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Thursday, December 22, 2011

MGT603 Assignment No 2 Solution


Semester “Fall 2011” 
Strategic Management (MGT603) 

Assignment No. 02               Marks: 30 

Let  us  assume  that  a  sports  company  is  operating  in  Pakistan  with  the  name  “Indus 
Sports”. Indus Sports manufactures sports goods of both indoor and outdoor games. You 
are  required  to  formulate  strategies  based  on  the  following  SWOT  Analysis  of  the 
company.  For  your  convenience,  the  boxes  of  the  four  groups  of  strategies  (shaded  as 
yellow) are left vacant for you to fill. 


TOWS Matrix for Indus Sports


Strengths-S

• Experienced top management
• High capital reserves
• Imported machinery
• Factories in more than one
cities
Weaknesses-W

• No brand identity
• High employee turnover
• Less diversified portfolio
• Inexperienced lower staff
• No company owned outlets
Opportunities-O

• High growth industry
• Sponsorship opportunity
• Growing number of football fans
• Minimum govt. legislation
• Sports wear products
SO-Strategies
WO-Strategies
Threats-T

• Potential entrance of multi-national company
• Load shedding
• High no. of competitors
ST-Strategies
WT-Strategies








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Steps for developing strategies:
There are eight steps involved in constructing a TOWS Matrix:
1. Rank external opportunities
2. Rank external threats
3. Rank internal strength
4. Rank internal weaknesses.
5. Match internal strengths with external opportunities and mention the result in the SO Strategies cell.
6. Match internal weaknesses with external opportunities and mention the result in the WO Strategies cell..
7. Match internal strengths with external threats and mention the result in the ST Strategies cell.
8. Match internal weaknesses with external threats and mention the result in the WT strategies cell.


SO Strategies: Every firm desires to obtain benefit form its resources such benefit can only be obtained if utilize its strength to take external opportunity. Resources (Assets) an important firm’s strength to get opportunity for external resources. For example the firm enjoying a good financial position which is strength for a firm and externally opportunity to expand business. The strong financial position provides an opportunity to expand the business. The matched strategy is known as SO strategy.
WO Strategies:
WO Strategies developed to match weakness with opportunities of the firm. WO strategy is very useful if the firm take advantage to external resources in order to overcome the weakness. For example the firm is in the critical financial problems that is weakness and firm is availing merger with Multinational Corporation.

ST Strategies
ST Strategies is an important strategy to overcome external threats. This does not mean that a strong organization should always meet threats in the external environment head-on. This strategy is adopted by various colleges by opening new branches in order to overcome competitive thereat. These threats also explain by the Porter in its competitive model.

WT Strategies

Every firm has a desire to overcome its weakness and reducing threats. This type of strategy helpful when weaknesses are removed to overcome external threats. It is difficult to target WT strategy. For example weak distribution network creating many problems for the firm if it strong many external threats can be removed.





              


    

MKT501 Assignment No 2 Solution


SEMESTER FALL 2011 
Marketing Management (MKT501)
Assignment No. 02 
Due Date:  Dec 27, 2011  Marks: 30

Topics Covered : 

Read the given topics in detail to attempt the assignment. 

1. Pricing 
2. Pricing objectives 
3. Pricing strategies 
  
The Case
Neven Corporation is an international coffee and coffeehouse chai n. Neven is the largest premium 
coffeehouse company in the world, with 18,887 stores in 55 countries. Neven sells drip brewed 
coffee, hot and cold drinks, coffee beans, espresso-based hot drinks, salads , hot and cold sandwiches 
and pastries, snacks, and items such as mugs and tumblers. 

Recently Neven observed customers are cutting back and switching to cheaper coffee shops. When 
recession pushes customers to choose cheaper alternatives and switching from your products, cutting 
your prices to keep the customers is best conventi onal strategy. This practice is usually followed and 
accepted, it is not based on any analysis. 

In such a disastrous situation when Neven was l oosing its customers, Neven decided to raise its 
prices by as much as 10%.   

Requirements:  

1. In the given case of Neven, how did  they decide at price increase? ( 15)   

2. Do you think there will be a fall in sales? How long should the sales fall to nullify the benefits o f  
price increase? ( 15)    




Instructions:   
Please read the following instructions carefully before preparing the assignment solution: 
•   Solve this assignment in your own words.  
•   You can take idea/concept from Video  lectures, recommended books, reference 
books, internet etc 
•   Copy from internet, VU-Student’s  websites/blogs will be graded as zero. 
Note: 
Only in the case of Assignment, 24 hours extra / grace period after the due date is 
usually available to overcome uploading difficulties wh ich may be faced by the 
students on last date.  This extra time should only be used to meet the emergencies 
and above mentioned due dates should always be treated as final to avoid any 
inconvenience. 
Other Important Instructions:  
Deadline: 

•   Make sure to upload the solution  file before the due date on VULMS.  
•   Any submission made via email a fter the due date will not be accepted. 

Formatting guidelines: 

•   Use the font style “Times New Rom an” or “Arial” and font size “12”.  
•   It is advised to compose your document in MS-Word format.  
•   You may also compose your assignment in Open Office format. 
•   Use black and blue font colors only.  

Solution guidelines: 

•   Use APA style for referencing and citati on.  For guidance search “APA reference 
style” in Google and read various website containing information for better 
understanding or visit  http://linguistics.byu.edu/faculty/henrichsenl/apa/APA01.html   
•   Every student will work individually and ha s to write in the form of an analytical 
assignment. 
•   Give the answer according to question,  there will be negative marking for irrelevant 
material. 
•   For acquiring the relevant knowledge  do not rely only on handouts but watch the 
video lectures and use other reference books also.  

Rules for Marking 

Please note that your assignment will not be graded or graded as Zero (0), if: 

•   It is submitted after the due date. 
•   The file you uploaded does not open or is corrupt. 
•   It is in any format other than MS-Word or  Open Office; e.g. Excel, PowerPoint, PDF 
etc. 
•   It is cheated or copied from other  students, internet, books, journals etc. 




-------------------------------------------------------------------------------------------





SOLUTION:

Solution:
Neven is actually now starting price skimming. (Charge a high pnice because you have a substatial competitive advantage. However, the advantage is not sustainable. )
“Skim the cream” pricing involves selling at a high price to those who are willing to pay before aiming at more price-sensitive consumers. This expression comes from the farming practice of milking cows – the cream rises to the top and you skim it off. The advantage of using a Skimming price policy is that you can theoretically get the maximum profit from each level of customer
Skimming Pricing
“A Skimming policy is more attractive if demand is inelastic says the Shapiro text – remember inelastic means there are no dose substitutes – products that people will pay a high price for because there is nothing else they can buy the is close to the item
~ ~ Prof. Allen says
“A skimming pricing policy involves setting prices of products relatively high compared to those of similar products and then gradually lowering prices. The skimming price is the highest price possible that buyers who most desire the product will pay (skim the cream off the top — skim the innovators). This market segment is more interested in quality, status, uniqueness, etc. This policy is effective in situations where a firm has a substantial lead over competition with a new products
2. Do you think there will be a fall in sales? How long should the sales fall b nullify the benefits of price increase? (15)
-------------------------------------------------------------------------------------------------------------------

Solution:
The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented.


Solution:
Neven is actually now starting price skimming. (Charge a high pnice because you have a substatial competitive advantage. However, the advantage is not sustainable. )


"Skim the cream" pricing involves selling at a high price to those who are willing to pay before aiming at more price-sensitive consumers. This expression comes from the farming practice of milking cows - the cream rises to the top and you skim it off. The advantage of using a Skimming price policy is that you can theoretically get the maximum profit from each level of customer


Skimming Pricing 


"A Skimming policy is more attractive if demand is inelastic says the Shapiro text - remember inelastic means there are no dose substitutes


- products that people will pay a high price for because there is nothing else they can buy the is close to the item

~ ~ Prof. Allen says

"A skimming pricing policy involves setting prices of products relatively high compared to those of similar products and then gradually lowering prices. The skimming price is the highest price possible that buyers who most desire the product will pay (skim the cream off the top -- skim the innovators). This market segment is more interested in quality, status, uniqueness, etc. This policy is effective in situations where a firm has a substantial lead over competition with a new products

2. Do you think there will be a fall in sales? How long should the sales fall b nullify the benefits of price increase? (15) Solution:
The high price tends to attract new competitors into the market, and the price inevitably

falls due to increased supply. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented.


            


STA630 Assignment no 2 Solution


SEMESTER FALL 2011 
Resarch Methods (STA630)  
Assignment No. 2 
Due Date: 27 December, 2011  Marks: 30
Assignment: 
While designing a questionnaire, a researcher should be very careful and try to avoid the errors that
cause the hindrance in collecting the correct and  appropriate information. Generally, following types
of errors are found in the questions.
a)   Questions are ambiguous or vague
b)   Questions are double barreled
c)   Questions are leading
d)   Questions are burdensome
e)   Questions are loaded


You have been provided some questions that are part of a questionnaire. You are required to:
1.   Identify the type of error(s) in the following questions  5*2 = 10
2.   Correct these error (s)      5*4 = 20




Question 1: 
Don’t you think that your organization should increase the salaries of employees in 
these days where cost of  living rising everyday? 
1.   Yes 
2.   No 


Question 2: 
How much satisfied are you with the be havior of your boss and coworkers? 
1.   Highly satisfied 
2.   Satisfied 
3.   Neutral 
4.   Dissatisfied 
5.   Highly dissatisfied 


Question 3: 
Should Pakistani government accept Israel as a state and have diplomatic 
relationships, in spite of the fact that Isr ael is killing innocent Muslims in Palestine? 
1.   Yes 
2.   No 


Question 4: 
Is your organization providing health and life insurance to the employees? 
1.   Yes      
2.   No 


Question 5: 
How much your income is? 


_____________ Rupees 


Note:
Only in the case of Assignment,  24 hours extra / grace period  after the due date is
usually available to overcome uploading difficulties wh ich may be faced by the
students on last date.  This extra time should  only be used to meet the emergencies and
above mentioned due date should be treated as final.
Other Important Instructions:
Deadline:


•   Make sure to upload the solution file before the due date on VULMS.
•   Any submission made via email a fter the due date will not be accepted.


Formatting guidelines:


•   Use the font style “Times Ne w Roman” and font size “12”.
•   It is advised to compose your document in MS-Word format.
•   You may also compose your assignment in Open Office format.
•   Use black and blue font colors only.


Solution guidelines:


•   Use APA style for referencing and citati on.  For guidance search “APA reference
style” in Google and read various website containing information for better
understanding or visit  http://linguistics.byu.edu/facu lty/henrichsenl/apa/APA01.html
•   Every student will work indivi dually and has to write in  the form of an analytical
assignment.
•   Give the answer according to question, there will be negative marking for irrelevant
material.
•   For acquiring the relevant knowledge do  not rely only on handouts but watch the
video lectures and use other reference books also.


Rules for Marking


Please note that your assignment will be graded as Zero (0), if:


•   It is submitted after the due date.
•   The file you uploaded does not open or is corrupt.
•   It is in any format other than MS-Word or  Open Office; e.g. Excel, PowerPoint, PDF
etc.
•   It is cheated or copied from other  students, internet, books, journals etc.


 ------------------------------------------------------------------------------------------




    Q.1. Answers:- Types of errors

1.Question is Leading

2.Question is burdensome

3.Question is loaded

4.Question is double barreled

5.Question is Ambiguous or vague



Q.2.Answers:-

Question 1: Corrected Questions

Do you think that your organization should increase the salaries of employees in

those days where cost of  living rising everyday?

1.   Yes

2.   No



Question 2:

How much satisfied, are you with the behavior of your boss and co-workers?

1.   Highly satisfied

2.   Satisfied

3.   Neutral

4.   Dissatisfied

5.   Highly dissatisfied

Question 3:

Should Pakistani government accept the Israel as a state and have diplomatic

relationships, in spite of the fact that the Israel is killing innocent Muslims in Palestine?

1.   Yes

2.   No



Question 4:

Is your organization providing health or life insurance to the employees?

1.   Yes    

2.   No



Question 5:

How much your income?



_____________ Rupees



             

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