S2 Strategic Management Process

Dr. Gurudas Nulkar

Gurudas Nulkar
 Finance Operations

Strategic
Management Goals
Process

Human
Marketing
Resources

What determines the total Corporate Performance of an enterprise?

Gurudas Nulkar
Strategic Management Process

Strategic Management Process is activity used to :

Set goals, priorities

Focus energy, resources

Align stakeholders to goals

Agree on outcomes and results

Assess and adjust efforts

Disciplined effort

Gurudas Nulkar
The Strategists’ challenge

Values
What is our vision and
mission?
What does our
organization value?
How should we be
seen by others?

Gurudas Nulkar
The Strategists’ challenge

Values
What is our vision and
mission?
What does our
organization value?
How should we be
seen by others?

Opportunities
Which ones to
pursue?
Making a choice to
focus investments and
efforts.

Gurudas Nulkar
The Strategists’ challenge

A good strategist
must visualize this
Values sweet spot; and
What is our vision and choose the path to
mission? approach it !
What does our
organization value?
How should we be
seen by others?

Opportunities Capabilities
What are our current
Which ones to
capabilities? In which
pursue?
do we have an
Making a choice to
advantage? What new
focus investments and
capabilities to invest
efforts.
in?

Gurudas Nulkar
Successful Strategy requires -

Where do we
compete?
How do we execute?

n it y

Resources, capabilities
Tools and frameworks to

Exec
ortu
Identify the market

uti
opportunity Tools and framework to
p

on
et op understand how to execute
the strategy
Mark

How do we compete?

Tools & framework to

identify internal resources
and capabilities to seize the
Gurudas Nulkar market opportunity
Good Strategy

Executive whims versus carefully thought out strategy

Strategic planning and management is a process

THE FIRM THE INDUSTRY

ENIVRONMENT
Goals & Values
Resources &
Competitors
capabilities
Customers
Structures & Strategy
Collaborators
Systems

Gurudas Nulkar
Strategic Management Model

Develop Vision,
Mission
OT, 5-Forces,
Priority Matrix, SW, Value Chain,
PESTLE, Competi VRINHS
External Internal
Strategy Formulation Environment Define Goals
Environment

Balanced
Strategy Scorecard,
formulation Strategy Maps

Strategy Implementation
Implementation & McKinsey 7-S
Tactics framework, BCG
analysis

Strategy Evaluation Performance Balanced

Measurement Scorecard
Gurudas Nulkar
Strategic Management Model

Develop Vision,
Mission

Sustainable Competitive Advantage > higher returns

External Internal
Define Goals
Environment Environment

Strategy
formulation

Implementation &
Tactics

Performance
Measurement
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Strategic Analysis

We define strategic analysis as the assessment

of an organization's current competitive
position and the identification of valuable
competitive positions in the future and how to
achieve them.

Gurudas Nulkar
Strategic Analysis

Mission What is our purpose? What do we do?

Vision What is our picture for the future?

Values What are our guiding principles?

Objectives What are the activities of continuous improvement?

Strategy Map How do we create value?

Performance Measures What do we measure?

Which projects and programs will

Strategic Initiatives
connect with results?

Gurudas Nulkar
Hierarchy of Strategy

Corporate Strategy

Business Unit Strategy

Functional
Strategy

CASE : Strategic hierarchy at Godrej

Gurudas Nulkar
Hierarchy of Strategy

Differences –
• Level of management that is involved
• Deployment of resources
Corporate Strategy
• Time frame
Business Unit
• Corrective actions Strategy

Functional
Strategy

Gurudas Nulkar
 3 Building blocks of good Strategy

• Consistent set of Goals and Objectives

Objectives

• Clear scope – what will not be done.

• Strong alignment of the external Scope
opportunities and firm’s strengths &
Strategic Fit
• Identify and build Competencies for
Competitive advantage
Competitive Advantage

Gurudas Nulkar
Strategy statement of a Wealth Management firm

• To grow to 17,000 financial advisers by 2012 by offering

trusted and convenient face-to-face financial advice to
conservative individuals who delegate their financial decisions,
through a national network of one-financial-adviser offices.

Gurudas Nulkar
Strategy statement
Objectives

– Specific, measurable, time-bound

• To grow to 17,000 financial advisers by 2012

• To grow to 17,000 financial advisers by 2012 by offering

trusted and convenient face-to-face financial advice to
conservative individuals who delegate their financial
decisions, through a national network of one-financial-
adviser offices.
Gurudas Nulkar
Strategy
Scope
&
Strategic Fit

SCOPE : For Edward Jones:

» Individuals, Conservative, Delegators
» Not B2B, not do-it-yourself
STRATEGIC FIT
» National network
Residential locations, not downtown

• To grow to 17,000 financial advisers by 2012 by offering

trusted and convenient face-to-face financial advice to
conservative individuals who delegate their financial
decisions, through a national network of one-financial-
adviser offices.
Gurudas Nulkar
Strategy statement
Competitive Advantage

Means
• Why should customers buy your product or service
• Edward Jones : trusted and convenient face-to-face
financial advice to conservative individuals

• To grow to 17,000 financial advisers by 2012 by offering

trusted and convenient face-to-face financial advice to
conservative individuals who delegate their financial
decisions, through a national network of one-financial-
adviser offices.
Gurudas Nulkar
Strategy statement
Competitive Advantage
COMPETITORS CUSTOMERS
offerings needs

Competitive
Advantage COMPANY’S
capabilities

• To grow to 17,000 financial advisers by 2012 by offering

trusted and convenient face-to-face financial advice to
conservative individuals who delegate their financial
decisions, through a national network of one-financial-
adviser offices.
Gurudas Nulkar
Strategy statement of a Wealth Management firm

• To grow to 17,000 financial advisers by 2012 by offering trusted and

convenient face-to-face financial advice to conservative individuals who
delegate their financial decisions, through a national network of one-
financial-adviser offices.

•"Highest in Investor Satisfaction" by J. D. Power

2002, 2005, 2006, 2007, 2009, 2010, 2012, and
2013.
•Ranked No. 1 in the annual SmartMoney magazine
full-service brokerage survey. The firm received high
marks in the four categories surveyed by the
magazine: stock picking, customer satisfaction, trust
and customer statements.
•Number 4 in the list of "Best Companies to Work
for in America" by Fortune (2014).
Gurudas Nulkar
 Toughest part - Defining the scope
Edward Jones
Derek Abell Three Dimensional Model Who – Conservative individuals who
delegate
What – Trust
How – Face-to-face

What
Harley Davidson
Who – Independent, mid age, high
income
How
What – Cult following, Belonging
How – Brand legacy
FastTrack
Who – Teens, Youth
What – Fashion, Variety, Price
How – International design, Trends
Who
Box8
Who – Business, singles,
What – Choice, Delivery
How – Logistics, technology
Gurudas Nulkar
 Strategy mistakes!

Competing to be the best

Serving more customers; building more features

Overestimating strengths

Defining the business wrong

Gurudas Nulkar