BUSINESS IS TO BE BUSY

• WE ARE IN BUSINESS TO SUSTAIN AND GROW

• RANDOM GROWTH OR PLANNED GROWTH ?
• BUSINESS IS ALL ABOUT:
– INVEST
– CONQUEST
– ACCUMULATE
– GROW
– IF POSSIBLE BE A PART OF SOCIAL DEVELOPMENT-
CORPORATE SOCIAL RESPONSIBILITIES.
 SUSTAINANCE AND GROWTH

• IS SUSTAINANCE & GROWTH

MANAGEMENT BY :
– WISH ?
– INTENTION ?
– DEFAULT?
– EXPERIENCE
– LUCK ?
– DESIGN ?
– VISION?
– LEARNING FROM PAST, ACTING IN PRSENT AND
THINKING OF FUTURE?
 Pioneer foresights
• Eastman, Firestone, Bell, Edison,Watson, Wright Brothers,
Ford Motors of course.
• IBM: PCs would be limited to “entry systems” and would co-
exist with mainframes, as PC users will move up t powerful
computers.
• Biometric materials, satellite based communication –
phonehome
• Machines capable of emotions, influence and learning –
interaction with humans,
• Bio-remediation – custom driven, designed organisms to clean
up earth’s environment.
• Cars with on-board navigation, collision avoidance,
• Pesonally tailored multimedia educational curriculla
• Disease prevention – GENE REPLACEMENT.
• GENETIC CODING in demographic design
 Alliances
• Interactive TV IMAGING APPLICATION
MOTOROLA
MATSUSHITA AT & T KODAK
AT & T APPLE
SEGA TIME WARNER
SILICON GRAPHICS
TOSHIBA TCI

PERSONAL COMMUNICATION

MOTOROLA PHILIPS SHARP

MATSUSHITA AT & T
SONY
FUJITSU NTT

GENERAL MAGIC
COMPETING FOR THE FUTURE

COMPETITITON TO DEVELOP AND ACQUIRE

CONSTITUENT SKILLS & TECHNOLOGIES

COMPETITION TO SYNTHESISE WITH

CORE COMPETENCIES

COMPETING WITH INNOVATIVE

PRODUCT AND SERVICES

FUTURE IS UNLIMITED
BUT
IMAGINATION AND INNOVATION IS THE
LIMITING FACTOR.
 Why companies Fail??
Accumulation of Optimised Success
Unparalleled track
Abundant resources Business Controls
Of success.
Systems Strategy.

No gap between Momentum

Assets will Deeply etched
Expectations & Mistaken for
Win - out recipes
Performance. leadership

Complacent with Resources

Vulnerability to Failure to
Current Substitutes for
New Ideas Reinvent
performance Creativity leadership

INABILITY TO ESCAPE INABILITY TO INVENT

PAST GLORIES THE FUTURE
 What is Strategy?

“Strategy is the direction and scope of an

organization over the long term, which
achieves advantage for the organization
through its configuration of resources
within a challenging environment, to meet
the needs of markets and to fulfill
stakeholder expectations”
Strategic Management Defined
• Set of managerial decisions and actions
which determine the long-run performance
of a firm.
• NOT ALL DECISIONS ARE STRATEGIC!
• Criteria:
– Rare
– Consequential
– Directive
 What is the Strategy?
• Identify competitive approach
– Low-cost leadership
– Differentiation
– Focus on a particular market niche
• Determine competitive scope
– Stages of industry’s production/distribution
chain
– Geographic coverage
– Customer base
• Identify functional strategies
• Examine recent strategic moves
 Why Do Strategies Evolve?
• There is always an ongoing
need to react to
– Shifting market conditions
– Fresh moves of competitors
– New technologies
– Evolving customer preferences
– Political and regulatory changes
– New windows of opportunity
– Crisis situations
STRATEGIC MANAGEMENT MODEL: STEPS

ENVIRONMENTAL
SCANNING

INDUSTRY AND
COMPETITION ANALYSIS

COMPANY SWOT
ANALYSIS.

VISION, MISSION, POLICIES,

VALUES AND OBJECTIVES OF FEED BACK
SURVIVAL AND GROWTH

STRATEGY
FORMULATION

STRATEGY
IMPLEMENTATION

EVALUATION &
CONTROL
 Strategic Management - Components

ENV. STRATEGY Evaluation &

STRATEGY FORMULATION
SCAN IMPLEMENTATION monitoring

External: MISSION OBJECTIVES Strategic Planning

-Economic
-Societal STRATEGIES Plans & Programmes Performance
-Political Marketing Measures
- technology • BENCH MARKING Technology
• CORE COMPETENCE Feed back
Industry Operations System
•COMPETITIVE ADVANTAGE Financials
Competition • BUSINESS MIS
SWOT HRM ITES
• FUNCTIONAL
• OPERATIONAL Quality mgt.
INTERNAL
-Structure Processes
POLICIES
-Culture
-SWOT Broad guidelines
- Resources For decisions
making
 CONCEPT OF What are our values? How have we segmented
SERVED MARKETS our market? What kind of customers we serve? Where
Are our customers?

REVENUE & Where in the business systems we take profit? Where

MARGIN STURCTURE Do our margins come from? What has determined our
Size of our margins? What are costs – price drivers?

CONFIGURATION OF What is the process e know to do the best in the class?

SKILLS AND ASSETS What infrastructure supports our business?
What skills predominates?
What is the trajectory of our development spending?

FLEXIBILITY &
ADAPTATIVENESS How alert are we to new value delivery models?
How easily could investment programmes be re-oriented?
How easily could the infrastructure be re-configured?
Which constituencies would offer
most resistance to change?
 Strategic Management – effectiveness
• Factors influencing Strategic management:
– Core competence
– Customer orientation.
– Competitive advantage
– Corporate governance
– Managing change, technology scan and
adaptation, innovation, migration path, service
leadership.
– Balanced Score Card – performance monitoring
– Functional plans
– People, culture, overall leadership.
 The BCG Growth-Share Matrix

Cash Generation (market share)

High Low

Cash High
Use
(growth
rate)
Low
BDC’s Growth/Share Matrix
 The BCG Growth-Share Matrix

Description of Dimensions

Market Share Growth Rate

Sales relative to those of Industry growth rate in
other competitors in the constant dollars (dividing
market (dividing point is point is typically the
usually selected to have GNP’s growth rate)
only the two-three largest
competitors in any market
fall into the high market
share region)
Industry Attractiveness-Business Strength
Matrix
Industry Attractiveness

High Medium Low

High
Business Strength

Medium

Low
Industry Attractiveness-Business Strength
Matrix

Description of Dimensions

Industry Attractiveness Business Strength

Subjective assessment Subjective assessment
based on broadest of how strong a
possible range of external competitive advantage is
opportunities & threats created by a broad range
beyond the strict control of the firm’s internal
of management strengths & weaknesses
The Market Life-Cycle Competitive Strength
Matrix

Stage of Market Life Cycle

Introduction Growth Maturity Decline

t
High

es
Competitive Strength

v
h: In ively
s s
Pu gres t
Ag es
Moderate

v
n: In ely
o
a uti ectiv t
C el es
S r v
a
r: H
nge
Low

Da
 The business unit competitive position
The Life-Cycle Strong Average Weak
Portfolio Matrix
Development

Th e Industry’s stage in the evolutionary

Growth
life cycle

Competitive
shakeout

Maturity

Saturation

Decline
The GE Nine-Cell Planning
Grid
 Are you Managing for Growth?
What Is Your Mission? What External Factors affect Your Market?
What Is Your Long Term Aspiration? What Are Your Core Competencies?
What Will You do to Achieve the Vision? What are Your Strengths & Weaknesses?
What Core Beliefs and Principles Will Guide You Toward the Vision? Where Is Your Market Headed?
What Are the Key Priorities? What Are the Competitors Strategies?
What are the Critical Business Issues? What are the Major Threats & Obstacles?
What Must We Do to Achieve Our Goals? What Are Your Strategic Imperatives?

What Are The Performance Gaps?

Strategic What are Your Top Priorities for Improvement?
2 Planning What Are Your 1 to 5 Year Financial Goals?
What Are Your 1 to 5 Year Financial Goals?
What Are Your Goals for Improving…….
Senior Management
- Customer Value
- Employee Satisfaction?
Operations Management - Market Share
What Do Your Customers Want? Dept Management - Business Results?
What Is Important To Your Customers? Customer
How Satisfied Are They Today? Management Job Performers
How Do You Rate Vs. Competition?
1 Process
Business
Assessment
What Vital Measurements Must Be Monitored
How Effective Are You At Resolving 3 Planning &
( Financial and Operational)?
What Is the Current Performance Level?
Customer Complaints? Deployment What Are the Performance Targets For this
Do you Manage Your Customer
Year? Three Years?
Database? What Are the Industry Benchmarks for
How Well Are You Managing Each Measure?
Customer Relations? Where Are the Biggest Performance Gaps?

Review Core
5 Process 4 Process
Improvement

Which Processes Impact Critical

Performance Measurer the Most?
Do Results Match or Exceed Priorities? Are These Processes Mapped & Documented?
Where Are the Shortfalls? Where Are the Performance Gaps?
What Corrective Actions Are Needed? Who will Champion This Improvement?
Are the Key Initiatives on Target? How Will the Processes Be Improved?
Do We need to Adjust Plans? What Are the Improvement Benchmarks?
What Is the Timetable for Completion?
Porter’s Generic Competitive Strategies

25
Porter’s Competitive Strategies
• Cost Leadership:
– Low-cost competitive strategy
– Aimed at broad mass market
– Need to achieve:
• Aggressive construction of efficient-scale facilities
• Cost reductions
• Cost minimization

26
Porter’s Competitive Strategies
• Differentiation:
– Broad mass market
– Unique product or service
– Need to:
• Charge premiums
• Lower customer sensitivity to price by offering
unique features or benefits
• Make it hard for competitors to copy your product

27
Porter’s Competitive Strategies
• Focused Cost Leadership:
– Low cost competitive strategy
– Focus on particular buyer group or market
– Need to:
– Stay focused on niche (don’t try to please all)
– Seek cost advantage only in target market

28
Porter’s Competitive Strategies
• Focused Differentiation:
– Focus on particular group or geographic
market
– Seek differentiation in targeted market
segment
– Serve special needs of narrow target market

29
Porter’s Competitive Strategies
• Stuck in the middle:
– No competitive advantage (not cost, not
differentiation, no niche)
– Will result in below-average performance

30
 GROWTH STRATEGIES - GENERIC

• INTENSIVE GROWTH
• INTEGRATIVE GROWTH
• DIVERSIFICATION GROWTH
• HORIZONTAL
• VERTICAL
– INCLUDING FORWARD AND BACKWARD
INTEGRATION.
A Company’s Strategy is Partly Planned
and Partly Reactive
ra tegy
ed s t
n d o n
Aba a t ures
Company f e
Experiences, Planned Stra
New initiativ
t
gy e
Know-how, es plus ong
strategy fea oing
Resource tures contin
from prior p ued
Strengths eriods Actual
and Company
Weaknesses, Strategy
and ti o n s to
t i ve reac
Competitive Ada p
m s t a n ces
g i n g c ircu
Capabilities c han
Reactive Strategy
 Three levels of strategy
in an organization
Corporate strategy
• Vision
• Corporate goals
• Philosophy and culture

Business unit strategy

• Mission
• Business goals
• Competencies

Functional strategy

Information Research &

Manufacturing
systems development

Human
Finance Marketing
resources
Each Functional Area Has a Number of Sub-
Strategies & Tactics
Marketing
manager

Product Price Promotion Place

Features List price Advertising Outlets
Brand name Discounts Personal selling Channels
Packaging Allowances Sales promotion Coverage
Service Credit items Public Relations Transportation
Warranty Payment period Stock level

Cohesive marketing mix

Promotion
Promotion
Product Place
Place

Price
 Tests of a Winning Strategy

• GOODNESS OF FIT TEST

– How well is strategy matched to
firm’s situation?
• COMPETITIVE ADVANTAGE TEST
– Does strategy lead to sustainable
competitive advantage?
• PERFORMANCE TEST
– Does strategy boost firm performance?
 MAJOR CHANGES IN GLOBALIZATION

 RISE OF CHINA and INDIA

 More broadly, A half century after end of colonialism
new role of developing world
 New sources of economic growth
 New political power
 New patterns of trade
 CHANGING GLOBAL FINANCIAL SYSTEM
 ENERGY
 Combination of scarcity and environmental concerns
(global warming) will force changes in production and
consumption

 The adjustment of Global Economy to these changes

poses major risks and opportunities
 New opportunities
• New markets
– Access to the global market place means that
expansion is not limited by the size of local markets
• New sources of supplies of inputs
– Again, firms are not limited to inputs available locally
• Wider range of commodities, lower prices, higher quality,
meeting specific needs
• A global market place for talent
 New opportunities
• New sources of finance
– Increasing flow of funds to emerging markets
– From an ever expanding set of sources
• Most recently, growth of sovereign funds
– In a wide range of forms (debt, equity)
• Access to global technology
– Means that “catching up” can occur quickly
 New risks
• Rapid changes in global comparative
advantages
– New competitors
– New products, new technologies
• Changes in global scarcities
– Reflected in volatility in commodity prices
– Especially in energy markets
– Linking of energy and agriculture
 New risks
• Financial market volatility
– Affecting even countries that manage their own
markets well
• Sub-prime mortgage crisis
• Large changes in risk premium
• New rules of the game
– International rules (WTO, IMF, Basle)
– Domestic responses to the changing global
landscape
• Backlash against globalization
 While the global landscape has
changed, the world is still not flat…
 Growing disparity between richest countries and
poorest countries
 Growing disparities within most countries of the
world
 Threat of job loss in advanced industrial
countries
 Even for well educated (outsourcing)
 Even if economy maintains full employment, wages can be
depressed
 Globalization has played an important role in these
disparities
 Predictable effect on inequality within advanced
industrial economies
 Unfair trade treaties have compounded problems in
developing countries
 Problems compounded by asymmetric liberalization
 Underlying problem
 Globalization has meant that the world is
more interconnected; what happens in
one part of the world has impact on other
parts
 There is greater need for collective
(cooperative) action
 But economic globalization has outpaced
political globalization
 Rising energy prices
 Problems of global warming will compound
problems of energy insecurity and Mideast
turbulence
– China and India have large coal deposits, few oil and
natural gas reserves
– Problems in some of alternatives
• U.S. corn based ethanol very inefficient
• Biofuels limited by water scarcity
• Carbon storage technology unproven
– Could dampen economic growth unless there is
substantial increase in energy efficiency and
conservation—changes in patterns of consumption
and production
 Globalization presents new risks
 Changing comparative advantages due to rising
economic power of China and India
 New protectionism
 Global financial instability
 Disorderly adjustment of global imbalances
 New risks posed by financial innovation
 Re-pricing of risk
 U.S. economic downturn
 In globalized world, what happens in one country affects all others
 Global warming
 Globalization also presents
new opportunities…
 One of objectives of banks and financial
markets is not only to manage these
risks, but also to seize now opportunities,
in part by anticipating these changing
trends in the global landscape
 90’S BEYOND- PARADIGM SHIFT IN
STRATEGISING BUSINESS GROWTH –
migration path

Creating &
managing
coalition
Learning &
Investing in Experimenting in
Core Markets &
competencies Operations

Building
Setting standards &
Global
Influencing
Brands &
regulations
Distribution
 Evolving digital place

Consumer electronics: Professional electronics: Information content:

Sony, Philips, Matsushita Kodak, Xerox, cannon CBS, 3 DO, Time Warner
Sharp, Toshiba Intel, Hughes, Motorola Disney, Viacom,

Digital highway: Computer systems: Info tech services:

AT & T, MCI, British telecom, IBM, NEC, Siemens, Computer services,
Baby Bells, McCaw, TCI. Alcatel, DEC, Apple, Anderson consulting.
Hewlett – Packard.

Operating systems &

Applications:
Micro soft, lotus, electronic arts etc.,
 GRAND STRATEGY
• ALL THE SQUARES WERE REMOVED
AND DIGITAL SPACE GOT EVOLVED.
Grand Strategy Steps
Summary
Step One. Answer "what's your Theory of Business?"

Step Two. Identify your Values, Beliefs, Attitudes and Capabilities.

Step Three. Write your Mission Statement.

Step Four. Perform an Environmental Scan.

Step Five. Perform a SWOT Analysis.

Step Six. Determine your Strategic Focus.

Step Seven. Seek Performance Breakthroughs.

Step Eight. Understand and Apply Cause and Effect Relationships.

Step Nine. Develop a Strategy Map.

Step Ten. Translate goals into KPMs and Perform Gap Analysis.

Step Eleven. Prepare a Scorecard to track and drive Your Grand Strategy.

Step Twelve. Execute, Adjust, Execute.

 Grand Strategy Selection Matrix

Overcome weaknesses

Turnaround or Vertical integration

retrenchment Conglomerate diversification
Internal Divestiture External
(redirected Liquidation
II I (acquisition
resources or merger
within the III IV for resource
firm) Concentrated growth Horizontal integration capability)
Mkt. Development Concentric diversification
Prod. Development Joint venture
Innovation

Maximize strengths
 Model of Grand Strategy Clusters

Rapid market growth

1. Concentrated 1. Reformulation of
growth concentrated growth
2. Vertical 2. Horizontal integration
Integration 3. Divestiture
3. Concentric 4. Liquidation
Strong diversification I II Weak
competitive competitive
position IV III position
1. Concentric 1. Turnaround or
diversification retrenchment
2. Conglomerate 2. Concentric diversification
diversification 3. Conglomerate
3. Joint venture diversification
4. Divestiture
5. Liquidation
Slow market growth
 Grand Strategy Selection Matrix

Overcome Weakness

Turnaround or
Vertical integration
retrenchment
Conglomerate
Divesture External
Internal diversification
(redirected Liquidation (acquisition
I II or merger
resources
IV III for resource
within the
firm) Concentrated growth Horizontal integration capability)
Market development Concentric
diversification
Product development
Joint venture
Innovation

Maximize Strengths
 Model of Grand Strategy Clusters

Rapid Market
Growth
• Reformulation of
concentrated growth
• Concentrated growth • Horizontal integration
• Vertical integration • Divestiture
• Concentric diversification • Liquidation
Strong Weak
I II
Competitive Competitive
IV III
Forces Forces
• Concentric diversification • Turnaround or retrenchment
• Conglomerate • Concentric diversification
diversification
• Conglomerate diversification
• Joint ventures
• Divestiture
• Liquidation

Slow Market Growth

DESTINATION INDIA

REACH OUT FOR EAST

 India: Among the Top-15 Countries in
terms of GDP at constant prices
The Indian economy has witnessed unprecedented growth…. Booming services and industry sectors
are providing the required impetus to economic growth
India’s GDP has
witnessed high India's GDP at Current Prices: 2002-07
growth, and was the
second fastest 1000
growing GDP after
China in 2006-07 800 Fastest GDP growth of 9.4
percent in 2006-07, since last 18

USD Billion
600 years (at constant prices)

400 638 737 830

200 469 556
Indian economy is
237
expected to be 3rd
largest in terms of
0

02-

04-

06-
20

20

20
PPP – USD 4.5
trillion by the end of
2007

Contribution
The sound of Services - Growth in sectors at Current
performance of each increased Prices (2006-07):
from 48
industry segment is Industry: 16.2%
leading to the overall 1,000 percent to 55
percent Services: 16.3%
robust performance
of the Indian
800 Agriculture: 10.2%
USD Billion

economy 600 398

453

400 191 237

Estimated growth rate in various GDP
200 204 231 sectors for Q1 (2007-08) is: Industry – 15.9
103 125
0 105 105 135 145 percent, Agriculture – 11.4 percent and
Services – 15.7 percent

1999- 2002- 2005- 2006-

00Agriculture 03 Industry 06Services 07
Source: MOSPI Statistics
 India: Robust Economic Platform
India's Forex Reserves: 2001-07 (Till 28 September 2007)
India’s strong
economic 300 248
performance has 250 199
USD Billion
200 152
112 141
been the major
…at present level of Forex
contributor towards
150 75 reserves, the country has
increased Forex
reserves 100 54 adequate cover for 12 months of
50 imports
0
Steadily increasing

2007-08
2001-02

2003-04

2005-06

(Till 28
Forex reserves offer
adequate security
against any possible
currency crisis or
monetary instability
India’s Forex
External Debt-to-GDP Ratio reserves are in

22 21.1 20.4 Falling Dollar inflates

excess of
external debt…
Forex reserves
witnessed an the India’s external debt
increase of 200 19 17.8 17.3
percent for the 15.8 16.4
Ratio

period 1990-2007 16
Increased
13
confidence of
investors in Indian 10 …the decreasing external debt to
GDP ratio indicates that India has
companies has led
to a surge in cross 2001- 2002- 2003- 2004- 2005- 2006- a sound economic platform
border borrowing by
corporate houses 02 03 04 05 06 07

Source: RBI Statistics

 India: Surging Exports
India's Exports: 2002-08
Services sector has
been a major 150 126.33
103.42
100 52.81 63.95 83.81
contributor to
increased exports USD Billion
from India 46.80 Quality and cost advantage are the two
50 important parameters leveraged by the
Indian producers to increasingly
Acceptance of
0 market products and services
2002-

2004-

2006-
Indian products
03

05
along with the cost

07
advantage has
provided an edge to
Indian companies
* - 2007-08 provisional data for period of April to July only

Indian companies India's Imports: 2002-08

have chalked out
extensive plans to
increase their
250 190.50
200 149.65
USD Billion

presence abroad
150 111.89
100 61.52 78.28 72.40 Petroleum products are the major
Product imports by
50 contributors towards India’s growing
India mainly include 0 imports
petroleum products
2006-
2002-

2004-

and minerals
07
03

05

* - 2007-08 provisional data for period of April to July only

Source: Ministry of Finance (August Report)

 India: Attractive Investment
Destination
With improved performance on PE ratio and ROE, Indian markets have attracted
large investments
India is ranked FDI Inflow - India: 2001-07
second in AT 20,000 15,730
Kearney’s FDI
15,000
USD Million

180 percent
confidence index Electronic equipment,
10,000 4,222 Increase

3,134
2 3,7555,546 4,909
,634 manufacturing and telecom
5,000 have witnessed significant
0 FDI inflow

2005-

2007-
2003-
2001-
02

04

06

08
Net FII into India: 2001-07
FDI inflow for the
20 16.60
period 2006-07
15 10.0010.20 9.40
USD Billion
witnessed a growth
Large FII activity in India has 10 6.71
of 180 percent over
led to an upsurge in the 5 1.80 0.60
the same period last
Sensex 0

)
07
3
2

6
year

er
-0

-0

-0

-0

-0

6-

ob
01

02

03

04

05

ct
20

20

20

20

20

20

O
12
ll
(ti
8
-0
07
20
Source: DIPP (June Report), SEBI
 India: Vibrant Capital Market
Sensex – The Bombay Stock Exchange index has risen 18 times from 1990s to
India is among the reach 18,000 mark in October 2007.
major destinations
across the globe for
inflow of US Dollar
i.e. FIIs
10/9/2007
Crossed
18,000
mark
09 July 2007
20000 Crossed 15,000 mark
Sensex has risen
18 times in the 18000
period 1990-2007 07 February 2006
16000 Crossed 10,000 mark
14000
30 December 1999
12000 Crossed 5,000 mark

10000
8000
Emergence of
industry and 6000
confidence of local 4000
investors along with
2000
the FIIs has led to
increased movement 0
of the Sensex 12-Oct-97 12-Oct-98 12-Oct-99 12-Oct-00 12-Oct-01 12-Oct-02 12-Oct-03 12-Oct-04 12-Oct-05 12-Oct-06 12-Oct-07

FIIs have infused

large investments Encouraging Increased local
into the Indian industry investors’
stock market performance confidence
Major M&A Deals Undertaken Abroad
by India Inc.
Tata Steel buys Corus Plc USD 12.1 billion

Hindalco acquired Novelis Inc. USD 6 billion

Essar Steel acquired Algoma Steel USD 1.58 billion

Suzlon Energy Ltd. acquires REpower USD 1.6 billion

United Spirits Ltd. acquired Whyte & USD 1.1 billion

Mackay
Major M&A and Investments
Announcements in India
Vodafone buys Hutch USD 11 billion

Plans to spend on its development operations USD 1.7 billion

in India over the next four years

Plans investment in private equity, real estate, USD 1 billion

and private wealth management

Aditya Birla Group increased its stake in Idea USD 0.98 billion
Cellular by acquiring 48.14-percent stake

Renault, Nissan and Mahindra & Mahindra

have initiated a Greenfield automobile plant USD 0.905 billion

project in Chennai.

Mylan Laboratories acquired a majority stake USD 0.74 billion

in Matrix Laboratories
 India: Pacing Ahead to Emerge as a
Major Economy in the World
2007 Global Retail Development Index (GRDI) 2007 Global Services Location Index
… the retail market
along with the 100 3.2 2.3 1.4
services sector has
been attracting GRDI Score 80 2.9 2.3 1.4
interest of major
60 2.8 1.3 2

sia nd ina
global players
40 3.2 1.2 1.6

ne ila Ch
AT Kearney has
20 2.6 1.8 1.5
placed India as the 0 3.3 1.5 1.1

do Tha
most preferable
destination for India
Russia
Vietnam
Ukraine
China Chile Latvia Financial structure
Services sector…
People and skill availablity
Business environment

In
… India is the top Projected GDP Growth Rates for Select Upcoming Economies
destination in the AT
Kearney Global
8
GDP Growth Rate (%)

Retail Development
Index (2007)
6
4
2
India is expected to
outperform its rivals 0
in the BRIC, in terms
of GDP growth rate, 2005- 2010- 2015- 2020- 2025- 2030- 2035- 2040- 2045-
from 2015
onwards… 10 15 20 25 30 35 40 45 50
Brazil China India Russia
Source: AT Kearney, BRIC Report
 India: Astounding Demographics
DEMOGRAPHIC TRANSFORMATION OF INDIA
Growth in the higher Annual Household Income
income categories of (in USD)
India’s population is
2 9 20 Rich (Above 115,000)
creating an affluent Population (million)
section with high 9 17 33 High Income (57,000 – 115,000)
purchasing power
48 74 120 Consuming class (23,000 – 57,000)

221 285 404 Working class (10,200 – 23,000)

726 710 613 Needy (Below 10,200)

2001-02 2005-06 2009-10(E)

* In PPP terms

Per Capita Income

Increasing per capita 700
600 461 519 583 651
income and a
500 393 Increasing per capita income
growing middle
400
USD

coupled with an emerging middle

class is driving a 300 class has provided the necessary
high level of 200
consumerism in 100 impetus to consumerism in India
India 0
20 20 20 20 20
02- 03- 04- 05- 06-
03 04 05 06 07

Source: RBI Statistics

 India: Increasing Working Population
Growth in Global Working Age Population (15-64)
Stock Position 2005 Addition to Working Age Population by 2010

World 4,168 314

India 691
71
Africa 500
64
China 934
44
33
South East Asia 362
31
Latin America 359
17
Southern Asia 132
10
USA 200
0
Europe 497
-3
Japan 85
-5 45 95 145 195 245 295 345
In Million

Countries worldwide are anticipating a shortage of working population in the future. India is expected to emerge as a
clear winner, and by 2050, it will have the largest working age population.

Source: Its Hendersons

 Why India? – Quote Unquote
“India has evolved into
one of the world's “I have never seen
“India is now truly a leading technology India so dynamic,
land of opportunity”. centers“. vibrant and full of
business
opportunities”.
Craig
Barrett
John Redwood By 2032, India will be Intel
Economic Peter
among the three Corporation
Competitiveness Loescher
Policy Group, UK largest economies in President and
the world. Chief
Executive
Siemens
“The Indian market has two
“We came to India for
core advantages - an
the costs, stayed for the
BRIC Report, increasing presence of
quality and are now
Goldman multinationals and an upswing
investing for innovation”. Sachs in the IT exports”.

“India is a
developed country Travyn
- Dan Scheinman, “India is a very exciting
Rhall,
Cisco System Inc. as as far as intellectual market and the luxury ACNielse
told to Business Week, capital is car segment is growing n
August 2005 concerned”. exponentially here”.

Mr Paul de Voijs
Jack Welch Managing Director
General Volvo Car India
 Understanding Company Strategy -
What to Look For
Diversification
Responses to
Actions to Strengthen Changing Conditions
Resources & Capabilities
How Functional Offensive Moves
Activities Are to Gain Edge
Managed Pattern
of Actions
That Define
Strategy Changes in
Defensive Moves Product Line,
Quality, or Service
Pursuing New
Opportunities Geographic
Coverage
Forward or
Backward Integration,
Collaboration
 POLICY vs STRATEGY

POLICY STUDIES
• INTERNAL FOCUS
• EMPHASIZES EFFICIENCY OF OPERATIONS

STRATEGIC STUDIES
• EXTERNAL FOCUS
• EMPHASIZES ADAPTING TO A CHANGING ENVIRONMENT

“SEAT-OF-THE-PANTS” MANAGEMENT = Intuitive

Management
We must move away from intuitive approaches as:
THE ORGANIZATION BECOMES LARGER…
THE LAYERS OF MANAGEMENT INCREASE…
THE ENVIRONMENT BECOMES MORE COMPLEX.
 GE Case

• Jack Welch became the CEO in 1981

• GE revenue in 1981: $29 billion; profit: $2 billion
• Welch wanted to re-engineer GE??
– Bought and sold business units: change business
portfolio
• Question: which to sell and what to buy?
• Guiding principle to keep or buy
– The No.1 – or – No. 2 test
– Well above average real returns on investments
– A distinct competitive advantage
– Leverage from GE’s particular strength
• Issue: how to apply test?
 Keep

SERVICE TECHNOLOGY
GECS Industrial Electronics
GE Information Medical Systems
Construction Material
Nuclear Services Aircraft Engine
Aerospace

CORE
Sell/Fix Lighting
Sell/Fix
Major Alliance
Construction equipment House wares
Ladd Central Air Conditioning
Semiconductor Transportation
Turbine TV&Audio
Trading Cable
Utah International Motor
Mobile
Calma Power Delivery
Radio Stations

Welch’s vision on what to keep and what to sell/fix around 1983

 GE’s Money making machine (Welch, 1985)

Thrust (key driver)

Fast growing businesses

Aircraft Plastics Medical EDC

Aerospace engine

Investment in one direction

Industry knowledge in another direction

GE Finance Appliances Lighting Motors Transportation

Steady stream of income & professional expertise to support leasing and other financing activities
Steady slow grow business

Fuel (supporting driver)

Superfluous drivers: distributors, agents, suppliers, etc.
 SDS
Copier

PARC
Medicine Education

Xerox Diversified Structure

 New New New
input input input

New Business 1 Business 2 Business 3 Business 4

input

Consolidate Leverage
assets assets

Strategic Assets Pool

•Centrally managed
•Applied to new business

Diversity of the business depends on the diversity of assets pool cumulated

 New
Transistor TV tube
input

Magnetic Audio Transistor Pullman/

motor Radio TV Walkman
recorder

Leverage
assets

•Audio tape •Miniaturization •Bright picture tube

•Recording/play head •Monitor •Miniature earphone
•Transistor science
•Tape winding •Remote control •Audio cassette
•High fidelity •Create excitment
•Market communication •Pricing strategy •Picture quality
•American market •Latecomer strategy

Strategic assets pool: supporting driver

New electronic-related technologies: key driver

Sony’s Model in Managing Strategic Assets

 Marketing Desire to go Desire to enter
Finance knowledge international Car market

Piston Motor cycle Motor cycle Car

knowledge Motor cycle In US
engine

Leverage
assets

•Powerful engine •Build distribution channel •Latecomer strategy •Reliable car enginer
•Reliable engine •Use racing to improve •Open foreign market •Clean car enginer
engine •Train foreign labor •Gas economy car
•Mass production force •Small but roomy car
•Penetrate all car segments
Strategic Assets

Strategic assets pool: supporting driver

New knowledge & Desire: key driver

Honda’s Model in Managing Strategic Assets

 Sony and Honda

• Organizing paradigm for Sony and Honda

– Strategic assets as the central core for supporting driver
– New businesses are driven by technology, knowledge, & desire
– Generic knowledge acquired through businesses are maintained
and manage by the central “Strategic Assets Pool”
• Find or create the context under which some of its
assets in the pool can provide unique advantage
• The portfolio of businesses provide a strong holder for
the vision of the company
 Managing Strategic Assets Portfolio
• Manage Vision
– A simple shared vision that guides the businesses moving together as a
unit, yet give each the flexibility to excel in its business
• Manage business portfolio
– Knowledge and desire guide new business direction, interpret the business
model in a context that can leverage its strategic assets
• Manage authority
– Minimal hierarchy, authority comes from responsibility rather than formal
position, get assess to strategic assets to fulfill responsibility
• Manage people
– Lead instead of manage, get commitment, facilitate transfer to match
people’s career goal and to enrich knowledge
• Manage Strategic assets
– Extract generic knowledge acquired in business and consolidate into the
corporate strategic assets pool
• Manage Culture
– Small to its customers, big to its competitors
 McDonald’s Perpetual Growth

Grabber vision Be your own boss

1

Real estate subsidiary

McDonald’s University
Strategic assets Arrange loan
Arrange suppliers

Grabber vision American eating out

2

Additional Convert to restaurant

Advertisement
McDonald’s had no close
Strategic assets McDonald’s figures Competitor since 1965
Play ground
until late 90’s
Grabber vision American living style
3

Arrange local supplier

Additional Partnership with foreigners
Modify menu for local taste
Strategic assets
 IBM Growth

Grabber vision Machine for

1 accounting needs

•Punch-card machine
•System knowledge
Strategic assets •Strong sales force
•Relationship with big
companies and government

Grabber vision Multi-purpose computer

2

•Electronics
Additional •Magnetic
Strategic assets •Build complex computer
•Create grabber excitement

Grabber vision Computer for everyone

3

•Learn about PC business in

Additional a painful way
•Struggling to survive
Strategic assets
Strategic Approaches to Preparing
for Future Market Conditions

Reactive/Follower Proactive/Leader

Aggressively
Rapid Keep from being
altering strategy to
Revolutionary swamped by the
Change make waves and
waves of change
drive change

Anticipating
Revising strategy
Gradual change and
(hopefully in time)
Evolutionary initiating strategic
Change to catch the waves
actions to ride the
of change
crest of change
 IS Transforms Business
Practices

Improving organizational performance - IS in action

 CEO Audit
Organization/IT Design Challenge
Complex

“Networked Intelligence”
(Collaboration)

Organization

“Centralized Intelligence”
Mainframe
(Control) “Decentralized Intelligence”
Microcomputer
Simple (Autonomy)

Stable Dynamic
Certain Environment Uncertain
How many of you agree with this statement ?

We belong to
the 21 century
st
 Do you want to change your mind ?

•21ST
CENTURY
BELONGS TO US
 Transition from dream to
reality

conviction
intension

dream wish reality

No risk No risk Risk

 Technology change
• What required 1500 sheets of paper to
document: it takes:
• 500 floppy discs
– 200 hard disc
– 100 CDs.
– 50 magneto optical disc.
• LEARN:
• L= LISTENING
• E= EAGERNESS
• A= ASSIMILATE
• R = RETAIN
• N = NAVIGATE – BASED ON ONE’S UNIQUENESS.
• Yatha chaturbhihi kankam parikshyathe
• Nigharshana chedana taapa thadana
• Thatha chaturbhihi purusham parikshyathe
• Thyagena sheelena gunena karmana.

• As gold is tested by rubbing, cutting, heating

and beating, human beings are tested by
sacrificial nature, character, quality and actions.
 It is not easy
• To apologies,
• To be unselfish
• To take advice
• To admit error
• To be concerned and considerate
• To forgive and forget
• To endure success of others
• To subdue temper
• To make best of little
• To recognise the silver lining……………
• BUT IT PAYS.
 Luck
• I am great believer in luck, and I
find the harder and smarter I
work, with integrity and
commitment, the more I have of
it.
• Belief in luck is the birth right of
the weak and the vulnerable.
• I have been lucky on those
occasions when I have willingly
taken maximum risk in
 Ponder over.
• Life is like a bicycle. You don’t fall
off unless you stop pedaling.
• There is a great man who makes
every man feel small. But the really
great man is the man who makes
every man feel great.
• If we do what we did we get less than
what we got, and if we do better than
what we did, there are chances that we
may get what we got.
 Student position model

HI
D
E Hyped Real-time managers
S
I
Overconfidence Hi risk taking ability
R Risk in wrong areas
A
B
I
L
I Fear of failure Complacent
T
Y Risk averse Lo risk taking ability

LO HI
Deservability
 IT’S GREAT TO BE POSITIVE
• If you cannot smile, do not frown
• If you cannot like do not dislike
• If you cannot honour, do not dis-honour
• If you cannot love, do not hate.
• If your want to be only with few, do not distance
others.
• If you want to be ‘YOU’ do not ignore ‘YOU’ in
others.
• If you cannot understand, do not
misunderstand.
 Positive Thinking
• Count your garden by the flowers, never
by the leaves that fell.
• Count your days by golden/shining hours,
don’t remember clouds at all.
• Count your nights by stars, not shadows.
• Count your lives by smiles and not by
tears.
• Count your age by friends and not by
foes.
 Aspire Big but start with Small
• One sunbeam lights a room.
• One candle can wipe out darkness
• One laugh can conquer gloom
• One step must start each journey.
• One word starts a prayer.
• One hope will raise our spirits.
• One pat can show you care.
• One voice can speak with wisdom
• One heart can know what’s trust.
• One life can make the difference
• You could ……………….it’s upto you.
 Three in one

creator sustainer
Manager

Change agent.
 WHAT CLICKS ?
• FOCUS.
• F = FUNDAMENTAL VISION/GOAL
• O = OWNERSHIP
• C = CONFIDENCE – CONSTANCY OF
PURPOSE
• U = UPGRADATION
• S = SUSTAIN AND IMPROVE
 CONFFIDENCE
• A state of mind in which knowledge is fully
converted into profitable action with least
resistance from environment.
• An energy source.
• a personal character trait.
• Can win half the race – other half by integrity
and concerted effort.
• Definitely not a loud expression of
arrogance.
 confidence
• C = COMPETENCE
• O = ORDERLINESS
• N = NO FAILURE APPROACH
• F = FURURISTIC APPROACH
• I = INTEGRATED TO ETHICS & VALUES,
• D = DEMONSTRATE IN ACTION
• E = EFFICACY
• N = NO ULTERIOR MOTIVE IN COMMUNICATION
• C = COMMITMENT TO CONSTANCY OF PURPOSE
• E = ENDURING POWER.
Making A
Difference
 One day a man was walking
along the seashore. He noticed
that during the night many
seashells and starfish had washed
upon the shore. Enjoying the
morning sun and cool sea air, the
man strolled for miles along the
sand.
Far off in the distance, he saw a small figure dancing.
The man was joyous that someone was celebrating
life in such a grand and uninhibited manner. As he
drew closer, however, it became apparent that
perhaps the figure was not dancing, but perhaps
repeatedly performing some ritual.
Approaching the small figure, the man
noticed that it was a child. The girl was
methodically picking up starfish from the
shore and tossing them back into the surf.
The man paused for a moment, puzzled,
then asked, “Why are you throwing those
starfish?”
 “If I leave these starfish on the beach,” she
replied, “The sun will dry them, and they will die.
So I’m throwing them back into the ocean
because I want them to live.”
 The man was quiet for a moment, impressed with
the child’s thoughtfulness. Then he motioned up
and down the miles and miles of beach and said,
“There must be millions of starfish along here! How
can you possibly expect to make a difference?”
 The young girl pondered the man’s words for
a moment, then she slowly leaned over, reached
down, and carefully picked up another starfish
from the sand. Pulling back, she arched the
starfish gently into the surf.
She turned to the man and smiled. “You may
be right,” she said, “But I made a difference
for that one.”
You can make a
difference in our
class this year.
 Speech Production Mechanism

Back < Prev Next >

 24 personal strengths
1. Stamina 9. Enthusiasm
2. Valour 10. Memory
3. Attraction 11. Decisive - definiteness
4. Motivation 12. Strong intention
5. Direction 13. Love and concern
6. Toughness 14. Dislike
7. Logical reasoning 15. Clarity of thoughts
8. action 16. Organising ability
 24 personal strengths
1. Ability to distinguish
2. Team person
3. Listening
4. Feel, taste and touch
5. Sight & vision.
6. Reading
7. Common sense
8. originality
OSRG

EMOTIONAL INTELLIGENCE

WHAT IS IT AND WHY DO I

NEED IT?
Emotional intelligence – few questions
– Are we all educated?
– Are we getting educated?
– Has education an end?
– If no, is education a continuous process?
– Does Education gives knowledge ?
– We get information or knowledge in the class
room ?
– We get education in the class rooms only ?
– Do we get educated from which ever source we get
information or knowledge?
– Do we get data or info or knowledge from books,
news papers, TV magazines, and other sources ?
 LOOK AT THE FOLLOWING
FIGURES

YOU SEE THEM QUITE OFTEN??

Accusing fingers- emotional
ignorance
fear of failure- emotional
ignorance
apprehension - emotional
ignorance
blowing one’s own … emotional
ignorance
frustration - emotional
ignorance
crying babies.- emotional
ignorance
 Emotional intelligence –
udaara charithanaanthu vasudaiva
kutumbakam.
SHOULD WE PUT OUR HEARTS IN OUR BRAINS
OR
SHOULD WE PUT OUR BRAINS IN OUR HEARTS?
 EMOTIONALL INTELLIGENCE
IS THE SKILL
OF SYNERGISING
EMOTIONS-MIX
WITH INPUTS FROM LOGIC,
LEARNING, EXPERIENCE,
EXPOSURE AND UNLEARNING
 EMOTIONAL INTELLIGENCE
IS THE SCIENCE OF CONVERTING
NEGATIVE ENERGY INTO POSITIVE ENERGY
AND
OPTIMISING EMOTIONS - MIX
 Risks – few of them; examine.
• WE HIDE EMOTIONS.
– To laugh is to risk appearing fool.
– To weep is to risk appearing sentimental
– To reach out for another is to risk
involvement.
– To expose feelings is to risk exposing true
self.
– To live to risk dying.
– To hope is to risk despair
– To try is to risk failure
 Risks – few of them; examine.
• RISK NOTHING IN LIFE IS A GREAT HAZARD.

• IF ONE RISKS NOTHING IN LIFE, DOES

NOTHING, HAS NOTHING AND IS NOTHING.

• RISK ENSURES FREEDOM.

• RISK ENABLES YOU TO CONFIDENTALLY

ANSWER THE ETERNAL QUESTION --------
WHAT NEXT???
Basic Emotions--presumed to be hard wired
and physiologically distinctive

• Joy
• Surprise
• Sadness
• Anger
• Disgust
• Fear
 3 S – EMOTIONAL IGNORANCE

• Suspicion
• Sentiment
• Super ego
 Life Positions
I’m OK - I’m OK -
Positive You’re not You’re OK
OK
Attitude
toward
I’m not OK - I’m not OK -
Oneself You’re not You’re OK
Negative OK

Negative Positive
Attitude toward
Others
Total Learning Experience

EMOTIONAL INTELLIGENCE

KNOWLDEGE
INFORMATION

SKILL

COMPETENCE

SUCCESSFUL CAREER
• Without clarity, heaven would crack.
Without stability, the earth would quake.
Without divinity, spirits would dissipate.
Without fertility, the valleys would be barren.
Without life and growth, creatures would die off.
Without leadership, kings and nobles would fall.

Therefore those who desire most spend most.

Those who hoard most lose most.
Those who are contented are not disappointed.
Those who know when to stop prevent danger.
Thus they can long endure.
 Positive Thinking
• Count your garden by the flowers, never by the
leaves that fell.
• Count your days by golden/shining hours, don’t
remember clouds at all.
• Count your nights by stars, not shadows.
• Count your lives by smiles and not by tears.
• Count your age by friends and not by foes.
 IT’S GREAT TO BE POSITIVE
• If you cannot smile, do not frown
• If you cannot like do not dislike
• If you cannot honour, do not dis-honour
• If you cannot love, do not hate.
• If your want to be only with few, do not distance
others.
• If you want to be ‘YOU’ do not ignore ‘YOU’ in
others.
• If you cannot understand, do not
misunderstand.
Emotional assurance
CONCERN FOR CONCERN
We need to fit into group
 Individually Diverse
Emotionally Integrated
No one is an island
Udaara Charitaanaanthu
Vasudaiva Kutumbakam.
YOU TAKE THE LEAD ……..
Emotional agreement
 TEN THINGS GOD WON'T ASK ON THAT DAY.

1...God won't ask what kind of car you drove.

He'll ask how many people you drove who didn't have transportation.

2..God won't ask the square footage of your house,

He'll ask how many people you welcomed into your home.

3...God won't ask about the clothes you had in your closet,
He'll ask how many you helped to clothe

4...God won't ask what your highest salary was.

He'll ask if you compromised your character to obtain it.

5...God won't ask what your job title was

He'll ask if you performed your job to the best of your ability.

6.! .God won't ask how many friends you had.

He'll ask how many people to whom you were a friend.

7..God won't ask in what neighborhood you lived,

He'll ask how you treated your neighbors.

8...God won't ask about the color of your skin,

He'll ask about the content of your character.

9...God won't ask why it took you so long to seek Salvation.

He'll lovingly take you to your mansion in heaven, and not to the gates of Hell.

10...God won't have to ask how many people you forwarded this to,
He already knows whether or not you are ashamed to share this information with your friends
 Knowledge and common sense

• Hi Book smart Global smart

knowledge

Gate keeper street smart

• Lo hi

• COMMON SENSE
Knowledge and common sense

• Hi interdependent Dependable.

knowledge

dependent independent

• Lo hi

• COMMON SENSE
Knowledge and common sense

• Hi Problem identifier Problem preventer

knowledge

Problem creator problem solver

• Lo hi

• COMMON SENSE
PROFESSIONALISM

behavior

skills
Never overstep
• Velocity not speed matter.
• Overconfidence ??
• Fit the shoe to leg ??
 Values and Employability
• Employability is making a career and not just
getting a job. One could get a job, with formal
education, but making a career need values
systems and character.
• Values are the emotional rules that govern people’s
attitudes and behaviors.
• Values establish boundaries that influence how an
organization fulfills its mission.
• Values are deep-rooted beliefs we have about the world
and how it operates.
• Values determine quality.
• Values provide a strong framework for making choices and
decisions
• Values are non-negotiable, the principles we stand for.
 Value system also helps us to establish:

• - Synergy of core competence – SANKHYA YOGA

• - Synergy of processes and actions, - KARMA
YOGA
• - Synergy of knowledge – GNYAANA YOGA.
• - Synergy of expertise and innovation –
VIGNYANA YOGA.
• Competition has been transformed into co-optition,
that is cooperative competition, one of
interdependence.
• Future the concept of co-optition will be co-
creation.
• Factors of success in the millennium will be value
based professionalism acquired through:
• • Constancy of purpose.
• • Professional integrity and commitment.
• • Focus and continual improvement.
• • Continual self improvement
• • Servant leadership
 Top five items on the recruiters' lists: Most
Attractive MBA Skills

1) Ability to think analytically

2) Ability to think strategically
3) Quantitative skills
4) Leadership skills
5) Oral communication skills
Skills That Should Be Improved
a. People management skills
b. Leadership skills
c. Ability to make decisions with imperfect information
d. Interpersonal skills
e. Written communication skills
 What Corporate Recruiters Look for in
MBA Hires ?
1) Cultural fit with the company
2) Proven ability to perform
3) Strong "soft" skills, including communication and
interpersonal skills
4) Strong "hard" skills, including quantitative knowledge and
5) Technical skills acquired in the mba program
6) Specific background (e.g. Engineering, science, liberal arts)
7) MBA functional area/concentration of study - evidence of
adaptability
Top three barriers they cite have to do with the
inaccurate assumptions of MBAs:
a. Unrealistic salary expectations
b. Unrealistic job expectations
c. Unrealistic view of advancement opportunities
 STUDENT AS A BRAND:
not as a product.

1 Physique FORCE
VITALITY,DRIVE, 24X7 2 MESSAGE POWER -
COMMUNICATION, INSPIRTION

3 IMPACT POWER-
1. ETHICS & BRAND INNOVATE,
PRISM CONCEPTUAL,
VALUES MODEL, MENTOR,
5.FUTURISTIC POWER – 4 NETWORKING
VISIONERY, POWER- SOCIAL SKILLS,
INTELLECTUAL
FUTURES EI, CO-OPTITION.
YOU ARE IMPORTANT TO YOU BUT OTHERS ARE
EQUALLY IMPORTANT.

• You want to be a flower?

• You want to be a diamond?

•Decide today……….
Kal Ho Na Ho!!!
THANK YOU
NAMASTHE.