...Management Science I MODULE 9 9.1. Strategy Formulation : An Overview The corporate world is in the process of a global transformation. Mergers, acquisitions, outsourcing and downsizing are becoming common word everywhere. Privatization is allowing free enterprise to take on functions that previously were the domain of government. International boundaries are fading in importance as businesses take on a more global perspective and the technology of information age is telescoping the time it takes to communicate and make decision. Strategic management takes a panoramic view of this changing corporate terrain and attempts to show how large and small firms can be more effective and efficient not only in today's world but tomorrow as well. Strategic management is the set of managerial decisions and action that determines the way for the long-range performance of the company. It includes environmental scanning, strategy formulation, strategy implementation, evaluation and control. It emphasizes the monitoring and evaluation of external opportunities and threats in light of corporation’s strength and weakness. Business policy has a general management orientation and tends primarily to look inward with its concern for properly integrating the corporations many functional activities. But strategic management as a field of study integrates the business policy with the environmental opportunities and threats. Therefore strategic management has tended to replace business policy as...
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...managerial decisions and action that determines the way for the long-range performance of the company. It includes environmental scanning, strategy formulation, strategy implementation, evaluation and control. It emphasizes the monitoring and evaluation of external opportunities and threats in light of corporation’s strength and weakness. Business policy has a general management orientation and tends primarily to look inward with its concern for properly integrating the corporations many functional activities. But strategic management as a field of study integrates the business policy with the environmental opportunities and threats. Therefore strategic management has tended to replace business policy as the preferred name of the field. Indian Institute of Technology Madras Management Science I Prof. M.Thenmozhi Why Strategic Management? Strategic management provides the route map for the firm. It lends a framework, which can ensure that decisions concerning the future are taken in a systematic and purposeful way. Strategic management also serves as a hedge...
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...Nokia SWOT analysis (Barney, 1991). Internal analysis (Resource-based model) Strengths – Having the advanced technology over the competitors in the mobile phone industry – Decentralized company structure, innovative and creative employees and Charismatic strong leader, such as: Jorma Ollila. – The market leadership in the mobile industry. – Strong brand name and company image in the global market – Has its own manufacture and network. – Product innovation. – Economy of scale Weaknesses – Complacency and arrogance. – Few customized, operator-specific handsets. – Few alliances, company sticks to its standing in the market, do not want to cooperate with the operators. External analysis (Environmental models of competitive advantage) Opportunities – The emerging market in developing countries, such as China, India – The emerging market for high-end mobile phone such as business user phone. Threats – Facing more new competitors, especially from Asia. – Stronger buyer power from the network operators. – Lost market share – The market becomes saturatedong competition in mobile industry OPPORTUNITIES LG: its...
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...and Part B will carry 4 questions from each section. INSTRUCTION FOR CANDIDATES Candidates are required to attempt all questions from Part A and 9 questions of Part B out of 12. ______________________________________________________________________ __ Section I MBA Syllabus (August 2005) Page 19 of 45 Definition, nature, scope, and importance of strategy; and strategic management (Business policy). Strategic decision-making. Process of strategic management and levels at which strategy operates. Role of strategists. Defining strategic intent: Vision, Mission, Business definition, Goals and Objectives. Internal Appraisal – The internal environment, organisational capabilities in various functional areas and Strategic Advantage Profile. Methods and techniques used for organisational appraisal (Value chain analysis, Financial and non financial analysis, historical analysis, Industry standards and benchmarking, Balanced scorecard and key factor rating). Identification of Critical Success Factors (CSF). Section II Environmental Appraisal—Concept of environment, components of environment (Economic, legal, social, political and technological). Environmental scanning techniques- ETOP, QUEST and SWOT (TOWS). Corporate level strategies-- Stability, Expansion, Retrenchment and Combination strategies. Corporate restructuring. Concept of Synergy. Business level strategies—Porter’s framework...
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...fulfilling the requirement of this project, we have decided to form a joint venture between a Bangladeshi leather company with an Indian company or a Chinese company. The name of the Bangladeshi leather company is Leatherex Footwear Industries Ltd, which will mainly provide leather and labor in this joint venture because labor cost is low in Bangladesh. The whole manufacturing process will take place in Bangladesh. On the other hand, India and China will mainly provide technology, idea, R&D and special equipment (if required). We have decided to go for joint venture, rather than exporting because, joint venture provides companies with the opportunity to gain new capacity and expertise. It will allow us to enter new geographic markets, that is, India or China and gain new technological knowledge access to greater resources, including technology and sharing of risks with them. China and India is not an easy market to enter, as from geographic point of view, they are vast and also they possess a total different culture. Again, it will be difficult for us to monitor and sustain. So, by joint venture, we will be able to penetrate their market and also to their culture easily and quickly through them as they already have enough knowledge about their market. EXTERNAL ANALYSIS – PESTLE ANALYSIS THE PESTEL ANALYSIS OF INDIA Political: (Stable) After researching the taxation and government policies, it can be said that India is politically...
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...SWOT ANALYSIS A SWOT analysis strives to determine the current strengths and weaknesses within a firm, as well as the opportunities and threats facing the firm (SWOT = strengths, weaknesses, opportunities, threats). A SWOT analysis is a powerful tool to evaluate the current position of the firm within its broader business environment. It is an evaluation undertaken by senior staff or the owner of the firm. It needs to be as honest an appraisal as possible. Environmental factors internal to the company can be classified as strengths or weaknesses, and those external to the company can be classified as opportunities or threats. The Indian Textile industry adds 14% to the industrial production and 8% to the GDP of India. It provides employment to 38 million people and thus, is the second largest employment provider after agriculture. The Indian Apparel & Textile Industry is one of the largest sources of foreign exchange flow into the country with the apparel exports accounting for almost 21% of the total exports of the country INTERNAL FACTORS STRENGTHS : Strengths describe the activities that an organization does well and that set it apart from competitors. It is an inherent capability of the company which it can use to gain strategic advantage over its competitors. Strengths of an export house are as follows: 1) The Latest and best machines: Manufacturing An innovative team under mature infrastructure is the pride of Shahi in fashion industry. They have...
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...years, the strategic decision that Lilly now has to make is how to move forward. The Indian pharmaceutical industry has witnessed some significant changes and it seems that the business goals of both companies have diverged as well. Situation Overview Thus far it appears that Eli Lilly’s decision to enter the Indian market has been a wise one. It has enjoyed a successful partnership with Ranbaxy, which has also allowed its brands to gain recognition within the local market. Considering other metrics, including sales growth, access to new distributors and innovative product development, the JV has proven to be successful as well. Both parties agree that the JV has proven mutually beneficial, however circumstances have changed considerably since the venture was first initiated. Ranbaxy has expanded its own operations internationally and expanded its global reach through various acquisitions. In addition, the business strategies of both firms have taken a divergent direction. Lilly would like to continue to focus on the development of its patented global drugs, through innovation and discovery. On the other hand, Ranbaxy believes that its opportunity lies in offering generic drugs to the local market and increasing its presence abroad. Ranbaxy has signaled an intention to sell its stake in the JV if the opportunity were to arise. External/Industry Analysis The Indian pharmaceutical industry has been known for its lack of patent protection in the past. After signing GATT and...
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...Hero Honda Environmental Analysis Summary of the Hero Honda’s Environmental Analysis, Industry and Competitors. External Environmental Analysis Political: The United Progressive Alliance (UPA) lead by the Indian National Congress (Congress) was re-elected to a second five year term in 2009. The present political scene in India is quite exceptional due to the relatively strong position of the ruling coalition. Economic: India Ranks 11th (nominal) / 4th (PPP) has GDP growth 8.8% (2010, Q1), Inflation (CPI) 8.5% (August 2010) in spite of Global Meltdown and Population below poverty line is deceased to 37% (2010). Socio-cultural: Indians are religion, caste, family centric. Women work in companies but in day shifts only in big cities. Entrepreneurial trait in India is on a rise. Technological: Modern technologies in transport, communication, electricity, infrastructure, quality are available. A very favorable technological scenario. Environmental (Demographic): Population: 1,180,166,000(2010), Age structure: 15-64 years is 63.6% (male 381,446,079/female 359,802,209) (2009). India's per capita income (nominal) is $1016, ranked 142th in the world Wealth distribution in India is fairly uneven with top 10% of income groups earning 33% of the income. Legal: It takes 35 days to start a business in India. It has Quasi-federal, but unified judiciary. Taxation laws are very stringent and Corruption is also very much prevalent. Political Economic Socio-cultural Technological ...
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...Concept Case Notes – Tanishq: Positioning to capture the Indian Woman’s Heart. ________________________________________________________________________________________________ OVERVI EW: * Indian Jewellery industry * Tanishq and Goldplus SWOT analysis * Problem Analysis * Success strategies * Market Segmentations * Findings & Understandings India's Jewellery Industry: * Indian gold jewellery market~Rs. 60,000 crores Annually * Indian wedding jewellery-~70% of jewellery market * Wedding trousseau consisting of at least 5 pieces~$2,550 where per capita income was~$350 Tanishq – SWOT Analysis: * Strenghts Capital Flexibility Innovative Modern Style Excellent & outstanding advertisement strategy * Weaknesses 'Not for me' Gold Purchase Rituals Gold Perceptive * Opportunities TATA Support The Wedding Market Globalization * Threats Goldplus Local Jewelers Gold Significance Government Regulations Goldplus SWOT Analysis: * Strenghts Marketing Strategy TATA Support Traditions & Values * Weaknesses Limited Outlets * Opportunities Outlets The Rural Market * Threats Tanishq Government Regulations Design Stealers Vision of Undisciplined Boy! Problem Analysis : * Heavy Competition * Failure of Gold watches * Failure to tap wedding Market * "Not for Me "perception * Internal conflicts between Tanishq and Goldplus Succesful strategies...
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...Hosney 26503470 Presented to: Professor Dickson Jay Comm 401, Section DD Individual MidtermStrategic Management Case Analysis –Tata Consulting ServicesMarch 3rd, 2016 | Concordia University John Molson School of business 1. Problem statement According to the case, in the fiscal year of 2007, TCS made revenue of 4.3 billion USD, and had three goals by 2010. It wanted to reach revenue of $10 billion, differentiate itself from Indian competitors, and target the industry’s global leaders. TCS understood that in order to remain India's largest IT service company and achieve it's "10 by 10" goal, it needed to enhance it's strategy and differentiate itself from other competitors domestically and globally. TCS therefore created the "Experience certainty" campaign. This growth strategy that is based on differentiation positions TCS as provider of operational excellence, relative to its Indian and global competitors. The challenge here is whether or not TCS is able to translate the strategy into an action plan. The problem with the promise of quality is that, it lies in the hands of TCS’employees. The CEO can promise all the quality he wishes, but if his employees are not working towards providing high quality services, the strategy would fail. So we ask, is TCS certain they can provide their clients with quality? 2. Internal Analysis Evaluation of current position In early 2001, TCS aspired to be one of the top 10 global IT services companies by 2010. By 2006...
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...45 hrs Work load: 3 hrs per week Credit Points: 3 Evaluation: Continuous Internal Assessment – 25 marks Semester End Examination -- 50 marks Objectives: This cour se is designed to help students to develop basic appreciation of quality concepts and learn the tools and techniques to achieve quality. It also gives the totally integrated effort for gaining competitive advantage by continuously improving every facet of an organization’s activities. Pedagogy : Lectures, Assignments, case studies, seminar, MODULE 1 Introduction to TQM: Various definitions of quality and TQM, Core concepts of quality, The masters of quality(W Edwards Deming, Joseph M Juran, Philiph B Crosby, Kaoru Ishikawa, Ginichi Taguchi, Shigeo shingo) Evolution of quality, The Total Quality Management Excellence Model, Strategic Quality Management, Lecture, Numerical Exercises on cost of quality, TPM 1. Basterfield H Dale and others, Total Quality Management, Pearson Education/PHI, Inc. 2006. 2. K.Shridhar Bhat Total Quality Management (Himalaya publishing house 2005). 3. Poornima M Charantimath, Total Quality Management, Pearson Education, 2003. MODULE 2 Continuous process improvement: Concepts of Kaizen, Kaizen vs. Innovation, Kaizen Strategy, House of Quality, Quality Function deployment, Quality Circles. Brain storming, Value analysis, Poka Yoke, Bench marking. Lecture, Case study on Kaizen 1. Imai Masaki, Kaizen...
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...second year MBA students are required to undertake a study on macro analysis of a particular industry and thereby, prepare a project report on the chosen industry. The objective behind preparing this project report is to relate the management subjects taught in the classroom to their practical application and to get insight into practical situation. Petroleum Industry is considered to be the back bone of an economy because this is the main source of energy till date. Any economy around the world would fail to advance a single step in the absence of Petroleum Industry. The Petroleum Industry is divided into two segments namely Upstream Sector consisting of Exploration and Production of crude oil while the Downstream Sector consists of Refining, Processing, Storing, Marketing and Distribution of petroleum products. The most important part of the Petroleum Industry is the Petroleum Refining Industry which refines the crude oil to convert it to the usable fuel. It also derives many derivative products out of the crude petroleum like natural gas, naphtha, etc which can be used in various ways. Hence, for these reasons, we have chosen the Downstream Sector of the Indian Petroleum Industry for our Macro Analysis project. As this is a Macro Analysis project, we have concentrated on the Indian Petroleum Industry and that too focusing on the Downstream Sector for our study and not gone into the in depth analysis of the various players and their functioning. This project is...
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...Choice of the industry: IT Industry Justification of the choice of industry and players 1. Keeping current dismal economic scenario in mind, IT services industry is direct exposed to parameters such as GDP growth, inflation and exchange rates. 2. The IT industry caters to a wide range of industries such as Banking and Financial Services, Insurance, Telecom, Manufacturing, Retail & Distribution, Life Sciences, Energy, Media, Travel and Government. 3. Their revenue model covers many methods of service delivery such as fixed price, fixed time frame and time-and-material. 4. Foreign currency transactions of these companies and the practices followed. The companies being studied for this exercise are: 1. TCS: Tata Consultancy Services is an IT services, business solutions and outsourcing organization. TCS is part of the Tata group, one of India’s largest industrial conglomerates and most respected brands. Revenue of $10.17 billion (FY12). 2. Infosys: Infosys Limited was started in 1981 by seven people with US$ 250. Today, Infosys is a global leader in consulting, technology and outsourcing with revenues of US$ 6.994 billion (FY12). Many of the world’s most successful organizations rely on Infosys to deliver measurable business value. Infosys provides business consulting, technology, engineering and outsourcing services to help clients in over 30 countries build tomorrow’s enterprise. 3. MindTree: MindTree was started in August 1999 by a diverse...
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...PVR Limited Management Discussion and Analysis The following Management Discussion and Analysis Section should be read in conjunction with the financial statements and notes to accounts for the period ended 31st March, 2012.This discussion contains certain forward looking statements based on current expectations, which entail various risks and uncertainties that could cause the actual results to differ materially from those reflected in them. All references to “PVR”, “we”, “our”, “Company” in this report refers to PVR Limited and should be construed accordingly. to increase. (Source: FICCI- KPMG Indian Media and Entertainment Report 2012) 1. Largest Industry - The Indian film industry is one of the largest globally with a history of steady growth. With films being the most popular form of mass entertainment in India, the film industry has witnessed robust double-digit growth over the past decade. Industry Structure & Development 2. Demographic scenario supports long-term fundamentals: Due to favorable demographics (75% of the country’s population is below the age of 35) and economic conditions in India, coupled with consumers willing to spend more on a variety of leisure and entertainment services, the filmed entertainment business is set to grow in the years to come. 3. Under screened market: When compared to global benchmarks such as USA, UK, France, Spain, India is a significantly under screened. Mumbai and Bangalore have...
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...environment analysis (Indian Coffee Market) Opportunities: 1. Market development In 2006, India was ranked as the fourth-largest economy in the world in terms of purchasing power parity and the tenth-most-industrialized country in the world. Since 1996, coffee consumption witnessed a steady rise reaching 85,000 tons in 2005. According to the statistics show that, although tea is famous in India, but also the world's fifth largest coffee exporter. All these facts prove the Indian coffee market has the potential for Starbucks to explore. 2. Political effects The Indian economy has been experiencing more stability as far as the Government and political scene is concerned. There had been reduced internal turmoil resulting from political influences and this has created a better working environment for industries and business in India. 3. Lifestyle trend Similar to China, India is also a mainly tea drinking country. However, Indians regard drinking coffee and experimented with various flavors as a fashion statement. It’s more like a lifestyle attitude, which is just accord with Starbuck’s concept of ‘selling a experience’. Threats: 1. Competitor intentions There are many competitors in the Indian coffee market as case stated. All these competitors entered Indian market before Starbucks, thus they have established a certain degree of basis already. Besides the coffee market, Starbucks also has to compete with other traditional Indian tea...
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