Strategic Management For Intrapreneurs

STRATEGIC MANAGEMENT FOR
INTRAPRENEURS
by :
DR. T.K. JAIN
AFTERSCHO☺OL
centre for social entrepreneurship
sivakamu veterinary hospital road
bikaner 334001 rajasthan, india
FOR – CSE & PGPSE STUDENTS
(CSE & PGPSE are free online programmes
open for all, free for all)
mobile : 91+9414430763
5 DECEMBER 09 www.afterschool.tk 1
My word.....
My purpose here is to give a few ideas about strategic

management for intrapraneurs. Read a lot. Be an
intrepreneur, change the society, change the world. Go
with positive spirit. Please pass this presentation to all
those who might need it. Let us spread knowledge as
widely as possible. I welcome your suggestions. I also
request you to help me in spreading social
entrepreneurship across the globe – for which I need
support of you people – not of any VIP. With your help, I
can spread the ideas – for which we stand....
WHAT IS STRATEGY ?
Strategy is a unified comprehensive course of

action which you plan for achieving your
objectives considering the business
environment, your resources and your
capabilities.
Strategy is for long term and enables you to
achieve your goals.
What are the types of strategies?
There are 3 levels of strategy :

1 corporate level
2. business level
3. functional level
Corporate level strategies
It is framed at corporate level.

If you are working in a group, there are many
units in that group, you have to formulate
strategy for the group as a whole.
Business level strategy
It is formulated at each unit level (SBU level)

SBU = strategic business unit
there may be different strategy in corporate
level and business level.
For example : you may go for expansion in
corporate strategy, but may go for
retrenchment of an individual unit (which
might not be growing).
Functional level strategy ?
It is formulated at functional level.

Here we are looking at the functions of the
organisation and define each functional
objectives and strategies :
for example : for marketing deparment, the
strategy may be to get highest market share
for finance department : the strategy may be to
have highest ROI.
What are the grand strategies ?
There are 4 types of generic strategies :

1. expand
2. diversify
3. stability
4. mix of above three strategies
Porter's classification of strategies
There are three types of strategies :

1. focus
2. differentiation
3. cost leadership
What is FOCUS ?
Focus on niche market / small segment of

market
put all your efforts to develop the services of
this small market segment
example : Mercedes / BMW focus on
premium segment
What is differentiation ?
Differentiate your products from your

competitors
example : Dettol is better germ killer than other
soaps in the market
What is mission of the
organisation?
The ultimate goal is the mission of the

organisation. Mission is defined in terms of the
ultimate services the company wants to fulfill.
It is similar to purpose.
Example : Apollo hospital has the mission of
providing good quality health care facilities to
people
What is vision ?
Where do you want to see your organisation

after 5 / 10 / 15 years.
Vision means what you visualise for your
organisation in the long term.
Vision is defined in terms of the future status
of the organisation.
What is the objective of the
organisation?
The end state that the organisation wants to

achieve in the long term is called objective of
the organisation.
Example : After 10 years, Tata Motors want to
be the number one commercial vehicle maker
in the world.
What is strategic Intent?
Intent = desire / aspiration / dreams

no progress without DREAMS
here we want concrete, well defined, written
and realistic dreams.
These dreams are spelled out in terms of
objectives, goals, mission, vision and purpose.
Thus Strategic Intent includes all the terms that
we have discussed so far.
What are steps in strategy
formulation ?
Formulate your mission / purpose
undertake environmental analysis
undertake analysis of competitors, industry scenario
and identify your competencies
look into different strategic choices for you
select the best strategy
decide about strategy, objectives
formulate implementation plan
review your strategies and your progress.
How to undertake environmental
analysis ?
There are two environments :

external and internal
you have to undertake thorough PEST
Analysis for external environment.
What is PEST ?
Political
Economical
social
Technological environment
study the trends, processes, and directions so
that you may formulate appropriate strategy
What is SWOT?
S= strengths
W= Weakness
O = Opportunity
T=Threat
It is also called TOWS matrix
prepare this so that you know about your
external environment
What is SAP?
Her SAP =Strategic Advantage Profile

Here we prepare a profile about how our
company is superior in comparison to other
companies. Here we are looking at the
environmental aspects and preparing the
strategy which can relate our strengths to our
opportunities. It enables us to focus on our
competencies (strenghts) and how to use them.
What is crucial in behavioural
implementation of strategy?
People must understand, imbibe and follow the

strategy.
For this, change the leadership style, culture,
and overall environment in the company.
What are the most popular options
?
INTEGRATION AND DIFFERENTIATION
(these are not mathematics terms here).
Integrate = connect yourself well with your suppliers,
customers and entire value chain
Differentiate = identify how you are different from
your competitors and how you can be superior in
delivering products / services in comparison to your
competitors. Try to see that this differentiation is clear
to your customers also (not just to you alone in this
world).
How to set objectives?
Involve people in strategy objective

formulation
ensure that people set their own objectives and
become responsible for achieving them.
The objectives should be concrete, verifiable,
reviewable, practical, and achievable.
The objectives should be written down in
BOLD.
objectives...
We follow multiple objectives

we follow a hierarchy of objectives (with clear
priorities)
the objectives give us direction that we need.
Objectives should be understandable, time
bound, clear, and expressed in terms of
achievable deadlines.
What is turnaround ?
Converting sick unit into a profitable unit is

called turnaround.
Turnaround strategy focuses on cost reduction,
process improvement, better networking etc.
How do you undertake strategic
analysis ?
Undertake PESTLE analysis

undertake PORTER'S 5 forces analysis
undertake MCKINSEY 7 S analysis
undertake SWOT (or TOWS) analysis
generate strategic ALTERNATIVES
other tools
PORTER'S 5 FORCES
1. Suppliers
2. customers
3. substitute products
4. potential entrants
5. competitors
A CLOSE STUDY OF ALL THESE FORCES
WILL HELP YOU IN FORMULATING
YOUR STRATEGIES
BARGAINING
Suppliers, customers, have bargaining power. Porter's

model presents us an analytical perspective. If you
working in large scale, you have advantage. If you
have good network with suppliers, you have
advantage. It is also important to study the switching
cost of these parties – if they want to switch over to
new parties. Before formulating your strategy, you
have to understand your 5 forces, so that later you
dont face any problem.
How to undertake internal
resource analysis ?
List down all internal resources

identify your unique capabilities, competencies
and your superior delivery methods.
Identify your CSF (critical success factors)
undertake VALUE CHAIN ANALYSIS
use BALANCED SCORECARD ANALYSIS
What is CSF?
Every business requires some key capabilities

for its success. Identify the capabilities that you
have and which can enable you to succeed in
the business.
Example : heritage hotels in Bikaner are
successful due to their unique looks,folk art,
cultural symbols, art and craft.
Some examples of CSF ?
Better organisational culture

Lower employee turnover
Lower production cost
Better quality
Locational factors (like Bhujia of Bikaner)
Better training of employees
Younger staff
What is Value Chain Analysis ?
Identify the value chain in each product.

Identify the contribution of each element in the
value chain. Value chain = the complete chain
of intermediaries from origin to consumption.
Example : for carpets – the value chain starts
from sheep rearers, wool traders, and includes
thread makers, carpet weavers, marketers and
ends at the last retail store that sells the carpet.
Example of value chain analysis
Look at Bikaji = leader in Bhujia and Sweet
industry from Bikaner
look at their inbound logistics (wherefrom they
procure raw material)
how do they process the raw material
look at their outbound logistics (whom they
supply)
how do their marketing / distribution
department work ?
What is balanced score card?
There are 4 factors in balanced scorecard :
1. Financial component = contribution in
terms of profitability
2. Organisational component : = leadership,
innovation, change management
3. Customers = new customers added, and
services to existing customers
4. operations = product development /
improvement etc.
Benchmarking
It is also a good tool for study of the
organisational processes. Compare your
processes with an icon. You can set your
performance standards and try to achieve those
standards.
Example : an MNC benchmarked itself with
SEWA in terms of commitment of employees
and dedication. It was very successful in its
efforts.
How to undertake benchmarking?
It requires top management support

there must be agreement between the two
companies
benchmarking involves sharing, ideas and
opinoions
employees must be willing to learn and change.
Other methods....
There are many other methods like :
qualitative assessment – find overall feel of
employees, capture their subjective assessments
try to identify the sentiments of employees and frame
objectives and strategies, which can involve
employees
undertake surveys, identify the gaps.
Use tools like OD interventions, identify the areas
where you can develop the organisations.
How to undertake SWOT ?
Identify your strengths – note it down – relate

it to the opportunities
identify your weaknesses – try to develop your
capabilities in these sectors
opportunities – undertake brainstorming, look
for untapped potential, identify hidden
opportunities
threats – explore them and prepare for them.
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http://www.esnips.com/web/entrepreneurship-article
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http://www.scribd.com/doc/13094880/Economics-A
http://www.scribd.com/doc/23407782/26-july-Econ
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STRATEGIC MANAGEMENT FOR

My purpose here is to give a few ideas about strategic

Strategy is a unified comprehensive course of

There are 3 levels of strategy :

It is framed at corporate level.

It is formulated at each unit level (SBU level)

It is formulated at functional level.

There are 4 types of generic strategies :

There are three types of strategies :

Focus on niche market / small segment of

Differentiate your products from your

The ultimate goal is the mission of the

Where do you want to see your organisation

The end state that the organisation wants to

Intent = desire / aspiration / dreams

There are two environments :

Her SAP =Strategic Advantage Profile

People must understand, imbibe and follow the

Involve people in strategy objective

We follow multiple objectives

Converting sick unit into a profitable unit is

Undertake PESTLE analysis

Suppliers, customers, have bargaining power. Porter's

List down all internal resources

Every business requires some key capabilities

Better organisational culture

Identify the value chain in each product.

It requires top management support

Identify your strengths – note it down – relate

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