7/25/2012

IMI DELHI

SOS : SENSE OF SESSION 5&6

GROUP 1 Kartik Agrawal Mahima Goyal Ritika Gupta Shruti Bahety Sunny Agrawal Vinod Gandhi

11PGDMHR 26 11PGDMHR 27 11PGDMHR 41 11PGDMHR 48 11PGDMHR 54 11PGDMHR 59

Strategy Management | GROUP SPARTAN

IMI Delhi \ PGDMHR \ Strategy Management \ Group SPARTAN

KEY LEARNING IN BRIEF

The corresponding chapter 2 on industry and competitive environment made us clear about strategy relevance. The session was utilized in learning the concepts with examples. 1. Regardless of the industry, the external environment is crucial to a firms survival and success. Focus here is how firms analyse and understand the external environment. 2. We understood 3 components of External Environment Analysis, namely The Gen. Environment, Industry Environment and Competitor Environment. 3. Idea is to look at the change. To understand this, we saw the gen. environment analysis corresponding to 7 dimensions, one of them being demographics.

India as a nation has changed a lot even in this single dimension (Demographics) itself from 1985 to 1990 to 2005 to now. It is evident from the change in value system, beliefs, dressing norms, acceptable/ non-acceptable things etc. 4. e as prefix has changed life of business. Technology as other dimension of those 7 dimensions has done it. BPM, a bank in Italy, started web-bank and changed the business games.

5. External Environmental Analysis is a continuous process which means cyclic process of Scanning, Monitoring, Forecasting and Assessing the environment to keep track of the trend and for looking to the future by indentifying opportunities & threats. 6. Very importantly, we learnt while doing the Industry Analysis, the Porters 5 forces are to be applied on the concern industry and not on a firm. 7. Industry can be smartly defined as a group of firms producing products that are close substitutes. Catch here is relativism and linked substitutes like we understood in example of Automobile Industry.

IMI Delhi \ PGDMHR \ Strategy Management \ Group SPARTAN 8. As time passes, an organization needs to regular asses these 5 forces keeping Industry analysis feeding to the firms strategy.

9. We also understood, seeing SUV cars and other examples, restricting the product supply in the market can be a unique proposition for many businesses provided they track the demand in the market and corresponding price of product cautiously. 10. We conceptualized what are the strategic groups and The closer the strategic groups, in terms of strategy, the greater the likelihood of rivalry. 11. We learnt components of competitors analysis and ethical way of conducting it.

12. Pepsi Cola case was a perfect illustration of understanding these concepts, whether it was their secret strategy or issue of addiction in U.S to long-term contract with suppliers. Coke with nutra sweet contract was impacted by political/legal component.

13. Changing in consumer way or say in technology is now a frequent phenomenon. A firm has to either has to die or to innovate.

We saw example of PC business. How apple started this game of business and still sitting in a corner of market share because of missing on a strategic decision.

14. Whole dynamics of business have changed. It is what a converging time is. Everyone is looking for share of their pie in business basket. It depends on examine the internal organization activities, resources and capabilities of any firm and diversifying / focusing on the core competencies.

< Idea is to look at the change.. We are looking at the way things are changing now >