PRESENTED BY:

GROUP - 3
RAMKISHAN KINKER RAJEEV BAHL RAKESH KUMAR RAMBHAROS MEENA VARUN KAPOOR GIRINDER MOHAN PANKAJ KUMAR YOGESH KUMAR BANSAL

Queries are welcome at any moment

Environmental scanning Environmental forces Social Economic Technological Competitive Regulatory

Strategic Planning
Purposes Objectives and challenges

Business-Unit Strategies-core competencies Issues in creating a strategy Choosing your battles carefully

SCANNING

ANALYSIS

ACTION

 Social Economic Technological Competitive Regulatory

 Demographics

Cultural changes
Roles of women Values x E.g., fitness

more
Older citizens Unmarried singles Immigrants Ethnic diversity
Family

changes

Blended families Non-traditional

households

Longer work hours for some; yet also more people working part time Changing cultural standards (e.g., were Beatle members haircuts that offensive?)

 Consumer

Income

Nominal vs. inflation

adjusted Impact of inflation Disposable vs. pre-tax income Discretionary income Regional influences Economic cycles
Teach a parrot to say supply and demand and you have a learned economist! Paul Samuelson.

State of Cycle Good Aspects Bad Aspects Prosperity Soft Landing Recession Depression Recovery
Affluence; high employment Dangers of inflation reduced Lower interest rates; low levels of inflation May be able to get bargains Economic growth; job growth Danger of inflation; high interest rates Layoffs Low growth (vicious cycle); job loss Vicious cycle; severe job loss Rising interest rates; inflation

Changes in technology may make business obsolete; e.g.,

buggy whips (automobile) airport at Gander, Newfoundland

(longer range aircraft) Federal Express (fax machine; Internet)

New opportunitiese.g., specialty online retailers, mass customization

Levels
Discretionary income Product competition Brand competition

Market structures
Monopoly (e.g., electric power) Oligopoly (e.g., cars, OPEC) Monopolistic competition (e.g.,

supermarkets) Pure competition (commodities; e.g.,

Competition
benefits the consumer is increasingly global

 Lobbying

by

business groups

(e.g., honey lobby) consumer/political groups (e.g., labor unions; senior lobby) foreign interests

Laws and Regulations

for safety for consumer protection to protect special interests

Dangers of litigation--anyone can

sue, and juries often buy it!

Examples:
Antitrust x Fair competition x Pricing Truth in Lending--have to tell

people real costs of financing; car leases now regulated

Provisions
Must compete fairly; no x collusion x predation Must not abuse market power; no x excessive market share x tying--requiring people to buy a less desired item to get a desired one; e.g.,
x must buy service to get Xerox copier x Ford only drilled a slot if you bought a radio

No, now that you mention it, I dont trust you!

 Plan

to achieve desired objectives (e.g., profit, market

share) based on available resources (e.g., financial, patents, trademarks, people, brand name/image , distribution channels) subject to choices made (e.g., willingness to take risk, short run vs. long run goals)

DESIRED OUTCOMES

RESEARCH, ANALYSIS AND PLANNING

IMPLEMENTATION

STRATEGY

RESULTS

EVALUATION

 Ultimate

organizational objective

Profit Non-profit
Level

Corporate Business Unit Functional

 The

Business

Values

What is it? Should not define too

and culture Goals and objectives

Profit Revenue Market share Unit sales Employee welfare Social responsibility Technological leadership Other

narrowly or too broadly

The

Mission

Scope Customers Markets Technology Values

 Customers Competencies Competitors

 Demand

measurement/foreca sting Market segmentation Target marketing Market positioning

 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

STRENGTHS STRATEGY

WEAKNESSES

OPPORTUNITIES THREATS

 Strengths

Opportunities

Technology Market share Barriers to entry Brand name Cash

Weaknesses

Hardware
x e.g., home networks

Services
Threats

Recession Legal Regulatory

Non-Windows division

(e.g., MSN, games)

 Decision on

whether

to stay in
ISP business Game business
If

Dealing

with decline in demand due to recession

Price cuts? Hold out?

the decision is to stay:

Should more resources

Political

be invested? Possible focus or differentiation?

relations to limit future legal problems

 Specific Measurable Achievable Consistent

et.al., Marketing Management: A South Asian Perspective, 13th Edition, Pearson Education. www.google.com www.wikipedia.com www.valuebasedmanagement.net
Kotler

Airtel Case Study