SPI course_Session 1-3

8/7/2019 SPI course_Session 1-3

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Strategic Planning and Implementation

Session 1-3: Getting Started

Feb 2011


2/16

On the agenda today

Source: Indo American Chamber of Commerce

Thinking about strategy2.

First things first

First things first1.

1.

Vision and mission3.


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Your course facilitator


Academic and professional summary

PGDM from IIM Lucknow and Hotel Management from IHM Lucknow. A practicingbusiness researcher and consultant with diverse industry experience of a decade.

Currently working with Religare as VP, Research and Analytics, and was earlier Director,

Research and Head of Operations at RocSearch India. Prior corporate stints include brand

management and sales with Eli Lilly, project management and NPPD with Ranbaxy, and

restaurant operations with Wimpys

My enduring passions

teaching, training, cooking, and travelling Potential avenues of association

vocational electives, skill development modules, and faculty for Marketing, Strategy and

OB/HR

An indicative menu of self-designed electives and training modules

Global Outsourcing: A Strategic Imperative (designed and conducted a full credit

course for PGP 2 students in JP Business School, Noida)

Consulting Management (designed and conducted a full credit course for PGP 2

students in JP Business School, Noida) Learning with Cases (A three-day induction module for PGP 1 students, conducted

in ICFAI Gurgaon and MDI)

Past association as visiting faculty with b-schools in Delhi & NCR

Corporate training assignments and offsites in team building and communication


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Course OutlineSession Lecture Topic (Schedule) Related Article (A), Case,Chapter

1-2 Introduction to Strategic Management Operational effectiveness (A), Comcast Case, C-1

3-4 Understanding related concepts-

vision, mission, goals, objectives

Theory of business (A), Building vision (A), Yahoos mission

and core values, Archies case, C-2

5-6 External Environment Analysis Cheaper steel may be radioactive case, C-3

7-8 Internal Environment Analysis Core Competence (A), Competitive Forces (A), Subhiksha

case, C-4

9-12 Analyzing a companys corporate

decisions

Corporate strategy (A), Tatas going global case, C-4

13-14 The five generic competitive

strategies

Wal Mart case, Harley Davidson case, C-5

15-16 Understanding and evaluating

strategic choices

Diversification and logic of strategic alliances (A), Hero

Honda case, ITC case, C-6

17-18 Strategic issues in entrepreneurial

and small businesses

Strategic and entrepreneurial orientation (A), Balaji Film case,

C-8

19-20 Competing in foreign markets Starbucks case, C-8 International Business by Hill and Jain,C-7 in core text book

21-22 Understanding implementation issues Implementing strategy (A), Silent killers of strategy

implementation (A), C-11

23-24 Understanding strategy monitoring

process

Balanced Scorecard (A), Whirlpool case

25-27 Team project presentations


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Concept BuildingPedagogy


Lecture Sessions

Using a mix of presentations, experience

sharing, and theoretical inputs from course

textbook and management literature

Reading Material

Selective articles on the consulting management

process and the management consulting practice

Case Discussion

Understanding the real-life decision-making

environment and learning vicariously

Approach 1:

Concept Building


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Concept ApplicationPedagogy


Lectures and Practice Workshops

group activities in the classroom to develop

Big Picture thinking and analytical skills

Live Assignment

These term projects will revolve around a

real-world business problem

Role plays and Simulation

Blending in case discussions in the class with

step-into-the-shoes-of-decision-makerexercise

Approach 2:Concept

Application


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4 ground rules.

Thou shalt read the assigned case and course

material before every session

Thou shalt be punctual in attending classesand submitting assignments

Thou shalt not indulge in cross-talks or

frivolous discussions in the class

Thou shalt switch off the phone or put it onsilent mode during the class


8/16

On the agenda today






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The origin of strategy is in The Art of War

War is a very grave matter for the state and must not becommenced without due consideration

Sun Tzus

treatise is2600

years old!

Teaches military commanders the importance of recognizing

strategic opportunities and not to create opportunities for theenemy

Some Messages

An armys opportunities come from the openings in theenvironment caused by the relative weakness of the enemy

in a specific area

Teaches military commanders the importance of recognizingstrategic opportunities and not to create opportunities for the

enemy


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What is Strategy some starting thoughts

The determination of the long-run goals and objectives of an enterprise, and the

adoption of courses of action and the allocation of resources necessary forcarrying out these goals.Alfred D. Chandler,

Strategy and Structure: Chapters in the History of an Industrial Empire

What strategy is all about is competitive advantage the sole purpose ofstrategic planning is to enable a company to gain a sustainable edge over its

competitors. Kenichi Ohmae,The Mind of the Strategist

Strategy is a plan, a How of getting from here to there. Henry Mintzberg,TheRise and fall of strategic planning.

Strategy is about being different by deliberately choosing a different set ofactivities to deliver a unique mix of value. Michael Porter, Competitive Strategy,

Harvard Business Press.


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3 characteristics of strategic decisions

1. They are of short- and long-term significance

Can Hindalco be a global player overnight?

2. Involve a substantial resource commitment

Sanofi-Aventis acquiring Genzyme for US$ 20 billion

3. Not at all or not easily reversible

Can Apple become Microsoft ?


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The fallacies of strategic planning

The Fallacy of Prediction

The external environment, particularly competitors behaviour, can not

be predicted with any degree of accuracy.

The Fallacy of Detachment

Strategy formulation can not be detached from the broader process of

managing and is not about a rigid design process whose outcome is astrategy document. Strategy is continuously evolving; it must combine

both deliberate formulation and elements that emerge through the

process of management.

The Fallacy of Formalization

Formal procedures for strategy formulation have advantages of

systematization, but lack the flexibility inherent in informal systems

required to cope with discontinuity and promote organizational learning.

Source: The Rise and Fall of Strategic Planning, Henry Mintzberg


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The strategy-making process: what works better?

RATIONALIST SCHOOL EMERGENT SCHOOL

Strategy formulation is the preserveof top management and is a top-

down process

There is a divide between

formulation and implementation,with organizational responsedelivered in a programmed manner

Includes rational control, systematicanalysis of competitors, markets,company strengths and weaknesses,

the combination of these producing

clear, full-blown strategies

Strategy formulation is aparticipative activity, as it...

... emerges through organizationallearning, and complex interactions

between an organization and itsenvironment

Strategy is crafted i.e. more thanthinking and reason, experience andinvolvement are of significance

Formulation and implementationmerge into a fluid process oflearning through which creative

strategies emerge

How did the Japanese conquer the world? Business is business or chess???


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Evolution of strategic management

1950s

1960s

1970s

1990sand

beyond

Dominant theme Main Focus Principal concepts and techniques

Budgetary planning

and control

Financial control

through operating

budgets

Financial budgeting

Investment planning

Project appraisal

Corporate planning Planning growth Market forecasting

Diversification and analysis

of synergy

SBU as unit of analysis

Portfolio planning matrices

Analysis of experience curves

1980s Analysis of industryand competition

Quest for competitive

advantage

Portfolio planningCorporate strategy

Choice of industries,

markets, and

positioning

Analysis of industry structure

Competitor analysisPIMS analysis

Sources of competitive

advantage and core

competence

Resource analysis

Dynamic analysis: speed,

first-mover advantage


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On the agenda today






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Organizational Mission and Vision

Googles mission is to organize the worlds information and to make it universallyaccessible and useful

At Microsoft, our mission and values are to help people and businesses throughout

the world realize their full potential

Our mission is to be the most essential global internet service for consumers and

businesses [till 2007]

To connect people to their passions, communities and the worlds knowledge [2007-

2009]. To ensure this, Yahoo offers a deep array of products and services to createunique and differentiated user experiences and consumer insights by leveraging

connections, data, and user participation

Appearance of the term vision for the first time: Yahoos vision is to be the centre of

peoples online lives by delivering personally relevant, meaningful internet experiences

[Sep, 2009]

Documents

SPI course_Session 1-3