Strategic Management Report: Analyzing Dhiraagu's Business Strategies

This strategic management report focuses on Dhiraagu, a leading telecommunications company in the Maldives. It begins with an executive summary outlining the organization's objectives for the next three years, emphasizing internal and external market analyses, including SWOT and PEST analyses, to identify strengths, weaknesses, opportunities, and threats, as well as political, economic, social, and technological factors. The report then delves into corporate portfolio analysis using BCG matrix and McKinsey GE model to assess the performance of various services like 3G HSDPA Mobile Broadband, Web hosting, and Data Center Services. Based on the analysis, specific goals and objectives are formulated, and strategic recommendations are provided, including generic strategies (cost leadership, differentiation, focus) and grand strategies (stable, growth, retrenchment). The report concludes with monitoring and control systems to assess the success of the implemented strategies.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student:
Name of the University:
Author’s Note:

1STRATEGIC MANAGEMENT
Executive Summary
Strategic management is the continuous process of developing, implementing and evaluating the
business decisions, which can enable an organization towards meeting the organizational
objectives. The study has set organizational objectives for Dhiraagu to be fulfilled over the next
3 years periods. Moreover, the study has analyzed the internal and external market of the
organization. From such analysis, it can be found that the organization has strong brand
reputation and talented employee set. However, it has lack of international expansion and facing
extremely competitive pressure in the market. On the other hand, the Government of Maldives
itself has 41.8% share in this organization. Therefore, the organization gets direct support of the
government. From the corporate portfolio analysis, it has been found that 3G HSDPA Mobile
Broadband, Web hosting and Data Center Services are generating highest cash for the business
success. Based on the situational analysis, the study has formulated the goals and objectives for
the organization to be fulfilled over the next 3 years period. The organization will enter into
various international markets, increase market share by 20%, sale volume by 30% and profit
level by 25%. Moreover, the study has set some effective strategies for the organization through
using generic strategies and grand strategies. Furthermore, the study has also suggested some
monitoring and controlling strategies for the organization for assessing the success of the
planned strategies.

2STRATEGIC MANAGEMENT
Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Internal Analysis........................................................................................................................3
2.1 SWOT....................................................................................................................................3
2.1.1 Strength...........................................................................................................................3
2.1.2 Weakness........................................................................................................................4
2.1.3 Opportunities..................................................................................................................4
2.1.4 Threats............................................................................................................................5
3.0 External Analysis.......................................................................................................................5
3.1 PEST......................................................................................................................................5
3.1.1 Political Factor................................................................................................................5
3.1.2 Economic Factor.............................................................................................................6
3.1.3 Social Factor...................................................................................................................6
3.1.4 Technological Factor......................................................................................................6
4.0 Corporate Portfolio Analysis.....................................................................................................9
4.1 BCG Matrix...........................................................................................................................9
4.1.1 Dog...............................................................................................................................10
4.1.2 Question Marks.............................................................................................................10
4.1.3 Stars..............................................................................................................................10
4.1.4 Cash Cow......................................................................................................................11

3STRATEGIC MANAGEMENT
4.2 Mckinsey GE Model............................................................................................................11
4.2.1 Grow.............................................................................................................................12
4.2.2 Hold..............................................................................................................................12
4.2.3 Harvest..........................................................................................................................13
5.0 Goals and Objectives for Next 3 Years...................................................................................14
6.0 Strategy Formulation...............................................................................................................15
6.1 Generic Strategy..................................................................................................................15
6.2 Grand Strategy.....................................................................................................................16
7.0 Explanation about the implementation....................................................................................17
7.1 Implementation of Generic Strategies.................................................................................17
7.1.1 Cost Leadership............................................................................................................17
7.1.2 Differentiation...............................................................................................................18
7.1.3 Focus.............................................................................................................................18
7.2 Grand Strategy.....................................................................................................................19
7.2.1 Stable Strategy..............................................................................................................19
7.2.2 Growth Strategy............................................................................................................19
7.2.3 Retrenchment Strategy..................................................................................................20
8.0 Monitoring and control system................................................................................................20
8.1 Premise Control...................................................................................................................20
8.2 Implementation control........................................................................................................21

4STRATEGIC MANAGEMENT
8.3 Strategic Surveillance..........................................................................................................21
9.0 Conclusion...............................................................................................................................21
Reference List................................................................................................................................23

5STRATEGIC MANAGEMENT
1.0 Introduction
Strategic management defines the formulation and implementation of major
organizational goals and objectives based on the consideration internal and external environment
of an organization (Bettis et al. 2016). This study will choose Dhiraagu of Maldives and
formulate some key objectives to be fulfilled over the next 3 years. Dhiraagu is the leading
telecommunication organization in Maldives (Dhiraagu.com.mv 2017). The study will assess the
internal and external market for the organization for assesses some factors, which can have huge
impact on the business process of the organization. The study will also perform corporate
portfolio analysis of the organization through BCG matrix and Mckinsey GE model. Based on
such situation analysis, the study will set some specific objectives of the organization, to be
fulfilled over next 3 years. Apart from that, the study will develop and implement generic
strategies and grand strategies for meeting the planned objectives of the organization.
Furthermore, some monitoring and controlling mechanism with also be provided in this study for
evaluating the success level of planned strategies.
2.0 Internal Analysis
2.1 SWOT
2.1.1 Strength
According to Payne and Frow (2014), Dhiraagu is the largest and leading
telecommunication operator in Maldives. Strong brand reputation of the organization has
increased the customer base of the organization. Furthermore, high quality uninterrupted network
and internet service has increased the customer loyalty of the customers. On the other hand,

6STRATEGIC MANAGEMENT
Schaarschmidt and Kilian (2014) opined that wide range of telecommunication service has met
the needs of different kinds of people. It has actually increased the sales volume of the
organization. Online bill payment options encourage huge customers to take the network service
of this organization. Apart from that, highly talented and skilled employees has built the
foundation of the organization and led to its success. Strong promotional activities and discounts
provided to the customers have increased the sales volume of the services of this organization.
2.1.2 Weakness
Musacchio, Lazzarini and Aguilera (2015) pointed out that strong brand image can be
highly vulnerable to breakthrough even for any small reason. Moreover, the organization has
lack of international expansion with across the internal market. It can limit the profit volume of
the organization with limited access to the customers. On the other hand, Sakas, Vlachos and
Nasiopoulos (2014) opined that Dhiraagu is facing tough price competition from its direct
competitors. Moreover, they are constantly fighting with keeping their market share up against
the competitors.
2.1.3 Opportunities
As per Mirabeau and Maguire (2014), Dhiraagu has huge opportunities to enter into
internal market individually apart from partnership with some other partners. Moreover, high
brand reputation will enhance the acceptability of the network and internet service of Dhiraagu in
international market. On the other hand, Chen, Delmas and Lieberman (2015) opined that
partnership with the bigger telecom companies in international market can boost the performance
level of the organization. Furthermore, the adoption of latest and advanced technology can
further improve the quality of telecom services.

7STRATEGIC MANAGEMENT

8STRATEGIC MANAGEMENT
2.1.4 Threats
Hardy and Thomas (2014) stated that Dhiraagu faces extreme competitive pressure from
the direct competitors like Raajjé Online and Ooredoo Maldives. Such telecommunication companies
are also providing almost same quality telecommunication services to the customers with affordable
prices. On the other hand, Battistella (2014) opined that the organization has reached its saturation point
in getting access to new customers.
SWOT Analysis of Dhiraagu
Strength  Strong brand image attracts huge customers
 High quality and uninterrupted network and services of internet data and
fixed line services
 Strong financial stability
 Standard package provided to the customers
 Wide range of services meets the needs of various types of customers
 Talented and skilled workforce
 400 operators in 150 countries as international roaming partners
 Strong promotional activities
 Online bill payment system
 Higher growth rate across the country
 Strong distribution and sales network
Weakness  Strong brand image can be vulnerable to breakthrough even for any little
mistake
 Lack of international expansion

9STRATEGIC MANAGEMENT
 Constantly fighting for the market share with the competitors
 Tough price competition
Opportunitie
s
 Scope for international expansion
 Partnership with bigger telecom brands can boost the business profitability
of the organization
 Advanced and latest technological adoption
Threats  Tough competition from the direct competitors like Raajjé Online and
Ooredoo Maldives
 Saturation point in getting new customer base
Table 1: SWOT Analysis of Dhiraagu
(Source: Frow et al. 2015)
3.0 External Analysis
3.1 PEST
3.1.1 Political Factor
According to Dhiraagu.com.mv (2017), Government of Maldives itself has hold 41.8%
share in Dhiraagu and rest have held by BTC Islands Limited and general public. Therefore,
government personally takes interest in the business progress of this company. Therefore, huge
government support has facilitated the organization in their business development. On the other
hand, Bettis et al. (2014) opined that instable political condition Maldives hampers the business
progress of the organization. Furthermore, increasing corruption rate in the country severely
affect the business practices of the organization.

10STRATEGIC MANAGEMENT
3.1.2 Economic Factor
The economic condition of Maldives is gradually increasing. Carroll, Primo and Richter
(2016) pointed out that growing economic condition of the country has increased the scope of
enhanced return on investment. Moreover, the developing economic condition has actually
increases the profit potentiality of the organization. Furthermore, stable growth of the industry
has explored several new business opportunities for the organization. On the other hand,
Trigeorgis and Reuer (2017) opined that rising inflation rate in Maldives affects the price
structure of the internet and other telecom services. It leads to fluctuation is the prices of internet
services of the organization. Therefore, it has huge impact on the profit level of the organization.
3.1.3 Social Factor
Mitchell and Leiponen (2016) pointed out that developing economic condition of
Maldives has enhanced the spending power of the people. Therefore, they can now confidently
spend their money in choosing the best quality telecom services. Furthermore, Vogel and Güttel
(2013) opined that large numbers of students and working people in Maldives uses internet
services. Therefore, increasing numbers of such people has actually increased the sales volume
of the organization. On the other hand, Simon, Fischbach and Schoder (2014) opined that
changing customer preferences and expectation in the field of telecom services has hindered the
success level of the organization.
3.1.4 Technological Factor
According to Gans and Ryall (2017), Dhiraagu uses most modern and advanced
technology in their business process. Moreover, such advanced technologies have increased the
manufacturing process of the organization. Moreover, with the advent in the technological
development of Maldives, the organization is now much more capable of launching innovative

11STRATEGIC MANAGEMENT
telecom services. On the other hand, Williams, Chen and Agarwal (2017) opined that advanced
technological development has also fostered innovative business decision towards high level of
business success of the organization. Furthermore, developed digitalization of Maldives has
increases the promotional effectiveness of the organization. Moreover, the organization is now
much more capable of reaching wide customer base.
PEST Analysis of Dhiraagu
Political
Factor
 Huge government support from Maldives Government
 Government itself is a stakeholder of the Dhiraagu
 Reduced tax rate of Maldives can reduce the operational cost of the
organization
 Instable political condition of Maldives can hamper the business progress
of the organization
 Increasing corruption rate in Maldives hampers the success of the business
 Changing government rules and regulations also affect the business
practices
Economic
Factor
 Developing economic condition of Maldives has enhanced the profit
earning capability of the organization
 Stable growth of the industry is leading to new business opportunities for
the organization
 Rising inflation rate is high affecting the price structure of the
telecommunication services
Social Factor  Growing economic condition has increasing the spending confidence of the
customers