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Transcript of Welcome
WELCOME
GROUP MEMBERS
• SANJU P CHERIYAN
• ASHILY.P.G.
• ATHIRA SUNDAR
• ABHISHEK
• JASEEM.K.K.
• JIJO MON JOSEPH
GROUP - SKIDS
• A “Grand Strategy” is a comprehensive general
strategy which provides the basis for strategic
direction that will accomplish the organization’s
long- term goals.
• General strategies are viewed by the organization
as necessary to the accomplishment of its mission
and the achievement of its preferred future.
GRAND STRATEGY
• Grand strategies may be short-term focused
organizational efforts or long-term far-reaching
initiatives.
• An organization should review and consider a
variety of widely used grand strategies before
deciding how to position itself to operate
successfully in its particular environment.
GRAND STRATEGY
• Grand strategies are major, overarching strategies
that shape the course of a business. Unlike tactics, they
are focused on the long-term goals of the business
• Grand strategies include three types of strategies
Growth
Stability
Retrenchment
THREE TYPES OF STRATEGIES
• In stability strategy, management maintains the
status quo if the company is doing well and does not
want to take risks associated with more aggressive
growth
• Both the growth strategy and retrenchment strategy
have a number of different ways to achieve the
results
Contd…
• Expanding strategy beyond military means to include
diplomatic, financial, economic, informational, etc. means
• Examining internal in addition to external forces – taking
into account both the various instruments of power and
the internal policies necessary for their implementation
(conscription, for example)
• Including consideration of periods of peacetime in
addition to wartime.
Grand Strategy- Traditional Idea Of Strategy
Turnaround
Market development
Product development
Horizontal integration
Vertical integration
Divestiture
Concentrated growth
Concentric diversification
Conglomerate
diversification
Innovation
Liquidation
Bankruptcy
Joint ventures
Strategic alliances
Consortia.
GRAND STRATEGY
GRAND STRATEGY MATRIX
TURNAROUND• This strategy is designed to shift from a negative
direction to a positive one. This can be achieved by
restructuring the organizational operations in order to
restore the appropriate levels of profitability.
• A successful turnaround can be achieved by giving high
priority to the core business area and divesting from
diversified activities.
• Turnaround strategy means to convert, change or transform a
loss-making company into a profit-making company.
• It means to make the company profitable again.
• The main purpose of implementing a turnaround strategy is to
turn the company from a negative point to a positive one.
• If a turnaround strategy is not applied to a sick company, it will
close down.
• It is a remedy for curing industrial sickness.
CONCEPT OF TURNAROUND STRATEGY
• Turnaround is a restructuring strategy. Here, a loss-bearing
company is transformed into a profit-earning company, by
making systematic efforts.
• It tries to remove all weaknesses to help a sick company
once again become strong, stable and a profit-making
institution.
• It aids to reduce the brought forward losses of the loss-
making company.
CONCEPT OF TURNAROUND STRATEGY
• It tries to reverse the position from loss to profit, from
declining sales to increasing sales, from weakness to
strength, and from an instability to stability.
• It helps the sick company to stand once again in the market.
• It is a complete U-turn of a planned strategic economic
transition.
CONCEPT OF TURNAROUND STRATEGY
• In general, the definition of turnaround strategy can be
stated as follows.
“Turnaround strategy is a corporate practice designed and
planned to protect (save) a loss-making company and
transform it into a profit-making one.”
DEFINITION OF TURNAROUND STRATEGY
• In ACADEMIC POINT of view, its definition can be stated as
under:
• “Turnaround strategy is an analytical approach to solve the
root cause failure of a loss-making company to decide the most
crucial reasons behind its failure. Here, a long-term strategic
plan and restructuring plans are designed and implemented to
solve the issues of a sick company.”
DEFINITION
TURNAROUND PROCESS
• Some of the common features in turnaround situations are:
a. Changes in leadership
b. Redefining the company’s strategic focus.
c. Divesting or closing unwanted assets
d. Taking steps to improve the profitability
of remaining operations.
e. Making acquisitions to rebuild core operations.
FEATURES OF TURNAROUND STRATEGY
• Financial Institution, for example, some bank ‘A’ is suffering
from losses due to non-performing assets (NPA). NPA is loan
given but not yet recovered. This bank ‘A’ will follow turnaround
strategy and try to recover its loans by appointing recovery
agents.
• Manufacturing company say ‘XYZ’ is suffering from losses due to
excess idle time taken by labour to complete their jobs. The
manufacturing company ‘XYZ’ will follow turnaround strategy
to reduce labour inactivity by installing modern machines
(automation) to carry on the same work or job.
EXAMPLES
• Educational institution, for example, ‘C’ is suffering from
losses due to non-registration of students in their courses.
This institution ‘C’ will follow turnaround strategy to
reduce losses by providing facilities like e-Registration,
conducting online classes, etc. to attract students.
EXAMPLES
• Dell’s new retail business is not profitable as of now. So Dell aims
to make its retail computer business cost-effective by aligning
(reducing) manufacturing costs (cost of goods sold) with its
competitors.
• But this will be challenging since Dell does not have the same
volume in retail globally (as competitors), and therefore a smaller
fixed base to spread costs.
• Secondly, Dell’s supply chain had not exactly been designed for
mass distribution. HP uses a diversified supply chain unlike Dell’s
one supply chain approach.
Dell’s Turnaround Strategy in 2008
• Michael Dell, the founder of Dell returned as the CEO in January
2007.
• the company has a turnaround plan which it promises will yield
$3 billion in annual savings over the next three or four years.
• Dell’s plans include depending more on resellers and contract
manufacturers to cut costs and boost sales of which the consumer
personal computer business is expected to contribute more than
the current 15 percent of total revenue
The return of Michael Dell and the Turnaround Plan
1.Cutting costs:
• Cutting costs is very important because competitors like
HP use the money from profitable printers operations
and take more market risk with designing innovative
products. Moreover the prices of computers keep going
down. One can buy a Dell laptop now for less than $500.
• 2. Moving away from computers internally and
outsourcing more of its manufacturing operations:
• Dell has manufacturing facilities in Texas, North
Carolina, Tennessee, and in Malaysia, Penang, China and
Poland.
Dell’s Turnaround Strategy
• 3.Moving into indirect sales channels like computer
resellers and retailers.
• 4.Introducing more products:
New product introduction is vital since major PC
manufacturers realistically only make money in the first
three months (or six in some cases) of a new product.
Dell’s Turnaround Strategy
MARKETING Strategies
WHAT ARE MARKETING
STRATEGIES?
Marketing strategies are a process of using
the marketing mix to satisfy and attract
consumers to make a profit for the
organization.
MARKETING Strategies
• link between corporate goals and operational tactics
MARKETING STRATEGY
There are two primary considerations in marketing
strategy
– Where are we?
– Where do we want to go ?
A marketing strategy can serve as the
foundation of a marketing plan.
A marketing plan contains a set of specific
actions required to successfully implement
a marketing strategy
• A market development strategy involves selling your
existing products into new markets.
• Market development strategy entails expanding the
potential market through new users or new uses.
• There are a variety of ways that this strategy can be
achieved.
Contd…
1.New geographical markets
This could involve expanding outside of your region or
selling to a new country or a new continent.
The element of risk in adopting this strategy will depend
on whether or not you can use your established sales
channels in the new market.
MARKET DEVELOPMENT STRATEGIES
• New product dimensions or packaging
Your organization may simply want to repackage your product so
that it can open up a whole new market.
• If a company that sold industrial cleaning products in 20-liter
containers could break into the domestic market by repackaging in
smaller quantities and developing a suitable brand image.
• If you are responsible for packaging or production of the product
you will be required to look at the new costs involved with these
changes and new markets requirements and alter the marketing
messages so that they are appropriate to that country’s culture.
MARKET DEVELOPMENT STRATEGIES
• New distribution channels
Many companies have transformed themselves from high street
retailers into Internet retailers.
• As a manager you could be expected to outline the internal and
financial implications of such a change.
• Senior management would be looking for you to provide the details
of how to make this approach a success.
• This could include the training needs of employees so that they have
the skills to fulfill Internet orders, whether they are taking incoming
calls or processing online orders.
MARKET DEVELOPMENT STRATEGIES
• Different pricing policies to create a new market segment
The important aspect of this approach is whether or not
current users can easily alter their purchases to take
advantage of the new market pricing.
• A good example of how to protect your existing market
whilst developing a new one is Adobe Photoshop.
• It protected its price difference of hundreds of dollars of
its original professional product by offering a reduced
‘home’ version that had a restricted set of functions.
MARKET DEVELOPMENT STRATEGIES
• Whilst there are similarities between the first two
strategies, market development involves a greater degree
of uncertainty, risk, and financial commitment.
Contd…
• NEON basically doubled its market potential was when it
abandoned its initial feminine positioning (the "Hi!"
campaign) and expanded their target market to include
men. If Neon further expanded into fleet sales, this would
be an example of a new institutional segment adding to
market potential.
• The VOLKSWAGEN Beetle is increasing its market
potential by making its newest version more masculine
EXAMPLES
• EVIAN placed their bottled water in both the regular and health
sections of grocery stores. This expanded their market potential by
appealing to different psychographic segments—in effect
broadening their target market to include regular water drinkers
and health-seeking water drinkers (who perhaps before bought
specific heath drinks).
• MICA is a mineral that was originally used in industrial products.
But today it's found in everything from pearlescent automobiles to
sparkly cosmetics. So each producer of mica has expanded their
market potential by finding new uses for the product.
EXAMPLES
• Wal-Mart—three years after entering the Japanese market—was
losing money.
• They followed the same low-price strategy on lower-end products
that was so successful in the US.
• But Japanese consumers were not interested in low-end products
which they equated with low quality.
• So Wal-Mart plans to add more upscale products to their stores in
Japan.
• Wal-Mart said that they were "surprised" by the preferences of
the Japanese consumer. With a properly-executed market
development strategy there would be no such surprises
DANGER OF MARKET DEVELOPMENT
