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STRATEGIC
MANAGEMENT
ABHERI DAS
ROLL-01
“Management’s job is not to see
the company as it is …..but
as it can become”
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
Example
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
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
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
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
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
Services offered by Infosys
Energy services
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,
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
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
Partnership with companies
The partnership focuses on developing solutions that
incorporate infosys it and the alliance partner technology
services.
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
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
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
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
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
strategic management

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strategic management

  • 1. STRATEGIC MANAGEMENT ABHERI DAS ROLL-01 “Management’s job is not to see the company as it is …..but as it can become”
  • 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
  • 9. Services offered by Infosys Energy services
  • 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