Strategic Planning and Implementation

Session 1-3: Getting Started

Feb 2011
On the agenda today…

2. Thinking about strategy

3. Vision and mission

Source: Indo American Chamber of Commerce

Your course facilitator
• Academic and professional summary…
PGDM from IIM Lucknow and Hotel Management from IHM Lucknow. A practicing
business researcher and consultant with diverse industry experience of a decade.
Currently working with Religare as VP, Research and Analytics, and was earlier
Director, Research and Head of Operations at RocSearch India. Prior corporate stints
include brand management and sales with Eli Lilly, project management and NPPD
with Ranbaxy, and restaurant operations with Wimpy’s

• My enduring passions…
teaching, training, cooking, and travelling
• Potential avenues of association…
vocational electives, skill development modules, and faculty for Marketing, Strategy and
OB/HR
• An indicative menu of self-designed electives and training modules…
 Global Outsourcing: A Strategic Imperative (designed and conducted a full credit
course for PGP 2 students in JP Business School, Noida)
 Consulting Management (designed and conducted a full credit course for PGP 2
students in JP Business School, Noida)
 Learning with Cases (A three-day induction module for PGP 1 students, conducted
in ICFAI Gurgaon and MDI)
 Past association as visiting faculty with b-schools in Delhi & NCR
 Corporate training assignments and offsites in team building and communication

Source: Indo American Chamber of Commerce

Course Outline
Session Lecture Topic (Schedule) Related Article (A), Case, Chapter
1-2 Introduction to Strategic Management Operational effectiveness (A), Comcast Case, C-1
3-4 Understanding related concepts- Theory of business (A), Building vision (A), Yahoo’s mission
vision, mission, goals, objectives and core values, Archies case, C-2
5-6 External Environment Analysis Cheaper steel may be radioactive case, C-3
7-8 Internal Environment Analysis Core Competence (A), Competitive Forces (A), Subhiksha
case, C-4
9-12 Analyzing a company’s corporate Corporate strategy (A), Tata’s going global case, C-4
decisions
13-14 The five generic competitive Wal Mart case, Harley Davidson case, C-5
strategies
15-16 Understanding and evaluating Diversification and logic of strategic alliances (A), Hero
strategic choices Honda case, ITC case, C-6
17-18 Strategic issues in entrepreneurial Strategic and entrepreneurial orientation (A), Balaji Film
and small businesses case, C-8
19-20 Competing in foreign markets Starbuck’s case, C-8 International Business by Hill and Jain,
C-7 in core text book
21-22 Understanding implementation issues Implementing strategy (A), Silent killers of strategy
implementation (A), C-11
23-24 Understanding strategy monitoring Balanced Scorecard (A), Whirlpool case
process
25-27 Team project presentations
 Pedagogy

Concept Building

Lecture Sessions
Using a mix of presentations, experience
sharing, and theoretical inputs from course
textbook and management literature

Reading Material
Approach 1: Selective articles on the consulting management
Concept Building process and the management consulting practice

Case Discussion
Understanding the real-life decision-making
environment and learning vicariously

Source: Indo American Chamber of Commerce

 Pedagogy

Concept Application

Lectures and Practice Workshops

group activities in the classroom to develop
‘Big Picture’ thinking and analytical skills

Live Assignment
Approach 2:
These term projects will revolve around a
Concept
real-world business problem
Application

Role plays and Simulation

Blending in case discussions in the class with
‘step-into-the-shoes-of-decision-maker’
exercise

Source: Indo American Chamber of Commerce

4 ground rules.

 Thou shalt read the assigned case and

course material before every session
 Thou shalt be punctual in attending classes
and submitting assignments
 Thou shalt not indulge in cross-talks or
frivolous discussions in the class
 Thou shalt switch off the phone or put it on
silent mode during the class
On the agenda today…

3. Vision and mission

Source: Indo American Chamber of Commerce

The origin of strategy is in ‘The Art of War’
Sun Tzu’s
treatise is Some Messages
2600 years
old! War is a very grave matter for the state and must not be
commenced without due consideration

Teaches military commanders the importance of

recognizing strategic opportunities and not to create
opportunities for the enemy

An army’s opportunities come from the openings in the

environment caused by the relative weakness of the
enemy in a specific area

Teaches military commanders the importance of

recognizing strategic opportunities and not to create
opportunities for the enemy
What is Strategy… some starting thoughts
“The determination of the long-run goals and objectives of an enterprise, and
the adoption of courses of action and the allocation of resources necessary
for carrying out these goals.” Alfred D. Chandler,
Strategy and Structure: Chapters in the History of an Industrial Empire

“What strategy is all about is competitive advantage… the sole purpose of

strategic planning is to enable a company to gain a sustainable edge over its
competitors.” Kenichi Ohmae,The Mind of the Strategist

“Strategy is a plan, a ‘How’ of getting from here to there.” Henry

Mintzberg,The Rise and fall of strategic planning.

“Strategy is about being different by deliberately choosing a different set of

activities to deliver a unique mix of value.” Michael Porter, Competitive
Strategy, Harvard Business Press.
3 characteristics of strategic decisions

1. They are of short- and long-term significance

– Can Hindalco be a global player overnight?

2. Involve a substantial resource commitment

– Sanofi-Aventis acquiring Genzyme for US$ 20 billion

3. Not at all or not easily reversible

– Can Apple become Microsoft ?
The “fallacies” of strategic planning
The Fallacy of Prediction
The external environment, particularly competitor’s behaviour, can not
be predicted with any degree of accuracy.
The Fallacy of Detachment
Strategy formulation can not be detached from the broader process of
managing and is not about a rigid design process whose outcome is a
strategy document. Strategy is continuously evolving; it must
combine both deliberate formulation and elements that emerge
through the process of management.
The Fallacy of Formalization
Formal procedures for strategy formulation have advantages of
systematization, but lack the flexibility inherent in informal systems
required to cope with discontinuity and promote organizational
Source: learning.
The Rise and Fall of Strategic Planning, Henry Mintzberg
The strategy-making process: what works better?

RATIONALIST SCHOOL EMERGENT SCHOOL

 Strategy formulation is the preserve  Strategy formulation is a

of top management and is a top-
down process
 There is a divide between
formulation and implementation,
with organizational response
delivered in a programmed manner
 Includes rational control, systematic
analysis of competitors, markets,
company strengths and weaknesses,
the combination of these producing
clear, full-blown strategies
How did the Japanese conquer the world? Business is business or chess???
participative activity, as it...
 ... emerges through organizational
learning, and complex interactions
between an organization and its
environment
 Strategy is “crafted” i.e. more than
thinking and reason, experience and
involvement are of significance
 Formulation and implementation
merge into a fluid process of
learning through which creative
strategies emerge
Evolution of strategic management
Dominant theme Main Focus Principal concepts and techniques

Budgetary planning Financial control Financial budgeting

1950s
and control through operating Investment planning
budgets Project appraisal

Corporate planning Planning growth Market forecasting

1960s
Diversification and analysis
of synergy

Corporate strategy Portfolio planning SBU as unit of analysis

1970s
Portfolio planning matrices
Analysis of experience curves

1980s Analysis of industry Choice of industries, Analysis of industry structure

and competition markets, and Competitor analysis
positioning
PIMS analysis

Resource analysis
1990s and Quest for competitive Sources of competitive
advantage advantage and core Dynamic analysis: speed,
beyond
competence first-mover advantage
On the agenda today…

Source: Indo American Chamber of Commerce

Organizational Mission and Vision

Google’s mission is to organize the world’s information and to make it universally

accessible and useful

Our mission is to be the most essential global internet service for consumers and
businesses [till 2007]
To connect people to their passions, communities and the world’s knowledge [2007-
2009]. To ensure this, Yahoo offers a deep array of products and services to create
unique and differentiated user experiences and consumer insights by leveraging
connections, data, and user participation
Appearance of the term ‘vision’ for the first time: Yahoo’s vision is to be the centre of
people’s online lives by delivering personally relevant, meaningful internet experiences
[Sep, 2009]

At Microsoft, our mission and values are to help people and businesses throughout
the world realize their full potential