipkart has many core competencies and it has led to
achieve the competitive advantage through available resources. Here are some of the core
competencies of Flipkart Maldives;
Delighting customers and excellent customer service
Alongside our quality products, service, price and selection, we must go the more miles to
provide customers well-informed recommendation about commodities and to facilitate them

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utilize those products to their greatest benefit. As our top most achievement would be
delightful customers.
Giving back to our communities
An important part of the Flipkart Maldives is giving our time, talents, energy and income to
worthwhile causes in our communities and society.
Cost efficiency
Our products would be reasonably priced, offering high quality low priced goods
Innovation in terms of technology
To make our portal the most successful, we would be introducing innovative technology
Return policy
Provide efficient return policies.
Issues involved in strategic planning (P1.2)
Strategic planning involves with many issues. The five major issues which involve with
strategic planning are, confusing strategy with the strategic plan, detachment from reality,
paralysis by analysis, lack of ownership, and dampening of innovation (Sadler (2003).
P1.2 Limitations of strategic planning
Knowledge

in this stage
objectives are
set

Crafting
Strategy
then
comes

the stage
where strategy
is shaped

afterwards the
strategy is
implemented

Executing
the
strategy

Setting
Objectives

Monitoring
Developme
this is the last
nts
stage and here
the
developments
are evaluated

Evidence
There can be confusion with the existing strategies at the stage of strategic planning.
Managers may feel that the strategic planning is the planning of same strategies which they
are practicing now. Also detachment from reality is also another issue. This basically happens
because of the lack of involvement for the strategic planning of employees. The next issue is
paralysis by analysis. Strategic planning can be over-detailed because of the extensive
analysis. Lack of ownership is another problem. Most of strategies are planned by the
corporate planning department or by the senior management. Thus, it can be said that
strategic planning does not have a wide spread of ownership within the organisation. The
final argument is that strategic planning is dampening of innovation. This mainly happen
since strategic planning introduces many strict controls to the organisation and it limits the
flexibility of the organisation (Sadler, 2003).
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BCG growth-share matrix (P1.3)

P1.3 Benefits and drawbacks of BCG growth-share matrix with context of Flipkart Maldives
BCG Matrix for Cookware

Pressure Cooker

Induction Bottom Cookware

Electronic Cooker

Old types of Pots and Pans

Question Mark (High Growth, Low Market Share)

Most businesses start as question marks. They will absorb great amounts of cash if market
share remains unchanged or low. These have the potential to become star and eventually Cash
Cow, but can also become Dogs. As Pressure cookers are not very famous in Maldivian
market this product falls in the question mark.
Star (High Growth, High Market Share)
Stars are leaders in business. These require heavy investment to remain its large market share.
And also these lead to large amounts of cash consumption and cash generation as well. Today
everybody has a busy schedule so everyone wants easier ways. So the induction bottom
cookers are a huge success.
Cash Cows (Low Growth, High Market Share)
These are foundation of the company and Stars of yesterday. Cash Cows generate more cash
than other products thus extract profits by investing as little cash as possible. Everyone
prefers an electronic cooker as its easier to handle and saves time. So this product gives the
most profit among other cookware.
Dogs (Low Growth, Low Market Share)
These products do not have a market or the market share is very low. These give no profit but
cost the company. The old style pots and pans are out of fashion now and rarely people use
them. So this cookware falls in the Dog.
Benefits
The BCG matrix serves as a simple tool for viewing a corporation's business portfolio at a
glance, and also serves as a starting point for discussing resource allocation among strategic
business units.here are some of the benefits of BCG matrix to Flipkart Maldives;

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Fliplkart can use BCG matrix when assessing and adjusting the company's present portfolio
and also it can evaluate the development of different segments and products using BCGMatrix.
It gives a base for management to choose and get ready for future activities.
Drawbacks
BCG Matrix uses only two dimensions and overlooks many other factors. The framework
assumes that each business unit is independent of the others. The matrix depends heavily
upon the breadth of the definition of the market. Problems of getting data on market share
and market growth. High market share does not mean profits all the time. Business with low
market share can be profitable too.

Organizational audit for Flipkart Maldives (P2.1)

P2.1 SWOT analysis of Flipkart Maldives
A SWOT analysis is used to analyze an organizations microenvironment. Further, it can be
extended to talk about macro environment as well (Thompson, 2001).
SWOT diagram
Strengths:
1.
Strong Brand value
2.
Innovative payment methods
4.
Efficient return policy

Weaknesses:
Uncertainty when delivering goods
Products are intangible

1
Opportunities:

Threats:

1.
Online fashion and apparel business
2.
Growth in online retail sector in
Maldives
Less competition

Technology- website crashing

Natural Disaster- delaying delivery
Emerging companies
1

Analysis
Strengths
Strong Brand value: As Flipkart is already well established it has a strong brand value and
image that would gain more loyal customers easily.
Innovative payment methods: Flipkart has easy and innovative payment methods making it
easier for customers.
Efficient return policy: As the goods cannot be touched or felt, the customers hesitate to buy
but Flipkarts return policy helps to gain customers trust and confidence.

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Weaknesses
Uncertainty when delivering goods: Natural causes or other man made causes may delay the
delivery losing the customer trust.
Products are intangible: Products cannot be touched so that customers hesitate to buy.
Environmental audit for Flipkart Maldives (P2.2)
P2.2 PESTEL analysis of Flipkart Maldives
An environmental audit gives an idea about the environment that one organization operates.
PESTEL factors include political, economic, social, technological, environmental and legal
factors (Thompson, 2001).
PESTEL analysis
Political and legal analysis
Political factors include government regulations and legal issues and define both formal and
informal rules under which firm must operate. And it is claimed that the political force is
probably the most turbulent force in the environment (Fahey & Narayanan 1986). When
operating in Maldives Flipkart must obey the rules and regulation of Maldives. At now the
country does not have a specific law regarding E-Commerce as its a newly emerging
industry.
Economic analysis
Any development in the economic part of a countrys environment could have significant
impacts on the company and their activities. These factors include the total GNP trend, GDP
per head, inflation rate, exchange rate, energy and raw materials availability and cost,
employment level, interest rate, monetary and fiscal policies, banking policies an investment
and so on. As Maldivian economy is reasonably stable compare to other South Asian
countries, this country would be an ideal place to start Flipkarts business. Though the
countrys inflations are raising a bit the unemployment rate in Maldives is low. This increases
customers purchasing power.
Social and cultural analysis
To understand the social and cultural environment involves close analysis of the society.
Factors that are important in this analysis are:
Consumer lifestyles: Maldivian community have a high spending nature
Environmental issues: The community is very much aware about the environmental change.
Flipkart must provide environment friendly products
Demographic issues: Maldives have a young population, meaning there are more youth in the
country. So Flipkart can increase youth products.
Education: the Maldivian literacy level is high and most of the people are educated.
Immigration/Emigration: There are a lot of foreigners working here.
Religion: Maldives is a 100% Muslim country.
Technological analysis
Technological factors are important for organizations like Flipkart, which depends on online
business. Newest inventions and innovations in E-Commerce sector can be exploited by
Flipkart to deliver its services to the customers in the most effective way.
Environmental Analysis

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Environmental factors are important in todays business world, since the focus is on
sustainable development. And also Maldives is progressing towards to make the nation a
carbon free nation. Therefore, Flipkart should address various environmental factors that have
an effect on its organizational survival.
(Legal factor explained with Political factors)
Significance of stakeholders analysis (P2.3)
P2.3 Importance of stakeholder analysis
Stakeholders are important for any organization. Stakeholder can be defined as a party that
affects or can be affected by the actions of the business (Lynch, 1999). Stakeholders can be
government, employees, customers, suppliers, creditors, community, trade unions, etc
(Thompson, 2001).Stakeholder includes a whole array of parties, which are crucial for an
organization. Hence, when new strategies are to be developed for an organization, a clear
understanding of its stakeholders is necessary. In order to gain knowledge on an
organizations stakeholders, a stakeholder analysis can be done.
A stakeholder analysis for Flipkart Maldives
Some of the important stake holders of Flipkart Maldives can be:
Customers
Employees
Shareholders
Financers/ Banks
Stakeholder analysis of Flipkart Maldives (the influence-importance matrix)

Customers

Financers/ Banks

Stakeholde
rs

Low
Importance
Employees

Shareholders

Hig
h

Low
Influence

Hig
h

Customer of Flipkart has high importance and high influence as the business is based on
customers preferences. If there are no customers, no business is there. Flipkart ensures to
keep customers delightful.
Shareholders has high influence but low importance. They should get their share of profits
accordingly and they should be informed the development of the company.
Financers or banks have low influence but high importance. The company has to make them
happy to get financing assistance from them.
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The employee has low influence and low importance. But the company has to provide
reasonable salary and development programs for employees to motivate and maintain a good
relationship with them.
New strategy for Flipkart Maldives (P2.4)
P2.4 New strategy
Prepaid Wallet feature
This is a pre-paid credit system which the customers can use to maintain a balance of money
with the Flipkart and can be redeemed as they buy online. This innovative strategy allows
shoppers to store money on the site and use it to purchase items, without having to reach for
their credit card for each transaction.
What they have to do:
Fill their pre-paid wallet by any amount they desire by making a payment once
This would be added as pre-paid credit to the customers account
The balance would be displayed under the shopping cart
Now they can use this pre-paid balance to make multiple purchases on the Flipkart
The benefits of the strategy for the customers of Flipkart are:
One payment is enough for multiple times of shopping
Can enjoy a simpler and faster checkout process
No need to fill out financial details each time
Saves time
The benefits of the strategy for Flipkart Maldives are:
Brings in repeated customers which leads to increase in loyal customers
Gain new customers as the strategy is time saving and easier
Gain more profit as more customers will be attracted to the portal because of the strategy
Possible alternative strategies relating to substantive growth, limited growth or
retrenchment (P3.1)
P3.1.1 Market entry and expand strategies
An organization should expand its business whenever possible. Various ways and methods
can be used to expand an organization.
Growth
The internal development of a companys resources is referred to as growth. Growth often
takes a large amount of capital a new business may not have.
Merger and acquisition
Merger is the combination of two previously separate organizations, typically as more or less
equal partners. The acquisition involves one firm taking over the ownership of another
(Johnson et al, 2011).
Strategic alliances
An arrangement between two companies that have decided to share resources to undertake a
specific, mutually beneficial project.
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Franchising
Franchising is when a company that already has a successful product or service (franchisor)
licenses its trademark and method of doing business to another company or individual
(franchisee) in exchange for a franchise fee and a percentage of profit as royalty payment.
Retrenchment is always a remedial action. These remedial actions are taken at the stage of the
inefficiency, economic recession, or strong competition. In case of inefficiency, the
organization has to take three retrenchment strategies namely assets reduction strategy, cost
reduction strategy and revenue generation strategy.
P3.1.2 Best possible alternative strategy for Flipkart to enter Maldivian market
The human resource of the Flipkart is one of the critical resources, which pave the way for
achieving competitive advantage. The skill developments of employees will lead for quality
service and finally it will hold to gain the competitive advantage thorough available resources
(Wilson and Gilligan, 2005). The aim of the Flipkart is to make superior profit and
performance. In this situation the best possible alternative strategy for Flipkart to enter
Maldivian market would be strategic alliance.
Justification
A strategic alliance is less involved and less permanent in which two companies typically
pool resources to create a separate business entity. In a strategic alliance, each company
maintains its autonomy while gaining a new opportunity. A strategic alliance could help a
company develop a more effective process, expand into a new market or develop an
advantage over a competitor, among other possibilities.
Risks and Uncertainty (P3.2)
P3.2.1 Different types of risks and uncertainty for Flipkart
Identifying risk entails an awareness of current business risks that might be facing the
organization. Business risks are typically classified as follows:
Strategic risks: These are industrial risks that arise from competing in a specific industry and
can include macroeconomic risks, transaction risks, and investor relations.
Financial risks: These are derived from potential losses in the financial accounts of a
business. They can include risks from investing capital, risks to principal or interest value, or
risks to other business related transactions.
Operational risks: Risks that arise during the day-to-day operations of the business. This
varies considerably amongst different industries. Like, risks concerning the delivering of
products to customers.
Legal risks: The extent of a business' compliance with all applicable laws would dictate the
overall impact of legal risks on decision making.
Once the management of Flipkart has identified the appropriate risk category that may impact
upon a certain decision, it may go about quantifying these risks. In other words, management
will establish the costs incurred if a risky outcome were to happen.
P3.2.2 Future strategy for Flipkart Maldives explained using Ansoff matrix
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The Ansoff Matrix can help a firm devise a

product-market growth strategy by focusing
on four growth alternatives: Market
Penetration, Market Development, Product
Development, and Diversification (Spencer,
2013).
Roles and responsibilities for strategy
implementation (P4.1)
Whatever the strategy that is planned,
implementation of it is the most critical
stage. Proper ways and methods should be exploited in order to match the plan and also the
successful implementation of the plan.
P4.1.1 Importance of communication during strategic implementation
Communication is essential to building relationships between staff members and between
levels of employees, both on a professional and social level. An atmosphere of open
communication makes it safe for employees to express their ideas; as a result, you will have
the benefit of your staff's combined experience in coming up with innovative solutions.
Communication prevents employees from feeling isolated, builds teamwork, and creates a
more collegial atmosphere in the office. When relationships are strong, employees are better
able to trust one another and work together more effectively.
P4.1.2 - Differences between upward and downward communication
Downward communication
Downward communication flows from individuals in higher levels of the organization to
those at owner levels. Managers pass the information down to all employees. This
information includes the companys policies, procedures, and manuals, information needed to
conduct work and company publications. However, the message that sent by top-level
management is intact by the time it reaches the entry-level employee. There is several reasons
why this information loss occurs. First, managers tend to rely heavily on written channels.
This may cause the overloaded subordinate to ignore some messages. (halim, 2009).
Upward communication
Upward communication consists of messages sent up the line from subordinates to
managers. It is used to provide subordinates an opportunity or means to convey information
to their superior. This means information move from lower level to higher level members.
Openness to ideas and input from people in the lower levels of the organizations is often the
hallmark of a healthy and enjoyable organization. Upward communication from subordinates
to managers usually falls into some categories. For example, personal reports of performance,
problems or concerns. Next, reports about others and their performance, problems or
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concerns. Reactions to organizational policies and practices. Lastly, suggestion about what
tasks need to be done and how they can be accomplished. (halim, 2009)
The usefulness of upward and downward communication
Information, the lifeblood of any organization, needs to flow freely to be effective.
Successful management requires downward communication to upward communication to
superiors, and horizontal communication to peers in other divisions. Getting a task done,
perhaps through delegation, is just one aspect of the manager's job. Obtaining the resources to
do that job, letting others know what is going on, and coordinating with others are also
crucial skills. These skills keep the organization working, and enhance the visibility of the
manager and her division, thus ensuring continued support and promotion.
Downward communication is more than passing on information to subordinates. It may
involve effectively managing the tone of the message, as well as showing skill in delegation
to ensure the job is done effectively by the right person. In upward communication, tone is
even more crucial, as are timing, strategy, and audience, adaptation In neither case can the
manager operate on automatic as the messages are sent out. (Waltman, 2014).
Requirements to implement a new strategy for Flipkart Maldives (P4.2)
P4.2 Resources required to implement a new strategy evaluated based on money, time
and information
Resource allocation is an integral part of implementing strategy. Resources need to be
prioritised with the best opportunities in the most effective way. The best opportunities can be
ranked by an organisation using appropriate criteria and weighing up risk and reward. When a
strategy choice has been made it is also necessary to closely monitor the results of that
strategy in order to consider future resource allocation. The organisation should by then have
decided on the risks it is prepared to take and the acceptable returns of capital employed. The
key resources in the allocation process are Finance, Human Resources, Materials and Time.
Finance
In order to implement any strategic plan finance is always going to be a key resource
requirement. A budget can help set out the finance needed for the plan and can often be
contentious. A capital budget will form part of the process of change when an organisation
chooses to invest heavily in its equipment. A departmental budget will be important to the
different divisions of an organisation who are fighting for their share of organisational
resources. A revenue budget is important when the organisation is thinking about making
finance available for management of new areas of development.
All of an organisations programmes, plans and policies will carry financial implications
therefore careful financial planning will be essential in order to successfully implement a
strategy.
Human Resources
Human Resource planning is one of an organisations most important resourcing areas and
will only be effective if personnel are regarded as a key factor by management. Human
Resource planning should be considered in the same way as investing in new products, that
is, strategically.
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One of the key elements in HR planning is to have a working organisational structure. When
designing the structure it is necessary to differentiate tasks into jobs linked with supervisory
and management control.
Staff planning is also necessary in order to identify the types of structures needed in an
organisation along with the number of employees required. HR planning can be based on
statistics and forecasts while staff planning can be based around corporate planning ie. If a
product is to be phased out and a new product introduced then it may be necessary to develop
a training plan or prepare for redundancies, or on the other hand recruitment.
Materials
In order to continue operating an organisation will always require a regular throughput of
materials. The management of materials is a difficult issue for an organisation but is a crucial
resource one. Over the years several different approaches to stock control and inventory have
emerged to help with this process.
It is important to appreciate the importance of material resources and its effects on operations.
Strategy is as dependant on effective operations as operations are on effective strategy, this
requires a top to bottom integrated emphasis on quality standards within an organisation.
Time
Time like every other resource should be allocated in a well organised way. When making
decisions about resource utilisation to future strategies managers can often neglect the
importance of time and yet time is of the essence in strategic implementation.
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
organisations 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 control 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 organisation 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.
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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.
Targets and timescales for achievement in Flipkart investment in Maldives (P4.3)
P4.3 Benchmarked outcomes in a given time period in relation to:
Corporate targets-

Operational targets-

Individual targets-

Conclusion
For companies from e-commerce industry, there are a lot of business opportunities in the
Maldives. The Flipkart would gain a positive effect on customer trust, if the quality of the
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products they purchase from Flipkart is standardized, so they can trust the company. And if
Flipkart build a strategic alliance with a strong logistic company, this alliance ensures that the
company can deliver its products fast and safe to the new customers.
Flipkart can use emails in order to communicate with consumers and suppliers, and websites
for advertising, processing and establishing electronic transactions.
Every half year there are such important changes in technology that it is impossible to
anticipate what will happen in the next ten years. E-commerce has become in recent years a
way of sale/purchase of goods and services.

References
(n.d.).
Associates, B. (2009). Strategy Implementation. Birnbaum Associates.
E-Book. (n.d.). Business Strategy: Course Book.
esay, u. (2011). The Roles And Responsibilities For Strategic
Implementation. uk essay.
halim. (2009). The Difference Between Downward and Upward
Communication. http://theblythedolls.blogspot.com.
Spencer, T. (2013, October 9). ansoff-matrix. Retrieved 2014, from
www.spencertom.com:
http://www.spencertom.com/2013/10/09/ansoffmatrix/#.VFkGwDSUcrU
Waltman, J. L. (2014). UPWARD AND DOWNWARD .
referenceforbusiness.com.

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