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Agenda 1. 2. 3. 4. 5.
Quotable Business Quotes Identifying Customer needs Importance of Strategic Mgmt. Changing Business Scenarios SM Process : 9 Critical Steps
Kotlar Quotes
It is not imp what I can produce or What I can sell ? It is important What customer wants !
Kotlar Quotes
The most important thing is - to forecast where the customers are moving - and to be in front of them.
Kotlar Quotes
Low performing company says we have good designers High performing company says we have good project managers.
Kotlar Quotes
The business scenario is changing, has already changed a lot. Only I have not noticed - What is this change ?
The successful sales person cares - first for the customer, - second for the product.
AMBANISPEAK:
THE BEST OF DHIRUBHAI
My success is my worst enemy In conditions where too many try and too few succeed, the success of someone like me is bound to cause envy.
Entitlements and licenses were available for everyone to take advantage of. If they were not quick enough off the mark, is it my fault?.
AMBANISPEAK:
THE BEST OF DHIRUBHAI
If there is profit to be made, I am not going to wait for a written invitation. I had the courage to defy the system, even face persecution. You have to sell your ideas to the government. Selling the idea is the most important thing, and for that Id meet anybody in the govt. I am willing to salaam anyone.
No customer told Sony . . That I want Walkman No Customer told .. .. Apple . that I want I-Pod .Bank that I want ATM . Chauhan, that I want Bottled water
Its the businessmans vision to seek business opportunity to create new products & services
2. Software War
Case 1 :
Kauravas
2.41 Mn. Soldiers Commanders Bhishma Dronacharya Karna Finally, who won the war?
Mahabharat War
Pandavas
1.53 Mn Soldiers
Non-Playing CaptainKrishna
And how ?
Case 2 :
Software war
Business Transformation
1940s
2 Economies
1980s
www economy
Changes of 1990s
1990s saw winds of change across the world
l l l l
Breakdown of erstwhile USSR, emergence of uni-polar world, WTO (1995)led to decline of trade & non-trade barriers. 1990s also saw the IT & Telecom revolution
As a part of WTO compliance, nations are enacting and strengthening patent regimes. This enables MNCs to execute technology transfer / licensing agreements, with ease by maintaining control over their technological assets and without risking loss of their technological superiority. IT, Internet, mobile phones, Cable TV etc. have further increased the pace of globalization.
High information flow available across the world leading to - more awareness and generating demand for new or improved technology and new or improved products, services or processes.
PLC becoming shorter due to rapid technological change. Thus, urgency for companies to tap maximum benefits from the existing technology and its related products by simultaneous offering in many markets/countries.
As a result Technology is getting globalized at a fast rate. This is clearly noticeable in the following developments : Share of hi-tech products in the international trade is rising and low-tech products is falling
Technology transfer agreements are on an increase Manual operations are being automated, mechanized and computerized Infusion of technology has transformed many industries Standards of living are improving across the world.
Today's World
Fast moving marketplace Highly competitive (Size and no. of competing firms) More Uncertainty ( both, inside & outside) International trade (No Boundary) Government ( as a Buyer, Seller, Regulator, Competitor) Internet ( from Marketplace to Cyberspace)
Strategic Planning
l
Aim of strategy
To shape companys business , products & services so that they achieve targeted profit & growth.
War & Strategy are inseparable Business is also a war - Warriors ? Battlefield Weapons ? ?
Kenichi Ohamae
Strategy Function
Most large company consists 3 - 4 Org. Levels Corporate Divisional / Business Unit Product Level / Functional Corp. H/Q undertake 4 planning activities Defining the corporate Missions Establishing SBUs Planning new businesses, downsizing or terminating older businesses Assigning resources to each SBU
Strategic Management Setting Objective Framing Polices & providing Resources Implementation
Corp. Level Strategy Global Strategy Business Level Strategy Functional Strategy
Strategy
feedback
Weaknesses . along with Strengths Overcoming threats and Not loosing the Opportunities
Manager
Strategy means their future oriented plans for interaction
Company
Strategy means a Game plan.
Corporate world
Strategy reflects a company's awareness of - how, when &
where it should complete? And against whom & for what purpose?
Level
Designation
Decision Characteristic
More value oriented long range plans, Guiding principles
Examples
Choice of Business, Sourcing of L/T Finance, Company Image, Financial Performance & Social Responsibility Plant relocation, Market Segmentation & Geographic coverage , Distribution Channels Production Scheduling, Plant & Machinery, HR selection, training Generic v/s Brand Mktg. High v/s Low Inventory
Corporate
Business
SBU Heads / VP
Functional
Action -oriented Opnl. Issues, Relative Short Range Plan with low Risk, Concrete & Quantifiable Decisions Immediate Implementation
Diff. between the Strategic Mgmt. and various other management functions
S/M integrates various other function. S/M Achieves organization wide goals. S/M considers range of Stake-Holders Concerned with Efficiency and Effectiveness 1. Efficiency Doing Things Right 2. Effectiveness Doing the Right Things (Balanced Emphasis on the both)
Developing Co.Profile (reflecting Int. Conditions & Capabilities) Assessing External Environment.
Analyzing Options (by matching resources with the Ext. Envmt) Identifying Most Desirable Options ( to meet Co. Mission) From L/T Objectives & Grand Strategies, select the most desirable option.
7. 8.
Developing Annual Objectives & Sh. Term Strategies. Implementation - Matching of Tasks, Resource Allocation, ,
People, Org. Structure, Technologies, Reward Systems. 9. Evaluation ( of Success) for future Decision Making.
Consolidation into Engineering, Materials, Power, Chemicals, IT, Telecom, Services Cos. hived off Tomco, Lacme, ACC, Goodlac Nerolac, TRF, Tata Ceramics, Tata Yodogavwa
Corporate Level Strategy Core Business Focus on Power Brands Hive off Low-Margin Business Actions Taken 30 Power Brands developed Rs. 400 Crs. spent on Quality up gradation Got out of Rs. 2000 Cr. worth low business of Animal Feed, Specialty chem. Oil & Fat, Shrimp Export etc.