strategic management
DESCRIPTION
BCG Matrix, GE matrix, SWOT analysis, porters 5 Generic model, Value chain analysis, Sustainable competitive advantage, this is all for study purpose only..... no other intention....TRANSCRIPT
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STRATEGIC MANAGEMENT
Pavan Gadade
Sachin Chavan
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STRATEGIC MANAGEMENT
Enviourment:- Surrounding factors that affect the business
4 C:-
1. Company Internal Factor
2. Customer
3. Competition External Factor
4. Condition
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STRATEGY
Strategy :- Taking action in order to achieve desired outcome
Types of Strategy
Corporate Strategy Function Strategy Higher Level Management
Business Strategy
Middle Level Management
Middle Level Management
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SWOT ANALYSIS
Strength
1) Best Design & Engineering Capability
2) Eco System
Weakness
1)Higher Cost as compared to competitor
2) High lead time
Opportunity
1) Enter into different market segment
2) Demand for smart phone and tablet is
growing
Threat
1) Samsung competition in
technology2) Chinese intervention
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MICHAEL PORTER’S FIVE FORCES MODEL
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MICHAEL PORTER’S FIVE FORCES MODEL
Example:- Cement Industry
BPOS (Bargaining power of supplier):- High
Scarcity of raw material (Mineral)
Most of mines are own or govern by government body
Many customer and few supplier
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BPOB :- HIGH
High number of cement company
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TONE :- LOW
Require own plant Own distribution network
High technology
Government licenses
High capital requirement
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TOS :- LOW
Nothing can replace cement for construction purpose
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IOC/CR :- LOW
There are many players in market but few player dominate the market Market share of cement company
L & T :- 22 %
ACC :- 15 %
Ambuja :- 13 %
JP :- 10 %
India Cement:- 10%
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SUSTAINABLE COMPETITIVE ADVANTAGE
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SUSTAINABLE COMPETITIVE ADVANTAGE
AMUL
VALUABLE × √ √ √
INIMITABLE × × √ √
RARE × × √ √
UNSUBSTITUTABLE
× × × √
Below average returns
Average returns
Above average returns
Above - Above average returns
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VIRU
Example: Apple
VALUABLE INIMITABLE
Product Design Product interface
Heritage of technology
Innovation
RARE UNSUBSTITUTABLE
Convergence ( 4 segment got unstable)
Linkage to customer
Trust
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INTEGRATION
Integration
Vertical Horizont
al
ForwardBackwar
d
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INTEGRATION
Forward Integration : From Firm to Source
Example:- Videocon
Backward Integration : From Firm to Customer
Example:-Reliance Fresh, Vedanta Group
Horizontal Integration:- a strategy where a company acquires another company in the same Production Line.
Example:- Ultratech acquired JP Cement plant
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MERGER & ACQUISITION
Merger :- A merger is a integration of two companies relatively on co-equal basis to form a new company
Company A +Company B= Company c
Acquisition: It is strategy when firm buys controlling or 100 % interest
in another firm to make acquired firm a subsidiary business with its portfolio
Company A +Company B= Company A
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WHY MERGER FAILS
Diversification away from firm’s core business Inadequate analysis
Ethical Concern
Large Extra ordinary Debt
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DIVERSIFICATION
When firm decides to operate business in several Industries
Related Diversification
Unrelated Diversification
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RELATED DIVERSIFICATION
M & M
Farm Constructi
on Equipment
Steel processing
Mahindra systech
(component)
Mahindra Automotiv
e
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UNRELATED DIVERSIFICATION
Leisure & Hospitality• Club
Mahindra
IT• Tech
Mahindra• Mahindra
Satyam
Retail • Mom & Me
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BCG MATRIX
Brand L/F Market Growth Relative Market Share
Swift L 13 4X
Swift Dzire L 12 4X
Alto 800 L 4 4X
Wagon R L 3 3X
Omni L 2 2X
Ritz F 10 0.8X
Ertiga F 6 0.9XSX 4 F 2 0.6X
Kizashi F -3 0.1X
Grand Vitara F -4 0.1X
Objective :- To help SBU’s with analyzing their business units or product lines & recommend strategies with the help of four quadrants by plotting products against Relative market share & Market growth
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Mar
ket G
row
th
Relative Market Share
15
5
-5 5x 1x 0.1x
SwiftSwift Dzire
Alto 800 Wagon R
Omni
Ritz
Ertiga
SX4
Kizashi Grand Vitara
Boston Consulting Group Model
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GE MCKINSEY MATRIX
SBU Size Growth Market share
Growth
Beverage and alcohol
XXL XXL
Aviation XXL M
UB Engineering XXL S
Chemical & fertilizers (MCF)
XL S
Industry Attractiveness Business Unit Strength
Assess the strength of a SBU Analyze current portfolio and resource allocation Focuses on Profitability, Market Attractiveness and Business Strength.
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GE MCKINSEY MATRIX
Beverage &
alcohol
Aviation
Engineering
Chemical & Fertilizer
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VALUE CHAIN ANALYSIS
Food SegmentDetails ITC HUL Nestle
Inbound Logistics 9 8 7
Operations 9 9 7
Outbound Logistics
9 8 8
Sales & Marketing 9 8 10
Service - - -
Total 36 34 32
“Value chain analysis (VCA) is a process where a firm identifies its primary and support activities that add value to its final product and then analyse these activities to reduce costs or increase differentiation.”
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WEBLIOGRAPHY
http://www.theautomotiveindia.com/forums/indian-auto-news/12327-march-2013-sales-figures-cars-india.htm
http://autobei.com/blog/indian-passenger-vehicle-sales-analysis-april-2013/
http://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://www.oncars.in/compare-cars/hyundai-i10-asta-1-2-at-kappa2-
with-sunroof-Vs-maruti-suzuki-omni-e-mpi-std-bs-ivhttp://www.mahindra.com/What-We-Do/Automotivehttp://economictimes.indiatimes.com/news/news-by-industry/auto/
automobileshttp://en.wikipedia.org/wiki/United_Breweries_Grouphttp://en.wikipedia.org/wiki/Mahindra_Group http://www.mahindra.com/#
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thank you