Professional Documents
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Strategic Management-1: Dr. Kamal Kishore Sharma
Strategic Management-1: Dr. Kamal Kishore Sharma
Role of Opportunity?
Why do you need a Strategy?
Strategy Approach Opportunity Approach
• Known environment • Unknown environment
• Stable environment • Unstable environment
• Building on existing • Building on new
competencies, capabilities, competences, capabilities,
products, markets products, markets
• Need consolidation • Need rapid growth
• Need stability and • Need change, accept
certainty uncertainty
• Lack capacity for flexibility, • Established capacity for
corporate venturing, and flexibility, corporate
speed venturing, and speed
Are these strategies?
“Our strategy is to beat the competition on costs and reach.”
• that adds value for the targeted customers over the long
run by consistently meeting their needs better than the
competition does
• The trick is to have five answers that are consistent with one
another and actually reinforce one another.
The Strategy Drivers
• Tata Steel
• Southwest Airlines
Strategy Drivers/ Levers
• Internal (e.g. conserving liquidity - through reduced spend
management and sharp reduction in working capital levels; Cost
leadership- improvement in the productivity levels and reduction in
overheads; capital expenditure re-prioritised)
• External (e.g. long term capital at competitive rates)
At Tata Steel
• Making the European operations competitive
• Quick completion of the expansion plans in India.
• Investment in raw material assets to provide better raw material
security especially to European operations.
• Vigorous pursuit of continuous improvement across operations.
Tata Steel
• Innovator- technology & human systems
• The culture … of endurance & commitment
• Raw materials security
The Competitive Strategy Process
Formulation of a Strategy - process
• What is business doing now
– Identification of current strategy
– Implied assumtions (SWOT, competition & industry trends)
• The Environment
– Industry analysis (key factors of success)
– Competitor analysis (present & future, possible future moves)
– Societal analysis (Policy changes etc.)
– Strengths and Weaknesses (relative to present and future competitors
• Mission (statement)
– Expression of the business vision
– Communicates the firm's core ideology and visionary goals
– phrasing may change with the times, but the underlying
ideology remains constant
Criteria for Resources and Capabilities That Become
Core Competencies
Valuable
Valuable Rare
Rare
Core
Core
Competencies
Competencies
Nonsubstitutable
Nonsubstitutable Costly
Costlyto
toImitate
Imitate
Vision & Missions at Tata Steel
We aspire to be the global steel industry benchmark for Value Creation
and Corporate Citizenship
We make the difference through:
•Our people, by fostering team work, nurturing talent, enhancing leadership capability and acting with
pace, pride and passion.
•Our offer, by becoming the supplier of choice, delivering premium products and services, and creating
value with our customers.
•Our innovative approach, by developing leading edge solutions in technology, processes and products.
•Our conduct, by providing a safe working place, respecting the environment, caring for our
communities and demonstrating high ethical standards.
Policies - Quality Policy, CSR Policy, Environmental, Occupational Health & Safety Policy, Research
Policy
Core Values - a value – driven organization. Five core values - Integrity, Respect for individuals,
Excellence, Unity, Responsibility