STRATEGIC
MANAGEMENT
CIA

BY

KULDEEP GUPTA (1411853)

PRIYAANSHU JAJODIA (1411857)
Companies that are large enough to be organized into strategic business units face the challenge
of allocating resources among those units. In the early 1970's the Boston Consulting Group
developed a model for managing a portfolio of different business units (or major product lines). The
BCG growth-share matrix displays the various business units on a graph of the market growth rate
vs. market share relative to competitors:

Resources are allocated to business units according to where they are situated on the grid as
follows:
Cash Cows - a business unit that has a large market share in a mature, slow growing industry.
Cash cows require little investment and generate cash that can be used to invest in other business
units.

Star - a business unit that has a large market share in a fast growing industry. Stars may generate
cash, but because the market is growing rapidly they require investment to maintain their lead. If
successful, a star will become a cash cow when its industry matures.

Question Mark (or Problem Child) - a business unit that has a small market share in a high growth
market. These business units require resources to grow market share, but whether they will
succeed and become stars is unknown.

Dog - a business unit that has a small market share in a mature industry. A dog may not require
substantial cash, but it ties up capital that could better be deployed elsewhere. Unless a dog has
some other strategic purpose, it should be liquidated if there is little prospect for it to gain market
share.

2
 Dabur India Ltd.

Company Profile

Dabur (Dabur India Ltd.) is India's largest Ayurvedic medicine & related
products manufacturer. Dabur was founded in 1884 by SK Burman, a physician
in West Bengal, to produce and dispense Ayurvedic medicines. Dabur is one of
the leaders in the Consumer goods Industry with it’s headquarters in Ghaziabad,
Uttar Pradesh, India. The company has its base set in Health Care products,
Personal Care products, Oral Care products, Food & Home Care products.

Dabur’s presence in the market (Basis for BCG Matrix)

Category Position Market Share Key Brands

Hair Care 3 12% Dabur Amla Hair Oil,
Vatika Hair Oil & Vatika
Shampoo
Oral Care 3 11% Red Toothpaste,
Babool,Meswak
Skin Care 3 7% Dabur Gulabari, Fem,
Dabur Uveda
Ayurvedic 1 66% Dabur Chyawanprash
Tonics
Digestives 1 55% Hajmola
Fruit Juices 1 52% Real Fruit Juices, Real
Activ
Honey 1 50% Dabur Honey
Glucose 2 24% Dabur Glucose
The BCG Matrix :

Stars Question Marks

o Fruit Juice o Energy products (Glucose)
o Ayurvedic Tonics o Hair Care products

Cash Cows Dogs

o Health Care Digestives o Skin Care Products.
(Hajmola) o Oral Care
o Food products (Honey)

Inference & Analysis of BCG Matrix :

Market attractiveness Business Strength –

- Industry Company
Dabur Products Size Growth Market Growth
Share
Fruit Juice XXL Very High XL Very High
Ayurvedic Tonic XXL Very High XL High
Energy Products XL Relatively L Relatively
High High
Hair Care Products XL Relatively L Relatively
High High
Health Care L Moderate L Neutral
(Digestives)
Food Products L Relatively L High
(Honey) High
Skin Care Products XL Relatively L Relatively
 High High
Oral Care L Relatively L Diminishing
High market

Proposed Strategies :

o Divest in Skin care and Oral Care products (Categorised under ‘Dogs’)
since their market has diminishing growth.
o Utilize the proceeds gained from divesting and be invested in ‘Starts’.
o They should work on promotions to get things in way.
o They should also have differentiated approach in all product categories.
o Putting to use such strategies will definitely ensure sustainable growth of
the company.
Balanced Scorecard

The balanced scorecard is a strategic planning and management system that is used
extensively in business and industry, government, and nonprofit organizations worldwide to
align business activities to the vision and strategy of the organization, improve internal and
external communications, and monitor organization performance against strategic goals. It
was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton as
aperformance measurement framework that added strategic non-financial performance
measures to traditional financial metrics to give managers and executives a more 'balanced'
view of organizational performance. While the phrase balanced scorecard was coined in the
early 1990s, the roots of the this type of approach are deep, and include the pioneering work
of General Electric on performance measurement reporting in the 1950’s and the work of
French process engineers (who created theTableau de Bord – literally, a "dashboard" of
performance measures) in the early part of the 20th century.

Gartner Group suggests that over 50% of large US firms have adopted the BSC. More than
half of major companies in the US, Europe and Asia are using balanced scorecard
approaches, with use growing in those areas as well as in the Middle East and Africa. A
recent global study by Bain & Co listed balanced scorecard fifth on its top ten most widely
used management tools around the world, a list that includes closely-related strategic
planning at number one. Balanced scorecard has also been selected by the editors of Harvard
Business Review as one of the most influential business ideas of the past 75 years.

The balanced scorecard has evolved from its early use as a simple performance measurement
framework to a full strategic planning and management system. The “new” balanced
scorecard transforms an organization’s strategic plan from an attractive but passive document
into the "marching orders" for the organization on a daily basis. It provides a framework that
not only provides performance measurements, but helps planners identify what should be
done and measured. It enables executives to truly execute their strategies.

This new approach to strategic management was first detailed in a series of articles and books
by Drs. Kaplan and Norton. Recognizing some of the weaknesses and vagueness of previous
management approaches, the balanced scorecard approach provides a clear prescription as to
what companies should measure in order to 'balance' the financial perspective. The balanced
scorecard is a management system (not only a measurement system) that enables
organizations to clarify their vision and strategy and translate them into action. It provides
feedback around both the internal business processes and external outcomes in order to
continuously improve strategic performance and results. When fully deployed, the balanced
scorecard transforms strategic planning from an academic exercise into the nerve center of an
enterprise.

Kaplan and Norton describe the innovation of the balanced scorecard as follows:

"The balanced scorecard retains traditional financial measures. But financial measures tell the
story of past events, an adequate story for industrial age companies for which investments in
long-term capabilities and customer relationships were not critical for success. These
financial measures are inadequate, however, for guiding and evaluating the journey that
information age companies must make to create future value through investment in
customers, suppliers, employees, processes, technology, and innovation."
Balanced Scoresheet of Namma Bangalore Metro

Namma Metro also known as Bangalore Metro, is a metro system serving the city
ofBangalore in Karnataka, India. NammaMetro is India's second largest metro system in
terms of both length and number of stations, after the Delhi Metro.[7] It also contains the first
underground metro line in South India. The metro network consists of two colour-coded
lines, with a total length of 31.52 kilometres serving 30 stations. The system has a mix of
underground, at-grade, and elevated stations using standard-gauge tracks. The metro has an
average daily ridership of 140,000 passengers.
The Bangalore Metro Rail Corporation Ltd (BMRCL), a joint venture of the Government of
India and theGovernment of Karnataka, built and operates the Namma Metro. Services
operate daily between 06:00 and 22:00 running with a headway varying between 8–10
minutes. The trains are composed of three cars. The power output is supplied by
750 volt direct current through third rail.
Focus Area Objective Measure Goal Actual Deviation Notes

The 1. Profitability(Bangalore End-to-end The project has To cover the Hasn’t been
Financial Metro Rail Corporation Ltd fare on the an East-West entire able to cover
Perspective (BMRCL) has posted an Purple Line corridor - 18.10 Bangalore important
annual profit of `41 lakh is 40. km long, region. regions like
from its Namma Metro Commuters starting from Koramangala.
operation between MG Road who pay Baiyappanahalli
and Baiyappanahalli. Over using in the East and
80 lakh people have smartcards terminating at
travelled in it after receive a Mysore Road
commercial operations 15% terminal in the
began from October 20, discount per West and a
2011.) transaction. 24.20 km
2. EPS As of April North-South
3. Bad Debts(Rs. 70,176 2016, corridor
FY’14) 37.59% of commencing at
commuters Nagasandra in
on the the North and
Purple Line terminating at
use smart Puttenahalli in
cards, while the South.
the rest
purchase
tokens.
The 1. Value service to customer Number Provide the best Routes only in Lacks more
Customer routes and central routes
Service connectivity Bangalore
Perspective 2. Value service to Survey Provide best Provides very Hasn’t given
stakeholders returns and eps less returns the expected
returns
3. Customer focus and Survey Increase routes, Less Very less
satisfaction safety, security connectivity connectivity
and into the main
connectivity office areas
like
whitefield
and
kundanhali

Learning • 1. Employee capabilities (core The  Delhi   The goal of The  project  has   Has been
and Metro  Rail   Bangalore an  East-­‐West   unable to
competencies and skills). It
Growth Corporation   metro is to corridor  -­‐  18.10   cover the all
Perspective might include: serve the the important
Limited   km  long,  
• Employees obtaining (DMRC)   passengers starting  from   regions of
the skills necessary to support prepared   residing Baiyappanahalli   Bangalore.
and   exclusively in in  the  East  and  
the strategy.
Bangalore as a
• Facilitating people to gain a submitted   terminating  at  
public transport
the  detailed   Mysore  Road  
better understanding of some of and to
project  for   encourage terminal  in  the  
 the company’s aspects the  first   people to use West  and  a  
(marketing, sales, etc.); phase  of  the   public 24.20  km  
Namma   transport. North-­‐South  
• 2. Information system
Metro   corridor  
capabilities project  to   commencing  at  
• Explore what information the  BMRCL   Nagasandra  in  
systems (CRM, ERP, BMP) you in  May   the  North  and  
might need to execute your 2003.   terminating  at  
Construction   Puttenahalli  in  
strategy effectively;
work  for   the  South.  
• 3. Strategy awareness and
Phase  I  of  
motivation the  project  
• Address some typical motivation was  
and alignment issues by running scheduled  
the program that will explain to  start  in  
2005  but  
strategy to your employees and
was  delayed  
involve them in the strategy by  a  
execution. February  
2006  change  
of  
government  
in  Karnataka  
and  
continued  
debate  over  
whether  the  
project  was  
financially  
feasible  and  
appropriate  
for  the  city.  

Diversity Metro’s Diversity Action Plan In different This The Hasn’t been
Perspective envisions a future where our phases. perspective commercial able to cover
diversity practices improve Metro’s measures operations on important
responsiveness to the residents of our Metro’s ability Reach-1 (MG regions like
region, strengthen Metro’s to reflect the Road to Koramangala.
workforce, and serve as a model for diversity of the Baiyappanahalli
other governments. community we station) have
serve through opened on 20th
procurement October 2011.
practices, The
employee commercial
awareness, operations on
employee Reach-3
recruitment and (Nagasandra to
public Mantri Square
involvement. Sampige Road
Station) have
commenced on
1st March
2014. The
commercial
operations on
Reach-3B
(Peenya
Industry to
Nagasandra)
have
commenced on
1st May 2015
and the
commercial
operations on
Reach-2
(Magadi Road
to Mysore Road
Terminal) have
commenced on
18th November
2015