Strategy

 comes from the Greek word “ Strategos” – meaning “ Art of

the general”
 Military used the word “ strategy” to mean grand plans made
in the light of what it is believed an adversary might or might
not do.
 Defn of strategy :
 1) General program of action and deployment of resources to
attain comprehensive objectives
 Alfred Chandler :
“ Determination of the basic long –term
objectives of an enterprise and the adoption of
course of action and allocation of resources necessary to
achieve these goals”.
 Glueck :
“ A unified , comprehensive and integrated plan
designed to assure that the basic objectives of the
enterprise are achieved”

 Michael Porter : : “ Developing and communicating the

company’s unique position, making trade-offs and forging
fit among activities.”
Levels of strategies
 Corporate level
 Business level
 Functional level
 Different levels of strategy

Levels Strategy

Corporate Corporate office

CORPORATE LEVEL
/head office

SBU SBU SBU SBU

Business Level

functional Operations Marketing Personnel Finance Functional

level
Part A : Establishing Strategic Intent

Vision , Mission, Business

Definition and objectives
Establishing the hierarchy of strategic intent

 1) Creating and communicating a vision : It serves the

purpose of stating what an organization wishes to achieve
in the long run.

2) Designing a mission statement : The mission relates an

organization to society. “ The
essential purpose of the organization , concerning
particularly why it is in existence , the nature of of the
business it is in and the customers it seeks to serve and
satisfy.
Vision and Mission
 ONGC
 Vision and mission:
To be a world-class Oil and Gas Company integrated in energy business
with dominant Indian leadership and global presence.

HPCL
Vision:
"To be a leading world class company in hydrocarbons and energy
related sectors with a global presence."
Mission:
 "HPCL, along with its joint ventures, will be a fully integrated
company in the hydrocarbons sector of exploration and
production, refining and marketing;
focusing on enhancement of productivity, quality and profitability;
caring for customers and employees; caring for environment
protection and cultural heritage.
It will also attain scale dimensions by diversifying into other
energy related fields and by taking up transnational operations
Vision and Mission
 Infosys' Vision:

"To be a globally respected corporation that provides

best-of-breed business solutions, leveraging technology,
delivered by best-in-class people"

Infosys' Mission Statement :

"To achieve our objectives in an environment of fairness,

honesty, and courtesy towards our clients, employees,
vendors and society at large"
Vision
 Titan and Mission

 Vision

To be the most desirable jewellery brand for Indian

women

 Mission
We will continuously create wealth for all our stakeholders,
by transforming the jewellery business and by being the
gold standard in design, shopping experience and ethical
practices.
Tools for strategy
 BCG Matrix
 Five forces Model
Question Marks
 Low market share, high market growth rate
 Problem children
 Minimal or negative profit
 Larger investments----
 But invest carefully
Star
 High Market share,high market growth rate
 Huge investments & working capital
 Profit- finance their growth.
Cash cows
 High Market share,low growth rate.
 No need of huge investment
 Surplus cash
 Question Marks
 Stars
Dogs
 Low market share, low market growth rate
 No cash
 Do not invest
 Sell them
Porter`s five forces
Rivalry Among Established
Companies
 Currently, there are three main incumbent companies
that exist in the same market as Wal-Mart: Sears, K
Mart, and Target. Target is the strongest of the three in
relation to retail.
 Target has experienced tremendous growth in their
domestic markets and have defined their niche quite
effectively.
 Sears and K-Mart seem to be drifting and have not
challenged K-Mart in sometime.
 Mature industry life cycle.
The Bargaining Power of
Buyers
 The individual buyer has little to no pressure on Wal-
Mart.
 Consumer advocate groups have complained about Wal-
Mart’s pricing techniques.
 Consumer could shop at a competitor who offers
comparable products at comparable prices, but the
convenience is lost.
Bargaining Power of Suppliers
 Since Wal-Mart holds so much of the market share, they
offer a lot of business to manufacturers and wholesalers.
This gives Wal-Mart a lot of power because by Wal-Mart
threatening to switch to a different supplier would create
a scare tactic to the suppliers.
 Wal-Mart does deal with some large suppliers like
Proctor & Gamble, Coca-Cola who have more bargaining
power than small suppliers.
Threat of Substitute Products
 When it comes to this market, there are not many
substitutes that offer convenience and low pricing.
 The customer has the choice of going to many specialty
stores to get their desired products but are not going to
find Wal-Mart’s low pricing.
 Online shopping proves another alternative because it is
so different and the customer can gain price advantages
because the company does not necessarily have to have a
brick and mortar store, passing the savings onto the
consumer.
Threat of New entrants
 Entry barriers are relatively high, as Wal-Mart has an
outstanding distribution systems, locations, brand
name, and financial capital to fend off competitors.
 Wal-mart often has an absolute cost advantage over
other competitors.