Strategy implemementation & balance scorecard


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Strategy implemementation & balance scorecard

  1. 1. Amity Global Business School, Singapore Presented to – Ms. Astha Gupta Presented by – Devika Goel, Ankita Verma, Vaishali Goel, Avantika Kansal, Divya Bajaj & Harshita Baranwal
  2. 2. • Operation-driven rather than market-driven. • Action-oriented, make-things- happen tasks. • Strategy requires few; execution requires everyone.
  3. 3. Firm Strategy Firm Performance Task-Focus (Value) Structure Decision Processes and Controls Reward Systems People
  4. 4. • Build an Organization • Marshal resources • Institute policies • Pursue best practices and continuous improvement • Information and operating systems • Tying rewards to strategy and goals • Shape corporate culture • Exert leadership
  5. 5. 7 1. Identify short term objectives 2. Initiate specific functional tactics 3. Outsource non-essential functions 4. Communicate policies that empower people in the organization 5. Design effective rewards
  6. 6. • Time consuming • Wide array of managerial challenges • Many options to proceed • Demanding people-management skills • Perseverance to get initiatives moving • Number of unexpected issues • Resistance to change, misunderstandings. • Difficulties of integrating efforts across groups.
  7. 7. Vision People Management Resource
  8. 8. • Entry of low cost carriers changed the face of industry • Jet Airways started facing stiff competition from Air Deccan, Spice Jet & Kingfisher • Market share went down from 57% to 32%
  9. 9. • Set up a new Corporate strategy: “Regaining and expanding its market share by entering and operating in the LOW COST and a VALUE BASED CARRIER arena as well” •In order to give a definite shape to the corporate strategy, a business level strategy was implemented: •“the TAKEOVER of Air Sahara by Jet Airways and renaming it to form JETLITE”
  10. 10. •Jet’s management made various changes in the operation strategies of the airline • No tickets at throw away prices • Jetlite was to take on Tier II and Tier III cities • New schedule for other tier II cities • Cost cutting – by slashing employee numbers and better negotiation with suppliers • Single cabin carriers • Improvement in aircraft utilization hours
  11. 11. • Corporate Level Strategy: Focus: – Deliver High performance in controlled businesses – Maximize shareholder returns in affiliates – Leverage measurable synergy benefits from scale and scope – Outperform acquisition business cases
  12. 12. • Vodafone wanted to enter the Indian market in 2006-2007 – Gartner had figured that customer base in India would double by 2010
  13. 13. • Business Unit Strategy – Acquired Hutchison Essar Limited and divested in Bharti Airtel
  14. 14. • Operational & Functional Strategies: – Investing in Rural India by network sharing with other providers – Cutting costs through: • Infrastructure sharing deal with Idea and Bharti – Redefining the logo – High level of cost and time discipline – Customer value enhancement – Target areas: Mobile data, Enterprise and Broadband – Technology upgradation – CSR • Group Supply chain, Group Marketing, Employment
  15. 15. •Entry of Honda into US motorcycle market in 1959 •Honda executives (from Japan) focused on selling 250-cc & 350-cc machines •Sales were sluggish •Honda executives themselves were using 50-cc bikes & were attracting attention •They got a call from Sears & other stores •Honda launched those bikes •By 1964 one out of two motorcycles sold in US was a Honda
  16. 16. • In 1992 Nokia’s strategic intent was expressed in four criteria – Focused – Global – Telecommunications-oriented – High value-added • Its vision was the voice will go wireless • The Nokia vision in 1992 led to the company divesting a broad range of businesses that contributed some 90 percent of its revenues and to focus on the manufacture of handsets and network equipment. • The leaders set a further goal of doubling market share by the end of the decade. This achieved by 1997 and by 1999 Nokia had overtaken Motorola as market leader.
  17. 17. • In 1997 the strategic intent was articulated in terms of a mobile information society and bring the internet to everyone’s pocket • The 1997 vision further consolidated Nokia’s market position and led to the development of the picture phone and the mobile internet etc. • The company’s current mission is about ‘the awesome potential in connecting people’- “whenever, wherever, we believe in communicating, sharing, and in the awesome potential of connecting the 2 billion who do, with the 4 billion who don’t”.
  18. 18. It is an integrated system of managing strategies that links long term objectives with short term actions, senior management with frontline employees and organizational vision with organizational activities.
  19. 19. STRATEGY
  20. 20. 1.Leadership From the Top – Create the Climate for Change – Create a Common Focus for Change Activities – Rationalize and Align the Organization 3.Unlock and Focus Hidden Assets – Reengineer Work Processes – Create Knowledge Sharing Networks 2.Make Strategy Everyone’s Job – Comprehensive Communication to Create Awareness – Align Goals and Incentives – Integrate Budgeting with Strategic Planning – Align Resources and Initiatives 4.Make Strategy a Continuous Process – Strategic Feedback That Encourages Learning – Executive Teams Manage Strategic Themes – Testing Hypotheses, Adapting, and Learning STRATEGY Formulate NavigateCommunicate Execute
  21. 21. The Balanced Scorecard identifies the factors that create long- term economic value in an organization, for example: Customer Focus: satisfy, retain and acquire customers in targeted segments
  22. 22. Business Processes • deliver the value proposition to targeted customers •innovative products and services •high-quality, flexible, and responsive operating processes •excellent post-sales support Organizational Learning & Growth •develop skilled, motivated employees; •provide access to strategic information •align individuals and teams to business unit objectives
  23. 23. Who are our targeted customers? What is our value proposition in serving them?
  24. 24. What capabilities & tools do employees require to help them execute our strategy?
  25. 25. What financial steps are necessary to ensure the execution of our strategy?