1. Define strategy. What are the various levels at which a strategy may exist.

Strategy is an action that managers take to attain one or more of the organization’s goals. Strategy
can also be defined as “A general direction set for the company and its various components to
achieve a desired state in the future. Strategy results from the detailed strategic planning process”.

A strategy is all about integrating organizational activities and utilizing and allocating the scarce
resources within the organizational environment so as to meet the present objectives. While
planning a strategy it is essential to consider that decisions are not taken in a vaccum and that any
act taken by a firm is likely to be met by a reaction from those affected, competitors, customers,
employees or suppliers.

Strategy may operate at different levels of an organization – corporate level, business level, and
functional level. The strategy changes based on the levels of strategy.

Corporate Level Strategy

Corporate level strategy occupies the highest level of strategic decision making and covers actions
dealing with the objective of the firm, acquisition and allocation of resources and coordination of
strategies of various SBUs for optimal performance.

Top management of the organization makes such decisions. The nature of strategic decisions tends
to be value-oriented, conceptual and less concrete than decisions at the business or functional level.

Business-Level Strategy.

Business level strategy is – applicable in those organizations, which have different businesses-and
each business is treated as strategic business unit (SBU). The fundamental concept in SBU is to
identify the discrete independent product / market segments served by an organization.

Functional-Level Strategy.
Functional strategy, as is suggested by the title, relates to a single functional operation and the
activities involved therein. Decisions at this level within the organization are often described
as tactical. Such decisions are guided and constrained by some overall strategic considerations.

Functional strategy deals with relatively restricted plan providing objectives for specific function,
allocation of resources among different operations within that functional area and coordi-nation
between them for optimal contribution to the achievement of the SBU and corporate-level
objectives.

2. Explain the process of strategic management.

The strategic management process means defining the organization’s strategy. It is also defined as
the process by which managers make a choice of a set of strategies for the organization that will
enable it to achieve better performance.

Strategic management is a continuous process that appraises the business and industries in which
the organization is involved; appraises it’s competitors; and fixes goals to meet all the present and
future competitor’s and then reassesses each strategy.

Strategic management process has following four steps:

1. Environmental Scanning- Environmental scanning refers to a process of collecting,

scrutinizing and providing information for strategic purposes. It helps in analyzing the
internal and external factors influencing an organization. After executing the
environmental analysis process, management should evaluate it on a continuous basis and
strive to improve it.
2. Strategy Formulation- Strategy formulation is the process of deciding best course of
action for accomplishing organizational objectives and hence achieving organizational
purpose. After conducting environment scanning, managers formulate corporate, business
and functional strategies.
3. Strategy Implementation- Strategy implementation implies making the strategy work as
intended or putting the organization’s chosen strategy into action. Strategy implementation
 includes designing the organization’s structure, distributing resources, developing decision
making process, and managing human resources.
4. Strategy Evaluation- Strategy evaluation is the final step of strategy management process.
The key strategy evaluation activities are: appraising internal and external factors that are
the root of present strategies, measuring performance, and taking remedial / corrective
actions. Evaluation makes sure that the organizational strategy as well as it’s
implementation meets the organizational objectives.

3. Briefly summarize what you understand by external environment and its importance for
business.

An external environment is composed of all the outside factors or influences that impact the
operation of business. The business must act or react to keep up its flow of operations. The external
environment can be broken down into two types: the micro environment and the macro
environment.

Types of External Environments

 The micro environment consists of the factors that directly impact the operation of a
company.
 The macro environment consists of general factors that a business typically has no control
over. The success of the company depends on its ability to adapt.

Each type of environment has factors, or influences, to take into account.

The external environment plays a critical role in shaping the future of entire industries and those
of individual businesses. To keep the business ahead of the competition, managers must
continually adjust their strategies to reflect the environment in which their businesses operate.

It is a useful exercise to do an external analysis at the start of the strategy review process. Gather
your team together to do a PEST analysis. After the analysis, you will get an overview of the
environment that your business is in, the factors that may affect it, and the issues that require
attention in the strategy.During the discussion, the leader should fill in the factors suggested by
the team regarding the political, economic, social, and technological conditions or PEST for short.
On a flip chart, draw a large square with four parts as shown in Figure 1.

Figure 1: Flip Chart for PEST Brainstorming

Under political analysis, your team may want to consider the political stability of the region, what
the chances of military action are, the legal framework for contract enforcement, trade regulations
and tariffs, intellectual property protection, who the favoured trading partners are, and related
topics.

Under economic analysis, discuss the types of economic system in the countries the company
operates, the amount of government intervention in the free market, the efficiency of the financial
markets, infrastructure quality, the skill level of the workforce, labour costs, and relevant factors.

The various central banks can lower the reserve requirements of the country’s banks so that in
difficult times, they don’t have to keep high deposits at hand and this leads to freeing up more
money for loans to companies.

For social analysis, look into the demographics, education, class structure, culture, entrepreneurial
spirit, and health and environmental consciousness. The values and attitudes that members of a
firm bring to the workplace are derived from sources such as religion, family, and social
institutions. These are attitudes towards change, success, work, risk-taking, use of time,
competition, achievement motivation, and authority.

For the technological analysis, discuss the recent technological developments, the technology’s
impact on cost, impact on the value chain structure, and the rate of technological diffusion.

4. Explain 'SWOT Analysis'. What are its merits and demerits

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By definition,
Strengths (S) and Weaknesses (W) are considered to be internal factors over which you have some
measure of control. Also, by definition, Opportunities (O) and Threats (T) are considered to be
external factors over which you have essentially no control.

SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position
of the business and its environment. Its key purpose is to identify the strategies that will create a
firm specific business model that will best align an organization’s resources and capabilities to the
requirements of the environment in which the firm operates.

Merits

SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it
involves a great subjective element. It is best when used as a guide, and not as a prescription.
Successful businesses build on their strengths, correct their weakness and protect against internal
weaknesses and external threats. They also keep a watch on their overall business environment
and recognize and exploit new opportunities faster than its competitors.

SWOT Analysis helps in strategic planning in following manner-

a. It is a source of information for strategic planning.

b. Builds organization’s strengths.
c. Reverse its weaknesses.
d. Maximize its response to opportunities.
e. Overcome organization’s threats.
f. It helps in identifying core competencies of the firm.
g. It helps in setting of objectives for strategic planning.
h. It helps in knowing past, present and future so that by using past and current data, future
plans can be chalked out.

SWOT Analysis provide information that helps in synchronizing the firm’s resources and
capabilities with the competitive environment in which the firm operates.

Demerits
SWOT Analysis is not free from its limitations. It may cause organizations to view circumstances
as very simple because of which the organizations might overlook certain key strategic contact
which may occur. Moreover, categorizing aspects as strengths, weaknesses, opportunities and
threats might be very subjective as there is great degree of uncertainty in market. SWOT Analysis
does stress upon the significance of these four aspects, but it does not tell how an organization can
identify these aspects for itself.

There are certain limitations of SWOT Analysis which are not in control of management. These
include-

a. Price increase;
b. Inputs/raw materials;
c. Government legislation;
d. Economic environment;
e. Searching a new market for the product which is not having overseas market due to import
restrictions; etc.

Internal limitations may include-

a. Insufficient research and development facilities;

b. Faulty products due to poor quality control;
c. Poor industrial relations;
d. Lack of skilled and efficient labour; etc

5. Explain the concept of low-cost leadership in the present context.

Low cost leadership strategies enable an organization to develop standardized products in large
volume at low cost, which give that organization a competitive edge over the competitors in the
market. When products are manufactured in bulk, the cost of production reduces, which facilitate
the organization to keep the prices of its products low in the market. Low prices capture abundant
customers for purchasing of related products and hence the sales & profitability of the organization
enhances greatly. Efficiency is emphasized in cost leadership strategies. In fact when products are
manufactured in abundance, the organization not only acquires the economies of scale but also the
effects of experience curve.

The manufacturing product is usually standardized one which is manufactured at a low cost & is
offered to large customers in the market. In order to maintain cost reduction strategies, the
organization should ascertain the cost reduction in all dimensions of the business. Besides the
production strategy, there should also be specific distribution strategy that is associated with the
production strategy & deals with extensive distribution. The Promotional Strategy should also
be in consistent with other strategies by highlighting the features of the products in a cost reductive
manner.

Requirements for Low Cost leadership Strategies

There are certain requirements that make the application of cost leadership strategies quite
successful. These essential features are as follow.

1. The organization should possess massive market share

2. The access to raw materials is effective
3. The labor & other significant inputs are beneficially accessed

The organization makes sure that these characteristics are available to it otherwise the competitors
copy the cost leadership strategies. For proper implementation of the formulated strategies, the
organization should also take into accounts the following efforts.

1. Engineering skills should be effectively processed

2. The manufacturing method & technique facilitate the suitable designing of products
3. Inexpensive capital should be available to the organization
4. The labor should be closely supervised
5. Costs should be tightly controlled
6. Quantitative targets provide basis for incentives
7. There should be a number of price sensitive customers in the market
8. The product differentiation can be achieved from limited number of ways
9. Customers in the market should not be sensitive to the differences in brands
 10. There are a lot of customers in the market with bargaining power
11. The strategies should be relevant to the differentiation
12. There are associating diseconomies or economies of scale
13. The maximum capacity of the organization should be utilized
14. There are linkages with distributors & suppliers

6. Explain the concept of differentiation strategy. Illustrate your answer with suitable
examples.

Differentiation strategy, as the name suggests, is the strategy that aims to distinguish a product
or service, from other similar products, offered by the competitors in the market. It entails
development of a product or service, that is unique for the customers, in terms of product design,
features, brand image, quality, or customer service.

Differentiation strategy is one of three Porter’s Generic Strategy; others are cost
leadership and focus.

When a firm pursues differentiation strategy, it attempts to become unique in the industry, by
offering those products and services, which have value to the customers. In this strategy, the firm
picks one or more such dimensions that are regarded as important by the customer’s flock. In this
way, the firm succeeds in creating a unique image in the market and gets the premium price for its
uniqueness.

EXAMPLES OF CORPORATE DIFFERENTIATION

Virgin Airlines

Spearheaded by Richard Branson, Virgin Airlines is one of the multiple industries grouped under
the “Virgin” label. Described by Branson as a company known for “innovation, quality and a sense
of fun”, Virgin Airlines has taken to the skies in an effort to make air travel affordable and
enjoyable. Virgin Atlantic, established in 1984, was born one night when Branson’s flight to the
Virgin Islands was cancelled. Undaunted, he charted a plane and offered his fellow travelers a seat
on the new plane for $29. His airline was born. Virgin America started in 2004, operating in the
United States and other western countries. Virgin’s business model is offering inexpensive fares,
full service flights and outstanding customer service.

Strategy Used

Virgin’s differentiation strategy is two-fold: pricing and service. By reducing the costs associated
with air travel, Virgin Airlines is able to remain competitive with the cost-cutting airline
companies. Lower costs, however, don’t translate into fewer services – Virgin is a full service
airline with on-plane WIFI, touchscreen seatback entertainment, and full service meals available
with roomy cabins.

Through acquisitions and subsidiaries, Virgin is able to operate in different markets around the
world, capitalizing on the Virgin name and promoting their services. Establishing a successful
airline company brings new sets of regulations and procedures, depending on what country the
airline is operating in. Virgin has remained consistent in maintaining their business
model: competitive pricing, excellent customer service; however, the airline has had its ups and
downs in the 30 years it has been airborne.

A clear strategy has enabled Virgin to maintain their presence in the global air travel market:
remain true to the Virgin brand. Promoting the brand and capitalizing on the Virgin name has been
essential to the success of the company. That helped to springboard the airline to popularity, but
the well-positioned airline is relying on their sound business strategy to keep them at the top of the
airline list.

Drivers of success/failure

Their two strategies: low costs and excellent service are both a part of their successes, and their
failures. By offering customers low costs, they are in direct competition with other low-fare airline
services and customers have multiple options. The extra amenities and customer service that is
exemplary are often the deciding factor in a customer’s choice to select Virgin over another airline.
(A stunning affirmation that Branson’s plan works.)

However, in the United States where regulations are strict and competition is fierce, the market is
not as easy to conquer. Because of the high number of amenities the airline offers, the costs
associated with the airline are high and offer lower profit margins. The power of the Virgin brand
is compelling, however, and the Virgin vision is for a long-term drive to success. In the eyes of
the corporation, the slow and steady race to profitability is preferable over the short (and short-
lived) success.

7. What is corporate level strategy? Briefly explain different corporate strategies

Corporate level Strategy: we can simply say that corporate level strategies are concerned with
questions about what business to compete in. Corporate Strategy involves the careful analysis of
the selection of businesses the company can successful compete in. Corporate level strategies
affect the entire organization and are considered delicate in the strategic planning process.

Characteristics of Corporate Strategy

 Corporate level strategies are formulated by the top management with inputs from middle
level management and lower level management in the formulation process and designing of
sub strategies
 Decisions are complex and affects the entire organization
 It is concerned with the efficient allocation and utilization of scarce resources for the benefit
of the organization
 Corporate level strategies are mapped out around the goal and objectives of an organization.
They seek to translate these goals and objectives to reality
 Typical examples of decisions made are decisions on products and markets

Types of corporate Strategy:

The three main types of corporate strategies are Growth strategies, stability strategies and
retrenchment.

Growth Strategy

Like the name implies, corporate strategies are those corporate level strategies designed to achieve
growth in key metrics such as sales / revenue, total assets, profits etc. A growth strategy could be
implemented by expanding operations both globally and locally; this is a growth strategy based on
internal factors which can be achieved through internal economies of scale. Aside from the
illustration of internal growth strategies above, an organization can also grow externally through
mergers, acquisitions and strategic alliances.

The two basic growth strategies are concentration strategies and diversification strategies.

Concentration strategy: This is mostly utilized for company’s producing product lines with real
growth potentials. The company concentrates more resources on the product line to increase its
participation in the value chain of the product. The two main types of concentration strategies are
vertical growth strategy and horizontal growth strategy.

Vertical growth strategy: As mentioned above, by utilizing this strategy, the company participates
in the value chain of the product by either taking up the job of the supplier or distributor. If the
company assumes the function or the role previously taken up by a supplier, we call it backward
integration, while it is called forward integration if a company assumes the function previously
provided by a distributor.

Horizontal growth strategy: Horizontal growth is achieved by expanding operations into other
geographical locations or by expanding the range of products or services offered in the existing
market. Horizontal growth results into horizontal integration which can be defined as the degree
in which a company increases production of goods or services at the same point on an industry’s
value chain.

Diversification Strategy

Richard Rummelt, a strategy guru at UCLA Anderson School of Management, is of the opinion
that companies think about diversification strategies when growth has reached its peak and there
is no opportunity for further growth in the original business of the company. What then is this
diversification strategy we speak of? A company is diversified when it is in two or more lines of
business operating in distinct and diverse market environments.
Two basic types of diversification strategies are concentric and conglomerate.

Concentric Diversification: This is also called related diversification. It involves the diversification
of a company into a related industry. This strategy is particularly useful to companies in leadership
position as the firm attempts to secure strategic fit in a new industry where the firm’s product
knowledge, manufacturing capability and marketing skills it used so effectively in the original
industry can be used just as well in the new industry it is diversifying into.

Conglomerate Diversification: This is also called unrelated diversification; it involves the

diversification of a company into an industry unrelated to its current industry. This type of
diversification strategy is often utilized by companies in saturated industries believed to be
unattractive, and without the knowledge or skill it could transfer to related products or services in
other industries.

Stability Strategy

Stability strategies are mostly utilized by successful organizations operating in a reasonably

predictable environment. It involves maintaining the current strategy that brought it success with
little or no change. There are three basic types of stability strategies, they are:

 No change Strategy: When a company adopts this strategy, it indicates that the company is
very much happy with the current operations, and would like to continue with the present
strategy. This strategy is utilized by companies who are “comfortable” with their competitive
position in its industry, and sees little or no growth opportunities within the said industry.

 Profit Strategy: In using this strategy, the company tries to sustain its profitability through
artificial means which may include aggressive cost cutting and raising sales prices, selling of
investments or assets, and removing non-core businesses. The profit strategy is useful in two
instances:
1. To help a company through tough times or temporary difficulty; and
2. To artificially boost the value of a company in the case of an Initial Public Offering (IPO)
 Pause/ Proceed with caution Strategy: This strategy is used to test the waters before continuing
with a full fledged strategy. It could be an intermediate strategy before proceeding with a
growth strategy or retrenchment strategy. The pause or proceed with caution strategy is seen
as a temporary strategy to be used until the environment becomes more hospitable or
consolidate resources after prolonged rapid growth.

Retrenchment Strategies

Retrenchment strategies are pursued when a company’s product lines are performing poorly as a
result of finding itself in a weak competitive position or a general decline in industry or markets.
The strategy seeks to improve the performance of the company by eliminating the weakness
pulling the company back. Examples of retrenchment strategies are:

 Turnaround Strategy: This strategy is adopted for the purpose of reversing the process of
decline. This strategy emphasizes operational efficiency and is most appropriate at the
beginning of the decline rather than the critical stage of the decline.
 Divestment Strategy: Divestment also known as divestiture is the selling off of assets for the
different goals a company seeks to attain. This strategy involves the cutting off of loss making
units, divisions or Strategic Business Units (“SBU”).
 Liquidation Strategy: Liquidation strategy is considered a last resort strategy, it is adopted by
company’s when all their efforts to bringing the company to profitability is futile. The
company chooses to abandon all activities totally, sell off its assets and see to the final close
and winding up of the business.

8. What is a turnaround strategy? When it becomes necessary? Describe different steps

involved in turnaround process.

“Turnaround strategy is a corporate practice designed and planned to protect (save) a loss-making
company and transform it into a profit-making one.”
In financial, commercial, corporate or from a business perspective, the turnaround strategy can be
defined as follows.

“Turnaround Strategy is a corporate action that is taken (performed) to deal with issues of a loss-
making (sick) company like increasing losses, lower return on capital employed, and continuous
decrease in the value of its shares.”

“Turnaround strategy is an analytical approach to solve the root cause failure of a loss-making
company to decide the most crucial reasons behind its failure. Here, a long-term strategic plan and
restructuring plans are designed and implemented to solve the issues of a sick company.”

A turnaround is essential to the survival of a failing business. Turnaround is a sustained positive

change in the performance of a business to obtain desired results. A successful turnaround is a
complex procedure that requires a strong management team and sound business core.

The turnaround also requires the leadership of a competent management, capital, and trust and
support of the company employees and shareholders.

Essentials of successful turnaround strategy:

Turnaround is a complex action, which requires execution of proper planning and support of
various groups such as employees, customers, shareholders, financial institutions etc.

The following are the essentials of successful turnaround strategy:

1. Diagnosing the problem:
This is the first step in the restructuring implementation process. To implement turnaround strategy
requires diagnosis of the sickness problem. Exact cause of the business failure is to be identified
to frame plans for the revival process. Proper screening helps to trap the root cause of the industrial
problem.

2. Proper planning and execution:

Once the evaluation has been completed, the next critical step in a turnaround in turnaround
planning. Proper planning is too made regarding resources, time frame and policies to be executed.
The sick company needs to hire a Corporate Turnaround Expert with many years of turnaround
experience
3. Communication:
Communication is a key factor for success in a business. Turnaround requires rapid response from
the shareholders, financial institutions, employees and the company management. Complete, clear
and prompt communication is necessary to implement turnaround strategy.

4. Availability of funds:
The key elements of any turnaround are financial restructuring. Lack of investment leads to low
crop yield and huge wastages. Availability of adequate funds brings the sick unit back to good
health, by implementing sound financial management and control.

5. Co-operation:
Turnaround requires co-operation from various groups of the business such as employees,
shareholders, management, investors, suppliers, creditors etc. It mainly requires the support of the
employees as their workload increases.

6. Viability of business:
Turnaround should be applicable only if there are chances of revival of business firm. Sometimes
business may not have bright future, but the survival of such unit may be difficult in the long run.

To help understand how turnaround management works, below is an outline of the 5 step process
involved. Having a good understanding of this process will make it easier to identify if and when,
it should be applied.

Step 1 – Define & Analyse

During this stage the definition of performance problems within the business are clearly
outlined. It is particularly important during this step that any areas of financial stress within the
business are identified and a thorough analysis undertaken.
The objective of this is to arrest any further decline in the business while continuing to trade and
avoid insolvency.

Step 2 – Scope & Strategy

Once the business has been stabilised, it is now time to commence a strategic planning
process. The first part of this is to scope the strengths, weaknesses, opportunities and threats
(SWOT analysis) of the business.
It is important during this stage to not only look internally (strengths and weaknesses) but to
strategically analyse the external environment (opportunities and threats) as well.
From the SWOT analysis, the long term vision, mission and objectives for the business can be
defined. Knowing where the business is heading then allows the development of a strategic plan.

Step 3 – Link & Action

Now it is time to take the strategic plan and develop an action plan. This is a list of actions and
tasks complete with time frames that must be undertaken to ultimately achieve the business
objectives.
The tasks are the daily, weekly and monthly activities to be done and with this strategic planning
process, each one will be contributing to the overall mission.

Step 4 – Implement

This step is not just about implementing the action plan, but also ensuring coaching and support
of all staff. Without this critical step, all the planning can go to waste.
It is important that employees are aligned with the overall vision for the business. This is achieved
through communication, consultation and coaching on a regular basis.

Step 5 – Review

With all the planning and implementation in place, it is now time to conduct regular reviews. This
ensures not only that continual improvement is achieved but also helps to identify any corrective
actions that may be needed.
In effect, turnaround management is very similar to the strategic planning process; however the
first step of identifying areas of stress in the business is critical. For any business where this stress
is already occurring, applying the above process, in consultation with a turnaround management
expert, will not only ensure the business turnaround but also the opportunity to improve and
develop well into the future.

9. Write short notes on: a. Policy b. Divestment

Policy

A policy is a deliberate system of principles to guide decisions and achieve rational outcomes. A
policy is a statement of intent, and is implemented as a procedure or protocol. Policies are generally
adopted by a governance body within an organization. Policies can assist in
both subjective and objective decision making. Policies to assist in subjective decision making
usually assist senior management with decisions that must be based on the relative merits of a
number of factors, and as a result are often hard to test objectively, e.g. work-life balance policy.
In contrast policies to assist in objective decision making are usually operational in nature and can
be objectively tested, e.g. password policy.

The term may apply to government, private sector organizations and groups, as well as
individuals. Presidential executive orders, corporate privacy policies, and parliamentary rules of
order are all examples of policy. Policy differs from rules or law. While law can compel or prohibit
behaviors (e.g. a law requiring the payment of taxes on income), policy merely guides actions
toward those that are most likely to achieve a desired outcome.

Policy may also refer to the process of making important organizational decisions, including the
identification of different alternatives such as programs or spending priorities, and choosing among
them on the basis of the impact they will have. Policies can be understood as political, managerial,
financial, and administrative mechanisms arranged to reach explicit goals. In public corporate
finance, a critical accounting policy is a policy for a firm/company or an industry that is considered
to have a notably high subjective element, and that has a material impact on the financial
statements.

Divestment

Divestment, also known as divestiture, is the opposite of an investment, and it is the process of
selling an asset for either financial, social or political goals. Assets that can be divested include
a subsidiary, business department, real estate, equipment and other property. Divestment can be
part of following either a corporate optimization strategy or political agenda, when investments are
reduced and firms withdraw from a particular geographic region or industry due to political or
social pressure.

10. write short notes on a. Shared values b. Experience curve

Shared values

Shared values represent an important component of most private and public organizations. In this
lesson, you will learn what shared values are and some key concepts about them.

Creating and implementing shared values is important for all organizations. They provide guidance
for organizational decision-making and also provide a kind of ethical compass for organizational
action.

Shared values are organizational values that are usually developed by the organization's
leadership and then adopted by the other members of the organization. The values are shared and
followed by all members of the organization when acting on behalf of the organization. They may
also be referred to as core values.

Shared values help to define what an organization is, what an organization does, and what an
organization aspires to be. It is common for shared values to be reduced to writing in a mission
statement, or a brief document describing why an organization exists. Shared values provide
overall guidance for organizational members to make the correct decision in a given situation.

Experience curve

Experience curve refers to a diagrammatic representation of the inverse relationship between the
total value-added costs of a product and the company experience in manufacturing and marketing
it. The concept reviews the history of the term and explores the relationship between production
cost and cumulative production quantity.

Experience Curve Definition

A diagrammatic representation of the inverse relationship between the total value-added costs of
a product and company experience in manufacturing and marketing it. For many products and
services, unit costs decrease with increasing experience. The idealised pattern describing this kind
of technological progress in a regular fashion is referred to as a learning curve, progress curve,
experience curve, or learning by 1999doing