INSTITUTE OF MANAGEMENT TECHNOLOGY, GHAZIABAD STRATEGIC MANAGEMENT Course Title: Corporate Strategy & Management The Strategic Position,

Choices & Action Faculty: Rear Admiral Dr Rakesh Chopra, VSM, MBA, PhD Strategy is a deliberate search for a plan of action that will develop a businesss competitive advantage and compounds it. Bruce Henderson Founder, Boston Consulting Group We do corporate planning in the first two weeks of April, and then we get back to our jobs. Anonymous Introduction Strategic Management is about a set of decisions and plans that result in the formulation and implementation of Corporate Strategy to achieve the objectives of an organization under conditions of uncertainty. It focuses toward the achievement of sustainable competitive advantage and is concerned with the long term success of the organization as a whole. All organizations face the challenges of strategy development; some from the desire to grasp new opportunities, others to overcome significant problems. It is necessary to understand how strategic decisions are taken and why changes in strategic direction take place. In the final analysis, Strategy and Strategic Management are so important that they need to be distinguished from other operational challenges, decisions and tasks. The term Corporate Strategy is being used for two reasons. One, it encompasses strategy and strategy development in all types of corporate enterprises - small and large, commercial as well as public. Two, because the term denotes the highest and most general level of strategy in an organization and in this sense embraces all other levels of strategy. These are addressed at three distinct levels: corporate, business and operational and accomplished through nimble strategic planning, innovation and by enhancing operational efficiencies. The formulation of winning strategies has become even more important because globalization in an increasingly borderless world further complicates decision making. In a changing, complex, hypercompetitive milieu, businesses face new dynamic challenges on a continual basis, fortuitously often accompanied by wonderful opportunities for growth. Strategizing, therefore, requires visionary open minds, the will to continually adjust and adapt management styles to environmental changes, to chart the way ahead to achieve the desired goals and objectives. Sun Tzus The Art of War written around 500 BC would form the backdrop to the Course. It show succinct ways to think strategically and propounds principles very applicable to competitive business strategies in the contemporary world.

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Course Objectives The Objectives of the Course on Strategic Management are four fold. One, to understand theory and fundamental concepts to facilitate holistic analyses of business developments under conditions of uncertainty. Two, to develop the ability to apply appropriate strategic tools to identify, examine & diagnose environmental challenges and concerns to match threats and opportunities with internal strengths and weaknesses. Three, to evaluate options to formulate strategic choices for competitive advantage and to compound it. Four, to successfully implement the strategy formulated.

Intended Learning Outcomes At the end of the Course the students would be able to: Carry out an environmental and capability analysis of industry and firms. Think imaginatively and constructively, both laterally and vertically, to formulate corporate strategy in different contexts. Evaluate and select an appropriate corporate and business strategy to achieve competitive advantage. Design a Strategic Plan. Express assessments clearly and concisely.

Course Organization In terms of the pedagogy, the course will be based on tutorial discussions supplemented by student presentations on articles in the discipline, accompanied by in-depth analyses of Case Studies. The intention is to delve into the challenges of formulating corporate strategies and their implementation to manage global businesses by meeting the competition headlong. The focus will be on developing the big picture for a holistic examination integrating all functional area skills and perceptions, and evaluating their interdependence. The Art of War would guide to think strategically. With your experience and maturity, there would be a need to learn from each other. Therefore your active participation is vital in the discussions to raise key questions for further debate to square the circles. Course Provost The participant whose name appears at Serial 1 of the Course List would be the Course Provost and would be responsible to liaise with the Faculty for coordinating the smooth and efficient functioning of the Course. The Provost will be assisted by the Assistant Provost. Class Preparation, Presence and Participation Come well prepared with theory, readings and case study selected for the session to participate in the discussions. Be punctual and alert. Marks would be assigned for this purpose.

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Corporate Events Discussion & Analysis (CEDA): International & National & Linkages with Strategy Formulation The first five to eight minutes of each class will be dedicated to Corporate Events Discussion & Analysis (CEDA) of important international & national political and business headlines to link these with strategy formulation & implementation to better understand the concepts. Your participation in these discussions would contribute significantly to teacher assessment towards Class Participation. Individual Selected Reading Presentations Group presentations on the Selected Readings (SRs) should be of about 12 minutes duration with a maximum of about 15 power point (ppt) slides. Raise important issues for discussion for another 15 minutes. These presentations are a tool to prepare you for future management roles; to present corporate issues discerned by you from a reading or situation. Therefore these are to be of quality and standard. The diction must be clear and the thinking logical. In addition, your turn out is to be exemplary as if you are making the presentation to your senior management and your promotion depends on it. These presentations would be graded. Groups For Case Study Analyses & Group Projects, the class would be divided into Groups of around six participants each. These should be as heterogeneous as possible. Case Studies & Analysis The Groups are to study and analyze the designated Cases. Prepare around 15 case analysis ppts for presentation to the class. This would be followed by discussions. The guidelines for the Case Analysis are given below: In the first instance, relate the Case to the subject(s) studied preceding it. Carry out a situation and SWOT analysis. Discern the relevant issues in the firms Corporate Strategy. Problem Definition in the context of the strategy. The best strategy that you would have followed. In the final analysis, ask yourself the question, What would I have done in the situation had I been the CEO?

Group Projects: Exercise BLUE DIAMOND The students in Groups would be required to select an industry and carry out an in depth examination & analysis of macro and micro environment & of corporate within that industry using all strategic tools discussed during the Course. The Project has been nick-named as BLUE DIAMOND and the details are placed at Appendix A. Course Material (CM) 1. Text: Johnson Gerry & Scholes Kevan, Exploring Corporate Strategy, Text and Cases, Seventh Edition, Pearson, 2006. 2. Strategy: Sun Tzu, The Art of War, OUP, 1963

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Recommended Reading (RR) Friedman Thomas, The World is Flat, Allen Lane, 2005 Selected Readings (SR) The Selected Readings (SRs) for the Course are placed at Appendix B. Evaluation Examination & Quizzes End Term Examination Mid Term Examination Quizzes Internal Assessment 50 marks 30 marks 10 marks 10 marks 50 marks

Attendance and Participation 10 marks SR Presentations 10 marks Case Presentation & Discussions 10 marks Projects- Presentations and Written Submissions 20 marks Please note that there is an equal emphasis on Class participation. Consultation If you have any queries please feel free to raise them during class. You can also email at rchopra@imt.edu or rakchop@hotmail.com for any clarifications. Sessions Plan The Sessions Plan is placed at Appendix C. Conclusion Have a fruitful, participative and enjoyable learning to understand strategy formulation and implementation.

Dr R Chopra, PhD Faculty Strategic Management

APPENDIX A- Group Projects Exercise BLUE DIAMOND Aim. The aim of Exercise BLUE DIAMOND is to carry out an in depth examination & analysis of a selected industry & corporate within that industry using all strategic tools discussed during the Course. Scenario & Requirement. A well renowned global consultancy firm, Messrs McAllen & Co, has been hired by a large diversified Indian MNC, The AVG Group, for a fee of $1.5 m. The AVG Group has varied interests ranging from IT to shipping, construction, etc, and wishes to invest in a new sector and enter the industry which McAllen may recommend. Your Group is to see itself as the lead think tank within McAllen and is being tasked by the senior partners to carry out this study. Your Report is to be directed at the Board of AVG outlining strategies and recommending current and future operational measures that AVG would need to adopt to make its proposed fresh investment. The Project would be done in three parts. Part 1: Industry Analysis Prepare an Industry Analysis providing an all encompassing insight into the industrys competitiveness and imperatives for success in a global scenario. Determine market evolution and industry growth, existing environment and technological changes, the emerging competition and challenges, probable government policy, etc. In other words, cover the key elements that govern the business environment, likely strategic direction the industry could take in the future, performance of the existing major corporate entities focused on contemporary developments underway and their effects on competitiveness. Part 2: Corporate Analysis Following the Industry Analysis, undertake a Corporate Analysis of the leading firm in the industry selected. Study its history, its financial performance, and identify its core competencies and strategic resources. Comment on its past strategies and on current strategies being followed and thus prepare a critique. Part 3: Scenario & Recommendations Draw up a Scenario for 2020. Identify issues that could confront the AVG Group in the next decade, consider the options that may be available to it and finally make your recommendations based on these options. It is once again emphasized that the Report is to meet the business requirements of senior decision makers formulating corporate strategy. They should be able to clearly identify industry trends, characteristics, critical factors for success, etc. Notes for Guidance on the Project The Report should be well written, concise, and focused; obviate repetition and irrelevant information. Do not plagiarize; acknowledge sources quoted and their authors. The spelling, prose, and presentation are expected to be of a very high standard.

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The Report is to be in Arial font size 11 and both, soft and hard copies are to be submitted. The hard copies are to be printed on both sides and may be spiral or thermal bound. Submit assignments in accordance with the promulgated schedule. Please do not request for changes as these will not be permitted. Late submissions will not be accepted. Assessments would be based on the submitted Group work and the presentations made in the class.

Submission of Synopsis Groups are to discuss the broad outlines and decide upon the Industry and the Industry leaders that they would like to study and analyze. Draw up the boundaries and submit a two page synopsis on the appointed date for approval. Mid Course Review of Projects There will a mid course review of the Project on a suitable day to assess progress and to ascertain that the Groups are on the right track to meet the objectives of Exercise BLUE DIAMOND. Presentations To facilitate learning dissemination and assimilation, the Groups would be required to make a 20 min presentation on their Projects to the Course. This will be followed by a 5 min Q & A session.

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Appendix B Selected Readings (SR) 01. 02. 03. 04. 05. 06. 07. What is Strategy? Michael E Porter, HBR Nov-Dec 1996. Strategic Intent, G Hamel & CK Prahalad, HBR Jul-Aug 2005.14. Building Your Companys Vision, James C Collins & Jerry I Porras, HBR, Sep-Oct 1996 'Innovation: The Classic Traps, Rosabeth Moss Canter, HBR Nov 2006 How Competitive Forces Shape Strategy, Michael E Porter, HBR, MarApr 1979. The Use & Abuse of Scenarios, Charles Roxburgh, McKinsey Quarterly Nov 2009 The Core Competence of the Corporation, CK Prahalad & Gary Hamel, HBR May-June 1990 Competing on Resources, DJ Collis & CA Montgomery HBR Jul-Aug 1995 Capitalizing on Capabilities, D Ulrich & N Smallwood, HBR JUN 2004. Shift after SR 5 Blue Ocean Strategy, W Chan Kim & Renee Mauborgne, HBR Concepts and Evolution of Business Models, L Schweizer, Journal of General Management, Vol 31 No 2 Winter 2005. Why Business Models Matter, J Magretta, HBR May 2002. To Diversify or Not to Diversify, CC Markides, HBR Nov-Dec 1997. Launching a World Class Joint Venture, J Bamford, D Ernst & DG Fubini, HBR Feb 2004. When to Ally & When to Acquire Jeffrey H Dyer, Prashant Kale, & Harbir Singh, HBR Jul Aug 2004 How Strategy Shapes Structure, Kim, W Chan, Maubergne, HBR Sep 2009 Changing Role of Top Mgmt - Structure to Processes, Bartlett & Ghoshal, HBR Do You have a Well Designed Organization? M Goold & A Campbell, HBR 2002 Building Competitive Advantage through People, Bartlett & Ghoshal, Sloan Management Review 2002 Vol 43 No 2 Strategy & the Internet, M Porter, HBR 2001 Disruptive Technologies: Catching the Wave, Why do Employees Resist Change, Paul Strebel, HBR CASE:Tight Rope Walk at Tata Steel: Case Study- J Singh, South Asian Journal of Mgnt., Vol. 15, No. 1

08. 09. 10. 11. 12. 13. 14. 15.

16.

17.

18. 19. 20.

21. 22. 23. 24.

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25. Supplementary Reading. The Spirit of Jugaad, Balasubrahmanyam S, et al, Indian School of Business, Hyderabad

9 Appendix C Sessions Plan: Strategic Management

(All sessions are of 90 mins duration) PART 1 Ser No 1&2 Topic Introduction to the Course on Strategy & Management History of Strategic Development

Lessons from an Ancient Chinese Text: Back to the Future How to Think Strategically! CM 2 Sun Tzus The Art of War Presentation & Discussions 3 Strategy Development: What is Strategy? Concepts, Terminology & Strategy Lenses Presentation & Discussion: CM Chap 1 & SR 1

Strategic Intent- Company Vision & Strategy Through Analogy Presentation & Discussion: SR 2 & 3 Case Study 1: Electrolux Assignment Exercise NAAM KARAN: Groups as Mars Groups are to Envision a Vision for a Nominated Organization Innovation in Business & Jugaad in the Indian Context Discussion: CM Chap 2 & SR 4 + Supplementary Reading SR 25 Case Study 2: Amazon.com

6&7

The Environment & Nature of Competitive Advantage Part 1-The Macro Environment & Industries & Sectors PESTEL, Five Forces Framework Scenarios: A Tool for Visionary Strategic Planning Discussion CM Chap 2 Sec 2.1-2.3 & SRs 5 & 6 Part 2- Competitors & Markets, Opportunities & Threats Discussion CM Chap 2 Sec 2.4 & 2.5 Case Study 3: Global Pharmaceutical Industry

8&9

Strategic Capability Part I: Foundations of Strategic Competences, Cost Efficiency Discussion: CM Chap 3.1-3.4 & SRs 7 & 8 Part II: Capabilities for Competitive Advantage, Knowledge Capability, Resources &

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Management, The Value Chain, Benchmarking Discussion: CM Chap 3.5-3.7 & SR 9 Case Study 4: Listening at eBay 10 Expectations & Purposes: Corporate Governance & Ethics Discussion: CM Chap 4 Case Study 5: Case Tight Rope Walk at Tata Steel

PART II 11 Blue Ocean Strategy Discussion SR 10 Case Study 6: Ryanair

The Cultural Context of Business & Organisational Purpose 12 Discussion: Chap 4 Sections 4.5 & 6 Case Study 7: Manchester United, Brand of Hope & Glory

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Business Strategies: Concepts, Evolution of Business Models & Planning Discussion: CM Chap 5 & SRs 11 & 12 (Read Only) Case Study 8: Network 18

14

Corporate Strategies: Intent & Capabilities Diversification, Value Creation & Parenting Discussion: CM Chap 6, SRs 13 & 14 Case Study 9 : The Future Group

15

Directions & Methods of Strategy Development M&As & Strategic Alliances Discussion: CM Chap 7 & SR 15 Case Study 10: Dabur

16

Organizing for Success: Strategy, Structure, Systems Reading: SR 16. How Strategy Shapes Structure, Kim, W Chan, Maubergne, HBR Sep 2009 Case Study 11 Building One BBC Processes Readings: SR 17. Changing Role of Top Mgmt - Structure to Processes, Bartlett & Ghoshal, HBR

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Relationships & Configurations Reading: SR18: Do You have a Well Designed Organization? M Goold & A Campbell, HBR 2002 Johnson & Scholes Chap 8 Case Study12: Sony

17-18

Enabling Success Part 1: Managing People & Information Readings: SR19 : Building Competitive Advantage through People, Bartlett & Ghoshal, Sloan Management Review 2002 Vol 43 No 2 SR 20 : Strategy & the Internet, M Porter, HBR 2001 Case Study 13: NHS Direct-A Fast Moving & Developing Service Part 2: Managing Finance & Technology Readings: SR 21 : Disruptive Technologies: Catching the Wave, Case Study 13: SerCom Solutions Johnson & Scholes Chap 9

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Managing Strategic Change Readings: SR 22. Why do Employees Resist Change, Paul Strebel, HBR Johnson & Scholes, Ch 10 Case Study 14: Marks & Spencer

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Group Presentations Q&A Summing Up