Integrative Manager: Introduction To Operations & Lessons Thorough Case Study

Integrative Manager:
Introduction to Operations
& Lessons thorough Case
Study
Dr. Chandravadan
Component GDP by component (2020-21)
Household consumption: 60.80%
Government consumption: 12.10%
Investment in fixed capital: 26.60%

Other source: 0.90%
Exports of goods and
services: 18.70%
Imports of goods and
services: −19.1%
Terms:
• TAKT time: Takt time is the rate at which you need to complete a
product to meet customer demand.
• Lead time: The time between the initiation and completion of a
production process.
• Manufacturing cycle time: Manufacturing cycle time is the total time
taken to convert raw materials into finished goods. This includes
loading time, machining and assembly time, inspection time, material
movement, idle waiting time, and the time taken for all other actions
during the manufacture of finished goods.
• TAT : Turnaround time (TAT) is the time interval from the time
of submission of a process to the time of the completion of the
process.
What is Strategy?
• Large-scale, future-oriented plan for interacting with the competitive

environment to achieve objectives
• Company’s “game plan”
• Framework for managerial decisions
• Strategies are made to achieve objectives
• Strategies will fulfill the gap between what we are and what we want
to be.
Eg. Reliance Jio started working on 2010 and come in market 2016-17: Cheaper Rate with better
quality, apple niche market, OPPO Vivo : marketing, Coca cola: 5 rupee bottle
Case Study : Indigo Airline
• Case Study 1: Indigo Airline Strategy 2022
• Turn Around Time Video showing Operations excellence
Indigo Aircraft Orders: Long Term Plans
Duration Aircraft Type Ordered Order Value (US$)
Jun 2005; Paris Air
Show Airbus A320-200 100 6B
11-Jan-11 Airbus A320neo 150+30 15B
15 October 2014 Airbus A320neo 250 25.7B
A320neo, A321neo
and A321XLR (Extra
Oct-19 Long Range) 300 33B
Dubai, 14 November 2021 – Wizz Air (Hungary), Frontier (United States), Volaris (Mexico) and JetSMART (Chile, Argentina),
Indigo Partners portfolio airlines, have announced an order for 255 additional A321neo Family aircraft under a joint Indigo Partners
agreement. The firm order was signed at the Dubai Airshow. This order brings the total number of aircraft ordered by the Indigo
Partners’ airlines to 1,145 A320 Family aircraft.
Mid 2006 1 Aircraft Received

2012 50th Aircraft Received
04-Nov-14 100th Aircraft Received
Mar-16 1st A320 Neo Received
100th A320neo aircraft
10-Oct-19 Received
• Heavy maintenance
happens every 18 months to
six years depending on the
aircraft type and age.
• The C Check
• Happens every 18 months to
two years (depending on
type of aircraft) and takes
three weeks.
• The D Check
• This is also known as a C4 or
C8 check depending on the
aircraft type. This check is
performed every six years
and the entire aircraft is
basically dismantled and put
back together.
Leveraging Power by Hour (PBH)
agreements for better
operational efficiencies
PBH widely known as Power by Hour or Pay
By hour is an agreement between the
Operator and the Suppliers. The supplier
agrees to provide definite number of spares
either at the operator facility or at common
forward stocking locations, and, the operator
pays the dues based on Aircraft utilization.
The operator benefits by not owning the item,
thereby, reducing the inventory cost and
likewise meets the desired service levels
required for operations.
right of first refusal (ROFR)
At Inception, IndiGo hit the ground — well, skies if you may — running with an
order for 100 Airbus320 aircraft in 2005. It ordered another 180 planes in 2011.
Then came an order for 250 more planes with options for another 100 in 2014.
And now it has placed an order for another 300 A320s (including variants)
•
With IndiGo’s latest shopping trip for 300
Airbus planes, India’s airlines collectively have
1,200+ aircraft on order — more than double
the existing Indian commercial aviation fleet.
• In a sale and leaseback model (SLB), an airline
acquires the aircraft at an attractive price and
sells the aircraft to a lessor — ideally at a profit
— and leases it back for its own use.
• The massive order volumes enable IndiGo to
acquire aircraft at very competitive costs.
Summary - Operational Efficiency
• Only Economy Class: 180 Passengers / Aircraft for A320
• No IFE & Complimentary Meals
• Quick Turn-Around Time
• PBH Contracts
• High Aircraft Utilization in Number of Hours: 11.5hrs/day
• Optimize Flight Planning to save Fuel
• A320NEO & A321NEO Induction
Thank you
STRATEGY
• A plan of action designed to achieve a long-term or overall
aim.
• Synonyms: master plan, grand design, game plan, plan of

action, plan, policy, proposed action, scheme, blueprint,
program, procedure, approach, schedule; more
• The art of planning and directing overall military operations

and movements in a war or battle.
• Synonyms: the art of war, military science, military tactics;

generalship
STRATEGY
• Making clear cut choices about how to compete – Jack
Welch
• How to attract & retain customers
• How to compete against rivals
• How to position the company in the marketplace
• How to respond to changes in the economy & market
dynamics
• How to capitalise on new opportunities
• How to achieve company’s performance targets
STRATEGY
Audit Current Where Define Vision

Performance Are We Mission
How Do We Now
Know We where do
Have we want
Arrived to be
Design How Do
We Get Develop
Controls
There Strategy
STRATEGY
• Strategy provides directions & guidance about not only
what the company should DO but also what the company
should NOT DO.
• Strategy should deliver Sustainable (long term, durable)

Competitive Advantage.
• Strategy should be a blend of PROACTIVE & REACTIVE (ratio

may change).
Strategy & Business Model
Value proposition Resources

Product / service People / technology
Profit Processes
Utilization of assets / Ways of operations
Profits
STRATEGY
• Business Strategy is the strategy framed by the business
managers to strengthen the overall performance of the
enterprise.
• Corporate Strategy is stated in the mission statement,

which explains the business type and goal of the firm.
STRATEGY HIERARCHY
Corporate Strategy (managing a set of business)
↓
Business Strategy (gain & sustain competitive
advantage for a single line of business)
↓
Functional area Strategy (managing a particular
activity within a business)
↓
Operating Strategies (managing activities of
strategic significance within each functional area)
Two Aspects Of Company’s
Business Model
• Value Proposition
From a customer perspective the grater the value V & lower
the price P (V-P) better the Value proposition
• Profit Proposition
Lower the cost C given Value proposition V-P the business
model is a better money maker
GOOD STRATEGY + GOOD STRATEGY EXECUTION = GOOD
MANAGEMENT
EXECUTING STRATEGY
• Staffing the organization
• Developing & strengthening strategy supporting
resources & capabilities
• Creating strategy supporting structure
• Ensuring policy & procedure support strategy
• MIS systems
• Motivation & work culture
• Internal leadership
Sun Tzu was a Chinese general, military
strategist, writer, and philosopher who lived in
the Eastern Zhou period of ancient China.
Sun Tzu’s “the Art of War”
• War is a matter of vital importance to the State
• Warfare is based on deception
• Speedy victory is the main object in war
• Generally best policy is to take state intact
• Art of using troops
10 to enemy’s 1 – surround him
5 to 1 – attack him
2 to 1 – divide him
1 to 1 – engage him with some good plan
If weaker – be capable of withdrawing
If totally unequal – elude him
• Know your enemy & yourself – you’ll always win
Ignorant of enemy but know yourself 50/50 chances of win
Ignorant of both yourself & enemy – sure to lose
• He who occupies the field of battle first & awaits his
enemy is always at ease, whereas he who come later
to the battle & rushes in is weary
• Analyse the enemy’s plan so that you know his
shortcomings as well as his strong points
Agitate him to know the patterns of his movements
Lure him out to disclose his dispositions & position
Launch a probing attack to know where he is strong &
where weak
• An army may be likened to flowing water – avoids
heights, floods lowlands – avoid strength of enemy,
strike weakness of enemy -avoid constant form,
modify tactics
• If you decide to go into battle DO NOT announce
your intentions
• Unskilled leaders work out their conflicts in
courtrooms & battle fields – brilliant strategists
achieve their objectives through tactical positioning
in advance of confrontation
• When you decide to confront an army (or
company) much calculating, analysing,
positioning required – absence will mean defeat
• Skilful leaders DO NOT let Strategy inhibit creative
counter movement
• When decisive advantage is gained over the rival
skilful leader does not press on – give their
opponent a chance to surrender or merge
• Brilliant strategists forge ahead with illusions so
that opponents divide their forces to defend
several areas of confrontations
• Vision
• Mission
• Values
• Credo
Vision & Mission
• Which comes first?
• For a new start up business, new program or plan to re-
engineer your current services, the Vision statement will
be formulated first as it will guide the Mission statement
and the rest of the strategic plan.
• For an established business where the Mission is

established, often the mission guides the vision
statement and the rest of the strategic plan for the
future.
Our Vision
Our Mission
• Focus on inventive education by offering practical, innovative
and technology driven programs.
• Provide Managerial talent with risk managing ability, passion
for learning and creative thinking and values in rapidly
evolving economic and social environment.
• Contribute significantly to Indian corporate world by preparing
management graduates with global mindset.
• Build intellectual capital through faculty development,
research, consultancy and publication.
• Develop Alumni network of mutual benefit and keep alumni
update through continuous learning and meeting
• From Disney's "to make people happy" to Instagram's
"capture and share the world's moments," well-crafted
Vision statements reveal, at the highest levels, what an
organization most hopes to be and achieve in the long
term.
• "It serves a somewhat lofty purpose – to harness all the
company's foresight into one impactful statement."
Vision Mission
• A Vision statement provides a concrete way for
stakeholders, especially employees, to understand the
meaning and purpose of your business.
• Research shows that employees who find their

company's Vision meaningful have engagement levels of
68 percent, i.e. 8 points above average. More engaged
employees are often more productive, and they are
more effective corporate ambassadors in the larger
community.
Vision Statement Vs. Mission Statement
Before determining, what your Vision statement is,

you need to understand what it is not.
It should not be confused with a Mission statement.
Vision Statement Vs. Mission Statement
Vision Mission
Vision statements are future-based and Mission statement are present-based
meant to inspire and give direction to and designed to convey a sense of why
employees of the company rather than the company exists to both members of
customers. the company and the external
community.
"Your Vision statement is where your "Your Mission statement is your

company is going – it's all about your company's reason for being – it's all
future." about what you're doing right now,"
A vision statement is created through a "A company’s Mission, purpose, goals

series of workshops with key and values are all involved in the
stakeholders who represent a cross- creation of a company Vision,"
section of the organization.
A Vision is aspiration. A Mission is actionable.
What to keep in mind when
formalizing a Vision statement:
• Project five to 10 years in the future.
• Dream big and focus on success.
• Use the present tense.
• Use clear, concise and jargon-free language.
• Infuse it with passion and emotion.
• Align it with business values and goals.

What to keep in mind when
formalizing a Vision statement:
• Have a plan to communicate the vision statement to
employees.
• Be prepared to commit time and resources to the vision
established.
• Completed vision statement should give employees a
clear idea of the company's path forward.
• Then it's up to the company to nurture and support that
vision and to inspire the employees to do the same.
Vision to Action
• Research – Trend, leading to Pioneering Programs
• Curriculum Design & Improvement
• Pedagogical innovations
• Education on Design Thinking and Innovation
• Contribution to Industry & Society

Credo
Credo is a Latin word meaning "a set of fundamental
beliefs or a guiding principle."
For a company, a credo is equivalent to a Mission

statement.
Values
Values of a company, sometimes called Core Values are
the Beliefs / Traits / Behavioural norms that
Management has determined should guide the pursuit
of it’s Vision & Mission
WeSchool
Core Values
• Passion
• Breakthrough thinking & breakthrough execution
• Result oriented process driven work ethic
• We link & care

Vision as a slogan
• Henry Ford: “a car in every garage”
• Levy Strauss: “we will clothe the world by marketing the

most appealing& widely worn casual clothing in the
world”
• Nike: “to bring innovation & inspiration to every athlete

in the world”
• Mayo Clinic: “the best care to every patient every day”

Vision & Mission Statements
• Infosys Vision Statement:
"To be a globally respected corporation that provides best-
of-breed business solutions, leveraging technology,
delivered by best-in-class people."
• Infosys Mission Statement :
"To achieve our objectives in an environment of fairness,
honesty, and courtesy towards our clients, employees,
vendors and society at large."
Examples of Vision and Mission
statements
• What do great vision and mission statements
look like?
• Here are some companies that get them
right.
• And, they have the customer loyalty to prove
it.
Vision and Mission Statements
• Vision: To create the most compelling car company of the

21st century by driving the world’s transition to electric
vehicles.
• Mission: To accelerate the world’s transition to

sustainable energy.
• Vision: To be Earth’s most customer-centric company,
where customers can find and discover anything they
might want to buy online.
• Mission: We strive to offer our customers the lowest

possible prices, the best available selection, and the
utmost convenience.
• Vision: To create economic opportunity for
every member of the global workforce.
• Mission: To connect the world’s professionals

to make them more productive and
successful.
• Vision: To provide access to the world’s
information in one click.
• Mission: To organize the world’s information and

make it universally accessible and useful.
• Vision: Smarter transportation with fewer cars and greater
access. Transportation that’s safer, cheaper, and more
reliable; transportation that creates more job
opportunities and higher incomes for drivers.
• Mission: Transportation as reliable as running water,

everywhere for everyone.
• Vision: Tapping into the universal human yearning to

belong — the desire to feel welcomed, respected,
and appreciated for who you are, no matter where
you might be.
• Mission: Belong anywhere.

• Vision: If it is smart and connected, it is best
with Intel.
• Mission: Utilize the power of Moore’s Law to bring

smart, connected devices to every person on earth.
• Vision: Ferrari, Italian Excellence that makes the world
dream.
• Mission: We build cars, symbols of Italian excellence the

world over, and we do so to win on both road and track.
Unique creations that fuel the Prancing Horse legend and
generate a “World of Dreams and Emotions”.
• Vision: To be the most successful and respected car
company in America.
• Mission: To attract and attain customers with high-

valued products and services and the most satisfying
ownership experience in America.
• Vision: Inspire the world. Create the future.
• Mission: Become one of the world’s top five

brands by 2020.
• Vision: To create a better everyday life for the

many people.
• Mission: Offer a wide range of well-designed,
functional home furnishing products at prices so
low that as many people as possible will be able
to afford them.
• Vision: To become the world’s most loved, most
flown, and most profitable airline.
• Mission: The mission of Southwest Airlines is
dedication to the highest quality of customer
service delivered with a sense of warmth,
friendliness, individual pride, and company spirit.
• Vision: People use Facebook to stay connected with

friends and family, to discover what’s going on in the
world, and to share and express what matters to
them.
• Mission: To give people the power to build

community and bring the world closer together.
Some terms
• Authority
• Line of command
• Organization (structure / staffing)
• Targets
• Efficiency / Effectiveness
• Design thinking innovation
• Responsibility / Accountability / Delegation
LEADERSHIP
MANAGEMENT
Leaders – Managers
Leaders
• Vision
• Direction
• Long, long term
• Always with people (proximate / remote)
Managers
• Efficient / effective
• Productivity / costs
• Short & mid term
• Resources (men, material, money, machines, methods)
Leaders – Managers (William Arruda)
LEADERS MANAGERS
Create a vision Create goals
Change agents Maintain the status quo
Unique Copy
Take risks Control risk
Are in it for the long haul Think short-term
Grow personally Rely on existing, proven skills
Build relationships Build systems and processes
Coach Managers direct
Create fans Have employees
More of DESIGN THINKING More of INNOVATION
Environmental scanning
PESTLE analysis
Framework / tool used by marketers / planners to
analyze and monitor
• The macro-environmental (external marketing

environment) factors that have an impact on
An organisation.
• The result of which is used to identify threats and

weaknesses used in a swot analysis.
Political
• Politics plays a key role in business.
• Controlled markets vs Free markets.
• As global economics surpasses domestic economies,
companies must consider several opportunities and
threats before expanding into new regions.
• It also applies to firms identifying areas / locations
for production &/or sales.
• Political factors may even help decide the location of
corporate headquarters of a multinational company
Economic
• Economic factors are metrics that measure the
health of any economic region.
• Economic state will change a lot of times during a
firm’s lifetime.
• One should compare current levels of inflation,
unemployment, economic growth, and international
trade. Helps in improving strategic plan
• economic indicators like exchange rates, GDP and
inflation are critical to strategy formulations.
• When is a good time to borrow.
• How an economy might react to certain changes.
Social
• Assess the mentality of the individuals or consumers in
each market.
• Demographic factors.
• Changes taking place in the social space
• Urbanisation
• Family sizes & structures
• Habits
• Trends in behaviour patterns
Technological
• Assess potential technologies available.
• Technological advancements can optimize internal
efficiency and help a
• product or service from becoming technologically
obsolete.
• Role of technology in business is increasing & this trend
will continue because R&D drives new innovations.
• Recognizing evolving technologies to optimize internal
efficiency is a great asset in management.
• These can be threats also. Disruptive innovations can
severely impact existing business models e.g. Netflix
affecting CD-players.
• Hence one must adapt to the changes., by sidestepping
threats and embracing opportunities
Environmental
• Consumers / governments penalize firms for causing
adverse effect on the environment.
• Governments levy fines upon companies for polluting.
• Companies are also rewarded for having
positive impact on the environment.
• Consumers reject brands if they find manufacturers

ignoring their its ennvironmental duties
Legal
• Legal Factors are critical for avoiding
unnecessary legal costs
• New legislations need scrutiny & adherence
• New legislations may open up opportunities
• “Ignorantia juris non excusat” non knowledge of the

law is no excuse
PESTLE analysis
The Indian Automobile

Industry
Political
• Solid democratic setup
• Government support through PLI
• Some States Industry friendly
• Ease of doing business
• Make in India focus
• Focus on Elections 2019

Economic
• Emergence as manufacturing hub of small cars
• Growing domestic car sales
• Weak Indian Rupee
• Increase in Interest rate

Social-cultural
• Burgeoning middle class
• Urbanization
• Composition of population
• Increasing aspiration level

Technological
• Increasing R&D spend by car manufacturers
• Large pool of semiskilled and skilled workers

available
• Lower cost advantage
• Robotics / AI / ML
Legal
• Value Added Tax to Goods and Services Tax regime
• Outdated Labour laws
• Recent amendments to Company Law
• Undue delay in judicial system
• Registration
• Insurance
Environmental
• Communal clashes
• Terror attacks
• Labour unrest
• Consciousness about environment
• Sustainability
Conclusion
• Economic, socio-cultural and technological
environments are favourable for car manufacturers
in India, with most of the developments in those
environments having a positive impact on the sector
• Political environment can be labelled as neutral as it
has both positive and negative developments
• Environmental and legal developments are not
favourable to car manufacturing
Michael Porter
• Value chain
• Five forces
• Generic strategies
• Diamond model
Porter Value Chain
Porter 5 Force Model
Porter’s 5 forces
Tony Grundy in his book, Breakthrough
Strategies for Growth: Delivering Sustainable
Corporate Expansion
Porter’s 5 forces + 2
Industry Mindset
• Tony Grundy “Breakthrough Strategies for Growth”:
explored – Industry Mindset as an additional force
• Industry mindset applies both in the for-profit and non-profit
sectors.
• Refers to the perceptions, expectations and assumptions
about the competitive environment, the level of financial
returns and the factors critical for success in an industry.
Industry mindset is, on one level, easy to discern by reading
trade press and going to conferences.
• For example, the industry mindset in the computer industry is
that people expect the speed of personal computers to
double every 18 months. This leads many people to replace
computers every two years, or more often.
Porter’s 5 forces + 2
Scenario Planning & Visualization
• Herb Rubenstein, President, Sustainable Business
Group
• Scenario planning and visualization though different
tools, can be combined as they fit together so well.
• Used extensively by Royal Dutch Shell
• It is the simple to sophisticated use of “what if”
questions. These questions allow you to develop a
set of futuristic pictures and planned behaviors
designed to achieve certain objectives.
Rivalry amongst competing
sellers
Rivalry is stronger:
• Demand is slow
• Cost of brand switching is low
• Products in category are less differentiated &
commodities
• Firms have high fixed costs & or high storage costs
• Competitors are numerous
• Competitors are of equal size & competitive strengths
• Rivals have diverse objectives / strategies / countries of
origin
• Rivals face high exit barriers
Rivalry amongst competing
sellers
Rivalry is weaker:
• Demand is growing rapidly
• Buyers’ cost to switch brands are high
• Rival products are strongly differentiated /
customer loyalty is high
• Fixed & storage costs are low
• Sales are concentrated amongst a few large sellers
• Rivals are dissimilar in size / strengths / objectives /
strategy / country of origin
• Exit barriers are low
Weapons to fight
• Price discounting / couponing / advertising SALES
• Innovating to improve product performance
• Introducing new / improved features
• Increasing customization of products
• Building better / improved dealer network
• Improving warranties
• Offering low interest finance
Risk of new entrants
Entry threats stronger:
• Entry barriers are low
• Industry members are unwilling or unorganised to
fight new entrants
• Large pool of new entrants -some of whom willing to
incur high costs
• Existing members are wanting to expand into new
markets / variants
• Buyer demand is growing rapidly
Risk of new entrants
Entry threats weaker:
• Entry barriers are high since existing players enjoy
cost advantage due to economies of scale, learning
curve benefits, absorption of fixed costs, improved
technology
• Strong product differentiation / brand loyalty
• High capital requirements
• Restrictive government policies
• Industry members are organised & resist new
entrants
• Industry outlook risky & uncertain
Pressure from suppliers
Suppliers bargaining POWER STRONGER:
• Suppliers’ products / services in short supply
• Suppliers’ products / services differentiated
• Industry members incur high costs to switch suppliers
• Suppliers market is organised & dominated by few
players
• Industry’s requirements account for a small portion of
suppliers’ products / services
• Industry members can’t easily integrate backwards
• There are no good substitutes for products / services of
suppliers
• Suppliers are not over dependent on industry
Pressure from suppliers
Suppliers bargaining POWER WEAKER:
• There is a surge in availability of supplies
• Items supplied are commodities
• Industry’s switching costs to other suppliers are low
• Members contribute to large fraction of suppliers’ sales
• Number of suppliers are large in comparison to members
• Industry’s requirements account for a large portion of
suppliers’ products / services
• Industry members can integrate backwards
• Substitutes available for suppliers
• Industry members are major buyers of suppliers
Buyer Bargaining Power
Buyer bargaining power weaker:
• Demand is more than industry supply
• Sellers’ products are differentiated
• Buyers’ costs of switching high
• Buyers size are small & numerous (consumer)
• Buyers’ knowledge about products / suppliers limited
• Buyers can’t postpone purchases
• Buyers are not very price sensitive
Buyer Bargaining Power
Buyer bargaining power stronger:
• Demand is weak in comparison to supply
• Products are standardized
• Switching costs low
• Buyers are large & fewer in numbers (Industrial)
• Buyers are well informed
• Buyers can backwards integrate into the seller's business
• Buyers can postpone purchases
• Buyers are price sensitive
• Buyers can make compromises
Substitute products
Pressure from substitutes are stronger:
• Good substitutes are readily available at attractive
prices
• Substitutes have comparable or better features
• Low costs to switch
Pressure from substitutes are weaker:
• Good substitutes are not readily available at
attractive prices
• Substitutes are not of comparable features
• High costs for switches
Collective strength of the 5
competitive forces
• “competitively unattractive” when the 5 forces are
producing very strong competitive pressure
The strongest of the 5 competitive force
determine the extent of competitive pressure
in the industry
• “attractive” when the 5 forces are producing

moderate to weak competitive pressure
Why some groups are more attractive
• Prevailing competitive pressure from industry
5 forces may cause profit potential of different
strategic groups to vary e.g., Large snack
makers vis a vis small snack makers, modern
format retailer's vis a vis e commerce firms vis
a vis fashion retailers
• Industry driving forces may favour some
strategic groups while hurting others eg. Cable
news networks vis a vis printed news papers
Matching company strategy
to competitive conditions
• Pursuing avenues that shield the firm from as many
of the 5 different competitive pressures as possible
• Initiating actions calculated to shift the competitive

forces in the company’s favour by altering the
underlying factors driving the 5 forces
Most common drivers of
Industry Change
• Changes in long term industry growth rates
• Increasing globalization
• Emerging new internet capabilities
• Changes in buying behaviour & uses
• Process innovations
• Product & marketing innovation
• Entry & exit of major firms
• Diffusion of technical know hows
• Changes in cost efficiencies
• Reduction in uncertainty & business risks
• Regulatory influences & govt. policy changes
• Changing societal concerns, attitudes & lifestyles
Assessing impact of factors
driving industry changes
• Are the driving forces causing the demand for the
industry’s products to grow or decline?
• Is the collective impact of the Industry Driving forces

making competition intense?
• Will the collective impact of the Industry Driving

forces lead to higher or lower Industry profitability?
Adjusting strategy to prepare for
the impacts of Driving Forces
• Managers need to conclude about what strategy
adjustments will be needed to deal with the impacts
of the driving forces
• For this one has to map “One’s” Organization’s
comparative position vis a vis other RIVAL
organizations within the INDUSTRY:
• different Price / Quality ranges,
• appeal to different types of buyers
• different geographic coverage etc.
Porter’s Generic Strategies
STRATEGY GROUP MAPS
Pitfalls to avoid in
Differentiation strategy
• Differentiation that can be easily copied may not
work
• Differentiation that does not enthuse buyers
• Over-spending on differentiation that may not be
cost effective
• Offering only trivial improvements in quality, service
or performance adding too many frills which are not
appreciated or needed
• Charging too high a price premium
• Some firms fail to effectively pursue one of
the generic strategies. A firm is said to be
stuck in the middle if it does not offer features
that are unique enough to convince customers
to buy its offerings, and its prices are too high
to compete effectively based on price
Porter’s Diamond Model
National Competitive Advantage
Porter’s Diamond Model
National Competitive Advantage
• Factor Conditions
• Factor conditions refer to the different types of resources that may or may
not be present within a nation. Resources include such things as human
resources, capital resources, natural resources, infrastructure, and
knowledge resources.
• To understand the role of factor conditions we need to distinguish
between basic and advanced factor conditions. Basic factors include
natural resources and unskilled labor. Advanced factors include skilled
labor, specialist knowledge, and capital, amongst others.
• Porter argues that basic factors do not generate competitive advantage as

they can be obtained by any company. Only advanced factor conditions
can generate competitive advantage.
• As an example of an advanced factor, MIT produces graduates with very
high computing skills. This, in turn, feeds a software competitive
advantage for the United States. Another advanced factor for the US is
having a large pool of venture capital seeking to invest in technology
startups. This further builds competitive advantage in this industry.
STRATEGY GROUP MAPS
• Strategy Group Maps are a two-dimensional
positioning exercise to group competing firms based
on competitive differentiating characteristics which
will reveal the market positions of the competing
firms
• Hence a Strategic Group will club those industry
members which have similar competitive approaches
& positions in the MARKET
• A group of firms following similar strategy in a given
target market is STRATEGIC GROUP
Procedure
Identify competitive characteristics that delineate
strategic approaches used in the industry:
• Price / quality range (high, medium, low)
• Geographic coverage (local, regional, national,
international)
• Product line breadth (wide, narrow)
• Degree of service offered (no frills, limited, full)
• Use of distribution channels (retail, wholesale,
internet, multiple)
• Degree of vertical integration ( none, partial, full)
• Degree of diversification into other industries
Procedure contd.
• Plot firms on a two variable (important variables)
map using pairs of these variables (avoid variables
which are highly correlated e.g. range of product
lines / multiplicity of distribution channels, because
the groups will fall on a diagonal)
• Assign firms occupying similar locations to same
strategic groups
• Draw circles around each STRATEGIC Group – making
the size of the circle proportional to the size of the
group’s share of total industry’s sales revenues
Example of SGM
Value of Strategic Group Map
• Will reveal industry members as close / distant rivals
– members of the same strategic group are the
closest rivals – the next closest rivals are those from
an adjacent group
• Not all positions in the map are equally attractive

What next?
Look at likely competitor moves to hone strategy
Porter’s frame work for competitive strategies

To compete effectively
• Current strategy: you must know what is the
competitor’s current strategy?
• Objectives: must know what are the marketing /
financial objectives of competitor?
• Capabilities: rivals strategic moves & counter moves
are always dictated by their capabilities & hence you
must assess what their capabilities are
• Assumptions: assumptions regarding how rival’s top
managers think e.g., “rival bank thinking that BIG
Banks DO NOT FAIL may make them take more risks”
Assessing competitive power
of Company’s resources
VRIN test:
• How Valuable is the resource (or capability) in terms
of competitiveness
• How Rare is the resource
• Is the resource hard to copy – Inimitable
• Is the resource invulnerable to threats of substitution
– Non substitutable
Pitfalls to avoid in Low-cost
provider strategy
• Getting carried away with overly aggressive price
cutting
• Relying on a cost reduction approach that can be
easily copied by competition
• Getting too fixated on Cost reduction
• A low-cost provider strategy can defeat a
Differentiation Strategy when buyers are satisfied
with a basic product and don’t think extra attributes
are worth a higher price
Strategic options to improve
Firm’s market position
Many a times “going on the offensive” helps a firm’s
competitive position – if HOW
1. focusing relentlessly to build competitive advantage
& then converting it into a sustainable advantage
2. applying resources where rivals are least able to
defend themselves
3. applying an element of surprise rather than which
rivals may always expect & are prepared for
4. swift decisive actions to overpower rivals
Choosing the basis for
competitive attack
• Attack competitors on their weak areas rather than take them on
where they are strong
• Offering an equally good or better product at a lower price
• Leapfrogging competitors by being first to market with a next
generation product
• Pursuing continuous product innovation to snatch sales & market
share of competition
• Adopting & improving on good ideas of other companies
• Using hit & run guerrilla tactics to grab market share from
complacent or distracted rivals
• Launching a pre-emptive strike to secure an advantegous position in
the market
Choosing whom to attack
• Market leaders that are vulnerable
• Runners' up firms with areas of weakness in
which the challenger is strong
• Struggling firms that are on the verge of going
under
• Small local firms with limited capabilities
Blue Ocean Strategy
• Inventing a new industry or distinctive market
segment that renders existing competitors
largely irrelevant & allows a company to
create and capture an entirely new demand
Defensive strategies – protecting market
position & competitive advantage
• Purpose is to lower the risks of being attacked, weaken
the impact of any attack, deflect attackers’ attention
towards other rivals
• Two main approaches:
1. block avenues open to challengers by introducing new
variants, placing different prices products at different levels,
extending warranty periods, free service offers, blocking
trade space by trade loads
2. signalling challengers that strong retaliation likely by
openly announcing management’s commitment to retain
market share, publicly announcing company’s policy to
match prices & features
First mover advantages - when
• When pioneering helps build a firm’s reputation
& creates strong brand loyalty
• When first mover’s customers will thereafter face
significant switching costs
• When property right protections thwart rapid
imitation of the initial mover
• When an early lead enables the first mover to
move down the learning curve ahead of rivals
• When a first mover can set the technical standard
for the industry
Late mover advantages or First
mover disadvantages - when
• When pioneering is more costly than imitative
following and only negligible learning curve benefits
accrue to the leader
• When the products of an innovator are rather
primitive & not really great
• When technology is moving fast, and the follower
can imitate plus leapfrog the first mover’s product
• When markets are very uncertain & one doesn’t
know which way the market will move
M&A
Horizontal Mergers & Acquisitions
• Merger means combining two or more companies
into a single corporate entity with the new entity at
times taking on a new name
• Acquisition means a combination where one
company the “acquirer” purchases & absorbs the
operations of another the “acquired”
Why
• Creating a more cost-efficient operation out of the
combined companies
• Expanding a company’s geographic coverage
• Extending company’s business into new product lines
• Gaining quick access to new technologies or
complimentary resources & capabilities
• Leading the convergence of industries whose
boundaries are being blurred by changing
technologies & new market opportunities
Vertical Integration
• Integrating backwards to achieve greater
competitiveness
• For backwards integration to be cost saving & profitable
the company must be able to:
1. Achieve the same scale of economies as the supplier
2. Match or beat the suppliers’ production efficiency with
no drop in quality
3. Forward integration can lower costs by increasing
efficiency & bargaining power by allowing manufacturers
to gain access to end users , improve market visibility eg
Harley Davidson company owned outlets
Disadvantages of vertical
integration
• Raises firm’s capital investments & risks
• Vertically integrated firms are slow in embracing new
technologies because being saddled with older
technologies
• Results in less flexibility in accommodating shifting buyer
preferences
• May hamper obtaining economies of scale
• Strain on resources
Henry Mintzberg
Henry Mintzberg
Strategy is an extremely complicated and dynamic thing.
A great strategy one day could be useless the next, depending on market
forces and changes that are outside of your control.
Great businesses are always adapting, and that means changing strategy
frequently to meet with your needs. While it is great to develop an initial,
overall strategy for your business when first getting started, it is unlikely
that your chosen strategy is going to last very long. In reality, you will
likely need to make many changes along the way if you are going to find
your way toward success.
Henry Mintzberg
Plan
This is probably where you will naturally start out when
thinking about strategy. You will think about producing a
plan for your company, which is going to take you from
where you are now to where you would like to be in the
future. For instance, your strategic plan could include such
basics as the products you are going to sell, how you are
going to produce those products, and how much they will
cost at market. Basic business planning can be thought of as
the foundation of a good strategy – it is a great platform to
start from, but it is not going to get you all the way to the
‘promised land’.
Henry Mintzberg
Ploy
In this part of strategy, your thinking is going to turn to
your competition. There is no way to ignore competition
in business – it is always going to be there, and it is
always going to have a profound effect in what you can
do. You can use a specific ploy to disrupt whatever it is
that your competition might be doing to seek out a
competitive advantage over you in the market (only in a
legal manner, of course). By trying to think one step
ahead of the competition, you may be able to take
control of your market segment for years to come.
Henry Mintzberg
Henry Mintzberg
Pattern
The pattern part of this strategic model is all
about noticing what is going on in your business
currently so that you can leverage those
patterns into future success.
Henry Mintzberg
Henry Mintzberg
Position
All businesses must fight for position in the marketplace. How are you going
to carve out a piece of the market for yourself? Are you going to play in a big
market against the big names, or are you going to fight for the top spot in a
niche market? There are pros and cons to each approach, and this is just one
potential debate as far as positioning is concerned. You can also think about
positioning in terms of your method of sales, the quality of product you are
going to offer, the price point you are going to compete at, and more. Rather
than falling into the market accidentally, your positioning should be very
much intentional and strategic in nature, and it should be based on careful
market research and projections.
Henry Mintzberg
Perspective
Every business comes at the market from their own unique
perspective. For example, you might run a business that is
focused on making a classic product that has been for sale for
many years – meaning rather than innovation, your
perspective on business is one of quality, execution, and cost
control. On the other hand, if you are trying to bring new
ideas to the market, you will have a perspective and culture
that is geared in that direction instead.
STRENGTH
WEAKNESS
OPPORTUNITIES
THREATS
SWOT ANALYSIS
McKinsey 7s model
McKinsey 7s model
Management Strategy
• Marketing Warfare AlRies & Jack Trout
• The 22 Immutable Laws of Marketing AlRies &
Jack Trout
• Philip Kotler chapter on “Dealing with
Competition”
• Blue ocean strategy W. Chan KIim &
Renee Mauborgne
Blue ocean strategy
W. CHAN KIM &
RENÉE MAUBORGNE
• 'Blue Ocean Strategy is referred to a market for a product where
there is no competition or very less competition.
• This strategy revolves around searching for a business in which very
few firms operate and where there is no pricing pressure.
• Blue Ocean Strategy can be applied across sectors or businesses. It
is not limited to just one business.
• Blue Ocean and how it is different from Red Ocean strategy.
• In today's environment most firms operate under intense
competition and try to do everything to gain market share. Products
come under pricing pressure – possibility that firm’s operations
could come under threat. Particularly when the business is
operating in a saturated market.
• This situation is known as 'Red Ocean'.
Blue Ocean And Red Ocean Strategy
Examples
• iTunes
With the launch of iTunes, Apple unlocked a blue
ocean of new market space in digital music that it has
now dominated for more than a decade.
• Ford’s Model T, introduced in 1908, is a classic
example of a market-creating blue ocean strategic
move that challenged the conventions of the
automotive industry in the United States. It made the
automobile accessible to the mass of the market.
Formulation Principles
A. Reconstruct market boundaries
• Look across alternate industries
• Look across Strategic Groups within Industries
• Look across complimentary products & service
offerings
B. Focus on the big picture & not the numbers
C. Reach beyond existing demand
D. Get the strategic sequence right
• Is there buyer utility
• Is the price acceptable
Execution Principles
A. Overcome key organizational hurdles
• Cognitive hurdle (the cognitive hurdle, keeps

employees from seeing that change is necessary)
• Resource hurdle
• Political hurdle
B. Build execution into strategy

Rating competitors on key
success factors
Customers’ ratings of competitors
Customer Product Product Technical Selling staff
awareness quality availability assistance
Competitor E E P P G
A
Competitor B G G E G E
Competitor C F P G F F
E – excellent, G – good, F – fair, P – poor,

Strategy: the company could
Attack competitor A on product availability & technical assistance
Attack competitor C on almost anything
But may not attack competitor B because it is not weak on any parameter
When analyzing competitors
Monitor 3 variables:
• Share of market “market share”
• Share of mind “top of the mind recall of customers”
• Share of heart “company whose product customer

would prefer to buy”
(based on customer survey)

Selecting competitors
Market share Mind share Heart share
2014 2015 2016 2014 2015 2016 2014 2015 2016
Competitor A 50% 47% 44% 60% 58% 54% 45% 42% 39%
Competitor B 30 34 37 30 31 35 44 47 53
Competitor C 20 19 19 10 11 11 11 11 8
Competitors that steadily gain mind share & heart share

ultimately gain market share
Example competitor B
Leader Challenger Follower
Nicher Strategy
Competitive strategies
• Market leader
• Market challenger
• Market follower
• Nicher
• Many markets have well defined Market leaders
Eg. Maruti, Colgate, McDonalds, Amul
• Unless they enjoy a legal monopoly, they can always
be vulnerable to another company coming out with
an innovative add on, or cost advantage & pose a
problem
How to remain Market Leader
• Find ways to increase total market demand:
As a result the leader retaining same market share
will grow in absolute number
• Find ways to find new customers:
Every product category has the possibility of
attracting new users by expanding to new
segments / more penetration
• Find ways to increase usages:
By modifying packaging / differing usages
While defending Market Share
• Market leaders must continuously defend their
market position
Best way is through continuous “innovation”
• Responsive marketer finds a Stated need & fills it
• Anticipative marketer looks ahead to see what
customer may need in the near future & act
accordingly
• Creative marketer discovers & produces solutions
customers did not ask for, but will enthusiastically
respond to.
• Creative marketers are MARKET DRIVING FIRMS
Market leader
Market driving firms become Market Leaders through
superior Value Delivery of “as yet unmet / may be
unknown consumer NEEDS”
E.g. Akio Morita with Walkman.
iTunes / iPods of Apple
Microsoft OS with IBM

Market leader contd.
Can not leave any major flanks exposed
Aim of defensive strategy is
• Reduce probability of attack
• Divert attacks to less threatening areas
• Lessen their intensity

Telma: Building And Defending Market Leader
Posted on December 20, 2015, by Rohit Anand
PHARMACEUTICAL INDUSTRY IN INDIA
• In 2010, the Indian pharmaceutical companies produced 20-22% of

the world’s generic drugs in terms of volume & offered 600 finished
medicines & nearly 400 bulk drugs. Top 10 players accounting for
nearly 37% of the market share in 2010.
• The domestic market was worth $ 12.26 billion growing at 17% per
year , the industry enjoyed a market share of $ 14 billion in the US
growing at 22% per year.
• In 2014, an estimated 20,000 registered pharmaceutical companies
produced over 40,000 branded formulations , many times more
than the rest of the world.
• In 2003, Telma was introduced, Telma built a powerful identity and
an enviable market position in the anti-hypertensive category.
• STRATEGIC BRAND PROGRAMS
Strategic Brand Program can be sub-divided into 4 phases:
• 1. 2003 – 2005: Initial Years of Building Telma
• 2. 2006 – 2007: Growing the Brand
• 3. 2008 – 2010: Fortifying the brand
• 4. 2011 – Beyond: Sustaining the Brand
• CHALLENGE AHEAD
• Telma had created a new category for the Telmisartan molecule in the antihypertensive market in
India. The brand adopted a premium pricing strategy and yet occupied a leadership position, not
only in terms of revenue but also in terms of number of prescriptions.
• Since Telma was already the ‘‘cardiologist’s favorite’’, Should they devote more marketing effort
towards diabetologists who were the second highest segment of prescribers.
Defensive marketing strategy
Defensive marketing strategy
• Position defense: occupying the most desirable
market space in the consumer’s mind e.g., Colgate
toothpaste “total dental care”
• Flank defense: market leader should also erect
outposts to protect a weak front or an invasion base
for a counterattack e.g., Coca Cola
Maruti, ITC cigarettes, Biscuits
• Surf came with Wheel to counter Nirma Colgate with
CibacaVedshakti against Patanjali’s Dantkanti
Position Defense
• The position defense is the simplest defensive
strategy.
• It simply involves trying to hold your current
position in the market.
• To do this, you simply continue to invest in your
current markets and attempt to build your brand
name and customer loyalty.
• The problem with this strategy is that it can make
you a target for new entrants to the market.
Mobile Defense
• The mobile defense involves making constant
changes to your business so that it is difficult for
competitors to compete with you.
• This can involve introducing new products,
entering new markets or simply making changes
to existing products.
• This constant moving between strategies requires
a flexible business that can adjust to change.
Flanking Defense
• When a firm uses the flanking defense, it defends
its market share by diversifying into new markets
and niche segments.
• The idea behind the strategy is that if you lose
your market share in the existing market you can
make up for it in these new markets.
• The danger of the flanking defense is that it can
stretch your resources thin and pull attention
away from your main focus.
Counter-Offensive Defense
• The counter-offensive defense is a retaliatory
strategy.
• When a competitor attacks your business, you
strike back with your own attack.
• For instance, if you operate a bakery that only
produces gluten-free products and a competitor
who produces regular bread also begins
producing gluten-free products, you could hit
back at it by introducing regular bread products.
Contraction Defense
• The contraction defense is the least desirable defense
because it involves retreating from markets. Leave a
market eg. Nokia withdrawing Voltas dropping
Refrigerators
• If you don’t believe you can successfully defend those
markets, however, then it can be the best option.
• This allows you to redeploy your resources into other
areas.
• For example, imagine that you manufacture two
products: liquid soap and bar soap. If you find that you
can no longer compete in the bar soap market, then it
makes sense to retreat from that market and focus on
liquid soaps.
Market Challenger
Market challenger contd.
1) Use a frontal attack
• Observed most prominently in the smartphone
market today, or more commonly in the Pepsi vs
Coca cola war since ages, a frontal attack is seen
when a competitor attacks another based on the
strengths of the competitor.
• Example – Pepsi introduces Diet Pepsi when Coke

introduces Diet coke. Both have strength of product
expansion and a diverse product portfolio. So in a
direct frontal attack, Pepsi also launches a product in
response to its market challenger.
2) Flank attack
• The above example of Pepsi and coke contains 2
brands which are very strong in the FMCG market
and have no other competitor. Thus, they use frontal
attacks. But what if a small player has to take on a
mammoth. Then the player uses a flank attack and
attacks the competition based on its weaknesses.
• Example – Many technology firms like AMD

(Advanced Micro Devices) vs Intel, Apple vs
Microsoft, and others operate on the basis of Flank
attack.
3) Encirclement attack
• This form of market challenger strategy is used when
the competitor attacks another on the basis of
strengths as well as weaknesses and does not leave
any stone unturned to overthrow the competition.
• The current E-commerce scenario is the best

example of the encirclement attack where the E-
commerce companies are ready to go negative in
their margins to beat a competitor on turnover basis.
They want to come on top and gain maximum
customers by hook or crook.
4) Bypass attack
• What did iPod do to the Sony Walkman? It
simply by passed it. This type of strategy is
found in a firm which has the brains to
innovate. And when it innovates, it bypasses
the complete competition and creates a
segment of its own. Off course, other
competitors soon follow. But the attack is very
useful in the long term to create brand
reputation and gain customers.
5) Guerrilla marketing
• Making small but useful changes, which repeatedly puts your brand in the
forefront, and slowly but surely makes it a huge name in the market, is the
crux of Guerrilla marketing. A small brand, which wants to take on huge
competitors, which first become famous in a local market, then will
introduce price discounts and trade discounts.
• Slowly but surely, the name of the small player will spread, and it will then
use branding activities and ATL and BTL marketing activities. Over a
period, the small player has become a successful large player and is a
thorn in the side for all major players in the market. Isn’t this the success
of any small brand which became big?
• Cavin Kare / Patanjali products are good examples
Thus, overall, there are the above 5 market challenger strategies which are
used by any company to defend their market and to challenge competitors.
The advantage of these strategies is that it allows you to climb up the
competitive ladder and the strategies can change depending on the
competitor whom you are targeting.
Market- Follower Strategies
Each follower tries to bring distinctive
advantages to its target market-location,
services, financing.
Four Broad Strategies:

• Counterfeiter
• Cloner
• Initiator
• Adopter
Market follower contd.
Adopter
• Adopter is white collared market follower strategy.
Automobiles use the adaptation form of market
follower strategy. Cars like Maruti 800, Alto, Zen, Brio,
etc. are all adapters and they adapt the best qualities
from each other by changing the style of the
automobile. Similarly, there are technology adapters
like the Dell laptop and Sony Vaio laptop. These market
followers have similar products, but they try to adapt
from their closest competition. Adapters can soon
become leaders as well because they can adapt, learn
and make a better product than the higher
competition.
2) Imitation
• Imitation is the best form of flattery. But such a flattery can cause a
huge dent in your profit margins if you are a product manufacturer.
Imitators make use of your hard-earned brand equity and give a
product which has the same characteristics as yours, albeit at a
lower price
• The difference might be that the new product is made from poor
material or that it does not have the service or promise that your
brand can offer. Nonetheless, there is a huge market for imitators
where people want to buy products at lower cost as they can't
afford the higher one.
• Imitation jewellery is probably the best and largest example of
imitation as a market follower strategy. Second example can be the
imitation of Tata sky, where Tata sky is the market leader and
brought digital TV revolution to India but was soon imitated by
Videocon, Airtel, Reliance and others..
3) Cloner
• There is a silver lining between an imitator and a
cloner. An imitator might copy some of your product
qualities, but it maintains its own product qualities as
well. For example – timesjobs.com is an imitator of
naukri.com, but then times jobs has its own unique
product characteristics as well.
• However, if you get watches made from Rado, or bags
of Gucci, with Rado spelled as RADA and Gucci spelled
as GUCCA, then that’s cloning. Cloning means making
the same product as yours, but with very subtle
difference. Cloning makes advantage of the top brands
and makes same to same products.
• Clones of Samsung phones.
4) Counterfeiter
• The best example of counterfeiting is selling
the originals via piracy. Where cloning involves
manufacturing of slightly altered products,
counterfeiting involves thieving and is a black-
market follower strategy. The best example is
pirated DVDs and CDs of movies and music.
• If you notice, time and time again the movie industry wakes
up against piracy. This is because, piracy and counterfeiting
steals their work. Similarly, you can find shoes from Reebok
and Adidas as well as numerous other products in the
market which are counterfeited.
• These are the four main market follower strategies existing
in the market. In these four categories, it is the adapter and
possibly the imitator who has a chance to take over the
market leader. However, the cloner and counterfeiter can
never overtake the market leader because they are not
present in the market with their own manufactured
products or with their own brand equity.
• However, all market leaders know that they are going to be
followed and that market followers will exist forever. What
strategy the market follower uses, white or black, is
completely dependent on the vision of the market follower.
Market nicher
• Surf Excel, a household name in the country by any
yardstick, would be a mass marketed product, right?
Well, not exactly. When Lalitaji was around, Surf was
indeed a cost-effective, mass product, whitening
clothes in millions of household across the country.
But HUL changed tack when it realised that the
consumer was coming of age and had more
disposable income in his/her hand. Besides,
competitors like Nirma were fast eroding their mass
market base. HUL launched Surf Excel and clearly
targeted it at the premium end of the detergent
market.
Market Nicher contd.
• Calcium Sandoz Woman, Amul Calci+ (a high
calcium milk, which caters to the to-be-moms),
and Horlicks for women are prime examples of
marketers finding niches (within the mass), in
addition to their mass markets.
• From Amul’s ‘Slim and Trim’ milk & curd (and
similar variants from Nestle and Mother Dairy), to
diet chocolates like Kit-Kat Lite to pro-biotic ice-
creams to Diet carbonated drinks to Maggi Atta &
Rice noodles to diet cornflakes like Kellogs K
series
Market nicher contd.
• You have products like razors, especially for women,
like Satin from Gillete. Then there is Fair and
Handsome from Emami, which propagates the
message that ‘Men and women are different so are
should be the products they use’. Besides, there is a
race among marketers to catch the kid-consumer
with either a Pepsodent kids' gel, Pears Junior Soap
and various mild kid shampoos.
BCG
Product Portfolio Matrix
M PROB
R
K HIGH STAR -LEM
T CHILD
Called the
G
market growth –
R
market share O CASH DOG
matrix W LOW
COW
T
H
high low
MARKET SHARE
GE McKinsey
Integrative Manager
Theory Class No:1,2 & 3 ( Cohort 1 )
Batch 2021-2023 ( AY 22-23) &
Theory Class No: 1,2 & 3( Cohort 2)
Batch 2021-2023 ( AY 22-23)
Professor Vijayan Pankajakshan
Dated 30th August 2021
Audi
( 2pm to 4pm) &
Dated 2nd September 2022
Brainstorm, 2pm to 4pm
Dated 11th October, 2022
2pm to 4pm & 415-615pm
Why this Subject
The course aims to provide students with a holistic perspective of

leadership, decision making, working as a team, cross-functional
skills and competencies and a cohesive synchronisation between
various functions to achieve a common goal.
Course Objectives :
1 This course is designed to provide students with an integrated, real life

perspective of strategic business functions.
2 The focus is on three theoretical learning areas: Strategic Management,
High Performance Leadership and Managerial Process skills.
3 The lectures are designed to create a model based strategic framework and
will be followed by cases in the following subject ,which are applications of
these principles.
Course Course Outcome Blooms Level
Outcome (in word)
Number
CO1 Illustrate with real-life examples how a Understanding
company formulates vision, mission, goals
and objectives
CO2 Illustrate industry analysis by using models Understanding
and frameworks like Porter’s Five Forces
Model, PESTLE, SWOT analysis, McKinsey
7S Framework, Mintzberg 5Ps
CO3 Identify how technology, big data and Applying
operational strategy can be used in strategic
decisions
CO4 Identify the impact of the economic and Applying
business environment on strategy by using
tools like PESTLE and SWOT analysis
CO5 Examine the role that ethics, values, corporate Analyzing
culture, social responsibility play in an
organization
Reference Texts/Books/Websites/etc:
Textbooks:
1. Thomson, A.A., Peteraf, M. A., Gamble, J. E., Strickland III, A. J., Jain, A. K. (2014)
Crafting and Executing Strategy: The Quest for Competitive Advantage 19th edition
Authors: Tata McGraw Hill Education Private Limited (TPGSJ)
Recommended Reading:
1. Martin, R., Austen, H., The Art of Integrative Thinking Retrieved
from:https://rogerlmartin.com/docs/default-source/Articles/integrative-thinking/the-art-of-
integrative-thinking
2. Porter, M. E., (2010) Competitive Strategy - Techniques for Analyzing Industries
and Competitors.Simon
3. Porter, M. E., (1996) What is Strategy? (HBR article)
4. Porter, M. E., Understanding Industry Structure (HBS note)
5. Ghemawat, P., Rikvin, J.W.(1998)Creating Competitive Advantage (HBS note)
6. Jick, T. D.,(1989) The Vision Thing (HBS Note)
7. Winston, A., (2018) Why Mining - Yes, Mining- Cares About Article about
sustainability
What is significance of the term ‘ Integrative’ ?
Across Functions : Horizontal
Across Levels: Vertical
Across Functions & Levels: Matrix /Project/SBU
Across Technologies
Across Value Chains
Across Ownership & Management

Across Board of Directors & Management
Across Strategy & Execution

Across Hard and Softer elements of the Strategy
Across Managerial and Leadership elements of a Role
Across Financial & Non Financial Metrics

Sustainability ( ESG)/Triple Bottom Line , TQM
1 Vision, Mission, Goals, Objectives
how to build a road map of goals
and how to achieve them
Vision…….. Amul’s
‘is to provide more and more satisfaction to
the farmers, employees and distributors.’
Mission……
We at GCMMF (Gujarat Co-operative milk Marketing
Federation) endeavour to satisfy the taste and nutritional
requirements of the customers of the world, through
excellence in marketing by our committed team.
Through co-operative networking, we are committed to
offering quality products that provide best value for
money.
Fonterra's vision is ‘to be the natural source
‘
of dairy nutrition for all young and old,

everywhere, every day”.
Fonterra is a global chief in dairy nutrition –

the chosen merchant of dairy ingredients to
many of the world's foremost food
companies.
We are a New Zealand Co-operative made up of everyday good people
who work together to do good things with dairy.
Good things with the land we work on and good things for the people
that our products end up with.
We are passionate about doing amazing things with dairy.
Aotearoa, New Zealand can lead the way.
Our Co-operative, which is founded by the people for the people can
make a difference across New Zealand and the world.
Our 10,000 farmers are at the heart of our Co-op and we work with
them through a partnership approach.
We encourage and support farmers to adopt good management

practices and to continuously improve profitability, environmental
efficiency, and resilience.
Nike
Mission statement: To bring inspiration and
innovation to every athlete* in the world. (*If you
have a body you are an athlete.)
Vision statement: To do everything possible to

expand human potential.
The Walt Disney Company
Mission statement: To entertain, inform and inspire people around the globe….
Vision statement: … through the power of unparalleled storytelling, reflecting the iconic
brands, creative minds and innovative technologies that make ours the world’s premier
entertainment company.
Sony
Mission statement: Fill the world with emotion...
Vision statement: … through the power of creativity and technology.
How Sony Music boosted their creative production capacity by 4x with Asana Patagonia
Mission statement: At Patagonia, we appreciate that all life on earth is under the threat of
extinction.
Vision statement: We’re using the resources we have—our business, our investments, our
voice and our imaginations—to do something about it.
Source: https://asana.com/resources/vision-statement
As explained by Dean Nitin Nohria: ( succeeded by Prof Dr Srikant Datar)
Each element of the School’s mission

-to educate leaders who make a difference in the world—is infused with
meaning.
“Leaders”
When we talk about leaders, we mean people who embody a certain type of
competence and character—both the competence that comes from the general
manager’s perspective the School cultivates and the character to understand
the difference between being self-interested and self- centered.
It goes far beyond knowing that it’s not right to lie, cheat, or steal.
It involves recognizing that you are a true leader only when you have earned the
trust of others, and when others, whether in your organizations or your
communities, recognize you as such.
“Make a Difference”
Making a difference means people who create real value for society, and who
create value before claiming value.
I’ve not found anyone who begrudges a leader for claiming value after creating
value.
Rather, the recent economic crisis showed us too many examples of leaders
who claimed value without creating any.
It is worth noting here that there are many ways of making a positive
difference: as an investor, as a general manager, as an entrepreneur, as an
active citizen of your community.
Indeed, what distinguishes Harvard Business School is that our graduates

provide leadership in all walks of life
“In the World”
In the world reflects our understanding of a rapidly changing, dynamic
environment, and the fact that many of the world’s most challenging issues will
require a global perspective.
Moreover, it involves embracing the view that the world desperately needs more
leaders to address its most urgent and challenging problems, and that virtually
none of these problems can be addressed without business leaders playing a vital
role.
And, of course, the first component of the mission is educating, which we do in

many ways—through our educational programs, through the ideas our faculty
produce and disseminate, and through the influence we achieve by being close
to leaders of all types, and of organizations all across the world.
Here, I would encourage us to recognize that the impact of what we do extends

far beyond the people who come to our campus.
Although we can touch only a few thousand directly each year, we can indirectly
influence many more by remaining the most trusted and admired leader in
business education.
Many Companies: One Purpose:
Mahindra & Mahindra
A federation of companies, bound by one purpose – to Rise.

Inspired by this spirit, our legacy and values, our goal to always
positively impact our partners, stakeholders, communities and the
world at large, remains unshakeable.
We’ve made humanity’s innate desire to Rise our driving purpose.
We challenge conventional thinking and innovatively use our

resources to drive positive change in the lives of our stakeholders
and communities across the world, to enable them to Rise.
This purpose is why we exist, come to work every day, and strive
continuously in delivering our promise.
Mahindra Group:
Our set of core values is the compass that guides

our actions, both personal and corporate.
PROFESSIONALISM
GOOD CORPORATE CITIZENSHIP
CUSTOMER FIRST
QUALITY FOCUS
DIGNITY OF THE INDIVIDUAL
https://www.youtube.com/watch?v=jYTPNUQXsag
Living the core values - Mr. Anand Mahindra
Video:
5:17 minutes
A Vision:
The Importance of Vision and Mission Statements:: Published
on January 17, 2017:::: Norja Vanderelst
‘ is used to describe the future state of the organization, i.e.,

what the organization hopes to become in the future.
It is, therefore, a long-term goal provides direction for the

organization.
It also communicates the purpose of the organization to the

employees and other stakeholders and provides them with the
inspiration to achieve that purpose.’
What is a Mission Statement:
• Describes the current state of an organization
and its primary goals or objectives.
• Provides detailed information about what the
organization does, how it does it, and who it
does it for.
• Unlike the vision statement, it is short-term in
nature.
However, it is related to the vision statement in
that it outlines the primary goals that will help to
achieve the future the organization desires (i.e,
the Vision).
Both the Vision and Mission statements play an important role in
the organization. Below is a look at these roles:
• The vision and mission statements define the purpose of the organization and instill a
sense of belonging and identity to the employees.
• This motivates them to work harder in order to achieve success.
• The mission statement acts as a “North Star”, where it provides the direction that is to
be followed by the organization while the vision statement provides the goal (or the
destination) to be reached by following this direction.
• The vision and mission statements help to properly align the resources of an
organization towards achieving a successful future.
• The mission statement provides the organization with a clear and effective guide for
making decisions, while the vision statement ensures that all the decision made are
properly aligned with what the organization hopes to achieve.
• The vision and mission statements provide a focal point that helps to align everyone
with the organization, thus ensuring that everyone is working towards a single
purpose.
• This helps to increase efficiency and productivity in the organization.
Discovery Channel
Mission statement: Powering people’s passions around the globe.
Vision statement: Serving passionate fans with content that inspires, informs and
entertains with leadership across deeply loved and trusted brands. Accelerating
innovation and super-serving passionate fans across every screen, service and format
with new products
LinkedIn
Mission statement: Connect the world’s professionals to make them more productive and
successful.
Vision statement: Create economic opportunity for every member of the global
workforce.
IKEA
Mission statement: To offer a wide range of well-designed, functional home furnishing
products at prices so low, that as many people as possible will be able to afford them.
Vision statement: To create a better everyday life for the many people—for customers,
but also for our co-workers and the people who work at our suppliers
WeSchool Confidential. Only for reference by participants of Certificate Program for CAP LEAD 2.0 of TVSCS
Memorial Sloan Kettering Cancer Center has
the ultimate mission: curing cancer.
They approach this mission from multiple

perspectives—from patient care to analytics to
algorithms.
As a leader in their field, employees must be
eager to learn, passionate about the work they
do, and able to clearly communicate their
ideas.
At MSK, everyone feels supported in trying new
things, evolving the research they’re doing and
the conversations they’re having.
Philips is committed to making life better for millions of people
around the world.
Its teams pride themselves on the meaningful innovations and
solutions they are providing to healthcare challenges around them
and recognize that individuals who are part of Philips should be led
and supported to develop to their fullest potential.
At Philips, people can make an impact where it matters
Nike, Inc. is the world’s leading designer, marketer, and distributor

of authentic athletic footwear, apparel, equipment, and accessories
for a wide variety of sports and fitness activities. Nike unites
diverse perspectives, scientists and shoe designers, coders and
quarterbacks, to share knowledge of the body in motion. They
house countless designers and innovators, including computer
scientists, bio-mechanists, physiologists, chemists, materials
developers—even a planetary astrophysicist. At Nike, it’s in their
nature to innovate and their mission is to bring inspiration and
innovation to every athlete in the world.
Forming a strategic vision should provide long-
term direction, delineate the organizational
activities to be pursued and the capabilities the
organization plans to develop, and infuse the
organization with a sense of purposeful action.
... It delineates the future focus and where the
organization is going.
Source: Your Guide to the Strategy Development Process | OnStrategy

As the sense of meaning in the corporate world continues to plummet,
the shortage of clear and comprehensive thinking on solutions has
become acute.
Dan Pontefract rides to the rescue with The Purpose Effect, providing
a well-argued and detailed framework for organizations and their people
to find and maintain their purpose “sweet spot.”
*Roger L. Martin, author and Institute Director, Martin Prosperity

Institute, Rotman School of Management
A compelling thesis on how purpose can drive not only

personal fulfilment but also lead to more stable, cohesive
and higher performing organizations. The Purpose Effect
is a must-read for any who doubt the impact of purpose on
organizational stability and performance.
*Paul Polman, ex-Chief Executive Officer, Unilever
In our quest to grow our careers, advance and develop our
skills, we often forget the importance of purpose.
The Purpose Effect is a wonderful book that reminds us
how important it is to look within, and find purpose
in our jobs, careers and organizations.
*Josh Bersin, HR Industry Analyst, Principal and
Founder, Bersin by Deloitte
Google
Mission: Organize the world's information and make it
universally accessible and useful
Google
Vision :
To provide access to the world’s information in one click
Google Values
• Great isn’t good enough.

• Focus on the user, all else will follow.
• It’s best to do one thing really well.
• Fast is better than slow.
• Democracy on the web works.
• You can make money without doing evil.
• There’s always more information.
• The need for information crosses all borders
• You can be serious without a suit.
• You don’t need to be at your desk
The Framework
Mission
Why we exist?
Our desired
future state Core Values
What we believe in?
Vision
What we aspire for?
Differentiating
Strategy activities
To-do’s to
How do we plan to achieve this?
implement
our Measuring
Strategic Initiatives
strategy & tracking
What we need to do?
strategic
Balanced Scorecard success
Implementation and focus
Personal Objectives
What I need to do?
Satisfied Delighted Effective Motivated

Stakeholders Customers Processes People
Integrative Manager
Theory Class No:2 ( Cohort 1 )
Batch 2021-2023 ( AY 22-23) &
Theory Class No: 2( Cohort 2)
Batch 2021-2023 ( AY 22-23)
Professor Vijayan Pankajakshan
Dated 30th August 2021
Audi
( 2pm to 4pm) &
Dated 2nd September 2022
Brainstorm, 2pm to 4pm
Dated 23rd September 2022 , Audi, 2pm -4pm
Video:
Balanced Score Card
https://www.youtube.com/watch?v=OZtNk__7Qyg
Kaplan & Norton's Balanced Scorecard Explained
An example of aligned performance measures
Illustration
Board Level Shareholder Shareholder Returns
Value only
ROI+Growth Economic Profit
Executive Team Strategy Driven By:
Financial
Internal Balanced Scorecard
Customer
Operations
Innovation
Revenue Expenses Asset utilization
Driven By: Driven By: Driven By:
Senior and Line  Market Share/
Marketing  Property, equipment Existing
 R&D
Management Backlog  Inventory/Receivables Assets
 Labor costs
 Volume  Technology
 SG&A
 Product Mix  Brand equity
 Product cycle
 Pricing People resources
time
Sustained
New Customer Growth in Growth/
Quality Supplier
Relationships
Product/Service Satisfaction & Human Innovation Expectations
Development Loyalty Capital
The Balanced Scorecard provides a four perspective
framework to formulate strategy and translate it into
operational terms
VISION
Financial Perspective
“If we succeed, how • Profitability
will we look to our • Growth
shareholders” • Shareholder
• Value
Customer Perspective
• Measurement is the “To achieve our • Price
language that gives clarity to vision, how must • Service
we look to our • Quality
vague concepts customers?”
Internal Perspective
• Measurement is used to “
communicate, not simply to To satisfy our

customers, what • Cycle Time
control management processes • Productivity
must we excel at?” • Cost
• Building the Scorecard

develops consensus & Organizational Development
teamwork throughout the “To achieve our • Market Innovation
vision, how must • Continuous Learning
organization our organization
learn and improve?” • Intellectual Assets
Case Study-South West Airlines
Profits Balanced Scorecard Action Plan
Perspective Objectives Measurement Target Initiative Budget
Profitability Market Value 30 % CAGR
Grow Financial Fewer planes Seat Revenue 20 % CAGR
Fewer Planes Perspective
revenues Grow revenues Plane Lease Cost 5 % CAGR
Attract and retain

Implement CRM
more customers Attract and retain
Repeat Customers 70%
system
$XXX
more customers Service & Brand
Customer Customers 12% YoY inc $XXX
On-time Lowest Perspective
Management
service prices FAA on time arrival
Flight is on time #1 Customer Loyalty
rating $XXX
Program
Lowest Prices Customer Ranking #1
Fast Ground Internal Fast Ground On Ground Time 30 minutes Cycle-time

$XXX
Turnaround Perspective Turnaround On Time Departure 90% optimization
Strategic Job Yr 1 - 70 %
Develop the necessary Strategic job Ground crew
Ramp agent skills readiness
Yr 3 - 90 %
training
$XXX
Yr 5 - 100%
Strategic systems Learning & Develop the Info System Crew scheduling
Growth 100% $XXX
support system Availability system rollout
Crew Scheduling Perspective Strategic Communication
100% $XXX
Ground crew Awareness Program
Ground crew
Apotex Research aligned
Pvt Ltdto Leadership
strategy % Ground crew
& 100% E-SOPS
alignment stock holders 41$XXX
HRM 120820
2&3 -Strategy, Ethics, and Social Responsibility 23rd
-Building an Organization capable of Good September
Strategy Execution 2022 & 4th
-Organisation Structure – alliances & October
integration
-Emerging Business Models, Future of Work
-Changing Values of Workforce
-Strategic Renewal
-Corporate Culture and Leadership : Keys to
Good Strategy Execution.
-Leadership to manage Corporate Culture, -
Performance and ensure Good Strategy
Execution
-Organisational culture challenges – cross
border/cross cultural setting
Reading/Reference:
CHAPTER 10: BUILDING AN ORGANIZATION CAPABLE OF GOOD ... OF
GOOD STRATEGY EXECUTION: PEOPLE, CAPABILITIES, AND STRUCTURE.
Copyright ®2012 The McGraw-Hill Companies, Inc.

McGraw-Hill/Irwin
Strategy, Ethics, and Social Responsibility
The Ethics Test
Texas Instruments has devised a 7 step guideline
employees can use to determine whether or not a
decision is ethical
 Is the action legal?
 Does it comply with Our values
 If you do it, will you feel bad?
 How will it look in the newspaper?
 If you know it’s wrong, don’t do it
 If you are not sure, ask
 Keep asking until you get an answer
Ethics and Profit
• 1991- The Body Shop- phased out use of PVC-
packaging and products
• Success of Business ethics programmes-
ultimately depend- having the right combination
of spirit & structure.
• Ethics is ‘ obedience to the unenforceable where
as law is ‘ obedience to the enforceable’- (Lord
Moulton )
Ethics & Morality*Robert Hughes
• Moral obligation- follow laws that are unenforced or
under-enforced
• Some times- an MNC- doing business- low-middle
income-country-where law enforcement has resource
limitations OR privacy considerations
- Prevent if from enforcing all of the
socially important laws effectively
• Moral obligations- follow socially important laws- isn’t
limited to the laws of one’s own country
*Doing the Right Thing: When Moral Obligation is Enough.’

Responsibility to Stake holders*
Centre for Tomorrow’s Company reports
• ‘ 40 % of Business leaders- now believe that a
company cannot succeed unless it has accountability
that goes wider than shareholders.’
• The new languages of corporate social responsibility,

corporate governance, labour relations, community
development and lifelong learning- are all reflections
of the above concept
John Elkington – Triple Bottom Line
Theory
The Sustainable Development Goals (SDGs),
also known as the Global Goals, were
adopted by all United Nations Member States
in 2015 as a universal call to action to end
poverty, protect the planet and ensure that
all people enjoy peace and prosperity by
2030.
https://www.in.undp.org/content/india/en/home/su
stainable-development-goals.html
• Sustainability Focus Areas
Marico sustainability objective is therefore, focused to
create industry-leading value with brands and
products that consumers prefer, while at the same
time, conserving resources, protecting the
environment, and improving social conditions for
those who need it most.
• We have targeted six material areas which are very
critical to our business in today's context.
Source: https://m.marico.com/india/make-a-
difference/sustainability
Sustainable Procurement
As Marico's material and service requirements are varied,
sustainable procurement becomes critical for the business. We aim
to procure goods which are economically viable and which benefit
the organization, customers, society and the environment.
Energy Management
As a responsible corporate, we aim to reduce our energy
consumption and adopt environmental-friendly production
technologies.
Water Management
Availability of water is a global challenge today and as a part of our
on-going sustainability commitment we aim to set new benchmarks
in this material area of our business.
Waste Management:
Waste management is an area of high relevance to our business
and we are committed to reducing our waste on a year-on-year
basis and having a robust waste recycling and reusing
mechanism in place.
Product Responsibility:
The products we manufacture are used by people every day, and
our consumers expect our products to be environmentally and
socially responsive. Therefore, we aim to provide products that
are safe in nature and do not impact the environment and
community adversely while maintaining high quality standards.
Future-ready capability building:
Building competencies is a progressive process; in a dynamic
environment it becomes critical to build future-ready capabilities
for business and individual growth.
2.Building an Organization capable of Good Strategy
Execution
CHAPTER 10: BUILDING AN ORGANIZATION CAPABLE

OF GOOD ... OF GOOD STRATEGY EXECUTION: PEOPLE,
CAPABILITIES, AND STRUCTURE.
Copyright ®2012 The McGraw-Hill Companies, Inc.
McGraw-Hill/Irwin
https://slideplayer.com/slide/3871686/
Video : Summary
5.19 minutes:
A FRAMEWORK FOR EXECUTING STRATEGY
Committing to Executing a Strategy:10–2
• Entails figuring out the specific techniques,

actions, and behaviours necessary for a smooth
strategy- supportive operation.
• Following through to get things done and deliver

results.
• Making things happen (leadership) and making

them happen right (management)
The Action Agenda for Executing Strategy
FIGURE 10.1
The 10 Basic Tasks of the Strategy Execution

Process.
The Action Agenda for Executing Strategy
Chapter 10, 11, 12:

3.Organisation Structure:
-Alliances & integration
What is Organization Design & Structure?
•Organizational Design - the process of constructing and

adjusting an organization’s structure to achieve its goals.
• Organization’s structure the linking of departments and jobs
within an organization
•A working definition to assist us in understanding what an
organisation is.
•We can say that organisations ‘are (1) social entities that (2)
are goal-directed, (3) are designed as deliberately structured
and co-ordinated activities systems, and (4) are linked to the
external environment’ (Daft 2007, p10).
*Organizational Design H. Mintzberg, The Structuring of Organizations, Prentice Hall, © 1979, 301. Reprinted
by permission of Prentice-Hall, Inc, Upper Saddle River, NJ
Source:
https://www.slideshare.net/anjali301/strate
gic-alliance-10348554
“A strategic alliance is a relationship between
two or more parties to pursue a set of
agreed goals or to meet a critical business
need while remaining independent.”

Eg: Renault Engines in Volvo Cars
Hewlett-Packard and Disney have a long-standing
alliance, starting back in 1938, when Disney purchased
eight oscillators to use in the sound design of Fantasia
from HP founders Bill Hewlett and Dave Packard.
When Disney wanted to develop a virtual attraction

called Mission: SPACE:
Disney Imaginers and HP engineers relied on HP's IT

architecture, servers and workstations to create Disney's
most technologically advanced attraction
‘A global strategic alliance is an
agreement among two or more

independent firms to co-operate for the
purpose of achieving common goal

such as a competitive advantage or
customer value creation.’
Why :
• Globalization of the world economy.
• Systematic technological change.
• Innovation led growth.
• Growing acceptance of the view that

competition does not necessarily ensure
optimum growth.
Intended Benefits:
• Adding value to product.
• Improving market access.
• Strengthening operations.
• Adding technological strength
• Enhancing strategic growth
• Building finance strength.
Types :
1.JV
2.Equity Strategic Alliance
3.Non-Equity Strategic Alliance
4.Global Strategic Alliance
Nature:
1.Technology- based
2.Production- based
3.Distribution- based
4.Resource- based
Changing Values of Workforce
Source: ‘ The Future of Work & Generation Z’

Generation Z has arrived
• 61 million strong in the U.S. alone, they will comprise 30% of the
workforce by 2030.
• They are more diverse, more educated, and more technologically

adept than any previous generation.
• And they are poised to join the workforce at a moment of

unprecedented change.
• The future of work will be more global, more collaborative, and

more flexible than ever before.
• It will demand new competencies from a more engaged

workforce and create new possibilities for how work gets done
• Roughly speaking, Generation Z was born
between 1996 and 2010.
• The first wave, at 20-23 years old, is beginning

to enter the workforce now.
• Just over half of Generation Z is non-white,

making them the most diverse generation in the
history of the United States.
• They are a larger cohort than either Baby

Boomers or Millennials
They are Technologically nimble
• Grown up saturated in technology.
• It’s a primary means of connection—with each other and with

brands like your organization.
• They are comfortable with technology—and they are using it in new

ways to navigate their world.
• They are Airdropping memes and messages at concerts and in the

classroom
• They are creating private spaces on Facebook and Instagram for

friends and family.
• They are experimenting with self-identity on Snap chat.
• Their technology is less a tool than it is an extension of themselves.

They are well educated
• Educational attainment in the U.S. is rising, and GenZ is
right on track to outstrip any previous generation.
• More likely to live with a college-educated parent, GenZers

are less likely to drop out of high school than previous
generations.
• Pursuing college in record numbers.
• Second generation Hispanic students are driving this trend,

with 61% of those who are 18 to 20 enrolled in college.
• GenZ also self-directed, preferring YouTube over

textbooks, but they continue to seek out the opinions
of their parents, friends, and influencers.
They aren’t waiting around for jobs:
• Gen Z : poised to be most entrepreneurial

generation we’ve ever seen.
• Nearly half of GenZers plan to own their own

business.
• With the rise of social media, as well as peer-to-

peer networks, they are using new platforms to
invent new opportunities, predicting trends, creating
podcasts, & launching start-ups.
They’re pragmatic
• Shaped by recession, GenZers tend to be realistic
about their prospects.
• >80% :would rather save for a splurge than

purchase something on credit.
• Their experience that life can change on a dime

has made them more inclined to plan for the
future, designing majors that will help them be
career-ready, using internships to gain
experience, and having a backup plan if things
don’t work out.
Generation Z: Key Values
Equality and inclusivity
According to a comprehensive study conducted by the Pew Research Centre,
GenZ is more liberal and open in its outlook than previous generations,
especially valuing equality and inclusivity. GenZers are more comfortable with
gender fluidity and about a third know at least one non-binary person. They
are also more likely to recognize (and reject) racial inequalities. 12 Diversity, in
the words of one GenZer, “is simply the norm.” They expect their reality to
be reflected in the workplace.
Stability and opportunity
In addition to growing up haunted by recession, this generation has seen the
student debt crisis soar past the $1 trillion mark. 14 They are keenly aware of the
downside of debt and know that jobs can sometimes go away, particularly with
the gig economy on the rise. It’s no surprise, then, that this generation ranks
job security highly. But Gen Z is also open to change and willing to take risks.
They expect to work hard, learn on the job, and explore different
pathways to success.15
Collaboration and exploration
Multi-taskers who easily manage information across multiple devices, GenZers
are natural synthesizers. Rather than focusing on a single task, they are more
interested in (and wired for) contributing across multiple projects that interest
them.
Collaborating with others—without sacrificing personal agency—isn’t just
something they’re good at, it’s a part of how they understand and negotiate
the world.17
*Klaus Schwab, Founder and Executive Chairman of the World
Economic Forum and author of a book titled The Fourth Industrial
Revolution:
*In a 2016 article, he wrote that “like the revolutions that preceded
it, the Fourth Industrial Revolution has the potential to raise global
income levels and improve the quality of life for populations around
the world.”
*He continued: “In the future, technological innovation will also lead
to a supply-side miracle, with long-term gains in efficiency and
productivity.
-Transportation and communication costs will drop, logistics &
Global supply chains will become more effective, & the cost of
trade will diminish, all of which will open new markets & drive
economic growth.”
Business models emerging in e commerce area
https://www.slideshare.net/SabaChaudhary7/business-
models-emerging-in-e-commerce-area/ 2017
• Strategic Renewal
• Corporate Culture and Leadership : Keys to Good
Strategy Execution.
• Leadership to manage Corporate Culture,
Performance and ensure Good Strategy
Execution
• Organisational culture challenges – cross
border/cross cultural setting
Corporate Culture & Leadership:
Keys to Good strategy Execution
Gunter(2001) Transformational Leadership:
Build a unified common interest between leaders and

followers .
“… kin to transformational leadership in which people

are inspired to achieved an agreed version of a better
future for the organization and its clients “.
Video: Transformational Leadership- Walt Disney

Leithwood et al’s(1999) :
‘People-led’ motions of human recourse management
“ this form of leadership assumes that the central

focus of leadership ought to be the commitments and
capacities of organizational members.
Higher level of personal commitment to

organizational goals and greater capacities for
accomplishing those goal are assumed to result in
extra effort and greater productivity”
Miller and Miller (2001)
Performance Management may be likened to

transactional leadership
“Achieving the required level of performance, in

terms of specific outcomes is likely to lead to a
reward in terms of managerial approval and
,perhaps,improved salary or conditions of
employments”
Briggs(2003)
Transformational and transitional approach may both be
adopted by leaders who need to find a balance
appropriate to their specific context
“….an instinctive ‘pull’ towards a transformational style,

followed by a realization that the efficient working of the
system indicated by a transactional style was an essential
factor for enable their role… effective enactment of their
role depends upon their perceiving the balance between
transactional and transformational style”
6 Leadership Passages*
• Managing Self towards Managing Others
• Managing Others towards Managing Managers
• Managing Managers towards Functional
Manager
• Functional Manager to Business Manager
• Business Manager to Group Manager
• Group Manager to Enterprise Manager
*Dr Ram Charan

Organizational Culture
۞Defined as attitudes, experiences, shared

beliefs, and behavior in the work place
environment formulated in the interaction of the
employees in the work place.
“ HR SHOULD SHAPE STRONG AND
SHARED VALUES THAT GOVERN HOW
PEOPLE ACT”
DAVE ULRICH, RBL GROUP

Why focus on Organization Culture
• Is the organization’s work meaningful to the
applicant?
• Are the applicant’s values in harmony with the
values of our organization?
• Will the person naturally perform in ways that
are consistent with how we do things here?
Confidential
Organization • System of assumptions,
culture values, norms & attitudes
• Relative stability either

Organization planned or spontaneous
structure • Pattern of actions and
interactions
Learning Is Culture
The values and beliefs held by a company and its people contribute to
that organisation’s culture and unique environment.
Company culture predates any employee’s hire date.
You can sense it when you walk in the door.
Good company culture benefits both the company and its employees.
Case in point, research by Glassdoor.com showed that companies

named in their “Best Places to Work” outperformed the S&P 500
Index five years in a row.
But good company culture doesn’t mean free meals and a generous
benefits package; it means having a strong culture of learning.
Source: Strong Culture Strong Leaders It's a Matter of Learning:
(Bridge)
AGILITY VERSUS AGILE
Agility
A property of an organization to sense and respond to

market changes and continuously deliver value to
customers.
Agile
An organizational approach and mind-set defined by
the values and principles of the Agile Manifesto, often
practiced through a framework like Scrum.
“ Solving a client’s issue may require many
complex work streams, so we set up a sprint...It’s
a way of getting people to be collaborative, take
accountability and feel empowered.”
TAMARA INGRAM CHIEF EXECUTIVE OFFICER, J.

WALTER THOMPSON COMPANY
Definition
• System of Concentric Circles
• Shared beliefs and values that serve as the
foundation for why you’re in business and the
framework for how you do your work
• Core Culture consists of the central three Ps
– Vital Purpose
– Distinctive and Enduring Philosophy
– Universal Priorities that employees value.
Confidential
Purpose *
• Purpose defines why the organization exists.
• Answer to the question, “Why is the work of
this company important?”
• Through work, employees can do meaningful
work that makes a difference, and they can be
part of a meaningful legacy
• Purpose -rational and emotional
• Guide the daily actions - Employees
• Enduring
*J&J Credo:
Confidential
Philosophy
• Directs “how” employees, do their work.
• And “how” ,you do work, matters.
• Directs behavior across the organization
• One value or a small set of values
• Differentiates an organization from its
competitors
• Framework, for how Purpose, is delivered in
a distinctive way
Confidential
The Perceived Utility of the Functions of Work
© 2008 Pearson Prentice Hall 11-143

Relationship between Culture and Structure
Relationship between
Organizational Development & Organizational Culture
۞ Organizational Development (OD) Approach, emphasizes Organizational

Culture, in which influences the way people work, using change based on
research and action.
۞ Organizational Development Transform Organizational Culture
Social & Technical Systems

• Culture
• Work Processes
• Communication
• Rewards
Dimensions of National Cultures*
• Power Distance
• Uncertainity Avoidance
• Individualism vs Collectivism
• Masculinity vs Femininity
• Long-Term Orientation vs Short Term
• Indulgence vs Restraint
* Minkov's World Values Survey data analysis for 93 countries
Confidential
Videos:
Good to Great
Global business
environment
Global business environment
 The period from 1990-2010 was one of growing
global economic integration and global value
chains
 Falling tariffs and creation of WTO in 1995
 Integration of China into world economy especially
after its WTO entry in 2001.
 Falling communication costs and rise of the
Internet
 Low-cost container-based transport
 In the last decade, globalization has slowed
down(“slowbalization”) and may even be reversing
itself with sharp decline in cross-border FDI flows
and bank loans.
Global value chains
 Increasingly in recent decades trade has been organized
through global value chains(GVC) where the different stages
of production are located in different countries.
 According to the OECD 70% of global trade now involves
GVCs
 East Asian countries have been the most successful in
integrating themselves in these GVCs.
 The rise of GVCs was also closely connected to management
trends like just-in-time delivery and lean inventory
management.
 Now as a result of trade wars and other geopolitical tensions,
these value chains may be shortening and changing in
character.
WDR 2020
Trade War
 One country raises import tariffs and its trading partners
retaliate.
 The US under the Trump administration was the most
aggressive in raising tariffs especially against China but also
Mexico, Canada and Europe.
 These tariffs raise prices in the importing country and
generally raise economic inefficiency
 They also raise business uncertainty which may depress
business investment and slow the global economy.
Slowbalization
Trade Wars and Technology
 Perhaps the risk of trade war are especially damaging in the
technology sector.
 Concerns about cyber-espionage and cyberwar
 Talk of a “splinternet” with different parts of the world having
different versions of the Internet
 Chinese companies like Huawei may be blocked from selling
equipment in sensitive areas
 Potential to raise technology costs and slow the rollout of new
technologies like 5G.
 Recently greater attention is being paid to social media apps
like TikTok, banned in India and other countries
Manufacturing Costs
Sectoral trends
 Automobiles: focused on three regional networks with three low-
cost spokes, Mexico for North America, Eastern Europe for West
Europe and China/South East Asia for Asia.
 In the long run, the rise of electric cars could massively reduce
the trade in automobile components.
 Clothing and footwear: highly labour intensive. As wages have
risen in China, companies are moving to Vietnam and
Bangladesh. China still remains strong in fabrics which require
complex machinery and automation.
 Electronics: There has been some movement to Vietnam and
recently to India but mainly at the low end. Shenzhen remains a
formidable force in electronics hardware.
India’s opportunity?
 As US-China trade tensions have risen, may
companies want to diversify away from China
with a China Plus One strategy.
 This could be a big opportunity for India but
in practice other countries like Vietnam have
done better in recent years.
 Vietnam has lower corporate tax rates, better
infrastructure and higher levels of literacy.
India merchandise
exports($billion)
Faster export growth in
Vietnam,Bangladesh
Issues for Indian manufacturing
 High cost of capital. Lowering public sector borrowing which crowds out
private investment. Develop corporate bond market so that companies
are less dependent on banks.
 Land Acquisition. Facilitate acquisition of land for factories,
infrastructure and cities.
 Infrastructure. Reduce cross-subsidies in infrastructure: especially
freight and electricity
 Labour. More flexibility in using labour. Improve worker skills including
vocational training.
 Scale. Indian manufacturing companies often lack the scale to compete
effectively in global markets. Large number of small-scale units which
lack the technology and capital to be highly productive.
Production linked incentives
 Introduced in 2020
 Production linked incentives (PLI), of around 4-6% of incremental
sales over the base year
 Rs. 2.4 lakh crores of incentives across 14 manufacturing sectors
including pharma, electronics, automobile, textiles, telecom
equipment etc.
 Over the last few years there has also been an increase in import
tariffs in certain sectors like electronics and automobiles.
 Overall these policies have boosted manufacturing in the targeted
sectors
 However questions remain: Tariffs will raise prices for domestic
consumers and may protect inefficient firms.
 Still unclear whether PLI will create genuinely competitive
manufacturing sectors which can be competitive even without
incentives.
RESOURCE BASED VIEW OF THE FIRM
What is the source of superior long-term corporate performance?
RBV says the tangible and intangible resources controlled by a firm
Tangible: Land, buildings, machinery, equipment. Control of raw
materials in particular can be valuable e.g. Saudi Armaco
Intangible: Brands, Intellectual property, Trademarks. Human capital
through employee training and experience. These are more likely to
provide differentiation and lasting value
To provide sustainable competitive advantage resources need to be
heterogenous and immobile.
VRIO
To build sustainable competitive advantage the firm needs to have
resources which are
Valuable
Rare
Costly to Imitate
And also the firm must be Organized to capture the value from these
resources.
E.g. Google and data-based employment management
IMPLICATIONS
CORE COMPETENCE
Closely related to the resource based view is the core competence
approach by CK Prahalad and Gary Hamel.
A core competence is defined as a "harmonized combination of
multiple resources and skills that distinguish a firm in the
marketplace"
Three characteristics of a core competence:

1. Difficult to imitate
2. Provides value to users
3. Can be applied in multiple industries
Examples
• Once a company develops a core
competency it can often redeploy it to other
industries:
Company Core competence Initial industry Diversification
Casio Miniaturization, precision Watch Pocket TVs
casing
Canon Optics, imaging Cameras Copiers,
scanners
Honda Engines, powertrains Cars, lawnmowers
motorcycles
Private Equity
 Private equity is capital investment in companies that are
not publicly traded.
 Source of funds can include pension funds, HNWI as well
other firms.
 Fee structure: e.g. 2% of assets and 20% of gross profits
 Somewhat ironically, some of the largest PE companies like
Blackstone are themselves traded companies.
 In India leading PE players include Blackstone, Carlyle
Group, KKR
 Leading sectors include BFSI, consumer tech and energy
Models
 Distressed funding: Underperforming companies
are purchased by PE firms, maybe delisted and
then turned around
 Leveraged Buyout: A PE firm identifies a target
and uses debt along with its own funds to acquire
it and turn it around after extensive restructuring
 Venture capital can also be considered a form of
PE and is important for tech startups.
Pros and Cons
 Advantages:
 Terms may be more favorable than bank loans or stock listings.
 If a company is de-listed it may have more time to turnaround than if
it faced constant public scrutiny.
 Disadvantages:
 Absence of secondary markets to liquidate holdings
 Pricing of shares of privately held companies less transparent
Private Equity in India
 PE/VC investments reached an all-time high of $70 billion in

2021.
 11 investments of more than $1billion compared to 6 in 2020.
 Areas of strength include consumer tech, IT and healthcare.
MERGERS AND ACQUISITIONS
Mergers: Two companies merge to form a new company. E.g.
Vodaphone-Idea
Acquisition: One company (usually larger) purchases a second
company, e.g. Walmart acquiring Flipkart
Horizontal Merger: Two companies in the same industry merge. E.g.
Tata Steel and Corus, Vodaphone and Idea
Vertical Merger: Company mergers with another company upstream
or downstream in the supply chain. E.g. Merger between AT&T and
Time Warner in 2018.
MERGERS: PROS AND CONS
Pro: 2+2=5
1. Economies of scale
2. Access to new markets
3. Reduce costs by eliminating duplication
4. Complementary strengths: e.g. company with good technology merges with
another with good marketing
5. Merger may increase pricing power (though good competition policy should
monitor this)
Anti: 2+2=3
1. Combining two corporate cultures is difficult
2. Making the merger work consumes a huge amount of management bandwidth
3. Mergers are often driven by over-optimism at unrealistic valuations
Digital & IT Strategy
2022-23
Dr Pradeep Pendse
Incharge Director Univ Programs CTO
Faculty in areas of E-business, Business Analysis, IT Project Maanagement,
Design thinking and Analytics
Weschool
Levels of Strategy
Organizational Tensions
Balancing
• Profit- Growth- Control
• Short Term - Long Term Profit
• Stakeholders Expectations
• Opportunities-Attention
• Motives of Human Behaviour
Control Growth
IT creates value – What is Value ? (BABOK)
• The worth, importance, or Usefulness / Evidence of Use

usefulness of something to a
stakeholder within a context
• Realized returns, gains an Returns/Profits
improvements
• Possible to have decrease in
value – loss, risk and costs Risks
• Tangible or intangible Intangibles

A few strategic Initiatives
• New Products • Differentiation (including cost)

• Market Penetration • Creating Barriers to Entry
• New markets and Geographies • Centralization / Distribution
• Forward Integration • Diversification / consolidation
• Backward Integration • Digital transformation
• Mergers and Acquisition • …..
• Internationalization
• Quality & Recalls
Sources of disruption
(Christensen)
• New markets emerge • Pain-points

• New technology emerges • Shift in Perception about Value
• New political rules • Changes in Customer Demographics
• Running out of road
• Change in market sentiment
• Deregulation
• Unthinkable events
• Business Model innovations
• Systemic changes to a sector
• Architectural innovations
13th Aug 2015 Copyright 2015 Dr Pradeep Pendse

Digital Transformation is the way organizations
are
changing their business models,
to meet
customer expectations
& achieve
operational efficiency,
in an environment where the lines between the
physical & digital worlds are blurred
Digital Transformation - What Do they seek to transform
Business Rules
Relationships
Business Models
Capabilities
Customer Customer
Experience Habits
How does IT Help In Transformation
• Business Process Transformation

• Business Network Transformation
• Business Scope transformation
Role of Technology
• Scalability & Reliability • Cloud - Own versus Multi-tenant

• Response time and Localization • Distributed Arch + Micro-Services
• Staying relevant • Social Listening, Analytics ,A/B Testing
• Provide Great CX • AR/VR , Chatbots, personalization
• Enable Organic Discovery /Growth • SEO, SEM, Targeting
• Encourage Transaction • Reco, End-to-End, Context based
• Support End to End Process • Process Automation, GIS, Digital Payments
• Encourage Loyalty • Architecture of Engagement
• Customer Lock-In • Proprietory Tech, Unique Synergies
• Collaborative commerce • API based seamless
• Cut costs / Improve Productivity • RPA, Automated Dev & Testing
• Connecting to the Physical World • IOT, Sensing Devices, phygital devices
• Revenue Leakages / Security/ Privacy • Biometrics, Image etc
Two sides of the same coin
Traditional Business
Pure Play Online Business

Traditional Businesses – to E-Business
Characteristics of a Digital Enterprise
Digital First On-Demand Sense & Respond Micro Services Engaging UI/ UX /CX
Transperancy Self-Help SMAC Data & Knowledge Scale, Flexibility , Resilience

Platform Based Businesses – Platform wars
• Digital Products and Platforms – Differentiation & CX

• First Mover
• Walled Gardens
• Disruption thru Open Source
• Winner takes all
• Positive and Negative Network Effects
• Adjacencies
• Economy of Scale and Economy of Scope
• Customer Lock-In
Characteristics and Challenges of Digital Pure Plays
Characteristics Challenges
• Everything Virtual • Being Discovered
• Built on Platforms • Open v/s Walled Gardens - Evolve
• Winner Takes all • First mover + Going Viral
• Global Presence • Deep Understanding of local needs
• Customer Motivation • Sensing Change in Customer need
• Thrive on good CX • Improve CX for higher loyalty
• A Unique Business Model • Pivot the Model with time
• Multisided • Competition & Managing all sides
• Complexity • Light Weight and simple v/s Heavy
• Multiple revenue Streams • When & How to Monetize
• Collect and Leverage Data • Availability, Privacy, Ethical concerns
Network Effects
Professional (User)
Recruiters Advertisers
Content Publishers
New Revenue Streams - Digital Revenue Streams
source - website : Motley Fool
• Connection
• Commercials
• Commerce
• Content
• Community
• Consulting
• Contracting
• Controlling
The Dimensions of Digital Commerce
The core of
electronic commerce
3rd Dimension –
is the process
Digital
Product
Physical Digital process

Product Physical process
Physical Digital Virtual delivery agent
Traditional agent agent
commerce
20
Think of CX as a Enterprise Strategy
Competitive Analysis of Industry Structure and Strategy
Competitive Analysis of Customer Experience
Defining Customer, Customer Experience Platform and Promise
Brand Communication Interfaces Products/ Culture /

Services Behaviour
Pradeep Pendse
18th Aug 2017
Collaboration as a Strategy
Collaboration Collaboration
with between
Supply/Value Competing
chain partners Players
Collaboration Industry Wide

between Players in collaboration –
different Industries Entire ecosystem
Maturity of IT
IT is an enabler
Maturity of supply
IT is a partner
IT is a service
IT is a Facility
Maturity of demand
IT Planning – Who Leads ?
Parker (1989), Henderson & Venkatraman (1993)
Business Strategy IT Strategy
Business IT Processes
Processes
11/18/2022 Management Information Systems 24

IT Strategy
- Alignment of IT Strategy
Business Strategy Organisational Strategy
Systems/IT Strategy
Alfred Chandler’s Strategy Trilogy

Direction of IT Investments
MacFarlan’s Strategic Grid
Impact
High Turnaround Strategic
Support Factory
Low
Low High Dependence

IT Strategy
-Direction of IT Investments
Impact
High ATMs in early 90s ATMs in the late 90s
ATMs today
Low
Low High Dependence

IT Portfolio
Strategic Contribution
Medium/Low Priority High Priority

High
Low Priority Medium Priority

Low
Low High
Financial Contribution
Evaluating IT Investments
Based on Value
B Soft
E Return on Mgmt R&D
N
E
F
I Financial Risk Analysis
T Hard
Hard Costs ‘Soft’

Blue Ocean Strategy Canvas – Position wrt Value Parameters
POA and the Agile Planning Horizons
The 3 Product Disciplines – POA role tries to bring role clarity
Product Artefacts
Other Factors which Influence IT decision
• Influence of Group level structures

• Industry Standards
• Regulatory Requirements
• Structure and Role of The IT Organisation
• Organisation Culture
• Energy Cycle
• Extent /Nature of Transformation/Innovation and Change envisaged
• Experience with Technology
• As-Is Technology Environment
• Context of Partner Organisations
• Risks
Direction of IT Investments
Impact
High Turnaround Strategic
Support Factory
Low
Low High Dependence

Evaluation of IT Strategy
- Adequacy Grid
Functional Adequacy
0,10 10,10
High
Low Scrap/Rewrite
10,0
0,0
Low High Technical
Robustness
Curating IT Porfolio for High Value
• What is the Current Health of the Company ?

• Where do we wish to Go from Here ?
• What new Capabilities are required ?
• Which Processes are expected to provide these Capabilities ?
• What IT Solutions can provide these capabilities ?
• What would be the outcomes ?
Define KPIs at each of the above stages

Value Measurement
Desired Input Process Outcomes Stakeholder

Capability
Financial
Process
Metrics
Money
Effort
Material
Other
Utilities
Technology Forecasting & Selection
Product Vision
High SAP
Ramco Marshall
Retek (retail ERP)

Low
Low Ability to Execute the Vision

Thank you
Pradeep.pendse@welingkar.org
9820076259
Big Data, Analytics, Machine
Learning, AI and their impact on
strategy
Trim IV Integrative Managers 11.10.2022
Prof. P.V. Chandrika
Points to be covered
• Introduction to Big Data
• What is AI?
• Introduction to Machine Learning
• Types of Machine Learning Algorithms
• Advantages & Disadvantages of ML Algorithms
• Use cases of Machine Learning Algorithms
• Application of Machine Learning Algorithms
Data
ThCC BY-NC-ND
This Photo by Unknown Author is CC BY-SA
This Photo by Unknown Autr CC BY-SA

What is Big Data:
• The term Big Data refers to the use of a set of multiple technologies,
both old and new, to extract some meaningful information out of a
huge pile of data.
• The data set is not only large but also has its own unique set of
challenges in capturing, managing, and processing them.
Characteristic of Big Data
50,000 Google Search
2.3 trillion
4,000 tweets
gigabytes of data
1,25,000 you tube
a day
videos each second
Volum
Volume
Velocity
Velocity
e
Variety Veracit
Structured or Variety Veracity
y
Unstructured Discrepancy ,
Data Sources Trustworthy
Characteristics of Big Data:
• Volume: Volume refers to the sheer size of the ever-exploding data of
the computing world. It raises the question about the quantity of
data.
• Velocity: Velocity refers to the processing speed. It raises the question
of at what speed the data is processed.
• Variety: Variety refers to the types of data. It raises the question of
how disparate the data formats are.
Structured Data & Unstructured Data
Structured Data Relational Database
Text, Images, Numbers

Unstructured Data etc.,
This Photo by Unknown Author is li CC BY-SA
This Photo by Unknown Author is licensed und CC BY
Structured Data -
Healthcare
This Photo by Unknown Author is licensed under CC BY
Un-structured Data -
Healthcare
Types of Data contd….
• Structured Data:
• Structured data is information that is highly organized (e.g., an Excel
spreadsheet).
• Structured data is preferable because it is easy to connect to and search,
especially when stored in a relational database.
• Compiling this data and preparing it for analysis is also easy to accomplish.
Unstructured Data
• Unstructured data can’t be easily stored in a traditional column-row
database or spreadsheet like a Microsoft Excel table.
• It’s therefore more difficult to analyze and not easily searchable,
which is why it wasn’t useful for organizations until recent years.
• Today, however, we have unstructured data analytics tools powered
by artificial intelligence (AI) that were created specifically to access
the insights available from unstructured data.
Artificial Intelligence
Machine Deep
Learning Learning
Artificial Intelligence
Act Like
Human!
It is the intervention of human intelligence with machines
which are been programmed in such a way that it can think like
humans and mimic their actions.
It refers to the simulation of human intelligence in machines.
The goals of artificial intelligence include learning,
reasoning, and perception
Examples of Artificial Intelligence:
1. Self Driving Car

2. Playing Chess on Computer
Requirements of Artificial Intelligence
What is Machine Learning?
Thinks Like
Human!
• Machine Learning is a part of Artificial

Intelligence in which a computer is
trained to think like an human.
• Machine will be given with a set of
rules/instructions. This helps to avoid
human intervention.
How Machine can learn?
Machine
Learning
Supervised
UnSupervised
Learning
Learning
Reinforcement
Learning
Examples of Supervised Learning
HOUSE PRICES WEATHER UNHAPPY

PREDICTION CUSTOMERS
Supervised Learning Vs Unsupervised
Learning
This Photo by Unknown Author is licensed under CC

This Photo by Unknown Author is licensed under CC BY-SA-NC BY-SA-NC
Supervised Learning
• Linear Regression
Regression
• Logistic Regression
• Decision Tree
Analysis
• KNN
Classification
• SVM
• Naïve Bayes
Classifier
Unsupervised Learning
• K-Means Cluster
Clustering
• K-Medoids
• Principle
Component
Dimensionality
Reduction
Analysis
• Market Basket
Analysis
Amazon Go
Deep Learning
10−1 Sec to visually recognise method.
Highly Parallel Processes operating on

neurons that are distributed.
Motivated for generating of

Neural Networks
Application of Neural Networks
Analytics
Analytics
How to INCREASE Customer Retention?
How to MAXIMIZE Profits?
How to INCREASE Productivity of Worker?
What does this IT initiatives really cost?

Analytics
?
? ?
? Question ?
?
?
Hypothesis
?
Business
Analytics
Analyzing the data by applying statistical and Understanding the data to draw and deriving
mathematical techniques to draw some business decisions – Business Analytics.
meaningful inferences – Business Analytics.
Types of Analytics
Descriptive Predictive Prescriptive

Analytics Analytics Analytics
Descriptive Analytics
Historical Data – Comparitive Strengths and

Interpretation Studies Weaknesses
Example
• Past from 10 years how the sales of the company are?
• Whether the cost of production has increased when
compared to the past?
Example
Descriptive Analytics
Descriptive Analytics is the examination of data or content, usually manually performed,

to answer the question “What happened?” (or What is happening?), characterized by
traditional business intelligence (BI) and visualizations such as pie charts, bar charts, line
graphs, tables, or generated narratives.
- Gartner
Descriptive analytics is a statistical method that is used to search and summarize

historical data in order to identify patterns or meaning.
Metrics used
•
Important Points
It is beginning of any analytics projects that uses data summarization, descriptive

statistics, visualization and queries to gain insights about what happened in the
past.
Data visualization is an integral part of descriptive analytics.
It helps in further analysis of the data by identifying relationships that exists in

data.
Hints for developing predictive analytics models

Predictive Analytics
Examples
• Identify customers that are likely to abandon a service or product.
• Identify customers who are likely to use the APP?
• Send marketing campaigns to customers who are most likely to buy.
• Identify the customers who can be sanctioned with the Loan.
Prescriptive Analytics
Use of technology Possible situations or Helps to make

scenarios, available
to help businesses resources, past decisions on any
make better performance, and current time horizon, from
decisions. performance, and
suggests a course of
immediate to long
action or strategy. term.
Examples of Prescriptive Analytics
AIR BAGS IN A CAR. FARE PRICES OF AIR

LINES.
Types of Data
Quantitative Qualitative
Data Data
• Numbers • Text
dominated dominated
Qualitative Data
NOMINAL ORDINAL INTERVAL

Scenario
The Bank of Kala Bakra (BKB) situated in Bakrapur, India receives several applications
for home loan and home improvement loan.
Data Description:
1. Customer ID
2. Type of Loan (2 types: Home Loan and Improvement Loan)
3. Gender (Male and Female)
4. Marital Status (Married and Single)
5. Accommodation Type: (Family, Other, Company Provided, Owned, Rented)
6. Number of years in current Address.
7. Number of years in current job.
8. Monthly Salary in Indian Rupees.
9. Balance in savings account.
10. Loan Amount Requested.
11. Term (loan term in months)
12. Equal Monthly Instalments (EMI) affordable.
Scenario
The Manager of the Bank wants to understand
1. Average Loan Amount Requested based on Gender.

2. Loan Amount Requested varies with respect to Marital Status
3. Whether there is a relationship between No. of Years in current job and monthly salary.
4. To understand Salary and Affordable EMI.
5. Group the customers based on
1. Affordable EMI
2. Monthly Salary
3. No. of years in current job.
Unsupervised Learning
• Unsupervised Learning is a machine learning technique in which the
users do not need to supervise the model. Instead, it allows the
model to work on its own to discover patterns and information that
was previously undetected.
• It mainly deals with the unlabeled data.
When to use Unsupervised Learning
Algorithms
• When data has no desired outcomes, such as determining a target
market for an entirely new product that your business has never sold
before.
• Unsupervised machine learning purports to uncover previously
unknown patterns in data.
• Unsupervised Learning Algorithms allow users to perform more
complex processing tasks compared to supervised learning.
Clustering
• Clustering allows you to automatically split the dataset into groups
according to similarity. Often, however, cluster analysis overestimates
the similarity between groups and doesn’t treat data points as
individuals. For this reason, cluster analysis is a poor choice for
applications like customer segmentation and targeting.
Anomaly detection
• Anomaly detection can automatically discover unusual data points in
your dataset. This is useful in pinpointing fraudulent transactions,
discovering faulty pieces of hardware, or identifying an outlier caused
by a human error during data entry.
Association mining
• Association mining identifies sets of items that frequently occur
together in your dataset. Retailers often use it for basket analysis,
because it allows analysts to discover goods often purchased at the
same time and develop more effective marketing and merchandising
strategies.
Supervised vs. Unsupervised Lerning
Parameter Supervised Learning Unsupervised Learning
Dataset Labelled Unlabelled
Method of Learning Guided learning The algorithm learns by itself using dataset
Complexity Simpler method Computationally complex
Accuracy More Accurate Less Accurate

AI and Algorithms are everywhere around us
Examples of sector-specific applications of AI Logistics
Transportation &
Industrial Manufacturing Leisure
Banking & Public Sector Algorithms for
automated vehicle
Insurance • Improve demand forecast routing
• Detect Tax fraud accuracy and to reduce Predict and detect
Predict/ identify energy costs traffic conditions Infrastructure
• Allocate children to schools
potential misuse of • Assess the risk of child • Predict maintenance
credit cards abuse
Designing an optimal
Healthcare transit network.
Consumer Goods, Food
Energy, & Natural Media & Telecoms & Drink Retail • Computerized
health diagnostics
Resources algorithms
• Algorithms to assign news • Identify patterns in • Predictive Professional
articles to users Define consumer profiles and purchase behavior to hospitalization
Determine optimal • Algorithms to detect fake optimize marketing spend develop relevant algorithms. & Business
production capacity per news offers services
machine • Understand and
predict the demand
curve of a product. • Sorting of
Technology resumes and job
applications
• Automatically
• Search engine perform audit
algorithms procedures
• Automatic face • Enable due-
diligence services
recognition for different
purposes.
ML Pipeline

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Integrative Manager:

Government consumption: 12.10%

Investment in fixed capital: 26.60%

• Large-scale, future-oriented plan for interacting with the competitive

Mid 2006 1 Aircraft Received

• Synonyms: master plan, grand design, game plan, plan of

• The art of planning and directing overall military operations

• Synonyms: the art of war, military science, military tactics;

Audit Current Where Define Vision

• Strategy should deliver Sustainable (long term, durable)

• Strategy should be a blend of PROACTIVE & REACTIVE (ratio

Value proposition Resources

• Corporate Strategy is stated in the mission statement,

• War is a matter of vital importance to the State

• Warfare is based on deception

• Speedy victory is the main object in war

• Generally best policy is to take state intact

• Art of using troops

10 to enemy’s 1 – surround him

• For an established business where the Mission is

• Research shows that employees who find their

Before determining, what your Vision statement is,

"Your Vision statement is where your "Your Mission statement is your

A vision statement is created through a "A company’s Mission, purpose, goals

• Dream big and focus on success.

• Use the present tense.

• Use clear, concise and jargon-free language.

• Infuse it with passion and emotion.

• Align it with business values and goals.

• Curriculum Design & Improvement

• Education on Design Thinking and Innovation

• Contribution to Industry & Society

For a company, a credo is equivalent to a Mission

• Breakthrough thinking & breakthrough execution

• Result oriented process driven work ethic

• We link & care

• Levy Strauss: “we will clothe the world by marketing the

• Nike: “to bring innovation & inspiration to every athlete

• Mayo Clinic: “the best care to every patient every day”

• Vision: To create the most compelling car company of the

• Mission: To accelerate the world’s transition to

• Mission: We strive to offer our customers the lowest

• Mission: To connect the world’s professionals

• Mission: To organize the world’s information and

• Mission: Transportation as reliable as running water,

• Vision: Tapping into the universal human yearning to

• Mission: Belong anywhere.

• Mission: Utilize the power of Moore’s Law to bring

• Mission: We build cars, symbols of Italian excellence the

• Mission: To attract and attain customers with high-

• Mission: Become one of the world’s top five

• Vision: To create a better everyday life for the

• Vision: People use Facebook to stay connected with

• Mission: To give people the power to build

• The macro-environmental (external marketing

• The result of which is used to identify threats and

• Governments levy fines upon companies for polluting.

• Companies are also rewarded for having

positive impact on the environment.

• Consumers reject brands if they find manufacturers

unnecessary legal costs

• New legislations need scrutiny & adherence

• New legislations may open up opportunities