Module I Business Environment and Corp. Strategies
Transcript of Module I Business Environment and Corp. Strategies
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Amity Business SchoolMBA Semester II
Business Environment and Strategic Analysis
Himanshu Mahobia
AMITY BUSINESS SCHOOLModule I
CONTENTS
• SOCIO-ECONOMIC ENVIRONMENT OF BUSINESS• VISION AND MISSION• STRATEGIC IMPLICATIONS OF COMPANY DECISIONS• EVOLUTION OF STRATEGIC MANAGEMENT PARADIGM• CONCEPT OF CORPORATE STRATEGY• STRATEGIC RESPONSE TO CHANGES IN BUSINESS
ENVIRONMENT
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AMITY BUSINESS SCHOOL Business Environment
• Political Environment• Demographic Environment• Legal Environment• Economic Environment• Social Environment• Cultural Environment• Technological Environment• Natural Environment
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AMITY BUSINESS SCHOOL Socio-Economic Environment
• GDP • Purchasing Power Parity• Social Class• Foreign Direct Investment• Economic Policies• Inflation• Exchange Rate• Resource Availability • Urbanization, Westernization and Modernization
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AMITY BUSINESS SCHOOLVision
»What is Vision?
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AMITY BUSINESS SCHOOLMission
»What is Mission?
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Constituents of Corporate Mission Statement
• Ambition and visionary zeal
• Organizational Values and Beliefs
• Specifications of Businesses
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Strategic Implications of Company Decisions – A few cases
• Acquisition of Jaguar and Land Rover brands by Tata.
• Britannia exiting Joint Venture with its French Partner.
• Godrej Sara Lee joint venture
• Future Implications of possible acquisitions of Sara Lee’s fertilizers business by Godrej
• Future implications of a strategic tie-up between Microsoft and Yahoo
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• Bajaj Renault Nissan’s three way joint venture to produce ultra low cost car
• Onida’s diversification into cellphone business
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Strategic Implications of Company Decisions – A few cases
AMITY BUSINESS SCHOOL What is Strategy
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AMITY BUSINESS SCHOOL5Ps of Strategy
• Strategy as a Plan (intended)
• Strategy as a Pattern (realized)
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Strategy as Position
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Strategy as Perspective
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Strategy as Ploy
• specific "maneuver" intended to outwit an opponent or competitor
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Strategic Planning Gap
Intensive Growth
Integrative Growth
Diversification
Present Sales
Expected Sales
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Intensive Growth
• Market Penetration
• Product Development
• Market Development
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Igor Ansoff’s Product Market Expansion Grid
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Market Penetration
• Adding non-users
• Attracting competitor’s customers
• Increasing usage
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Product Development
• New Products, same market segments
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Market Development
• Same Product, New Market Segments
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Diversification• Concentric Diversification
• Horizontal Diversification
• Conglomerate Diversification
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Concentric Diversification
New Products, new markets with
• Similarity in production and/or marketing and distribution
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Horizontal Diversification