Contemporary Business Environment

Course Learning ObjectivesTo facilitate theoretical inputs on contemporary issues

and enable learning through comparative analysis of select firms.

To develop skills required to effectively study the business environment of the industry in which the firm is operating on the respective issue.

To evaluate the relevance of the marketing issue in the context of changing customer expectations and emerging technologies.

To enable industry readiness of the students through collection, analysis of data and by developing conceptual thinking and decision making skills.

Course Learning Outcomes

By the end of the course, students will be able to: Develop a conceptual model on the marketing issue

that they will study. Do industry analysis, internal firm analysis, and value

chain analysis from a marketing perspective combining all elements of the marketing mix.

Critically evaluate the marketing issue, identify Key Success Factors of the chosen firm and provide solutions for improving the marketing effectiveness of the chosen firm.

Develop inter personal and team working skills.

Marketing IssuesSl Issue Sl Issue

1 Role of technology in improving the marketing mix of a product category 6

Successful value creation / co-creation through bundling of products and /or services

2 Role of technology in improving the marketing mix of service category 7 Relevance of brand positioning strategy

in today’s world

3 Product line extensions and their effectiveness 8 Role of internal marketing in successful

implementation of marketing strategy

4 Success story of an innovative product / service company in India 9 Customer engagement strategies & the

role of social media marketing

5 Role of digital marketing in brand building 10

Designing experiences, not products. What accounts for experiences that are remembered, interesting and valued?

Course Outline Course Structure

Develop a conceptual model on the topic##

Choose a firm in an industry Collect data on the environment in which the firm operates Collect data on the variables in the conceptual model w.r.to the firm Present findings along with recommendations for improvement

## Some of the important research journals in marketing include Journal of Marketing, Journal of Marketing Research, Journal of Retailing, Journal of the Academy of Marketing Sciences, Journal of Advertising, Marketing Theory, European Journal of Marketing, Journal of Service Research, Journal of Macro Marketing, Journal of Consumer Research, Psychology & Marketing etc.

Facilitation Basic theoretical inputs and guidance from the facilitator. Self-taught course with students

leading the learning through class presentations. Evaluation

Attendance and Class Participation - 10% Mid-Term Examination - 25% End-Term Examination - 40% Project Work - 25%

What do you mean by Business Environment

Your thoughtsHow does the environment affect these brands?

Session Objective

This session will enable students to: Understand definition of strategy Introduce the concept of Environment Analysis (PESTEL) Introduce the concept of Five Forces Model Establish the importance of environment & competitor analysis

What is Strategy? Operational Effectiveness vs. Strategy

Necessary but not sufficient

Strategic Positions

Unique Activities & Strategic Positions (e.g. Indigo)

Trade-offs - Sustainable Strategy Needs Trade-offs

Right trade-offs (e.g. Rolex)

Fit Drives competitive advantage and sustainability

Reinforce the activities – tightly integrated – difficult to imitate Growth trap (Strategy vs. Growth) Leadership

What is strategy ? Strategy - Creation of a unique and valuable position, involving a

different set of activities. The essence of strategic positioning is to choose activities that are

different from rivals.

Strategy is making trade-offs in competing. The essence of strategy is choosing what not to do. Without trade-offs, there would be no need for choice and thus no need for

strategy. (Any good idea could and would be quickly imitated. Performance would once again depend wholly on operational effectiveness)

Amazon, Flipkart

BMW

What is Strategy? Strategy is creating fit among a company’s activities.

Success depends on doing many things well–not just a few– and integrating among them.

If there is no fit among activities, there is no distinctive strategy and little sustainability.

South West Airlines

Environment Analysis

PESTEL Analysis of environmental influences1. What environmental factors are affecting the organization?

2. Which of these are the most important at the present time? In the next few years?

Political/legalMonopolies legislationEnvironmental protection lawsTaxation policyForeign trade regulationsEmployment lawGovernment stability

Economic factors• Business cycles• GNP trends• Interest rates• Money supply• Inflation• Unemployment• Disposable income• Energy availability and cost

PESTEL Analysis of environmental influences1. What environmental factors are affecting the organization?

2. Which of these are the most important at the present time? In the next few years?

Sociocultural factorsPopulation demographicsIncome distributionSocial mobilityLifestyle changesAttitudes to work and leisureConsumerismLevels of education

Technological• Government spending on

research• Government and industry focus

on technological effort• New discoveries / development• Speed of technology• Rates of obsolescence

Porter’s Five Forces Model of Competition

Home Assignment

M&M is aspiring to enter the two-wheeler business.

Analyse the industry using Porter’s Five Forces Model