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UCAM MBA Programme

TÍTULO Corporate & Business Strategy


Subtítulo

Strategic Business Orientation


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

MBA | Corporate & Business Strategy| Nalin Anthony


Topics Covered
1. Strategic business orientation

2. Strategic analysis

3. External appraisal ( MACRO environment / industry attractiveness)

4. Internal appraisal ( competencies / competitive advantages / value chain)

5. Industry life cycles & business portfolio management

6. Building long term competitive advantage

7. Strategic choices for businesses

8. Strategies for corporates / conglomerates


Setting the Ground

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

MBA | Corporate & Business Strategy| Nalin Anthony


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
knowing oneself, in
others and is not
every battle certain
summoned by them.
defeat.
MBA | Corporate & Business Strategy| Nalin Anthony Sun Tzu 300 BC
Strategy
The buzz word ……..
Least understood concept in Business !!

MBA | Corporate & Business Strategy| Nalin Anthony


Strategy

Strategies are about making


Choices. Chose to be
different
Prof. Michael Porter

MBA | Corporate & Business Strategy| Nalin Anthony


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

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
When all the airlines kept adding benefits and passenger luxury, who
thought one could cut frills and still make a high profitable air-line ?

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
Bajaj Auto
“Do what you think is best and be the best in what you do”

f r om
m ove but
d to y c le e
id e t o r c t h
d e c M o i a to
a id ,I t o I n d
e s te rs r om
m o o f
“so p Sc oved
a m
che e, I A u to
m aja j
for ” o f B
r ld M D
wo Bajaj ,
iv
Raj

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 lies
an organisation’s decision
what not to do.

Prof. Michael Porter

MBA | Corporate & Business Strategy| Nalin Anthony


Case-3

MBA | Corporate & Business Strategy| Nalin Anthony


Strategy & Competitive Advantage

Business Strategy aims at building


sustainable competitive advantages

MBA | Corporate & Business Strategy| Nalin Anthony


What is competitive advantage ?
Valuable

Unique Resources

Competitive Rare
# Consistently Outperform it’s Rivals
Advantage
# Consistent high performance

Unique Difficult
Capabilities to imitate

Lack
Substitute

MBA | Corporate & Business Strategy| Nalin Anthony


MBA | Corporate & Business Strategy| Nalin Anthony
Discussion
1. Does the company enjoy a competitive advantage ?

2. Is the competitive advantage based on, ‘doing what other


firms cannot do’ or ‘doing what other firms do but doing it
better’ ?

3. What factors make the source or sources of company’s


competitive advantage difficult to imitate ?

MBA | Corporate & Business Strategy| Nalin Anthony

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