Strategic Choices and Options: Dialog Axiata MBA Presentation

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AI Summary
This presentation, building upon a previous assignment, provides an executive summary of strategic choices for Dialog Axiata, a leading telecommunications company in Sri Lanka. It outlines strategic options aligned with established objectives, assessed using the SAF (Suitability, Acceptability, Feasibility) model. The presentation identifies the strategic fit of selected options with current business activities to achieve synergy, and assesses stakeholder expectations along with resource requirements (financial, physical, and technological). It also explores methods to enhance the project's environmental and social impact, promoting triple bottom line growth and corporate social responsibility. The presentation concludes with recommendations for Dialog Axiata's continued innovation and success, referencing key industry reports and academic literature.
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Strategic Choices
and Options
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Executive Summary
This presentations is in continuation with Assignment 1 and stating strategic
choice for Dialog Axiata (One of the leading telecommunication company in
Sri Lanka).
These strategic choices are associated to previous established objectives
required to achievable within the five years. In addition, criteria for Dialog
strategic option has been assessed through SAF Model stands for Suitability,
Acceptability and Feasibility.
Furthermore, strategic fit of the selected options with the current business
activities are also identified so as to gain synergy effect.
Expectations of key stakeholders is also being identified with evaluation of
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Table of Contents
Task Number Particulars Slide Number
Task 1 Strategic option to
achieve the objectives
– SAF Model
On Slide 4,5 and 6
Task 2 Strategic Fit - Value
Chain Analysis
Slide 7
Task 3 Key Stakeholders -
Mendelow’s Power
Interest Grid
Slide 8
Task 4 Requirement of
Resources (Financial,
physical and
technology)
Slide 9
Task 5 Project greener and
socially adequate
Slide 10
- Conclusion and
Suggestions
Slide 11
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Strategic option to achieve the
objectivesOption 1 - Competitive Prices
and Market Penetration
(Objective 1)
Strategic Evaluation and
Selection
Sustainable () Sri Lanka Culture Adaption,
attraction attention of new
customer
Acceptability () Increase in revenue will maximize
shareholder wealth and attract
local customers.
Feasibility () Debt coverage > Industry
Average – low financial risk
Sufficient cash reserve and,
Leverage ratio < industry – low
business risk.
Option 2 - Competitive Prices and
Market Penetration (Objective 1)
Strategic Evaluation and Selection
Sustainable () Opportunity – retain faithful consumers
and risks – loss of new customers
Acceptability (x) Low threat as of initial investment and
greater risk of decrease in revenue and
reduction in wealth of shareholder.
Feasibility (x) Deprived of too much primary
investment
Can lead to reduction of share in market
and revenue.
Summary Options 1 Options 2
Suitable () ()
Acceptable () (x)
Feasible () (x)
Recommen
ded
() (x)
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Strategic option to achieve the
objectivesOption 1 – Brand Growth
(Objective 2)
Strategic Assessment and
Choice
Sustainable () Achieving economy of scale and
price competiveness and attain
existing customers.
Acceptability (x) Less dividend for shareholders,
enhance the consumer fulfillment
and reduction of gross revenue in
short period.
Feasibility (x) More funds and capital in attaining
new customer and infrastructure
development.
Option 2 - Brand Growth
(Objective 2)
Strategic Assessment and
Choice
Sustainable () Offer more involvement
opportunities to individuals who
incline to buy services from
company.
Acceptability (x) Less threat as of initial
capitalisation
Feasibility () Little new capital needed
Time bound contextual program
Summary Options 1 Options 2
Suitable () ()
Acceptable (x) (x)
Feasible (x) ()
Recommen
ded
(x) ()
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Strategic option to achieve the
objectivesOption 1 – Innovation
(Objective 3)
Strategic Assessment and
Choice
Sustainable () Increasing time in product life
cycle
Acceptability (x) Improve customer satisfaction
Loss of potential customers
Feasibility () More funds and capital in
developing of new products and
market research.
Profitable in longer run.
Option 2 - Innovation
(Objective 3)
Strategic Assessment and
Choice
Sustainable () New experience to users and
increase in revenue in longer run
Acceptability (x) Low risk as of initial investment
Feasibility (x) New fund required to research and
development.
Time bound by 2 or 3 years.
Summary Options 1 Options 2
Suitable () ()
Acceptable (x) (x)
Feasible () (x)
Recommen
ded
() (x)
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Value Chain Analysis
Primary Activities Secondary Activities
In-bound logistics - Dialog have
extensive network coverage as they
own their network infrastructure
Firm Infrastructure - Telecom
equipment for coverage and signal
strength, MIS, networking equipment
and others
Operations – Development of
infrastructure, sim cards, network
substations and customize software to
requirement.
Human Resource Management -
4000 plus employees including IT
skilled workforce, engineers, Telesales
training and others
Outbound Logistics – GSM services,
broadband and fixed line.
Procurement – Maintaining long term
relationship with suppliers
Sales and Marketing – Market
Innovators, Strong channel distribution
and big spending on market advertising
and promotion i.e. (12,314,871 Sri
Lanka Rupees thousands)
Technology – 5G technology,
launching of e-commerce.
Services – Digital Services, music
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Expectations of the key
stakeholders
Minimal Efforts Keep Informed
Keep Satisfied Key Players
Level of Interest
Power
Low
Hig
h
Low High
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Requirement of resources
To implement the strategic options, executive of Dialog Axiata needs to
sanction some amount of budget and respective division then allocate the
resources divided in terms of –
Financial – For market penetration - 10 million US $, Growth of the brand,
customer attainment and retention 25 million US $ and for innovation
(research and development department) – 45 million US $.
Physical – Contribution of all departments and nearly 100 new employees
from both current and new hiring.
Technology – New Equipment's, fibre connection, 5G modems and many
more.
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Project greener and socially
acceptable
Undertaking project in an environment and socially friendly way will help
Dialog in achieving triple bottom line growth and fulfil company boundary of
corporate social responsibility (Szczepankiewicz and Mucko, 2016).
The benefit to make the project greener and acceptable to society can be
seen in the future to the company with larger customer base, positive brand
good will and greater cooperation from the government.
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Conclusion and
Recommendations
In the limelight of above discussion, Dialog is doing great in the
home country and in terms of innovation.
However, there are some recommendations that the company
should successfully adopt.
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References
Aguilera, R.V., Desender, K., Bednar, M.K. and Lee, J.H. (2015) Connecting the dots: Bringing external
corporate governance into the corporate governance puzzle. The Academy of Management Annals, 9(1),
pp.483-573.
dialog.lk. (2017) Annual Report 2017 [ONLINE] Available from:
https://www.dialog.lk/dialogdocroot/content/pdf/sustainability_reports/sustainability-report-2017.pdf
[Accessed 16/12/2019].
dialog.lk. (2018) Annual Report 2018 [ONLINE] Available from:
https://www.dialog.lk/dialogdocroot/content/pdf/annual_reports/2018-annual-report.pdf [Accessed
16/12/2019].
Du, K. (2018) The impact of multi-channel and multi-product strategies on firms' risk-return
performance. Decision Support Systems, 109(1), pp.27-38.
Elsaid, A., Salem, R. and Abdul-Kader, H. (2017) A Dynamic Stakeholder Classification and Prioritization
Based on Hybrid Rough-fuzzy Method. Journal of Software Engineering, 11(1), pp.143-159.
Haryadi, S. (2015) Telecommunication Service and Experience Quality. Indonesia: Dago Press.
Janse, B. (2018) SFA Matrix [ONLINE] Available from: https://www.toolshero.com/marketing/sfa-matrix/
[Accessed 16/12/2019].
Michelini, L. and Fiorentino, D. (2012) New business models for creating shared value. Social
Responsibility Journal, 8(4), pp.561-577.
Szczepankiewicz, E. and Mucko, P., (2016) CSR Reporting practices of Polish energy and mining
companies. Sustainability, 8(2), p.126.
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