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

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 & Hamel
Porter (consistency school) Hamel (Stretch School)
Fit & consistency fit Revolutionary, Stretch
Perform different activities Perform activities differently
CEO 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.