STRATEGIC MANAGEMENT

and CORPORATE
GOVERNANACE

DR.S.Madhivanan
 Strategy intent and its
comparison with - JIO
.
 Strategic intent
• Vision
• Mission
• Objectives
• Goals
 Vision
• Declaration clarifying your business’s
meaning and purpose for stakeholders,
especially employees.
• What are we for and where would be in
future
 Jio vision Statement
• Reliances vision for India is that
broadband and digital services will no
longer be a luxury item.
• Reliance envisions an India where these are basic
necessities to be consumed in abundance by consumers
and small businesses alike, as much in far-flung villages
as in our largest cities.
 MISSION
• Definition of the company's business, who
it serves, what it does, its objectives, and
its approach to reaching those objectives.
 Jio Mission Statement

• Reliance Jio promises to shape the future

of India by providing end-to-end digital
solutions for businesses, institutions and
households and seamlessly bridging the
rural-urban divide.
 GOALS
• Goals are outcome statements that define
what an organization is trying to
accomplish, both programmatically and
organizationally
 Goal of Jio
• Empower every Indian with affordable
access to a digital life—a gateway to the
world—enabled with the world's best
digital technologies.
 objectives
• Business objectives are the results you
are aiming to achieve in order to
accomplish your longer-term company
vision.
 Objectives types
• Economical
• Social
 SOCIAL OBJECTIVES
• The initiatives are truly aligned with the
Government of India's Digital India vision
for our nation.-JIO
 Strategy formulation process
• Setting Organizations’ objectives
• Evaluating the Organizational Environment
• Setting Quantitative Targets
• Aiming in context with the divisional plans
• Performance Analysis
• Choice of Strategy
Strategy formulation
 Setting Organizations’
objectives -
• Objective setting is the way to meet up
their planned goals in a realistic
timescale.
• Objectives helps to define what each
department's and employee's
responsibilities are within the
organization
 Evaluating the Organizational
Environment
• To evaluate the general economic and
industrial environment in which the
organization operates. This includes a
review of the organizations competitive
position.
• Industrial environment – stages as per life
cycle, market attraction and growth
 Environmental aspect of JIO
• Industry stages(decline)
• 2G &3G usage
• Loyalty to mobile number
• New Subscriber Acquisition Is Very
Low
 Setting Quantitative Targets

• Quantifiable, measurable.
• There is no nominal targets
 Divisional plans
• Defining the specific goals and activities of
particular division.
• We can categorize the strategies as based
on levels of organization
Corporate strategy
Functional strategy
Operational strategy
 PLANS
• Free of cost simcards
• Free six months 4G services to
customer
• Happy new year offer 2018
• Jio phone at the price of 649
 Performance analysis
• Performance Analysis is the process of
studying or evaluating the performance of
a particular scenario in comparison of the
objective which was to be achieved.
 JIO
• The net profit of quarter 2 for the last
year 2023 is ended with 5058 crores.
The average revenue per user with
181.7 per month and the churn rate of
1.7%
 Choice of Strategy
• Decision to select a best from bunch of
alternatives for the future.
 Key terms in strategic
management
• Business in strategic management
• Business strategy
• Strategic business unit
• Competitive advantage
• Strategists
• Vision and mission statements
• External opportunities and strength
• Internal strength and weakness
 Key terms in strategic
management
• Long term objectives
• Strategies
• Annual objectives and policies
 Business in strategic
management
• The clear cut statement of business
operations/businesses the firm is engaged
in or planning to pursue.
• It is an elaboration of the business arena
it will play in. It prescribes the boundaries
of firm's business, products and markets.
 Business strategy
• An organizational master plan
• Business plan is a long term sketch of the
desired strategic destination for a plan
 Strategic business unit
• A strategic business unit is a profit centre
which focuses on product offering and
market segments
• SBUs typically have a discrete marketing
plan, analysis of competition, and
marketing campaign, even though they
may be part of a larger business entity.
 Competitive advantage

• The factors or characteristics that permit

one company to compete more effectively
than its industry competitors
 How to build competitive
advantage
• Cost leadership
• Differentiation
• specialization
 Cost leadership

• Establishing a leadership by having lower

cost of operations in the industry
 Differentiation

• It is an approach businesses develop by

providing customers with something
unique,different and distinct from items
their competitors may offer in the market
 Specialization

• This is a strategy developed by business

to focus on the production of a very limited
range of products or services in order to
gain maximum productivity, expertise and
leadership in the targeted field
 Identify the type of CA
• A credit card company decides to offer
higher cash back incentives for travel
related purchases. They market their
cards to frequent travellers. When
travellers look for a new credit card, they
might notice the card with specific value
and choose the travel rewards card over
other credit cards.
 Identify the type of CA
• A company (CSJ) that involved in making
ice rink cleaning equipment wants to
establish itself as a leader in its industry
and everyone in ice rink cleaning knows
their name and what they do.CSJ is able
to continue offering trusted equipment and
supplies
 Assess the CA of Good day
Britaania biscuits.
Conversion of customers from non brand to
brand biscuits in a massive manner
Competitive to non brand biscuits
Non brands now reduced to 0.5 % in market.
Oreo, sunfeast (ITC), Platini (Parle) as
competitors.
 Strategists

• Person responsible for creating and

implementing the long term goals of their
organization.
• They work closely with senior managers to
identify oppurtunities, prioritize the most
important ones, and develop a strategy for
achieving those objectives
 Vision and mission statements

• This statements provide dircection,focus

and communication while guiding strategic
decision making and inspires employees
to work towards a common goal.
 Components of mission
statement
• Customers-who are • philosophy
• Products or services- • Self concept
• Markets • Concern for public
• Technology image
• Concern for survival • Concern for
and growth employees
 External opportunities and
strength
• Opportunities to succeed with
• Threat that brings adverse effects on our
business.
 External opportunities and
strength -Jio
• Opportunities to succeed with-new product
• Loyalty towards mobile number-threat
Internal strength and weakness

• The Positive things about the business

Examples of strengths are positive cash
flow, effective branding and marketing,
and minimal staff turnover. Internal
Weaknesses – setbacks and negative
aspects of the business.
 Long term objectives

• Long-term objectives usually include

specific improvements in the
organization's competitive position,
technology leadership, profitability, return
on investment, employee relations and
productivity, and corporate image.
 Strategies

• A general direction set for the company

and its various components to achieve a
desired state in the future. Strategy results
from the detailed strategic planning
process”.
 Annual objectives

• Annual objectives are desired milestones an organization

needs to achieve to ensure successful strategy
implementation.
• Annual objectives are essential for strategy
implementation for five primary reasons:
• They represent the basis for allocating resources. They
are a primary mechanism for evaluating managers
 policies
• Policies refer to specific guidelines,
methods, procedures, rules, forms, and
administrative practices established to
support and encourage work toward stated
goals.
Strategic planning
 Strategic planning
• Strategic planning is a process in which an
organization's leaders define their vision
for the future and identify their
organization's goals and objectives.
 Experiential exercise
• Create 9*3 matrix with mission
components of three companies and
identify which mission statements framed
perfectly.
• Mark at the appropriate place as yes or no
to find which component has not
incorporated with mission statement
 Components of misión
statement
• Customers-who are • philosophy
• Products or services- • Self concept
• Markets • Concern for public
• Technology image
• Concern for survival • Concern for
and growth employees
Reliance Jio mission statement
• Reliance Jio promises to shape the future
of India by providing end-to-end digital
solutions for businesses, institutions and
households and seamlessly bridging the
rural-urban divide
 Mission statement -INfosys
• To achieve our goals in an environment of
fairness, honesty, and courtesy towards
our clients, employees, vendors and
society at large.
 Mission statement-Coca cola
• To refresh the world and make a
difference. This purpose is uniquely us. It's
why we exist, and it's needed now, more
than ever.
 Check with mission component
with this companies mission
Jio INFOSYS COCA
customer
Products or
services-
Markets
Technology
Concern for
survival and
growth
philosophy
Self concept
Concern for public
image
Concern for
employees
Sm model
 Strategic management model

• Develop mission and vision statement

• Perform internal and external audit
• Establish long term objectives
• Generate evaluate and select strategies
• Implement strategies
• Measure and evaluate performance.
 Stake holders
• Stakeholders can be members of the
organization they have a stake in, or they
can have no official affiliation.
• Stakeholders can have a direct or indirect
influence on the activities or projects of an
organization. Their support is often
required for business and project success.
 Types of stake holder
• Internal
• External
 Benefits of strategic
management
• Profitability management
• Solvency planning
• Liquidity Monitoring
• Improved Revenue Generation
• Prevents Legal Risks
• Identify Problems
• Revitalize Human Resources
 Profitability management
• Strategies helps to gain profits
• Consider the example of South Korea based
LG Electronics. The company faced stiff
competition and low profitability almost two
decades ago.
• Its pricing strategy to offer products at lower
costs in rural areas helped increase revenue
and sales volumes. It also worked on improving
brand visibility, which made LG a household
name in many countries.
 solvency
• Solvency is the ability of a company to
meet its long-term debts and other
financial obligations. Solvency is one
measure of a company's financial health,
 Liquidity Monitoring

• Benefits of strategic management allows

companies to ensure that their
cash flow aligns with their long-term goals.
They check it by constantly tracking cash
flow statements or liquidity reports.
 Improved Revenue
Generation
• Strategic management enables the senior
management to make necessary changes
in the existing operating processes. By
looking at competitors’ strategies, the
company can develop better ideas and
tweak its processes to outperform them.
 Prevents Legal Risks

• The companies can include employee-

related policies, conflict of interest policies
for board members and other partner
stakeholders, and other internal controls
as part of the strategic management
process.
 Identify Problems

• Enables a detailed analysis of the

organization’s strengths, weaknesses,
opportunities, and threats.
 Revitalize Human Resources

• Proactive staffing practices that help hire

the best talent and be more competitive.
Companies can prepare detailed job
descriptions, improve recruiting practices,
provide 360-degree feedback, and take
other steps that reduce turnover and boost
employee satisfaction.