Strategic management

Sandeep C

Cola wars

Pepsico

Nike (Just Do it) Custom build stores

APPLE (iPhone series cult)

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.

“ 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.

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.’’

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)

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.

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?

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

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.

External Environmental Analysis

* COMPETITOR ANALYSIS• COMPETITOR BENCHMARKING• PROCTOR’S FIVE FORCE MODEL (SHOWN BELOW for APPLE inc.)

Internal Audit

• Resource Audit• Financial Information.• Value Chain Audit• Human capital strength.

SWOT MatrixStrengths

Weaknesses

Opportunities

Threats

1. Diversify beverage line by offering alcoholic beverages. (S1,

S8, S9, T5)

2. Increase R&D spending to research production methods to

ensure that we are utilizing resources in the most efficient

manner. (S1, S10, T3)

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)

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)

1. Increase sports drink product sales through sponsorship of

collegiate sports. (W2, W4, O1, O6, O9)

2. Increase marketing in Europe. (W1, O4, O6)

3. Take advantage of the increasing demand for bottled

water by creating flavored water drops. (W2, O3, O6, O9)

ST

ST

WO

WT

SWOT Analysis of Coca Cola

BCG Matrix for APPLE

ANSOFF MATRIX – strategy option for strategy determination.

Existing Products New Products

Existing Markets

Market Penetration

Product Development.

APPLE

New Markets Market Development

Coca Cola.

Diversification

Strategy formation

• Strategy option a.

• Strategy option b.

• Strategy option c.

Strategy Evaluation Integration Strategies• We have integrated into many suppliers prior to 2010• We recently purchased CCE which helps integrate our

bottling and marketingProduct and Market Development• We are highly established worldwide prior to 2010Market Penetration• We are currently in 200 different countries prior to 2010Unrelated or Related Diversification• We don’t offer a food segment (Unrelated)• None of our main competitors offer an alcoholic beverage

(Related)

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.

Any Questions ???