You are on page 1of 30

1 1

GRD School of Commerce &


GRD School of Commerce &
International Business
International Business
CEOs CHARTER Main! of a CEO
CEOs CHARTER Main! of a CEO
Emer!in! Tren"s in
Emer!in! Tren"s in
Strate!ic Mana!ement
Strate!ic Mana!ement
Dr# $# G# Ratnam
Dr# $# G# Ratnam
%& Au!ust %''(
%& Au!ust %''(
2 2
I would like to place on record my
I would like to place on record my
sincere thanks to the Organizers of this
sincere thanks to the Organizers of this
Program for giving this opportunity to
Program for giving this opportunity to
be with you all this afternoon!
be with you all this afternoon!
3
21 C anagement
21 C anagement

)elcome to the %* C Mana!ement+


)elcome to the %* C Mana!ement+

,no-le"!e is re.lacin! Infrastructure


,no-le"!e is re.lacin! Infrastructure

Self/lea"ershi. is su.erce"in! comman" an" control


Self/lea"ershi. is su.erce"in! comman" an" control
mana!ement
mana!ement

0et-ors are re.lacin! hierarchies


0et-ors are re.lacin! hierarchies

$irtual Teams are re.lacin! committees


$irtual Teams are re.lacin! committees

)ante" / em.lo1ees -ith Emotional Intelli!ence+


)ante" / em.lo1ees -ith Emotional Intelli!ence+

Glo2ali3ation is the Cor.orate Mantra for sur4i4al+


Glo2ali3ation is the Cor.orate Mantra for sur4i4al+

Co-orers are not "o-n the hall 2ut at the other


Co-orers are not "o-n the hall 2ut at the other
en" of the Internet some-here else on the .lanet+
en" of the Internet some-here else on the .lanet+
4
CO0TEM5ORAR6 B7SI0ESS MODE8
CO0TEM5ORAR6 B7SI0ESS MODE8
MGMT# MGMT#
C7STOMERS C7STOMERS
Materials Materials Mone1 Mone1
Machines Machines
Man.o-er Man.o-er
In"i4i"ual In"i4i"ual
Institutions Institutions
Go4t# 9 Go4t# 9
Defense Defense
E:.orts E:.orts
En4ironment/ En4ironment/
S;E;5;T S;E;5;T
ROCE < MARGI0 = ATO ROCE < MARGI0 = ATO
< 5rofits = Sales < 5rofits = Sales
ROCE < 5rofits ROCE < 5rofits < > Sales E:.enses? < > Sales E:.enses?
Ca.ital Em.lo1e" > @A A In4#ADtrs#/C"trs? Ca.ital Em.lo1e" > @A A In4#ADtrs#/C"trs?
Sales Sales Capital Employed Capital Employed
Goo"s & Ser4ices Goo"s & Ser4ices
Sales Re4enue Sales Re4enue
5
I!!IO" # $O%&!
I!!IO" # $O%&!
O' % COP%"(
O' % COP%"(

MISSIO0 B
MISSIO0 B



To .ursue the
To .ursue the
Creation of )alue
Creation of )alue
to all
to all
Staehol"ers in the Business
Staehol"ers in the Business

GOA8S 9 OBCECTI$ES B
GOA8S 9 OBCECTI$ES B
*o make Profit
*o make Profit
for to"a1 an" fore4er
for to"a1 an" fore4er
*o satisfy Customers
*o satisfy Customers
to"a1 an" fore4er
to"a1 an" fore4er
*o satisfy +mployees
*o satisfy +mployees
to"a1 an" fore4er
to"a1 an" fore4er
6
*O,%(-! +CO"OIC +")I.O"+"*
*O,%(-! +CO"OIC +")I.O"+"*

Transition @rom Sellers to Bu1ers# Transition @rom Sellers to Bu1ers#


Customer is the ,I0G 9 D7EE0 + Customer is the ,I0G 9 D7EE0 +

Cut/throat Com.etition 2oth local & !lo2al Cut/throat Com.etition 2oth local & !lo2al

Go4t# Dere!ulation & 8i2erali3ation Secon" Go4t# Dere!ulation & 8i2erali3ation Secon"
5hase of Go4t# initiati4es 5hase of Go4t# initiati4es

Deman"in! Customers on D; C; D; S Deman"in! Customers on D; C; D; S

Technolo!ical Chan!es Technolo!ical Chan!es

Mana!ement Initiati4es 9 Inno4ations Mana!ement Initiati4es 9 Inno4ations

E:.orts 9 Glo2ali3ation E:.orts 9 Glo2ali3ation

In s.ite of it all; @6 '(E .orten"s !oo" 1ear+ In s.ite of it all; @6 '(E .orten"s !oo" 1ear+
7
*/.++ %0O. */.1!* %.+%!
*/.++ %0O. */.1!* %.+%!

Mana!in! Com.etition Mana!in! Com.etition


/
A!!ressi4e Maretin! Maret Share A!!ressi4e Maretin! Maret Share
/
Su.erior Dualit1 of 5ro"ucts 9 Ser4ices Su.erior Dualit1 of 5ro"ucts 9 Ser4ices
/
Cost Re"uction 9 8o-erin! 5rices Cost Re"uction 9 8o-erin! 5rices
/
@aster Deli4eries 9 Res.onse Time @aster Deli4eries 9 Res.onse Time
/
Inno4ations 9 5ro"ucti4it1 Im.ro4ements Inno4ations 9 5ro"ucti4it1 Im.ro4ements

De4elo.in! 8ea"ershi. Sills for $ision an" Chan!e# De4elo.in! 8ea"ershi. Sills for $ision an" Chan!e#
To focus on 5eo.le 2esi"es 5ro"ucts; 5rocess; 5rofits# To focus on 5eo.le 2esi"es 5ro"ucts; 5rocess; 5rofits#
To"a1; e4er1 .erson is a 5rofit Center# To"a1; e4er1 .erson is a 5rofit Center#

7sin! IT 2ase" tsunami of information an" i"eas for 7sin! IT 2ase" tsunami of information an" i"eas for
mana!in! the 2usiness mana!in! the 2usiness
8 8
THE BIGGEST CHA88E0GE @OR MA0AGEME0T
THE BIGGEST CHA88E0GE @OR MA0AGEME0T
I0 %* CE0T7R6 IS TO 5ROD7CE
I0 %* CE0T7R6 IS TO 5ROD7CE
+2*.%O.,I"%.(
+2*.%O.,I"%.(
RES78TS
RES78TS
7SI0G THE
7SI0G THE
O.,I"%.( .+!O1.C+!
O.,I"%.( .+!O1.C+!


O@
O@
THE COM5A06 A0D THAT TOO;
THE COM5A06 A0D THAT TOO;
B6 S5E0DI0G THE
B6 S5E0DI0G THE
3%.+!* I"I14
3%.+!* I"I14
5orld Class Companies do that4
5orld Class Companies do that4

Can
Can
5+
5+
"o itF
"o itF
9
Creatin! Sustaina2le Com.etiti4e A"4anta!e
Creatin! Sustaina2le Com.etiti4e A"4anta!e
Effective Leadership Effective Leadership
MQ MQ
Vision, Change Vision, Change
Guidance & Coach Guidance & Coach
Long Term Long Term
Org !evelopment Org !evelopment
EQ EQ
"rocess O#nership "rocess O#nership
Team $or% Team $or%
!ay to day !ay to day
&trategic Thin%ing &trategic Thin%ing
'Q 'Q
&trategy (ormulation &trategy (ormulation
'nnovation, Creativity 'nnovation, Creativity
Ena)ling Ena)ling
Medium Term Medium Term
Sustainable Sustainable
Competitive Competitive
Advantage Advantage
Holistic Holistic
Good Good
Governance Governance
Results Results
Built to Last Built to Last
10
!trategic anagement # 3usiness Policy
!trategic anagement # 3usiness Policy
SM Define"B
SM Define"B
!et of managerial
!et of managerial
decisions and actions
decisions and actions
that
that
determines the
determines the
long6term performance
long6term performance
of a
of a
firm4
firm4
B5 Define"B
B5 Define"B
General mana!ement orientation that
General mana!ement orientation that
loos
loos
in-ar"
in-ar"
for .ro.erl1
for .ro.erl1
inte!ratin! the firms
inte!ratin! the firms
functional acti4ities#
functional acti4ities#
11
!trategic anagement
!trategic anagement
/ighly .ated 3enefits7
/ighly .ated 3enefits7

Clearer sense of strate!ic 4ision for the


Clearer sense of strate!ic 4ision for the
firm
firm

Shar.er focus on -hat is strate!icall1


Shar.er focus on -hat is strate!icall1
im.ortant
im.ortant

Im.ro4e" un"erstan"in! of a ra.i"l1


Im.ro4e" un"erstan"in! of a ra.i"l1
chan!in! en4ironment
chan!in! en4ironment
12
!trategic anagement
!trategic anagement
"ot always a formal process7
"ot always a formal process7

)here
)here
is
is
the or!ani3ation no-F >0ot -here "o
the or!ani3ation no-F >0ot -here "o
-e ho.e it is+?
-e ho.e it is+?

If no chan!es are ma"e; -here -ill the


If no chan!es are ma"e; -here -ill the
or!ani3ation 2e in * 1ear; % 1ears; ( 1ears; *'
or!ani3ation 2e in * 1ear; % 1ears; ( 1ears; *'
1earsF
1earsF

)hat s.ecific actions shoul" mana!ement


)hat s.ecific actions shoul" mana!ement
un"ertaeF )hat are the riss an" .a1offs
un"ertaeF )hat are the riss an" .a1offs
in4ol4e"F
in4ol4e"F
13
Challenges to
Challenges to
!trategic anagement
!trategic anagement
Glo2ali3ation Glo2ali3ation

Internationali3ation of marets an" cor.orations Internationali3ation of marets an" cor.orations

Glo2al >-orl"-i"e? marets rather than national Glo2al >-orl"-i"e? marets rather than national
marets marets
Electronic Commerce Electronic Commerce

7se of the Internet to con"uct 2usiness transactions 7se of the Internet to con"uct 2usiness transactions

Basis for com.etition on a more strate!ic le4el Basis for com.etition on a more strate!ic le4el
rather than tra"itional focus on .ro"uct features rather than tra"itional focus on .ro"uct features
an" costs an" costs
14
E/Commerce / Somethin! that -ill ha4e a
E/Commerce / Somethin! that -ill ha4e a
.rofoun" im.act in 1our career+
.rofoun" im.act in 1our career+
Se4en Tren"sB Se4en Tren"sB

Internet forcin! com.anies to transform Internet forcin! com.anies to transform


themsel4es themsel4es

Maret access an" 2ran"in! are chan!in!; Maret access an" 2ran"in! are chan!in!;
causin! "isinterme"iation of tra"itional causin! "isinterme"iation of tra"itional
"istri2ution channels "istri2ution channels

Balance of .o-er shiftin! to the consumer Balance of .o-er shiftin! to the consumer

Com.etition is chan!in! Com.etition is chan!in!


15
Se4en Tren"s >continue"?
Se4en Tren"s >continue"?

5ace of 2usiness increasin! "rasticall1 5ace of 2usiness increasin! "rasticall1

Internet .urchasin! cor.orations out of their Internet .urchasin! cor.orations out of their
tra"itional 2oun"aries tra"itional 2oun"aries

,no-le"!e 2ecomin! a e1 asset an" source of ,no-le"!e 2ecomin! a e1 asset an" source of
com.etiti4e a"4anta!e com.etiti4e a"4anta!e
16
&earning Organizations
&earning Organizations
Define"B
Define"B
An or!ani3ation sille" at creatin!; acGuirin!;
An or!ani3ation sille" at creatin!; acGuirin!;
an" transferrin! no-le"!e an" at mo"if1in! its
an" transferrin! no-le"!e an" at mo"if1in! its
2eha4ior to reflect ne- no-le"!e an" insi!hts#
2eha4ior to reflect ne- no-le"!e an" insi!hts#
17
&earning Organizations
&earning Organizations
'our ain %ctivities7 'our ain %ctivities7

Sol4in! .ro2lems s1stematicall1 Sol4in! .ro2lems s1stematicall1

E:.erimentin! -ith ne- a..roaches E:.erimentin! -ith ne- a..roaches

8earnin! from their -on e:.eriences an" that of 8earnin! from their -on e:.eriences an" that of
others others

Transferrin! no-le"!e Guicl1 an" efficientl1 Transferrin! no-le"!e Guicl1 an" efficientl1
throu!hout the or!ani3ation throu!hout the or!ani3ation
18
Basic Mo"el of
Basic Mo"el of
Strate!ic Mana!ement
Strate!ic Mana!ement
@our Basic Elements
@our Basic Elements
19
Evaluation
and Control
and Control
!trategic anagement odel
!trategic anagement odel
Strategy
Formulation
Strategy
Implementation

Mission
Objectives
Strategies
Policies
Feedback/Learning
Environmental

Scanning
Societal
Environment
General Forces
Task
Environment
Industry Analysis
Structure
Chain of Command
esources
Assets! Skills
Com"etencies!
#no$ledge
Culture
%eliefs! E&"ectations!
'alues
eason for
e&istence
(hat results
to
accom"lish
by $hen
)lan to
achieve the
mission *
ob+ectives
%road
guidelines for
decision
making
Programs
Activities
needed to
accom"lish
a "lan
Budgets
Cost of the
"rograms
Procedures
Se,uence
of ste"s
needed to
do the +ob
)rocess
to monitor
"erformance
and take
corrective
action
Performance
External
Internal
Evaluation
and Control
20
+nvironmental !canning
+nvironmental !canning
21
Strate!ies
Strate!ies
Cor.orate Strate!1 Cor.orate Strate!1
Sta2ilit1 Sta2ilit1
Gro-th Gro-th
Man.o-er A"Hustments Man.o-er A"Hustments
Business Strate!1 Business Strate!1
Com.etiti4e strate!ies Com.etiti4e strate!ies
Coo.erati4e strate!ies Coo.erati4e strate!ies
@unctional Strate!ies @unctional Strate!ies
Technolo!1 lea"ershi. strate!ies Technolo!1 lea"ershi. strate!ies
Technolo!1 follo-er shi. strate!ies Technolo!1 follo-er shi. strate!ies
22
/ierarchy of !trategy
/ierarchy of !trategy
Cor.orate Strate!1
Business
>Di4ision 8e4el?
Strate!1
@unctional
Strate!1
23
Strate!1 Im.lementation
Strate!1 Im.lementation
&trategy
'mplementation
"rograms
*udgets
"rocedures
24
Initiation of Strate!1
Initiation of Strate!1
Triggering
event
I+e# CEO
IE,ternal intervention
IThreat of change in
o#nership
I"erformance gap
I&trategic inflection point
&timulus
for change
in
strategy
25
Dimensions of
Dimensions of
Customer Satisfaction
Customer Satisfaction
8 C , ! !
8 C , ! !
Dualit1 Dualit1
Cost Cost
Deli4er1 Deli4er1
Mana!ement Mana!ement
S1stems S1stems
Disci.line Disci.line
Ser4ice & De4elo.ment Ser4ice & De4elo.ment
Customer Customer
!atisfaction9 !atisfaction9
,elight9 ,elight9
,azzle # ,azzle #
+cstasy +cstasy
26
Customer 'ocus Customer 'ocus
Immerse with Immerse with
Customer4 5ork for Customer4 5ork for
Customers- Profit! Customers- Profit!
Process Process
Orientation Orientation
*P9 *8 *P9 *8
# !i: !igma # !i: !igma
eans to an +nd eans to an +nd
Cause # +ffect Cause # +ffect
*otal +mployee *otal +mployee
Involvement Involvement
*hrough *hrough
Continuous Continuous
Improvement Improvement
Program Program
&eadership # &eadership #
anagement anagement
.ole of
.ole of
&eadership #
&eadership #
anagement
anagement
/
/
5hat should
5hat should
they do to stay
they do to stay
Competitive;
Competitive;
27
3.IC +conomies
3.IC +conomies

)orl" Economic @orum sa1s that Bra3il; Russia ; In"ia an" )orl" Economic @orum sa1s that Bra3il; Russia ; In"ia an"
China are the four economies to 2e -atche" for the ne:t China are the four economies to 2e -atche" for the ne:t
%' 1ears %' 1ears

Of these four; .erha.s In"ia is luc1 to ha4e 2oth Of these four; .erha.s In"ia is luc1 to ha4e 2oth
no-le"!e .o-er an" manufacturin! com.etenc1 no-le"!e .o-er an" manufacturin! com.etenc1

That is -h1 some of the maHor R&D Centers from the That is -h1 some of the maHor R&D Centers from the
-orl" o4er are shiftin! to or .lannin! to shift to In"ia -orl" o4er are shiftin! to or .lannin! to shift to In"ia

3ut9 3ut9 -e ha4e -e ha4e miles to go before we reach anywhere near miles to go before we reach anywhere near
e:cellence ! e:cellence ! Com.lacenc1 at this sta!e is a lu:ur1 -e can Com.lacenc1 at this sta!e is a lu:ur1 -e can
ill affor"+ )e nee" to mo4e on resolutel1 an" relentlessl1 ill affor"+ )e nee" to mo4e on resolutel1 an" relentlessl1
to catch up with and overtake the other three ! to catch up with and overtake the other three !
28
India 6 1ni<ue Combination
India 6 1ni<ue Combination
India = >nowledge Power ? !kills of +:ecution
India = >nowledge Power ? !kills of +:ecution
In"ia has uniGue a"4anta!e -here no-le"!e;
In"ia has uniGue a"4anta!e -here no-le"!e;
ser4ice an" e:ecution are in4ol4e"#
ser4ice an" e:ecution are in4ol4e"#
E#!#B CEOs; Research & De4elo.ment ; Teachin!;
E#!#B CEOs; Research & De4elo.ment ; Teachin!;
Healthcare; 0ursin!; 5h1siothera.1; Hos.italit1;
Healthcare; 0ursin!; 5h1siothera.1; Hos.italit1;
Domestic hel.; Tourism; Entertainment; 8o!istics;
Domestic hel.; Tourism; Entertainment; 8o!istics;
SCM; Soft-are De4elo.ment; ITES; Tool Room;
SCM; Soft-are De4elo.ment; ITES; Tool Room;
@oun"r1 & @or!in!s; 5recision manufacturin! etc#
@oun"r1 & @or!in!s; 5recision manufacturin! etc#
&atest7
&atest7
6oun! In"ians for the American Arm1+
6oun! In"ians for the American Arm1+
5hich way will India move strategically;
5hich way will India move strategically;
&adies # $entlemen9
&adies # $entlemen9
It is in your hands @@4you make the call!
It is in your hands @@4you make the call!
29
Must Rea" in Strate!ic Mana!ement
Must Rea" in Strate!ic Mana!ement
1A 1A
B
B
!trategy !afari-
!trategy !afari-
21 Henr1 MI0TJBERG et al;
21 Henr1 MI0TJBERG et al;
5earson E"ucation; 0e- Delhi; %''(
5earson E"ucation; 0e- Delhi; %''(
2A 2A
B
B
aking !trategy 5ork-
aking !trategy 5ork-
21 8a-rence
21 8a-rence
HREBI0IA,; 5earson E"ucation; 0e- Delhi;
HREBI0IA,; 5earson E"ucation; 0e- Delhi;
%''(
%''(
CA CA
B
B
!trategic anagement # 3usiness Policy- De9
!trategic anagement # 3usiness Policy- De9


21 Thomas )HEE8E0 an" Da4i" H70GER;
21 Thomas )HEE8E0 an" Da4i" H70GER;
5earson E"ucation ; 0e- Delhi; %''K
5earson E"ucation ; 0e- Delhi; %''K
30 30
Than 1ou for 1our attention+
Than 1ou for 1our attention+
%ny <uestions please;
%ny <uestions please;