Description
India is rated as the second preferred destination for FDIs in
the coming years.
Excess Capacity especially in the wake of WTO is becoming
a strategic issue of top priority (Steel, Textile, Polyester etc.)
Greenfield Investments is the preferred form for investment
in developing countries.
The No. of Parent Cos of TNCs operating in economy is
around 82k (India-815)
Only 2 coys from India are ranked in the top 100 non-
financial TNCs by Foreign Assets from the Developing
Countries.
The R & D expenditure by Indian Business firms is around
0.32% of Sales
Executive PG Diploma in International Business
Session 1
Business Strategy
K. Rangarajan
Coverage at a Glance
Module I
Strategic Management – Basics
? Strategic Management Process
? Crafting a Strategy
? Levels of Strategy
Module II
External & Industry Environment
? Constituents of External Environment
? Framework for Environmental Scanning
? Industry Analysis
Module III
Internal Resources & Capabilities
? Capabilities, core competencies & competitive advantage
? Value Chain Analysis
? SWOT Analysis Resources & competencies
Coverage at a Glance
Module IV
Business Level Strategies - I
? Cost & Differentiation Strategies
? BCG & GE MATRIX
? Functional Strategies & alignment
Module V
Business Level Strategies – II
? SWOT & Strategic Options
? Strategic Groups & Stgy Clock
Module VI
Corporate & Competitive Strategies
? Integration & Outsourcing
? Diversification & M&A strategies
? Offensive & Defensive Strategies
? First, second & late mover strategies
? Challenges of Internationalisation
Evaluation Components
Time bound
Post module
Quiz
Case
Before ET
Term
Paper
As Scheduled
End
Term
A Few Points to ponder
? India is rated as the second preferred destination for FDIs in
the coming years.
? Excess Capacity especially in the wake of WTO is becoming
a strategic issue of top priority (Steel, Textile, Polyester etc.)
? Greenfield Investments is the preferred form for investment
in developing countries.
? The No. of Parent Cos of TNCs operating in economy is
around 82k (India-815)
? Only 2 coys from India are ranked in the top 100 nonfinancial TNCs by Foreign Assets from the Developing
Countries.
? The R & D expenditure by Indian Business firms is around
0.32% of Sales
? The downslide of Traditional business houses (Great Indian
Churn)
? Growing interdependence of global economies
? Growing Economic Turbulence across the world
? Crash of TNCs like Standard Oil, Union Carbide, Enron,
Lehman ………
India’s Most Admired Companies
2010
1.
2.
3.
4.
5.
6.
7.
8.
9.
2009
RIL
Infosys
TCS
Airtel
ITC
L&T
ICICI
WIPRO
HDFC
Bank
10. HDFC
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
RIL
Airtel
Infosys
TCS
L&T
ITC
ICICI
HDFC
WIPRO
HDFC
Bank
2006
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
RIL
TCS
Infosys
Airtel
WIPRO
ITC
HLL
ICICI
Rel Info
L&T
PRIVATE SECTOR
BT ranking of most valuable companies: 2006, 2009 & 2010
2010
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
2009
ONGC
NTPC
SBI
MMTC
BHEL
NMDC
IOC
SAIL
GAIL
Power G
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
ONGC
NTPC
MMTC
NMDC
SBI
BHEL
IOC
SAIL
Power G
GAIL
2006
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
PUBLIC SECTOR
ONGC
NTPC
IOC
BHEL
SBI
NMDC
SAIL
GAIL
NALCO
MTNL
Business Strategy questions
Why is it that some
firms perform well
over time relative to
competitors, while
other firms fail?
Who are the
stakeholders relative
to firm performance
(e.g., managers,
owners, investors,
employees,
customers,
suppliers, …)?
We will learn to apply strategic
management “toolkits” to
identify issues, evaluate
alternatives, and choose &
implement actions.
7
What drives
business
performance (value
creation)?
Why performance differences among firms?
Concentration of market power, monopoly
positions ? (Bain)
Opportunistic innovation? (Schumpeter)
Efficiency through vertical integration?
Efficiency through control of transaction
costs? (Williamson)
Capability to learn & adapt continuously
8
Drivers of performance (brief version)
• Desire - some firms seek dominance (e.g. WalMart,
Canon, Dell, Sony, RIL, SBI)
– National competition - firms may be protected
from the forces of competition (‘HAL’ for
example)
• Ability
– To identify a valuable opportunity.
– To innovate & protect the innovation (others see
it and are attracted by first mover success).
– To leverage firm-specific capabilities and
resources.
9
Strategy Formulation
The
Environment
“Threats &
Opportunities
Management’s
values &
Organization’s
capabilities -
attitude toward
risk
“Strengths &
Weaknesses”
Strategy
Goals
10
Strategic Management Process
The Environment “Threats & Opportunities”
Management’s values &
attitude toward risk
GOAL
Execution/
Implementation
STRATEGY
Control
Organization’s capabilities “Strengths & Weaknesses”
Performance
Formulation
11
Implementation
More specifically …
Strategy consists of organization-wide
commitments and actions required for a firm to
exploit its competencies, gain competitive
advantage, and earn above-average returns
*commitments - long term (irreversible) commitments
*actions - involving substantial creation, acquisition, or redeployment of
resources
*competitive advantage(s) – competitors are unable to copy/imitate
•Average (or “accounting”) returns
•Returns equal to those an investor expects to earn from other investments
with a similar amount of risk
•Above-Average (or “economic”) returns
•Returns from firm-specific strategies that competitors are not simultaneously
implementing
12
Limited sources of value creation
Strategies
Structures/business models
Products/processes
Resource/capability creation
Resource/capability combination
New markets
But …good business ideas are hard to find!
13
Competitive Landscape
Dynamics of strategic
maneuvering among global
and innovative combatants
Hyper Competition
Price-quality positioning,
new know-how, first mover
Protect or invade established
product or geographic
markets
Fundamental nature of
competition is changing
14
Competitive Landscape
Hyper Competition
Emergence of Global Economy
Goods, services, people,
skills, and ideas move freely
across geographic borders.
Spread of economic
innovations around the
world.
Political and cultural
adjustments are required.
Fundamental nature of
competition is changing
15
Competitive Landscape
Hyper Competition
Emergence of Global Economy
Rapid Tech Change
Increasing rate of
technological change
and diffusion
The information age
Increasing knowledge
intensity
Fundamental nature of
competition is changing
16
Strategic flexibility?
How can a firm develop dynamic capabilities
in response to perpetually turbulent and
uncertain competitive environments?
Can firms change? (i.e., success breeds
failure)?
17
Strategic Flexibility
Organizational
slack
Strategic
reorientation
Capacity to
learn
18
Strategic
Flexibility
flexibility
I/O Model of Above-Average Returns
Demographic
Poliitical/Leg
al
Industry
Environment
Technologcal
Competitor
Environment
Socio
Cultural
19
Economic
1. Strategy dictated
by the external
environments of
the firm (what
opportunities exist
in these
environments?)
2. Firm develops
internal skills
required by
external
environment
(what can the firm
do about the
opportunities?)
Resource-based Model of Above Average Returns
Firm’s
Resources
1.Strategy dictated by
unique resources
and capabilities of
the firm (what can
the firm do best?)
2.Find an environment
in which to exploit
these assets (where
are the best
opportunities?)
20
Strategic Intent
The resources required to realize
the strategy may not be available
initially
? Intent is about seeing the end
state and deciding how to
leverage internal resources,
capabilities, and core competencies
in a “staged” approach
?
21
Strategic Management & Strategy
Strategic Management
Art & science of formulating, implementing, and
evaluating, cross-functional decisions that enable
an organization to achieve its objectives.
Strategy
Means by which long-term objectives are
achieved
Other Views of Strategy
Strategy as Plan:
Consciously intended course of action which
may be in the form of guidelines/report
guiding decision making.
Strategy as Ploy:
Short-term tactic or a maneuver, intended to
outwit a competitor.
Strategy as Pattern:
It is after-the-fact view which emerges over a
period of time.
Other Views of Strategy
Strategy as Position:
Managers see their firm as occupying a space
within an environment in terms of Market
share, Profits, Assets etc.
Strategy as Perspective:
This is a way of perceiving the world, and
individuals in an organization are united by
common thinking and behaviour.
Eg.: Lucent Tech. claims that it makes the
things that make communications work.
Levels of Strategy
Levels of Strategy:
•Corporate Level – Choice of business, dividend policies,
sources of long term financing and priorities for growth
•Business Level – Plant location, marketing segmentation and
geographic coverage, and distribution channels
•Functional Level – Levels of Inventory, degree of supervision,
selection of production equipment etc.
The Strategy-Making Pyramid
A Single-Business Company
Responsibility of
corporate-level managers
Business
Strategy
Responsibility of heads of
major functional activities
within a business
Responsibility of plant
managers, geographic
unit
managers, and lower-level
supervisors
Two-Way influence
Functional Strategies (R&D,
manufacturing, marketing,
finance, human resources, etc.)
Two-Way influence
Operating Strategies
(regions and districts, plants,
departments within functional areas)
The Strategy-Making Pyramid
A Diversified Company
Responsibility of
corporate-level
managers
Corporate
Strategy
Two-Way influence
Responsibility of
business-level
general managers
Business Strategies
Two-Way influence
Responsibility of heads
of major functional
activities within a
business unit
or division
Responsibility of plant
managers, geographic
unit managers,
and lower-level
supervisors
Functional Strategies (R&D,
manufacturing, marketing,
finance, human resources, etc.)
Two-Way influence
Operating Strategies
(regions and districts, plants, departments
within functional areas)
A Company’s Actual Strategy Is Partly Planned and Partly
Reactive
Company
Experiences,
Know-how,
Resource
Strengths and
Weaknesses,
and
Competitive
Capabilities
Actual
Company
Strategy
Cases
?Describe actual situations
? Forces you to choose among different options
and plan implementation actions
?Cases include background events
and supporting materials
?
?
?
?
29
Financial statements
Operational data
Product lists
Transcripts of interviews with employees
Case Skills
?Evaluate
? multiple aspects of a business situation
? differentiate significant factors
? deal with uncertainty, missing information
?Envision
? explanations not readily apparent
? outcomes of decisions
?Integrate/Synthesize
? understand firm-level effects
? interdependencies
30
Case Analysis
?Put yourself “inside” the case
? Strategic decision maker
? Board member
? Outside consultant
?Purpose is to diagnose problems and find
solutions. Unravel the case material.
? Background/Problem Statement 10-20%
? Strategic Analysis/Options
60-75 %
? Recommendations/Action Plan 10-20%
31
With best wishes - Rangarajan
An organization’s Mission
? Reflects Management’s vision of what the
organization seeks to do and to become
? Sets forth a meaningful direction for the
organization
? Indicates an intent to stake out a particular
business position
? Outline “Who we are, What we do, and Where
we are headed”.
Importance of Mission
Benefits from a strong mission
Unanimity of Purpose
Resource Allocation
Mission
Organizational Climate
Focal point for work
structure
Mission Statement
Enduring Statements of Purpose that
distinguish one organisation from other
similar enterprises.
?
?
?
?
?
?
Insure unanimity of purpose
Arouse positive feelings about the firm
Provide direction
Provide a basis for objectives and strategies
Serve as a focal point
Resolve divergent views among managers.
Components of Mission Statement
? Customers (the target market)
? Products/Services (offerings and value provided to
customers)
? Geographic Markets (where the firm seeks customers)
? Technology (the technology used to produce and market
products)
? Concern for Survival/Growth/Profits (the firm’s concern
for financial soundness)
? Philosophy (the firm’s values, ethics, beliefs)
? Public Image (contributions the firm makes to
communities)
? Employees (the importance of managers and
employees)
? Distinctive Competence (how the firm is different or
better than competitors)
Examples:
Mission and Vision
Statements
Microsoft Corporation
our mission is to enable people and
Empower people through
great software anytime,
anyplace, and on any
device.
businesses
throughout
the
world
to
realize their full potential. We consider our
mission statement a promise to our
customers. We deliver on that promise by
striving to create technology that is
accessible to everyone—regardless of
age or ability..
Microsoft - Values
? As a company, and as individuals, we value integrity,
honesty, openness, personal excellence, constructive
self-criticism, continual self-improvement, and mutual
respect. We are committed to our customers and
partners and have a passion for technology. We take on
big challenges, and pride ourselves on seeing them
through. We hold ourselves accountable to our
customers, shareholders, partners, and employees by
honoring our commitments, providing results, and
striving for the highest quality.
Examples:
Mission and Vision
Statements
Intel
Our vision: Getting to a billion connected computers
worldwide, millions of servers, and trillions of dollars of ecommerce. Intel’s core mission is being the building block
supplier to the Internet economy and spurring efforts to
make the Internet more useful. Being connected is now at
the center of people’s computing experience. We are
helping to expand the capabilities of the PC platform and
the Internet.
Fresh Look at Intel
? Our mission
Delight our customers, employees, and shareholders by relentlessly
delivering the platform and technology advancements that become essential
to the way we work and live.
Our values
Customer orientation
Results orientation
Risk taking
Great place to work
Quality
Discipline
Our objectives
Extend our silicon technology and manufacturing leadership
Deliver unrivaled microprocessors and platforms
Grow profitability worldwide
Excel in customer orientation
Examples:
Mission and Vision Statements
Mission Statement of Jet Airways
Jet Airways will be the most preferred domestic airline in India. It will be the
automatic first choice carrier for the travelling public and set standards, which other
competing airlines will seek to match.
Jet Airways will achieve this pre-eminent position by offering a high quality of service
and reliable, comfortable and efficient operations.
Jet Airways will be an airline which is going to upgrade the concept of domestic
airline travel - be a world class domestic airline.
Jet Airways will achieve these objectives whilst simultaneously ensuring consistent
profitability, achieving healthy, long-term returns for the investors and providing its
employees with an environment for excellence and growth.
Examples:
Mission and Vision Statements
Mission Statement of Videocon
Vision & Mission
Videocon’s mission: a reflection of continuity and change
Videocon’s mission expression has been crafted to envelope both extant and
emerging realities:
“To delight and deliver beyond expectation through ingenious strategy, intrepid
entrepreneurship, improved technology, innovative products, insightful marketing
and inspired thinking about the future.”
Mission of L&T
The L&T vision reflects the collective goal of the company. It was drafted
through a large scale interactive process which engaged employees at every
level, worldwide.
Mission Statement Evaluation
Matrix
COMPONENTS
Organization
Videocon
L&T
Customers
Products
Services
Markets
Concern for
Survival,
Growth,
Profitability
Partial
No
No
Yes
Yes
Yes
No
Yes
Yes
Yes
Technology
Mission Statement Evaluation
Matrix
COMPONENTS
Philosophy
SelfConcept
Concern for
Public Image
Concern for
Employees
Videocon
Yes
Yes
No
No
L&T
Yes
Yes
Yes
Yes
Organization
doc_154251406.pdf
India is rated as the second preferred destination for FDIs in
the coming years.
Excess Capacity especially in the wake of WTO is becoming
a strategic issue of top priority (Steel, Textile, Polyester etc.)
Greenfield Investments is the preferred form for investment
in developing countries.
The No. of Parent Cos of TNCs operating in economy is
around 82k (India-815)
Only 2 coys from India are ranked in the top 100 non-
financial TNCs by Foreign Assets from the Developing
Countries.
The R & D expenditure by Indian Business firms is around
0.32% of Sales
Executive PG Diploma in International Business
Session 1
Business Strategy
K. Rangarajan
Coverage at a Glance
Module I
Strategic Management – Basics
? Strategic Management Process
? Crafting a Strategy
? Levels of Strategy
Module II
External & Industry Environment
? Constituents of External Environment
? Framework for Environmental Scanning
? Industry Analysis
Module III
Internal Resources & Capabilities
? Capabilities, core competencies & competitive advantage
? Value Chain Analysis
? SWOT Analysis Resources & competencies
Coverage at a Glance
Module IV
Business Level Strategies - I
? Cost & Differentiation Strategies
? BCG & GE MATRIX
? Functional Strategies & alignment
Module V
Business Level Strategies – II
? SWOT & Strategic Options
? Strategic Groups & Stgy Clock
Module VI
Corporate & Competitive Strategies
? Integration & Outsourcing
? Diversification & M&A strategies
? Offensive & Defensive Strategies
? First, second & late mover strategies
? Challenges of Internationalisation
Evaluation Components
Time bound
Post module
Quiz
Case
Before ET
Term
Paper
As Scheduled
End
Term
A Few Points to ponder
? India is rated as the second preferred destination for FDIs in
the coming years.
? Excess Capacity especially in the wake of WTO is becoming
a strategic issue of top priority (Steel, Textile, Polyester etc.)
? Greenfield Investments is the preferred form for investment
in developing countries.
? The No. of Parent Cos of TNCs operating in economy is
around 82k (India-815)
? Only 2 coys from India are ranked in the top 100 nonfinancial TNCs by Foreign Assets from the Developing
Countries.
? The R & D expenditure by Indian Business firms is around
0.32% of Sales
? The downslide of Traditional business houses (Great Indian
Churn)
? Growing interdependence of global economies
? Growing Economic Turbulence across the world
? Crash of TNCs like Standard Oil, Union Carbide, Enron,
Lehman ………
India’s Most Admired Companies
2010
1.
2.
3.
4.
5.
6.
7.
8.
9.
2009
RIL
Infosys
TCS
Airtel
ITC
L&T
ICICI
WIPRO
HDFC
Bank
10. HDFC
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
RIL
Airtel
Infosys
TCS
L&T
ITC
ICICI
HDFC
WIPRO
HDFC
Bank
2006
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
RIL
TCS
Infosys
Airtel
WIPRO
ITC
HLL
ICICI
Rel Info
L&T
PRIVATE SECTOR
BT ranking of most valuable companies: 2006, 2009 & 2010
2010
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
2009
ONGC
NTPC
SBI
MMTC
BHEL
NMDC
IOC
SAIL
GAIL
Power G
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
ONGC
NTPC
MMTC
NMDC
SBI
BHEL
IOC
SAIL
Power G
GAIL
2006
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
PUBLIC SECTOR
ONGC
NTPC
IOC
BHEL
SBI
NMDC
SAIL
GAIL
NALCO
MTNL
Business Strategy questions
Why is it that some
firms perform well
over time relative to
competitors, while
other firms fail?
Who are the
stakeholders relative
to firm performance
(e.g., managers,
owners, investors,
employees,
customers,
suppliers, …)?
We will learn to apply strategic
management “toolkits” to
identify issues, evaluate
alternatives, and choose &
implement actions.
7
What drives
business
performance (value
creation)?
Why performance differences among firms?
Concentration of market power, monopoly
positions ? (Bain)
Opportunistic innovation? (Schumpeter)
Efficiency through vertical integration?
Efficiency through control of transaction
costs? (Williamson)
Capability to learn & adapt continuously
8
Drivers of performance (brief version)
• Desire - some firms seek dominance (e.g. WalMart,
Canon, Dell, Sony, RIL, SBI)
– National competition - firms may be protected
from the forces of competition (‘HAL’ for
example)
• Ability
– To identify a valuable opportunity.
– To innovate & protect the innovation (others see
it and are attracted by first mover success).
– To leverage firm-specific capabilities and
resources.
9
Strategy Formulation
The
Environment
“Threats &
Opportunities
Management’s
values &
Organization’s
capabilities -
attitude toward
risk
“Strengths &
Weaknesses”
Strategy
Goals
10
Strategic Management Process
The Environment “Threats & Opportunities”
Management’s values &
attitude toward risk
GOAL
Execution/
Implementation
STRATEGY
Control
Organization’s capabilities “Strengths & Weaknesses”
Performance
Formulation
11
Implementation
More specifically …
Strategy consists of organization-wide
commitments and actions required for a firm to
exploit its competencies, gain competitive
advantage, and earn above-average returns
*commitments - long term (irreversible) commitments
*actions - involving substantial creation, acquisition, or redeployment of
resources
*competitive advantage(s) – competitors are unable to copy/imitate
•Average (or “accounting”) returns
•Returns equal to those an investor expects to earn from other investments
with a similar amount of risk
•Above-Average (or “economic”) returns
•Returns from firm-specific strategies that competitors are not simultaneously
implementing
12
Limited sources of value creation
Strategies
Structures/business models
Products/processes
Resource/capability creation
Resource/capability combination
New markets
But …good business ideas are hard to find!
13
Competitive Landscape
Dynamics of strategic
maneuvering among global
and innovative combatants
Hyper Competition
Price-quality positioning,
new know-how, first mover
Protect or invade established
product or geographic
markets
Fundamental nature of
competition is changing
14
Competitive Landscape
Hyper Competition
Emergence of Global Economy
Goods, services, people,
skills, and ideas move freely
across geographic borders.
Spread of economic
innovations around the
world.
Political and cultural
adjustments are required.
Fundamental nature of
competition is changing
15
Competitive Landscape
Hyper Competition
Emergence of Global Economy
Rapid Tech Change
Increasing rate of
technological change
and diffusion
The information age
Increasing knowledge
intensity
Fundamental nature of
competition is changing
16
Strategic flexibility?
How can a firm develop dynamic capabilities
in response to perpetually turbulent and
uncertain competitive environments?
Can firms change? (i.e., success breeds
failure)?
17
Strategic Flexibility
Organizational
slack
Strategic
reorientation
Capacity to
learn
18
Strategic
Flexibility
flexibility
I/O Model of Above-Average Returns
Demographic
Poliitical/Leg
al
Industry
Environment
Technologcal
Competitor
Environment
Socio
Cultural
19
Economic
1. Strategy dictated
by the external
environments of
the firm (what
opportunities exist
in these
environments?)
2. Firm develops
internal skills
required by
external
environment
(what can the firm
do about the
opportunities?)
Resource-based Model of Above Average Returns
Firm’s
Resources
1.Strategy dictated by
unique resources
and capabilities of
the firm (what can
the firm do best?)
2.Find an environment
in which to exploit
these assets (where
are the best
opportunities?)
20
Strategic Intent
The resources required to realize
the strategy may not be available
initially
? Intent is about seeing the end
state and deciding how to
leverage internal resources,
capabilities, and core competencies
in a “staged” approach
?
21
Strategic Management & Strategy
Strategic Management
Art & science of formulating, implementing, and
evaluating, cross-functional decisions that enable
an organization to achieve its objectives.
Strategy
Means by which long-term objectives are
achieved
Other Views of Strategy
Strategy as Plan:
Consciously intended course of action which
may be in the form of guidelines/report
guiding decision making.
Strategy as Ploy:
Short-term tactic or a maneuver, intended to
outwit a competitor.
Strategy as Pattern:
It is after-the-fact view which emerges over a
period of time.
Other Views of Strategy
Strategy as Position:
Managers see their firm as occupying a space
within an environment in terms of Market
share, Profits, Assets etc.
Strategy as Perspective:
This is a way of perceiving the world, and
individuals in an organization are united by
common thinking and behaviour.
Eg.: Lucent Tech. claims that it makes the
things that make communications work.
Levels of Strategy
Levels of Strategy:
•Corporate Level – Choice of business, dividend policies,
sources of long term financing and priorities for growth
•Business Level – Plant location, marketing segmentation and
geographic coverage, and distribution channels
•Functional Level – Levels of Inventory, degree of supervision,
selection of production equipment etc.
The Strategy-Making Pyramid
A Single-Business Company
Responsibility of
corporate-level managers
Business
Strategy
Responsibility of heads of
major functional activities
within a business
Responsibility of plant
managers, geographic
unit
managers, and lower-level
supervisors
Two-Way influence
Functional Strategies (R&D,
manufacturing, marketing,
finance, human resources, etc.)
Two-Way influence
Operating Strategies
(regions and districts, plants,
departments within functional areas)
The Strategy-Making Pyramid
A Diversified Company
Responsibility of
corporate-level
managers
Corporate
Strategy
Two-Way influence
Responsibility of
business-level
general managers
Business Strategies
Two-Way influence
Responsibility of heads
of major functional
activities within a
business unit
or division
Responsibility of plant
managers, geographic
unit managers,
and lower-level
supervisors
Functional Strategies (R&D,
manufacturing, marketing,
finance, human resources, etc.)
Two-Way influence
Operating Strategies
(regions and districts, plants, departments
within functional areas)
A Company’s Actual Strategy Is Partly Planned and Partly
Reactive
Company
Experiences,
Know-how,
Resource
Strengths and
Weaknesses,
and
Competitive
Capabilities
Actual
Company
Strategy
Cases
?Describe actual situations
? Forces you to choose among different options
and plan implementation actions
?Cases include background events
and supporting materials
?
?
?
?
29
Financial statements
Operational data
Product lists
Transcripts of interviews with employees
Case Skills
?Evaluate
? multiple aspects of a business situation
? differentiate significant factors
? deal with uncertainty, missing information
?Envision
? explanations not readily apparent
? outcomes of decisions
?Integrate/Synthesize
? understand firm-level effects
? interdependencies
30
Case Analysis
?Put yourself “inside” the case
? Strategic decision maker
? Board member
? Outside consultant
?Purpose is to diagnose problems and find
solutions. Unravel the case material.
? Background/Problem Statement 10-20%
? Strategic Analysis/Options
60-75 %
? Recommendations/Action Plan 10-20%
31
With best wishes - Rangarajan
An organization’s Mission
? Reflects Management’s vision of what the
organization seeks to do and to become
? Sets forth a meaningful direction for the
organization
? Indicates an intent to stake out a particular
business position
? Outline “Who we are, What we do, and Where
we are headed”.
Importance of Mission
Benefits from a strong mission
Unanimity of Purpose
Resource Allocation
Mission
Organizational Climate
Focal point for work
structure
Mission Statement
Enduring Statements of Purpose that
distinguish one organisation from other
similar enterprises.
?
?
?
?
?
?
Insure unanimity of purpose
Arouse positive feelings about the firm
Provide direction
Provide a basis for objectives and strategies
Serve as a focal point
Resolve divergent views among managers.
Components of Mission Statement
? Customers (the target market)
? Products/Services (offerings and value provided to
customers)
? Geographic Markets (where the firm seeks customers)
? Technology (the technology used to produce and market
products)
? Concern for Survival/Growth/Profits (the firm’s concern
for financial soundness)
? Philosophy (the firm’s values, ethics, beliefs)
? Public Image (contributions the firm makes to
communities)
? Employees (the importance of managers and
employees)
? Distinctive Competence (how the firm is different or
better than competitors)
Examples:
Mission and Vision
Statements
Microsoft Corporation
our mission is to enable people and
Empower people through
great software anytime,
anyplace, and on any
device.
businesses
throughout
the
world
to
realize their full potential. We consider our
mission statement a promise to our
customers. We deliver on that promise by
striving to create technology that is
accessible to everyone—regardless of
age or ability..
Microsoft - Values
? As a company, and as individuals, we value integrity,
honesty, openness, personal excellence, constructive
self-criticism, continual self-improvement, and mutual
respect. We are committed to our customers and
partners and have a passion for technology. We take on
big challenges, and pride ourselves on seeing them
through. We hold ourselves accountable to our
customers, shareholders, partners, and employees by
honoring our commitments, providing results, and
striving for the highest quality.
Examples:
Mission and Vision
Statements
Intel
Our vision: Getting to a billion connected computers
worldwide, millions of servers, and trillions of dollars of ecommerce. Intel’s core mission is being the building block
supplier to the Internet economy and spurring efforts to
make the Internet more useful. Being connected is now at
the center of people’s computing experience. We are
helping to expand the capabilities of the PC platform and
the Internet.
Fresh Look at Intel
? Our mission
Delight our customers, employees, and shareholders by relentlessly
delivering the platform and technology advancements that become essential
to the way we work and live.
Our values
Customer orientation
Results orientation
Risk taking
Great place to work
Quality
Discipline
Our objectives
Extend our silicon technology and manufacturing leadership
Deliver unrivaled microprocessors and platforms
Grow profitability worldwide
Excel in customer orientation
Examples:
Mission and Vision Statements
Mission Statement of Jet Airways
Jet Airways will be the most preferred domestic airline in India. It will be the
automatic first choice carrier for the travelling public and set standards, which other
competing airlines will seek to match.
Jet Airways will achieve this pre-eminent position by offering a high quality of service
and reliable, comfortable and efficient operations.
Jet Airways will be an airline which is going to upgrade the concept of domestic
airline travel - be a world class domestic airline.
Jet Airways will achieve these objectives whilst simultaneously ensuring consistent
profitability, achieving healthy, long-term returns for the investors and providing its
employees with an environment for excellence and growth.
Examples:
Mission and Vision Statements
Mission Statement of Videocon
Vision & Mission
Videocon’s mission: a reflection of continuity and change
Videocon’s mission expression has been crafted to envelope both extant and
emerging realities:
“To delight and deliver beyond expectation through ingenious strategy, intrepid
entrepreneurship, improved technology, innovative products, insightful marketing
and inspired thinking about the future.”
Mission of L&T
The L&T vision reflects the collective goal of the company. It was drafted
through a large scale interactive process which engaged employees at every
level, worldwide.
Mission Statement Evaluation
Matrix
COMPONENTS
Organization
Videocon
L&T
Customers
Products
Services
Markets
Concern for
Survival,
Growth,
Profitability
Partial
No
No
Yes
Yes
Yes
No
Yes
Yes
Yes
Technology
Mission Statement Evaluation
Matrix
COMPONENTS
Philosophy
SelfConcept
Concern for
Public Image
Concern for
Employees
Videocon
Yes
Yes
No
No
L&T
Yes
Yes
Yes
Yes
Organization
doc_154251406.pdf