## Case Study: Kriti Pvt. Ltd. — Applying Strategic Concepts
### Case Summary
Kriti Pvt. Ltd. imported French gourmet cheese ('Fromage') under a deal where the French affiliate handled logistics and marketing costs while Kriti handled customer management and distribution.
Key events:
- Leadership regularly attended industry conclaves and read business magazines → detected the 'Vocal for Local' sentiment
- Proactively decided to partner with local Indian cheese producers (7 state governments)
- Funded the shift by selling off French business assets and the brand
- Outcome: better earnings, stronger customer response, easier domestic operations
### Concept Mapping
| Event in Case | Strategic Concept Tested |
|---|
| Attending conclaves + reading magazines → sensing Vocal for Local | Strategic Surveillance (type of strategic control) |
| Partnering with local producers in response to Vocal for Local | Proactive Strategy |
| 'Vocal for Local' changing customer preferences (substituting French with Indian) | Porter's Five Forces: Threat of Substitutes |
| Selling French assets to fund the new Indian cheese business | Divestment Strategy |
| Customer management and nationwide distribution as the hardest part of the Fromage model | Value Chain: Customer Service |
### Porter's Five Forces Quick Reference
| Force | Description |
|---|
| Threat of New Entrants | New competitors entering the market |
| Threat of Substitutes | Alternative products meeting the same customer need |
| Bargaining Power of Buyers | Buyers' ability to negotiate lower prices |
| Bargaining Power of Suppliers | Suppliers' ability to charge higher prices |
| Rivalry Among Existing Competitors | Intensity of competition within the industry |
### Corporate Strategies (Retrenchment/Stability)
| Strategy | Description |
|---|
| Divestment Strategy | Selling off a business unit or asset to raise funds or exit a market |
| Turnaround Strategy | Reversing declining performance through restructuring |
| Liquidation Strategy | Closing down and selling all assets |
| Intensification Strategy | Growing the existing business more aggressively |
### Example 1
Q (i): Which action of Kriti Pvt. Ltd. is an example of a proactive strategy?
(a) Selling off French assets (b) Partnering with local cheese producers in response to 'Vocal for Local' (c) Managing customer relations (d) Covering marketing expenditures
Correct Answer: (b)
A proactive strategy involves anticipating changes and acting in advance rather than reacting after the fact. Kriti sensed the Vocal for Local sentiment via surveillance and acted before it disrupted their business — that is proactive strategy at work.
### Example 2
Q (ii): Which type of strategic control did Kriti's owners deploy that turned out to be one of the most effective strategic decisions?
(a) Premise control (b) Special alert control (c) Implementation control (d) Strategic surveillance
Correct Answer: (d) Strategic Surveillance
Attending industry conclaves and reading business magazines = continuous broad scanning of the environment = Strategic Surveillance. It is not a special alert (no sudden crisis); not premise control (not checking specific assumptions); not implementation control (strategy was not yet being implemented).
### Example 3
Q (iii): 'Vocal for Local' changed customer preferences for the majority of products. Kriti gauged the competition it might face. Which of Porter's Five Forces is most relevant?
(a) Threat of new entrants (b) Nature of rivalry (c) Threat of substitutes (d) Bargaining power of buyer
Correct Answer: (c) Threat of Substitutes
Customers began preferring Indian (local) products over French (imported) ones — Indian cheese products became a substitute for Fromage. This is precisely the 'Threat of Substitutes' force: alternative offerings that can replace the current product.
### Example 4
Q (v): Partnerships were formed with Indian producers; the existing French business was to be sold off to fund the new venture. Which strategy did Kriti opt for?
(a) Turnaround (b) Divestment (c) Liquidation (d) Intensification
Correct Answer: (b) Divestment Strategy
Kriti is selling off the French business assets and brand to fund the new Indian cheese strategy. Divestment = strategic sale of a business unit or asset. It is not a turnaround (no performance reversal needed — they were proactive). It is not liquidation (the company itself continues).