BUSINESS POLICY & COMPETITIVE STRATEGY

DEFINING BUSINESS POLICY

Definitions, Kottr, Glueck & Jauch, Kenneth Andrews, Porter
• Strategy formulation techniques
• Discussion on planning for the present & future
• Demand forecasting techniques
o Quantitative models: Averages, moving Trends, regression, factor analysis
o Significance Tests: T-Test, Chi Square Test

CORPORATE LEVEL PLANNING

• Methods to define corporate mission
o Drucker’s Model: Corporation definition, customers, value time relative position
(Will and Should) as per Ansoff’s Strategy Gap**
• Identifying S.B.Us
o Independence equation, management authority relevance**
• Evaluating current business portfolio
o Growth share matrices, BCG, GE Generic strategies: Build, hold, harvest, divest
w.r.t stars, question marks, cash Cows, dogs
• Identifying new growth areas
o Ansoff’s strategy gap revisited, integrative strategies: horizontal, vertical
intensive, ansoff’s Model: Diversification, concentric, horizontal, conglomerate

. BUSINESS LEVEL PLANNING (8 HRS)

• Defining business mission
o Drucker’s model revisited
o Business Definition, Customers, Value
o Time Relative Position (Will and Should) as per Ansoff’s Strategy Gap
o Relevance of Specificity w.r.t Corporate Mission Statement
• Internal Environment Analysis
o Core Competency Model of Prahlad
o Filter Test for Determining Core Competencies
o Filter Test for Determining Core in competencies
• External Environment Analysis
o Industry Analysis Framework of Porter
o Understanding 5 forces and 5 entities:
- Customers, Suppliers, Potential Threats, Substitutes, Competitors
o Proportionality Quotients as Defined by Porter
o Barriers to Entry: Barriers to Production, Barriers to Marketing
• Goal Formulation
o Sales, Market Share, Cash Flows, Profits
o Relevance of PLC
o Investment Center, Revenue Center, Cost Center, Profit Center, Cash Flow Center
• Strategy Formulation
 o Porter’s Generic Strategies
- Cost Leadership: Comparison with Price Leadership, Emphasis on Production
- Differentiation: Quality, Service, Style, Technology
- Mutual Exclusivity of Generic Strategies
- Focus Strategies as a Choice
- Non-Focus Strategies as a Choice
• Program Definition
o Blueprint for Action
• Implementation
o McKinsey’s 7-S Framework:
- Structure, Strategy, Systems, Staff, Style, Skills, Shared Values
• Feedback & Control
NEWER DIMENSION FOR STRATEGIC PLANNING AND IMPLEMENTATION
•Blue Ocean strategy
•Balance score Card
•Competing for the future