2012-2013

BUSINESS STRATEGY FOR 21ST CENTURY

TURNAROUND MANAGEMENT

Aditya
THIRD YEAR BANKING & INSURANCE

PROJECT ON
BUSINESS STRATEGY FOR 21ST CENTURY
BACHELOR OF COMMERCE BANKING & INSURANCE SEMESTER VIth (2012-2013)

SUBMITTED BY GUIDED BY

ACKNOWLEDGEMENT
During The Perseverance Of This Project, I Was Supported By Different People, Whose Names If Not Mentioned Would Be Inconsiderate On My Part. I would like to Extend My Sincere Gratitude and Appreciation to Prof. SANJEEV PRASAD Who Initiated Me into the Study of "BUSINESS STRATEGY FOR 21ST CENTURY " It Has Indeed Been A Great Experience Working Under Him During The Course Of The Project For His Invaluable Advice And Guidance Provided Through Out This Project.

DECLARATION

Date:-__________ Signature of the student Place:-__________

INDEX
SR. NO. 1 2 3 4 5 TOPIC INTRODUCTION 21ST CENTURY STRATEGY PROBLEMS IN BUSINESS STRATEGY CHALLENGES IN 21ST CENTURY PG.NO 6 10 11 15

Marketing Strategies for the 21st Century

CONCLUSION BIBLIOGRAPHY

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INTRODUCTION
Business (or Strategic) management is the art, science, and craft of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. It is the process of specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs. Strategic management seeks to coordinate and integrate the activities of the various functional areas of a business in order to achieve long-term organizational objectives. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. Strategic management is the highest level of managerial activity. Strategies are typically planned, crafted or guided by the Chief Executive Officer, approved or authorized by the Board of directors, and then implemented under the supervision of the organization's top management team or senior executives. Strategic management provides overall direction to the enterprise and is closely related to the field of Organization Studies. In the field of business administration it is useful to talk about "strategic alignment" between the organization and its environment or "strategic consistency". According to Arieu (2007), "there is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context."

The Power of Purpose

In the 20th century, business success was often defined in terms of profit and growth. Ironically, such a limited definition in the 21st century can constrain potential profit and growth and worse yet, endanger a company's ability to stay in business. Unboundary -- which often works with companies in the midst of change -believes that society expects more of business today, that firms with true loyalty and support are those who pursue purpose as well as profit. Unboundary says this new world demands a new business standard for success. They call it significance. By that unboundary means significant to society as a whole. In other words, companies must consider creating and maintaining a meaningful relationship with everyone effected by the company's operations, not just shareholders. "We've seen the power of companies when they pursue a well understood purpose. Our aim is to use our talents for the greatest good, on behalf of our clients and everyone whose interests and lives they touch. "

If the quote above sounds to you remarkably similar to something you might hear from civil society, then you have picked up on a key point. Unboundary's new focus on significance rejects last century's for-profit/non-profit dichotomy. It suggests that good business in the 21st century will be business that is good for humanity.

Constant, Conscious Evolution

Tod Martin is the CEO of unboundary. He's led the company for 12 of its 24 years, always with the aim of pushing the edge of design, strategy and communications. Martin says unboundary chose to stay small and resist being put in a niche. Somewhere along the way, probably in 1997 or '98 , we were this mustard seedsized company [16 people] which had had a pretty amazing impact -- on the turnaround at IBM, helping [ Roberto] Goizuetta quadruple the market value of Coca-Cola -- so some fairly significant things. And lots of people were attracted to our work, so opportunity was ripe and yet we were trying to figure out... what is it that we've created and how do we make sure we don't lose it. And I think it was a great moment of reflection, conscious introspection, but also a recognition that it wasn't about trying to stay what we were. It was about trying to know what was valuable about what we were and how would we evolve with that... And that's an important part of the operational story internally here -- that we can and should constantly, consciously evolve.

The Path to Purpose & Significance

Martin gave me an insight into how unboundary found its current business approach. Here are some of the key points:

Where Businesses Get Stuck -- Umair Haque, who blogs on the Harvard Business Magazine, wrote: "Most companies have only ever conceived of themselves as being in business." This may sound self-evident, but Martin says it's very important. "They've never really thought of themselves as citizens. They have citizenship programs, and corporate social responsibility and philanthropy but ... most companies never deliver on what really counts -- making people, communities and societies tangibly better off. This is where businesses get stuck ."

Declaration of Purpose -- "There is a need... to be declarative about what it is you're trying to create -- a sense of purpose," says Martin: "There is probably no greater example than the Constitution of the United States of America which is actually a document created out of a certain bit of anarchy. The Constitutional Congress was actually an illegal meeting, done in a backroom. Ratification was a fairly crazy part of the life of the country where you had Federalist against anti-Federalist ... This whole sense is that purpose doesn't necessarily come about in a completely orderly fashion, that someone has to ... push for something more and defend why it might be good."

The Great Re-Think -"We believe there is a great re-think going on in the world, that people are questioning lots of things and that the questioning is driven by technology... People once thought [they had] isolated or individual opinions. They're now discovering that actually lots of people think like them and it's driving a conversation about capitalism, education, health care, transportation, energy, right down the line. And in that context, there are a lot of companies who are beginning to say we have a conventional way of doing things, but we either see that things are changing or we believe that there's a better way of doing it."

21st Century Strategy

Man cannot discover new oceans unless he has the courage to lose sight of the shore wrote the French author Andre Gide. In very much the same way, we cant manage strategy in the 21st century without discarding the comfortable dogmas of the 20th century. Much of our strategic doctrine comes from an industrial age in which products were fairly uniform and success was highly contingent on the ability to move around men and materiel efficiently. Thats still important, but not a source of sustainable competitive advantage. Today, we dont produce products as much as we design them and that calls for a strategic shift. To embrace the future, we must, in a very conscious way, let go of the past and move from a planning mentality to one that integrates skills and information in an emergent context.

The Origins of Corporate Strategy

The corporation is a relatively new thing. Formally, the first one was British East India Company, but the notion didnt really take hold until Cornelius Vanderbilt and the railroad barons. It probably reached its apex with Alfred Sloan and General Motors. Companies were split into divisions, each with their own leadership. Orders flowed downwards and your rank determined your responsibility. This type of organization made sense given the organizational objectives at the time. As Ronald Coase noted in his 1937 paper, The Nature of the Firm, the reason firms came to exist was to minimize informational and transaction costs. In other words, they were originally conceived to create efficiency rather than value. It was in this context that strategic planning took hold. The idea was that senior executives would form concrete objectives and form plans that would achieve them. Guidelines, approved techniques and checklists would be created along with budgets and auditing procedures in order to ensure that strategies were implemented faithfully.

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PROBLEMS IN BUSINESS STRATEGY The Fall of Strategic Planning

As Henry Mintzberg describes in his now classic management text, The Rise and Fall of Strategic Planning, although strategic planning came to be widely considered best practice at most corporations, by the 80s the seams started to show, Planning consumed more and more management time and effort while it became increasingly removed from the day-to-day practicalities of running the business. Problems not anticipated by the plan were treated as if they didnt exist, while opportunities not anticipated by the plan were ignored. Worse, planners tended to focus on sexy strategies like mergers and acquisitions that they could control and execute, rather than the increasingly abstract (to them) details of operating the core business. Things came to a head when Jack Welch took the helm of General Electric and largely dismantled the strategic planning process. That was like the Pope giving up the sacraments. As he said at the time,the books got thicker, the printing got more sophisticated, the covers got harder and the drawing got better, but none of that improved how the company performed.

From Atoms to Bits

In addition to the innate problems with planning, a fundamental shift in the business environment has taken place. We are no longer in an industrial age, but an informational one. We are less concerned with moving atoms from place to place than we are focused on the velocity of ideas. Efficiency has been devalued in favor of value creation, which emerges when the right ideas combine to solve important problems. There is very little evidence that companies like Google or Facebook are more efficient than their rivals. Apple, a much older company, has evolved an advantage in manufacturing efficiency, but that has manifested itself in higher margins, not lower prices. Further, their products are considered premium not because they are considered more powerful, but better designed.

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The trend toward design will only become more pronounced in coming years as new technologies like additive manufacturing and programmable matter come online. When we can economically print out objects that a design specifies (additive manufacturing) and reprogram objects to form new shapes and functions (programmable matter) efficiency loses its meaning. Design then, is rapidly becoming the product itself and design is dependent on ideas, not atoms. Ideas, of course, cant be controlled, but must be enabled.

Emergent Strategy
Clearly, if the planning approach ran into problems in the slow moving industrial ecconomy, its flaws are exacerbated in the hyperkinetic digital age. Mintzberg summarizes the problem in this graphic.

While decision making power rests with senior management, most of the information lies much lower down. Therefore, while we must plan for the future, we must also do so with the understanding that our our strategy will be, at least in part, flawed either because it was based on incomplete information to start with or because facts simply changed on the ground.

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The result is an emergent strategic process that looks like this:

Probably one of the best examples of successful emergent strategy is Andy Groves fateful decision to pull Intel out of the memory chips business and bet the company on microprocessors. Although many still see this as the work of a lone genius, Grove himself describes the situation much differently in his book, Only the Paranoid Survive. In actuality, most of his factory managers had already shifted production long before Grove made the final decision. His bold move had less to do with strategic thinking than it than it did with effective listening.

Additive Strategy
So what to do? Should we just fire all the managers? As Gary Hamel wrote in this HBR article, some companies are actually going that route, but that is far from a universal solution. What we need is a more realistic view of what strategy is and what management can achieve. First, managers need to come to terms with the fact that control, in a world where value is created by ideas, has become an illusion. The lunatics run the

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asylum. Senior managements function has largely become one of imbuing the organization with the autonomy, mastery and purpose that is essential to any high performing organization. Second, we need to face the fact that no one can own strategy anymore. The world has grown too complicated. Insight requires not only intelligence and expertise, but synthesizing information from disparate domains. Strategy has become, in effect, additive, where objectives must be met by a network of operational layers that need to inform one another. The core skill of strategic management must therefore be managing the interfaces between varied groups of highly skilled knowledge workers. The strategist, then, must evolve from a master who gives the orders to a facilitator who makes the process work.

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Challenges for the 21st Century

The global marketplace has developed because of factors such as explosive growth in world GDP, rapid expansion in merchandise trade, cost cutting and improvement of product quality by firms seeking competitive advantage, and a revolution in communication technology. The rise of great global corporations has also been influenced by the growth of large pools of liquid funds and more efficient capital markets to deploy them quickly; and improved financial, logistics, and business management techniques. Both corporations and governments have their respective roles to play in order to meet the global competitive challenges. Organizations that want to maintain leadership in the economy and the technologies that are going to emerge in the future need to give enough consideration to the social position of the knowledge professionals and their values. With e-business, the speed and quality of delivery can become competitive factors for an organization. Any organization that can organize delivery can operate in any market without maintaining its physical presence there. In the 21st century, the CEOs have to live up to the demands of better corporate governance, and they need to adopt an approach toward information that will help the organization exploit the enormous potential of information technology and systems for creating and sustaining a competitive advantage

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Marketing Strategies for the 21st Century Target audience

Identifying and defining the target audience is the first step in devising a marketing strategy. Because orthotists and prosthetists provide services for patients, marketing directly to patients is the first and obvious choice. However, marketing to other audiences is equally important. We consider who our audience is, and obviously we serve the patient, but as we serve the patient, we are serving the patients family. We are also serving the therapist who works with the patient and the doctor who has performed surgery or other procedures on that patient, Jon Jones, marketing director for Capital Prosthetic & Orthotic Center, said. So while we are strategizing how to effectively market, we take different opportunities to reach these different audiences as it applies to them. Jones noted that it is often families of patients rather than patients themselves who use the Internet to learn about an O&P practice. Having a website geared to both patients and their families can help draw new patients to a practice, and then after the initial contact has been made, marketing efforts can be shifted directly to the patients themselves. The various referral sources also represent other target audiences for O&P marketing efforts. Alexander Lyons, CPO, president of Lyons Prosthetics & Orthotics Inc., noted that patients generally find their way to an O&P office through referrals made by physicians, physical therapists, hospital staff, case workers or even family members who may have been through a similar experience.

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Patient feedback
Obtaining customer feedback can help guide marketing strategies. Orthotists and prosthetists serve patients at an extremely vulnerable time in their lives, and getting insight from patients can be helpful before a new marketing strategy is instituted. Basically, in this business and almost all businesses, we sell hope, and specifically in our business, hope is something that we do real naturally, Lyons said. When I am coming up with an idea for marketing, I like to get customer feedback. I am constantly trying to track how patients found out about us, trying to get the feedback, and I have everybody in the office watching for that. Before implementing a marketing effort, such as handing out pens or other giveaways, Lyons noted he tests the idea first by forming a focus group and seeking feedback from customers to find out if that really makes a difference in how they learn about us. Lyons referred to this strategy as putting out bait.

Education and training

Participating at meetings and events sponsored by organizations that represent and support O&P patients can be a valuable marketing tool. Warren R. Mays, CPO, president of Artisan Orthotic-Prosthetic Technologies Inc., said he has often volunteered to speak about O&P services at meetings of organizations such as the Muscular Dystrophy Association or the American Cancer Society. That is a way to get out and not only meet patients but also be recognized as an expert in your field since you are the speaker, Mays said. That has been a very successful marketing tool for us. Providing training for physical therapists is also helps practitioners gain recognition and ultimately increase referrals. Mays regularly offers a continuing education series of courses for physical therapists. I am in front of them once every couple of months talking about the things that are important to us and how to manage amputees and how to teach amputees how to use their prosthesis. So again we become the go-to person on behalf of the therapists, Mays said. When they have a problem or they see an amputee who is not doing well with their prosthesis, a physical therapist will give me a call and say, Hey, I remember you from those lectures. I have this patient

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who is not doing well. Would you mind coming and taking a peek at them with me? Jones noted that O&P practitioners at his company also provide training to physical therapists. The training helps practitioners and physical therapists work together as a team so that patients can resume as normal a lifestyle as possible. We like to provide training that gets them to the same point of view that we share in different product usage, different innovations in technology and those things that they are not exposed to in their day-to-day hands-on operations, Jones said. We like to educate them on those things so now we are working from the same vantage point, the same perspective when we are giving patient care. With that kind of teamwork, the patient is really going to benefit. Similarly, Lyons said he volunteers his time and teaches at a local college in both the nursing and physical therapy programs, which indirectly garners patient referrals from students after they graduate and begin practicing. I am a big advocate that you use the strengths that you already have. In other words, if you spend all your time trying to become good in your weakness areas, then you become just that, good. If on the other hand, you build upon your strengths, then you become excellent. That should be one of our goals, to become excellent. For example, I really enjoy teaching and at times I get feedback that I do a good job when doing that. To capitalize on this strength, I focus on putting aside more time to teach in order to develop excellence at that task. To cover my weak areas, I try to enlist people who are experts in the areas that are weak for me. Lyons said. Event-driven marketing is another strategy that can be used to advertise programs or events sponsored by O&P practices and geared to patients. For example, special events or seminars to introduce patients to some of the newer and more technologically advanced prostheses can be marketed using serial advertising. If we are having an event for people with above-knee amputations that introduces them to the C-Leg or the microprocessor knee, we will take a different marketing strategy. We will advertise on the radio for such an event Coming up in 20 days; register now but we do not typically keep an ongoing radio branding program running, Jones said.

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Print advertising
Another staple of marketing strategies is print advertising. Ongoing advertising in local newspapers can help increase name recognition of a practice. Lyons said he has been running different advertisements, just small little blurbs in weekly newspapers for approximately 2 years to keep our name out there. Newspapers also can serve as a conduit for human interest stories, relating innovative techniques developed and used by an O&P practice. We recently had a local newspaper come out and run a front page article in their Sunday paper that really just told our story about something that one of our practitioners had done pretty uniquely, Jones said. I contacted the newspaper directly and said, Here is what our prosthetist has done recently and we think this is pretty slick, and they agreed. They came right out and did an interview.

Marketing consultants
Seeking help from marketing consultants can be an option for O&P companies when developing or implementing marketing plans and strategies. Elizabeth Mansfield, president of Outsource Marketing Solutions, describes this as central fab for marketing. When I explain my services and I am talking to practitioners, I sa y it is like central fab for your marketing services because they understand central fab when it comes to prosthetics and orthotics. They went to school, they do it and they know how to do it but sometimes they just get too busy so they have somebody else do the fabrication, Mansfield said. Marketing services provided by consultants can encompass a variety of strategies and can be custom-fit to a practices needs. Depending on the type of services needed, a practice can choose to work with a marketing consultant either locally or remotely. Mansfield noted the important thing is for any consultant to have an understanding of the O&P industry as well as what goals a practice wants to achieve with its marketing plan. Marketing is marketing, and you can use all of the same techniques for all different kinds of businesses, from a bakery to a dog walking business to O&P, Mansfield said. But if you are using somebody who is just a general marketing consultant, you really want to make sure that they understand what you are doing

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and the business itself because the techniques are the same, but they have to understand the business that you are in for them to do a good job for you. In addition, consultants can provide ongoing or as-needed help with marketing. Services can range from monthly e-mail newsletters to what Mansfield describes as a one-day marketing book camp during which she will help companies devise a complete marketing plan. Basically, at the end of it, the point is to have a plan in place so tha t they can go ahead and start doing that, Mansfield said. To bring somebody in to do a review and an analysis of where you are and compare that to where you have been and where you want to go is always good. However, when using outside marketing consultants or firms, Mansfield cautions owners against second-guessing themselves if they do not agree with the direction or the recommendations being suggested. You understand all about your business so just because somebody is an expert in marketing does not mean that when they come in there and start saying things that maybe you do not agree with or that you do not think is the right way to go, you should not second-guess yourself if you really do not think that is how your company should be marketed, she said.

Websites
Since the advent of the Internet roughly 15 years ago, people have increasingly turned to websites for easily accessible information about virtually everything, including health care and health care providers. As a result, one key aspect to any companys marketing plan should be its website, which should at a minimum come up on search engines with key words that describe services. In my case, I have certain key words in the opening paragraph of my website that pop up when patients do a search, such as prosthetics, orthotics, scoliosis, Portland, Oregon, Washington, that describe our region and the services that we offer, Mays said. At a minimum, Mansfield recommends that every O&P business have at least a one-page website that lists an address and phone number so that patients can easily find a practices location.

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Putting together a website is hard work, and the single biggest block for people is compiling enough content to be able to hand it to a web developer so they can successfully complete the site, Mansfield said. It is especially difficult with prosthetics and orthotics; it is not like they can make up a whole bunch of stuff for you. Even if you just have a minimal amount, it is so much better than having nothing at all. A dynamic website with regularly updated or changing information can serve to draw in a large number of people that can include not only patients, family members and the general population but also health care providers. To make his companys website more dynamic, Lyons regularly incorporates information and stories from a monthly email newsletter. Features of the newsletter include a video story and an ask the orthotist-prosthetist section, as well as a patient profile. I try to put pertinent information in my newsletters, then I try to take that content and pass it over to the website so that it is constantly changing, Lyons said.

Social networking media

Social networking media that are accessed online or from mobile devices such as Smart phones and iPads also can be used as marketing tools by O&P companies. Facebook, which was launched in February 2004, now boasts a global network society of more than 500 million users. Twitter also is a global networking society that has become widely used since its introduction in 2006. Both Facebook and Twitter are free sites that can easily be used by O&P practices as valuable marketing tools, to attract both patients and customers, and also to track competitors. Mansfield recommends that all businesses establish both Facebook and Twitter business accounts so that nobody else takes your name, even if the accounts are not used regularly. However, because both Facebook and Twitter accounts can be maintained at no cost and are easy to use and update, she encourages practices to include both as part of their marketing plan. You do not even need a regular website right this minute if you just want to go in there and set up a business Facebook page for your company because you can do it for free and you can do it within 2 minutes, Mansfield said. It is something that is really useful and works very well with O&P because prosthetics and orthotics is so visual.

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She also recommends that practices assign employees who are personally familiar with Facebook and Twitter to generate content rather than recruiting and paying an outside person. Generally, employees who use these social networking sites are already familiar with how the sites work, and as an added bonus, they enjoy using the sites. It is a minimal amount of content that you have to generate, and so you really do not need to pay somebody to generate that content for you because you have it right there in your office, Mansfield said. Why would you want to pay somebody to socially network for you when you can do that yourself? In addition, having an employee maintain Facebook and Twitter accounts helps ensure that the content remains authentic and is pertinent to the practice. It is a fabulous time to be a small business trying to market yourself and your company because of all of these tools available to, Mansfield said. Everybody can be global and have access to the same tools. Your employees have changed. They are not coming to work for a pay only any more. They expect to be included in all conversations about their own future and well being and the company they work for is in the midst of it. Social media interaction has become part of our routine daily activities (for most of us with access to Internet either via PC or phone) and the way we test and refine our ideas before turning them into action. Board members cant expect to make and validate their decisions behind closed doors and enjoy unquestioned buy-in and commitment from employees any more. In order to fully commit, an employee must UNDERSTAND and BELIEVE in what he/she is doing before that. 21st century employees expect to be involved in the pre-strategy-formulation forums where they can bring their own ideas into the process. This is the only way to do true empowerment and create a sense of MUTUAL ACCOUNTABILITY for a successful strategy execution between the board and employees.

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CONCLUSION
Business (or Strategic) management is the art, science, and craft of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. It is the process of specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs. Strategic management seeks to coordinate and integrate the activities of the various functional areas of a business in order to achieve long-term organizational objectives. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives

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BIBLIOGRAPHY
www.Wikipedia.com

www.ANSWERS.COM
From the Turnaround management textbook of T.Y.B & I TURNAROUND MANAGEMENT-SHASHIKANT D.APHALE TURNAROUND MANAGEMENT-CHANDRA HARIHARAN IYER

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