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What is Strategy
This document discusses business strategy and strategic management. It provides examples of different business strategies including focusing on specific customer needs, operational effectiveness, strategic positioning, and creating competitive advantages through strengths. The document also discusses examples of strategy from war to business including Mittal Steel's acquisitions. It emphasizes the importance of strategic fits and consistency among a company's activities to achieve strategic goals.
What is Strategy
- 1. TOPIC..!! Akshit Sharma Aradhya Goel DeepakKannan Hrishikesh Narayan Jigyasa Gautam Onkar Kumar Prakhar Jain Udit Jain Utkarsh Singh
- 2. To make sustainableProfits.. What is the purpose of any business..?
- 3. What are corefunctions of any business? Production, Selling and Delivery..
- 4. When every businesshas same core functions, how do they make profits?? Strategy…!!
- 5. WHAT IS STRATEGY..!? ByMichael Porter..
- 6. Few needs ofmany customers Many needs of few customers Many needs of many customers Strategy defined by two different schools of thoughts OLD Operational Effectiveness Efficiency NEW Strategic Positioning Creation of Unique Valuable position Make Trade offs Create fit among activities SUCCESS Productivity Frontier Competitive Convergence
- 7. Strategy…!!! Strengths • 120 soldiers •4 Hawker Hunters • 1 HAL Krishak • 1Jeepmounted M 40 recoilless rifle • 2,000 soldiers • 1 Mobile infantry brigade • 45 tanks Casualties and losses • 2 soldiers killed • 1 jeep mounted recoilless rifle destroyed • 200 soldiers killed • 34 tanks lost • 500+ vehicles destroyed or abandoned
- 8. From War toBusiness
- 9. Mittal Steel • Takingover sick steel companies • Cost less • No competition / hostile take over • Payment only after profits are realized • Staffing with retired government employees • Well experienced • Not over ambitious • No dividend paid out
- 10. What can theCompetitors do?? Repositioning Straddling IMITATION
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- 12. Ask a professionalsports coach how often they expect to win a game if they copy the strategy and tactics of the other team and use their strategy and tactics against them. “Culture eats strategy for breakfast” - peter drucker
- 13. Organizational citizenship Easy debt financing Closerelationship with suppliers and dealers Lifetime employment Ownership of labor
- 14. STRATEGIC FITS OPTIMIZATION OF EFFORT REINFORCING CONSISTENCY Minimumbackup space Limited menu items Batch size of 8 Ratio of food to beverages 70:30 Hibatchi table Chefs from Japan Exotic décor from Japan Outstanding visuals Offbeat themes Site section Tepanyaki table No franchising Distinctive experience
- 15. Strategic Procurement Few Suppliers HighCost of change Balanced Relationships
- 16. Hand Shake Agreement Understanding Operationsof McDonalds Customization of Facilities Providing Cold, Clean and On Time Delivery Mission Statement of RK Foodland: "To ensure that all McDonald's restaurants are supplied without interruption, products conforming to acceptable standards at lowest local costs to the system."
- 17. Rediscovering Strategy • Failureto choose - Misguided view of competition - Organizational failure - Desire to grow • The growth trap -Companies start with a unique strategic position, involving trade-offs. -incremental changes • Profitable Growth -many companies attempt to grow by adding hot features, products, or services without adapting them to their strategy.
- 18. Kodak Example • In1975, the first ever charge-coupled device (CCD) image sensor was developed by scientists at Kodak it had a resolution of 0.1 megapixels • in 1986, Kodak developed the world’s first camera-size megapixel sensor. • In 1991, Kodak created the first digital SLR camera.
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