Strategic management

The set of managerial decisions and actions

that determines the long-run
performance of an organization.
 Strategic Management
 Analysis
– Strategic goals (vision, mission, strategic objectives)
– Internal and external environment of the firm

 Strategic decisions
– What industries should to compete in
– How should to compete in those industries

 Actions
– Allocate necessary resources
– Design the organization to bring intended strategies to
reality
Why is Strategic Management Important

 It results in higher organizational performance.

 It requires that managers examine and adapt to

the changing situations.

 It coordinates diverse organizational units ,helping

them focus on organizational goals.

 It is very much involved in many of the managerial

decisions.
 Strategic Management Process
• Strategic management process is a planning process
in which managers :

 Set the organization’s general directions & objectives.

 Formulate a specific strategy.

 Plan and carry out strategy’s implementation.

 Monitor results and make necessary adjustments.

Strategic Management Process
Mission &
Objectives

Environmental

Scanning
Strategy

Formulation
Strategy
Implementation

Evaluation
& Control
 Group Structure

Global
Holding
Corporation
[GHC]

GTL
Infrastructure
Global Global Global
GTL Towers Projects InnovSource
Largest third
India’s Largest party tower Tower Recruitment
Network Services Procurement
Company in manufacturing for & Staffing
Player Telecom and and Project
India Services
Transmission Sector services
 GTL at a Glance
Business Network Services

Global Headquarters Mumbai, India

Founded 1987

Global Presence 44 countries spread across Africa, Asia- Pacific,

Middle East, North America, South Asia and Western
Europe.

Domain Expertise Telecom

Associates 5,947 (As of Mar. 31, 2009)

Stock Listed on BSE, NSE

 GTL’s Value Chain
Network
Planning &
Design
Network
Professional
Deployment
Services

Network
Services
Network Energy
O&M Management

Infrastructure
Management
 GTL Financial & Track Record

450
403
400
347
350
300
226
Total Income 250
US$ Mn 200
150
100
50
0
2006-07 2007-08 2008-09 4th Qtr
Financial Year
 GTL an Overview
2008 2009
35 Countries 44

5,045 Employees 5,947

45 Cellular 70
Networks
36,000 Cell Sites 51,000
 Mission Statement
“India’s Largest Network Service Provider To The
World” to becoming
“World’s Largest Network Service Provider”

By the way of :-

 Growing along with partners.

 Globalization
 Inorganic growth
 Delivery capabilities
 Preferred partner with all the OEMs & Telecom
operators
 Policy Structure
 Improving operational efficiency by re-engineering the
business process.

 Rationalizing manpower requirements by identifying &

eliminating duplication of work.

 Increasing the use of IT systems & video conference for

cost reduction for overseas clients.

 Introduction of variable pay components depending

upon macro-economic conditions.
 Key Objective Areas
 Market standing

 Innovation

 Resource levels

 Profitability

 Social responsibility
 Key Strategies
 Consolidation of Networks

 New Technology Deployments

 Formation of Tower Company

 Outsourcing of Network Services to OEMs

 Multi-location Partnerships

 Consolidation of Towers in Matured Markets like US & Europe

 Strategic Choice
 International strategy
− Create value by transferring skills
and products abroad.

 Multi domestic strategy

− Maximize local responsiveness by
customizing products and marketing
strategy for local markets.

 Global strategy
– Pursue low-cost Margins, offer standardized global products.
Enterprise Risk Management
Information &
Communication Monitoring

Control Internal
Activities Environment

Risk Objective
Response Setting

Risk Event
Assessment
Identification
 Business-Level Strategies at GTL
 Cost leadership
– Attaining, then using the lowest total cost basis as a
competitive advantage.

 Differentiation
– Using product features or services to distinguish the
firm’s offerings from its competitors.

 Market focus
– Concentrating competitively on
a specific market segment
Functional-Level Strategies at GTL

Focus is on improving the effectiveness of

operations within a company.

 Marketing

 Materials management

 Quality

 Human resources
 Corporate-Level Strategies at GTL
 Vertical Integration

 Diversification

 Strategic Alliances

 Acquisitions

 New Ventures

 Business Portfolio
Restructuring
 Strategic Effectiveness

Review & Adjust Formulate

Implement
 Strategic Position
 The Organization’s Environment

– Political Economic Social Technological Environmental Legal

– Sources of Competition

– Opportunities and Threats

 Strategic Capability of the Organization

– Resources and Competences

– Strengths and Weaknesses

 Strategic integration
Integration along
Customer-Supplier chain

Organic Growth
Strategy Improvements in
Current Operations

Controlling Industry Paradigm Keeping

Track-record
 Successful Policy Implementation

 Revenue increased by 9.80% to Rs.1,954 Cr.

 Operating profit increased by 11.48% to Rs.296.64 Cr.

 Profit after taxes decreased by 5.56% to Rs.145.56 Cr.

Total Spend on Telecom-USD 57
Billion by 2012
Managed
Operations – 24%
Network Planning
and Design - 4%
Optimization - 7%

Business Planning
Network -7%
Integration - 9%

Installation - 27% Maintenance – 22%

 Key Challenges

 Increasing Recurring Revenue & Improving

Profitability.

 Changing Geographic Mix

 Creating Global & Professional Organization.

 Conclusion
Any business has to be conducted not only in a
profitable manner, but also with all operational,
ethical, legal, financial, & other risks being
accounted for. In long run this could well be the
difference between the business that survive &
excel & those that fizzle out despite providing
quality service.