Should Solidere adopt a marketing strategy? Why? Why not?
The political situation in Lebanon always seems to be changing. At times, like the saying goes, political calm only precedes chaos. At others, this political calm truly stabilizes the economy and growth follows. Encouraging news about the potential formation of a new government, at one point, pushed the Beirut Stock Exchange (BSE) higher with Solidere A and B shares having gained 7.87 percent and 6.18 percent, respectively. Investors, whether local or foreign, seemed optimistic. The beneficial impact of this rise led to more sales: the trade of Solidere A was 86,111 while Solidere B was 24,060. The total number of shares traded that day was 307,667 with a trading value of $4.47 million, meaning that the stock capitalization of the listed companies increased by 1.30 percent to reach $10.848 billion rather than the $10.707 billion for the previous session. Despite the increase in trades on the BSE following the news, the volume remained relatively low compared to historic levels. Trade was local; it was not foreign. Foreign investors who normally do not buy less than 50,000 shares are rarely found on the Beirut Stock Exchange. It is their capital that is acutely needed in Lebanon today!
What is the problem Solidere faces?
Should Solidere adopt a marketing strategy? Why? Why not?
If you were part of the decision-making team in Solidere, which functional level strategy would you adopt to improve the position of Solidere?
BE SURE TO USE THE ATTACHED TEXTBOOK AS ONE OF THE SOURCES.