sm unit ii.pptx (1) (1).ppt

Unit ii: Strategy Formulation and
Implementation
• Strategy Formulation: Vision, Mission, Objectives, Goal, Targets,
Strategies, Policies, Types of strategies – Corporate level generic
strategies – Divisional Level strategies, functional level strategies.
• Strategy Implementation: Program, Budget, Procedures- Components
of Strategy Implementation, Steps in Strategy Implementation, Role of
Leadership in Strategic Management.

Strategy
Formulation
•Strategy formulation is the development of long-range plans
for the effective management of environmental
opportunities and threats, in light of corporate strengths and
weaknesses.
•It includes defining the corporate vision, mission, specifying
achievable objectives, developing strategies, and setting
policy guidelines.

Vision of the
Company
• Vision of a company is rather a permanent statement articulated by the
CEO of the company who may be Managing Director, President, Chairman,
etc.
• The purpose of a vision statement is to
• Communicate with the people of the organization and to those who are in some
way connected or concerned with the organization about its very existence in terms
of corporate purpose, business scope, and the competitive leadership.
• Cast a framework that would lead to development of interrelationships between
firm and stakeholders viz. employees, shareholders, suppliers, customers, and
various communities that may be directly or indirectly involved with the firm.
• Define broad objective regarding performance of the firm and its growth in various
fields vital to the firm.

VISION
• Vision is a theme, which gives a focused view of a company.
• It is a unifying statement and a vital challenge to all different units of
an organization that may be busy pursuing their independent
objectives.
• It consists of a sense of achievable ideals and is a fountain of
inspiration for performing the daily activities.
• It motivates people of an organization to behave in a way, which
would be congruent with the corporate ethics and values

The major components of a vision statement
must consist the following:
•a) Mission of the firm in terms of product, markets, and
geographical scope and a way to attain a desired competitive
position.
•b) Clear identification of business units and their
interrelationship in terms of shared resources and concerns.
•c) Statement of corporate philosophy, corporate policy and
values

MISSION
• Mission statement is an enduring statement of
purpose that distinguishes on business from other similar
forms.
• A mission statement identifies the scope of a
firms operations in product and market terms

Business Mission
• The basic concept of mission of business is expressed in terms of
products, markets, geographical scope along with a statement of
uniqueness.
• At business levels the mission statement becomes sharper and
gets focused on specifics.
• It is detailing out of the vision statement that reflects the strategic
posture of a company.
• The mission statement is an expression of business purpose as well as
needed excellence to achieve a position of competitive leadership.

About mission
• The primary information contained in a mission statement should be the required
degree of excellence for assuming a position of competitive leadership, a clear
definition of the present position, and future expected scope in business.
• The description is usually broad and goals are achievable in reasonably short span of
a time frame of 3 to 5 years.
• Business scope is explicit in starting what is to be included and excluded.
• Purpose of defining business scope is to clearly enumerate specification of current
and future product, market and geographic coverage of business.
• Many firms suffer from marketing myopia and the contrast between the current
and future scope is an effective diagnostic tool to caution against the myopic position
of company.
• Information contained in mission statement should provide a way of selecting a
method of pursue a position of either leadership
or definite competitive advantageous positions.

ELEMENTS
• Clearly articulated
• Relevant
• Current
• Written in a positive tone
• Unique
• Enduring
• Adapted to the target audience

VISION
1. indicates what company wants to create in the future.
2. a clear vision is essential to develop an appropriate mission
statement
3. powerful shapers of effective corporate culture
Characteristics of vision
1. developed through sharing across an organisation (ethical,
financial and operational guiding lights of the company
2. reason for being
3. method of convincing others about vision
4. change agendas

contents of mission
statements
company product or service markets
technology organisational objectives
organisational philosophy or core values
organisational self concept
public image

MISSION
An enduring statement of purpose that distinguishes one
organisation from other similar organisations.
1.declaration of an organisation’s reason for being
2.purpose, image and character
key elements in developing a mission statement
1.history
2.distinctive competencies
3.org environment

characteristics of a mission
statement
1. market rather than product focus
2. achievable
3. motivational
4. specific
5. clear
6. distinctive
7. indicate major components of strategy and objectives
8. achievement of the policies

•Burt Nanus, wellknown expert on
strategic vision states that“a vision
is not a mission. Mission is to state its
purpose, not its direction.
•Vision as the future direction of the
organization.

Objectives - those ends which the organisation seeks to
achieve by its existence and operations.
1. Organizations plan for long-terms and develop long-term objective.
2. These objectives cover various areas viz. return on investment, competitive
position, leadership in a definite field, productivity, public image, employee
development, profitability, etc.
3. It is important that objective should not be ambiguous and on the contrary these
should be clear and measurable.
4. It should also be possible to achieve these objectives although it may be slightly
difficult to do so.
5. The objectives are the results one expects to get out of business one does, and
the way one does the business is called the business process, which must be long
term.
6. Objectives can be increasing value added reduction of inventory to a certain
level, training a specific number of employees in some skill, achieving business
excellence, multifold earning per share, capturing certain markets etc

OBJECTIVES
1. Basis for the functioning of an organisation
2. Help to define the organisation in its environment
3. Organisations need to justify their existence, to
legitimise themselves in the eyes of the govt., customers and
society at large.
4. long range/short rangecompany aims, wide or
narrow part of an enterprise
5. tangible (quantifiable targets or goals) or intangible (company
image or employee morale…
6. not staticbut dynamic

Areas of objectives
1. profitability
2. markets
3. productivity
4. innovation
5. product
6. financial resources
7. physical facilities
8. organisation structure and activities
9. manager performance and
development
10. employee performance and attitude
11. customer service

IMPORTANCE OF
OBJECTIVES
1. justify the organisation
2. provide direction
3. basis for management by objectives
4. help strategic planning /management and formulating
strategies
5. help coordination of decisions and decision makers
6. provide standards for assessment and control
7. help decentralisation
8. more tangible targets than the mission statements
9. define the organisation in it environment
10. reflect the changes in the environment

characteristics of effective
objectives
1. Specific
2. level of effort
3. measurable
4. consistent long run and short run objectives
5. achievable
6. time bound

PRINCIPLES/GUIDELINES OBJECTIVES
IDEAL
1. participation
2. clarity
3. realism
4. flexibility
5. consistency
6. ranking
7. verifiability
8. balance
9. contemporary and innovative
10. not be too many

CLASSIFICATION OF
OBJECTIVES
1. economic and social objectives
2. primary and secondary
3. short - run and long run
objectives

● economic objectives - survival, return on investment, growth,
innovation, betterment, market share
● social objectives - interests, needs and welfare of society, long
terms, survival, growth
● primary - extension, development, improvement of the
company’s business and building financial independence,
payment of fair and regular dividends to the shareholders, fair
wages to workers, reduction of prices to consumers
● secondary - bonus, amenities of the locality, promote
education, research, development

● Short-term objectives focus on what you can do right
here, right now. They're about working with what you have
now or in the near future. A short-run objective is a goal
to be achieved within 12 months.
● Long-term objectives are tied to who you want to be in
the future. They require meticulous planning and should
align with your life mission and purpose
● Long-run objectives are goals that should be achieved
outside of a year or between a year and ten years from its
initiation.

GOALS
• set of goals for each objective
• goals are closed ended statements, an intermediate result to be achieved by a
certain time as part of the grand plan
• TARGETS
• specific goals are referred as targets
• short term( one year or less), milestones or benchmarks
• measurable, quantitative, challenging, realistic, consistent and prioritized
• established at corporate, divisional functional levels
• stated in terms of management, marketing, finance, production, research and
development accomplishments
• important in strategy formulation
• basis for allocating resources

Policies
•A policy is a broad guideline for decision - making that
links the formulation of strategy with its
implementation.
•Companies use policies to make sure that employees
throughout the firm make decisions and take actions
that support the corporation's mission, objectives,
and strategies

Strategie
s
•A strategy of a corporation forms a
comprehensive master plan stating how the
corporation will achieve its mission and objectives.
•It maximizes competitive advantage and minimizes
competitive disadvantages.
•The typical business firm usually considers three
typesof strategy: corporate, business and functional.

TechCo Solutions is a startup company that aims to revolutionize the tech industry by
providing innovative solutions to everyday problems. The company is founded by a group
of passionate tech enthusiasts with diverse backgrounds, and they have secured initial
funding from investors. The founders gather to brainstorm and discuss the company's
vision, which is the long-term, aspirational, and overarching purpose of TechCo Solutions.
After careful consideration, they craft the following vision statement: "TechCo Solutions
envisions a world where technology empowers and enriches the lives of people,
revolutionizing the way we interact, work, and live."
Mission: With the vision in place, the founders proceed to determine the mission, which
outlines the specific actions and scope of TechCo Solutions to achieve its vision.
They draft the mission statement as follows: "Our mission is to develop cutting-edge tech
solutions that seamlessly integrate into people's lives, addressing real-world challenges
and enhancing productivity and connectivity.":
Next, the founders set the company's objectives, which are specific, measurable,
achievable, relevant, and time-bound (SMART) goals that align with the mission.

They identify the following key objectives: a. Launch a flagship product within the next 12
months. b. Acquire 100,000 active users within the first year of product launch. c.
Establish strategic partnerships with industry-leading companies within 18 months.
The goals for TechCo Solutions include: a. Develop a user-friendly and scalable platform
that caters to various customer needs. b. Implement effective marketing and outreach
strategies to attract and retain customers. c. Foster a culture of innovation and
collaboration within the company.
TechCo Solutions identifies its target market through market research and analysis. They
discover that their flagship product, a smart home automation system, is best suited for
tech-savvy homeowners between the ages of 25 and 45, residing in urban areas.
In order to ensure ethical conduct, customer privacy, and employee well-being, the founders
create a set of policies to govern TechCo Solutions' operations. Some of the policies include
data privacy policy, employee code of conduct, and environmental sustainability policy.
The strategy includes aspects like product development, marketing, sales, customer
support, and resource allocation. They decide to focus on an online-first marketing strategy,
emphasizing social media, influencer collaborations, and content marketing to reach their
target audience effectively.

strategies
● corporate level
● business level
● functional level

CORPORATE LEVEL
Pertain to the question which businesses shall be in and what should
be the development strategy in respect of each of these businesses?
1.stability strategy
2.growth strategy
3.retrenchment strategies
4.defensive strategies
5.combination strategy
6.Portfolio strategy - BCG MATRIX, GE MULTIFACTOR PORTFOLIO
MATRIX

1. STABILITY STRATEGY
• Neutral strategy - not a “do nothing” strategy - may be incremental
improvements
• it continues to serve the customers in the same product or service, market
and functional sectors as defined in its business definition
• it requires adoption of appropriate competitive strategies to remain
successful in the business
• have to make offensive and defensive moves vis-vis competitors
• long term stability strategy - requires reinvestment, R &D , innovation
• do the same thing strategy - do the same thing better
1. common with large, dominant companies on mature industries
2. alcoholic beverages, tobacco products etc..
3. family dominated small and medium companies

REASONS FOR STABILITY
STRATEGY
1. fairly doing well and hopeful of same in future
2. family dominated /private company may not like to expand
(diluting control and effective supervision not possible)
3. sticking to the known business is always better and safe
4. may not have the resources and capabilities for expansion
5. may not want to take the risks of growth and expansion
6. has core competence (do not want to diversify)
7. does not have the mindset of a strategist
to analyse the environmental opportunities and seize
the opportunities
cement, chemicals, plastics, banking, fertilizers, iron and steel adopt stability
strategies

STABILITY STRATEGY
Toyota, the renowned automotive manufacturer, has
embraced a stability strategy by consistently refining its
product offerings and manufacturing processes.
The company's emphasis on quality, reliability, and cost-
efficiency has allowed it to maintain a strong market position
and reputation for producing durable and fuel-efficient
vehicles.
While Toyota does explore new technologies and sustainable
mobility solutions, it remains committed to its core business
of manufacturing automobiles.

2. GROWTH STRATEGY- internal and external growth
strategies
redefining the business by adding new
products/services markets or by substantially
increasing the current business.
a company pursues when:
1.It enters new business (including functions) or market
2.effects major increase in its current business
3.increasing existing lines of business in the existing markets
4.adding new markets

Internal growth strategies
increasing the firm’s production capacity, employees and sales

Reasons for growth strategies
1. survival
2. current business is perceived as
having in future, unstable, volatile in
nature, does not fully utilise the available
resources and capabilities
3. feeling of the need for
spreading/diversification business risks
4. retaliatory move
5. imitate the growth strategies of
competitors
1. natural urge to grow
2. motive - to increase market share or
gain dominance
3. leadership: decision to exploit the
environmental opportunities
4. motivation
5. personal reasons
6. profits
7. miscellaneous - production, import,
export

indicators of
growth???
revenue increase
customer loyalty new
branches new products
expansions increase
sales market share
image/brand recognition

external growth
strategy
mergers and acquisitions
foreign collaboration/joint venture

L&T-Alstom JV wins
Chennai
Metro track work project

Sony Ericsson (Sony Corporation and Ericsson):
Sony Ericsson was a joint venture between Japanese electronics
giant Sony Corporation and Swedish telecommunications company
Ericsson.
The joint venture was formed in 2001 to combine Sony's expertise in
consumer electronics and Ericsson's strength in mobile
communications.
The partnership aimed to develop and market mobile phones under
the Sony Ericsson brand.
The joint venture ended in 2012 when Sony acquired Ericsson's
stake and integrated the mobile phone business into Sony Mobile
Communications.

Kotler- Growth strategies
1. intensive growth strategy - market penetration strategy (increase
sales to the current customers, pull customers from the
competitors products, convert non - users into users) , market
development strategy (adding new channels of distribution, new
market segments, new geographical markets) , product
development strategy(relies on developing new products or modifying
existing products so they appear new, and offering those products to current or
new markets.)
2. integrative growth strategy ((same level )horizontal and
(different levels)/vertical)
3. diversification growth strategy

1. Market penetration strategy
Apple Inc. is a multinational technology company
known for its iconic products like the iPhone, iPad,
Mac computers, and various software and
services.
Despite having a large and loyal customer base,
Apple continues to implement market penetration
strategies to increase sales and expand its market
share further.

2. Market Development Strategy for Nike Inc.:
Nike Inc. is a multinational sportswear and athletic
footwear company known for its iconic "swoosh" logo
and high-quality athletic products.
To drive growth and expand its market presence, Nike
employs a market development strategy that focuses
on adding new channels of distribution, targeting new
market segments, and entering new geographical
markets.

3. Product Development Strategy for Google:
Google, now a subsidiary of Alphabet Inc., is a
multinational technology company known for its search
engine, online advertising platform, and a wide range of
digital products and services.
Google's product development strategy focuses on
continuous innovation and the creation of new and
improved products to meet evolving user needs and
maintain its position as a market leader in the
technology industry.

Horizontal Integration
Horizontal integration is the process of a company
increasing production of goods or services at the same
level of the value chain, in the same industry. A
company may do this via internal expansion,
acquisition or merger.

Vertical Integration
Vertical integration is a strategy that allows a
company to streamline its operations by taking
direct ownership of various stages of its production
process rather than relying on external contractors
or suppliers.

Vertical diversification is when you move up or down
the supply chain of your industry, and take control of
more stages of production or distribution. For
example, a clothing retailer might start manufacturing
its own fabrics, or a car maker might acquire a
dealership network.

synergistic
diversification
realisation of synergistic effects
1.marketing synergy - common distribution channels, sales promotion
etc..
2.operating synergy
3.investment synergy
4.management synergy
concentric diversification (new products with existing product lines)
horizontal diversification (new product which is technologically
unrelated to the current product line (current customers -camlin)

conglomerate diversification
unrelated diversification

3. retrenchment
strategies
defensive strategy, involves contraction of the scope or level of
business or function
when:
1.it drops product lines, markets, market segments or functions
2.focuses on functional improvements or reversing certain
deteriorating trends

reasons for retrenchment
strategy
1. certain divisions/product lines/products/market
segments/functions are not profitable
2. profit is less than target rate
3. focus on core business
4. effective management is not possible
5. serious financial problem
6. does not confirm to the company philosophy/ethics
7. deteriorating performance indicators

3. defensive
strategies
divestiture - sells /divest itself part /whole business liquidation - entire
company is sold or dissolved
becoming a captive - subjects itself to the decision of other firm
turnaround strategy - reverse certain negative trends and bring the firm
back to normal health and profitability

4. combination
strategies
adopts more than one grand strategy
simultaneously or sequentially

PORTFOLIO
STRATEGY
1. it answers the question: on which business shall we be, while
competitive strategy answers the question shall we succeed in each.
2. It is the analysis of a company as a portfolio or collection of different
businesses with a view to identify the status and potentials of the
various businesses with regard resource use and resource
generation
3. evaluation of business portfolio: models - BCG, GE multifactor
Portfolio Matrix

The BCG Matrix is a strategic tool to provide an initial
screen of a businesses opportunities. By then determining
a strategy for each individual product of either hold,
divest, harvest, or build, the portfolio mix of a business
can be maintained in a profitable combination, for the
long-term.
The BCG matrix is a matrix designed by the Boston Consulting group back in
1970’s. It is a Matrix which helps in decision making and investments. It
divides a market on the basis of its relative growth rate and market share and
comes up with 4 Quadrants – Cash cow, Stars, Question marks and Dogs.
Products may be categorized in any one of the quadrants and the strategies
for these products are decided accordingly.

• market growth rate -
indicator of the
attractiveness of the
industry and
• relative market share is an
indicator of the strength of
the firm in that industry
relative to its competitors
https://www.marketing91.com/bcg-
matrix/

GE MULTIFACTOR PORTFOLIO MATRIX
Also known as business attractiveness screen
developed in 1970s by the general electric of
USA
3 by 3 matrix which rates each SBU against two
critical variables - industry attractiveness and
business strength

Netflix continued its growth path
and rapidly expanded between
2012 and 2021:
● In 2012, the platform had 20
million subscribers, consumed
30% of all residential US
bandwidth, and launched in the
UK.
● By 2018, Netflix had 125 million
subscribers and a market value
of $151 B.
● In 2020, Netflix added 36 million
subscribers to its user base and
had a net income of $2.76 B.

industry
attractiveness
1. availability of inputs
2. overall market size
3. annual growth rate of the market
4. profitability
5. competitive intensity
6. technological requirements
7. capacity utilisation

business
strength
1. market share
2. market share growth rate
3. brand image
4. after sales service
5. pricing
6. distribution capacity
7. capacity utilisation
8. product
9. quality
10.technology

The advantages of GE Matrix are:
● A simplified approach to portfolio analysis and
investment allocation decisions
● Highly consistent framework
● Applicable across different industries
● An efficient method of determining strategic paths for
multiple SBUs
● Helps measure and map the strategic position of SBUs
● Helps understand which businesses are making a profit
and which aren’t

The possible limitations of GE Matrix are:
● The GE Matrix is only a snapshot of your portfolio’s
performance
● It relies on subjective estimations of market attractiveness
and business strength
● Lacks nuance in differentiating between SBUs
● Teams may need to do more research before they can
make investment decisions
● May not be suited for emerging or rapidly-evolving
industries

2. DIVISIONAL LEVEL/BUSINESS LEVEL
STRATEGIES
Taking offensive or defensive actions to create a defendable
position in an industry, to cope successfully with the five
competitive forces and thereby yield a superior return on
investment for the firm.
michael porter - three general strategies
1.overall cost leadership
2.differentiation
3.focus - cost and differentiation

1. overall cost leadership
● aggressive construction of efficient scale facilities
● vigorous pursuit of cost reduction from experience tight
cost and overhead control
● avoidance of marginal customer accounts (Customers who
present an abnormal risk of non-payment)
● cost minimisation in areas like R & D , services, sales
forces, advertising and so on

cost leadership - risks
• other firm may imitate the cost leaders so that the cost leadership
is lost
• technological changes may result in the firm losing cost leadership
• cost focusers may achieve even lower cost in segments
• competition on bases other than cost may become more important
reliance, ranbaxy laboratories, sundaram fasteners, arvind mills and
bajaj auto
reliance - lowest cost polyester producer in world

2.
differentiation
a firm seeks to be unique in its industry along some dimensions
that are widely valued by key buyers
common requirements for successfully carrying out the differentiation
strategy
1.creative flair
2.engineering skills
3.R & D capabilities
4.innovative marketing capabilities
5.motivation for innovation
6.corporate reputation for quality or technological capabilities

differentiation risks
• imitation
• price difference between the differentiating firm and
other is very great
• changes in consumer needs/tastes
• differentiative focusers may achieve even greater
differentiation in segments

3.
focus
rests on the choice of a narrow competitive scope within an
industry which the focuser can serve better than the competitors
1.cost
2.differentiation
on narrow target segment risks
1.imitate
2.competitors may focus on sub-markets
3.basis of focus may erode
4.customer characteristics and base may shift

3. FUNCTIONAL STRATEGIES
● operations
● finance
● hr
● marketing

Operations management strategies
1. location strategy: nature of
organisation,multinational - transnational -
subsidiaries/global/international - centralise,
integrated networks
2. cost- scale economies, nature of assembly operations, taxes
and transport costs, exchange rate variation, availability and
cost of inputs, logistics, plc, demand pattern, nature of
product, govt policies and regulations, social and political
factors
3. make or buy - quality, price, service and delivery others:

marketing management strategies
marketing mix strategies - product, price, promotion
and place
product-market
1.SWOT analysis and choice of product - market set
2.market development and marketing mix strategies
3.implementation and evaluation and control

HRM
strategies
● labour market characteristics
● cultural factors
● regulatory environment
● attitude towards employment & conditions of employment
● staffing policy- ethnocentric approach (parent country
nationals, polycentric - host country nationals , geocentric
approach - people recruited globally)

financial management
strategies
● capital structure
● sources of finance
● dividend policy

Strategy implementation is the sum total of the
activities and choices required for the execution of
strategic plan by which strategies and policies are
put into action through the development of
programs , budgets and procedures

Strategy
implementation
1. program: Programs provide a 'first front line' for implementation
of strategic objectives, as programs are by nature strategically
defined and implement a subset of the strategy. ... Programs also
provide the bridge to strategy implementation on projects
2. budget:Budgets shows how resources will be allocated to
implement the strategy
and the strategy specifies how an entity combining their capabilities with
market opportunities for the goals. Within an entity budgets can be
developed both short-term (1 month, quarter) and long-term (from
one year).

Budgets are necessary to highlight the financial implications of plans, to
define the resources required to achieve these plans and to provide a
means of measuring, viewing and controlling the obtained results, in
comparison with the plans. ... Also, the budget can prevent imminent
issues.
3. procedures:Strategic implementation refers to the process of
executing plans and strategies. These processes aim to achieve long-
term goals within an organization. Strategic implementation, in other
words, is a technique through which a firm develops. It utilizes and
integrates new processes into the structure of an organization

STEPS IN STRATEGY
IMPLEMENTATIOn
1. Leadership implementation
a. right people on positions responsible
b. ability, integrity and commitment of ceo and other top executives
2. Communicating the strategy
a. all to be informed to instill a feeling of belongingness
b. internal and external stakeholders
c. clear understanding
3. Formulating of SBU Strategy
a. corporate strategy —-SBU objectives —-SWOT analysis —strategic
analysis and choice, implementation and evaluation and control

4. Annual Objectives
• contribute to long terms objectives
• lay down specific golas, targets within a time frame to be
achieved
• business, functional areas/sub units
• SMART and communicated
• help in resource allocation
• objective basis for monitoring

5. FUNCTIONAL
STRATEGIES
• short term game plans
• various measures in different time horizons
• help in implementation of grand strategy
6.Resource Allocation
• financial, human, material , technological, facilities…( procure
through operations budget, capital budgets and financing
plans)

7. Development of policies
• compatible, workable , broad general guide to action
• clear, delegation, avoid delay in decision making, minimise
conflicts
• corporate - divisional - departmental
8. Organisational implementation
9. evaluation and control
10.reward system

Role of leadership in strategic
management
organisational and leadership levels
1. top (strategic) level
2. middle (organisational level)
3. bottom (production or action orientated
level)

Top level - thinkers, visionaries, strategic leaders, setting the strategic
direction , functions - complex, indirect and ill defined.
lower levels - doers, action oriented, little discretion about the
decisions they make, the procedures they use, degree of innovation
they implement
mid levels - setting near and mid term goals and directions and for
developing the plans, procedures and processes, budgeting, allocating
major resources which are major tools for directing, controlling and
coordinating , prioritising missions and allocating major resources t
tailor capability at the lower levels.

STRATEGIC
LEADERSHIP
1. the ability to anticipate, prepare and get positioned for the future
2. it is the ability to mobilise and focus resources and energy on the
things that make a difference and will position you for success in the
future
3. it is the courage to think deeply about what you want to do
applied strategic leadership - about creativity, intuition, planning to
help you reach your destiny.
they think and act before they have to before they are forced to take
up a defensive or reactive position.

strategic
leaders
require high conceptual clarity, excellent analytical
skills, smart creative thinking skills, highly motivated
innovative orientation and a positive disposition
towards risk bearing.

characteristics of strategic
leaders
1. proactive approach, eagerness to update
knowledge,analytical skills , strategic and creative
thinking,innovative mindset and institution building capabilities
2.ability to forecast and envision futurescenarios and
being alert and ready to seize right opportunities
3.ingenuity to picture a range of strategic possibilities
4.a great understanding of timing
5.habit of investing time in developing people and capability for the
future of the organisation as well as managing the current needs of the
organisation

role and functions of strategic
leadership
1. forecasting the future environment of the respective business
2. setting a vision for the organisation
3. formulation of mission and objectives towards accomplishment
of the vision
4. formulation of strategy
5. activation of the strategic plan
other
creative and generous strategists symbolic and substantive roles

Here Tangy Spicy Limited is following up the expansion strategy by acquiring the
Chilliano of Italy
Read more at:
https://www.caclubindia.com/forum/case-studies-for-strategic-management-ipcc-1
26348.asp

what strategy?
Q. Why the Tangy Spices Ltd. is interested in this
takeover?

Q. Why the Tangy Spices Ltd. is interested in this takeover? The Tangy Spices Ltd. has
competencies in Indian spices. The major destination markets for the Tangy spices Ltd. exports
have been the Europe and America. The competencies of Chilliano lie in Italian herbs and
spices. Tangy with this takeover will synergies its operations in the world market, particularly in
Europe and America—its major exports markets. It also wants to take advantage of the reach
enjoyed by the Italian company in several countries where its products are not beng sold
presently. Further, rejection of promoters to transfer the shares as agreed in an agreement
entered a year back also prompted the Tangy to go for his takeover.
Read more at:
https://www.caclubindia.com/forum/case-studies-for-strategic-management-ipcc-126348.asp

Meters Limited is a company engaged in the designing, manufacturing, and marketing of
instruments like speed meters, oil pressure gauges, and so on, that are fitted into two and four
wheelers. Their current investment in assets is around Rs. 5 crores and their last year turnover
was Rs. 15 crores, just adequate enough to breakeven. The company has been witnessing over
the last couple of years, a fall in their market share prices since many customers are switching
over to a new range of electronic instruments from the ange of mechanical instruments that
have been the mainstay of Meters Limited. The Company has received a firm offer of
cooperation from a competitor who is similarly placed in respect of product range.
The offer implied the following: (i) transfer of the manufacturing line from the competitor to
Meters Limited; (ii) manufacture of mechanical instruments by Meters Limited for the competitor
to the latter's specifications and brand name; and (iii) marketing by the competitor.
The benefits that will accrue to Meters Limited will be better utilization of its installed capacity
and appropriate financial compensation for the manufacturing effort. The production manager of
Meters Limited has welcomed the proposal and points out that it will enable the company to
make profits. The sales manager is doubtful about the same since the demand for mechanical
instruments in shrinking. The chief Executive is studying the offer.
Read more at: https://www.caclubindia.com/forum/case-studies-for-strategic-management-ipcc-126348.asp

Q.(1) What is divestment strategy? Do you see it being practised in
the given case? Explain.
Q.(2) What is stability strategy? Should Meters Limited adopt it?
Q(3) What is expansion strategy? What are the implications for
Meters Limited in case it is adopted?
Q.(4) What are your suggestions to the Chief Executive?

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