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Case study issues_in strategy

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strategy, operational efficiency, krishna, shakuni,growth, prahalad, porter,hamel

strategy, operational efficiency, krishna, shakuni,growth, prahalad, porter,hamel

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Transcript

  • 1. Issues in Strategy By Abhishek Maloo
  • 2. Contents• Objective function• Operation efficiency & Strategy• Why strategy?• Corporate plan• Why growth?• Core competency• BCG & Core competency• Porter & Hamel• PLC & Porter• Conclusion
  • 3. Objective Function• Mission Statement – Boundary definition for an organization. – Tells what business you are in. – Basis of SWOT analysis• Vision Statement – Aspiration , dream & desire to move to a higher position. – Transition of dreams into objectives & goals.
  • 4. Operational Efficiency (O.E.) & Strategy• Must Do – O.E. – Product Quality.• Should Do- Strategy. – Cost Leadership, Technology, Product Differentiation.• Wheel Vs Nirma
  • 5. Why Strategy?• Competitive Advantage.• Strategy hand in hand with uncertainty and risk.• Increase return by taking risk.
  • 6. Corporate Plan• Path of movement from starting point to a desired goal.• IC – the resource base.• TP – desired goal/ objective.• TH – time to execute the strategy.
  • 7. Why Growth?• Need for Market Control – initial phase of growth• Need for diversification – New mission. – New product.• Rent Seeking Behavior.
  • 8. Core Competencies.• Collective learning, embedded in time & represents the Assets of a company. – Three tests: • No duplication. • Value addition. • Access to multiple markets.
  • 9. BCG & Core Competency• Should develop portfolio of core competency rather portfolio of business.• Mergers & acquisition.
  • 10. Porter & HamelPorter (consistency school) Hamel (Stretch School)Fit & consistency fit Revolutionary, StretchPerform different activities Perform activities differentlyCEO JOHN DOE DEPENDENT PILLARS: •Market structure. •Product life cycle. •Generic strategy.
  • 11. PLC & Porter’s Generic Model
  • 12. Conclusion• Power is the driver of strategy.