Strategic Management is tactic application in a situation of do or die, win or loose in the business environment it describes how the real life business organisations are doing it, starting with cola wars and emergence of virgin group.
5. VIRGIN GROUP
From Student
Magazine in 1968
to Virgin Active
Singapore 2013,
this is our story,
At 17 yr old Sir
Richard Branson
launched his 1st 2
businesses.
6. “ It all started with their Zero/least Capital, now
their net assets worth billions, and their
companies countless’’
Still they look Young, Dynamic, Stress free and
Enjoy the life……..
This is because of their STRATEGIES IN
BUSINESS MANAGEMENT.
It is the importance of strategic
Management in life.
7. Strategy, what it is?
• ‘’Strategy is the great work of the organization. In
situations of life and death, it is the trick/tactics of survival
or extinction, its study cannot be neglected’’
Sun Tzu ‘’The Art of War.
Mc Namee: ‘’ Strategic
Management is concerned with those long
run, fundamental and often irreversible decisions about the
company’s mission, scale of operations and spread of activites.’’
8.
9. Types & Levels of STRATEGY
• CORPORATE LEVEL. (competitive advantage, market
positioning)
• BUSINESS LEVEL.(HR, Finance, R&D & operations)
• OPERATIONAL LEVEL.(Operational Performance)
• INDIVIDUAL LEVEL.(Individual strategies can be
used to reinforce personal position)
10. 5 P’s as strategy (Henry Mintzberg)
PLAN: A course of action.
PLOY: a Type of manouver to outwit competitor.
PATTERN: A specific formula.
POSITION: A Place to be achieved.
PERSPECTIVE: A Stance to be taken.
11. Strategic Planning: Crafting a strategy
• Where are we now? & Where have we come from?
• Where do we want to be? And by when?
• How might we get there?
• Which way is the best?
• How do we ensure arrival/ Reaching there?
• What are the expected outcomes?
12. Richard Branson,
• His strategy in life,
• ‘’ My interest in life comes from setting myself
huge, apparently unachievable challenges &
trying to rise above them from the perspective
of wanting to live life to the full, I felt I had to
attempt it’’ – Richard Branson.
Similarly companies do have their Vision & Mision
Statements
13.
14. External Auditing
• External Evalution by, External Analysis, (PESTLE,
SLEPT, PEST)
• P – Ploitical (Google facing problem in China)
• E – Economical (Trade friction b/w US & India on Solar Energy eqiupment business)
• S – Social (cultural differences)
• T – Technological
• L – Legal.
• E – Ecological.
15. External Environmental Analysis
* COMPETITOR ANALYSIS
• COMPETITOR BENCHMARKING
• PROCTOR’S FIVE FORCE MODEL (SHOWN BELOW for APPLE inc.)
18. SWOT Analysis of Coca Cola
SWOT Matrix
ST
Strengths
ST
1. Create a line of energy drinks to meet a
growing demand of those products. (S8,
S9, S10, O1, O9)
2. Increase marketing in Latin America.
(S8, S9, S10, O6, O7, O9)
WO
1. Increase sports drink product
sales through sponsorship of
collegiate sports. (W2, W4, O1, O6,
O9)
1. Diversify beverage line by offering
alcoholic beverages. (S1, S8, S9, T5)
2. Increase marketing in Europe.
(W1, O4, O6)
2. Increase R&D spending to research
production methods to ensure that
we are utilizing resources in the most
efficient manner. (S1, S10, T3)
WT
Threats
Opportunities
1.Create a lower calorie sports drink line to
promote healthy drinking habits while still
providing the essential electrolyte balance.
(W2, W4, T1, T2)
2. Diversify products by entering the
healthy snack/snack food market. (W3, T2)
3. Take advantage of the increasing
demand for bottled water by
creating flavored water drops. (W2,
O3, O6, O9)
Weaknesses
24. Strategy Evaluation
Integration Strategies
• We have integrated into many suppliers prior to 2010
• We recently purchased CCE which helps integrate our
bottling and marketing
Product and Market Development
• We are highly established worldwide prior to 2010
Market Penetration
• We are currently in 200 different countries prior to
2010
Unrelated or Related Diversification
• We don’t offer a food segment (Unrelated)
• None of our main competitors offer an alcoholic
beverage (Related)
25. Case of google & samsung (Forbes Jan 2014)
•
Samsung wanted too much credit out of Android.
•
By trying hiding Andriod using touchwiz-proprietary skin(painted aspects of
android)
•
Certain phone softwares were switched-phone dailer etc. to bring in Tizen a large
role.
•
Google brought MOTOROLA for $12.5 bn cash
•
Google acquired 20000 mobile patent.
•
It enabled Motorola with Stock Android & ramped massive production of NEXUS
(GOOGLES OWN).
•
Samsung realised not to mess with Android.
•
Google & Samsung now have Patent deals lasting a decade
•
2 days later google announced the sale of MOTOROLA to Lenova.