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SESSION - 1

Introduction to Business Policy and Strategic Management

 Is strategy the most important driver of superior performance?

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How Mind tree founders decided what the firm

would be doing, before its start?

Whether strategy follows expertise or strategyfollows imagination with intention: discuss

How did the Mind tree imagine the right way?

Why some hypotheses made by a firm lead topoor performance?

Why the growth withered from 2008 onwardseen when the leaders and strategy were same?

What is superior performance for Mind tree?

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 A multidimensional concept  The central concept on which

or around it an action for

winning is designed   Early use in hunting and

warfare  In business organization

context, theory evolved after

19!s  "usiness arena e#uated with a

battlefield   $ifferent definitions

- %inning formula- &ore decision-  "usiness aspiration-  An idea set for

 getting what you

want - &ourse chart -  A grand hypothesis-  A thread in all

salient decisions

'a winning idea set to reach the future beneficial state of a firm( 

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$ broad concept that embraces the entire set of salientdecisions and actions that determine the long runperformance of an organiation -.oteen /81

lanning, resource management, control, and ealuation forsuperior long run performance

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re history: "aylor,4ernard, !imon,4ower

5inancial planning

phase: *ew man,aul 6awrence,+ruc7er, !elni7 

5orecast based

planning phase:3handler, $nsof,

$ndrews

rofession of

strategicmanagement:

#umelt, Wringler,Mintberg

&rowth of thediscipline -/80s1:orter, "om eters

#esource based iew-/0s1: 4arney,"eece, rahlad

ractice school-2000s1:

arab7ows7i,&oindara9an, +re9or

Human imagination-20/0s1: ;i; model

"able: / 5ig: /

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5ocus on offenceor defense

3ollectintelligence on

enemy

5irst moeradantage

6eeragingstrengths

3oeringwea7nesses

3reatingperception of

strength

Winningterritory with

least cost

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Traditionally a 3 step process:

• Strategy formulation after appraisal• Implementation with a plan•Monitoring & evaluation

Means-ends relationship (Fig 1.7)

Constant environmental scanning

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5irst: )ntrospect on what you Bwant;< 'our wants ta7e you to the ision !econd: )dentify who you are C who you want to be< Who you are C

want to be clarifies mission "hird: )magine how you can meet your wants that are in harmony with

your mission 5ourth: Ma7e the list of options that come up D process of inestigationE

introspectionE insightsE imagination< F 5ifth: $ssess your strengths, wea7ness, contextual constraints C

opportunities !ixth: Ma7e strategic choice of the path, based on the insights from the

personal !W(" !eenth: Write down the story in which you would be describing what

you would do, would not do, where you do, with whom, how you would

proceed<

%ighth: %nact the scriptG story C be in charge of the story as its hero< *inth: #etreat often for a wee7 to inspect C ealuate how it goes< "enth: 5ill the gaps C enhance the story by interEpositioning<

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Define what is superior performance

Decide the inputs required Craft unique configuration of resources Develop processes, systems, policies

  STRATEG

!ay of sourcing resources "anner of using resources Timing, staging, phasing, milestones Designing metrics for measuring

#rograms, $udgets, dash$oard

!uperior

performance

How ?

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!tarts with

inestigationEintrospection -"able

/

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Gree% word& 'Strategos(  ) the art of the general

General is in charge of the whole& #reparing

Equipping *rgani+ing Assessing #lanning Eecuting

Artistry ) mastery - originality in choices, decisions andactions

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More than 25important theories

Theory is an‘explanation of the

‘why’

Theories oforganizations

Theories inorganizations

Theories• Guides learning• Lights the way• Train judgments• Avoid pitfals

Ex: Resource basedTheory, Agencytheory, Institutional

theory

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A plan, pattern, ploy, practice, process

A unique position, perspective, programming

Strategy as fit, shaping

As sustaina$le competitive advantage

Shared mental representations pursuing cognitivelydistant opportunities

As choice to do or not to do

As stretch hypothesis to $e validated

#roduct mar%et scope

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Envisioning a$out the future state of the organi+ation Deliver superior value $y developing an offering of

utility with low imita$ility .rea% economic equili$rium law and generate

surpluses to fuel growth

Achieve superior performance, consistently anddura$ly

/armony, direction and coherence to all decisions 0tili+e all resources1orchestrating resources Reali+e vision with equity, efficiency

2n1$uilt flei$ility for adaptation Satisfy interests of sta%eholders .ecome a legitimate, reputed institution

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Growth as

expansion(Fig 1.2)

Growth asidentity (Fig

1.3)

Growth asincrease innet worth

Growth asleadership

ChallengesSpace togrow (Fig1.1)

Resources &cost

Avoidingthreats

Cooperationfrom

stakeholder

Enhancingstatus

TYPES OF GROWTH & ITS CHALLENGES

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Three issue clusters 34ig 5678 2nput issues #rocess issues *utput issues

.asic model compartmentali+es 2n practice, the phases and focus are continuous and adaptive

(pportunity C "hreats

%fficiency C Iuality

%ffectieness C !ustainability

4$!)3 M(+%6 (5 !M

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!trategic Management engages: -5ig /

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!trategyproidesdirectionand path-5ig /

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$nalysis 5acilitation &uide roblem framing Measurement lanning %xecution 3atalyst +ecision ma7ing 3ommunication

3ollaboration

D#eliability, @alidity, accuracy,

adaptabilityF

%!"%6+, %"(

!cenario planning 4uyer utility map @alue chain

analysis #esults based

framewor7  J B!; framewor7  !ix !igma +elphi techniLue

%##3 grid 4usiness process

reengineering

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$cademicians

ractitioners 3onsultants %nthusiasts "hought

leaders

3oncepts, ideas

"heories,prescriptions

"ools, framewor7s "echniLues 4enchmar7s

hilip !elnic7 idea of distinctie competence

$lfred 3handler structure follows strategy

Michael orter N forces analysis

ay 4arney #esource 4ased iew of strategy

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Locate two retail shops selling readymade garments or clothes in the townand identify whether the shops have a strategy. Explain how you observedtheir strategy and describe it.

Form two or three member teams and each team make a two page note onthe significant contributions of strategy forerunners through web search.

Make a list of the competitive advantages of three reputed firms sellingmobile phone handset brands in your town in a tabular format and assesswhich of the three companies will grow better in future. Explain thereasons for your choice of the company, for future growth.

Which of the mobile phone companies in exercise 3 above has benefitedmost from the learning curve? Assess the relevance and role of learningcurve and innovativeness in the growth of the three firms. By taking onemodel released two years before, make a graph of the learning curve of the

three firms with cost of the handset in Y axis and number of piecesmanufactured in X axis. Organize a debate on whether learning curve or innovativeness gives moreor better competitive advantage to a firm using examples of products fromfirms.

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How a tagline helps a company to get threeE fold increase in

turnEoer in eight years?

What are the strengths and capabilities of 4ritannia ?

What are the adantages of shifting 4ritannia from a biscuitcompany to a food company ?

what is the core of the strategy or common thread in alldecisions of 4ritannia ?

)s there enough space to grow for all biscuit companies in )ndia?)f yes, what winning formulae can be offered to a firm ?

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