UCAM MBA Programme

TÍTULO Corporate & Business Strategy

Subtítulo

Strategic Business Orientation

Nalin Anthony
MBA, M.Sc.(Fin), ACMA,MCIM,CFS,LLB

MBA | Corporate & Business Strategy| Nalin Anthony

 Topics Covered

1. Strategic business orientation, strategic management process

2. Organization's external appraisal (environment & industry)

3. Organization's internal competencies (capabilities & resources)

4. Getting the right alignment and building unique position

5. Options for strategic business units (SBUs)

6. Strategies for corporates / conglomerates

7. Building strategic plan and managing execution

 Setting the Ground

Nalin Anthony
MBA, M.Sc.(Fin), ACMA,MCIM,CFS,LLB
MBA | Corporate & Business Strategy| Nalin Anthony
 Strategy
The buzz word ……..
Least understood concept in Business !!

MBA | Corporate & Business Strategy| Nalin Anthony

 One who takes
Knowing the other What Strategy is NOTposition first at the
and knowing
battleground and
oneself, in one
awaits the enemy is at
hundred battles, no
ease.
danger.
One who takes
Not knowing the
position later at the
other and knowing
battleground and
oneself, one victory
hurry to do battle is at
for one loss.
labor.
Not knowing the
Thus one skilled at
other and not
battle summons others
knowing oneself, in
and is not summoned
every battle certain
by them.
defeat.
MBA | Corporate & Business Strategy| Nalin Anthony Sun Tzu 300 BC
 Strategy

Strategies are about making

Choices. Chose to be
different
Prof. Michael Porter

MBA | Corporate & Business Strategy| Nalin Anthony

 80 out of 100 start-ups fail within the first 18 months.
95 out of 100 new businesses fail within the first 48
months. A whopping 80%-95% crash and burn.
Bloomberg – 2017

Can you guess why ?

MBA | Corporate & Business Strategy| Nalin Anthony
 ‘Only 10% of new products / businesses that actually cerate
a category. The rest intends to serve an existing category’
Al Ries

MBA | Corporate & Business Strategy| Nalin Anthony

 Case-1
Who thought, when all airlines were adding benefits and passenger
luxury, one could cut frills and still make profitable business ?

Case-2

MBA | Corporate & Business Strategy| Nalin Anthony

 Strategy = Principle

“Have a core principle,

everything else is just
tactics”
Nelson Mandela

MBA | Corporate & Business Strategy| Nalin Anthony

 Case-2
Pulsar – Bajaj Auto
“Do what you think is best and be the best in
what you do”
The question was, what did ‘best’ mean to
our business? - Rajiv Bajaj , MD of Bajaj Auto

MBA | Corporate & Business Strategy| Nalin Anthony

 Strategy v Tactics (Efficiency Vs Effectiveness) Matrix
Strategy
Effective Ineffective

Efficient
A B

Operation

C D
Inefficient

MBA | Corporate & Business Strategy| Nalin Anthony

 Strategy

The essence of strategy is

choosing what not to do.
Prof. Michael Porter

MBA | Corporate & Business Strategy| Nalin Anthony

 Case-3 King Fisher was a successful regional
beverage business. It had no business
to get into aviation. Look what
happened. It found it’s faster route to
the grave-yard.

MBA | Corporate & Business Strategy| Nalin Anthony

Business Strategy
'Strategy is the direction and scope of an
organisation over the long term, which achieves
advantage for the organisation through its
configuration of resources within a changing
environment, to meet the needs of markets and to
fulfil stakeholder expectations.'
Johnson & Scholes (2002).

'Strategy is concerned with an organisation's

basic direction for the future, its purpose, its
ambitions, its resources and how it interacts with
the world in which it operates.'
Lynch (2000).
MBA | Corporate & Business Strategy| Nalin Anthony
 Managing Stakeholder Expectations

MBA | Corporate & Business Strategy| Nalin Anthony

 Strategic Planning Process

Corporate Strategic Plan

Strategic Business Unit’s Strategic Plans

SBU-1 SBU-2 SBU-3 SBU-4 SBU-5

SBU-1 SBU-5
Subsidiray-1 Subsidiray-1

SBU-1
Subsidiray-2

MBA | Corporate & Business Strategy| Nalin Anthony

 Practical Strategic Plan

1. Determine Position

2. Develop Strategy

3. Build the Plan

4. Manage Performance

MBA | Corporate & Business Strategy| Nalin Anthony 18

 Determine Position

•Identify strategic issues to address

•Environment & industry appraisal - opportunities & threats

•Customer insights - current position Vs future demands

•Value creation, competency gaps - Strengths & weaknesses

•SWOT
MBA | Corporate & Business Strategy| Nalin Anthony
 Develop Strategies

•Alignment –purpose, core beliefs and desired image

•Ways to compete – firm’s desired unique position

•SBU / Corporate strategies

MBA | Corporate & Business Strategy| Nalin Anthony

 Build the plan

•Set priorities – towards expected SWOT

•Organizational goals (medium term frame / one year plan)

•Set KPIs – Cascading goals into manageable targets

•Budget – One year detailed budget & plan

MBA | Corporate & Business Strategy| Nalin Anthony

 Manage Performance

• Rollout – Organization-wide communication of the plan

• Set calendar – Establish periodic progress review

• Leverage tools – train the team to use different tools

• Update annually – review year-end & plan next year

MBA | Corporate & Business Strategy| Nalin Anthony