BUSINESS IS TO BE BUSY

• WE ARE IN BUSINESS TO SUSTAIN AND GROW• RANDOM GROWTH OR PLANNED GROWTH ?• BUSINESS IS ALL ABOUT:

– INVEST– CONQUEST– ACCUMULATE– GROW– IF POSSIBLE BE A PART OF SOCIAL DEVELOPMENT-

CORPORATE SOCIAL RESPONSIBILITIES.

SUSTAINANCE AND GROWTH

• IS SUSTAINANCE & GROWTH MANAGEMENT BY :– WISH ?– INTENTION ?– DEFAULT?– EXPERIENCE– LUCK ?– DESIGN ?– VISION?– LEARNING FROM PAST, ACTING IN PRSENT AND

THINKING OF FUTURE?

Pioneer foresights

• Eastman, Firestone, Bell, Edison,Watson, Wright Brothers, Ford Motors of course.

• IBM: PCs would be limited to “entry systems” and would co-exist with mainframes, as PC users will move up t powerful computers.

• Biometric materials, satellite based communication – phonehome

• Machines capable of emotions, influence and learning – interaction with humans,

• Bio-remediation – custom driven, designed organisms to clean up earth’s environment.

• Cars with on-board navigation, collision avoidance, • Pesonally tailored multimedia educational curriculla• Disease prevention – GENE REPLACEMENT.• GENETIC CODING in demographic design

Alliances

• Interactive TV

TIME WARNER

MATSUSHITA

TOSHIBA

SEGA

AT & T

TCI

IMAGING APPLICATION

KODAKMOTOROLA

AT & T APPLE

SILICON GRAPHICS

GENERAL MAGIC

MOTOROLA

MATSUSHITAPHILIPS SHARP

SONYAT & T

FUJITSU NTT

PERSONAL COMMUNICATION

COMPETING FOR THE FUTURE

COMPETITITON TO DEVELOP AND ACQUIRE CONSTITUENT SKILLS & TECHNOLOGIES

COMPETITION TO SYNTHESISE WITHCORE COMPETENCIES

COMPETING WITH INNOVATIVE PRODUCT AND SERVICES

FUTURE IS UNLIMITED BUT

IMAGINATION AND INNOVATION IS THELIMITING FACTOR.

Why companies Fail??

Unparalleled trackOf success.

Accumulation ofAbundant resources

No gap betweenExpectations & Performance.

Assets willWin - out

Complacent withCurrent

performance

Resources Substitutes for

Creativity

INABILITY TO ESCAPEPAST GLORIES

OptimisedBusiness Systems

Success ControlsStrategy.

Deeply etchedrecipes

Momentum Mistaken forleadership

Vulnerability toNew Ideas

Failure to Reinvent

leadership

INABILITY TO INVENTTHE FUTURE

What is Strategy?

“Strategy is the direction and scope of an organization over the long term, which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations”

Strategic Management Defined

• Set of managerial decisions and actions which determine the long-run performance of a firm.

• NOT ALL DECISIONS ARE STRATEGIC!• Criteria:

– Rare– Consequential– Directive

What is the Strategy?• Identify competitive approach

– Low-cost leadership– Differentiation– Focus on a particular market niche

• Determine competitive scope– Stages of industry’s production/distribution

chain– Geographic coverage– Customer base

• Identify functional strategies• Examine recent strategic moves

Why Do Strategies Evolve?• There is always an ongoing

need to react to– Shifting market conditions

– Fresh moves of competitors

– New technologies

– Evolving customer preferences

– Political and regulatory changes

– New windows of opportunity

– Crisis situations

ENVIRONMENTAL SCANNING

STRATEGY FORMULATION

STRATEGY IMPLEMENTATION

EVALUATION & CONTROL

INDUSTRY AND COMPETITION ANALYSIS

COMPANY SWOT ANALYSIS.

VISION, MISSION, POLICIES, VALUES AND OBJECTIVES OF SURVIVAL AND GROWTH

FEED BACK

STRATEGIC MANAGEMENT MODEL: STEPS

Strategic Management - Components

ENV. SCAN

External:-Economic-Societal-Political

- technology

Industry CompetitionSWOT

INTERNAL-Structure-Culture-SWOT- Resources

STRATEGY FORMULATION

MISSION OBJECTIVES

STRATEGIES

• BENCH MARKING• CORE COMPETENCE•COMPETITIVE ADVANTAGE • BUSINESS• FUNCTIONAL• OPERATIONAL

POLICIES

Broad guidelinesFor decisions

making

STRATEGY IMPLEMENTATION

Strategic Planning

Plans & Programmes

MarketingTechnologyOperationsFinancialsHRM

Quality mgt.Processes

Evaluation &monitoring

PerformanceMeasures

Feed back System

MISITES

CONCEPT OF SERVED MARKETS

REVENUE &MARGIN STURCTURE

CONFIGURATION OFSKILLS AND ASSETS

FLEXIBILITY & ADAPTATIVENESS

What are our values? How have we segmented our market? What kind of customers we serve? WhereAre our customers?

Where in the business systems we take profit? WhereDo our margins come from? What has determined ourSize of our margins? What are costs – price drivers?

What is the process e know to do the best in the class?What infrastructure supports our business?What skills predominates?What is the trajectory of our development spending?

How alert are we to new value delivery models?How easily could investment programmes be re-oriented?How easily could the infrastructure be re-configured?Which constituencies would offer most resistance to change?

Strategic Management – effectiveness

• Factors influencing Strategic management:– Core competence– Customer orientation.– Competitive advantage– Corporate governance– Managing change, technology scan and

adaptation, innovation, migration path, service leadership.

– Balanced Score Card – performance monitoring– Functional plans– People, culture, overall leadership.

The BCG Growth-Share Matrix

Cash Generation (market share)

High Low

High

Low

Cash Use (growth rate)

BDC’s Growth/Share Matrix

The BCG Growth-Share Matrix

Market Share

Sales relative to those of other competitors in the market (dividing point is usually selected to have

only the two-three largest competitors in any market

fall into the high market share region)

Growth Rate

Industry growth rate in constant dollars (dividing

point is typically the GNP’s growth rate)

Description of Dimensions

Industry Attractiveness-Business Strength Matrix

Industry Attractiveness

High LowMedium

High

Medium

LowBu

sin

ess

Str

eng

th

Industry Attractiveness-Business Strength Matrix

Industry Attractiveness

Subjective assessment based on broadest

possible range of external opportunities & threats

beyond the strict control

of management

Business Strength

Subjective assessment of how strong a

competitive advantage is created by a broad range

of the firm’s internal strengths & weaknesses

Description of Dimensions

The Market Life-Cycle Competitive Strength Matrix

Stage of Market Life Cycle

Introduction Growth Maturity Decline

Lo

wM

od

erat

eH

igh

Co

mp

etit

ive

Str

eng

th

Push: Invest

Aggressively

Caution: In

vest

Selectively

Danger: Harvest

The business unit competitive position

Strong Average WeakThe Life-Cycle Portfolio Matrix

Development

Growth

Competitive shakeout

Maturity

Decline

Saturation

Th

e In

du

stry

’s s

tag

e in

th

e ev

olu

tio

nar

y lif

e cy

cle

The GE Nine-Cell Planning Grid

Are you Managing for Growth?What Is Your Mission?What Is Your Long Term Aspiration?What Will You do to Achieve the Vision?What Core Beliefs and Principles Will Guide You Toward the Vision? What Are the Key Priorities? What are the Critical Business Issues?What Must We Do to Achieve Our Goals?

What External Factors affect Your Market?What Are Your Core Competencies?What are Your Strengths & Weaknesses?Where Is Your Market Headed?What Are the Competitors Strategies?What are the Major Threats & Obstacles?What Are Your Strategic Imperatives?

What Do Your Customers Want?What Is Important To Your Customers?How Satisfied Are They Today?How Do You Rate Vs. Competition?How Effective Are You At Resolving Customer Complaints?

Do Results Match or Exceed Priorities?Where Are the Shortfalls?What Corrective Actions Are Needed?Are the Key Initiatives on Target?Do We need to Adjust Plans?

Which Processes Impact Critical Performance Measurer the Most?Are These Processes Mapped & Documented?Where Are the Performance Gaps?Who will Champion This Improvement?How Will the Processes Be Improved?What Are the Improvement Benchmarks?What Is the Timetable for Completion?

What Are The Performance Gaps?What are Your Top Priorities for Improvement?What Are Your 1 to 5 Year Financial Goals?What Are Your 1 to 5 Year Financial Goals?What Are Your Goals for Improving…….

- Customer Value- Employee Satisfaction?

- Market Share- Business Results?

What Vital Measurements Must Be Monitored( Financial and Operational)?

What Is the Current Performance Level?What Are the Performance Targets For this Year? Three Years?What Are the Industry Benchmarks for Each Measure?Where Are the Biggest Performance Gaps?

Strategic Planning

BusinessAssessment

Planning &Deployment

CoreProcess

Improvement

ReviewProcess

CustomerManagementProcess

Senior Management

Operations Management

Dept Management

Job Performers1

2

3

45

Do you Manage Your Customer Database?How Well Are You Managing Customer Relations?

25

Porter’s Generic Competitive Strategies

26

Porter’s Competitive Strategies

• Cost Leadership:– Low-cost competitive strategy– Aimed at broad mass market– Need to achieve:

• Aggressive construction of efficient-scale facilities• Cost reductions• Cost minimization

27

Porter’s Competitive Strategies

• Differentiation:– Broad mass market– Unique product or service– Need to:

• Charge premiums• Lower customer sensitivity to price by offering

unique features or benefits• Make it hard for competitors to copy your product

28

Porter’s Competitive Strategies

• Focused Cost Leadership:– Low cost competitive strategy– Focus on particular buyer group or market– Need to:– Stay focused on niche (don’t try to please all)– Seek cost advantage only in target market

29

Porter’s Competitive Strategies

• Focused Differentiation:– Focus on particular group or geographic

market– Seek differentiation in targeted market

segment– Serve special needs of narrow target market

30

Porter’s Competitive Strategies

• Stuck in the middle:– No competitive advantage (not cost, not

differentiation, no niche)– Will result in below-average performance

GROWTH STRATEGIES - GENERIC

• INTENSIVE GROWTH

• INTEGRATIVE GROWTH

• DIVERSIFICATION GROWTH

• HORIZONTAL

• VERTICAL – INCLUDING FORWARD AND BACKWARD

INTEGRATION.

Company Experiences, Know-how, Resource Strengths

and Weaknesses,

and Competitive Capabilities

A Company’s Strategy is Partly Planned Planned andand Partly ReactivePartly Reactive

Abandoned strategy

features

Planned StrategyNew initiatives plus ongoing strategy features continued from prior periods

Adaptive reactions to

changing circumstances

Reactive Strategy

Actual Company Strategy

Each Functional Area Has a Number of Sub-Strategies & Tactics

PlaceOutletsChannelsCoverageTransportationStock level

PlaceOutletsChannelsCoverageTransportationStock level

PromotionAdvertisingPersonal sellingSales promotionPublic Relations

PromotionAdvertisingPersonal sellingSales promotionPublic Relations

PriceList priceDiscountsAllowancesCredit itemsPayment period

PriceList priceDiscountsAllowancesCredit itemsPayment period

ProductFeaturesBrand namePackagingServiceWarranty

ProductFeaturesBrand namePackagingServiceWarranty

Marketingmanager

Marketingmanager

Cohesive marketing mix

PromotionPlace

Price

PromotionPlaceProduct

Tests of a Winning Strategy

• GOODNESS OF FIT TEST

– How well is strategy matched to firm’s situation?

• COMPETITIVE ADVANTAGE TEST

– Does strategy lead to sustainable competitive advantage?

• PERFORMANCE TEST

– Does strategy boost firm performance?

MAJOR CHANGES IN GLOBALIZATION

RISE OF CHINA and INDIA More broadly, A half century after end of colonialism

new role of developing world New sources of economic growth New political power New patterns of trade

CHANGING GLOBAL FINANCIAL SYSTEM ENERGY

Combination of scarcity and environmental concerns (global warming) will force changes in production and consumption

The adjustment of Global Economy to these changes poses major risks and opportunities

New opportunities

• New markets– Access to the global market place means that

expansion is not limited by the size of local markets

• New sources of supplies of inputs– Again, firms are not limited to inputs available locally

• Wider range of commodities, lower prices, higher quality, meeting specific needs

• A global market place for talent

New opportunities

• New sources of finance– Increasing flow of funds to emerging markets– From an ever expanding set of sources

• Most recently, growth of sovereign funds

– In a wide range of forms (debt, equity)

• Access to global technology– Means that “catching up” can occur quickly

New risks

• Rapid changes in global comparative advantages– New competitors– New products, new technologies

• Changes in global scarcities– Reflected in volatility in commodity prices– Especially in energy markets– Linking of energy and agriculture

New risks

• Financial market volatility– Affecting even countries that manage their own

markets well• Sub-prime mortgage crisis• Large changes in risk premium

• New rules of the game– International rules (WTO, IMF, Basle)– Domestic responses to the changing global

landscape• Backlash against globalization

While the global landscape has changed, the world is still not flat…

Growing disparity between richest countries and poorest countries

Growing disparities within most countries of the world Threat of job loss in advanced industrial countries

Even for well educated (outsourcing) Even if economy maintains full employment, wages can be

depressed Globalization has played an important role in these

disparities Predictable effect on inequality within advanced

industrial economies Unfair trade treaties have compounded problems in

developing countries Problems compounded by asymmetric liberalization

Underlying problem Globalization has meant that the world is

more interconnected; what happens in one part of the world has impact on other parts

There is greater need for collective (cooperative) action

But economic globalization has outpaced political globalization

Rising energy prices Problems of global warming will compound

problems of energy insecurity and Mideast turbulence– China and India have large coal deposits, few oil and

natural gas reserves– Problems in some of alternatives

• U.S. corn based ethanol very inefficient• Biofuels limited by water scarcity• Carbon storage technology unproven

– Could dampen economic growth unless there is substantial increase in energy efficiency and conservation—changes in patterns of consumption and production

Globalization presents new risks Changing comparative advantages due to rising

economic power of China and India New protectionism Global financial instability

Disorderly adjustment of global imbalances New risks posed by financial innovation Re-pricing of risk U.S. economic downturn

In globalized world, what happens in one country affects all others

Global warming

Globalization also presents new opportunities…

One of objectives of banks and financial markets is not only to manage these risks, but also to seize now opportunities, in part by anticipating these changing trends in the global landscape

90’S BEYOND- PARADIGM SHIFT IN STRATEGISING BUSINESS GROWTH –

migration path

Creating & managing coalition

Investing inCore

competencies

Learning & Experimenting in

Markets & Operations

Building Global

Brands & Distribution

Setting standards & Influencingregulations

Evolving digital place

Consumer electronics:Sony, Philips, Matsushita

Sharp, Toshiba

Professional electronics:Kodak, Xerox, cannonIntel, Hughes, Motorola

Information content:CBS, 3 DO, Time Warner

Disney, Viacom,

Digital highway:AT & T, MCI, British telecom,

Baby Bells, McCaw, TCI.

Computer systems:IBM, NEC, Siemens,Alcatel, DEC, Apple,Hewlett – Packard.

Info tech services:Computer services, Anderson consulting.

Operating systems & Applications:

Micro soft, lotus, electronic arts etc.,

GRAND STRATEGY

• ALL THE SQUARES WERE REMOVED AND DIGITAL SPACE GOT EVOLVED.

Grand Strategy StepsSummaryStep One.  Answer "what's your Theory of Business?"  Step Two.  Identify your Values, Beliefs, Attitudes and Capabilities.  Step Three.  Write your Mission Statement.  Step Four. Perform an Environmental Scan.  Step Five. Perform a SWOT Analysis.  Step Six.  Determine your Strategic Focus.  Step Seven.  Seek Performance Breakthroughs.  Step Eight.  Understand and Apply Cause and Effect Relationships.  Step Nine. Develop a Strategy Map.  Step Ten.  Translate goals into KPMs and Perform Gap Analysis.  Step Eleven.  Prepare a Scorecard to track and drive Your Grand Strategy.  Step Twelve. Execute, Adjust, Execute.

Grand Strategy Selection Matrix

III

III IV

Overcome weaknesses

Maximize strengths

Internal (redirected resources within the firm)

External(acquisition or merger for resource capability)

Turnaround or retrenchmentDivestitureLiquidation

Vertical integrationConglomerate diversification

Concentrated growthMkt. DevelopmentProd. DevelopmentInnovation

Horizontal integrationConcentric diversificationJoint venture

Model of Grand Strategy Clusters

I II

IV III

Rapid market growth

Slow market growth

Strong competitive

position

Weak competitive

position

1. Concentrated growth

2. Vertical Integration

3. Concentric diversification

1. Reformulation of concentrated growth

2. Horizontal integration3. Divestiture4. Liquidation

1. Concentric diversification

2. Conglomerate diversification

3. Joint venture

1. Turnaround or retrenchment

2. Concentric diversification3. Conglomerate

diversification4. Divestiture5. Liquidation

Grand Strategy Selection Matrix

Overcome Weakness

Maximize Strengths

Vertical integration

Conglomerate diversification

Horizontal integration

Concentric diversification

Joint venture

Turnaround or retrenchment

Divesture

Liquidation

Concentrated growth

Market development

Product development

Innovation

Internal (redirected resources within the firm)

External (acquisition or merger for resource capability)

I

IV III

II

Model of Grand Strategy Clusters

Rapid Market Growth

Slow Market Growth

• Reformulation of concentrated growth

• Horizontal integration

• Divestiture

• Liquidation

• Turnaround or retrenchment

• Concentric diversification

• Conglomerate diversification

• Divestiture

• Liquidation

• Concentrated growth

• Vertical integration

• Concentric diversification

• Concentric diversification

• Conglomerate diversification

• Joint ventures

Strong Competitive Forces

Weak Competitive Forces

I II

IIIIV

DESTINATION INDIA

REACH OUT FOR EAST

105 105 135 145103 125 204 231191 237

398453

0200400600800

1,000

1999-00

2002-03

2005-06

2006-07

US

D B

illio

n

Agriculture Industry Services

India: Among the Top-15 Countries in terms of GDP at constant prices

The Indian economy has witnessed unprecedented growth…. Booming services and industry sectors are providing the required impetus to economic growth

The sound performance of each industry segment is leading to the overall robust performance of the Indian economy

Indian economy is expected to be 3rd largest in terms of PPP – USD 4.5 trillion by the end of 2007

India’s GDP has witnessed high growth, and was the second fastest growing GDP after China in 2006-07 Fastest GDP growth of 9.4

percent in 2006-07, since last 18 years (at constant prices)

Fastest GDP growth of 9.4 percent in 2006-07, since last 18 years (at constant prices)

Contribution of Services -

increased from 48

percent to 55 percent

Contribution of Services -

increased from 48

percent to 55 percent

India's GDP at Current Prices: 2002-07

469 556 638 737 830

2370

200400600800

1000

20 02-

20 04-

20 06-

US

D B

illio

n

Growth in sectors at Current Prices (2006-07):Industry: 16.2%Services: 16.3%Agriculture: 10.2%

Growth in sectors at Current Prices (2006-07):Industry: 16.2%Services: 16.3%Agriculture: 10.2%

Source: MOSPI Statistics

Estimated growth rate in various GDP sectors for Q1 (2007-08) is: Industry – 15.9 percent, Agriculture – 11.4 percent and Services – 15.7 percent

India: Robust Economic PlatformIndia's Forex Reserves: 2001-07 (Till 28 September 2007)

54 75112 141 152

199248

050

100150200250300

2001

-02

2003

-04

2005

-06

2007

-08

(Til

l 28

US

D B

illio

n

External Debt-to-GDP Ratio

21.1 20.417.8 17.3

15.8 16.4

10

13

16

19

22

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

Ra

tio

India’s strong economic performance has been the major contributor towards increased Forex reserves

Steadily increasing Forex reserves offer adequate security against any possible currency crisis or monetary instability

Falling Dollar inflates the India’s external debt

Falling Dollar inflates the India’s external debt

Increased confidence of investors in Indian companies has led to a surge in cross border borrowing by corporate houses

Forex reserves witnessed an increase of 200 percent for the period 1990-2007

…at present level of Forex reserves, the country has adequate cover for 12 months of imports

…at present level of Forex reserves, the country has adequate cover for 12 months of imports

India’s Forex reserves are in

excess of external debt…

…the decreasing external debt to GDP ratio indicates that India has a sound economic platform

…the decreasing external debt to GDP ratio indicates that India has a sound economic platform

Source: RBI Statistics

India: Surging Exports

India's Imports: 2002-08

61.52 78.28111.89

149.65190.50

72.40

050

100150200250

2002

-03

2004

-05

2006

-07

US

D B

illio

n

India's Exports: 2002-08

52.81 63.95 83.81103.42126.33

46.80

050

100150

2002

-03

2004

-05

2006

-07

US

D B

illio

n

Petroleum products are the major contributors towards India’s growing imports

Petroleum products are the major contributors towards India’s growing imports

Quality and cost advantage are the two important parameters leveraged by the Indian producers to increasingly market products and services

Quality and cost advantage are the two important parameters leveraged by the Indian producers to increasingly market products and services

Services sector has been a major contributor to increased exports from India

Product imports by India mainly include petroleum products and minerals

Indian companies have chalked out extensive plans to increase their presence abroad

Acceptance of Indian products along with the cost advantage has provided an edge to Indian companies

* - 2007-08 provisional data for period of April to July only

* - 2007-08 provisional data for period of April to July only

Source: Ministry of Finance (August Report)

India: Attractive Investment Destination

India is ranked

second in AT

Kearney’s FDI

confidence index

FDI inflow for the

period 2006-07

witnessed a growth

of 180 percent over

the same period last

year

With improved performance on PE ratio and ROE, Indian markets have attracted large investments

FDI Inflow - India: 2001-07

4,2223,1342,6343,7555,546

15,730

4,909

05,000

10,00015,00020,000

2001

-02

2003

-04

2005

-06

2007

-08

US

D M

illio

n

180 percent Increase

Net FII into India: 2001-07

1.80 0.60

10.0010.209.40 6.71

16.60

05

101520

US

D B

illio

n

Source: DIPP (June Report), SEBI

Electronic equipment, manufacturing and telecom have witnessed significant

FDI inflow

Electronic equipment, manufacturing and telecom have witnessed significant

FDI inflow

Large FII activity in India has led to an upsurge in the Sensex

Large FII activity in India has led to an upsurge in the Sensex

India: Vibrant Capital Market

India is among the major destinations across the globe for inflow of US Dollar i.e. FIIs

Sensex has risen 18 times in the period 1990-2007

Sensex – The Bombay Stock Exchange index has risen 18 times from 1990s to reach 18,000 mark in October 2007.

FIIs have infused large investments into the Indian stock market

Encouraging industry

performance

Increased local investors’ confidence

Emergence of industry and confidence of local investors along with the FIIs has led to increased movement of the Sensex

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

12-Oct-97 12-Oct-98 12-Oct-99 12-Oct-00 12-Oct-01 12-Oct-02 12-Oct-03 12-Oct-04 12-Oct-05 12-Oct-06 12-Oct-07

10/9/2007 Crossed 18,000 mark

30 December 1999Crossed 5,000 mark

07 February 2006Crossed 10,000 mark

09 July 2007Crossed 15,000 mark

Major M&A Deals Undertaken Abroad by India Inc.

USD 12.1 billion USD 12.1 billion Tata Steel buys Corus PlcTata Steel buys Corus Plc

USD 6 billion USD 6 billion Hindalco acquired Novelis Inc.Hindalco acquired Novelis Inc.

USD 1.58 billion USD 1.58 billion Essar Steel acquired Algoma Steel Essar Steel acquired Algoma Steel

USD 1.6 billion USD 1.6 billion Suzlon Energy Ltd. acquires REpower Suzlon Energy Ltd. acquires REpower

USD 1.1 billion USD 1.1 billion United Spirits Ltd. acquired Whyte & Mackay

United Spirits Ltd. acquired Whyte & Mackay

Major M&A and Investments Announcements in India

USD 11 billion USD 11 billion Vodafone buys HutchVodafone buys Hutch

USD 0.98 billion USD 0.98 billion Aditya Birla Group increased its stake in Idea Cellular by acquiring 48.14-percent stake

Aditya Birla Group increased its stake in Idea Cellular by acquiring 48.14-percent stake

USD 1 billionUSD 1 billionPlans investment in private equity, real estate, and private wealth management

Plans investment in private equity, real estate, and private wealth management

USD 1.7 billionUSD 1.7 billionPlans to spend on its development operations in India over the next four years

Plans to spend on its development operations in India over the next four years

USD 0.905 billionUSD 0.905 billionRenault, Nissan and Mahindra & Mahindra have initiated a Greenfield automobile plant project in Chennai.

Renault, Nissan and Mahindra & Mahindra have initiated a Greenfield automobile plant project in Chennai.

Mylan Laboratories acquired a majority stake in Matrix Laboratories

Mylan Laboratories acquired a majority stake in Matrix Laboratories

USD 0.74 billionUSD 0.74 billion

India: Pacing Ahead to Emerge as a Major Economy in the World

Projected GDP Growth Rates for Select Upcoming Economies

0

2

4

6

8

2005-10

2010-15

2015-20

2020-25

2025-30

2030-35

2035-40

2040-45

2045-50

GD

P G

row

th R

ate

(%

)

Brazil China India Russia

020406080

100

IndiaRussiaVietnamUkraineChinaChileLatvia

GR

DI S

core

2007 Global Retail Development Index (GRDI) 2007 Global Services Location Index

3.32.63.22.82.93.2

1.51.81.2

1.32.32.3

1.11.51.621.41.4

Financial structurePeople and skill availablityBusiness environment

AT Kearney has placed India as the most preferable destination for Services sector…

… the retail market along with the services sector has been attracting interest of major global players

India is expected to outperform its rivals in the BRIC, in terms of GDP growth rate, from 2015 onwards…

Source: AT Kearney, BRIC Report

… India is the top destination in the AT Kearney Global Retail Development Index (2007)

India: Astounding Demographics

Per Capita Income

393 461 519 583 651

0100200300400500600700

2002-03

2003-04

2004-05

2005-06

2006-07

US

D2

9

48

221

726

9

17

74

285

710

20

33

120

404

613

2001-02 2005-06 2009-10(E)

Rich (Above 115,000)

High Income (57,000 – 115,000)

Consuming class (23,000 – 57,000)

Working class (10,200 – 23,000)

Needy (Below 10,200)

Annual Household Income

(in USD)

* In PPP terms

Pop

ula

tion

(mill

ion

)

Increasing per capita income coupled with an emerging middle class has provided the necessary impetus to consumerism in India

Growth in the higher income categories of India’s population is creating an affluent section with high purchasing power

Increasing per capita income and a growing middle class is driving a high level of consumerism in India

DEMOGRAPHIC TRANSFORMATION OF INDIA

Source: RBI Statistics

Countries worldwide are anticipating a shortage of working population in the future. India is expected to emerge as a clear winner, and by 2050, it will have the largest working age population.

Countries worldwide are anticipating a shortage of working population in the future. India is expected to emerge as a clear winner, and by 2050, it will have the largest working age population.

India: Increasing Working Population

-30

1017

3133

4464

71314

-5 45 95 145 195 245 295 345

Stock Position 2005

South East Asia 362

Southern Asia 132

India 691

Africa 500

China 934

Latin America 359

USA 200

Europe 497

Japan 85

World 4,168

In Million

Addition to Working Age Population by 2010

Growth in Global Working Age Population (15-64)

Source: Its Hendersons

BRIC Report, Goldman

Sachs

BRIC Report, Goldman

Sachs

“I have never seen India so dynamic, vibrant and full of

business opportunities”.

- Dan Scheinman, Cisco System Inc. as

told to Business Week, August 2005

- Dan Scheinman, Cisco System Inc. as

told to Business Week, August 2005

“We came to India for the costs, stayed for the

quality and are now investing for innovation”.

John RedwoodEconomic

Competitiveness Policy Group, UK

John RedwoodEconomic

Competitiveness Policy Group, UK

“India is now truly a land of opportunity”.

Jack WelchGeneral Electric

Jack WelchGeneral Electric

“India is a developed country

as far as intellectual capital is

concerned”.

Peter Loescher

President and Chief

Executive Siemens

Peter Loescher

President and Chief

Executive Siemens

By 2032, India will be among the three

largest economies in the world.

Why India? – Quote Unquote

Travyn Rhall,

ACNielsen

Travyn Rhall,

ACNielsen

“The Indian market has two core advantages - an

increasing presence of multinationals and an upswing

in the IT exports”.

Craig Barrett

Intel Corporation

Craig Barrett

Intel Corporation

“India has evolved into one of the world's leading technology

centers“.

Mr Paul de Voijs Managing Director

Volvo Car India

Mr Paul de Voijs Managing Director

Volvo Car India

“India is a very exciting market and the luxury

car segment is growing exponentially here”.

Patternof Actions

That DefineStrategy

Actions to Strengthen Resources & Capabilities

DiversificationResponses toChanging Conditions

Offensive Moves to Gain Edge

Changes in Product Line,Quality, or Service

GeographicCoverage

Forward orBackward Integration,

Collaboration

How Functional Activities Are

Managed

Defensive Moves

Pursuing New Opportunities

Understanding Company Strategy - What to Look For

POLICY vs STRATEGY

POLICY STUDIES• INTERNAL FOCUS• EMPHASIZES EFFICIENCY OF OPERATIONS

STRATEGIC STUDIES• EXTERNAL FOCUS• EMPHASIZES ADAPTING TO A CHANGING ENVIRONMENT

“SEAT-OF-THE-PANTS” MANAGEMENT = Intuitive Management

We must move away from intuitive approaches as:

THE ORGANIZATION BECOMES LARGER…

THE LAYERS OF MANAGEMENT INCREASE…

THE ENVIRONMENT BECOMES MORE COMPLEX.

GE Case

• Jack Welch became the CEO in 1981• GE revenue in 1981: $29 billion; profit: $2 billion• Welch wanted to re-engineer GE??

– Bought and sold business units: change business portfolio

• Question: which to sell and what to buy?• Guiding principle to keep or buy

– The No.1 – or – No. 2 test– Well above average real returns on investments– A distinct competitive advantage– Leverage from GE’s particular strength

• Issue: how to apply test?

SERVICEGECS

GE InformationConstruction

Nuclear Services

TECHNOLOGYIndustrial Electronics

Medical SystemsMaterial

Aircraft EngineAerospace

CORELighting

Major AllianceConstruction equipment

TransportationTurbineMotor

Keep

LaddSemiconductorTradingUtah InternationalCalma

House waresCentral Air ConditioningTV&AudioCableMobilePower DeliveryRadio Stations

Sell/Fix Sell/Fix

Welch’s vision on what to keep and what to sell/fix around 1983

GE Finance Appliances Lighting Motors Transportation

Steady stream of income & professional expertise to support leasing and other financing activities

AerospaceAircraftengine

Plastics Medical EDC

Investment in one directionIndustry knowledge in another direction

Thrust (key driver)

Fuel (supporting driver)

Superfluous drivers: distributors, agents, suppliers, etc.

GE’s Money making machine (Welch, 1985)

Fast growing businesses

Steady slow grow business

CopierSDS

PARC

Xerox Diversified Structure

Medicine Education

Business 1 Business 2 Business 3 Business 4

Strategic Assets Pool•Centrally managed•Applied to new business

Consolidateassets

Leverageassets

Diversity of the business depends on the diversity of assets pool cumulated

Newinput

Newinput

Newinput

Newinput

Audiorecorder

TransistorRadio TV

Pullman/Walkman

•Audio tape•Recording/play head•Tape winding•Market communication

Leverageassets

Magneticmotor

Transistor TV tube Newinput

•Miniaturization•Transistor science•High fidelity•Pricing strategy•American market

•Bright picture tube•Monitor•Remote control•Picture quality•Latecomer strategy

•Miniature earphone•Audio cassette•Create excitment

Strategic assets pool: supporting driver

New electronic-related technologies: key driver

Sony’s Model in Managing Strategic Assets

Motor cycleengine

Motor cycleMotor cycleIn US

Car

•Powerful engine•Reliable engine

Leverageassets

Pistonknowledge

MarketingFinance knowledge

Desire to gointernational

Desire to enterCar market

•Build distribution channel•Use racing to improve engine•Mass production

•Latecomer strategy•Open foreign market•Train foreign labor force

•Reliable car enginer•Clean car enginer•Gas economy car•Small but roomy car•Penetrate all car segments

Strategic assets pool: supporting driver

New knowledge & Desire: key driver

Strategic Assets

Honda’s Model in Managing Strategic Assets

Sony and Honda

• Organizing paradigm for Sony and Honda– Strategic assets as the central core for supporting driver– New businesses are driven by technology, knowledge, & desire– Generic knowledge acquired through businesses are maintained

and manage by the central “Strategic Assets Pool”

• Find or create the context under which some of its assets in the pool can provide unique advantage

• The portfolio of businesses provide a strong holder for the vision of the company

Managing Strategic Assets Portfolio• Manage Vision

– A simple shared vision that guides the businesses moving together as a unit, yet give each the flexibility to excel in its business

• Manage business portfolio– Knowledge and desire guide new business direction, interpret the business

model in a context that can leverage its strategic assets

• Manage authority– Minimal hierarchy, authority comes from responsibility rather than formal

position, get assess to strategic assets to fulfill responsibility

• Manage people– Lead instead of manage, get commitment, facilitate transfer to match people’s

career goal and to enrich knowledge

• Manage Strategic assets– Extract generic knowledge acquired in business and consolidate into the

corporate strategic assets pool

• Manage Culture– Small to its customers, big to its competitors

Grabber vision 1

Strategic assets

Grabber vision 2

AdditionalStrategic assets

Grabber vision 3

AdditionalStrategic assets

McDonald’s Perpetual Growth

McDonald’s had no closeCompetitor since 1965until late 90’s

Be your own boss

Real estate subsidiaryMcDonald’s UniversityArrange loanArrange suppliers

American eating out

Convert to restaurantAdvertisementMcDonald’s figuresPlay ground

American living style

Arrange local supplierPartnership with foreignersModify menu for local taste

Grabber vision 1

Strategic assets

Grabber vision 2

AdditionalStrategic assets

Grabber vision 3

AdditionalStrategic assets

Machine for accounting needs

•Punch-card machine•System knowledge•Strong sales force•Relationship with big companies and government

Multi-purpose computer

•Electronics•Magnetic•Build complex computer•Create grabber excitement

Computer for everyone

•Learn about PC business in a painful way•Struggling to survive

IBM Growth

Strategic Approaches to Preparing for Future Market Conditions

Keep from being swamped by the waves of change

Revising strategy (hopefully in time) to catch the waves

of change

Aggressively altering strategy to

make waves and drive change

Anticipating change and

initiating strategic actions to ride the

crest of change

Rapid Revolutionary Change

Gradual Evolutionary Change

Reactive/Follower Proactive/Leader

IS Transforms Business Practices

Improving organizational performance - IS in action

CEO AuditOrganization/IT Design Challenge

Complex

Organization

Simple

StableCertain

DynamicUncertainEnvironment

“Centralized Intelligence” Mainframe(Control)

“Networked Intelligence”(Collaboration)

“Decentralized Intelligence”Microcomputer

(Autonomy)

How many of you agree with this statement ?

We belong to the 21st century

Do you want to change your mind ?

•21ST CENTURYBELONGS TO US

Transition from dream to reality

No risk No risk Risk

wish

convictionintension

dream reality

Technology change

• What required 1500 sheets of paper to document: it takes:

• 500 floppy discs– 200 hard disc– 100 CDs.– 50 magneto optical disc.

•LEARN:• L= LISTENING• E= EAGERNESS• A= ASSIMILATE• R = RETAIN• N = NAVIGATE – BASED ON ONE’S UNIQUENESS.

• Yatha chaturbhihi kankam parikshyathe• Nigharshana chedana taapa thadana• Thatha chaturbhihi purusham parikshyathe• Thyagena sheelena gunena karmana.

• As gold is tested by rubbing, cutting, heating and beating, human beings are tested by sacrificial nature, character, quality and actions.

It is not easy• To apologies,• To be unselfish• To take advice• To admit error• To be concerned and considerate• To forgive and forget• To endure success of others• To subdue temper• To make best of little• To recognise the silver lining……………• BUT IT PAYS.

Luck • I am great believer in luck, and I

find the harder and smarter I work, with integrity and commitment, the more I have of it.

• Belief in luck is the birth right of the weak and the vulnerable.

• I have been lucky on those occasions when I have willingly taken maximum risk in accomplishing a task.

Ponder over.• Life is like a bicycle. You don’t fall

off unless you stop pedaling.• There is a great man who makes

every man feel small. But the really great man is the man who makes every man feel great.

• If we do what we did we get less than what we got, and if we do better than what we did, there are chances that we may get what we got.

Student position model

Hyped

Overconfidence

Risk in wrong areas

Real-time managers

Hi risk taking ability

Fear of failure

Risk averse

Complacent

Lo risk taking ability

Deservability

DESIRABILITY

HI

LO HI

IT’S GREAT TO BE POSITIVE

• If you cannot smile, do not frown

• If you cannot like do not dislike

• If you cannot honour, do not dis-honour

• If you cannot love, do not hate.

• If your want to be only with few, do not distance others.

• If you want to be ‘YOU’ do not ignore ‘YOU’ in others.

• If you cannot understand, do not misunderstand.

Positive Thinking

• Count your garden by the flowers, never by the leaves that fell.

• Count your days by golden/shining hours, don’t remember clouds at all.

• Count your nights by stars, not shadows.• Count your lives by smiles and not by

tears.• Count your age by friends and not by

foes.

Aspire Big but start with Small

• One sunbeam lights a room.• One candle can wipe out darkness• One laugh can conquer gloom• One step must start each journey.• One word starts a prayer.• One hope will raise our spirits.• One pat can show you care.• One voice can speak with wisdom• One heart can know what’s trust.• One life can make the difference• You could ……………….it’s upto you.

Three in one

Change agent.

Manager

sustainercreator

WHAT CLICKS ?

• FOCUS.• F = FUNDAMENTAL VISION/GOAL

• O = OWNERSHIP

• C = CONFIDENCE – CONSTANCY OF

PURPOSE

• U = UPGRADATION

• S = SUSTAIN AND IMPROVE

CONFFIDENCE

• A state of mind in which knowledge is fully converted into profitable action with least resistance from environment.

• An energy source.

• a personal character trait.

• Can win half the race – other half by integrity and concerted effort.

• Definitely not a loud expression of arrogance.

confidence• C = COMPETENCE• O = ORDERLINESS• N = NO FAILURE APPROACH• F = FURURISTIC APPROACH• I = INTEGRATED TO ETHICS & VALUES, • D = DEMONSTRATE IN ACTION• E = EFFICACY• N = NO ULTERIOR MOTIVE IN COMMUNICATION• C = COMMITMENT TO CONSTANCY OF PURPOSE• E = ENDURING POWER.

Making A Difference

One day a man was walking along the seashore. He noticed that during the night many seashells and starfish had washed upon the shore. Enjoying the morning sun and cool sea air, the man strolled for miles along the sand.

Far off in the distance, he saw a small figure dancing. The man was joyous that someone was celebrating life in such a grand and uninhibited manner. As he drew closer, however, it became apparent that perhaps the figure was not dancing, but perhaps repeatedly performing some ritual.

Approaching the small figure, the man noticed that it was a child. The girl was methodically picking up starfish from the shore and tossing them back into the surf. The man paused for a moment, puzzled, then asked, “Why are you throwing those starfish?”

“If I leave these starfish on the beach,” shereplied, “The sun will dry them, and they will die. So I’m throwing them back into the ocean because I want them to live.”

The man was quiet for a moment, impressed withthe child’s thoughtfulness. Then he motioned upand down the miles and miles of beach and said,“There must be millions of starfish along here! How can you possibly expect to make a difference?”

The young girl pondered the man’s words fora moment, then she slowly leaned over, reacheddown, and carefully picked up another starfishfrom the sand. Pulling back, she arched the starfish gently into the surf.

She turned to the man and smiled. “You may be right,” she said, “But I made a difference for that one.”

You can make a difference in our class this year.

Speech Production Mechanism

BackNext >< Prev

24 personal strengths

1. Stamina

2. Valour

3. Attraction

4. Motivation

5. Direction

6. Toughness

7. Logical reasoning

8. action

9. Enthusiasm

10. Memory

11. Decisive - definiteness

12. Strong intention

13. Love and concern

14. Dislike

15. Clarity of thoughts

16. Organising ability

24 personal strengths

17.Ability to distinguish

18.Team person

19.Listening

20.Feel, taste and touch

21.Sight & vision.

22.Reading

23.Common sense

24.originality

EMOTIONAL INTELLIGENCE

WHAT IS IT AND WHY DO I NEED IT?

OSRG

Emotional intelligence – few questions

– Are we all educated?– Are we getting educated?– Has education an end?– If no, is education a continuous process?– Does Education gives knowledge ?– We get information or knowledge in the class

room ?– We get education in the class rooms only ?– Do we get educated from which ever source we get

information or knowledge?– Do we get data or info or knowledge from books,

news papers, TV magazines, and other sources ?

LOOK AT THE FOLLOWING FIGURES

YOU SEE THEM QUITE OFTEN??

Accusing fingers- emotional ignorance

fear of failure- emotional ignorance

apprehension - emotional ignorance

blowing one’s own … emotional ignorance

frustration - emotional ignorance

crying babies.- emotional ignorance

Emotional intelligence – udaara charithanaanthu vasudaiva

kutumbakam.

SHOULD WE PUT OUR HEARTS IN OUR BRAINS OR

SHOULD WE PUT OUR BRAINS IN OUR HEARTS?

EMOTIONALL INTELLIGENCE IS THE SKILL

OF SYNERGISING EMOTIONS-MIX

WITH INPUTS FROM LOGIC, LEARNING, EXPERIENCE,

EXPOSURE AND UNLEARNING

EMOTIONAL INTELLIGENCE IS THE SCIENCE OF CONVERTING

NEGATIVE ENERGY INTO POSITIVE ENERGY AND

OPTIMISING EMOTIONS - MIX

Risks – few of them; examine.

• WE HIDE EMOTIONS.– To laugh is to risk appearing fool.– To weep is to risk appearing sentimental– To reach out for another is to risk involvement.– To expose feelings is to risk exposing true self.– To live to risk dying.– To hope is to risk despair– To try is to risk failure

Risks – few of them; examine.

• RISK NOTHING IN LIFE IS A GREAT HAZARD.

• IF ONE RISKS NOTHING IN LIFE, DOES NOTHING, HAS NOTHING AND IS NOTHING.

• RISK ENSURES FREEDOM.

• RISK ENABLES YOU TO CONFIDENTALLY ANSWER THE ETERNAL QUESTION -------- WHAT NEXT???

Basic Emotions--presumed to be hard wired and physiologically distinctive

• Joy

• Surprise

• Sadness

• Anger

• Disgust

• Fear

3 S – EMOTIONAL IGNORANCE

• Suspicion

• Sentiment

• Super ego

Life Positions

I’m OK -You’re not OK

I’m not OK -You’re not OK

I’m OK - You’re OK

I’m not OK - You’re OK

Positive

Negative

AttitudetowardOneself

Attitude toward Others

Negative Positive

Total Learning Experience

EMOTIONAL INTELLIGENCE

KNOWLDEGE

INFORMATION

SKILL

COMPETENCE

SUCCESSFUL CAREER

• Without clarity, heaven would crack.Without stability, the earth would quake.Without divinity, spirits would dissipate.Without fertility, the valleys would be barren.Without life and growth, creatures would die off.Without leadership, kings and nobles would fall.

Therefore those who desire most spend most.Those who hoard most lose most.Those who are contented are not disappointed.Those who know when to stop prevent danger.Thus they can long endure.

Positive Thinking

• Count your garden by the flowers, never by the leaves that fell.

• Count your days by golden/shining hours, don’t remember clouds at all.

• Count your nights by stars, not shadows.

• Count your lives by smiles and not by tears.

• Count your age by friends and not by foes.

IT’S GREAT TO BE POSITIVE

• If you cannot smile, do not frown

• If you cannot like do not dislike

• If you cannot honour, do not dis-honour

• If you cannot love, do not hate.

• If your want to be only with few, do not distance others.

• If you want to be ‘YOU’ do not ignore ‘YOU’ in others.

• If you cannot understand, do not misunderstand.

Emotional assurance

CONCERN FOR CONCERN

We need to fit into group

Individually Diverse Emotionally Integrated

No one is an island

Udaara Charitaanaanthu Vasudaiva Kutumbakam.

YOU TAKE THE LEAD ……..

Emotional agreement

TEN THINGS GOD WON'T ASK ON THAT DAY.

1...God won't ask what kind of car you drove. He'll ask how many people you drove who didn't have transportation.

2..God won't ask the square footage of your house,

He'll ask how many people you welcomed into your home.

3...God won't ask about the clothes you had in your closet, He'll ask how many you helped to clothe

4...God won't ask what your highest salary was.

He'll ask if you compromised your character to obtain it.

5...God won't ask what your job title was He'll ask if you performed your job to the best of your ability.

6.! .God won't ask how many friends you had.

He'll ask how many people to whom you were a friend.

7..God won't ask in what neighborhood you lived, He'll ask how you treated your neighbors.

8...God won't ask about the color of your skin,

He'll ask about the content of your character.

9...God won't ask why it took you so long to seek Salvation. He'll lovingly take you to your mansion in heaven, and not to the gates of Hell.

10...God won't have to ask how many people you forwarded this to,

He already knows whether or not you are ashamed to share this information with your friends

Knowledge and common sense

• Hi

knowledge

• Lo hi

• COMMON SENSE

Book smart Global smart

Gate keeper street smart

Knowledge and common sense

• Hi

knowledge

• Lo hi

• COMMON SENSE

interdependent Dependable.

dependent independent

Knowledge and common sense

• Hi

knowledge

• Lo hi

• COMMON SENSE

Problem identifier Problem preventer

Problem creator problem solver

PROFESSIONALISM

skills

behavior

Never overstep

• Velocity not speed matter.• Overconfidence ??• Fit the shoe to leg ??

Values and Employability• Employability is making a career and not just getting

a job. One could get a job, with formal education, but making a career need values systems and character.

• Values are the emotional rules that govern people’s attitudes and behaviors.

• Values establish boundaries that influence how an organization fulfills its mission.

• Values are deep-rooted beliefs we have about the world and how it operates.

• Values determine quality.• Values provide a strong framework for making choices and

decisions • Values are non-negotiable, the principles we stand for.

Value system also helps us to establish:

• - Synergy of core competence – SANKHYA YOGA

• - Synergy of processes and actions, - KARMA YOGA

• - Synergy of knowledge – GNYAANA YOGA.• - Synergy of expertise and innovation –

VIGNYANA YOGA.

• Competition has been transformed into co-optition, that is cooperative competition, one of interdependence.

• Future the concept of co-optition will be co-creation.

• Factors of success in the millennium will be value based professionalism acquired through:

• •         Constancy of purpose.• •         Professional integrity and commitment.• •         Focus and continual improvement.• •         Continual self improvement • •         Servant leadership

Top five items on the recruiters' lists: Most Attractive MBA Skills

1)    Ability to think analytically

2)     Ability to think strategically

3)     Quantitative skills

4)     Leadership skills

5)     Oral communication skills

Skills That Should Be Improveda.   People management skills

b.     Leadership skills

c.     Ability to make decisions with imperfect information

d.     Interpersonal skills

e.     Written communication skills

What Corporate Recruiters Look for in MBA Hires ?

1) Cultural fit with the company

2)  Proven ability to perform

3)  Strong "soft" skills, including communication and interpersonal skills

4) Strong "hard" skills, including quantitative knowledge and

5) Technical skills acquired in the mba program

6) Specific background (e.g. Engineering, science, liberal arts)

7) MBA functional area/concentration of study - evidence of adaptability

Top three barriers they cite have to do with the inaccurate assumptions of MBAs:

a. Unrealistic salary expectations

b.     Unrealistic job expectations

c.      Unrealistic view of advancement opportunities

STUDENT AS A BRAND:not as a product.

            

BRAND PRISM

1 Physique FORCE VITALITY,DRIVE, 24X7 2 MESSAGE POWER -

COMMUNICATION, INSPIRTION

3 IMPACT POWER- INNOVATE, CONCEPTUAL, MODEL, MENTOR,

4 NETWORKING POWER- SOCIAL SKILLS, EI, CO-OPTITION.

5.FUTURISTIC POWER – VISIONERY,

INTELLECTUAL FUTURES

6. ETHICS &

VALUES

YOU ARE IMPORTANT TO YOU BUT OTHERS ARE EQUALLY IMPORTANT.

• You want to be a flower?• You want to be a diamond?

•Decide today………. Kal Ho Na Ho!!!

THANK YOU NAMASTHE.