1.List and clearly describe the strategic decisions Dinesh Khanna needs to make for Shimla Dairy?
- Adopting new production lines for example to increase the output of the products to meet the high demand, considering the wide range of products produced for example cheese, butter and ghee to meet the customer specification and desires , this can be down when the firm is ready to expand.
- Working on the pricing, the prices of their products be affordable to the potential clients. The marketing strategy to be able to compete effectively with the rival firm, both in the service delivery and quality assurance.
- Proper market segmentation. He should do a good market analysis to understand the nature of the market so that he can segment the customers into various groups. Market can be classified into children, youths, adults, men, and women or in terms of geographical location.
- Increasing cheese advertisement in the local and international media houses. Dinesh should increase the allocation for advertisements to ensure they keep up with the steep competition in the market and make the potential clients be aware of the new products.
- Studying actions of the competitors. He should make a decision on how to study the competitors, how they conduct their business as well as their strategic plans. Information from the competitors is important in decision- making. For example to keep up with the competing world there is need to ensure the firm is up to date in technology advancement and the marketing trends especially were the firm faces steep competition from the rival firms
2. List and clearly describe the variable factors (Diamond-E) Dinesh Khanna needs to take into consideration when setting Shimla's strategy? What insights does your analysis provide regarding the selection of an appropriate strategy for Shimla?
Diamond E is a frame work that is used in management; it is used for strategic analysis. it identifies the essential building blocks that provide a desirable way of evaluating strategies which need to be considered utilizing the resources , strategies and organizational behavior to relate and coordinate with the environment, the variables that should be considered when taking the Shimla strategy , the resources that are essential by ensure he consistent supply of milk to be processed to see the business run , also managerial skills. The e strategy is actually to ensure the firm keeps the competitors at bay, the resources that are essential and ensure the consistent supply of milk to be processes and produce a wide variety of milk products, ghee, butter and cream. The firm Borrows more funds from the bank to keep pace with the market as it expands its market share and size.
On the issue of management, it calls for a competitive and skilled person to run the firm to ensure a successful management which will be a result oriented. And welcome re innovations and creativity from the employees. it is also paramount to motivate the employees. The insights on the strategy to be adopted are particular in their market position and employment of resources.
3. What is an organizational competency? List and clearly describe Shimla's competencies and resource limitations? What insights does this analysis provide regarding the selection of an appropriate strategy for Shimla?
Organizational competency is the competitive advantages that an organization has over its competitors or the strengths of an organization. Some of Shimla’s competencies and resource limitations include;
- Loyal and dedicated employees like Dinesh. When Dinesh joined the company it was not making much profit but as it stands now it is having an annual margin of 15 percent as opposed to other companies which make a profit of 8 percent. Regardless of this there is still shortage of such employees who are fully committed to see the company’s success.
- An improved marketing plan. In the past, the organization used to market and publicizes its products through word of mouth but now there is use of brochure fliers. Again, there is still shortage of resources here in producing enough fliers for the potential customers. There are also no enough personnel who can implement and manage the organization’s website. Website and other technological solutions improve efficiency and service delivery.
- The competence the firm also is on the pricing , they have an affordable pricing which favors them as they get more client whilst offering quality services , the wide variety of milk products for example the natural ones, ghee , butter and even they do pasteurization .
- The firm also has limitations for example the lack of space for expansion, the insufficient funds which has let the firm to resort into borrowing from banks to keep the production running, the firm also has a challenge in entering to new market deals and the exposure to make the group.
