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INDEX

1. Module Title
……………………………………………………… 02

2. Instruction Sheet ..
…………………………………………….. 03

3. Questionary Sheet
……………………………………………. 04

4. Table of Content
………………………………………………. 05

5. List of Tables & Figures


………………………………………. 06

6. Answer to Question – 1
……………………………………. 07 - 19

7. Answer to Question – 2
……………………………………. 20 - 28

8. Answer to Question – 3
……………………………………. 29 - 35

9. References
……………………………………………………….. 36
- 38

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MSc in Engineering Business Management
University of Warwick
UK

MODULE TITLE : Business Strategy & Strategic Management

MODULE DATES : 8 - 12 February 2010

PARTICIPANT’S NAME : SURENDRA PATIL

COMPANY : Laxmi Oil Pumps & Systems Pvt. Ltd.

DUE DATE OF RECEIPT OF THIS PMA AT CII : 29 March 2010

MODULE TUTOR : Mr. Nigel Brennan

Total Marks
Marks Awarded
Question 1

Question 2

Question 3

Question 4

Marks Awarded

Page 2 of 44
CII - WMG

INSTRUCTION SHEET FOR

SUBMISSION OF POST MODULE ASSIGNMENT


(Please read through this carefully)

1. The Post Module Assignment must be sent in DUPLICATE (2 hard copies)


to :

Course Administrator
Mr. S D Puranik
Executive Director
CII Naoroji Godrej Centre of Excellence
Godrej Station-side Colony
Opposite Vikhroli Railway Station
Vikhroli (East)
Mumbai – 400 079

2. The PMA must be accompanied by PROOF OF POSTAL DESPATCH.


Alternatively, the proof of postal despatch could also be faxed or sent by post.

3. Please include the Cover Sheet, the Instruction Sheets and the Question Sheet
alongwith your Answers.

4. The PMA should be typed, printed or neatly written on A-4 sheets.

5. Please number / index the pages.

SUBMISSION DATES:

6. The last date for receipt of PMA at CII Naoroji Godrej Centre of
Excellence for the module on Business Strategy & Strategic Management
held during 8 – 12 February 2010 is 29 March 2010.

LATE SUBMISSION

7. 3% per working day will be deducted for late submission, up to two weeks
(14 days) late, after which no credit will be awarded.

Page 3 of 44
MSc in Engineering Business Management
WMG, University of Warwick, UK

Business Strategy & Strategic Management

Post Module Assignment

Answer 3 from the 4 questions below:

Q1. Select a large company from an industry with which you are familiar, or alternatively
a strategic business unit or functional department within the company.
Write a brief introduction, describing the history, purpose and organisation of the company
or business unit. Describe the products/services and markets with which it is involved.
Using the Internal Factor Evaluation Matrix and External Factor Evaluation Matrix
formulate a simple strategic audit of the company or business unit.

Q2. How are the SWOT Matrix, SPACE Matrix, BCG Matrix, IE Matrix and Grand Strategy
Matrix similar? How are they different?

Q3. What are the major advantages and disadvantages of an integrative strategy?

Q4. Analyse the business model of a company of your choice, describe the company’s core
competencies and threshold competencies.

Care should be taken with regard to structure, content, critical analysis and original
comment.
Relevant course material, strategic models and appropriate references (including
websites) should be included.

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Table of Content
No. Of Contents Page
Content No.
1.1 Introduction - Problem Defination 07
1.2 History of Organisation 07
1.3 Present Status of Organisation 10
1.4 Vision statement of LOPSPL 15
1.5 Mission statement 15
1.6 Analysis based on Audit point 15
1.7 Conclusión & Suggestión 19
2.1 Introduction - Comprehensive Strategy 20
Formulation Framework
2.2 Theory of Different Analytical Tools 21
2.2.1 SWOT Matriz 21
2.2.2 BCG Matriz 22
2.2.3 Internal External (IE) Matrix 24
2.2.4 The Strategic Position and Action Evaluation 25
(SPACE) Matrix
2.2.5 Grand Strategy Matrix 26
2.3 Analysis 27
2.4 Conclusion 28
3.1 Introduction of Integrative Strategies 29
3.2 Vertical integration 31
3.2.1 Disadvantages of vertical integration 33
3.3 Horizontal Integration 33
3.3.1 Disadvantages of Horizontal integration 34
3.4 Conclusión 35

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List of Tables & Fig
ures

[A] List of Tables :

Sr Table Title of Table Page


.N No. No.
o.
1. 1.1 Overview Matrix 16
2 1.2 External Factor Evaluation Matrix for LOPSPL 17
3 1.3 Internal Factor Evaluation Matrix for LOPSPL 18
4 2.1 Example Factors That Make Up the SPACE 25
Matrix Axis
5 3.1 Alternate Strategies & Examples 30

[B] List of Figures :


Sr Fig. Title of Figure Page
.N No. No.
o.
1 1.1 Growth of Laxmi Group 08
2 1.2 Growth of Individual Unite 08
3 1.3 Integrated Business Model 09
4 1.4 Business Model After De-Integration 09
5 1.5 LOPSPL’s Sales Growth 11
6 1.6 LOPSPL’s Customer wise business share 11
7 1.7 Outsourcing : Relative Ranking For Countries, 13
2003
8 1.8 Outsourcing : Relative Ranking For Countries 14

Snapshot Matrix, 2003
9 1.9 The Internal – External (IE) Matrix 19
1 2.1 Comprehensive Strategy Formulation Frame 20
0 Work
1 2.2 SWOT Analysis Matrix 22
1
1 2.3 The BCG Matrix 23
2
1 2.4 The Internal-External (IE) Matrix 24
3

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1 2.5 The SPACE Matrix 26
4
1 2.6 The GRAND Strategy Matrix 27
5
1 3.1 The Five Tasks of Strategic Management 29
6

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1.1 Introduction Problem Defination:-

Laxmi Oil Pumps & Systems Pvt Ltd (henceforth referred as


LOPSPL) is selected for the study which is a medium scale
industry located in private industrial estate. Group Company
Laxmi foundry (manufacturer of graded cast iron casting) &
LOPSPL located in the same campus having 15000 sq mt area
within the Solapur city Municipal corporation limit. LOPSPL is
presently manufacturing Lubricating Oil Pumps & assemblies
required for Diesel engine and compressor for circulating of
lubricating oil. Simple strategic audit of ‘LOPSPL’ is conducted in
this section.

1.2 History of Organisation:-


As LOPSPL is the pioneer unite of Laxmi Group [1], It is very
interesting to go through the history of LOPSPL to study how the
external & internal factors have affected growth strategy of
Laxmi group. And also visionary leader of Laxmi group put his
intuitions in work in establishing the growth pattern of much
regarded industrial group, with use of alternate strategies at
proper time.

First chairman Late Mr. Kalgonda Patil had started small repair
workshop in out skirt of Solapur city. He was true visionary
leader. According to Carinne Mc Laughlin [2] “Visionary leaders
are the builders of new dawn, working with imagination, insight
& boldness. They present a challenges that calls forth the best in
people & bring them together around shared sense of purpose”

It was in mid 60’s, when there was much boost for agricultural
sector because of third 5th year plan of central govt (which was
majorly based on agricultural development). Increasing demand
of diesel engine driven pump sets for agricultural sector had
given the opportunities to start the manufacturing unite, and
“Laxmi Engineering Works” (former name of LOPSPL) was came
in existence. Initially manufacturing of pump sets was started

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with limited resources. But soon it was realized the necessity for
backward integration. The main raw material was Cast Iron
casting for pump set was not readily available in near by places
because of geographical location. Dependence on foundry
supplier located outside the state, become hindrance for
increasing the capacity. For captive consumption Cast Iron
foundry named Laxmi Foundry was started in year 1969.

After early sad demise of Mr Kalgonda Patil (1970) his son Mr.
Jaykumar Patil was the chairman of the group. As a strategic
leader he pursued the vision of his father & expanded the group
further. During the wealth creation process he nurtured
technical & managerial skill of his two young brothers who joined
him after graduation study of engineering in mid seventies.

According to W. Glenn Rowe[3] “Strategic leadership enhances


the wealth creation process in entrepreneurial & established
organisation & leads to above average returns”. This definition
is perfectly suites to the personality of Mr. Jaykumar
Patil.

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Fig 1.1 shows year wise growth of Laxmi group, which has
started from one unite in year 1965 to multidivisional group of
having turnover around 160 carores in year 2008-09.[4] During
this growth process the resources of base unite were used
effectively for development of different product. And once the
product is established then separate facilities were created to
facilitate the growth of individual unite. Fig 1.2 shows how
different alternate strategies were used to cope up the growth
model adopted. This model worked well up to 1990. During late
nineties Indian economic structure had changed drastically.
Because of adoption of partial open economic policies by
Government their was lot of turbulence in industry. Protection
for SME sector has removed. SME need to compete with new
entrant of multi national. Trade union activities had increased.
In year 1991, three months long strike had put the strategist on
back foot. They had to think for the change in the business
model itself for the survival.

R a w M a t e P r ri a o l c e s s i n g A s s e m b l y M a r k e t i n g

-L a xH m y id r a u l i cL s a xP .m L i t d S . a l e s
L a x m i F o u n L d a r xy m i -L a x m is OL t i d l .E C n og
E n g i Wn e o e r r k i- L n s r i pn oe r a t i o n
ag x m i D r a u k e n
K o m p o n e n t s

L R a ax w m Mi G a t r e o r ui a p l
Fig. No. 1.3 Integrated Business Model

P r o c e s s i L n ga x m i L a x m i L a x m i OL x ai lm i D r a u k e n
& E n g i n e e r Hi n u g d r a u l iE c ns g i n e s K L ot d m p o n e n t s
A s s e m b Wl y o r k s P v t . L t d .

Page 10 of 44

C u s t o m e r
Fig. No. 1.4 Business Model After De-Integration

Fig 1.3 & Fig 1.4 shows the two different models adopted by
group. Earlier each unite was interdependent, marketing was
centralised. But after 1990 the decision was taken to become
self sufficient unite. External forces like Govt policies, Interest
rate, trade union activities had compelled. Chairman, to take
decision of making every division as a separate profit centre.
There was lot of internal forces too for this reform like internal
transfer pricing, debt recovery, leadership conflicts etc.

This change in business model pushed LOPSPL to search for


external market for existing product as well as to develop
product for direct sale. Initially resource based strategy was
adopted & to utilise the existing strength machined components
for automobile industry were developed. In year 1990-91
automobile market in India was in top gear & hence the product
development took very fast. But very soon the increased
demand of quality casting was become bottleneck. The foundry
unite from the group company was not in a position to supply
the casting to automobile market because of technical
limitations. The melting unite was of old design and not
acceptable by customer. This lucrative and increasing market of
automobile casting inducted the idea of putting foundry unite
with modern melting furnace. This right strategy was
unfortunately implemented at wrong time. Since from 1993
economic downturn had started, increasing inflation rate, high
interest and labour cost and low market demand put this casting
unite in bad shape. And ultimately in 1997 the LOPSPL had
divest from this unite.

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With exploring the expertise in pump manufacturing and
experience gained in automobile, new product Lube Oil pump
was developed in year 1999. The unite gained acceleration in
developing various models to supply as OE to engine
manufacturer. In 2002 partnership firm (Laxmi Engineering
Works) was converted into private limited company named
Laxmi Oil Pumps & Systems Pvt Ltd.

1.3 Present status of organisation:-

Before entry of LOPSPL in lube oil pump’s market, the


requirement was catered by large scale players those who were
not competitive in the price for the small batch quantity
requirements. And engine manufacturers were looking for out
sourcing the pump manufacturing activity which otherwise they
were doing in house. This opportunity was fully utilised by
LOPSPL and offered to give any small batch qty (in some cases 5
to 10 pumps per month) requirement. Presently LOPSPL is
manufacturing,

1. Lubricating Oil Pumps for Diesel engines and compressors

2. Water pumps for Diesel engine applications

3. Assemblies of Diesel engines in cooling systems

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Fig 1.5 LOPSPL’s Sales Growth

LOPSPL's Customer wise business share

C
L M

M
C BE

I
LG
E
P
K

IL
C
CIL
KOEL
O

WFO
F
W

KPCL
BEML
KMC
ELGI

L
E
O
K

Fig. 1.6 LOPSPL’s Customer wise business share

Page 13 of 44
Growth of LOPSPL’ s turnover is shown in fig 1.5 [4] And
customer with it’s business share are shown in fig 1.6 [4].
Kirloskar Oil Engines Ltd. Pune and Cummins (I) Ltd are major
customers located at Pune & Kolhapur. Solapur is being placed
within vicinity of their production facilities it gives location
advantage to set up vendor manage replenishment system with
better logistics. For many models of pumps, ‘LOPSPL’ is single
source for these customers. In most of the cases the design of
the pumps were given by customers, but the recently this trend
is changing and customers are looking for “complete solution”
for cooling systems which forces the need to develop in house
design centre for LOPSPL. Considering the present plant
capacities 80% capacities are already booked by present
customer and for nearly 15% of capacities, contract are in hand
for which product are in development stage. For further
expansion LOPSPL needs to plan for infrastructure development
like plant and machinery etc.

The present unite located in local municipal corporation limit


which attract 3.2% octroi tax on all raw material coming
form out side limit and 10% for the imported goods. Industry
associations are pressing hard to abolish this extra burden on
the industry. State govt is likely to take the decision in coming
assembly session.

In the recent declaration of union budget Finance Minister Mr.


Pranav Mukharjee made the announcement “Total budgetary
support of Rs 1200 crore is allotted for the development of road
infrastructure across the country.” [5] This will boost the
construction equipment machinery & diesel engine
manufacturing.

Present power supply for industry is by state government owned


company. Larg gap between demand and supply of power, made
government to take the review and present white paper
regarding the power supply situation in the white paper state
[6]. “Despite the efforts of MSEB, there is unmet demand for
new connections as well as shortage of power to existing

Page 14 of 44
consumers mainly during peak hours. MSEB has estimated that
the energy requirement will increase from 59295 MU in 2001-02
to 87262 MU in 2011-12 and peak demand from 9893 MW in
2001-02 to 14104 MW in 2011-12. This would necessitate
further investments in generation sector estimated at Rs. 11,905
crores over the next 10 years. In addition, it is essential to
modernize and expand the transmission and distribution system.
The sector also needs to keep up with technological
developments. The total requirement of funds for investments in
generation, transmission and distribution is estimated to be Rs.
30,475 crores in the next 10 years”.

Government is planning to meet the demand by putting up


generation but this will fully meet in 2012, & till the time
shortage of power will result in increasing demand of private
power generating sets driven by diesel engines.

Indian tariff level has come down substantially to a average of


15%, which will leads to lowering the cost of imports, thus
imported machinery from developed countries becoming very
economical. LOPSPL is thinking to buy imported CNC machines
for further expansions.

LOPSPL has got 11% market share in lube oil pump domestic
market which has increased from 2% in the year 2002. Though
they have entered in global market the presence is negligible in
the export market and left with good potential. Recent economic
recession had put the cap on development of new market. Giant
engine manufacturers are eager to enter in to Indian market.
Some of them have already started manufacturing plants in
India (“MAN DIESEL ENGINES”) and are looking local supplier for
the components and assemblies. Manufacturers from US &
Europe prefer China over India as preferred source for
manufacturing. Fig 1.7 & Fig 1.8 gives the data showing
competitive advantage of both the countries.

Page 15 of 44
Fig. No. 1.7 Outsourcing : Relative Ranking For Countries, 2003

Fig. No. 1.8 Outsourcing : Relative Ranking For Countries – Snapshot Matrix,
2003

LOPSPL had adopted, “Theory Of constraint” [7] as a


management tool to achieve breakthrough performance of
bottom line. It also drives the cycle of continues improvements
in all spheres of working. Implementation of “TOC” has given
competitive advantage. It has paradigm shift from “cost word”

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to “Through Put” word which provides better decision rule for
accepting smaller batch qty order. LOPSPL has setup separate
cell for product development which is geared up to shorten the
development lead period with using Project management tool in
“TOC” All the managers and department heads are nurtured
with training on “5 focusing steps” . And their performance is
measured with scale of global matrix of “T”, “I” & “OE” [8] in line
with the objective.

Apart from the ISO 9000-2008 system certification, unit has got
“Classification” approval which is mandatory for the assemblies
which goes in ship building equipments. Also many six sigma
projects are identified to increase the internal efficiencies &
effectiveness of the process.

Though the trained and experience staff is the strength of the


organisation, increasing salaries & pay package due to external
factors putting lot of pressure on management to retain them.
LOPSPL is trying to give not only the best pay package par with
industry standard but also trying to increase their moral with
involving them in participative management & creating best
place to work.

1.4 Vision statement of LOPSPL:-

“LOPSPL wants to become Global Supplier of Lubricating Oil


Pumps with achieving highest standard in work culture and
Quality and attain reliability at par with major Global players in
this field.” [9]

1.5 Mission statement:-

“Our mission is to satisfy our,


1. customers by achieving their specified norms of
“QCDA”,

2. stack holders by insuring highest ROI &

3. employees with providing them best place to work

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We will achieve this through continuous improvement in all
spheres of our working.” [10]

1.6 Analysis based on Audit point:-

Purpose of Business strategy audit

Business strategy audit is a process of comparing the actual


direction of business & actions required to meet the long term
objectives in changing environments. It is also checking of how
viable the strategy is to cope up with external factors & how
best are the internal process to support the strategies.

As per Andrew Carey [11] “The purpose of a strategy audit is to


arm managers with tools, information and commitment to
evaluate the degree of advantage and focus provided by their
current strategies, An audit produces the data needed to
determine whether a change in strategy is necessary and
exactly what should be made”

As enumerated in Table No. 1.1 Overview matrix, the SWOT


analysis is done based on the information collected.

Table No. 1.1 gives the best illustration of points considered in


analysis [12].

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POSITIVE/ HELPFUL NEGATIVE/
HARMFUL
to achieving the to achieving the
goal goal

Internal Source Strengths Weaknesses


Things that are good
now, maintain them, Things that are bad
build on them and now, remedy,
use as leverage change or stop them.
facts/ factors of the
organization

External Source Opportunities Threats


Things that are good Things that are bad
for the future, for the future, put in
prioritize them, plans to manage
capture them, build them or counter
on them and optimize them
facts/ factors of the
environment in
which the
organization
operates

Table 1.1 Overview Matrix

With evaluation of external factors like economic, social, legal


etc. few important key factor are summarised in EFE Matrix
illustrated in Table No. 1.2 which is developed with following five
steps.

1) List of key external factor


2) Assigning each factor with weight ranging from 0.0 (not
important) to 1.0 (very important)
3) Assigning rating between 1 to 4 to each factor with 1=Poor
& 4=Response is superior.
4) Multiply each factor’s weight with its rating to determine
weighted score.

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5) Sum the weighted score to result total EFE score.

External & Internal of LOPSPL with considering the various


factors is summarised in Table No. 1.2

External Factor Evaluation Matrix for LOPSPL


Opportunities
Sr Key Factors Weig Ratin Weighte
N ht g d score
o
1 Major customers are increasing their product range 0.06 3 0.18
& market penetration
2 European manufacturers are looking for low cost 0.08 4 0.32
manufacturing base
3 Abolition of Octroi tax will reduce the cost 0.02 2 0.04
4 Manufacturer other than automobile are looking for 0.04 1 0.04
supplier for low volumes
5 New international Air port at Solapur is announced 0.02 1 0.02
by Govt
6 New reforms were announced in labour laws, boost 0.02 1 0.02
the contract workers
7 Increased budget allocation for infrastructure will 0.06 4 0.24
boost the construction machinery
8 Estimated power generation shortage leads to 0.06 2 0.12
increase demand of gen sets in local market
9 Reduction in average tariff rate will reduce the 0.02 2 0.04
import cost of raw material
10 Indian currency becoming strong against $ makes 0.02 2 0.04
import viable for machinery
11 low cost technology transfers are available 0.08 4 0.32
Threats
Sr Key Factors Weig Ratin Weighte
N ht g d score
o
1 Withdrawal of stimulation package by Central 0.02 2 0.04
government
2 Abolition of octroi will take long time to actual 0.04 1 0.04
implementation
3 Difficulty in getting quality casting supplier for low 0.1 4 0.4
qty and desired price
4 Difficulty in getting quality gear supplier for low qty 0.08 4 0.32
and desired price
5 China has low cost alternative for oil pumps 0.06 2 0.12
6 Increase in overall package of middle managers due 0.04 3 0.12
to IT sector
7 Overall global recession affected Indian economy 0.04 4 0.16
8 Increased in minimum wages because of inflation 0.06 2 0.12
9 Power shortage will increase the cost op operation 0.04 2 0.08
10 Strong Indian currency reduces the cash realization 0.02 1 0.02
11 High rate of octroi tax on imported goods 0.02 2 0.04

Page 20 of 44
Total 1.00 2.84
Table No 1.2 External Factor Evaluation Matrix for LOPSPL

With evaluation of internal factors like strength & weakness of


functional area of business. Key factors are listed in IFE Matrix
given in Table No. 1.3. Complete matrix is developed with
following steps.

1) List of key external factor


2) Assigning each factor with weight ranging from 0.0 (not
important) to 1.0 (very important)
3) Assigning 1 for major weakness, 2 for minor weakness and
3 for minor strength while 4 for major strength.
4) Multiply each factor’s weight with its rating to determine
weighted score.
5) Sum the weighted score to result total EFE score.

Internal Factor Evaluation Matrix for LOPSPL


Strengths
Sr Key Factors Weig Ratin Weighte
N ht g d score
o
Organisation has got vast experience in
1 0.4
manufacturing 0.1 4
2 Expertise in quick product development 0.08 4 0.32
Have "TOC" based strong culture adaptable to
3 0.32
any change 0.08 4
Skilled work force available at reasonable good
4 0.12
price 0.04 3
5 Facilities are "Marin classification" approved 0.03 3 0.09
Modern management techniques (lean
6 manufacturing , Six sigma etc) are well 0.16
practiced 0.04 4
Good vendor base is available to support
7 0.12
subcontracting activity 0.04 3
8 Being OE supplier marketing cost is less 0.06 4 0.24
Group company supports in case of
9 0.06
emergencies 0.02 3
10 Established ERP supports strong MIS 0.04 3 0.12
Weakness
Sr Key Factors Weig Ratin Weighte
N ht g d score
o
1 Dose not have internal design department 0.1 1 0.1
Facilities are suitable for batch production & 0.05 1 0.05
2
have limited capability to cope mass production

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3 Old infrastructure gives bad first impression 0.07 1 0.07
Conservative management view of family 0.06 1 0.06
4
owned business
5 Internal fund generation is limited 0.04 2 0.08
6 Material to sale ratio is increasing 0.04 2 0.08
7 Product realisation cycle is very high 0.02 2 0.04
8 Less inventory turns increases inventory cost 0.03 2 0.06
Old workers not having modern skills are not 0.02 2 0.04
9
easily replaceable
Logistics is always problem due to low batch 0.04 2 0.08
10
qty.
Total 1.00 2.61
Table No. 1.3 Internal Factor Evaluation Matrix for LOPSPL

Fig. No. 1.9 The Internal – External (IE) Matrix

1.7 Conclusion & Suggestion:-

The completed IE matrix worked out from the weighted score is


given in the Fig No. 1.9 As indicated by the circle “Hold &
Maintain” is the appropriate strategy for the LOPSPL. However
once the situation improves with economic reform in domestic &
international market it would be better to take the review and

Page 22 of 44
alternate strategy like back word integration for supply of
gears /casting can be worked out.

2.1 Introduction (Comprehensive Strategy Formulation


Framework):-

While planning strategy for any organisation there are infinite


number of alternatives are available which can be pursued and
implemented in several ways for the benefit of organisation. One
need to give the attention to select few manageable of it with
proper analysis. Consideration has to give for advantages and
I n t e r n a l F a c t o r E v a l u a t i o
disadvantages, cost and benefits. F R M David a t r i x ( [13]
I F E ) provides

comprehensive S t a strategic
g e 1 : formulation framework. The whole
T h e I n p u t E x t e r n a l F a c t o r E v a l u a t i o
process can be S t adivided
g e in to three stagesM as a t r shown
i x ( E F E in) Fig 2.1.

Stage first which called as planning stage consist of EFE Matrix,


C o m p e t i t i v e P r o f i l e M a t r
IFE Matrix & Competitive Profile Matrix (CPM).
( C P M )
Stage second
which is matching stage. Different tools are used to aligning best
feasible alternative to key internal & external factors. These
S W O T M a t r i x
tools are discussed in length with its merits & demerits in this
section. The third stage consists of decision stage. In this
S P A C E M a t r i x
section whileS answering
t a g e 2 :
the question No. 2 we are discussing the
second stage
T h of
e framework,
M a t c h i n g which is matching stage.
S t a g e B C G M a t r i x

I E M a t r i x

G r a n d S t r a t e g y M a t r i x

S t a g e 3 : Q u a n t i t a t i v e S t r a t e g i c
T h e D e c i s i o n P l a n n i n g( Q M S aP t Mr i x)
S t a g e
Page 23 of 44
Fig. No. 2.1 Comprehensive strategy formulation
frame work
2.2 Theory of Different analytical tools:-
According to Robert Grant [14] “Strategy is sometimes defined
as match an organisation makes between its internal resources
and skill, and opportunities and risks created by its external
factors”

In second stage of strategy formulation frame work which


consist of total five tools. Any combination with any suitable
sequence can be used depending up on the situation.
Information generated during the first stage with key internal
and external factors are used in this stage. Effective matching of
key success factors in order to generate the most feasible
alternative strategy is the crux of this stage. Many times these
relationships are more complex and hence five analytical tools
helps in this task.

2.2.1 SWOT Matrix:-


As its name implies “Strength –Weakness-Opportunities-
Threats” provides a mechanism for establishing the linkage
between company’s strength and weakness and opportunities
and threats of marketplace to formulate the alternative
strategies.

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Strengths are those resources or capabilities of organisation
which can be utilised to built competitive advantage. Scare
resources, technical knowhow, experienced work force, strong
brand name are few examples.

Weakness always referred to absence of certain strengths. Low


technological base, high cost structure, low bargain power are
referred as weakness.

Change in the external environment may leads to new


opportunities for growth or additional profits. Favourable
changes in legislative structure, monopoly due to lack of
competition, unfilled customer demand may result in to good
opportunities.

Unfavourable environmental changes always turn in to future


threats to organisation. Rapid technological growth replaces
current product very fast. Changing political situation may
create hindrance.

If one go with only intuition, may select more lucrative


opportunity with overlooking the weakness of organisation.
SWOT matrix gives the opportunity for developing the best fit
between the companies best strengths available opportunities.
Though there are several ways to represent this matrix
graphically the most common form used is shown in Fig No. 2.2

Strengths Weakness

Opportunit
S-O strategies W-O Strategies
ies

Threats S-T strategies W-T Strategies

Fig. No. 2.2 SWOT Analysis Matrix

The out come of this matrix may result in one or more strategy
of four types. S-O strategy are those which can be built with

Page 25 of 44
using the organisations best strengths for utilizing the available
opportunities. S-T strategy uses organisation’s strength in
reducing the effect of external threats. W-O strategy focus on
improving the internal weakness of organisation in order to meet
the external opportunities. Some times opportunities are
knocking the door but internal weaknesses prevent the
organisation from grabbing it. W-T strategies are defensive
actions to avoid the external threats and reducing internal
weakness.

2.2.2 BCG Matrix:-


Boston Consulting Group (BCG) Matrix was created initially by
Bruce Henderson for the Boston Consulting Group in 1964. It was
used to analyse corporations with its different business unites or
different product line. It is useful technique for analysing the
strategy of organisation having multi division or multiproduct.

The very first step is to identify the different ‘Strategic Business


Unites’ (SBU’s) SBU can be separate company, division or even
product line, which have separate mission and objectives. BCG
matrix considers two variables namely ‘Market growth rate’ and
‘Relative market share’. All the SBU’s are then classified on
these two variables. The horizontal axis (X) represents the
relative market share. It is relatively compared with its largest
competitor. On vertical axis (Y) market growth rate in
percentage is shown. The BCG matrix is divided in to four
quadrants. Each quadrant represents different state of business.
Divisions or product are marked with the circle. The size of the
circle is proportional to represent the contribution revenue
generated by SBU. And pie slice indicate the proportion
corporate profit. Fig No. 2.3 shows graphical representation of
BCG Matrix.

Page 26 of 44
Fig No. 2.3 The BCG Matrix

According to position in which quadrant division or product fall is


called with its name. For First quadrant ‘Question mark’, for
second ‘Stars’ , third ‘Cash Cows’ and for fourth ‘Dogs.

Question mark- These are products or businesses, that compete


in high growth markets but where the market share is relatively
low. Market development, product development, are the
alternative strategies suitable for these organisations.
Stars- Successful question marks become stars. i.e. market
leaders in high growth industries. But still further investments
are needed at this stage to maintain the growth. Integrative
strategies and or market penetration are better options.
Cash Cow- Slow growth rate and largest market share make the
organisation to fall in to this category. Cash generation and good
profits may support the cash cow to other SBU in different
quadrants.
Dogs- are the SBU’s with weak market share and low growth
markets. Retrenchments, liquidation, divestments are alternate
policies as a choice
Over long time, organisation moves from question mark to stars
to cash cow and then dog (success and disaster cycle anti clock
wise). In turn around strategy some times dogs also converted in
to cash cows and then stars.

2.2.3 Internal External (IE) Matrix:-


The IE matrix positions the company’s businesses in a nine cell
matrix. It is an improvement on the BCG. Here also two
parameters are used, Internal strength (as measured by IFE) and
Industry attractiveness (measured by EFE). The horizontal (X)
axis represent the internal strength subdivided in three portions
weak ( 1.00 to 1.90), average (2.00 to 2.99) and strong (3.00 to
4.00). Similarly vertical (Y) axis representing industry

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attractiveness also divided in low (1.00 to 1.90), medium (2.00
to 2.99), high (3.00 to 4.00). With those divisions total nine cells
are formed. As illustrated in Fig No. 2.4. All the divisions are
marked with circle with same understanding as in BCG matrix.

Cell formed by 1, 2 & 4 are called as ‘Build and Grow’ region. All
Intensive and integrative strategies are guide line for this cells.
Cell no. 3,5 & 7 forms the region called ‘Hold & Maintain’, Market
penetration and product development may be the alternatives
.And finally cell 6, 8 & 9 are called ‘Harvest and Divest’ which
indicate weak position in hostile environment.

T H E I F E T O T A L W E I G H T E D S C O R E

G r o w a n d b u i l d S t r o n g A v e r a g e W e a k
3 . 0 t o 4 . 0 2 . 0 t o 2 . 9 9 1 . 0 t o 1 . 9 9

4 . 0 3 . 0 2 . 0 1 . 0

H i g h
3 . 0 t o 4 . 0 I I I I I I

T H E 3 . 0
E F E
T O T
A L M e d i u m
W E I G H 2 . T0 Et o D 2 . 9 9 I V V V I
S C O R E S

2 . 0

L o w
1 . 0 t o 1 . 9 9 V I I V I I I I X

1 . 0

H o l d a n d m a i n t a i n H a r v e s t o r d i v e s

T h e I n t e r n a l- E x t e r n a l ( I E ) M a t r ix f o r H a r r a h ’s ( 2 0 0

Fig. No. 2.4 The Internal-External (IE) Matrix for Harrah’s (2004) (Based on
Region)

2.2.4 The Strategic Position and Action Evaluation


(SPACE) Matrix:-
The Strategic Position and Action Matrix was developed by
Rowe, Mason and Dickel [15]. In this technique two axes are
used out of which vertical axis (Y) represent financial strength
(FS) and environment stability (ES). While as horizontal (X) axis
represent competitive advantage(CA) and industry strength (IS).
The internal dimensions FS and CA are the major factors while
deciding organisation’s strategy, while as the external factors ES
and IS are influencing strategic position of entire industry. One

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can choose from various factors which make up the axis of
SPACE Matrix, from Table No. 2.1

Table No. 2.1 Example Factors That Make Up the SPACE Matrix

The steps in the construction of the matrix are,


1. Select a set of variables that reflect the internal and
external dimensions from Table no.
2.Assign a rating to each variable FS and IS will be between
+1 and +6 where +1 is the worst situation and +6 the
best. ES and CA will be between –1 and –6 where –1 is the
best situation and –6 the worst.
3.Compute the average score for each dimension (ie FS, CA,
IS, ES)
4. Plot the average scores for each dimension on the relevant
axes.
5. Add the scores on the x axis and plot the result and add the
scores on the y axis and plot the result.
6.Finally, draw a directional vector from the origin through
the intersection point.
Depending up on the penetration of vector in particular quadrant
gives the choice for selection of alternate strategy shown in Fig.
No. 2.5

Page 29 of 44
Fig. No. 2.5

2.2.5 Grand Strategy Matrix:-


Competitive Position and Market growth are two parameters
considered while constructing this matrix. Competitive position
can be measured by IFE. The matrix shows Fig No. 2.6 the
appropriate for the organisation in the order of attractiveness.

1st Quadrant shows strong strategic position of the organisation


with high market growth. Obliviously such organisation needs to
concentrate on product / market development strategy.
Integration, concentric diversification are also can be pursued.
2nd quadrant shows that opportunities are present for the growth
but resources are ineffective. Horizontal integration is best
alternative, but if organisation can not pursue to exploit the
growing market then divestment or liquidation, retrenchment
are the only solutions. Organisation placing in 3rd quadrant is
weak in competitive position and compete in low growth
industries. In 4th quadrant the organisation is having the
competitive strength but operate in low growth industry Joint
ventures, related diversification are the better alternative
strategies.

Page 30 of 44
Fig. No. 2.6

2.3 Analysis:-
The strength of SWOT lies in its simplicity and experienced
application. It is very quick, easy and intuitive. It is not the
analysis but summary of the analysis done in previous step. This
gives the understanding of organisation and situation. Once it is
done properly it gives border picture of most important factor
that affects the survival, growth and existence of an
organization. Simultaneously it is very subjective and results
may influenced by the ability and experience of the participant.
External threat from one’s perception may be is opportunity
from other’s view, hence the outcome of all individuals may
different and leaders must play a decisive role.

The greatest advantage of BCG Matrix is that it focuses on the


cash flow, investments characteristic and need of organisations
various divisions. It helps to identify the organisations cash
recourses which can be best utilised maximise future growth and
profitability. It is relatively simple for understanding, quickly
screen the opportunities open to you and how you can make
most of them.

However like other analytical techniques has got some


limitations. It is always termed as oversimplified by putting all
sorts of organisations in either of four quadrants. To express the
market in relative term is some time found difficult. The
assumption ‘higher market share always mean higher profit’ is
not true. Market share is one of the competitive aspects. Overall
growth rate of organisation over a period is not reflected in this

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Matrix making it snap shot at a given time. Synergy between
different organisations is neglected during this analysis.

In BCG matrix and IE matrix the procedure is same as marking


the organisation in graphical sketch; hence both are called
“Portfolio Matrix”. But in both the axis on which the data is
plotted are different. IE matrix requires more data than BCG. It
uses the weighted scores of IFE & EFE matrix which gives robust
analytical base than a relative grading in BCG Matrix. As per F R
David [16] “A common practice is to develop a BCG Matrix and
an IE Matrix for the present, and then develop projected
matrices to reflect expectations of the future. This Before and
after analysis forecast the expected effect of strategic decision
on an organisation’s portfolio of division”

Like SWOT analysis the SPACE Matrix is also a matching tool


widely used. As per Laetitia Radder, and Lynette Louw [17]
“ Competition is at the core of the success or failure of any
organization, and determines the appropriateness of its
activities. In developing a strategy, managers must examine the
marketing opportunities in each business and product-market,
as well as the organization's distinctive competencies or
strengths relative to its competitors. The SPACE matrix is a
valuable method for analysing the competitive position of an
organization.”
The grand strategy matrix can be used by both, for the
organisation as well as its SBU’s. Grand strategy is a
comprehensive approach that guides a company’s key action
and provide long range objective.

2.4 Conclusion:-
During the second stage of strategy formulation framework the
focus is on generating feasible alternate strategy by aligning
key external and internal factors. Five analytical tools like SWOT
Matrix, BCG Matrix, IE Matrix, SPACE Matrix and Grand strategy
Matrix are used either in combination or in isolation depending
up on the situation. Though there are some similarities in these
tools each tool has unique advantage for particular organisation
in given situation. Various alternative strategies selected
through these stage can be further evaluated in stage three i.e.
‘The decision stage’.
3.1 Introduction of Integrative Strategies:-

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While studying the various integrative strategies it is inevitable
to study the total structure of strategic management model.
According to Richard D. Irwin [18] there are five task of strategic
management as shown in Fig. No. 3.1.

First three tasks consist of the strategy formulation steps. Forth


is implementation step and fifth consist of evaluation phase.
Once the “Vision & Mission” statements are formed it will leads
to formulation of long term objective. In the third task which is
matching stage various alternatives are available. Various types
of strategies and their examples are illustrated in Table No. 2.1,
table content for types strategies and it’s definitions are taken
form “Strategic Management” [19] Examples given are from
the “Laxmi” group and it’s unite “LOPSPL” illustrated details
while answering Q. No. 1.

Though different alternatives are available it is not necessary to


make only one choice at a time. Organisation may pursue
multiple strategies. But the care has to be taken for prioritising it
and allocating the available resources accordingly to avoid the
danger of evacuations. Different integrative strategies with its
merits & demerits, are discussed in this section

Fig. 3.1 The Five Tasks of Strategic Management

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Strategy Definition Example
Forward Owning / gaining "Laxmi" group had set up
Integration control of further the marketing
process in the supply organisation to sale of
chain product direct in to
market with putting
different branch offices
and dealer network
Backward Owning / gaining Manufacturing of casting
Integration control of upward was started which is raw
process in the supply material for pump unit
chain, like raw (LOPSPL).
material supplier /
transporter
Horizontal Establishing the Small company supplying
Integration control over shell core has taken over
competitor's unite by "Laxmi" group
Market Increasing market "LOPSPL" offered quantity
penetration share for existing discount for increasing
product with extra the market share
efforts
Market Developing new "LOPSPL " had entered in
developme territory for exiting to European market
nt product
Product Expansion of product New N14 series pumps
developme range were developed for
nt Cummins (I) Ltd.
Related Developing/ adding of Manufacturing of Priming
Diversificat new but related pump used in compressor
ion product. industry.
Unrelated Addition of new but "Laxmi" group entered in
diversificati unrelated product / to selling of two wheeler.
on services
Retrenchm Regrouping through Water pump unite and
ent cost & asset reduction. Electric motor units and
merged in one single
unite in order to reduce
the cost.
Divestiture Selling a Division or "Laxmi" group sale out
part of unite the casting division in

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1997

Liquidation Selling all of Old machine shop unite of


Company's assets. "Laxmi Group liquidated
in 1992
Table No. 3.1 Alternate strategies & examples.

3.2 Vertical integration:-

Gaining the control over the supplier, distributor collectively


referred as vertical integration. Vertical integration is a
corporate strategy used by organisation to gain the competitive
advantage of operating multiple businesses at a time. For a
product or services to come in existence a series of events
should happen. This chain of process referred as value chain,
was first introduced by Micheal Porter in 1975. Owning of
process in value chain upstream & establishing control over
suppliers is called backward integration and owning downstream
buyers are referred as forward integration.

Number of Indian business group after seventies had adopted


vertical integration strategy for faster growth. Reliance is one of
the best examples. “Backward vertical integration has been the
cornerstone of the evolution and growth of Reliance. Starting
with textiles in the late seventies, Reliance pursued a strategy of
backward vertical integration - in polyester, fibre intermediates,
plastics, petrochemicals, petroleum refining and oil and gas
exploration and production - to be fully integrated along the
materials and energy value chain.” [20]

If vertical integration of organisation is rare then it gives


competitive advantage that some one can not copy easily.
Bhilwara ( well know place in Rajstan state ) have unique climate
and ancillary set up which have boosted the adoption of vertical
integrative strategy for growth of textile industry.” A survey

Page 35 of 44
concludes that textile industries will generate 12.02 million
direct and 5.36 million indirect jobs by 2012. Various levels of
vertical integration are present in a textile industry and thus
require a variety of manufacturing processes and management
requirements. Bhilwara possess cutting edge industrial solutions
with special emphasis on textile ancillary” [21]

There are two aspects one has to consider while to take


decision, whether to adopt the vertical integration or not. One is
cost and second one is control. If one firm acquire other in
vertical integration then, transaction cost can be controlled with
transferring the goods from one division to another. Transport &
logistics cost, negotiation cost, cost of control etc can be
eliminated. “The process of poultry integration helps reduce
poultry production costs by increasing technical efficiency and
eliminating the margins on feed. The impact of integration
includes significantly faster expansion of production and
consumption of poultry foods along with smaller increase in real
costs and prices.” [22]

If firm is taking the semifinished components form the supplier


then they need to establish the long term contract with, so as to
avoid the interruption in supply or quality and technological
issues may destroy the firms reputation. In such a case vertical
integration if the best alternative with which better control can
be established over material supply and if in such a case it gives
advantage to use base resources for new product development
and innovative solutions. “Apple’s recent hiring spree of chip
designers reveals the company may be about to exert even
more control over the components that go into its products. The
company may go so far as manufacturing computers processors
in-house, according to The Wall Street Journal, which cites only
anonymous sources to bolster its claim that the internally
designed chips will appear in products no sooner than 2010.”
[23]
Apart from the reduction in cost & better control over the
logistics there are few more advantages like, expansion of core
competencies, capture of upstream and down stream profits,
facilitate the investments in highly sophisticated assets, which
other wise earlier owner may reluctant to do so. This also

Page 36 of 44
increases the barriers to potentially new entrant. With vertical
integration organisations can leverage the economics of scale.
Prime view (Kindle Manufacturer) buys E INK is an example.
“Taiwan-based Prime View International has signed a definitive
agreement to acquire E Ink Corporation for approximately US
$215 million, the two companies said in a joint statement on
Monday. Prime View and E Ink will become a dominant force in
the growing electronic reader segment. Prime View
manufacturers Amazon's Kindle and a number of other products,
and E Ink has developed the digital-ink technology that makes
electronic readers easier on the eyes compared to traditional
computer screens. They support about 20 manufacturers
worldwide, according to a statement. Prime View has been
building a dominant position in the electronic reader segment
since it acquired the e-Paper business of Philips Electronics in
2005” [24]

Page 37 of 44
3.2.1 Disadvantages of vertical integration:-

Though the few points of vertical integration are attractive one


should not neglect the short comes of it other wise advantages
may be negate with undesired effects. The biggest point is it
boost the capital requirements. One need to build the upstream
capacity enough to feed it’s down stream in variable market
demand conditions. If supply production is more then the
demand then either reduces the production or sale it competitor
are the only options left. Balancing of capacities becomes the
important issues. It needs to develop core competencies in the
new filed and one can not become good in every field.
Consultant and author Don Tapscott had given warning to India
Inc. “Corporations which have followed a vertically integrated
business model for growth need to take caution. Mr Tapscott is
particularly harsh on India. Indian companies, he said, are highly
vertically integrated. They need to change. “Many corporations
in India have not moved to the web business model. If they
remain that way, they will fail. The best way to growth is
through partnership. Many big companies in India want to
expand into all areas of business. But synergies do not help if
the ’best’ in all those areas is not achieved,” he said.
Companies, need to focus on what they do best while allowing
their partners to do what they are best at. Acquisitions that help
build vertical integration can destroy shareholder value.” [25]

It also looses the competitive advantage of small batch qty of


various varieties and only focus on large scale production to
justify the cost.

Long term explicit contracts, Joint ventures, Franchise


arrangements may prove some times better options with loosing
partial gain.

3.3 Horizontal Integration:-

This strategy is mostly used at corporate level . Sometimes it is


also referred as horizontal merger. When firm merge with

Page 38 of 44
another one having the same type of product / services is called
horizontal merger / integration. The main objective behind this is
the economy of scale. This can be achieved by expanding
internally or externally with avoiding duplication of production
process, assets and service by acquiring or mergers.

According to J.Fred Weston and Samual C. Weaver [26] “set of


factors that gave rise to these activities, relates to efficiency of
operations. Economies of scale that reflects in cost reduction by
avoiding duplicating works and operating efficiency, which is the
result of combining complementary strength, are the other
reasons. Different growth opportunity among different products,
birth of new industries, and concept of value creation through
specialization, under capacity utilization are the other”

In order to reduce the international trading cost, control is


established with the unites in different geographical area. In
recent times there have been a lot of announcements by Indian
firms, including corporate giant Reliance Industries, software
firm Wipro, IT major Infosys Technologies and Jindal Steel &
Power, which are scouting for acquisitions abroad.

Sometimes benefit comes from synergy of same brand name in


promoting different product, LG, Samsung, Sony are the best
examples of this. Synergy coming through common resources
reduces the marketing cost. It also increases the bargaining
power to be exercised in upstream & down stream of value
chain.

3.3.1 Disadvantages of Horizontal integration:-

If organization gains monopolistic characteristic in particular


area then it may leads to some legal issues with controlling
authority in that region. It is very capital intensive based
strategy hence needs strong financial structure. Post merger
issues like diversity in culture of organisation etc if not handled
effectively then every possibilities of merger left on paper only.
This can be seen from the efforts the to management of

Page 39 of 44
ArcelorMittal have taken in post merger integration activity. The
objectives set are

“ArcelorMittal top management set three driving objectives


before undertaking the post merger integration effort. These
included the following: (1) achieve rapid integration; (2) manage
effectively daily operations; and (3) accelerate revenue and
profit growth. The third objective was viewed as the primary
motivation for the merger. The goal was to combine what were
viewed as entities having highly complementary assets and
skills. This goal was quite different from the way Mittal had
grown historically, which was a result of acquisitions of
turnaround targets focused on cost and productivity
improvements.” Donald M. DePamphilis [27]

Sometimes there are issues in gaining the anticipated results


after integration because of strategy management issues. The
results will not materialize spontaneously in the absence of
strong dedicated team in place to tackle the issues. Mahesh
Kumar Tambil says in his research paper “This study proves that
Merges have failed to contribute positively in the performance of
the company, especially for the sample under consideration. It
neither provides Economies of scale nor synergy effect. When I
calculate overall impact (i.e. ROCE), mergers were failed to
provide any positive contribution here also. In fact, these results
are not surprising. They are in line with what I was expecting on
the basis of literature survey.” [28]

Horizontal integration may occur due to inevitable force of


economic downtrends. Mergers are forced on weakened
organisations by giant organization. It was at the World
Economic Forum in Davos that Bharti's Sunil Mittal spoke of the
near future of India's telecom sector. "Consolidation is a natural
phenomenon. The bloodbath has started. Market caps are down
to half. Companies are making losses. Their will be only few
players – six may be seven-certainly not twelve. Consolidation is
inevitable.” [29]

Page 40 of 44
3.4 Conclusion:-

Though there are merits and demerits of this strategy one can
not overlook this great tool while doing the strategic
management. For small organisations economy decide the fate
but this strategy gives light in the dark. For the large
organization to manage growth exponentially this strategy gives
cutting edge solutions.

Page 41 of 44
Reference List
[1] “LAXMI” a group of companies, privately owned, located at
Solapur & Kolhapur manufacturing various products under brand
name “LAXMI”

[2] Corinne Mc Laughlin, Visionary Leadership (2001)

[3] W. Glenn Row, Creating Wealth In Organisation – The Role Of


Strategic Leadership (2001)

[4] Business growth, Turnover details, Customer share are taken


from the Current business plan of LOPSPL document no
QR/MK/006 dt 30/05/2009 & Company literature.

[5] “Economics Times” dt 26th Feb 2010. PTI

[6] “ Government Of Maharashtra” ‘ Maharashtra Power Sector


Reform – White Paper’ by Industries, Energy Labour Department
Dt 28th August 2002.

[7] Theory of Constraints (TOC) is an overall management


philosophy introduced by Dr. Eliyahu M. Goldratt in his 1984
book titled The Goal, that is geared to help organizations
continually achieve their goal

[8] According to Dr. Eliyahu M Goldratt there are three key


performance measurements to evaluate: throughput, inventory
and operating expense. TOC emphasizes the use of these three
global operational measures rather than local measures (e.g.,
efficiency and utilization).

[9] & [10] ‘Vision Statement ‘ and ‘Mission Statement’ with kind
courtesy taken from LOPSPL’s quality Manual

[11] Andrew Carey is a Director at Triarchy Press ‘How to audit


your business strategy’ Audit webpage:
http://www.cambridgestrategy.com/content/business_strategy_a
udit.php

[12] Overview matrix (SWOT Analysis - History and methods


http://rapidbi.com/created/SWOTanalysis.html#SWOTmodel )

Page 42 of 44
[13] F R David “Strategic Management” Concepts ( Eleventh
Edition ) Chapter 6 – page 218

[14] Grant, Robert M. "The Resource-Based Theory of


Competitive Advantage: Implications for Strategy Formulation."

[15] Rowe, A., Mason, R., Dickel, K., and Mann, R., (1994),
Strategic Management: A Methodological Approach, Reading,
MA, Addison Wesley.

[16] R David “Strategic Management” Concepts ( Eleventh


Edition ) Chapter 6 – page 233

[17] Radder Laetitia. and Louw, Lynette., (1998), “The SPACE


Matrix: A Tool for Calibrating Competition”, Long Range
Planning, 31, 4, 549-559.

[18] Richard D. Irwin


http://www.csuchico.edu/mgmt/strategy/module1/slide 5

[19] R David “Strategic Management” Concepts ( Eleventh


Edition ) Chapter 5 page 173.

[20] Reliance Industries Ltd. Group web site


http://www.ril.com/html/aboutus/aboutus.html

[21] Bhilwara - budding hub for Textile Industries


http://www.fibre2fashion.com/industry-article/8/711/bhilwara-
budding-hub-for-textile-industries1.asp

[22] Prospects for India’s poultry sector Monday, March


09, 2009: Food processing 360

[23] Web article


http://www.wired.com/gadgetlab/2009/04/apple-quietly-recruits-
chip-designers-for-in-house-cpus/

[24] Prime View (Kindle Manufacturer) buys E INK


http://www.itworld.com/business/68697/kindle-manufacturer-
buy-e-ink

Page 43 of 44
[25] Don Tapscott “ Vertical Integration Spells Danger For Indian
Companies” The Financial Express. Posted Monday , Feb 17,
2003.

[26] (J.Fred Weston and Samual C. Weaver, Page 3). J. Fred


Weston & Samuel C. Weaver, Tata McGraw Hill Publishing
Company Limited, New Delhi, 2002, Page 3

[27] Donald M. De Pamphilis “Mergers, Acquisitions, and Other


Restructuring Activities”, 5th edition, 2009,

[28] Mahesh Kumar Tambil “IMPACT OF MERGERS AND


AMALGAMATION ON THE
PERFORMANCE OF INDIAN COMPANIES”

[29] Sunil Mittal “Economic recovery: Spotlight back on mergers


and acquisitions” 19 Feb 2010, 0503 hrs IST, Priyanka
Sangani, ET Bureau

Page 44 of 44

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