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STRATEGIC MANAGEMENT
IMPLEMENTATION OF STRATEGIC
MANAGEMENT TOOLS AND STRATEGIES
Mubashir Mirza
Umer Rehan
Waqar Ahmed
Waqas Ali Syed
Ashar Jawad
MBA 5 (Eve)
Scheme of Presentation
Introduction
Mission Statement
External Factor Evaluation (EFE Matrix)
Competitive Profile Matrix (CPM)
Threats, Opportunities, Weaknesses, Strengths
Analysis (TOWS) Matrix
Strategic Position and Action Evaluation (SPACE)
Matrix
Boston Consultant Group (BCG) Matrix
Balanced Scorecard
Blue Ocean Strategy
Introduction
Bata Pakistan was established in 1942 when
Pakistan came into being, it was ready to serve
the nation.
http://www.bata.pk/about-us.html
Introduction
During the last year Bata produced over 17.2 million
pairs and sold 16.9 out of them with the help of their
large distribution network of 400 Retail Stores and
Agencies, 13 Wholesale Depots, 23 Distributors and
about 400 Registered Wholesale Dealers who are selling
goods as independent retailers.
THREATS
1 Increasing competition with Local Brands 0.1 3 0.3
2 Increasing competition with International Brands 0.15 3 0.3
3 Inflation 0.04 2 0.08
4 Power shortage 0.03 1 0.03
5 Customer care and Value Added Services 0.04 2 0.08
6 Pricing 0.04 2 0.08
TOTAL 1.0 2.92
Competitive Profile Matrix (CPM)
TOWS Matrix
2. Advanced manufacturing plants.
3. It annually produces more than 12
million pairs of leather, rubber, canvas
2. Old fashion and old designs.
3. Retail management and customer
support.
and PVC Plastic footwear of high 4. Supply chain and Inventory
quality. management issues.
http://investing.businessweek.com/businessweek/research/stocks/financials/ratios.asp?ticker=BATA:PA
SPACE Matrix
http://investing.businessweek.com/businessweek/research/stocks/financials/ratios.asp?ticker=BATA:PA
SPACE Matrix
Financial Strength (FS) Environmental Stability (ES)
(+1 worst, +6 best) (-6 worst, -1 best)
Return on Assets 6 Rate of inflation -5
Leverage 4 Technological changes -4
Net income 4 Price elasticity of Demand -3
Income/Employee 4 Taxation -3
Inventory Turnover 4 Barriers -2
FS Average 4.4 ES Average -3.4
YY Axis
Axis
FS
FS ++ ES
ES == 1.0
1.0
XX Axis
Axis
CA
CA ++ IS
IS == 2.4
2.4
(1.0, 2.4)
Conclusive
Conclusive Strategy
Strategy to
to be
be
opted
opted after
after analysis;
analysis;
AGGRESSIVE
STRATEGY
** Market
Market Penetration
Penetration
** New
New Product
Product Development
Development
BCG Matrix for Bata
Balanced Scorecard
Learning and Growth
Objectives Measures Targets Strategic initiatives
Competencies Training and 65% of Employees Specialized Trainings
Development
Employee Retention Employee turnover rate Limit turnover to 2 % High rewards for best performers
Customers
Objectives Measures Targets Strategic initiatives
Efficient delivery Improved logistics and 98% on time Rewards for meeting delivery/cycle
time management support time
Customer Loyalty Surveys/Feedback at 70% customer Customer service and Product
the time of sales retention Warrantees
Customer Growth Market share 25% growth in Dealers to be given attractive margins
Market share for exceeding periodic targets
Balanced Scorecard
Internal Processes
Objectives Measures Targets Strategic initiatives
Product innovations Quality/performance Improved designs and Research and development budget
ratings and Surveys endurance capability to be increased by 25%, involving
customers input in innovation
Improved Supply Chain Delivered Cost of 15 % cost reduction Improved stock and spares
Management Raw Materials through supply chain management and supplier
Distribution Cost efficiency collaborations
Quality of Dealers Ratings of Dealers Evaluate strategic hubs Setup new dealerships and
and core markets showrooms
Improved Accounting IFRS/GAAT standards 100 % Conformity Qualified and Ethical Professionals
Practices to be hired
Financials
Objectives Measures Targets Str. Initiatives
Revenue maximization Sales Growth by market penetration 10% increase in each
product line
Cost minimization Reduced raw material and process costs Unit Cost reduction
Return on Capital Ratio 5% up
Employed
Return on Assets Ratio 5% up
“Right sizing” Less labor intensive work environment 15% labor cost cut
Improve Shareholder Increase in market value of shares and 5% EPS
equity increased dividend 10% DPS
Blue Ocean DEA
Manufacturing of Car interiors and
accessories.
Conglomerate diversification.
The raw material can be optimally utilized.
Collaborations in distribution channels of
partners (e.g. Toyota, Honda, Suzuki).
Cost leadership through economy of scales.
Conclusion
Bata Pakistan should focus on highlighting itself as a
leading choice for the youth and athletes.
Mubashir Mirza
Umer Rehan
Waqar Ahmed
Waqas Ali Syed
Ashar Jawad
MBA 5 (Eve)