3.1 strategic management section c and d (1) (1).pptx

Strategy
 Companies use strategy to stay competitive and
realise their business goals
 Starbucks – Exclusive Coffee –Social meeting
urban space- this idea originated in USA and has
gone over the world across 83 countries, with
32,000 retail café with a revenue of $8.1billion
from
 Tata Motors –Corporate Strategy has taken the
company to being the worlds largest automobile
manufacturer of $35 billion in 125 countries from
a sub contracting manufacturer working on

Strategy
 Parachute- A FMCG brand with a market share
of 53% of the hair oil market. Today its highest
sold hair oil . Marico gains from this single
brand a revenue of 307 crore.

Definition
 Strategy: it is a consciously intended course of action to deal
with a situation. Strategies are the means by which long-term
objectives will be achieved
 Strategic management can be defined as the art and science
of formulating, implementing, and evaluating cross-functional
decisions that enable an organization to achieve its
objectives.
 Strategic management-is a set of decisions and actions
formulation and implementation of strategy to help achieve
corporate objectives.
 Policies and strategy : policies are distinct from strategy as
policies are the principles based on which governance of an
organization rests.
 Strategy and tactics : each of the strategy at its
implementation process sub strategies specific to each case
is used these are tactics

Strategic Intent-Strategy n Tactics-
DIFFERENCE
 Significance- strategy has more important role
than tactic –as they affect the decision taken at
the organization level
 Level of formulation-due the importance strategy
has strategy is formulated by the top management
while tactics are employed by mid level managers
while implementing the strategy
 Information base: consequence of an effective
strategy is important to organization so it
formulated considering all aspects where as
tactics are specific to the time and case situation.

Benefits of Strategic
Management
Benefits Of Strategic Management
• Enhanced Communication: Organizations objective to conduct business
and goals to be achieved is communicated to all employees thereby ensuring
employees participate in enhancing and achieving the organisation goal
• Develop Commitment: Organisation that have a strategic plan in place
provides a guiding time line that has to be achieved. Departments and
employees can accordingly work to achieve the goals.
• Decision Making: Organizations that have a better strategic plan in place
provides employees the complete information based on this they can take
decisions
• Financial and Non Financial: Benfits can be financial and non financial as
growth of revenue, greater market share , increased revenuve

Strategy Characteristics and
functions
Top level/corporate level –
concern with policies and goal
setting for the whole corporation
Mid level/Business unit level –concern with
strategies that are specific to running a
particular business unit
Functional level/operational level – concern with
achieve operational unit level objectives.
 Two broad functions of
strategy:
 Strategic orientation-
that which is formulated
and implemented by
top management
 Operational orientation:
actions and tactics for
managing day to day
operations at unit level
Characteristics-SM is in three
distinct Levels of management
Functions at different levels of
management

Strategic Management Process
Strategic Management Process
The stages are continuous and dynamic process.
Primary objective is to drive changes
Organisations/Companies adpt these stages to bring in formal structure
for implementing their strategy
PESTAL
Five Force Model
To analyse Industry
SWOT/TWOS
Analysis
For internal analysis
Objectives have to be aligned to the
Strategy picked
Based on internal /external analysis

Benefits of Strategic
management
 Companies using strategic management tools
show better productivity ,sales and profitability
 Companies are more systematic in their planning-
high on performance-take internal and external
challenges.
 Companies better decision making system-
estimate and forecast the market and appropriate
actions.
 Companies also benefit on nonfinancial terms-
renewed confidence to perform and have better
perspectives of business factors as market and
competitive factors.

Robinhood –Story of an Hero.
Story- It’s a story of Robin hood the a worthy boy
of Nottingham who turns to be a rebellion
And a saviour of the outcast.
Robinhood is from Nottingham near the Sherwood
forest.
It’s a place in medieval Europe ,in Britain of today
Robinhood is caught by the Sheiff for creating a braul,
gets thrown in the
Forest as punishments- this was after a series of such
situation Robin hood is caught in before.
Robin stays aimlessly scavenging the Sherwood forest
until he meets many more in the forest-
Little John, Scarlock and Scarlette. All of them had one
common issue to deal the sheriff and his
Harsh treatment to people –
( Sheriff was the lieutenant to Prince John , so he had
his way and terrorised the people of the village).
Robin and the group –now got together to fight this.
The fight was
• Merry men wanted to fight
Sheriff for the atrocities he
Did on the three
• Fight Sheriff and Price
John – became
The agenda – Rob the rich
and Feed the Poor
• Bring back King Richard
Fight without –No funds
or organised army.
Use the Natural expanse
Sherwood Forest
Use the Skills of his
people
Use their emotions and
motivation

Strategic Intent
 Vision-
 Mission
 Goal

Mission Vision Goal
 Mission: a statement of purpose it embodies the
business philosophy of a company’s decision
makers, implies the image the company principal
product or service areas and customers needs the
company seeks to satisfy.
 Vision: a statement that answers the question
‘What do we want to become'. Vision is a future
achievement statement of the company
 Goal: these are more specific and result oriented
statements that take the mission and vision
statements towards realisation.

Features of effective mission statements:
• Broad in scope
• Generate range of feasible strategic alternatives
• Not excessively specific
• Reconcile interests among diverse stakeholders
• Finely balanced between specificity & generality
• Arouse positive feelings and emotions
• Motivate readers to action
• Generate the impression that firm is successful, has
direction, and is worthy of time, support, and investment

mission n vision -relation and
difference
 Declaration of
organizational
purpose
 Customer
orientation should
be stated
 Social objectives
should be stated
 Mission is
philosophy of the
company and states
company present
aims and objective.
Vision is a
generalized
statement of
companies future
aims
Three important features of a
mission Difference between mission and
vision

Mission and Vision
It should include at least the following
ten factors in your analysis:
1. Tuition costs
2. Quality of faculty
3. Academic reputation
4. Average class size
5. Campus landscaping
6. Athletic programs
7. Quality of students
8. Graduate programs
9. Location of campus
10. Campus culture
Prepare the Strategic Intent for an
institution
STRATEGIC INTENT

Developing a Objective and Goals statement
Three types of objective:
Strategic objective-
 Achieving overall predetermined rate of return on capital employed.
 Becoming market leader in a particular market group
 Increasing shareholder earnings
 Reducing companies dependence on borrowed capital
 Improving employee relations
Tactical objective-
 Increasing market share
 Opening company subsidiary in a particular country
 Extending the company’s range of products
 Introducing new technology or new manufacturing process
Operational Objectives-
 Improving plant utilization
 Undertaking cost cutting
 Improving credit control
 Managing cash inflows

Vision Mission statement
Vision:
 To be a globally respected
corporation that provides best of
the breed business solution
leveraging technology by best in
class people.
Mission:
 To achieve our objective in an
environment of fairness, honesty
and courtesy towards our clients,
employees vendor and society
 Vision: is to contribute for global e-
society, where a wide range of
information is being exchanged beyond
time and space over global networks,
which breaks down the boundaries
among countries, regions and cultures,
allowing individuals to take part in
various social activities in an impartial,
secure way. To do continuous effort to
enhance people's lifestyle and quality
by means of developing new
technology in wireless communication.
 Mission: is to be a RF System Solution
Provider, through its innovative
research and design works for a new
world of broadband wireless
communications
INFOSYS WIPRO

Vision:
 To emerge as a 'Preferred Bank' by
pursuing global benchmarks in
profitability, operational efficiency,
asset quality, risk management and
expanding the global reach.
Mission:
 To provide quality banking services
with good customer care, create
value for all stakeholders and
continue as a responsive corporate
social citizen.
 Vision:
My SBI. My Customer first. My SBI: First in
customer satisfaction.
 Mission:
We will be prompt, polite and proactive with
our customers. We will speak the language of
Young India. We will create products and
services that help our customers achieve their
goals. We will go beyond the call of duty to
make our customers feel valued. We will be of
service even in the remotest part of our
country. We will offer excellence in services to
those abroad as much as we do to those in
India. We will imbibe state-of-the-art
technology to drive excellence.
CANARA BANK STATE BANK OF INDIA

INDIAN TOBACO COMPANY LTD.
Vision:
Sustain ITC position as one of the valuable
corporation through world class
performance, creating growing value for
the company and the stakeholders.
Mission:
 To enhance the wealth generating
capability of the enterprise in a
globalizing environment ,delivering
superior and sustainable stakeholder
value.
PROCTER AND GAMBEL
 Vision:
To be the best consumer products and services
company in the world.
 Mission:
To provide branded products and services of
superior quality and value that improve the lives
of the world's consumers, now and for
generations to come.

INTEGRATE TO BE
COMPETITIVE
Resource
Distinctive
competencies
• Differentiation
• Low Cost
Capabilities
Competitive
advantage
-Low cost
-Differentiation
Superior
quality
Superior
Customer
responsiveness
Superior
innovation
Superior
efficiency
Roots of competitive
advantage
Generic Building blocks for
Competitive Advantage
Value
Creation
• Superior
• Profitability

SWOT Matrix
Strength
Capitalise
Weakness
Harness
Opportunity
Invest
Threat
Re group

SWOT – Criteria
Strength:
Internal Capabilities built
within the company
Action- Capitalise
Weakness –
Internal Capabilities
typically essential for all
organizations but found
wanting in the organisation
under assessment
Action- Develop
SW Opportunity- Industry
oriented advantages
common to all
organizations
Action- Harness
Threat- Industry centric
trend that can impact
organizations in the
Industry
Action-Re –group/
Channelise.
OT

SWOT MATRIX- Bharti Airtel
Strengths
 Bharti Airtel has more than 303 million
customers (July 2020 ).and 50million in
south Africa. It is the largest cellular
provider in India, wireless services, mobile
commerce, fixed line services, high speed home
broadband, DTH, enterprise services- as well as
many other telecommunications services
to both domestic and corporate
customers. Rs 232,903 million Rev in 2020
 Varied telecom and broadband services
provider- in alliance with Sony-Ericsson,
Nokia - and Sing Tel, Samsung,Verison
and Cisco with whom they hold a strategic
alliance.
 The company has covered the entire
Indian nation with its network. This has
underpinned its large and rising customer
base.
 The fact that the Airtel has pulled off a
deal with South Africa's MTN could signal
the real emerging market investment
opportunity for the business once the
Weaknesses
 An often cited original weakness is that
when the business was started by Sunil
Bharti Mittal over 15 years ago, the
business has little knowledge and
experience of how a cellular telephone
system actually worked. So the start-up
business had to outsource to industry
experts in the field.
 Until recently Airtel did not own its own
towers, which was a particular strength of
some of its competitors such as Hutchison
Essar. Towers are important if your
company wishes to provide wide coverage
nationally.

SWOT MATRIX
Opportunities
 The company possesses a customized version of the Google
search engine which will enhance broadband services to
customers. The tie-up with Google can only enhance the
Airtel brand, and also provides advertising opportunities in
Indian for Google.
 Global telecommunications and new technology brands see
Airtel as a key strategic player in the Indian market. The
new iPhone will be launched in India via an Airtel
distributorship. Another strategic partnership is held with
BlackBerry Wireless Solutions.
 Despite being forced to outsource much of its technical
operations in the early days, this allowed Airtel to work
from its own blank sheet of paper, and to question industry
approaches and practices - for example replacing the
Revenue-Per-Customer model with a Revenue-Per-Minute
model which is better suited to India, as the company
moved into small and remote villages and towns.
 The company is investing in its operation in 120,000 to
160,000 small villages every year. It sees that less well-off
consumers may only be able to afford a few tens of Rupees
per call, and also so that the business benefits are scalable -
using its 'Matchbox' strategy.
 Bharti Airtel is embarking on another joint venture with
Vodafone Essar and Idea Cellular to create a new
independent tower company called Indus Towers. This new
business will control more than 60% of India's network
towers. IPTV,Broadband,OTT is another potential new
service that could underpin the company's long-term
strategy.
Threats
 Airtel and Vodafone seem to be having an on/off
relationship. Vodafone which owned a 5.6% stake in the
Airtel business sold it back to Airtel, and instead invested in
its rival Hutchison Essar. Knowledge and technology
previously available to Airtel now moves into the hands of
one of its competitors.
 The quickly changing pace of the global telecommunications
industry could tempt Airtel to go along the acquisition trail
which may make it vulnerable if the world goes into
recession. Perhaps this was an impact upon the decision not
to proceed with talks about the potential purchase of South
Africa's MTN in May 2008. This opened the door for talks
between Reliance Communication's Anil Ambani and MTN,
allowing a competing Inidan industrialist to invest in the new
emerging African telecommunications market.
 Bharti Airtel could also be the target for the takeover vision
of other global telecommunications players that wish to
move into the Indian market.
 Airtel comes to you from Bharti Airtel Limited, India's largest
integrated and the first private telecom services provider
with a footprint in all the 23 telecom circles. Bharti Airtel
since its inception has been at the forefront of technology
and has steered the course of the telecom sector in the
country with its world class products and services. The
businesses at Bharti Airtel have been structured into three
individual strategic business units (SBU's) - Mobile Services,
Airtel Telemedia Services & Enterprise Services.

SWOT –TOWS MATRIX
• S1-O4
• S2-O2
• S3-O1
SO
• W1-O3
• W2- O5
WO
• W1-T2
• W1-T1,T3
WT
• S2-T2
• S1– T1,T2
ST
•Highest consumer
base / C
•Sony-Ericsson,
Nokia - and Sing Tel-
sttegic alliance
•Sunil Mittal begins
with less expertise
• Initially No standing
in the Towers business
.

Resource based View-
Building organisation advantage by creating –organisation resource,
Physical resource. Human Resource
 Marketing Capability – Consumer
analysis, Selling products and services,
pricing, sales and distribution plan,
opportunity analysis.
 Finance and Accounting planning –
Investment decision, Dividend decision,
Accounting planning system- monitoring of
fiancé flow – ratios –
 Liquidity ratios measure a firm’s ability to meet maturing short-
term obligations.
 Current ratio
 Quick (or acid-test) ratio
 2. Leverage ratios measure the extent to which a firm has been
financed by debt.
 Debt-to-total-assets ratio
 Debt-to-equity ratio
 3. Activity ratios measure how effectively a firm is using its
resources.
 Inventory turnover
 Fixed assets turnover
 Average collection period
 4. Profitability ratios measure management’s overall effectiveness
as shown by the
 returns generated on sales and investment.
 Gross profit margin
 Operating profit margin
 Net profit margin
 Return on total assets (ROA)
 Return on stockholders’ equity (ROE)
 Earnings per share (EPS)

SWOT MATRIX
Strengths
alliance.
base.
Weaknesses
some of its competitors such as Hutchison
Essar. Towers are important if your
company wishes to provide wide coverage
nationally.

SWOT MATRIX- TOWS ANALYSIS
Strengths
alliance.
base.
Rank Weights Total Score
04 05 2
01 02 0.2
03 01 0.3
02 02 0.004
10 10 2.504

SWOT MATRIX-TOWS ANALYSIS
Weaknesses
some of its competitors such as
Hutchison Essar. Towers are important if
your company wishes to provide wide
coverage nationally.
Rank Weight Total Score
06 06 3.6
04 04 1.6
10 10 5.2

SWOT MATRIX - Bharti Airtel
the Ranking and Score
Criteria Total Score
Strength 2.5
Weakness 5.2
Opportunity 4.1
Threat 2.3

SWOT –TOWS MATRIX
• S1-O4
• S2-O2
• S3-O1
SO
• W1-O3
• W2- O5
WO
• W1-T2
• W1-T1,T3
WT
• S2-T2
• S1–
T1,T2
ST
•Highest
consumer base /
C
•Sony-Ericsson,
Nokia - and Sing
Tel-sttegic
alliance
Airtel operations in
multiple markets and in
all telecom product
verticals – Expertise in
diverse telecom products
is low
•Sunil Mittal begins
with less expertise
• Initially No standing in
the Towers business .
Technical prowess in
the company is low
Airtel looking at
strategic partners
who are no more
in business

SWOT-
Assume that these are Indian companies in the Durable electronics market in India .
Each of the table lists the SWOT scores for each company .
Based on this score ,Pick the company that is listed as the least competitive, and most
competitive . Among the four companies which of these are ranked the top company.
COMPANY- A
Strength 1.6
Weakness 2.4
Opportunity 2.0
Threat 2.3
COMPANY- B
Strength 1.9
Weakness 2.4
Opportunity 2.3
Threat 2.3
COMPANY- C
Strength 3.3
Weakness 2.4
Opportunity 2.9
Threat 1.3
COMPANY- D
Strength 2.9
Weakness 1.7
Opportunity 3.0
Threat 1.1

Value creation and pricing
option
VALUE CHAIN VALUE ANALYSIS
V-P
P-C
C
• Value created
•Value to consumer - Price
•Profit Margin
•Price - Cost of production
• Includes cost of
capital per unit

Basic Functionsand Outcomeassigned– Investment decision, Dividend
decision.

Internal Analysis- Financial Strength – Assessing the key Ratios –
Basic Functions and outcomes assigned to the department-
Liquidity Ratio. Leveraging Ratio and ROI.

Production and Operations –Analysis- to assess the Production
Capability of the company .

Basic functions and outcomes
assigned to the department
Companies have to comply
• To internal quality standards
International and National
standards
• Manage Costs
• Meet production deadlines
• Innovate and develop
Products.

Production and Operations– Assess the impact of any strategyadopted

Research and Development-Basic function – develop distinctive and
innovative products and designs adaptable by consumers at not significant
change in cost.

ValueChainAnalysis-
analysis of the companies activities to categorise them into primary –core competency ( all
activity that contributes majorly to the companies profits) and secondary or support activity (al
activity that is supporting the major activity).
Companies use
Value Chain
Analysis
as an analytical
tool to identify
Cost Heads and
methods to -
Value Creation
https://youtu.be/Abl6b71H2Mc

Value chain analysis – identifies core
competencies of the company
Telecom Companies- Activities –
Core activity- develop infrastructure for delivering
digital and broadband technology based services.
Support activity – Managing and maintaining the physical infrastructure
Banking Financial Institutions Activities –
Core Activity – Develop physical infrastructure for place of transaction, Hire professionals,
experts and advisors. Service clients/customers.
Support activity – Maintain and manage the physical infrastructure, administration and
security of facility
Cement Company Activities-
Core Activity- listing vendor ,sourcing raw material, managing inventory, managing
production cycles, estimate demand . Manage and achieve sales.
Support activity – Administration. Human resource management, Management
Information System

Value Chain of Just Coffee-
A company that produces fair organic coffee
Value Chain Activity of the company and its costs- in producing roasting and
selling a pound of fair trade organic coffee
Average cost of procuring the coffee from coffee grower co-operative. $2.30
Import fees ,storage costs and freight charges .73
Labour cost of roasting and bagging .89
Cost of labels .45
Average overheads cost $ 3.03
Total Company cost $ 7.40
Average retail markup over company cost 2.59
Average price to consumer at the store $9.99

Five Force Model- Tool to analyse all the forces of
competition in the market-Model proposed by Michael E
Porter.
https://youtu.be/XCWHSeDU-zk
https://youtu.be/XIpBFdg9mx0

External analysis – Porter five
force
PORTER’S FIVE FORCE MODEL
Intensity of
rivalry among
established
firm
Risk by
potential
competitors
Bargaining
power of
buyers
Threat of
Substitutes
Bargaining
power of
suppliers
ANALYSIS
Competitive threat for companies
Threat of substitutes-this reduces demand for existing
companies, substitutes market demand depends on
whether they have higher perceived value
Bargaining power of buyer-multiple choice and this is a
certain supplier condition as it is a significant market
of substitutes.
Bargaining power of supplier-certain market condition
provides the seller to be competitive-when no close
substitute, sole supplier.
Threat of new entrants-New products or new
features/innovations-forecasting new entrants is
necessary- developing and meeting future trends –it
would otherwise lead to market share loss

AUTO
INDUSTRY
FIVE FORCE
MODEL
https://hbr.org/video/3590615226001/the-
explainer-porters-five-forces
https://hbr.org/video/6065301402001/the-
explainer-the-5-forces-that-make-companies-
successful https://hbr.org/video/2226587624001/the-five-
competitive-forces-that-shape-strategy

Growth Phase:
Multiple Companies/Lead by High Demand –Supplies not
matching the Demand rate/Consumers have multiple choice
Exit barriers are High
Entry Barriers are moderate to low
Competition is intense for building better advantages
Shake out Phase:
Multiple Companies/Demand is Stable/Consumers have choice and
substitute advantage
Exit barriers are High
Entry Barriers are moderate to low
Competition is intense /Competing for survival/Substitute market
grows
Mature Phase:
Consolidation in Companies/ Demand is Low/Consumers find
alternative products.
Exit barriers are Moderate to Low
Entry Barriers are irrelevant
Competition is intense for building diverse units.
Decline Phase:
Key Companies Sustain- Demand in the Industry I low/ Consumers are
Dispersed/Industry adopts Revival or Adopts Disruption or Exit .
IndustryLife Cycle-cycle is monitored on two criteria- total periodand total output
Cycle is significant to –exit and entry barriers in each stage.
Cycle is influenced by changes in factors of production
Introduction Phase:
Pioneering Company
Exit and Entry Barriers are
very High. High Regulations
High cost of Production
Consumers are Low/Adoption
Rate is Low

Industry Cycle of EV’s
Introduction Phase
 Industry Characteristics
 Number of Companies- Hand Full -143,total sales
is
 856,000 units (Total auto sales is 66million)
 Cost of Technology-$13,000
 Cost to consumer-Rs.3.49 per KM (0.78Rs).
 To Set a Unit total cost -$12,000 more than a
regular traditional auto manufacturing.

Social Factors- All societal factors –
Units of society are social groups to family.
Culture- Traditional Practises and Belief systems of a society
https://youtu.
be/_d3SXLx
zP3E

Economic Factors: Indicators/Measures of factors that govern the
market forces. Measuring the growth and the inputs that generate growth of
every aspect of the market.
Key
economic
indicators
•GDP expected
to grow by 10.0%
in 2021 and 7.5%
in 2022
Inflation rate
forecasted at
5.5% in 2021 and
4.8% in 2022 .
Indian Rupee
Rs.75.76/1$
Monthly GST
collections have
crossed the Rs. 1
lakh crore

Impact of Economic factors on the conduct of
business.
Mobile
handset
import
market in
india
 India’s exports to the US in 2020-21 were valued at
$51.62 billion and imports at $28.88 billion, resulting
in a trade deficit of about $23 billion for the US.
 The top traded goods include pearls and precious
stones, pharmaceuticals, machinery, electronics,
clothing, vehicles, chemicals and fish products,
optical, photo, medical apparatus and aluminum.
 https://www.livemint.com/Opinion/Iwsgmu6mIxf1eo0
AYABdmL/A-strong-rupee-hurts-the-economy.html
 https://timesofindia.indiatimes.com/business/india-
business/india-reduces-mobilephone-imports-by-64-
in-3-years/articleshow/72783634.cms

Impact of Technology on
Buisness

Technology – Any scientific invention that can be
commercialised and aims at Reducing Human effort
 Technological forces represent major opportunities and threats
that must be considered in formulating strategies.
 Technological advancements can dramatically affect
organizations’ products, services, markets, suppliers, distributors,
competitors, customers, manufacturing processes, marketing
practices, and competitive position.
 Technological advancements can create new markets, result in a
proliferation of new and improved products, change the relative
competitive cost positions in an industry, and render existing
products and services obsolete.
 Technological changes can reduce or eliminate cost barriers
between businesses, create shorter production runs, create
shortages in technical skills, and result in changing values and
expectations of employees, managers, and customers.
 Technological advancements can create new competitive
advantages that are more powerful than existing advantages.

Technology: Rate of Adoption of technology

HeroHonda and Bajaj auto
Hero Honda Advantage
• Brought in less than 100 cc bikes also deliver above 100 cc
• Marketing effort for better customer needs
Bajaj Auto
• Strive to retain the market leadership- concentrate on bikes priced
below Rs. 40,000
• Attack hero Honda premium bikes with Pulsar
What these strategies can do to bajaj and hero honda
• Sustain market
• Lead to cannibalization
• Confuse buyers

Quantitative Strategic Planning
Matrix QSPM

Opportunities weights Rating W.Score
•Bharti Airtel revenue is 219,385 million, $13 billion. Industry Revenue is
at $37Billion
•Bharti Airtel has more than 287 million customers. Industry Consumer base
-13.3% of the global tele users.
•Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with whom they
hold a strategic alliance. This means that the business has access to
knowledge and technology from other parts of the telecommunications
world.
•The company has covered the entire Indian nation with its network. This
has underpinned its large and rising customer base. Operates in 20 countries
and it’s the third largest operator
0.44
0.26
0.20
4
3
4
1.76
0.78
0.80
3.34
Threat
Airtel and Vodafone seem to be having an on/off relationship.
Airtel due to expansions and acquisition plan may be affected to the
world economy so any thing can affect - recession. Perhaps this was
an impact upon the decision not to proceed with talks about the
potential purchase of South Africa's MTN in May 2008.
Bharti Airtel could also be the target for the takeover vision of
0.00
0.10
0.10
3
2
2
0
0.20
0.20
3.74
External Factor Evaluation-this matrix will help make decision which of the external factor is
influencer on the company

Strength weights Rating W.Score
 Bharti Airtel has more than 303 million customers (July 2020 ).and 50million in
south Africa. It is the largest cellular provider in India, wireless services, mobile
commerce, fixed line services, high speed home broadband, DTH, enterprise
services- as well as many other telecommunications services to both domestic
and corporate customers. Rs 232,903 million Rev in 2020
0.4 5 2.0
 Varied telecom and broadband services provider- in alliance with Sony-
Ericsson, Nokia - and Sing Tel, Samsung,Verison and Cisco with whom they
hold a strategic alliance.
0.1 2 0.2
 The company has covered the entire Indian nation with its network. This has
underpinned its large and rising customer base.
0.3 1 0.3
 The fact that the Airtel has pulled off a deal with South Africa's MTN could
signal the real emerging market investment opportunity for the business once
the Indian market has become mature.
0.2 2 0.4
TOTAL 2.9
Weakness
 An often cited original weakness is that when the business was started by Sunil
Bharti Mittal over 15 years ago, the business has little knowledge and
experience of how a cellular telephone system actually worked. So the start-up
business had to outsource to industry experts in the field.
0.6 4 2.4
 Until recently Airtel did not own its own towers, which was a particular strength
of some of its competitors such as Hutchison Essar. Towers are important if
your company wishes to provide wide coverage nationally.
0.4 4 1.6
TOTAL 4.0
External Factor Evaluation-this matrix will help make decision which of the external factor is
influencer on the company

External –Internal Factor Evaluation-this matrix will help make decision which of the external factor
is influencer on the company –SPACE MATRIX- Strategic Planning and Action Evaluation
Financial
Position
Competitive
Position
Stability
Position
Industry
Position

External And Internal Factor
Analysis
STRATEGIC
PLANNING
AND
ACTION
EVALUATIO
N

SPACE Matrix –Strategic
Planning and Competitive
Evaluation
Tool to
aid
choice
of
strateg
y
based
on the
compa
ny
scores
on to
IE-EE
analysi
s
Conservative Aggressive
Defensive Competitive
Market penetration
Market development
Product development
Related Diversification
Backward,forwar
d,horizontal
integration
Market
penetration
Market
development
Product
development
Diversification
Retrenchment
Divestiture
Liquidation
Backward, forward
,horizontal integration
Market penetration
Market development
Product development
FS
CA IS
ES

BCG Matrix for Evaluating product of the
company.
Question Mark- Products of a
company that has low market
growth and low market share-
Company decision has to be
on investing further and
reviving the market
Stars- companies that have
majority of their revenue from
products that have the highest
market share , and can attain
high growth in future.
Cash Cow- companies
products that have majority
market share in target market
but also in extended markets
and are major generators of
revenue.
Dogs: Companies products
that are losing on market
share in the target market to

3.1 strategic management section c and d (1) (1).pptx

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