MBA Strategic Management PPT Definition and Importance of Strategic Management Levels of Strategy: Corporate, Business, Functional The Strategic Management Process

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STRATEGIC MANAGEMENT
MBA SEM III-SC301
Objectives:
1 To expose participants to various perspectives
and concepts in the field of Strategic
Management
2 To help participants develop skills for applying
these concepts to the solution of business
problems
3 To help students master the analytical tools of
strategic management.
UNIT 1
1 .1 Understanding Strategy:
Concept of strategy, Corporate, Business and Functional Levels of
Strategy.
1.2 Introduction to Strategic Management:
Meaning and Characteristics of strategic management, strategic
management Vs. operational management.
1.3 Four Phases in Strategic Management Process:
Stakeholders in business and their roles in strategic
management.
•
1.4 Contd
1.4 Hierarchy of Strategic Intent:
Meaning & attributes of strategic intent,
Meaning of Vision, Process of envisioning,
Meaning of mission, difference between Vision Mission,
Characteristics of good mission statements,
Business definition using Abell’s three dimensions,
Objectives and goals, Linking objectives to mission & vision.
Critical success factors (CSF), Key Performance Indicators
(KPI),Key Result Areas (KRA).
1.5 Analyzing Company’s External Environment:
Environmental appraisal Scenario planning –
Preparing an Environmental Threat and
Opportunity Profile (ETOP). Analyzing Industry
Environment: Industry Analysis - Porter’s Five
Forces Model of competition, Entry & Exit
Barriers, Strategic Group analysis.
1.1
Concept of ‘Strategy’
“It is the determination of long term goals and
objectives of the organization and the adoption
of the course of action with appropriate
allocation of resources for achieving targets”.
Examples:
i)Tata Motors-Entry in to Passenger Cars along with
Trucks Division(1998)
ii)Bajaj Auto – Shift from Scooters to Motor
Cycles(2003)
1.1
Types of Strategies
1 Intended Strategy- Entrepreneurship, Product,
Process,Business Models
2 Emergent Strategy: Which Strategy to adopt
for current and futuristic business situations
3.Competitive Strategy: Market Share, Changing
Technology –Competition Severity

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1.1
• Levels of Strategies
• Corporate Level Corporate
• Business Level
• Functional Level
• Example Business
Tata Motors Function
Corporate Level :Corporate Office Mumbai
Business Level :Truck Division and Car Division Pune
Functional level : R&D, Mfg,Marketing,Finance Etc.
1.2
Characteristics of Strategic Management
1 Strategic Management is a well considered planned and
organized approach to Business Management
2.Strategic Essentials
i)Vision ii) Mission and iii) Objectives
are essential elements in Strategic Management
3.SM is based on Systems approach (Input-Process-Output)
4.SM is normally a long term futuristic approach
5.SM is a dynamic and flexible Process needs continuous
review
6. Effective Implementation/Execution is the Essence of SM
1.2 Contd
• Strategic Management Vs Operational Management
SM OM
1 Is long term Management 1.Day to day Management
2 Is Planned and Executed 2 is executed by functional
by Sr. Executives/Board level Executives/Operational
level
3. Based on Future plans 3.Based on regular Schedules
4.Calls for thorough Study 4. Based on targets setout
and evaluation
5.Needs Planning for resources 5.Base on existing resources
and Restructuring
1.3 4 phases of Strategic Management
• The 4 phases of SM are
1.Strategy Formulation
2.Strategy Choice
3. Strategy Implementation/Execution
4. Strategy Evaluation and Control
4 Phases of SM
1.Strategy Formulation
i) Business Environment ii) Vision/Mission/Objective iii) CSFs& Business
Drivers Strategic Management
2 Strategy Choice 3.Strategy implementation
Strategic Options/Choice Restructuring&Resource Allocation
4. Strategy Evaluation &Control – Momentum & Leap Control
1.3 contd--
Stake holders in business
Any person or entity which has direct or indirect
interests in an organization is a STAKE HOLDER of
the Organization
There are basically 2 types of Stake Holders
1.External Stake Holders : PEST
Politics,Economy,Society and Technology
2.Internal Stake Holders:
Promoters,Financiers,Investers,Employees,Suppliers
,Customers.Competitors

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1.3 Contd
Roles of Stake Holders in Business
A. Roles of External Stake Holders: PEST
Politics :Policy on Industrialization, Product ,process and locational
supports, Budgetary provisions, Interest rates and Taxation ,
International Trade Barriers Etc
Economy: Availability of funds,GDP/GNP,Exchange rates, Insurance
and financial Security Etc
Society: Levels of Education availability of skilled labor,
Infrastructural facilities, CSR provisions,Tradeunionism and local
customs/culture
Technology: Access and affordability,Added value,Competitive
advantage, Reskill and up skill issues
1.3 Contd.
Roles of Internal Stake Holders
1 Promoters: Business Accumen, Intent ,Vision,Mission,
business ethics,values, cultural issues,Risk taking Capacity
and financial credibility,family business issues, Interventions
in day to day business,etc
2. Financiers/Investers/Share Holders: Credit and Recovery
policies,NPA s and adherence to Central bank
guidelines,PSUs Vs Private Vs Cooperative Banks,VC
s,Institutional Investers,share holders
3.Employees:
Skills,Capabilities,Loyalty,Reliability,Promotability,Risk
taking capability, Culture character and Team work
1.4 Heirarchy of Strategic Intent
• Strategic intent is the term used to describe the
aspirational plans, overarching purpose or
intended direction needed to reach an
organizational vision.
• Beneficial change results from the strategic
intent, ambitions and needs of an organisation.
• The hierarchy of strategic intent covers the vision
and mission, business definition and the goals
and objectives.
•
HEIRARCHY
1.SRATEGIC INTENT/PURPOSE
2.STRATEGIC VISION
3.STRATEGIC MISSION
4.STRATEGIC OBJECTIVES
VISION
What is a VISION of an organization?
• VISION
• A vision statement describes what an
organization desires to achieve in the long-run,
generally in a time frame of five to ten years, or
sometimes even longer. It depicts a vision of what
the company will look like in the future and sets a
defined direction for the planning and execution
of Corporate Level Strategies
Characteristics of
Good Vision Statement
1. Forward Looking
2. Motivating and inspirational
3. Reflective of a company’s culture and core values
4. Aimed at bringing benefits and improvements to the
organization in the future
5. Defines a company’s reason for existence and where it is
heading

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Examples of Vision Statements
• MICROSOFT
”To Create Local Opportunity , growth and impact in every community and country around
the world”
• TATA Group
“We will be bold and agile, courageously taking on challenges, using deep customer insight to
develop innovative solutions. We will invest in our people and partners, enable continuous
learning, and build caring and collaborative relationships based on trust and mutual respect”
• INFOSYS
"To be a globally respected corporation that provides best-of-breed business solutions,
leveraging technology, delivered by best-in-class people”
• ASM GROUP
• To be a World Center of Learning that excels in Management and Information Technology,
Education, Research, Training, and Consultancy”
•
•
•
MISSION
• What is the MISSION of an organization?
• A Mission statement is a concise explanation
of the organization's reason for existence. It
describes the organization's purpose and its
overall intention
• The Mission statement supports the vision
and serves to communicate purpose and
direction to employees, customers, vendors
and other stakeholders
Characteristics of
Good Mission Statement
1.Keep it short. - Consider long term
applicability
2 Be specific and realistic on your target
customers, employees and potential business
investors
Examples of ‘Mission’ Statement
• NETFLIX
“We promise our customers stellar service, our suppliers a valuable partner,
our investors the prospects of sustained profitable growth, and our
employees the assurance of Excellent Career Prospects”
• Bajaj Auto Ltd:
Focus on Value for Money Total elimination of wastes, Continual
Improvement based manufacturing.
• ASM Group
Provide Excellence in Education, Unique Pedagogical Opportunities and in
developing Capable, Committed global managers for all levels of corporate
and society
‘Business’ Definition
Business Definition Using Derek Abell’s 3D Model
1.Customer needs
In the Abell Model all customer needs that are relevant to the company
are identified and listed. These customer needs are determined on the
basis of the product as a result of which a link is made to customer
benefits.
• Example: A software manufacturer responds to the needs of the customer
by only delivering packages that can be installed by laypeople very easily.
In addition, they offer virus free software and the possibility to clean up
the software on a monthly basis. They also provide clear manuals and a
telephone helpline. (user friendly)
Abell’s Model contd…
• 2. Technologies
• The term ‘technologies’ should be interpreted broadly. In addition to technologies
that are used to create a product, there are also technologies that are used to put
a product on the market. Which marketing campaign must be used and in which
way is the market research on a product carried out?
• Example: A software manufacturer uses the latest technologies in his software
products. In addition, the manufacturer offers support to customers by means of a
24-hour helpdesk and he guarantees the best possible information provision.
• 3. Customer groups / Buyers
• Marketing is all about buyers. Without buyers there would not be a market. Each
organization wants to get down to the core of the buyers and therefore
customer segmentation is very important. By having a thorough knowledge of the
various target groups, an organization can make targeted product offers.
• Example: A software manufacturer delivers products to B2B and B2C customers.
The manufacturer reaches these groups by deploying their own Account
Managers, distributive trade, retail trade and trade associations
•
•
•
•
•

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Organizational ‘Goals and Objectives’
• These are Organizational strategies and action plans
• Goals and objectives are statements of what you want your
small business to accomplish.
• Goals are usually set first, followed by objectives that help
you measure your progress toward those goals.
• After establishing your goals and objectives, determine the
specific actions and steps required to reach them. These
are your company's strategies and action plans
Critical Success Factor CSFs and KRAs
• Critical success factor (CSF)
• Is a management term for an element that is
necessary for an organization or project to achieve its
mission. To achieve their goals they need to be aware
of each key success factor (KSF)
• Key Result Area(KRA).
• The Aspects or Areas in Which the Objectives/Targets
are set are known as Ker Result Areas
• Key Performance Indicators(KPIs) Based on the KRAs
the Areas In Which specific Performance of
Employees/Executives is Measured are the Key
Performance Indicators
1.5
Analyzing Company’s External Environment
• Definition of Business Environment:
• Every Organization exists and has to operate in
its relevant Business Environment consisting of
its major Stake Holders who have Interest and
also can influence the Organizational Strategic
decision making process. These Stake holders
formulate the Organizational relevant business
Environment
• There basically 2 major Segments in a Business
Environment
1.5
1.The External Environment :
Elements of External Environment (PESTEL)
1.Politics, Politics
2.Economy, External
3.Society, (PESTEL) Internal
4.Technology, Finance
5.Eletronics Process
2.The Internal Environment Profits
Elements of Internal Environment
1.The Promoters,
2. The Financiers including Share holders,
3.collaborators,
4.Suppliers,
5.Employees.Customers,
6.Competitors
•
1.5-Analysing Companies External Environment
• Environmental Scanning/Appraisal
1.5 Contd------
Scenario Planning
• Also known as scenario thinking or scenario analysis, is
a strategic planning method that some organizations use to
make flexible long-term plans
• ETOP Environmental Threat and Opportunity Profile
• Threats : Market situation,Finance situation,migrant
labor,unemployment,health and safety(pandemic),
education,Economic depression across the globe,
• Opportunities : Online Marketing,Online Education,Industry
4.0(AI,ML,Robotics),Diversification,Agro based Industries

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1.5Scenario Planning 1.5 ‘ETOP’ PROFILE
Porter’s 5forces Model of Competition Entry and Exit Barriers to Business
• Entry barrier are any type of factor that prevents entrants
from competing in an industry. Exit barriers are any type of
factor that keep companies competing in a business, even
though they might be earning low or even negative profits.
Entry barrier are any type of factor that prevents entrants
from competing in an industry.
• Exit barriers are any type of factor that keep companies
competing in a business, even though they might be
earning low or even negative profits. Understanding entry
and exit barriers can help in understanding industry
attractiveness (profitability and pricing structure) as well as
in developing actions to raise or lower the barriers, relative
to the company’s interests.
Entry and Exit barriers to business Strategic Gap Analysis
• What Is Strategic Gap Analysis?
Strategic gap analysis is a business management technique that
requires an evaluation of the difference between a business
endeavor's best possible outcome and the actual outcome. It includes
recommendations on steps that can be taken to close the gap
.
• Strategic gap Analysis aims to determine what specific steps a company
can take to achieve a particular goal. A range of factors including the
time frame, management performance, and budget constraints are
looked at critically in order to identify shortcomings.
• The analysis should be followed by an implementation plan.
Target
Cost P Strategic Gap
Quality Actual P-Performance
Delivery T T-Time

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Assignment No 1
(Unit no 1)
• Q1What do you understand by the term Strategy? What are the
salient features and characteristics of Strategic Management?
Compare Strategic Management with Operational Management
• Q2 Explain the 4 phases in Strategic Management .Explain the
concept of Stake holders in Business and their major roles and
Influence on Strategic decision making in the organization(Both
Internal and External Stake holders)
• Q3.Explain the concept and implications of VISION,MISSION
,OBJECTIVES AND GOALS in a Strategically Managed Organization.
Give examples of Vision and Mission Statements of 2 major
Organizations in India
• Q4. Explain in details the Concepts and implications of Porter’s 5
forces for Industry Competition
LASTDATE of Submission 15-12-2021
UNIT 2
Analyzing Company’s Internal Environment
2.1 Resource based View of a Firm
Meaning:
This is a Strategy adopted by quite a few Organizations to
constantly focus on the internal resources of an organization and
their strengths to achieve Competitive advantage for the firm
rather than being concerned of external parameters in the
environment
Types of Company Resources:
1.Financial Resources Reserves, Credit facilities,Non core
assets, Crown jewels
2. Technical Resources Plant and Machinery,trained and skilled
labour Experts,Innovation Technologists and labs(R&D)
3.Space/landed property Unused Space, Released space due to
Process re engineering,
4.Existing Vendors/Suppliers Out sourcing possibilities
2.1
• Tangible assets . These are physical things - for example, property,
land, products and capital. These are resources which can generally
be bought easily on the market and thus offer little competitive
advantage, as other organisations can also acquire identical assets
quickly if they should like.
• Intangible assets . This refers to items and concepts that have no
physical value but can still claim to be owned by the organization.
This may refer to any reputation, trademarks or intellectual
property which the organization may possess. Some of these - e.g.
reputation - are built up over a significant period of time, and is
something which other competitors or comparable organizations
cannot buy on the market. These will likely stay within the
organization and are their main source of competitive advantage.
2.1
• Heterogenous . This first major assumption is that resources, skills and capabilities
must vary significantly from one organization to another. If these organizations had
the exact same set of resources and individuals, they would not be able to employ
varying strategies in order to compete with one another, as other organizations
would be able to follow them step-by-step (known as "perfect competition").
Perfect competition does not exist in the real world - companies may be exposed
to the exact same competitive and external forces, but they are still able to
formulate different strategies to compete with one another. this is due to the
varying values of their resources and skills.
• Immobile . The second assumption of RBV is that resources are immobile, and
thus unable to move freely from organization to organization (e.g. employee
movement), at least over the short-term. Due to this, organizations are unable to
quickly replicate the resources of rival organizations and therefore implement the
same strategies. Intangible assets - knowledge, processes, intellectual property,
etc. - are more likely to be 100% immobile than are tangible assets
2.1Analyzing Company Resources VRIO Frame Work
2.1Competitive Positioning for Companies
• Price positioning
• Quality positioning
• Innovation positioning
• Service positioning
• Benefit positioning
• Tailored positioning
•

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2.1 Competencies of firms
• Competence is the set of demonstrable
characteristics and skills that enable, and
improve the efficiency or performance of a
job.
2.1 Core Competence
• What is Core Competence?
• It can be defined as "a harmonized combination of
multiple resources and skills that distinguish a firm in
the marketplace" and therefore are the foundation of
companies' competitiveness
• Core Competence implies a pool of exceptional skills,
strategies, moves or technology, that demarcates
between a leader and an average player, in the
industry. It is the vital source of competitive advantage,
for a firm over its competitors, which leads to
distinctive capabilities or excellence.
2.1Characteristics of Core Competencies
• The characteristics of core competencies are as follows:
• They provide a set of unifying Integrating/leveraging
principles for the organization and they are essential in all
strategies.
• They provide access to a variety of markets. Creative
competence
• They are critical in producing end products – Provide the
unique finishing touch
• They are rare or difficult to imitate. Result in Product or
process design patents Help maintain Market leadership
2.1 ‘Distinctive Competence’ and ‘Competitive
Advantage’
• A distinctive competence
is an organization's strengths or qualities including skills,
technologies, or resources that distinguish it from competitors to
provide superior and unique customer value and is difficult to
imitate-Essential for Continued success and winning edge.
Examples :Tatas and Mahindras Product range, Mercedez Quality and
performance.
• Competitive Advantage
• In business, a competitive advantage is the attribute that allows an
organization to ‘Market leadership &Outperform its Competitors’.
• A competitive advantage may include access to natural resource,
such as high-grade ores or a low-cost , highly skilled labor,
geographic location, high entry barriers, and access to new
technology.
• Examples: Jio, Walmart, Tesla,
2.1 Competitive Parity and Its Disadvantages
• What is Competitive parity?
A term used to describe a method of allocating a Capital Expenditure
budget comparing with competitors for similar activities.Competitive
parity spending is a defensive strategy that can help a business protect its
brand or product's competitive position in the marketplace without
overspending. Also called defensive budgeting.
Examples: Product Features,Product promotional activities ( Tata
Ace,Mahindra Maxima,Mobile phone features, Exhibition
stalls.Competitive pricing
Disadvantages of Competitive parity.
is detrimental to Distinctive competence, While this may reduce business
risks it may promote risk averseness and Curtail Innovation may lead to
cartelling.
Examples.All hatch backs look similar, All Lap top Models appear Similar,All
Aeoroplanes Look similar All apparel look similar.
2.1Competitive Benchmarking
• Competitive benchmarking
• is the process of comparing your company and its
activities against a number of competitors using a set
collection of metrics. This is used to measure the
performance of a company and compare it to others
over time for improvement plans.
• Examples
• Cost Benchmarking:Project Cost,Product Cost,Cost of
wages and salaries,Cost of Logistics
• Quality Bench marking,Service bench Marking,Bench
marking HR,Marketing,Customer service functions with
relevant competitors.

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2.2
Value Chain Analysis-using M.Porter’s Model
What is Value chain analysis?
• Is a strategy tool used to analyse firm’s Internal
activities.(Finance/Costs,Product& Process
Design,Quality Assurance,Productivity Etc
• Its goal is to recognize, which activities are the
most valuable (i.e. are the source of cost or
differentiation advantage) to the firm
• Help decide which areas/activities need to be
improved to provide competitive advantage.
2.2 Michel Porter’s Model
2.2 Contd….. 2.2Contd…
2.2 Contd… 2.2Contd…..

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2.3 Organisational Capability (OCP)And
Strategic Advantage Profile(SAP)
• Organisational Capability Profile Strategic Advantage Profile
Finance
100%
100
• Sustainability Technology
Strategic Gap
ProjectMgt HR
HR
Innovation Marketing
Supply Chain
2.3 contd….
Strategic Stretch, Fit and Leveraging
1.Strategic Stretch is the process of innovation and development involved in
finding new opportunities and creating a competitive advantage from an
organization's resources and competencies. The difference between
the strategic Advantage Status and the Organizations available capability
Status is called Strategic stretch (SAP and OCP)
• Stretch is a normal characteristic of High Performance Culture
Organisations (HPC)-All MNCs
Examples: Whirlpool GNF Project, M&M Scorpio Project, ASM’s Shift over to
online Lecture mode, Development of Vaccine for COVID 19,
2.Strategic Fit Strategic fit expresses the degree to which an organization is
matching its resources and capabilities with the opportunities in the
external environment. The matching takes place through strategy and it is
therefore vital that the company has the actual resources and capabilities
to execute and support the strategy.(Reducing the Strategic Gap)
Examples: Tata Ace, Reliance Fresh/Digital,Amazon Online,
2.3 Contd…
• Strategic Resource Leveraging
The concept of leveraging basically taking help and
support of all resources that are available to
achieve new or additionalobjectives(Optimization
of use of resources). That is, how do you use
existing capacities within an organization to
achieve new output and eventually outcomes. In
a way, leveraging can be looked at one of the
strategies that can be employed to improve
efficiency without adding costs of additional
investments
2.3 Contd…..
• Strategic Resources
• Concentrating : Specific Resources Concentrated
at one Location eg: Tata Group Robotics Center
• Accumulating : Carry Inventory of Resources
• Eg, Tata Growth Center
• Complementing: Leveraging Complementing Resources
Eg,Tata Tool Room –Tata PVBU Body shop
• Conserving: Conserving Rare Resources
• Eg,Tata Archives
• Recovering: Recovery of residual Value
• Eg, Tata Motors & Tata Foundry (Sheet Metal Scrap)
2.4 Business Portfolio Analysis
• What is Port Folio Analysis?
• When a company markets a range of different product or services it is required to conduct portfolio
analysis periodically. In a Multi Product Multi division Multi location Group of Companies like Tatas
,Birlas,Mahindras, Bajaj, and many more it is necessary conduct periodic Port Folio Analysis of
Divisions, Locational units, Functions,Etc
• This means to analyze each product separately in terms of profitability, contribution to the
company’s income and growth potential. This analysis facilitates the identification of products that
are not profitable at all or play poorly within the group.
• The products are categorized by pre-defined criteria such as sales value, market share, gross
profitability, contribution margin and life cycle,market attractiveness etc. The results could clearly
point to products that be taken out of the market or simply receive fewer resources. It might also
indicate that the company must increase its investments and efforts to some star products that
have a higher potential.
• The analysis is made to improve the portfolio’s performance since the ultimate objective is
maximizing profit for shareholders.
2.4 Contd…..
• Port folio analysis can be done of all business
divisions in a group of Industries, all products, all
functions, supply chain elements, market
segments, competitor comparisons and bench
marking exercises.
• PA helps in making strategic decisions and root
cause analysis,Business Process Reengineering
etc.Also helps in Mergers and acquisitions,make
or buy decisions,collaborations and contracts
• PA is an essential tool for start ups and Investers

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2.4 Contd…
• BCG Matrix (Boston Consulting Group)
• The Boston Consulting group's product portfolio matrix (BCG
matrix) is designed to help with long-term strategic planning, to
help a business consider growth opportunities by reviewing its
portfolio of products to decide where to invest, to discontinue or
develop products. It's also known as the Growth/Share Matrix.
• BCG matrix is a framework created by Boston Consulting Group to
evaluate the strategic position of the business brand portfolio and
its potential. It classifies business portfolio into four categories
based on industry attractiveness (growth rate of that industry)
and competitive position (relative market share). These two
dimensions reveal likely profitability of the business portfolio
2.4 Contd…
2.4 Contd…
• Stars:The business units or products that have the best market share and
generate the most cash are considered stars.. Stars can eventually become
cash cows if they sustain their success until a time when a high growth market
slows down.
• Cash Cows: A cash cow is a market leader that generates more cash than it
consumes. Cash cows are business units or products that have a high market
share but low growth prospects.. Companies are advised to invest in cash cows
to maintain the current level of productivity or to "milk" the gains passively.
• Dogs: , are units or products that have both a low market share and a low
growth rate. They frequently break even, neither earning nor consuming a
great deal of cash. Dogs are generally considered cash traps because
businesses have money tied up in them, even though they are bringing back
basically nothing in return.
•
Question Marks: These parts of a business have high growth prospects but a
low market share., They have the potential to turn into stars in a high growth
market. Companies are advised to invest in question marks if the product has
the potential for growth, or to sell if it does not
2.4 Contd…
• Examples
1.Mahindra &Mahindra 3.Bajaj Auto
Star-Tractors + SUVs Star: Dominator, Triumph
Cows: Bloero+Thar Cows: Pulsor, Discover
Dogs : Mahindra Two Wheelers Dogs: Bajaj Qudricycle,100ccBykes
Question Marks: Question Marks: Electric Mobykes,3 Wheelers
Mahindra America (MANA),
Sassoyong Motors (S Korea)
2.Maruti Suzuki 4.Tata Motors(Divisions)
Star: Brezza,Ertiga Star: Harrier,Hexa,Nexon
Cows: SWIFT,ALTO Cows: Tiago. Tata Ace Mini Truck
Dogs: Minivan,Zen Estillo,Diesel Cars Dogs: Indica, Diesel Cars
Question Marks: Electric Cars(Evs) Question Marks Electric Vehicles
GE NINE (9)CELL MODEL 2.4 Contd…

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2.4 Contd…
• GE 9 Cell Model as Investment Advisor
High High
Invest and Grow
Market
Attractiveness
Wait & watch
Divest
Lequidate&exit
Low
High Market Share Low
GE Nine Cell Model Examples/Exercises
Maruti Suzuki . Tata Motors
i)Swift ii)Alto iii)Brezza iv)Ertiga iv) EV i) TCS ii) Tata Motors(PVBU, CVBU)iii)Tisco
PRODUCTS BUSINESSES
High High
MA GP
Low
Low MS
High ROI
MA=Market Attractiveness GP =Growth Potential ROI = Return on Investment MS=Mkt Share
Assignment Questions for Unit II
Q1 What is Resource based View of a Firm in the context of Analysis of Internal Environment of
an organization? Explain the types and sources of such resources to sustain Competitive
Advantage Position of the company.
Q2 Explain the meaning of Competence and the characteristic features of core Competencies of
a firm. What is Distinctive Competence and Competitive Advantage status of an
organization?
Q3 Explain the concept of Company Value Chains and the important constituents of a company
value chain as per Michel Porter’s Model of Value chains.
Q4 What is an Organizational Capability Profile and how is it different from Company’s Strategic
Advantage Profile explain with a schematic diagram
Q5 Write Short notes on
i) Competitive Parity iii) Competitive Bench Marking
ii) VRIO frame work for competitive Advantage iv) Competitive Disadvantage
Q6.Explain the concept of Business Port Folio Analysis with the help of BCG Matrix and GE Nine
Cell Model give examples using Company’s Product Port folio of (Tata Motors and Maruti
Suzuki)
LAST DATE OF SUBMISSION -07-2021
3.1 Generic Competitive Strategies
Generic Competitive Strategy-
• Meaning
Porter's Generic Competitive Strategies explain the basic strategic approach to the ways of
achieving and sustaining competitive advantage status at the market place
A firm's relative position within its industry determines whether a firm's profitability is above or
below the industry average and its competitive advantage positioning
The fundamental basis of above average profitability in the long run is sustainable competitive
advantage.
There are two basic types of competitive advantage(strategy) a firm can possess:
1.Low cost
2.Differentiation.
3.1 Contd…
The Two basic types of generic competitive strategies combined with the scope of activities for
which a firm seeks to achieve them, lead to Three generic strategies for achieving above
average performance in an industry:
1.Low Cost strategy:
Ability to manage all costs which decide the Selling price of product as the lowest compared
to competition for similar products there by achieve competitive advantage driven by selling
Cost of a product or service
2. Differentiation Strategy :
Ability to manage competitive advantage on comparable products/services by offering
technical superiority and qualitative/performance features including product appeal and
service qualities
3 Focus Strategy.
The focus strategy has two variants- cost focus and differentiation focus. These strategies
can be adopted based on competitive positions as also they can be simultaneously adopted
and implemented
3.1 Contd…

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3.1Contd
• 1. Cost Leadership
• In cost leadership, a firm sets out to become the low cost
producer in its industry. The sources of cost advantage are
varied and depend on the structure of the industry. They
may include the pursuit of economies of scale, proprietary
technology, preferential access to raw materials and other
factors. A low cost producer must find and exploit all
sources of cost advantage. if a firm can achieve and sustain
overall cost leadership, then it will be an above average
performer in its industry, provided it can command prices
at or near the industry average.
3.1Contd…
• 2. Differentiation
In a differentiation strategy a firm seeks to be unique in its industry along some
dimensions that are widely valued by buyers. It selects one or more attributes that
many buyers in an industry perceive as important, and uniquely positions itself to
meet those needs. It is rewarded for its uniqueness with a premium price.
• 3. Focus
The generic strategy of focus rests on the choice of a narrow competitive scope
within an industry. The focuser selects a segment or group of segments in the
industry and tailors its strategy to serving them to the exclusion of others.
The focus strategy has two variants.
(a) In cost focus a firm seeks a cost advantage in its target segment.
(b) differentiation focus a firm seeks differentiation in its target segment.
Both variants of the focus strategy rest on differences between a focuser's target
segment and other segments in the industry. The target segments must either
have buyers with unusual needs
3.1Porter’s Generic Strategies
When to use which strategy?
• How to use Porter’s Generic Strategies ?
• There are many ways to use Porter’s Generic Strategies in your business. They are
strategies that are meant to be present in the overall framework of your entire
business.
• 1. Choose a strategy
• The most important step to consider when you use Porter’s Generic Competitive
Strategies is selecting the appropriate strategy that works for your business.
Consider the strengths of your business and what you’d like the outcome of your
business to be. The best way to choose the right strategy for your business is to:
• Create a Strengths, Weakness, Opportunities, Threats (SWOT) analysis for each of
the three strategies.
• Analyze the industry your business is in by researching other businesses within
your industry. Review the way businesses in your industry remain competitive.
This leads to an understanding of how you should position your business.
• Compare your SWOT to the results from your analysis of the industry.
• Ask key questions. For example, you may ask: How does this strategy help manage
supplier power? Does this strategy assist with the reduction of substitution
threats? In what ways does this strategy help reduce customer power?
3.1Contd…
2. Prioritize
• It may be helpful to write a list of the priorities your business has currently
because you may have to re-assess them depending on which strategy you select.
The GCS will likely influence the daily decisions of your organization and you can
gain an advantage by being prepared to organize your priorities differently. When
you prioritize your company’s business dealings based on the chosen strategy, it
will assist with the overall success of the plan.
3. Consider the five industry forces for Competition (Porter’s 5 forces Model)
• New Entrants
• Buyer power
• Supplier power
• Threat of substitutes
• Rivalry
When you use one of Porter’s Generic Strategies to gain advantage in the
marketplace, these five industry forces will likely change based on your selection
of one of the strategies. Consider your current standings in some of the forces
currently or historically and determine where you want to be and where a strategy
will place your business. Assessing these forces will prepare you to successfully use
Porter’s Generic Strategies within your business.
3.1Contd…
4. Remain firm
• Whether you choose a cost leadership or differentiation strategy with an
industry-wide focus or a specific market segment, it is important to remain
firm in your choices throughout your use of the GCS. for instance,
• if you chose a Cost Leadership approach to apply to the framework of your
business, you would want to take an assertive stance in any aspect of your
company’s operations that deal with cost. Your management must be
extremely effective when pursuing lower costs to gain advantage in the
industry marketplace same applies to your choice of differentiation
Strategies which compels the organization to focus on Technology as the
main driver for competitive advantage
• Examples
1: Cost leadership : Walmart,Reliance Jio
2: Differentiation : Mercedez, Apple computers
3: Focus :Tesla (Differentiation) ,Tata Motors (Cost)
3.2 Grand Strategies
• What are Grand strategies?
Definition:
The Grand Strategies are the corporate level strategies designed to identify
the firm’s choice with respect to the direction it follows to accomplish its set
objectives. Simply, it involves the decision of choosing the long term plans
from the set of available alternatives. The Grand Strategies are also called
as Master Strategies or Corporate Strategies.
• The grand strategies are concerned with the decisions about the allocation and
transfer of resources from one business to the other and managing the business
portfolio efficiently, such that the overall objective of the organization is achieved.
In doing so, a set of alternatives are available to the firm and to decide which one
to choose, the grand strategies help to find an answer to the dilemma.
•

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3.2 Grand Strategies ..Contd
• Types and Stages of Grand Strategies
1.Launch-Observe-Stabilise
2.Growth
3.Consolidation
4.Diversification/Turn Around
5.Divest/Retrench
6.Lequidate/Exit
3.2 Grand Strategies-Concept
Correlation between Choice of Grand Strategies and
Product/Business Life Cycle
3.2 Grand Strategies …Contd
• Stability Strategy
• is a corporate strategy where a company concentrates on maintaining its
current market position. A company that adopts such an approach focuses
on its existing product and market. ... Usually, a company that is satisfied
with its current market share or position uses such a strategy
• The Stability Strategy is adopted when the organization attempts to
maintain its current position and focuses only on the incremental
improvement by merely changing one or more of its business operations
in the perspective of customer groups, customer functions and technology
alternatives, either individually or collectively.
• Generally, the stability strategy is adopted by the firms that are risk
averse, usually the small scale businesses or if the market conditions are
not favorable, and the firm is satisfied with its performance, then it will
not make any significant changes in its business operations. Also, the
firms, which are slow and reluctant to change finds the stability strategy
safe and do not look for any other options.
3.2 Grand Strategies Contd…
Growth Strategies
Growth Strategy' refers to a Strategic Plan formulated and implemented for
expanding a firm's business.
1.Organizations select a growth strategy to increase their profits
2.To increase their market share or sales
3.To increase their scale of operations
4.To reduce the production cost per unit .
The fast expanding economies of today, adoption of growth strategies in business
enterprises is a must for the survival, in the long-run; lest they should be swept
away by environmental influences, especially competition, technology and
governmental regulations.
Major Types of Growth Strategies
1.Internal Growth (Organic Growth)
2.Growthdue to External Resources ( Non Organic Growth)
3.2 Contd…
1. Internal growth strategies-Organic Growth
Strategies
(1) Market Penetration:
Market penetration is a growth strategy, in which a firm tries
to seek a higher volume of sales of present products by
penetrating (or getting deeper), into existing markets through
devices like the following:
(2) Market Development:
This growth strategy, as the name implies, aims at increasing
sales of existing products through l market development, i.e.
exploring new markets for company’s products. For example,
many companies have achieved remarkable growth by
entering into foreign markets; pushing their products I by
changing size, packaging, and brand name etc.
3.2 Contd….
• (3) Product Development:
Product development as a growth strategy implies developing new and improved products
for sale in existing markets; so that people who have otherwise become indifferent to the old
product with passage of time get attracted to the new product because of the charisma
associated with the phenomenon of newness.
Examples: Tatas From Indica to Harrier,Baja from Scooters To Motor Cycles,Mahindra From
Jeeps to Passenger Cars
• (4) Diversification:
Diversification is quite an important growth strategy. As growth entails risk, diversification, as
a growth strategy, implies developing a wider range of products to diffuse risk or to reduce
risk associated with growth.
The fundamentalphilosophy of diversification is presumably contained in an old English
proverb which suggests that one should not keep all one’s eggs in one basket.
• Examples :Tata Passenger Car Unit, Bajaj Fin Services,
Tech Mahindra, Reliance jio

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3.2 Contd…
• Major dimensions of diversification growth strategy are as
follows:
• (a) Internal horizontal diversification (Horizontal Integration)
• Under this type of diversification, new products – whether related or unrelated to
the present business line are developed by the business enterprise on its own.
• Example: Raymond Woolen Mills have added new product, cement to their
existing line of woolen textiles. Similarly, Godrej added refrigerators and later on
detergents to their original product lines of steel safes and locks.
• (b) Vertical diversification (Vertical Integration)
• Vertical diversification maybe backward or forward. In backward vertical
diversification, the aim of a firm is to move backwards in the production process so
that it is able to produce its own raw-materials/basic components. For example, a
TV manufacturer may start producing picture tubes, built-in-voltage stabilizers and
other similar components.
• In forward vertical diversification, the aim of a firm is to move forward towards
distribution process so as to reach the final consumer. For example, many textile
mills like Mafatlal, Reliance, Raymond etc. have set up their own retail distribution
systems
3.2 Contd…
• (c) Concentric diversification:
• In case of market related concentric diversification, new product/service is sold
through existing distribution system. For example, addition of lease-financing for
buying cars to the existing hire-purchase business is market related concentric
diversification.
• Examples: Bajaj Finance, Mahindra Finance, Mahindra First Choice
• In technology related concentric diversification, new products are provided by
using technologies similar to the present product line.
• Example:Tata Passenger Car, Food Specialties Ltd has added ‘Tomato Ketchup’ to
the existing ‘Maggi’ produced by them. Samsung TV-Samsung Mobile
• (d) Conglomerate diversification:
• This growths strategy involves addition of dissimilar new products to the existing
line of business. DCM Ltd. is a good example of conglomerate diversification. There
has been an addition of a wide range of products such as fertilizers, sugar,
chemicals, rayon, trucks etc. to their basic line of textiles. ITC, Godrej, Kirloskar’s
etc. are other examples of conglomerate diversification
3.2 Contd…
• Mergers and Acquisitions(M&As)
• Mergers and acquisitions (M&A) are defined as a part of External Growth
Strategies basically for Creating Competitive Advantage Situation for the
Companies being merged Companies
• Merger is the combination of two companies to form one.
• Acquisitions is when one company is taken over by the other.
• M&A is one of the major aspects of corporate world
• M&A generally given is that two separate companies together create
more value compared to being on an individual stand.
• With the objective of wealth maximization and maintaining Competitive
Advantage, and growth companies keep evaluating different
opportunities through the route of merger or acquisition.
3.2Contd…
Reasons for Mergers and Acquisitions:
• Financial synergy for lower cost of capital
• Improving company’s performance and accelerate growth
• Economies of scale
• Diversification for higher growth products or markets
• To increase market share and positioning giving broader market access
• Strategic realignment and technological change
• Tax considerations
• Under valued target
• Distribution of risk
Examples
Mergers: Sun Pharma & Ranbaxy,Bank Mergers(Corp Bank& United Bank of India and
similar. Vodafone- Idea merger.
Acquistions: Tata Motors& JLR(Ford Motors),Tata (TISCO) & Chorus Steel(UK)
FIAT(ITALY)& CHRYSLER MOTORS(US)
3.2 contd…
• Strategic ‘Takeovers’
• A takeover occurs when one company makes a successful bid to assume control of
or acquire another. Takeovers can be done by purchasing a majority stake in the
target firm. In a takeover, the company making the bid is the acquirer and the
company it wishes to take control of is called the target.
• Takeovers are typically initiated by a larger company seeking to take over a smaller
one. They can be voluntary, meaning they are the result of a mutual decision
between the two companies. In other cases, they may be unwelcome, in which
case the acquirer goes after the target without its knowledge or some times
without its full agreement.
• In corporate finance, there can be a variety of ways for structuring a takeover. An
acquirer may choose to take over controlling Interests of the company’s
outstanding shares, buy the entire company outright, merge an acquired company
to create new synergies, or acquire the company as a subsidiary.
• Examples: Arcelor –Mittal steels, Satyam Computers – Govt –Tech Mahindra
3.2Contd…
• Strategic alliances and Collaborative Partnerships
• Done basically to Achieve and sustain competitive Advantage
• Strategic alliances and collaborative partnerships can be
formed with local companies, but you may opt to select
partners based on other competencies than just geography.
Online tools have made it easier for us to work with anyone,
anywhere, any time or day of the week. They are also well
suited to companies that want to take a "lean start-up"
approach to how they develop new products and services.
• Examples: Tata Motors & FIAT,VSNL -Tata Telecomm,Bajaj Auto-WMDC,

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3.2 Contd…
Retrenchment-Turnaround
• The Turnaround Strategy is a retrenchment strategy followed by an
organization when it feels that the decision made earlier is wrong and
needs to be undone before it damages the profitability of the company.
• Reasons for Retrenchment &Turn around Strategies
• Continuous losses
• Poor management
• Wrong corporate strategies
• Persistent negative cash flows
• High employee attrition rate
• Poor quality of functional management
• Declining market share
• Uncompetitive products and services
• Examples-Restructuring at Mahindra in 1994-Satyam TechMahindra,PSBs
3.2 Contd…
• Out Sourcing Strategies
• Outsourcing is the business practice of hiring a party outside a
company to perform services and create goods that traditionally
were performed in-house by the company's own employees and
staff. Outsourcing is a practice usually undertaken by companies as
a cost-cutting measure. As such, it can affect a wide range of jobs,
ranging from customer support to manufacturing to the back office.
• In addition to cost savings, companies can employ an outsourcing
strategy to better focus on the core aspects of the business.
Outsourcing non-core activities can improve efficiency and
productivity because another entity performs these smaller tasks
better than the firm itself. This strategy may also lead to faster
turnaround times, increased competitiveness within an industry
and the cutting of overall operational costs.
3.2 Contd…
• Divestment & Liquidation Strategies
• Companies may pursue a divestment strategy to refocus on their core
business, in response to the operating environment in their industry or to
release underperforming assets.
• Liquidation involves shutting down a business and selling off or
distributing its assets.
• A liquidation strategy involves selling a company, in its entirety or in parts,
for the value of its assets. Many small business owners exit their
businesses through liquidation. For example, a retailer that suffered a loss
on its business may find no one interested in buying the company as a
going concern. To extract as much value out of the business as possible,
the owner has a liquidation sale and sells all the inventory, fixtures and
equipment before permanently closing the store’s doors.
Assignment for Unit no 3
Types of strategies-Strategy Choice
Assignment 3A
•
• Prof J.A.Kulkarni
Q1. Explain the concept and meaning of Generic Strategies and specifics of
1.Low cost Strategy
2.Differentiation Strategy
3.Focus Strategies
Give examples for each of the above generic Strategies. Also explain as to when to use
which type of Generic Strategy in strategically managed organizations
Q2.Explain with the help of Product life Cycle (PLC) various types of Grand Strategies to be used
by organizations based on the status of their Products Vs Competitive Positioning at market
place( Stabilty,Growth,Consolidation, Divestment,Retrenchment and Liquidation strategies)
Give Examples of Industries/organizations known to you.
Q3 Explain with examples the following types of grand Strategies
1.Mergers,Acquisitions and Takeovers – As Growth strategies
2.Strategic Alliances and Collaborative strategies- for competitive advantage positioning
3. Turn around and Divestment Strategies
Q4 Write Short Notes on
1.Diversification strategies such as horizontal and vertical integration
2.Out Sourcing strategies
Last Date for submission of Assignments---- -07-20201
Assignment 3B
Case Study
“Rise and fall of JET AIRWAYS”
1.Please read the entire Case Study and Try to correlate all concepts you have learnt from Unit
no 1,2&3 of the syllabus on Subject 301 on Strategic Management
2.Identify and narrate incidences and occurences and strategic decisions of use of Generic
Strategy (Low Cost , Differentiation and Focus ) in the Case Study and the consequences of
these decisions on the competitive advantage status of JET Airways
3 Identify the various Grand strategies and decisions taken the Management of JET Airways
from its inception in 1990s.(product and business Life Cycles concepts)
4.Narrate Strategic Initiatives in respect of,
Growth, Acquisitions, Strategic Alliances,Divestments,
Consolidation
Decline
Explain 0bjectives and consequences of implementing such grand strategies by JET Airways
Unit no 4
Strategy Implementation
• Implementing Strategy
• Strategy implementation is the translation of chosen strategy into
organizational action so as to achieve strategic goals and
objectives.
• Strategic implementation is a process that puts plans
and strategies into action to reach desired goals.
• Strategic implementation is critical to a company’s success,
addressing the who, where, when, and how of reaching the
desired goals and objectives. It focuses on the entire organization.

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4.1Strategy Implementation
• Preparatory Process
• Strategy implementation requires the following activities to be undertaken:
• Strategy articulation - Building consensus within the team responsible for delivery
of the strategy about the outcomes to be achieved
• Strategy validation - Engaging with stakeholders and others to confirm strategic
outcomes being pursued are acceptable
• Strategy communication - Convert strategic objectives into clear short-term
operating objectives that can be assigned to groups for delivery
• Strategy monitoring - Monitor the progress of the organization in delivering the
strategic objectives
• Strategy engagement - Managerial interventions designed to ensure organization
successfully achieves chosen strategic outcomes
4.1 Contd…
4.1 Contd… 4.1 Contd…
• Prerequisites of Strategy Implementation
1.Institutionalization of Strategy: First of all the strategy is to be institutionalized, in
the sense that the one who framed it should promote or defend it in front of the
members, because it may be undermined
.
2.Developing proper organizational climate: Organizational climate implies the
components of the internal environment, that includes the cooperation,
development of personnel, the degree of commitment and determination,
efficiency, etc., which converts the purpose into results.
3.Formulation of operating plans: Operating plans refers to the action plans,
decisions and the programs, that take place regularly, in different parts of the
company. If they are framed to indicate the proposed strategic results, they assist
in attaining the objectives of the organization by concentrating on the factors
which are significant.
4.Developing proper organizational structure: Organization structure implies the way
in which different parts of the organization are linked together. It highlights the
relationships between various designations, positions and roles. To implement a
strategy, the structure is to be designed as per the requirements of the strategy.
4.1 Contd…
• Major Barriers to Strategy Implementation
1.Organisational Vision Clarity
• Only 5 to 10% of the employees understand the Organizational Strategy
2. People Barrier
• Only 20-25 % of the employees are sincerely interested in the organizational
Strategy Implementation
3.Management Barrier
• Only 10 to 15% are focused on the strategy Implementation and rest of the
executives spend less than few hours in a month to enable strategy Execution
4.Resource Barriers
• Organizations do not provide priority on essential resources resulting in
unacceptable delays and cost escalations of strategy to be implemented

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4.1 Contd… 4.1 Contd…(Mintzberg’s 5Ps)
4.1 Contd…
4.1 Mc Kinsey’s 7s frame work for strategy
implementation
The three "hard" elements are strategy, structures (such as organization charts
and reporting lines), and systems (such as formal processes and IT systems.)
These are relatively easy to identify, and management can influence them
directly.
The four "soft" elements, on the other hand, can be harder to describe, less
tangible, and more influenced by your company culture. But they're just as
important as the hard elements if the organization is going to be successful.
4.1Mc Kinseys 7s Frame Work (Contd)
• Strategy: this is your organization's plan for building and
maintaining a competitive advantage over its competitors.
• Structure: this how your company is organized (that is, how
departments and teams are structured, including who reports to
whom).
• Systems: the daily activities and procedures that staff use to get the
job done.
• Shared values: these are the core values of the organization, as
shown in its corporate culture and general work ethic. They were
called "superordinate goals" when the model was first developed.
• Style: the style of leadership adopted.
• Staff: the employees and their general capabilities.
• Skills: the actual skills and competencies of the organization's
employees.
4.2
Organization Structure
for Strategy Implementation
• Organizational Design and Organisational Structure
• Organizational design is the process of aligning the structure of
an organization with its objectives, with the ultimate aim of
improving efficiency and effectiveness. Work can be triggered by
the need to improve service delivery or specific business
processes, or as a result of a new mandate.
• Organizational Structure
• A system that outlines how certain activities are
directed/conducted/Coordinated in order to achieve the goals of
an organization. These activities can include rules, roles, and
responsibilities.
• The organizational structure also determines how information flows
between levels within the company

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4.2 Types of Organisational Structures
• Traditional organizational structures –Entrepreneurial Top-Middle-Operational
• ExamplesSMEs
• Functional: Tool Room-Machine Shop- Assembly-Testing-Packing & despatch Etc
• Examples Gabriel India Ltd
• Divisional:Training Division,-MachineToolDivision-GearBoxDivision-Foundry
Division
• Example:TatamotorsLtd
• Matrix - Head Quarters-Zonal Office- Regional-Dual reporting systems
• Whirlpool of India-Whirlpool Singapore-Whirlpool USA
• Flat –Reduced heirarchy, Empowering point of action Board-Management-
Associates Example Bajaj AutoLtd
• Decentralized, -Federal structures each as Independent/responsible business unit
• Example.Mahindra & Mahindra Nasik,MVML, Mahindra.Mahindra Tractors.
4.2Contd…
• Team-based org structures-Cross Functional Teams,
Strategic Resource Leveraging
• Example: Tata Motors,Whirlpool of IndiaSDWT
• Strategic Business Units(SBUs) –Product wise strategically
important focusedUnits
• Examples: Tata Motors PVBU,CVBU
• Cellular &Modular- Product/Process Cells/Modules
• M&M Nasik-Gear Box Cell,Under Body Cell,Recruitment
Cell, Chasis Module,Testing Module
• Net work Structures-Automated, Network controlled
organizations-
• Examples: E Commerce Industries Amazon,Walmart,Flipkart
4.2 Contd…
• What comes first structure or strategy?
• Aligning organizational structure with its Strategy is essential for an organization to
deliver its plans and achieve success.
• Here is how we define:
• Strategy is how your organization goes about its work is its strategy (vs. your
strategic plan document). This includes the plans that set out how your
organization will use its major resources to meet specific goals.
• Structure is the way the pieces of your organization fit together to meet a
common goal. The structure is much more than an organization chart. It is the
people, positions, procedures, processes, culture, technology and related
elements. It defines how all the pieces, parts and processes work together.
• Alignment means that every human, organizational, technical and financial
resource increasingly supports and contributes to the achieving strategy in a
fashion that is: demonstrable, measurable, efficient and effective, and comply
with your principles, policy directives and constraints.
• Workforce is the resources to deliver your plans. It includes staff, partners,
outsourced work, and consultants.
4.2Contd…
‘Matching Organizational Structure to Strategy
There is no one optimal organizational design or structure for a given strategy or type of
organization. What is appropriate for one organization may not be appropriate for a similar
firm.
• The choice of structure must be determined by the firm's strategy.
• All of the basic organizational form have their strategy related strengths and weaknesses,
thus the best organizational arrangement is the one that best fits the firm's situation at the
moment.
The following 5 sequence procedure is a useful guide for fitting structure to strategy:
.1.Pinpoint the key functions and tasks necessary for successful strategy execution.
2.Reflect on how strategy critical functions and organizational units relate to those that are
routine and to those that provide staff support.
3.Make strategy critical business units and functions the main organizational building blocks.
4.Determine the degrees of authority needed to manage each organizational unit bearing in
mind both the benefits and costs of decentralized decision making.
5.Provide for coordination among the various organizational units.
4.2Contd… 4.2 Contd…

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4.2Contd… 4.2Contd…
• Organizational design is the process of aligning
the structure of an organization with its objectives,
with the ultimate aim of improving efficiency and
effectiveness. Work can be triggered by the need to
improve service delivery or specific business processes,
or as a result of a new mandate.
• The environment can be stable, that is, one in which
there is little unpredictable change. Another type
of environment is referred to as changing. A turbulent
environment exists when changes are unexpected and
unpredictable.
4.2 Contd…
Organizational Restructuring
to manage ‘Turbulent Environment’
1.Conduct Quick Environmental Scanning
2.Build fresh/realistic Scenario Plans and prepare fresh ETOP
List Priority Observations
3.Real Options Analysis
i)Options to switch resources
ii)Options to avoid direct impact of turbulence
iii)Options to delay Strategy Execution.
iv)Options to wait and Watch
v)Options to diversify and grow
4.Technology and Product Remapping- Reassessing Technology/Products/Processes
5.Strategic Fore sight-Strategic Thinking-Disruptive Innovations
6.Dynamic Capabilities of the Organization-- Disruptive Innovations-Explorative-Exploitataive Strategies
(ambidexterity)
4.3 Changing Structures &Processes
Re-engineering for Strategy Implementation
Business process reengineering (BPR) involves the examination and redesign
of business processes and workflows in an organization.
Business process is a set of related work activities that are performed by
employees to achieve business goals. Basically, a business process is the
way we perform our work
Business process reengineering is the process of changing the way we do
our work so we do it better to accomplish the goals of our business.
4.3Contd…
• Reengineering is most commonly defined as the
redesign of business processes—and the associated
systems and organizations in business performance
through effective implementation of chosen Strategy.
• Business Process Re-Engineering is a management
approach aiming at improvements by means of
elevating efficiency, the effectiveness of the processes
that exist within and across organizations.”
• Business process re-engineering aims at maximizing
customer value while minimizing the consumption of
resources.
4.3 Contd…
Principles of Business Process Reengineering
1.Organize around outcomes, not tasks.
2.Identify all the organization's processes and prioritize them in order of redesign urgency.
3.Integrate information processing work into the real work that produces the information.
4.Keep it simple-Reduce Business Complexity
5.Adopt Digital Technology tools for Automated Processes and Controls and Achieve and sustain
Competitive Advantage
6.Treat Change as the Only constant and keep innovating and adapting to changing market
forces.BPR is a repeat Process to be super imposed in Strategy Plan on Product and Process
Mapping activities as a Permanent Feature.

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4.3 BPR the 6 Step Process
• Analyze Business Processes. Identify gaps, root causes, strategic disconnects, etc. in the
context of improving organizational effectiveness, operational efficiency and in achieving
organizational strategic objectives.
• Identify and Analyze Improvement Opportunities. Identify, analyze and validate
opportunities to address the gaps and root causes identified during analysis. This step also
includes identifying and validating improvement opportunities that are forward facing – often
strategic transformational opportunities that are not tethered to current state process.
• Design Future State Processes. Select the improvement opportunities identified above that
have the most impact on organizational effectiveness, operational efficiency, and that will
achieve organizational strategic objectives. Make sure to select opportunities for which the
organization has the budget, time, talent, etc. to implement in the project timeframe. Create
a forward-facing future-state map that comprehends the selected opportunities.
• Develop Future State Changes. Frequently overlooked (and a key root cause in failed BPR
initiatives), this is where the above opportunities are operationalized before implementation.
New workflows and procedures need to be designed and communicated, new/enhanced
functionality is developed and tested, etc. Changes and opportunities cannot be
implemented until they are operationalized.
• Implement Future State Changes. Classic implementation based on dependencies among
changes/opportunities, change management, project management, performance monitoring,
etc.
4.3BPR 360 Degree Frame Work
The 6 Step Process
4.3 Six Sigma o
• Six Sigma is a disciplined, data-driven approach and
methodology for eliminating defects (driving
toward six standard deviations between the mean and
the nearest specification limit) in any process – from
manufacturing to Business transactional and from
product to service.3.44defects per Million
• Six Sigma at many organizations simply means a
measure of quality that strives for near perfection. It
can be called “Six Sigma,” or it may have a generic or
customized name for the organization like “Operational
Excellence,” “Zero Defects,” or “Customer Perfection.”
4.3 Six Sigma -Quality Function Deployment
4.3 Six Sigma-DEMAIC Process
• DMAIC is a Quality Improvement and problem-
solving method used to improve business
performance.
• During the DMAIC process, improvement
happens project by project; a “project” can be
best defined as a “problem scheduled for a
solution.” This means management has decided it
is important enough to schedule the resources it
needs to get the problem solved.
4.3 The Six Sigma Process
DMAIC
• DEFINE :The Project objectives/deliverables(Strategic Goals)
• MEASURE: The current status Vs desired level (Strategic gap)
• ANALYSE :The Issues/Problems Involved (Strategic Analysis)
• IMPROVE : Implement Improvements steps(Strategy Implmt)
• CONTROL : Stabilize Improvements (Strategic Control)

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4.3 Contd… 4.3Contd…
• What is Lean Sigma?
• Six Sigma focuses on reducing process variation and enhancing
process control, whereas lean drives out waste (non-value added
processes and procedures) and promotes work standardization and
flow. The distinction between Six Sigma and lean has blurred, with
the term "lean Six Sigma" being used more and more often because
process improvement requires aspects of both approaches to attain
positive results.
• Lean Six Sigma is a fact-based, data-driven philosophy of
improvement that values defect prevention over defect detection.
It drives customer satisfaction and bottom-line results by reducing
variation, waste, and cycle time, while promoting the use of work
standardization and flow, thereby creating a competitive advantage.
It applies anywhere variation and waste exist, and every employee
should be involved.
4.3Contd…
• INTEGRATING LEAN AND SIX SIGMA
• Lean and Six Sigma both provide customers with the best possible quality, cost, delivery, and a
newer attribute, nimbleness. There is a great deal of overlap between the two disciplines; however,
they both approach their common purpose from slightly different angles:
• Lean focuses on waste reduction, whereas Six Sigma emphasizes variation reduction
.
• Lean achieves its goals by using less technical tools such as kaizenworkplace organization, and
visual controls,
• whereas Six Sigma tends to use statistical data analysis design of experiments, and hypothesis
testing.
• Often successful implementations begin with the lean approach, making the workplace as efficient
and effective as possible, reducing waste, and using value stream mapsto improve understanding
and throughput. If process problems remain, more technical Six Sigma statistical tools may then be
applied.
4.4 What is Organizational Culture
The Corporate Culture
• An organization's culture defines the proper way to behave within the
organization. This culture consists of shared beliefs and values established
by leaders and then communicated and reinforced through various
methods, ultimately shaping employee perceptions, behaviors and
understanding.
• Alignment comes when the company’s objectives and its employees’
motivations are all pulling in the same direction. Exceptional organizations
work to build continuous alignment to their vision, purpose, and goals.
• Appreciation can take many forms: a public kudos, a note of thanks, or a
promotion. A culture of appreciation is one in which all team members
frequently provide recognition and thanks for the contributions of others.
• Trust is vital to an organization. With a culture of trust, team members can
express themselves and rely on others to have their back when they try
something new.
•
4.4 Features of Good Organizational Culture
• Performance is key, as great companies create a culture that means business. In these companies,
talented employees motivate each other to excel, and, as shown above, greater profitability and
productivity are the results.
• Resilience is a key quality in highly dynamic environments where change is continuous. A resilient culture
will teach leaders to watch for and respond to change with ease.
• Teamwork encompasses collaboration, communication, and respect between team members.
When everyone on the team supports each other, employees will get more done and feel happier while
doing it.
• Integrity, like trust, is vital to all teams when they rely on each other to make decisions, interpret results,
and form partnerships. Honesty and transparency are critical components of this aspect of culture.
• Innovation leads organizations to get the most out of available technologies, resources, and markets. A
culture of innovation means that you apply creative thinking to all aspects of your business, even your
own cultural initiatives
• Psychological safety provides the support employees need to take risks and provide honest feedback.
Remember that psychological safety starts at the team level, not the individual level, so managers need to
take the lead in creating a safe environment where everyone feels comfortable contributing.
•
4.4 Corporate Culture
“CULTURE EATS STRATEGY FOR BREAK FAST”— M.PORTER
Culture Vs Strategy
• Cultural Integration brings benefits such as enhanced trust and cooperation, fewer
disagreements and more-efficient decision-making
• Culture also provides an informal control mechanism, a strong sense of identification with
the organization and shared understanding among employees about what is important. An
organization's culture defines the proper way to behave within the organization. This culture
consists of shared beliefs and values established by leaders and then communicated and
reinforced through various methods, ultimately shaping employee perceptions, behaviors
and understanding.
• Organizational culture sets the context for everything an enterprise does. Because industries
and situations vary significantly, there is not a one-size-fits-all culture template that meets
the needs of all organizations.
• If an organization's culture is going to improve the organization's overall performance, the
culture must provide a strategic competitive advantage, and beliefs and values must be
widely shared and firmly upheld.

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4.4Contd…
• What are ‘Learning organisations’?
• A learning organization is an organization skilled at creating,
acquiring, and transferring knowledge, and at modifying its
behavior to reflect new knowledge and insights.
• where people continually expand their capacity to create
the results they truly desire, where new and expansive
patterns of thinking are nurtured, where collective
aspiration is set free, and where people are continually
learning how to learn together.”
• Examples :Mahindra& Mahindra(Post BPR-MMS) Whirlpool
of India, Bajaj Auto(post MOEST Implementation)
4.4 Contd…
• Management by Objectives (MBO)
Management by objectives (MBO)
Is a strategic management model that aims to improve the
performance of an organization by clearly objectives that are
agreed to both management and employees.
... The term was first outlined by management guru Peter
Drucker in his 1954
Examples Quality Circles, Kaizen –Continuous Improvement
Groups at Operative levels including TPM and TQM projects
Demings Quality Awards,ISO 9000.QS 2000 etc
Objectives Overall Quality and performance Improvements
4.4 Contd…
• Total Quality Management (TQM)
• A core definition of Total Quality Management (TQM) describes
a management approach to long-term success through customer
satisfaction.
• In a TQM effort, all members of an organization participate in improving
processes, products, services, and the culture in which they work.
• Total Quality Management is defined as a customer-oriented process and
aims for continuous improvement of business operations. It ensures that
all allied works (particularly work of employees) are toward the common
goals of improving product quality or service quality, as well as enhancing
the production process or process of rendering of services. However, the
emphasis is put on fact-based decision making, with the use of
performance metrics to monitor progress.
4.5 Strategy Evaluation
• Strategy evaluation
• Means collecting information about how well the strategic plan is
progressing.
• Strategic Evaluation is defined as the process of determining the
effectiveness of a given strategy in achieving the organizational
objectives and taking corrective action wherever required.
• Strategy evaluation is the last phase of the strategic management
process in which managers try to assure that the strategic choice is
properly implemented and is meeting the objectives of the
organization.
• In fact, in strategy evaluation, managers review or appraise the
progress in the performance related to strategy implementation,
try to find out any deviations of actual performance from the
chosen strategy that has been put into action, and then take
appropriate actions for making the strategy work.
4.5Contd…
Necessity Strategic Evaluation and Control Systems
Strategy evaluation and control systems help managers to find out;
1.Whether the implementers of strategy are making decisions consistent with
the organizational policies;
2.Whether adequate resources have been allocated and they are being used
wisely;
3.Whether the events in the external/Internal environment are, occurring as
anticipated and are accounted for by the strategy Implementation Team
4. Ensure that the strategy-implementers are on the right track. The
evaluation process alerts the implementers to any unexpected events in
the above issues. Thus, they can take corrective action either to get back
to the track or change the track or make changes in other relevant aspects
of strategy.
5.Whether and to what extent the short and Long term Objectives are being
achieved as the Strategy Implementation process is progressing
4.5Contd…
Strategic Control (Strategy LEAP control)
Strategic control focuses on the dual questions of whether:
(1) The strategy is being implemented as planned; and
(2) The results produced by the strategy implentation process are
those intended.
Strategic control is “The critical evaluation of plans, activities, and
results,achieved there by providing information for the future
action”.
There are four types of strategic control:
1.Premise control,
2.Implementation control,
3.Strategic surveillance
4.special alert control

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4.5Contd…
The Four Types of Strategy Control
1.Premise control
i)Enviromental factors (for example, inflation, technology, interest rates, regulation, and
demographic/social changes).
ii) Industry factors (for example, competitors, suppliers, substitutes, and barriers to entry)
2. Implementation Control: Strategic implementation control provides an additional source of
feed forward information. “Implementation control is designed to assess whether the overall
strategy should be changed in light of unfolding events and results associated with
incremental steps and actions that implement the overall strategy.” The two basis types of
implementation control are:
i).Monitoring strategic thrusts
ii).Milestone Reviews- ReviewToll Gates CET-BET
3.Strategic Surveillance: Is designed to monitor a broad range of events inside and outside the
company that are likely to threaten the course of the firm’s strategy.
4.Special Alert Control: Special alert controls are the need to thoroughly, and often rapidly,
reconsider the firm’s basis strategy based on a sudden, unexpected event.
4.5Contd…
• Operational Control (Strategy Momentum
Control)
• Operational control systems are designed to ensure
that day-to-day actions are consistent with established
plans and objectives. It focuses on events in a recent
period.
• Operational control systems are derived from the
requirements of the management control system.
Corrective action is taken where performance does not
meet standards. This action may involve training,
motivation, leadership, discipline, or termination.
4.5Contd…
Evaluation Techniques for Operational Control:
1.Value chain analysis: Firms employ value chain analysis to
identify and evaluate the competitive potential of resources
and capabilities.
2.Quantitative performance measurements: Most firms prepare
formal reports of quantitative performance measurements
(such as sales growth, profit growth, economic value added,
ration analysis etc.)
3.Benchmarking: It is a process of learning how other firms do
exceptionally high-quality things.
4.Key Factor Rating: It is based on a close examination of key
factors affecting performance (financial, marketing,
operations and human resource capabilities) and assessing
overall organisational capability based on the collected
information.
4.5 Balance Score Card for Strategy Evaluation
• A balanced scorecard is a strategic management performance metric used to identify and
improve various internal business functions and their resulting external outcomes.
• Balanced scorecards are used to measure and provide feedback to organizations
Data collection and its accuracy are crucial to providing quantitative results as managers and
executives gather and interpret the information and use it to make better decisions for the
organization.
• The balanced scorecard can provide information about the company as a whole when viewing
company objectives. An organization may use the balanced scorecard model to implement
strategy mapping to see where value is added within an organization. A company also uses a
balanced scorecard to develop strategic initiatives and strategic objectives.
The balanced scorecard involves measuring four main aspects of a business:
• 1.Learning and growth, how effectively employees use the information to convert it to
a competitive advantage over the industry.
• 2.Business processes how well products are manufactured. Operational management is
analyzed to track any gaps, delays, bottlenecks, shortages, or waste.
• 3.Customers, Measure customer satisfaction with quality, price, and availability of products
or services
• 4.Finance. financial metrics may include Funds flow, financial ratios, budget
variances, or income targets.
• Examples:Tata Business Excellence Model(TBEM)-Malcom Balridge Model
4.5 Balanced Score Card-Typical Diagram 4.5 Contd…
• Symptoms Of Malfunctioning of Strategy
• 1) Company is not performing as well as against its close rivals, similar companies or industry
as a whole.
• 2) Company is not performing in terms of stated objectives, return on investment (ROI),
market share, profitability trends, EPS, etc.,
• 3) Corporate culture is not aligned with strategy,
• 4) Implementation of the strategy is slow.
• 5) Organisational conflict and interdepartmental bickering are often symptoms of strategy
malfunction,
• 6) Managerial problems continue despite changes in personnel and if they tend to be issue-
based rather than people-based, their strategies may be inconsistent,
• 7) If success for one organizational department means failure for another department then it
is a symptom of strategy malfunction,
• 8) If policy problems and issues continue to be brought to the top for resolution, then the
strategy may be malfunctioning,
• 9) Overtaxing of available resources is a symptom of strategy malfunction,
• 10) Degree of risk is high as compared to rewards,
• 11) The strategy is inconsistent with the changing environment,
• 12) If strategy implementation does not give due cognizance to time horizon, then it is a
symptom of strategy malfunction.

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4.5Contd…
Strategy Failures
Why strategies Fail?
12 reasons why your business strategies fail:
1.An overwhelming strategic plan: Managers don’t know where to begin. The
goals and initiatives generated in the strategic planning process are too
numerous because the leadership team failed to make tough choices to
eliminate non-critical actions.
2.Unrealistic goals: While strategic objectives may stretch the organization,
they still must be realistic. If people feel the goals are unachievable they
may not try.
3.Lack of leadership: This issue is at multiple levels. It is not only about
ensuring that each manager at each level is clear about the
accountabilities and authorities they have for strategy implementation, it
is about all managers understanding their role as a people manager
4.5Contd…
4.Focus on structural changes: Many organizations overly rely on structural
change to execute strategy. While changing structure has its place, it is
only part of the requirement for successful strategy implementation.
5.Unclear accountability: If people are not clear of their role and their
accountabilities for strategy delivery, or are not held accountable for their
work, it’ll be business as usual for all but a few frustrated individuals. Clear
accountability helps drive change.
6.Lack of empowerment: Accountability needs matching authority to deliver
outcomes. It also needs the tools and resources necessary to achieve
strategic initiatives.
7.Lack of communication: Communication helps with organizational
alignment. If a plan doesn’t get communicated to employees, they won’t
understand their role or how they contribute to achieving the
organization’s strategy.
8.Getting caught up in the day-to-day: Managers are often consumed by
daily operational problems and lose sight of long-term goals. Unless there
is an organizational focus on strategy implementation, managers will focus
on their day-to-day work.
4.5Contd…
9.Lack of clarity on actions required: The actions required to
execute the strategy are not specified or clearly defined.
10.Inadequate monitoring: Managers are unable to assess if
the strategy is being achieved. Without clear information
on how and why performance is falling short, it is virtually
impossible to take appropriate action.
11.No progress reporting: There’s no method to track
progress, or the plan only measures what’s easy, not what’s
important, so no one feels any forward momentum.
12.Lack of alignment: The organization has not been aligned
for strategy implementation. Organizational silos and
culture blocks execution and/or organizational processes
don’t support strategic requirements.
Assignment no 4
Unit 4 Strategy Implementation
• Note : Answer any 2 Questions from each Section A & B
SECTION- A
Q1 What Is a Strategic Plan? Explain basic components of a Strategy Implementation with
schematic diagram. What are the possible barriers to Strategy Implementation ?
Q2.Explain the role and necessity of Organizational Structure as a major aspect for review
for effective Strategy Implementation. Narrate the different types of organizational
structures such as functional. divisional, SBU, and matrix types as relevant to Strategic
Implementation requirements
Q3. What is your understanding of matching organizational Structure to strategy as a pre
requisite for effective strategy implementation? Explain the essential aspects for
organizational design for turbulent business environment
Q4 Explain the meaning, principles and objectives of Business Process Re
engineering(BPR)as applicable to Strategy Implementation give examples of few Indian
organizations having successfully implanted BPR
Assignment no 4 contd…
SECTION B
Q5. Explain the fundamental concepts of SIX SIGMA as a tool for Overall performance
improvement and the basic elements of DEMAIC steps used for effective implementation of
Six Sigma project (Define,Measuring,Analyzing,Improving and Establishing) also concepts of
Lean sigma
Q6. What do you understand by Corporate Culture which enables transformation to learning
organizations with the help of tools such as MBO(Management by Objectives and TQM (Total
Quality Management)
Q7. Explain the tools of Operational Control and Strategy Control as essential interventions to
evaluate and control strategic deviations/drifts. What are the commonly experienced
symptoms of malfunctioning/ failures of Strategy
Q8. Write short notes on
1. Mintzberg’s 5 Ps
2. Mc Kinsey’s 7S frame Work
3. Balance Score Card for Strategy Evaluation
THE LAST DATE FOR SUBMISSION OF ASSIGNMENT NO4 IS -07-2021
Unit no 5.1
Blue Ocean Strategy
• Blue ocean strategy is the simultaneous pursuit of differentiation
and low cost to open up a new market space and create new
demand. It is about creating and capturing uncontested market
space, thereby making the competition irrelevant. It is based on the
view that market boundaries and industry structure are not a given
and can be reconstructed by the actions and beliefs of industry
players.
• In blue oceans, competition is irrelevant because the rules of the
game are waiting to be set. A blue ocean is an analogy to describe
the wider, deeper potential to be found in unexplored market
space. A blue ocean is vast, deep, and powerful in terms of
profitable growth.
•

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5.1 Contd… 5.1Contd…
5.1Contd…
4 Action Frame work for BlueOcean Strategy
5.1 Contd…
Blue Ocean Strategy Canvas and Value Innovation
• Strategy Canvas is a central diagnostic tool and an action framework that
graphically captures, in one simple picture, the current strategic landscape
and the future prospects for an organization.
The strategy canvas serves two purposes:
1.It captures the current state of play in the known market space, which
allows users to clearly see the factors that an industry competes on and
invests in, what buyers receive, and what the strategic profiles of the
major players are.
2.It propels users to action by reorienting their focus
from competitors to alternatives and
from customers to noncustomers of the industry and allows you to
visualize how a blue ocean strategic move breaks away from the existing
red ocean reality.
5.1Contd…
• Value innovation is a key principle of "blue
ocean strategy,
" A business approach that focuses on creating
new market spaces instead of fighting
competitors existing market share. Instead of
competing for market share, value
innovation is designed to create new markets.
5.1 Value Curves

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5.1 Contd… 5.2 Business Models
What Is a Business Model?
The term business model refers to a company's plan for making
a Profit
Identifies the products or services and the business plans to sell, in
its identified target Market/s, and related costs
Business models are important for both new and established
businesses.
Business models help investors evaluate companies that interest
them.
A business plan is a written document that describes in detail how a
business defines its objectives and how it plans to go about
achieving its goals.
A business plan lays out a written roadmap for the firm from each
of a marketing, financial, and operational standpoint.
5.2 Components of Business Models
• A company’s value proposition composes the core of its business model; it includes everything it
offers its customers in a specific market or segment. This comprises not only the company’s bundles
of products and services but also how the company differentiates itself from its competitors. A
value proposition therefore consists of the full range of tangible and intangible benefits a company
provides to its customers (stakeholders).
• The market participation dimension of a business model has three components. It describes what
specific markets or segments a company chooses to serve, domestically or abroad; what methods
of distribution it uses to reach its customers; and how it promotes and advertises its value
proposition to its target customers.
• The value chain infrastructure dimension of the business model deals with such questions as, what
key internal resources and capabilities has the company created to support the chosen value
proposition and target markets; what partner network has it assembled to support the business
model; and how are these activities organized into an overall, coherent value creation and delivery
model?
• The global management summarizes a company’s choices about a suitable global organizational
structure and management policies. Global organization and management style are closely linked.
In companies that are organized primarily around global product divisions, management is often
highly centralized. In contrast, companies operating with a more geographic organizational
structure are usually managed on a more decentralized basis.
5.2 Contd
The 7 Elements of Developing a Strong Business Model
• Identify your specific Target Markets ...
• Establish business processes. ...
• Record key business resources. ...
• Develop a strong value proposition. ...
• Determine key business partners. ...
• Create a demand generation strategy. ...
• Leave room for innovation.
5.2 Contd
4 Basic types of business models
1.Manufacturer: Products& Services
2.Distributor : Authorized by Company
3.Retailer : Authorized by Distributor/Company
4.Franchise: Extension of Company’s Marketing
52.Contd…
E- Commerce Business Models& strategies
1. B2C – Business to consumer.
B2C businesses sell to their end user. B2C is the most common business
model, so there are many unique approaches under this umbrella
2. B2B – Business to business.
In a B2B business model, a business sells its product or service to another
business. Sometimes the buyer is the end user, but often the buyer resells
to the consumer.
The B2B model generally means a longer sales cycle, but higher order value
and more recurring purchases.
3C2B – Consumer to business.
C2B businesses allow individuals to sell goods and services to companies
4. C2C – Consumer to consumer.
A C2C business connects consumers to exchange goods and services and
typically make their money by charging transaction or listing fees.

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5.2 Contd…
• Internet Strategies for traditional business
• Traditional Business
• The Kirana Stores,Trditional Business and trade-From Product
ideation to Customer satisfaction every activity done manually
through human interactions and physical movements,Cost,
Quality and delivery Managed through Typical Human
Capabilities.Business with compassion and sense of belongingness
• Internet Strategies: Use of Computer(internet) Technology for
Each and every business Activity from Product design to Customer
Experience CAD/CAM/3D Printing/Paperless transactions/Virtual
Meetings Every Decision driven through use of Internet
Technology Minimum Human Contacts,Business With minimum
Compassion and reduced sense of belongingness. More Of
contractual obligations and materialistic behaviors.
5.2 Contd…
5.2 Contd… 5.3 Sustainability & Strategic Management
• What is Business Sustainability?
• sustainability is a business approach to creating long-term
value by taking into consideration how a given organization
operates in the environmental, social and economic
aspects for the business.
• Sustainability is built on the assumption that developing
sustainability strategies foster company longevity.
• A sustainable business, or a green business, is an
enterprise that has minimal negative impact, or potentially
a positive effect, on the global or local environment,
community, society, or economy—a business that strives to
meet the triple bottom line
5.3 Integrating Economic,Social,Environmental
Aspects of Sustainable Business
5.3 Contd…
• Concept of ‘Triple Bottom line’(TBL)- propounded
by late Dr CK Prahlad A global Management thought leader
• People- Society---Social Sustainability
• Planet-Environment-Environmental Sustainability
• Profits-Economics-Economic Sustainability
The Triple Bottom Line is one of the main systems being used by businesses
to assess the profits they are making through their corporate sustainability
solutions. The Triple Bottom Line method insists on companies seeing
beyond the traditional bottom line of business to the profits that your
business makes socially, environmentally, and economically.
Measuring your business using the Triple Bottom Line is one of the best
markers of how sustainable your business is, and how profitable it really is.
•

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5.3 Contd… 5.3 Contd…
Major Threats to Sustainability
The greatest threats to the sustainable development are
• Population growth and urbanization,. Aforestation, disturbance of Ecological balance
•
• Energy generation/ use and resultant Pollution
• Excessive waste generation and the subsequent pollution of soil, air, and water,
transportation in cities.
• Limited supply of resources.(exploitation of natural resourses air,water,earth,space)
• Shortage of Food, Clothing .Education and shelter –Resulting Poverty and Diseases
• Natural Calamities Such as Floods and wild fires and Epidemics and pandemics
• Expansionist and Separatist Fundamentalism/racism
Assignment for Unit no 5 of Sc301-Strategic
Management
Answer any Three(3) Questions
** Last Date For Submission 15-10-2020
Q1.Explain the concept and principles of Blue Ocean strategy and the principle
differences between Red and Blue Ocean Strategy
Q2.Explain the Meaning and your understanding of
• Concept of Value Innovation in Blue Ocean strategy
• Blue Ocean Strategy Canvas
Q3.Explain the importance and essential components of business Model And
business Models for Internet Economy-What is the concept of a virtual Value
Chain
Q4.What are the essential requirements for Traditional Business to sustain during E
commerce Economy
Q5. What are Sustainability concepts for Strategic Business Management How
should businesses Integrate the 3 basic elements of Economy,Environment and
Society
Q6.Explain the underlying Concept of Triple Bottom Line(TBL) and the likely threats
to managing sustainability
Last Date of Submission -07-2021

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