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Business Strategy

Business Strategy

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Published by suvoanupam364
business models
business models

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Published by: suvoanupam364 on Aug 29, 2010
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10/05/2015

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The only thing constant in today's business environment is
The only thing constant in today's business environment is
change. Radical change brings about strategic variety. Strategic

change. Radical change brings about strategic variety. Strategic
variety may be caused by changes in the as external well as

variety may be caused by changes in the as external well as
internal environment.

internal environment.
Strategic variety brings paradigm shift, from survival of the
Strategic variety brings paradigm shift, from survival of the
fittest

fittest ....... to survival of the most adaptable.
....... to survival of the most adaptable.
To adapt to the changing environment, firms use
To adapt to the changing environment, firms use restructuring
restructuring

strategies.

strategies.
Restructuring involves
Restructuring involves consciously

consciously driving

driving significant

significant changes in
changes in

the way an organizations

the way an organizations thinks

thinks and

and looks (Eg. Tata Group).
looks (Eg. Tata Group).

As Peter Drucker pointed out,
As Peter Drucker pointed out, “every organization must be
“every organization must be

prepared to abandon everything it does.”

prepared to abandon everything it does.”

198

198

RESTRUCTURING – BASIC TENETS

RESTRUCTURING – BASIC TENETS

Customer Focus –
Customer Focus – Restructuring ideally begins and
Restructuring ideally begins and
ends with the customer. Company’s should go

ends with the customer. Company’s should go
beyond just asking what he expects. Instead, they

beyond just asking what he expects. Instead, they
should strive to provide unimaginable value ahead of

should strive to provide unimaginable value ahead of
its time

its time (Eg. Walkman, Fax, ATM, etc).
(Eg. Walkman, Fax, ATM, etc). Internal
Internal

customers should also not be neglected.

customers should also not be neglected.
Core Business –
Core Business – Company’s should introspect – What
Company’s should introspect – What
business are we in? Business evolved out of

business are we in? Business evolved out of
opportunism or myopia should be divested, and

opportunism or myopia should be divested, and
dividing the core businesses into SBU’s

dividing the core businesses into SBU’s (i.e. down-
(i.e. down-

scoping).

scoping).
Structural Changes –
Structural Changes – Conventional hierarchical
Conventional hierarchical
structures should be disbanded in favour of more

structures should be disbanded in favour of more
flexible ones

flexible ones (i.e. downsizing or rightsizing).
(i.e. downsizing or rightsizing).

199

199

RESTRUCTURING – BASIC TENETS

RESTRUCTURING – BASIC TENETS

Cultural Changes –
Cultural Changes – A culture represents the values and beliefs
A culture represents the values and beliefs
of the people about the organization. Restructuring also

of the people about the organization. Restructuring also
requires cultural reorientation. It is created and institutionalized

requires cultural reorientation. It is created and institutionalized
by the top management.

by the top management.
During the times of
During the times of JRD, the Tatas

JRD, the Tatas were considered a
were considered a

benevolent and charitable organization,

benevolent and charitable organization, .....

..... Ratan Tata now
Ratan Tata now

drives the point the group means business.)

drives the point the group means business.)

Reliance

Reliance dismantled their industrial embassies
dismantled their industrial embassies .....

..... started
started

focusing on their capabilities.)

focusing on their capabilities.)

The

The Aditya Birla

Aditya Birla group typically relied on the “marwari”
group typically relied on the “marwari”
community for key management positions

community for key management positions .....

..... Kumar Birla
Kumar Birla

today is more dependent on professionals.

today is more dependent on professionals.

MOVING CLOSER TO THE CUSTOMER

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