2. Strategic management
What is strategic management?
The set of managerial decisions and actions that determines the long –run
performance of a corporation.
Why ?
• Clearer sense of strategic version
• Sharper focus on what is strategically important
• Improved understanding of rapidly changing environment
Strategic management typically involves:
• Environmental scanning
Internal(strength/weakness)
External(oppurtunities/threat)
• Strategy formulation
Mission
Objectives
Strategies
policies
•Strategy implementation
Programs
Budgets
Procedures
•Evaluation and control
performance
4. The idea was born on July 2,1981, Infosys Consultants Pvt. Ltd. The starting
capital was $ 250 which was borrowed from Mrs. Murthy.
Type – Public
Industry - IT services, IT consulting
Founded - 7 July 1981
Founder - N. R. Narayana Murthy
Nandan Nilekani
N. S. Raghavan
S. Gopalakrishnan
S. D. Shibulal
Headquarters - Electronic City, Bengaluru, Karnataka, In
5. Infosys
• Vision – “ To be a globally respected corporation that provides best-of-
breed business solutions, leverging technology,delivered by best-in-class
people”
• Mission – “strategic partnerships for building Tomorrow’s Enterprise”
• Branch
Office (india)
New Delhi
Mumbai
Pune
Bhubaneswar
Hydrabad
Mysore
Chandigarh
Chennai
• Overseas office
Canada
Mexico
United States
Brazil
Costa Rica
Australia
China
Hong Kong
India
Japan
Singapore
New Zealand
Malaysia
Belgium
Denmark
Finland
France
Germany
Ireland
Italy
Norway
Spain
Sweden
Switzerland
The Netherlands
United Kingdom
(UK)
Russia
Mauritius
United Arab
Emirates
South Africa
6. JOURNEY OF INFOSYS
1981-
Established in Pune , with $ 250
Signs up its first client, Data Basis Corporation , New York
1983 –
Relocates corporate headquarters to Bangalore
1987 –
Introduced employee Stock Options Program(ESOP)
Acquires ISO 9001/Tick IT certification
Goes public
1998 -
Starts Enterprise Solutions(packaged application)practice
1999 –
Listed in NASDAQ
Became 21st
company in the world to achieve a CMM Level 5 certification
7. JOURNEY OF INFOSYS
2006 –
Revenue cross US $2 billion.
N.R.Narayana Murthy retires from the services of the company on turning 60 . He
continues as Chairman and Chief Mentor of Infosys
2009 –
Infosys selected as a member of The Global Dow
Employee strength grows to over 100,000
2011 –
N.R.Narayana Murthy hands over chairmanship to K.V. Kamath
Crosses US $6 billion revenue mark, employee strength grows to over 130,000
2012 –
Listed on the NYSE market
Crosses US $7 billion revenue mark
2013 –
N.R.Narayana Murthy as Executive chaire man of the board
Presented with “2013 Environmental Tracking Carbon ranking Leader” award
8. Product designed by Infosys
– design of a 380 inboard Fixed Trailing Edge.
model for combustion pressure inside engine
Design and development of internet security product
all aspects like image – analysis platform and
biochemical- markers in drug
development for a CRO
AEROSPACE
AUTOMOTIVE
BUSINESS SOFTWARE
10. Finacle:THE ONLY PRODUCT
• Finacle is a core banking product developed by Indian
corporation Infosys that provides universal banking functionality
to banks.
• Finacle is used by banks across 84 countries that serve over 450
million customers
• Several major customers of Finacle includes
Bank of India,
Federal Bank,
Punjab & Sind Bank,
South Indian Bank,
ICICI Bank in India,
DBS Bank,
Indian Overseas Bank in India,
11. The Infosys strategy
• Pioneered by Infosys in 1980s
• is a framework for distributed project management and multi - location
engagement teams.
• Projects are divided into components and are executed independently and
concurrently at client site and partly at the development centers
• Components are integrated into high quality robust solutions
• Development centers that are spread across different countries allow
Infosys to leverage time zones. it can have 24 hour workdays
• By this model project managers are ensured of total control
Global delivary model
12. The Infosys strategy
Generic strategies
• To maintain low-cost advantage they have opened offices in Poland ,
Philippines , Thailand, Mexico
• Invested in developing trainning trainning centers
• Improved quality capabilities – CMM level 5i company.
• Low cost global delivery 24/7 model
• Focus on quality , customer relationship management, timely- delivery
13. Partnership with companies
The partnership focuses on developing solutions that
incorporate infosys it and the alliance partner technology
services.
14. Grand Strategies
• Market penetration –
involves focusing on selling your existing products or services into your
existing markets to gain a higher market share.
Current market: USA and EUROPE
Current product : BPO , KPO , consultancy services and Software products
Recommendation : As most large clients in US and Europe are cutting costs ,
Infosys needs to be more aggressive on cost and quality
15. Grand Strategies
• Market development strategy
identifies and develops new market segments for current products.
targets non-buying customers in currently targeted segments.
targets new customers in new segments. ...
Another way is to expand sales through new uses for the product
Current market: USA and EUROPE
Current product : BPO , KPO , consultancy services and Software products
Recommendation :Since these are fast developing IT market, Infosys
needs a paradigm shift in focus from US and EU markets to these market
16. Grand Strategies
• Product development strategy
Developing new products or modifying existing products so they appear
new,
Offering those products to current or new markets
Current market : USA and EUROPE
Current product : BPO , KPO , consultancy services and Software products
Recommendation : concentrate on building expertise in these domains by
strategic acquisitions
17. Grand Strategies
• Diversification
employed when a company's existing market is saturated
revenues and profits are stagnant or falling.
There is little or no opportunity for growth.
takes a company outside its existing business and a new product is
developed for a new market.
New market : India , middle-east and australia
New product : consultancy and package implementation services .life sc.
And aviation sector ,and , KPO services
Recommendation : changing brand image from low value service
provider to high value service provider
18. Word of mouth
• Employee-
lots of recreation and time for employees for themselves
Work culture is good
Events & competition
every one is encouraged to do better in life
new innovations are appreciated
women safety need is increasing
women employee recruitment is more than male
• CEO –
Friendly relation between employees and CEO