ASSIGNMENT

Course/Drive/Semeste r Subject code & name Student Regd No, & Name MBA / Fall 2013 / Sem-IV MB0052 Strategic Management and Business Polic 31123!"15 #e$asis% Prad%an

1.Write Short notes on the following: a. Value Chain Analysis. b. Corporate Restructuring. Ans A! "a#ue C$ain Ana#%sis Value &%ain Anal sis is a use'ul tool 'or (or)ing out %o( ou can create t%e greatest *ossi$le +alue 'or our customers, In $usiness- (e.re *aid to ta)e ra( in*uts- and to /add +alue/ to t%em $ turning t%em into somet%ing o' (ort% to ot%er *eo*le, 0%is is eas to see in manu'acturing- (%ere t%e manu'acturer /adds +alue/ $ ta)ing a ra( material o' little use to t%e end-user 1'or e2am*le- (ood *ul*3 and con+erting it into somet%ing t%at *eo*le are *re*ared to *a mone 'or 1e,g, *a*er3, But t%is idea is 4ust as im*ortant in ser+ice industries- (%ere *eo*le use in*uts o' time- )no(ledge- e5ui*ment and s stems to create ser+ices o' real +alue to t%e *erson $eing ser+ed t%e customer, And remem$er t%at our customers aren.t necessaril outside our organi6ation7 t%e can $e our $osses- our co(or)ers- or t%e *eo*le (%o de*end on ou 'or (%at ou do, 8o(- t%is is reall im*ortant7 In most cases- t%e more +alue ou create- t%e more *eo*le (ill $e *re*ared to *a a good *rice 'or our *roduct or ser+ice- and t%e more t%e (ill t%e )ee* on $u ing 'rom ou, 9n a *ersonal le+el- i' ou add a lot o' +alue to our team- ou (ill e2cel in (%at ou do, :ou s%ould t%en e2*ect to $e re(arded in line (it% our contri$ution, So %o( do ou 'ind out (%ere ou- our team or our com*an can create +alue; 0%is is (%ere t%e /Value &%ain Anal sis/ tool is use'ul, Value &%ain Anal sis %el*s ou identi' t%e (a s in (%ic% ou create +alue 'or our customers- and t%en %el*s ou t%in) t%roug% %o( ou can ma2imi6e t%is +alue7 (%et%er t%roug% su*er$ *roducts- great ser+ices- or 4o$s (ell done, Value &%ain Anal sis is a t%ree-ste* *rocess7

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Course/Drive/Seme ster Subject code & name Student Regd No, & Name

MBA / Fall 2013 / Sem-IV MB0052 Strategic Management and Business Polic 31123!"15 #e$asis% Prad%an

2, Acti+it Anal sis7 First*roduct or ser+ice,

ou identi'

t%e acti+ities

ou underta)e to deli+er

our

3, Value Anal sis7 Second- 'or eac% acti+it - ou t%in) t%roug% (%at to add t%e greatest +alue 'or our customer, !, =+aluation and Planning7 0%irdl c%anges- and t%en *lan 'or action, &! Cor'orate Restructuring

ou (ould do

ou e+aluate (%et%er it is (ort% ma)ing

&or*orate restructuring means an organi6ational c%ange to create a more e''icient or *ro'ita$le enter*rises, Similar terms (%ic% are used 'or >restructuring? are >re+am*ing?- >regrou*ing?- >rationali6ation? or >consolidation?, &or*orate restructuring %as t%ree meanings or connotations7 organi6ational restructuring$usiness-le+el restructuring and 'inancial restructuring, 9rgani6ational restructuring means t%e c%anges in t%e structure o' t%e organi6ation @ c%anging or reducing %ierarc%ies or de-la ering- do(nsi6ing- i,e,- reducing t%e num$er o' em*lo ees- redesigning *ositions- reallocation o' 4o$s or *ort'olios or c%anging t%e re*orting s stem, Business-le+el restructuring 1a**lies to multi$usiness organi6ations3 deals (it% c%anges in t%e com*osition o' a com*an ?s $usinesses or *roduct *ort'olios, 0%e c%anges are done on t%e $asis o' mo+ements in mar)et s%are or *er'ormance o' di''erent $usinesses or *roducts to im*ro+e e''icienc or *ro'ita$ilit at t%e cor*orate le+el, Financial restructuring is concerned (it% c%anges in 'inancial management in terms o' e5uit *attern or e5uit %oldingsde$t-e5uit ratio- $orro(ing *attern- de$t ser+icing sc%edule- etc, More common 'orms o' restructuring are organi6ational restructuring and $usiness-le+el restructuring, Sometimes- (%en ma4or crisis de+elo*s- restructuring ma $e com*re%ensi+e- (%ic% ma simultaneousl in+ol+e- rat%er com$ine- $usiness-le+el restructuring- organi6ational restructuring and e+en 'inancial restructuring, 0%is ma %a**en more during a turnaround situation 1discussed later3, Aestructuring is essentiall an ada*tation strateg , It is a$out ada*tation to c%ange and is mostl incremental in nature, In contem*orar $usiness- most com*anies are in t%e *rocess o' constant c%ange, 9'ten older com*anies re5uire more restructuring t%an t%e ne(er ones, 0%is ma %a**en 'or a num$er o' reasons, First- t%ose com*anies mig%t %a+e o+er-di+ersi'ied including di+ersi'ication into unrelated areasB secondt%e organi6ational structure mig%t $e +er %ierarc%ical not 'itting into a d namic mar)et en+ironmentB t%ird- t%ere mig%t $e a conser+ati+e 'inancial management s stem in relation to 'unds 'lo( and in+estments, A sur+e $ t%e All India Management Association 1AIMA3 s%o(s t%at cor*orate restructuring is a continuous *rocess- and- in India- it accelerated a'ter 1""1 (it% t%e initiation o' t%e li$erali6ation *rocess, 0%e main o$4ecti+e o' restructuring in t%e Indian com*anies (as to gain customer 'ocus,1 Anot%er researc% stud on cor*orate restructuring re+ealed t%at most o' t%e restructuring e2ercises carried out $ t%e Indian com*anies a'ter 1""1 (ere at $usiness *ort'olio le+el 'ollo(ed $ c%anges in o(ners%i* or s%are%olding structure, 0%e instruments o' restructuring in t%ese com*anies (ere *rimaril 4oint +entures- mergers and ac5uisitions and 2<Page

Course/Drive/Seme ster Subject code & name Student Regd No, & Name

MBA / Fall 2013 / Sem-IV MB0052 Strategic Management and Business Polic 31123!"15 #e$asis% Prad%an

di+ersi'ication into ne(l o*ened sectors li)e *o(er and telecom, 0%ese are actuall e2*ansion strategies and are discussed in detail in t%e ne2t unit, 0%e conclusion o' t%e stud is t%at large traditional $usiness %ouses- medium-si6ed enter*rises o' recent origin and *u$lic sector enter*rises are t%e ma4or *artici*ants in restructuring- t%eir *rimar concern $eing deli+ering $etter s%are%older +alue, 2.Differentiate between mission an !ision of a company" #$plain with e$amples. Ans %&SS&'( >A $usiness is not de'ined $ its name- statutes or articles o' incor*oration, It is de'ined $ t%e $usiness mission, 9nl a clear de'inition o' t%e mission and t%e *ur*ose o' t%e organi6ation ma)e *ossi$le clear and realistic $usiness o$4ecti+es,? @ Peter #ruc)er But >,,, $usiness mission is so rarel gi+en ade5uate t%oug%t is *er%a*s t%e most im*ortant single cause o' $usiness 'rustration,? @ Peter #ruc)er 0%is em*%asi6es t%e need 'or organi6ations to ta)e t%eir mission statement seriousl and 'ormulate it *ro*erl , C%at is a mission statement; 9r- (%at is a com*an mission; 0%e mission statement o' a com*an is +ariousl called a statement o' *%iloso*% - a statement o' $elie's- a statement o' *ur*ose and- a statement o' $usiness *rinci*les, A mission statement is man in one, It em$odies t%e $usiness *%iloso*% o' a com*an ?s decision ma)ers- im*lies t%e image t%e com*an (is%es to *ro4ect 'or itsel'- re'lects t%e com*an ?s sel'-conce*tB indicates t%e com*an ?s *rinci*al *roduct or ser+ice areas and- t%e customer needs t%e com*an see)s to satis' , In s%ort- it descri$es t%e com*an ?s *roduct- mar)et and tec%nological 'ocusB and it does so in a (a t%at re'lects t%e +alues and *riorities o' t%e com*an ?s strategic decision ma)ers, E(am'#e Mission statements o' indi+idual com*anies +ar e2am*les- mission statements o' 'ollo(ing com*an Tata Iron and Stee# Com'an% )TISC*+ 0%e 'undamental mission o' 0IS&9 10ata Iron and Steel &om*an DimitedB no( 0ata Steel3 is to strengt%en India?s industrial $ase t%roug% increased *roducti+it e''ecti+e utili6ation o' man*o(er and material resources- and continued a**lication o' modern scienti'ic managerial met%ods as (ell as t%roug% s stematic gro(t% in )ee*ing (it% t%e national as*irations, 0%e com*an recogni6es t%at (%ile %onest and integrit are t%e essential ingredients o' a strong and sta$le enter*rise*ro'ita$ilit *ro+ides t%e main s*ar) 'or economic acti+it , It a''irms its 'ait% in democratic +alues and in t%e im*ortance o' success o' indi+iduals- collecti+e and cor*orate enter*rise 'or t%e emanci*ation and *ros*erit o' t%e countr , Euided $ 3<Page (idel , Ce gi+e $elo(- as

Course/Drive/Seme ster Subject code & name Student Regd No, & Name

MBA / Fall 2013 / Sem-IV MB0052 Strategic Management and Business Polic 31123!"15 #e$asis% Prad%an

its $asic *%iloso*% - t%e com*an $elie+es in disc%arging its res*onsi$ilit to(ards s%are%olders- em*lo ees- customers and t%e communit , V&S&'(: 0%is %as re'ers to a com*an ?s s*eci'ic intentions t%at are $road- all-intrusi+e and 'or(ard-t%in)ing, Sometimes- >mission? and >+ision? o' a com*an are used s non mousl or interc%angea$l , 0%is is not correct, A clear distinction e2ists $et(een t%e t(o, Mission is concerned more (it% t%e *resentB t%e +ision more (it% t%e 'uture, 0%e mission statement ans(ers t%e 5uestion7 >C%at is our $usiness;? 0%e +ision statement ans(ers t%e 5uestion7 >C%at do (e (ant to $ecome or- (%ic% (a s%ould (e $e going;? 0%e mission statement 'ocuses on t%e *resent strategic t%rust- (%ile t%e +ision statement outlines t%e strategic *at%, All +isionar com*anies %a+e a +ision statement, 0%e +ision o' Microso't 1since 1"""3 %as $een >to $road $ase its outloo) to em*o(er *eo*le t%roug% great so't(are an time- an (%ere and on an de+ice including t%e P& and an incredi$l ric% +ariet o' digital de+ices accessing t%e *o(er o' t%e Internet?, Most *rogressi+e com*anies de+elo* $ot% a mission statement and a +ision statement, Indian 9il &or*oration 1I9&3 is a good e2am*le, Vision and mission statements o' I9&! are7 Vision7 Indian 9il aims to ac%ie+e international standards o' e2cellence in all as*ects o' energ and di+ersi'ied $usiness (it% 'ocus on customer delig%t t%roug% 5ualit *roducts and ser+ices, Mission7 Maintaining national leaders%i* in oil re'ining- mar)eting and *i*eline trans*ortation,

Vision and mission statements can $e generall 'ound in t%e $eginning o' annual re*orts o' com*anies, 0%ese statements are also seen in t%e cor*orate or long-term strategic *lans o' com*anies, 0%ese also a**ear in man com*an re*orts or documents li)e customer ser+ice agreements- loan re5uests- and la$our relations contracts- etc, Man com*anies also dis*la t%em at *rominent *oints or locations in com*an *remises, 3.Differentiate between mission and vision of a company? Explain with examples. Ans Mission Statement >A $usiness is not de'ined $ its name- statutes or articles o' incor*oration, It is de'ined $ t%e $usiness mission, 9nl a clear de'inition o' t%e mission and t%e *ur*ose o' t%e organi6ation ma)es *ossi$le clear and realistic $usiness o$4ecti+es,? @ Peter #ruc)er

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Course/Drive/Seme ster Subject code & name Student Regd No, & Name

MBA / Fall 2013 / Sem-IV MB0052 Strategic Management and Business Polic 31123!"15 #e$asis% Prad%an

But >,,, $usiness mission is so rarel gi+en ade5uate t%oug%t is *er%a*s t%e most im*ortant single cause o' $usiness 'rustration,? @ Peter #ruc)er 0%is em*%asi6es t%e need 'or organi6ations to ta)e t%eir mission statement seriousl and 'ormulate it *ro*erl , C%at is a mission statement; 9r- (%at is a com*an mission; 0%e mission statement o' a com*an is +ariousl called a statement o' *%iloso*% - a statement o' $elie's- a statement o' *ur*ose and- a statement o' $usiness *rinci*les, A mission statement is man in one, It em$odies t%e $usiness *%iloso*% o' a com*an ?s decision ma)ers- im*lies t%e image t%e com*an (is%es to *ro4ect 'or itsel'- re'lects t%e com*an ?s sel'-conce*tB indicates t%e com*an ?s *rinci*al *roduct or ser+ice areas and- t%e customer needs t%e com*an see)s to satis' , In s%ort- it descri$es t%e com*an ?s *roduct- mar)et and tec%nological 'ocusB and it does so in a (a t%at re'lects t%e +alues and *riorities o' t%e com*an ?s strategic decision ma)ers, 0%e mission statement s%ould $e as e2*licit or com*re%ensi+e as *ossi$le, Some 'eel t%at t%e mission statement s%ould %a+e se+en dimensions or ser+e se+en di''erent *ur*oses or o$4ecti+es, 0%ese are7 F 0o ensure unanimit o' *ur*oses (it%in t%e organi6ation F 0o de+elo* a $asis or standard 'or allocating organi6ational resources F 0o *ro+ide a $asis 'or moti+ating t%e use o' t%e organi6ation?s resources F 0o esta$lis% a general culture or organi6ational climateB 'or e2am*le- to suggest a $usiness-li)e a**roac% F 0o 'acilitate t%e translation o' o$4ecti+es and goals into 4o$s and res*onsi$ilities and assignment o' tas)s to res*onsi$le segments (it%in t%e organi6ation F 0o ser+e as a 'ocal *oint 'or t%ose (%o can identi' organi6ation?s *ur*ose and $usiness t%emsel+es (it% t%e

F 0o s*eci' organi6ational *ur*oses and ins*ire translation o' t%ese *ur*oses into goals in suc% a (a t%at cost- time and *er'ormance *arameters can $e assessed and controlled, Mission and "ision Sometimes- >mission? and >+ision? o' a com*an are used s non mousl or interc%angea$l , 0%is is not correct, A clear distinction e2ists $et(een t%e t(o, Mission is concerned more (it% t%e *resentB t%e +ision more (it% t%e 'uture, 0%e mission statement ans(ers t%e 5uestion7 >C%at is our $usiness;? 0%e +ision statement ans(ers t%e 5uestion7 >C%at do (e (ant to $ecome or- (%ic% (a s%ould (e $e going;? 0%e mission statement 'ocusses on t%e *resent strategic t%rust- (%ile t%e +ision statement outlines t%e strategic *at%, All +isionar com*anies %a+e a 5<Page

Course/Drive/Seme ster Subject code & name Student Regd No, & Name

MBA / Fall 2013 / Sem-IV MB0052 Strategic Management and Business Polic 31123!"15 #e$asis% Prad%an

+ision statement, 0%e +ision o' Microso't 1since 1"""3 %as $een >to $road$ase its outloo) to em*o(er *eo*le t%roug% great so't(are an time- an (%ere and on an de+ice including t%e P& and an incredi$l ric% +ariet o' digital de+ices accessing t%e *o(er o' t%e Internet?, Most *rogressi+e com*anies de+elo* $ot% a mission statement and a +ision statement, Indian 9il &or*oration 1I9&3 is a good e2am*le, Vision and mission statements o' I9&! are7 Vision7 Indian 9il aims to ac%ie+e international standards o' e2cellence in all as*ects o' energ and di+ersi'ied $usiness (it% 'ocus on customer delig%t t%roug% 5ualit *roducts and ser+ices, Mission7 Maintaining national leaders%i* in oil re'ining- mar)eting and *i*eline trans*ortation, Vision and mission statements can $e generall 'ound in t%e $eginning o' annual re*orts o' com*anies, 0%ese statements are also seen in t%e cor*orate or long-term strategic *lans o' com*anies, 0%ese also a**ear in man com*an re*orts or documents li)e customer ser+ice agreements- loan re5uests- la$our relations contracts- etc, Man com*anies also dis*la t%em at *rominent *oints or locations in com*an *remises

4. Differentiate between core competence and distinctive competence.

Ans7 Core Com'etence &ore com*etence o' a com*an is one o' its s*ecial or uni5ue internal com*etence, &ore com*etence is not 4ust a single strengt% or s)ill or ca*a$ilit o' a com*an B it is >inter(o+en resources- tec%nolog and s)ill? or s nerg culminating into a s*ecial or core com*etence, &ore com*etence gi+es a com*an a clear com*etiti+e ad+antage o+er its com*etitors, Son %as a core com*etence in miniaturi6ationB Gero2?s core com*etence is in *%otoco* ingB &anon?s core com*etence lies in o*tics- imaging and laser controlB Honda?s core com*etence is in engines 1'or cars and motorc cles3B 3M?s core com*etence is in stic) ta*e tec%nolog B IV&?s in +ideo ta*e tec%nolog B I0&?s in to$acco and cigarettes and Eodre4?s in loc)s and store(els, Hamel and Pra%alad- t(o o' t%e greatest e2*onents o' core com*etence- argue in >0%e &ore com*etence o' t%e &or*oration? 1HBA- 1""03 t%at t%e central $uilding $loc) o' t%e cor*orate strateg is core com*etence, Hamel and Pra%alad de'ined core com*etence as t%e com$ination o' indi+idual tec%nologies and *roduction s)ills t%at underlie a com*an ?s *roduct lines, According to t%em- Son ?s core com*etence in manu'acturing allo(s t%e com*an to ma)e e+er t%ing 'rom t%e Son (al)man to +ideo cameras to note$oo) com*uter, &anon?s core com*etence J<Page

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MBA / Fall 2013 / Sem-IV MB0052 Strategic Management and Business Polic 31123!"15 #e$asis% Prad%an

in o*tics- imaging and micro*rocessor controls %a+e ena$led it to enter mar)ets as seemingl di+erse as co*iers- laser *rinters- cameras and image scanners, 0o ac%ie+e core com*etence- a *articular com*etence le+el o' a com*an s%ould satis' t%ree criteria7 1a3 It s%ould relate to an acti+it or *rocess t%at in%erentl underlies t%e +alue in t%e *roduct or ser+ice as *ercei+ed $ t%e customer, 0%is is im*ortant $ecause managers o'ten ta)e an internal +ie( o' +alue and eit%er miss or deli$eratel o+erloo) t%e customer *ers*ecti+e, It s%ould lead to a le+el o' *er'ormance in a *roduct or *rocess (%ic% is signi'icantl $etter t%an t%ose o' com*etitors, Benc%mar)ing is a good (a and is generall recommended 'or underta)ing *er'ormance standard and also 'or di''erentiating $et(een good and $ad *er'ormance, 1Ce (ill $e discussing $enc%mar)ing in Knit 113, 1c3 It s%ould $e ro$ust- i,e,- di''icult 'or com*etitors to imitate, In a 'ast c%anging (orld- man d+antages gained in di''erent (a s 1li)e a su*erior *roduct 'eature- a ne( mar)eting cam*aign or an inno+ati+e *rice *olic /strateg 3 are not ro$ust and are li)el to $e s%ort li+ed, &ore com*etence is not a$out suc% incremental c%anges or im*ro+ements- $ut- a$out t%e (%ole *rocess t%roug% (%ic% continuous c%ange and im*ro+ement ta)e *lace (%ic% lead to or sustain clearl di''erentiated ad+antage, Distinctive Com'etence &ore com*etence ma not $e enoug%- $ecause it 'ocuses *redominantl on t%e *roduct or *rocess and tec%nolog - or- as Hamel and Pra%alad *ut itB >0%e com$ination o' indi+idual tec%nologies and *roduction s)ills?, 0%ere are t(o *ro$lems (it% t%is, First- strong and aggressi+e com*etitors ma de+elo*- eit%er t%roug% *arallel inno+ations or imitations- similar *roducts or *rocesses (%ic% are %ig%l com*etiti+e, 0%is is (%at Ia*anese com*anies %a+e done in t%e 'ields o' electronics and automo$iles- and no( Sout% Lorea is doing to Ia*anese electronicsB IBM?s core com*uter tec%nolog is also 'acing t%e same *ro$lem, Second- to secure com*etiti+e ad+antage- onl *roduct- *rocess or tec%nolog or tec%nological inno+ation ma not $e enoug%B t%is %as to $e am*l su**orted $ s*ecial ca*a$ilities in t%e related +ital areas li)e resource or 'inancial management- cost management- mar)eting- logistics- etc, Hamel and Pra%alad t%emsel+es %a+e said later 11""!37 Ce %a+e to loo) at t%e organi6ation as a *ort'olio o' com*etencies- o' underl ing strengt%s- and- not 4ust a *ort'olio and $usiness unit ,,,, Ce must also identi' t%ose core com*etencies t%at (ould allo( us to create ne( *roductsB and (e must as) oursel+es (%at (e can le+erage as (e mo+e into t%e 'uture- and (%at (e can do t%at ot%er com*anies mig%t 'ind di''icult, #istincti+e com*etences ma M<Page

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MBA / Fall 2013 / Sem-IV MB0052 Strategic Management and Business Polic 31123!"15 #e$asis% Prad%an

*ro+ide an ans(er to some o' t%ese *oints, #istincti+e com*etence is $ased on t%e assum*tion t%at t%ere are di''erent alternati+e (a s to secure com*etiti+e ad+antage and not onl s*ecial tec%nical and *roduction e2*ertise as em*%asi6ed $ core com*etence, #istincti+e com*etence includes core com*etence as one o' t%e alternati+es, But- t%ere are ot%er alternati+es t%at are also $ased on organi6ational ca*a$ilities, So- distincti+e com*etence is more $road $ased, 0%om*son and Stric)land 11""23 %a+e de'ined distincti+e com*etence as7 >#istincti+e com*etence is t%e uni5ue ca*a$ilit t%at %el*s an organi6ation in ca*itali6ing u*on a *articular o**ortunit B t%e com*etiti+e edge it ma gi+e a 'irm in t%e mar)et*lace, So- t%e 'ocus in distincti+e com*etence is on e2*loiting a mar)et o**ortunit , And- de*ending on t%e mar)et or com*etiti+e situation- one or some o' t%e alternati+e com*etences ma (or) B 'or e2am*le- *roduct or *rocess su*eriorit 1core com*etence3- *roduct di''erentiation 1situational or ada*ta$ilit 3- cost e''ecti+eness or cost e''icienc to su**ort a *rice strateg - s*ecial ca*a$ilit in mar)eting or distri$ution- etc, Knder gi+en circumstances- one o' t%ese- or a com$ination o' some o' t%ese- (ill *roduce a distincti+e com*etence (%ic% (ould $e a**ro*riate or $est suited to e2*loit t%e o**ortunit and *roduce desired results, Since resources are limited- identi'ication o' distincti+e com*etence ma also %el* e''icient allocation o' resources, Aeliance Industries- 'or e2am*le- %as de+elo*ed its distincti+e com*etence in >concei+ing- im*lementing and managing large scale *ro4ects? and mo$ili6ing re5uisite resources 'or t%at, 0%e do not t%in) in terms o' core com*etence, Mu)es% Am$ani- &%airman and M#- %as descri$ed it li)e t%is7 >Ce do not $elie+e in core com*etenceB (e $elie+e in $uilding com*etence around *eo*le and *rocesses to create +alue?, ,! De-ine t$e term .industr%/! 0ist t$e t%'es o- industries! 1o2 do %ou conduct an industr% ana#%sis3 Ans De-inition o- Industr% An industr can $e $roadl de'ined as >t%e grou* o' 'irms *roducing *roducts t%at are close su$stitutes 'or eac% ot%er, 0%ere is- %o(e+er- a great deal o' contro+ers o+er an a**ro*riate de'inition o' industr , 0%e de$ate or contro+ers mostl centers around >%o( close su$stituta$ilit needs to $e in terms o' *roduct- *rocess or geogra*%ic mar)et $oundaries?, For e2am*le- i' (e ta)e com*uters- des)to* com*uters ma $e an industr B similarl la*to* com*uters ma $e anot%er industr , But- $ecause t%ere is a good deal o' su$stituta$ilit $et(een des)to* and la*to* com*uters- an a**ro*riate industr de'inition ma $e >*ersonal com*uter? (%ic% includes $ot%,

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Course/Drive/Seme ster Subject code & name Student Regd No, & Name

MBA / Fall 2013 / Sem-IV MB0052 Strategic Management and Business Polic 31123!"15 #e$asis% Prad%an

An im*ortant *oint in t%e de$ate or contro+ers o+er industr de'inition is a$out o+erloo)ing latent sources o' com*etition (%ic% ma a''ect a com*an , An de'inition o' an industr is essentiall a matter o' c%oice a$out (%ere to dra( t%e line $et(een esta$lis%ed com*etitors and su$stitute *roducts- $et(een e2isting com*anies in t%e industr and *otential entrants and- $et(een e2isting manu'acturers o' t%e *roduct1s3 and su**liers o' in*uts and $u ers, #ra(ing t%ese lines ma - man times- $e a matter o' degree- $ut- it %as im*lications 'or c%oice o' strateg $ a com*an , #e'inition o' an industr s%ould not $e t%oug%t to $e same as de'inition o' t%e $usiness in (%ic% a com*an (ants to com*ete, Industr ma $e $roadl de'ined or narro(l de'ined, I' industr is $roadl de'ined- it does not 'ollo( t%at $usiness s%ould also $e $roadl de'ined (it%out 'ocus, Industr in all suc% cases sets t%e *roduct $oundaries, Business o' a com*an 'ocusses on a s*eci'ied *roduct or a *roduct categor $ased on its tec%nolog - resources and ca*a$ilities- and accordingl - t%e com*an 'ormulates its com*etiti+e strateg , Industr% T%'es and Structure Industries can $e o' +arious t *es@eac% ma4or *roduct grou* constitutes an industr 1su$4ect to t%e de'inition a$o+e3, Industries can also $e classi'ied in terms o' si6e o' t%e constituent units or com*anies- state or *ace o' de+elo*ment o' t%e industr - s*read o' t%e mar)et- etc, 0%ese are im*ortant (a s o' loo)ing at t%e structure o' an industr , Based on suc% 'actors- +arious industries can $e $roadl classi'ied into 'i+e categories according to Porter7 Fragmented industr =merging industr Mature industr #eclining industr Elo$al industr

1o2 to Conduct Industr% Ana#%sis Knderstanding industr structure and 'ormulating com*etiti+e strategies im*l industr anal sis, But- conducting a *ro*er industr anal sis is a +er $ig tas), 0o conduct suc% an anal sis- t%e industr anal st %as to 'ind ans(ers to man im*ortant 5uestions7 F C%at s%ould $e t%e starting *oint; "<Page

Course/Drive/Seme ster Subject code & name Student Regd No, & Name

MBA / Fall 2013 / Sem-IV MB0052 Strategic Management and Business Polic 31123!"15 #e$asis% Prad%an

F C%ic% t *es o' data one loo)s 'or; F S%ould one loo) 'or onl *u$lis%ed or secondar data; F 9r- s%ould one also generate *rimar data 'rom industr o$ser+ers 1*artici*ants3; F C%at are t%e anal tical tec%ni5ues to $e used 'or data *rocessing and anal sis; Ans(ers to t%ese 5uestions (ould ma)e *ossi$le an a**ro*riate industr anal sis, 0%is is a$out com*lete or com*re%ensi+e industr anal sis, I'- %o(e+er- one is interested in a *articular as*ect o' an industr - sa - onl industr gro(t%- one can also conduct a *artial industr anal sis (it% res*ect to t%e *articular o$4ect, In t%at case- data re5uirements (ould $e less- and data *rocessing and anal sis also (ould $e muc% easier, Porter 11"N03 %as suggested some detailed guidelines 'or conducting industr anal sis, 0%ese are contained in >Ho( to &onduct an Industr Anal sis? in &om*etiti+e Strateg 11"N03, Porter discusses sources o' *u$lis%ed or secondar data- generation or collection o' *rimar data- +arious categories o' data- sc%eme o' data *rocessing and strateg 'or industr anal sis, Industr anal sis s%ould 'ollo( a num$er o' logical or strategic ste*s, 0%ese are s%o(n $elo(7 Ste* 17 #etermine or s*eci' 'ocus, t%e o$4ecti+e or o$4ecti+es so t%at t%ere is no lac) o'

Ste* 27 &ollect and scan t%roug% a+aila$le *u$lis%ed or secondar data, Ste* 37 Identi' data or in'ormation ga*s 'or generation o' *rimar data, Ste* !7 Eenerate *rimar data 1t%roug% sur+e - inter+ie(s- meetings- etc,-3 to 'ill t%e data in'ormation ga*, Ste* 57 Process/ta$ulate +arious data as mentioned in Bo2 11,1 Ste* J7 Pre*are a general o+er+ie( o' t%e industr data/in'ormation, using t%e *rocessed/ ta$ulated

Ste* M7 Pre*are s*eci'ic sectorial anal sis@tec%nolog - *roduct- mar)eting *atterncom*etition anal sis, Ste* N7 #ra( in'erences or conclusions to com*lete t%e anal sis, 4! Describe t$e di--erent a''roac$es to business et$ics! Ans In terms o' et%ical *ractices- com*anies in India- as in man ot%er countriescan $e classi'ied as good and $ad, Ce %a+e 4ust gi+en t%e e2am*les o' In'os s10 < P a g e

Course/Drive/Seme ster Subject code & name Student Regd No, & Name

MBA / Fall 2013 / Sem-IV MB0052 Strategic Management and Business Polic 31123!"15 #e$asis% Prad%an

Amul- I&I&I- etc,- (%ic% are %ig%l et%ical, 0%ere are also com*anies (%ic% do not con'orm to strong et%ical norms, Ce also %a+e regulations li)e t%e MA0P Act and F=MA 1earlier F=AA3 'or cur$ing unet%ical $usiness *ractices, LPME India conducted a sur+e o' 2N0 to* Indian com*anies 'or ascertaining t%e le+el o' $usiness et%ics in India, Stud anal sis and 'indings are contained in Business =t%ics Sur+e Ae*ort7 India- 1""", Ma4or 'indings o' t%e stud are summari6ed $elo(7 1a3 Mission statement7 A$out N5 *er cent o' t%e com*anies sur+e ed are re*orted to %a+e a mission statement, But- most o' t%ese statements 'ocus on customer ser+ice and customer satis'action, Ver 'e( com*anies em*%asi6e et%ical and moral issues suc% as organi6ational +alues- integrit in $usiness- %arassment in t%e (or)*laceetc, 1$3 &om*an *olic on et%ics7 Man com*anies %a+e a documented *olic on et%ics, But- im*lementation or rein'orcement o' a 'ormal et%ical s stem is (ea) in most o' t%ese com*anies, Some com*anies %a+e a grie+ance cellB some com*anies conduct *eriodic (or)s%o* on $usiness et%ics- $ut not%ing muc% $e ond t%at, 1c3 =t%ical ris) in t%e (or)*lace7 Man com*anies e2*ress concern a$out lac) o' et%ics in t%e (or)*lace, Some o' t%e ma4or et%ical concerns e2*ressed $ com*anies are7 lea)age or misuse o' con'idential in'ormation 1MM *er cent3B insider trading 1!N *er cent3B recei+ing gi'ts or 'a+ours 'rom su**liers 1!N *er cent3B *romoting *ersonal interest 1!M *er cent3, 1d3 =2ternal 'actors in cor*orate et%ics7 Most Indian com*anies 'eel t%at et%ical *ro$lems in $usiness arise $ecause o' e2ternal or en+ironmental 'actors, 0(o ma4or e2ternal 'actors are go+ernment *olicies/regulations and *olitical inter'erence, 1e3 0raining in $usiness et%ics7 Ma4orit o' t%e com*anies 'eel t%at training in $usiness et%ics s%ould $e gi+en %ig% *riorit , =ducation in et%ics s%ould $e incor*orated in t%e 'ormal management de+elo*ment *rogrammes o' com*anies, 1'3 Strengt%ening et%ical *ractices7 Most Indian com*anies are o' t%e o*inion t%at'or strengt%ening et%ical $usiness *ractices- t(o 'actors are im*ortant7 'irst*ro'essionali6ing com*an managementB and- second- minimi6ing state or go+ernmental control and inter'erence,

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