Amity Global Business School, Singapore
Presented to Ms. Astha Gupta Presented by Devika Goel, Ankita Verma, Vaishali Goel, Avantika Kansal, Divya Bajaj & Harshita Baranwal
Operation-driven rather than
market-driven. Action-oriented, make-thingshappen tasks.
Strategy requires few; execution requires everyone.
Structure Decision Processes and Controls
Task-Focus (Value) Firm Strategy
Firm Performance
People
Reward Systems
Build an Organization
Marshal resources
Institute policies
Pursue best practices and continuous improvement Information and operating systems
Tying rewards to strategy and goals
Shape corporate culture Exert leadership
1.
2. 3.
4.
5.
Identify short term objectives Initiate specific functional tactics Outsource non-essential functions Communicate policies that empower people in the organization Design effective rewards
7
Time consuming Wide array of managerial challenges Many options to proceed Demanding people-management skills Perseverance to get initiatives moving Number of unexpected issues
Resistance to change, misunderstandings. Difficulties of integrating efforts across groups.
Vision
People
Management
Resource
Entry of low cost carriers changed the face of industry Jet Airways started facing stiff competition from Air Deccan, Spice Jet
& Kingfisher
Market share went down from 57% to 32%
Set up a new Corporate strategy:
Regaining and expanding its market share by entering and operating in the LOW COST and a VALUE BASED CARRIER arena as well
In order to give a definite shape to the corporate strategy, a business level strategy was implemented:
the TAKEOVER of Air Sahara by Jet Airways and renaming it to form JETLITE
Jets management made various changes in the operation strategies of the airline
No tickets at throw away prices
New schedule for other tier II cities
Jetlite was to take on Tier II and Tier III cities
Cost cutting by slashing employee numbers and better negotiation with suppliers
Single cabin carriers
Improvement in aircraft utilization hours
Corporate Level Strategy:
Focus: Deliver High performance in controlled businesses Maximize shareholder returns in affiliates Leverage measurable synergy benefits from scale and scope Outperform acquisition business cases
Vodafone wanted to enter the Indian market in 2006-2007 Gartner had figured that customer base in India would double by 2010
Business Unit Strategy
Acquired Hutchison Essar Limited and divested in Bharti Airtel
Operational & Functional Strategies:
Investing in Rural India by network sharing with other providers
Cutting costs through: Infrastructure sharing deal with Idea and Bharti
Redefining the logo High level of cost and time discipline
Customer value enhancement Target areas: Mobile data, Enterprise and Broadband
Technology upgradation CSR Group Supply chain, Group Marketing,
Employment
Entry of Honda into US motorcycle market in 1959
Honda executives (from Japan) focused on selling 250-cc & 350-cc machines Sales were sluggish Honda executives themselves were using
50-cc bikes & were attracting attention They got a call from Sears & other stores
Honda launched those bikes By 1964 one out of two motorcycles sold in US was a Honda
In 1992 Nokias strategic intent was expressed in four criteria
Focused Global
Telecommunications-oriented
High value-added Its vision was the voice will go wireless
The Nokia vision in 1992 led to the company divesting a broad range of businesses that contributed some 90 percent of its revenues and to focus on the manufacture
of handsets and network equipment.
The leaders set a further goal of doubling market share by the end of the decade.
This achieved by 1997 and by 1999 Nokia had overtaken Motorola as market leader.
In 1997 the strategic intent was articulated in terms of a mobile
information society and bring the internet to everyones pocket
The 1997 vision further consolidated Nokias market position and led to the development of the picture phone and the mobile internet etc.
The companys current mission is about the awesome potential in connecting peoplewhenever, wherever, we believe in
communicating, sharing, and in the awesome potential of
connecting the 2 billion who do, with the 4 billion who dont.
It is an integrated system of managing strategies that links long term objectives with short term actions, senior management with frontline employees and organizational vision with organizational activities.
STRATEGY
1. Leadership From the Top
Create the Climate for Change Create a Common Focus for Change Activities Rationalize and Align the Organization Communicate Formulate
4. Make Strategy a Continuous Process
Strategic Feedback That Encourages Learning Executive Teams Manage Strategic Themes Testing Hypotheses, Adapting, and Learning
STRATEGY
Navigate
2. Make Strategy Everyones Job
Comprehensive Communication to Create Awareness Align Goals and Incentives Integrate Budgeting with Strategic Planning Align Resources and Initiatives
Execute
3. Unlock and Focus Hidden Assets
Reengineer Work Processes Create Knowledge Sharing Networks
The Balanced Scorecard identifies the factors that create longterm economic value in an organization, for example: Customer Focus: satisfy, retain and acquire customers in
targeted segments
Business Processes deliver the value proposition to targeted customers
innovative products and services high-quality, flexible, and responsive operating processes
excellent post-sales support Organizational Learning & Growth develop skilled, motivated employees;
provide access to strategic information align individuals and teams to business unit objectives
Who are our targeted customers? What is our value proposition in serving them?
What capabilities & tools do employees require to help them execute our strategy?
What financial steps are necessary to ensure the execution of our strategy?
