1.Tapan Shah

2.Punit Kamdar

3.Apar rastogi

Business Strategy: The Concept and Trends in Its ManagementPPT 1-2

What is Strategy?

Business Strategy: The Concept and Trends in Its ManagementPPT 1-3

“Strategy is the creation of a unique and valuable position, involving a

different set of activities.”

“Strategy is a framework which guides those choices that determine

the nature and direction of an organization.”

Business Strategy: The Concept and Trends in Its ManagementPPT 1-4

“In terms of the three key players (competitors, customers, company)

strategy is defined as the way in which a corporation endeavors to differentiate itself positively from its competitors,

using its relative corporate strengths to better satisfy customer needs.”

-Kenichi Ohmae“The Mind of the Strategist”

About book and author

•It is wrriten by Kenichi Ohmae

•First published in japan,1975

•All about the art of japanese business

•The author is the famous Mckinsey consultant

•Book is full of charts and jargons.

What you will learn from this book?

1. How japanese people think about strategy

2. How you should conceptualize and execute your strategy

The point of begining

•Secret of japanese business

•They don’t have army of strategic planners

•They have some remarkable insights

•Three kinds of thinking processMechanical system thinking (rearrangement of elements)Intuition (local optimization)Strategic thinking (transformation or changed

configuration)

How your strategy should begin

•Strategy is always and everywhere the product of an atitude and the way of thinking

•It begins with analysis

•Strategy is intuitive , but it is also analytical ; it is analytical, but also intuitive.

Main issue

•Identify the issue that matters the most-critical issue

•To do this frame the questions properly

•Each question would elicit a different response

•A disciplined method can help anyone arrive at a workable definition of the critical issue

Methodology

• Diagram the issue or questions(eg., Can we lower the cost on this product?).

• Identify the issue components(eg., Fixed costs, variable costs, design specs?).

• Question each component and look at the advantage and disadvantage of changing that component.(eg., Can we change the designs specs to use cheaper material?)

• Offer a specific plan of action for each issue component.

Four strategic paths

1. Re-allocate resources.

2. Focus on one’s relative strength.

3. Redefine the key issue of the business by a bold stroke

4. Be free.

From above Methodology

Using above methodology , you will avoid some of the great errors of strategy including:

• Tunnel vision

• All or nothing

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The Strategic Triangle

Consists of the Customer, the company and competitors

The company and competitors deliver value to the customer

The company and competitors compete on cost The company recognises different customer

segments and determines value to each segment accordingly

The company recognises the competitors in each segment and attempts to better its cost bases vis-à-vis the competition

Strategic triangle

Company based

strategy

Customer based

strategy

Competitor based

strategy

Take away

•The purpose of business strategy is to cause events to favor

your strengths.

•Identify your strengths and build on them.

•Every industry has a key success factor-know yours.

•Penetrate appearances.

•Address the problem, not the symptoms.

•Know what separates winners from losers in your industry and

your market.

Conti……

•Analyze potential improvements in terms of cost, benefit and

strategic advantage.

•Keep track of customer and market trends-even though

customers may not know what they want.

•Know the difference between a “business” and a “product.”

•Think like an entrepreneur, but think.