MGT603 GDB 1 Solution Spring 2017

You are a consultant, working for a private sector university in Pakistan.  The university offers bachelor and master degree programs in Business Administration and Computer Sciences.  The board of governors is holding a meeting to discuss quality standards and competitive challenges for the year.  The board is primarily debating two options:

  1. Enhance and improve existing market by strengthening existing programs through “retrenchment” and “consolidation”, and investing in improved R&D, infrastructure and faculty development as per international standards of Quality Assurance in Education.
  2. Expand the potential market of the university by extending and introducing new degree programs as per recognized standards, which will inject new life into the university and bring innovation to existing programs as well.


  1. As a consultant, which strategic option would you recommend to the board? (Students may choose ANY one option. (No marks will be awarded if students discuss both options).
  2. Provide three specific reasons for why you are recommending this option.
  1. What possible steps can the university take to implement this strategy? (State 3 steps).
  2. Also state three specific benefits that the university will get by implementing this option.

Solution :

Sl Types of Alternative Actions Related to Comes under Strategy 1. Forward Integration Control over Distributors/ Retailers 2. Backward Integration Control over Suppliers 3. Horizontal Integration Control over Competitors Integration / vertical Integration strategy 4. Market penetration Increased market share for present products 5. Market development Enter in new area with present product 6. Product development Increase sales or adding new area Intensive Strategy 7. Concentric Diversification Adding new but unrelated product 8. Conglomerate diversification Adding new but related product 9. Horizontal diversification Adding new but unrelated product for present customers Diversification Strategy 10. Retrenchment Regrouping through Assets and cost reduction 11. Divestiture Selling a division or part of the organization 12. Liquidation Selling all company’s assets / parts for their tangible worth. Defensive Strategy Integration Strategies: