STRATEGIC MANAGEMENT

DEFINITION

Dynamic process of formulation, implementation, evaluation and control of strategies to realize the organizations strategic intent.

FEATURES

It is a process

Establishing strategic intent Formulation of strategies Implementation of strategies Performing strategic evaluation and control

It is a continuous as well as dynamic process It is universally applicable There are levels of strategies Its majorly a top management function

BENIFITS

It facilitates SWOT Analysis

Helps identify strengths Helps identify weaknesses Helps identify opportunities Helps identify threats

It keeps organization dynamic

Tangible as well as intangible benefits

Greater employee motivation

GUIDELINES FOR EFFECTIVE SM

Information system
Adequate resources Competent, dedicated and motivated workforce

Strategic mindset
Creativity

CASE STUDY

Late 19TH Century: Cholera, malaria and plague killer diseases

MAN ON MISSION

In 1884, Dr. Burman embarked on a mission to provide nature-based, effective and affordable treatment for these killer diseases. He adopted Ayurveda.

Dr. S.K.Burman

MAN ON MISSION

Dr. Burman established a pharmacy that set up a manufacturing plant in 1896 & research labs in 1919

It became a full-fledged private company in 1936 In 1986, it became a public limited company
He came to be known as Daktar Burman

1884 1896 Early 1900s 1919

Birth of Dabur Setting up a manufacturing plant Ayurvedic medicines Establishment of research laboratories

1920
1936

Expands further
Dabur India (Dr. S.K. Burman) Pvt. Ltd.

1972
1979 1986 1992 1993 1994 1995 1996 1997

Shift to Delhi
Sahibabad factory / Dabur Research Foundation Public Limited Company Joint venture with Agrolimen of Spain Cancer treatment Public issues Joint Ventures 3 separate divisions Foods Division / Project STARS

1998

Professionals to manage the Company

2000Turnover of Rs.1,000 crores

2003Dabur demerges Pharma Business

2005Dabur aquires Balsara 2005Dabur announces Bonus after 12 years 2006Dabur crosses $2 Bin market Cap, adopts US GAAP 2006Approves FCCB/GDR/ADR up to $200 million 2007Celebrating 10 years of Real 2007Foray into organised retail 2007Dabur Foods Merged With Dabur India 2008 Acquires Fem Care Pharma 2009 Dabur Red Toothpaste joins 'Billion Rupee Brand' club 2010 Dabur makes its first overseas acquisition 2011 Dabur enters professional skin care market 2011 Dabur India acquires 30-Plus from Ajanta Pharma

2012 Dabur crosses Billion-Dollar Turnover Mark

STRATEGIC INTENT
We intend to significantly accelerate profitable growth. To do this, we will:

Focus on growing our core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge of ayurveda and herbs with modern science

STRATEGIC INTENT

Provide our consumers with innovative products within easy reach Build a platform to enable Dabur to become a global ayurvedic leader Be a professionally managed employer of choice, attracting, developing and retaining quality personnel

STRATEGIC INTENT

Be responsible citizens with a commitment to environmental protection Provide superior returns, relative to our peer group, to our shareholders

VISION

"Dedicated to the health and well being of every household"

CORE VALUES

OWNERSHIP This is our company. We accept personal responsibility, and accountability to meet business needs. PASSION FOR WINNING We all are leaders in our area of responsibility, with a deep commitment to deliver results. We are determined to be the best at doing what matters most. PEOPLE DEVELOPMENT People are our most important asset. We add value through result driven training, and we encourage & reward excellence. CONSUMER FOCUS We have superior understanding of consumer needs and develop products to fulfill them better.

CORE VALUES

TEAM WORK We work together on the principle of mutual trust & transparency in a boundary-less organisation. We are intellectually honest in advocating proposals, including recognizing risks. INNOVATION Continuous innovation in products & processes is the basis of our success. INTEGRITY We are committed to the achievement of business success with integrity. We are honest with consumers, with business partners and with each other.

GROUP COMPANIES

Dabur has tried to alter the product concept of ayurveda medicines as consumer products sold over the counter

STRATEGIC PLANNING AT DABUR

Follows a four year time horizon 2002-2006 strategic plan envisaged Dabur becoming a Rs. 2000 crore-company by the period 2006-2007

DABUR PRODUCTS

DABURS STRATEGY FOR NEXT FEW YEARS

Growth through domestic and international acquisitions

Launching new products Penetrating deeper into rural Indian markets

PROCESS OF STRATEGIC MANAGEMENT

Establishing the hierarchy of strategic intent

Formulation of strategies

Implementation of strategies

Performance strategic evaluation and control

Establishing Hierarchy of Strategic Intent

Defining the business Adopting the business model Creating & communicating a vision

Designing a mission statement

Setting objectives

Formulation of strategies

Performing environmental appraisal Doing organizational appraisal Formulating corporate-level strategies Formulating business-level strategies Undertaking strategic analysis Exercising strategic choice Preparing strategic plan

Implementation of Strategies

Activating strategies Designing structure, systems and processes

Managing behavioral implementation

Managing functional implementation Operationalising strategies

Performing strategic evaluation and control

Performing strategic evaluation

Exercising strategic control Reformulating strategies

ENVIRONMENTAL SCANNING

SUB-CHAPTERS TO BE STUDIED

Features of Business Environment Role/Importance of Environmental Analysis Components of Business Environment Business Environment in the Post-Liberalized Period Techniques For Environmental Scanning SWOT Analysis

FEATURES
Environment is inseparable part of Business. Environment is Dynamic. Environment regulates the scope of business. Environment has a direct and long lasting impact on business. Two Components: Internal and External. Environment is complex Environment is Multi faceted.

NEED AND IMPORTANCE

Identify prospects and problems Flexibility

Effective planning
Face competition Formulate strategy

BUSINESS ENV IN POSTLIBERALIZED PERIOD

Changes in Industrial Licensing Changes in Public Sector Policy Changes in Foreign Investment Changes in Foreign Technology Agreements Competition Act,2002 Introduction of FEMA 1999 Reduction of Tariff Barriers Reduction of Quantitative Restrictions Changes in Banking Sector De-reservation of SSI Items

CHANGES IN INDUSTRIAL LICENSING

Abolition of Industrial Licensing

Alcohol Cigarettes Industrial Explosives Defense Products Drugs & Pharmaceutical Hazardous Chemicals

Abolition of Phased Manufacturing Program

Liberalization of Industrial Location

CHANGES IN PUBLIC SECTOR POLICY

De-reservation of Public Sector

Railways
Atomic

Energy Specified Minerals

Autonomy

Disinvestment

CHANGES IN FOREIGN INVESTMENT

Automatic Approval

Guidelines for Foreign Investment

TECHNIQUES FOR ENVIRONMENTAL SCANNING

Forecasting
Spying MIS QUEST