KENNETH ANDREWS(1955), “The pattern of objectives, purpose, goals and the

major policies and plans for achieving these goals stated in such a way so as to define what business the company is in or is to be and the kind of company it is or is to be” This definition refers to the business definition. IGOR ANSOFF(1965) explained the concept of strategy as “the common

thread among the organizations, activities and product markets, that defines the essential nature of business that the organization was or planned to be in future”. The definition stressed on the commonality of approach that exists in diverse organizational activities. HENRY MINTZBERG (1987) explains that “strategies are not always the

outcome of rational planning. ………….a pattern in a stream of decisions and actions. The definition makes a distinction between intended strategies and emergent strategies. ANSOFF (1984) “Basically a strategy is a set of decision making rules for the guidance of organizational behavior. This definition has changed drastically what Ansoff had said earlier in 1965. William Glueck defines the term strategy as “the unified, comprehensive and integrated plan that relates the strategic advantage of the firm to the challenges of the environment and is designed to ensure that basic objectives of the enterprise are achieved through implementation process”

Keeping a track of strategies

Corporate Level Strategy Corporate level strategy fundamentally is concerned with the selection of

businesses in which the company should compete and with the development and coordination of that portfolio of businesses.

Corporate level strategy is concerned with: Reach - defining the issues that are corporate responsibilities; these might

include identifying the overall goals of the corporation, the types of businesses in which the corporation should be involved, and the way in which businesses will be integrated and managed.

Competitive Contact - defining where in the corporation competition is to be localized. Take the case of insurance: In the mid-1990's, Aetna as a corporation was clearly identified with its commercial and property casualty insurance products. The conglomerate Textron was not. For Textron, competition in the insurance markets took place specifically at the business unit level, through its subsidiary, Paul Revere. (Textron divested itself of The Paul Revere Corporation in 1997.)

Managing Activities and Business Interrelationships  -  Corporate strategy seeks to develop synergies by sharing and coordinating staff and other resources across business units, investing financial resources across business units, and using business units to complement other corporate business activities. Igor Ansoff introduced the concept of synergy to corporate strategy.

Management Practices - Corporations decide how business units are to be governed: through direct corporate intervention (centralization) or through more or less autonomous government (decentralization) that relies on persuasion and rewards.

Corporations are responsible for creating value through their businesses. They do so by managing their portfolio of businesses, ensuring that the businesses are successful over the long-term, developing business units, and sometimes ensuring that each business is compatible with others in the portfolio.

Expansion strategiesStability strategyRetrenchment strategyCombination strategyConcentration strategies—ansoff

mixIntegration strategies –

backward/forwarddiversification

Business Unit Level Strategy A strategic business unit may be a division, product line, or

other profit center that can be planned independently from the other business units of the firm.

At the business unit level, the strategic issues are less about the coordination of operating units and more about developing and sustaining a competitive advantage for the goods and services that are produced. At the business level, the strategy formulation phase deals with:

positioning the business against rivals anticipating changes in demand and technologies and

adjusting the strategy to accommodate them influencing the nature of competition through strategic

actions such as vertical integration and through political actions such as lobbying.

Michael Porter identified three generic strategies (cost leadership, differentiation, and focus) that can be implemented at the business unit level to create a competitive advantage and defend against the adverse effects of the five forces. 

Industry structurePositioning of the firmCompetitive advantageDifrentiationMarket

leader/follower/challenger/nicherStrategies based on – plc of

industryArea of operationDigitalisation

Functional Level StrategyThe functional level of the organization is the level of

the operating divisions and departments. The strategic issues at the functional level are related to business processes and the value chain. Functional level strategies in marketing, finance, operations, human resources, and R&D involve the development and coordination of resources through which business unit level strategies can be executed efficiently and effectively.

Functional units of an organization are involved in higher level strategies by providing input into the business unit level and corporate level strategy, such as providing information on resources and capabilities on which the higher level strategies can be based. Once the higher-level strategy is developed, the functional units translate it into discrete action-plans that each department or division must accomplish for the strategy to succeed.

METAL BOX INDIA LTD

Diagnosis:--INTERNALR N D WAS NOT USED

MANAGEMENT RIGID DOES NOT ADDAPTS TO CHANGING TIME

COSTING OF GOODS FOLLOWED IN A TRADITIONAL FULL COSTING APPROCH

PARTIALISM EXISTED IN MANAGEMENT

EMPLOYE APPRECIATION AND MOTIVATION WAS ABSENT

ALLOCATION OF TASK N RESPONSIBILITY TO EMPLOYE NOT CLEAR

LONG DELIVERY PERIODS

JEALOUSY N ID FACTOR CAME BETWEEN OLD AND NEW MANAGEMENT

DIAGNOSIS --EXTERNAL

NO EXPERTISE IN MARKETING

NEVER FACE COMPETITION BEFORE

FAILS IN CHALLENGING THE PRICE OF COMPETITOR

Poor after sales sevices

Golden handshake

SYMPTOMS

Sales fell drastically. Profits plummeted, downwardsHIGH RATE OF ATTRATIONMarket share is fallingVery low rate of employee moraleMBIL IS LOOSING EMPLOYEES TRUSTLACK IN PROPER MANAGEMENT DECISIONSNO FUTURE THINKING (ONLY PRESENT SITUATION IS BEING CARED ABOUT).

S.W.O.T

STRENGTH•One of the best R &D facilities (the best brains, but not fully utilized).•Excellent quality standards (no compromise on quality)•Adequate machinery available (they go for mass production).•No problem of resources as such (turn over of 140 crores in 1970).• Quality employees (having a good pool of engineers from IITs and MBA’s from IIMs).Also the high level managers have high qualification (though never used).

WEAKNESS•NO PROPER UTILIZATION OF MACHINERY (MANY LINES ARE UNUSED, MANY ARE NOT USED TO FULL EXTENT).•LACK OF MARKET KNOWLEDGE (THEY BELIEVE MORE ON SELLING, THAN MARKETING)•MINDEST OF PEOPLE (LONG STAY AND LOYALITY WAS STILL THE MOST IMPORTANT).•STILL ENGINEERS ARE PREFFERED (ONLY THE TECHNICAL ASPECT IS BEING CARED OFF).•NO PROPER GOAL OR OBJECTIVES DEFINED.•NO AFTER SALES SERVICE•ONLY ADVANCE ORDERS ACCEPTED.

OPPORTUNITY

•7 FACTORIES ALL OVER COUNTRY (THEY CAN COVER MORE MARKET AREA).•NEW PRODUCT WILL BE ACCEPTED (AS MBIL HAS A QUALITY BRAND NAME)•MONOPOLY IN THE MARKET (NO MAJOR COMPETITION AS SUCH).•THEY HAVE THE REQUIRED MACHINERY AND MAN POWER.•HAVE THE BEST POOL OF ENGINEERS AND MBA’S WHICH CAN BE UTILIZED.

THREAT•INCREASING COMPETETION•RAPID CHANGE IN TECHNOLOGY•LOOSING MARKET TRUST (QUALITY CHANGING IN THE 7 FACTORIES).•SUBSTITUTING PRODUCTS WILL NOT BE EASY TASK.

increase the offtake rate and quantum of existing customers for existing packages

COSTS(-) BENEFITS(+) DECISSION

technical developments

additional investments for balancing equipment

human and financial resource,

INCREASE in turnover sales and profits

1. considerably high in value and hence rejected.

reactivate the presently, fully closed tin battery jacket

line was fully shut down for more than two years.

Wastage in time and resources

Nothing as all the consumers have switched over to substitutes which are cheaper

Rejected.

Prefer new business development.

come out with pilferproof “White caps

Additional financial investment & new

So risk.

Could reap profits in long run

Rejected since not feasible

international level technology for manufacturing packing for processed food, which could be packed in a sterilized form in, vacuum tin containers.

Investment in terms of finance & new human resource

R&D department would be utilised

Since international level.so good quality,could bea major success

Considerable market demand(1million strong armed forces)

No restriction of any fresh investment

Large scale exports(less exporters)

Domestic market was picking up gardually

different shapes and sizes of cylindrical tin jackets could be produced.

CONSTRAINTS•MINDSET OF THE HIGHER LEVEL PEOPLE (NOT READY TO CHANGE OR TAKE RISK)•MINIMUM UTLITY OF AVALAIBLE RESOURCES (MAN,MONEY, MACHINE)•ROLES OF PEOPLE NOT CLEARY DEFINED•PREVAILING GOV. LAW OF LAND PROHIBITED FRESH INVESTMENT BY FOREIGN COMPANIES LIKE MBIL.•NO VALUE FOR TIME….

Market Product

Current Proposed

Existing (Current) 1.Market Penetration

2.Product Development

Proposed (New) 3.Market Development

4.Diversification

PRODUCT MARKET EXPANSION GRID OF H.IGOR ANSOFF

Short termI - Sales optimization

Medium termII - New product development

- Increased sales,- Rate of usage,- New outlets/usage,- Elimination of non profitable

product lines,- Relevant product lines

(Width, depth, consistency)

Emphasis on existing (Technical)capacities and strengths(Capacity optimisation)

III - Long term Market development

IV - Very long term DiversificationConcentric Non concentric- SWOT analysis,- Idea Generation Technique

WHAT WENT WRONG ANALYSIS OF CASE

STRUCTURE SHOULD FOLLOW STATERGY

A DIFFERENT STATERGIC APPROCH

7 ‘S FRAMEWORK

Seven areas of an organisation- must work in harmony Elements- interlinked and affected by one another Growth- managing the interaction between all the 7 factors

The 7”S” framework

Case direction----------------

The basic cylindrical design(s) could be formed by slight modification of current technology.

Taratala plant can manafacture plastic container with bit changes in tecnology

The printing department suggested a pilfeproof design.Some reserch for keeping quality intact required

Already we produce Non pilfer proof caps from tin and later from a plastic material

• 3 piece tin container, cost three times more than the non pilfer proof container's

•Slow in implementing great idea

•Reluctant to recognize great opportunity

•Could not protect from competitor