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1. Each level of strategy involves different strategic decisions. Discuss taking into consideration the different levels of strategy.

gy. Illustrate your


answer with the help of examples.

THE COMPANY ANALYSES THE FOLLOWING DATABASE


AND APPLYS THE PROBELM SOLVING/ DECISION
MAKING APPROACH / FINALIZES THE PLAN.
1. External Assessment
Areas for opportunities and threats
* Markets [ what is the market situation, which is forcing the change requirements
*Customers [ how can service the customer -internal / external -better .
* Industry [ is the industry trend ]
* Competition [ is it the competitive situation
*Factors of business [ causing the change]
* Technology [ is it technology change ]
2. Internal Assessment
Areas for strengths, weaknesses, and barriers to success

ORGANIZATION DIMENSIONS
*Culture [ is the working culture change ]
* Organization [ is the organization demanding change ]
* Systems [ is it the systems change ]
* Management practices [ change in managemement process]

OTHER KEY DIMENSIONS

*Cost-efficiency[ is it for cost efficiency ]


* Financial performance [ is it for financial performance improvement ]
* Quality [ is it for quality performance improvement
*Service [ is it for service performance improvement
*Technology[ is it for technology performance improvement
* Market segments [ is it for sales performance improvement
* Innovation[ is it for performance improvement
*new products[ is it for new product performance improvement
*Asset condition[ is it for financial performance improvement
*productivity[ is it for financial performance improvement

3. Source Strategic objectives and programs


The critical issues that must be addressed if the organization
Is to succeed

Strengths
Weaknesses
Opportunities
Threat
PRIORITY ISSUES
FROM THE ABOVE , DETERMINE THE CORE ISSUES
WHICH NEEDS TO SOLVED WITH YOUR INVESTMENT.
STRATEGIC PROGRAMS
FROM THE ABOVE CORE ISSUES , DETERMINE YOUR
STRATEGIC PROGRAMS.
Mission STATEMENT
VISION STATEMENT
Your CORE PURPOSE
Your CORE OBJECTIVES
Your Core markets;
Your CORE strategic thrusts.
======================================
NOW THE QUESTION IS
-BASED ON THE ABOVE WHAT ARE
THE STRATEGIES NEEDED.

1. Basic question: How is organizational direction determined? Every organization takes on some direction, in terms of what customers/clients it serves and what
functions it performs for these customers. This direction is often called its purpose, Mission or realized strategy. An organization's mission is a set of statements that
define the exchange relationship between the organization and its stakeholders or claimants. More specifically a mission defines the population served and the
function it fulfills or the need it satisfies for that claimant. This direction, or mission, may be the result of a deliberate planning process or it may emerge as the result
of a set of incremental decisions.

THIS ORGANIZATION Realized Strategies are the result of a combinations of Purely Deliberate and Purely Emergent Strategies.

1.THIS ORGANIZATION'S Deliberate Strategy-

This process starts with an analysis of a company's current mission and strategies. The most popular tool used in this process is the SWOT (Strengths, weaknesses,
opportunities, threats) model. The external environment in terms of opportunities and threats, is analyzed by examining threats to the company's current position and
new opportunities (new customers, new applications, unfulfilled customers needs, etc.). The analysis proceeds by examining the company's internal environment in
terms of its strengths and weakness. A mission and competitive strategy is formulated that matches opportunities with strengths and plans are made to strengthen
areas of weakness.

The next step is to develop functional strategies that support the overall business level competitive strategy. Marketing, Human Resource, Financial, Operations,
Information Systems, and R & D strategies are developed that support the business unit strategy. Finally, a control system (organizational structure) is designed to
insure that operational decisions are made consistent with the business and functional strategies.
2. THIS ORGANIZATION'S Emergent Strategy
- Emergent Strategies are the result of incremental decision making that achieve some degree of consistency over time and launch the organization into a direction.
When decisions are made or problems are solved, they have potential strategic impact.

Levels of Strategy

1. Mission/Domain- Before identification of strategy can occur, one must clearly identify the mission or domain of the organization. The domain of an organization
consists of the population it serves and the functions it performs (satisfies) for that population. Sometimes the domain is defined in terms of products or services
offered (rather than functions performed), but this tends to be more limiting because it defines the mission more in terms of means rather than ends.

2. Corporate Level Strategy.

1. Vertical Integration STRATEGY


Forward Integration- Gaining ownership or control over distributors.
[TAKE OVER DISTRIBUTORS IN ''UNREPRESENTED AREAS'' .

2. Horizontal Integration STRATETGY


- Seeking ownership or control over competitors
[BOUGHT OVER ONE SMALL /BUT DYNAMIC COMPETITORS ]

3. Market Penetration STRATEGY


- Seeking increased market share for present products through greater marketing efforts

4. Market Development STRATEGY


- Introducing present products in new markets
5. Product Development STRATEGY
- Seeking increased sales by improving present products

6. Diversification STRATEGY
1. Concentric- Adding new or related product lines
2. Conglomerate- Adding new, but unrelated product lines

3. Competitive or Business Level Strategy


- How should we compete in our chosen business(es)? Competitive strategies involve determining the basis of costumer or client decision making. Generally, they
are based on some combination of quality, service, cost, time, and quality of the experience.

1. Cost Leadership Strategies


- With this strategy you are competing on price. Your various functional strategies all emphasize cost reduction. This is an effective strategy when the market is
comprised of many price sensitive buyers, when there are few ways to achieve product differentiation, when buyers do not care much about differences from brand to
brand , or when there are a large number of buyers with significant bargaining power.

2. Differentiation Strategies
- Differentiation strategies rely on some basis of product differentiation such as flexibility, specific features, service, time and availability, low maintenance, etc. as
the basis for competition. Product development and market research are generally necessary components of a differentiation strategy. Generally, a successful
differentiation strategy allows a firm to charge a higher price for its product. Organizations generally need strong R & D departments with strong coordination
between R & D and marketing departments. Human Resource strategies must place emphasis maintaining a competitive skill base and motivating employees toward
the basis for differentiation.

3. Focus or Niche Strategies


- A successful focus strategy depends upon an industry segment that is of sufficient size, has good growth potential, and it not crucial to the success of other major
competitors. Focus strategies are pursued in limited markets in conjunction with cost leadership and/or differentiation strategies. Focus strategies are the most
effective when consumers have distinctive preferences or requirements and when rival firs are not attempting to specialize in the same target segment.

4. Functional Strategies
- How do organizational functional units contribute to the business level strategies? How can functional strategies be integrated to achieve competitive advantage?

1. Marketing Strategies- How do we communicate our strengths to the customer? How do we identify customer requirements and changes in customer
requirements?
2. Human Resource Strategies- How do we recruit, train, develop, motivate, compensate, and place employees so that behavior is directed toward the
competitive strategy and works to build competitive advantage?
3. Financial Strategies- How do we secure financial resources necessary to carry our competitive strategy?
4. Operations Strategies- How do we design our processes to produce products and/or service that meet customer requirements as specified in our strategy?
5. Information System Strategies- How do we provide decision makers, at all levels, with information necessary to make decisions consistent with strategy?
6. Technological (R & D) Strategies- How do we develop products consistent with customer requirements as specified in strategy?

2. Explain how strategic control links the internal business environment and the external environment. Give example in support of your answer.

Three fundamental perspectives-strategic control, continuous improvement, and the balanced scoreboard-provide the basis for designing strategy control systems.
Strategic controls are intended to steer the company toward its long-term strategic goals.
- Premise controls,
-implementation controls,
-strategic surveillance, and
-special alert controls are types of strategic control.
All four types are designed to meet top management's needs to track the strategy as it is being implemented, to detect underlying problems, and to make necessary
adjustments. These strategic controls are linked to the environmental assumptions and the key operating requirements necessary for successful strategy
implementation. Ever-present forces of change fuel the need for and focus of strategic control.
Operational control systems require systematic evaluation of performance against predetermined standards or targets. A critical concern here is identification and
evaluation of performance deviations, with careful attention paid to determining the underlying reasons for and strategic implications of observed deviations before
management reacts. Some firms use trigger points and contingency plans in this process.
The "quality imperative" of the last 20 years has redefined global competitiveness to include reshaping the way many businesses approach strategic and operational
control. What has emerged is a commitment to continuous improvement in which personnel across all levels in an organization define customer value, identify ways
every process within the business influences customer value, and seek continuously to enhance the quality, efficiency, and responsiveness with which the processes,
products, and services are created and supplied. This includes attending to internal as well as external customers. The "balanced scorecard" is a control system that
integrates strategic goals, operating outcomes, customer satisfaction, and continuous improvement into an ongoing strategic management system.

THE FOLLOWING CONTROLS


- Premise controls,
-implementation controls,

TO TRACK /MONITOR/ ACTION PLANNING


BUSINESS INTERNALS.

1.HOW THE COMPANY MAXIMIZES THE STRENGTHS


AS PART OF BUSINESS STRATEGY
Criteria examples

Advantages of proposition?
Capabilities?
Competitive advantages?
USP's (unique selling points)?
Resources, Assets, People?
Experience, knowledge, data?
Financial reserves, likely returns?
Marketing - reach, distribution, awareness?
Innovative aspects?
Location and geographical?
Price, value, quality?
Accreditations, qualifications, certifications?
Processes, systems, IT, communications?
Cultural, attitudinal, behavioural?
Management cover, succession?
Philosophy and values?
-------------------------------------------------------------------
2.HOW THE COMPANY OVERCOMES THE WEAKNESSES
AS PART OF BUSINESS STRATEGY
Criteria examples

Disadvantages of proposition?
Gaps in capabilities?
Lack of competitive strength?
Reputation, presence and reach?
Financials?
Own known vulnerabilities?
Timescales, deadlines and pressures?
Cashflow, start-up cash-drain?
Continuity, supply chain robustness?
Effects on core activities, distraction?
Reliability of data, plan predictability?
Morale, commitment, leadership?
Accreditations, etc?
Processes and systems, etc?
Management cover, succession
---------------------------------------------------------------------------
3.HOW THE COMPANY TAKES ADVANTAGE OF THE OPPORTUNITIES
AS PART OF BUSINESS STRATEGY
Criteria examples

Market developments?
Competitors' vulnerabilities?
Industry or lifestyle trends?
Technology development and innovation?
Global influences?
New markets, vertical, horizontal?
Niche target markets?
Geographical, export, import?
New USP's?
Tactics: eg, surprise, major contracts?
Business and product development?
Information and research?
Partnerships, agencies, distribution?
Volumes, production, economies?
Seasonal, weather, fashion influences?
----------------------------------------------------------------
4. HOW THE COMPANY MANAGES THE THREATS
AS PART OF BUSINESS STRATEGY
Criteria examples

Political effects?
Legislative effects?
Environmental effects?
IT developments?
Competitor intentions - various?
Market demand?
New technologies, services, ideas?
Vital contracts and partners?
Sustaining internal capabilities?
Obstacles faced?
Insurmountable weaknesses?
Loss of key staff?
Sustainable financial backing?
Economy - home, abroad?
Seasonality, weather effects?
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THE FOLLOWING CONTROLS

-strategic surveillance, and


-special alert controls
TO TRACK /MONITOR/ ACTION PLANNING
BUSINESS EXTERNALS.

Political (incl. Legal)

-Environmental regulations and protection


[what are the government regualtions/ protection laws that must be observed ]

-Tax policies
what tax hinder the business and what taxes incentives are available]

-International trade regulations and restrictions


[ does the government encourage exports / with high tariffs on imports]

-Contract enforcement law/Consumer protection


[does the government enforce on consumer protection ]

-Employment laws]
[ is the government encouraging skilled immigrants with temp. permits]

-Government organization / attitude


[ does the government have a very positive attitude towards this industry]

-Competition regulation
[ are there regulation for limiting competition]

-Political Stability
[ politically , does the government have a very stable government ]

-Safety regulations
[ has the government adopted some of the modern safety regulations]
=================================================================
Economic
-Economic growth
[ what is the economic growth rate / what are the reasons ]

-Interest rates & monetary policies


[ are the interest rates under control / is there a sound monetary policies]
-Government spending
[is government spending is significant and is it under control ]
-Unemployment policy
[what is the employment / unemployment policies of the government ]
-Taxation
[ has the taxation encouraged the industry ]
-Exchange rates
[ is there well managed exchange controls and is it helping the industry]
-Inflation rates
[ is the inflation well under control ]
-Stage of the business cycle
[ is your industry is on the growth pattern]
-Consumer confidence
[ is the consumer confidence is high/ strong and if not, why ]
==================================================
Social
-Income distribution
[is there balanced income distribution policy ]
-Demographics, Population growth rates, Age distribution
[ what is population growth and why ]
-Labor / social mobility
[ what are the labor policies and is there labor mobility]
-Lifestyle changes
[ are there significant lifestyle changes taking place--more modernization/ why ]
-Work/career and leisure attitudes
[ are the population career minded and are seeking better lifestyle]
-Education
[ what are the education policies / is it successful ]
-Fashion, hypes
[are the people becoming fashion conscious ]
-Health consciousness & welfare, feelings on safety
[ are the people becoming health consciousness]
-Living conditions
[ is the living conditions improving fast and spreading rapidly]
=========================================================
Technological
Government research spending
[is the government spending on research and development]
Industry focus on technological effort
[are the industries focused on using improved technology]
New inventions and development
[ are new inventions being encouraged for developments]
Rate of technology transfer
[ is the rate of technology transfer is speeding up ]
(Changes in) Information Technology
[ is the information technology rapidly moving and is there government support]
(Changes in) Internet
[ is the internet usage rapidly increasing and why]
(Changes in) Mobile Technology
[is the Mobile technology rapidly developing and is there government support]

===========================================

THE CONTROLS FOR ANY ORGANIZATION ARE THE FOLLOWING

-EFFECTIVE ORGANIZATION STRUCTURE

-MANAGEMENT CONTROLS AT ALL LEVELS


*MARKETING MANAGEMENT
*SALES MANAGEMENT
*SUPPLY MANAGEMENT
*DISTRIBUTION MANAGEMENT
ETC ETC

-BUDGETORY CONTROLS
-AUTHORIZATIONS CONTROLS
-INVENTORY CONTROLS--RAW MATERIALS
-INVENTORY CONTROLS --FINISHED PRODUCTS
-QUALITY CONTROLS
-PROCUREMENT CONTROLS
-DEBT CONTROLS
-SALES/ MARKETING EXPENSES CONTROL
-PERSONNEL CONTROL
-MONTHLY PERFORMANCE REVIEW AGAINST BUDGET
-HALF YEARLY BUSINESS AUDITING
--------------------------------------------------------------------------
IN ORGANIZATION , THEY HAVE INTEGRATED THE CONTROL
SYSTEMS INTO PLANNING, SO THAT IT HELPS
-TO MEASURE THE DEVIATIONS
-TO STUDY THE VARIANCES
-TO TAKE APPROPRIATE ACTIONS.

Management planning and control process"


P .PLANNING-----------------C.CONTROL [ c1.establish standards]
p1.establishing objectives.
p2.determine detailed activities.
p3.delegation
p4.schedule tasks
p5.allocate resources
p6.communication and coordination
p7.provide incentives

c2.measure and compare.


c3.evaluate results.
c4.feedback and coach
c5.take corrective action.

The above schematic shows the important interrelationships between planning and control. As you can see, the control process does not begin after the entire
planning process ends, as most managers believe.After objectives are set in the first step of the planning process, appropriate standards should be developed for them.
Standards are units of measurement established to serve as a reference base and are useful in determining time lines, sequences of activities, scheduling, and
allocation of resources.For example, if objectives are set and work is planned for 18 people on an assembly line, standards or reasonable expectations of performance
from each person then need to be clearly established.The second significant interaction between planning and control occurs with the final step of the control
process-taking corrective action. This can take several forms, but two of the most effective are to change the objectives or alter the plan.Managers dislike doing
either; but if a positive motivational climate is to be established, these ought to be the first two corrective actions attempted. Objectives and standards are based on
assumptions, but if these assumptions prove inaccurate, then objectives and standards require alteration. Thus sales quotas assigned on the premise of a booming
economy can certainly be altered if, as is often the case, the economy turns sour.Likewise, if the assumptions are accurate and objectives and standards have not been
met, then it is possible that the plan developed was inadequate and needs to be changed.
--------------------------------------------------------------------------------

Controls are to be an integral part of any organization's financial and business policies and procedures. Controls consists of all the measures taken by the
organization for the purpose of; (1) protecting its resources against waste, fraud, and inefficiency; (2) ensuring accuracy and reliability in accounting and operating
data; (3) securing compliance with the policies of the organization; and (4) evaluating the level of performance in all organizational units of the organization.
Controls are simply good business practices.
1.Responsibility
Everyone within the COMPANY has some role in controls. The roles vary depending upon the level of responsibility and the nature of involvement by the
individual. The Board of President and senior executives establish the presence of integrity, ethics, competence and a positive control environment. The department
heads have oversight responsibility for controls within their units. Managers and supervisory personnel are responsible for executing control policies and procedures
at the detail level within their specific unit. Each individual within a unit is to be cognizant of proper internal control procedures associated with their specific job
responsibilities.
The Internal Audit role is to examine the adequacy and effectiveness of the company internal controls and make recommendations where control improvements are
needed. Since Internal Auditing is to remain independent and objective, the Internal Audit Office does not have the primary responsibility for establishing or
maintaining internal controls. However, the effectiveness of the internal controls are enhanced through the reviews performed and recommendations made by
Internal Auditing.
2.Elements of Internal Control
Internal control systems operate at different levels of effectiveness. Determining whether a particular internal control system is effective is a judgement resulting
from an assessment of whether the five components - Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring -
are present and functioning. Effective controls provide reasonable assurance regarding the accomplishment of established objectives.
A. Control Environment
The control environment, as established by the organization's administration, sets the tone of THE COMPANY and influences the control consciousness of its
people. MANAGERS of each department, area or activity establish a local control environment. This is the foundation for all other components of internal control,
providing discipline and structure. Control environment factors include:
Integrity and ethical values;
The commitment to competence;
Leadership philosophy and operating style;
The way management assigns authority and responsibility, and organizes and develops its people;
Policies and procedures.
B. Risk Assessment
Every entity faces a variety of risks from external and internal sources that must be assessed. A precondition to risk assessment is establishment of objectives, linked
at different levels and internally consistent. Risk assessment is the identification and analysis of relevant risks to achievement of the objectives, forming a basis for
determining how the risks should be managed. Because economics, regulatory and operating conditions will continue to change, mechanisms are needed to identify
and deal with the special risks associated with change.
Objectives must be established before MANAGERS can identify and take necessary steps to manage risks. Operations objectives relate to effectiveness and
efficiency of the operations, including performance and financial goals and safeguarding resources against loss. Financial reporting objectives pertain to the
preparation of reliable published financial statements, including prevention of fraudulent financial reporting. Compliance objectives pertain to laws and regulations
which establish minimum standards of behavior.
The process of identifying and analyzing risk is an ongoing process and is a critical component of an effective internal control system. Attention must be focused on
risks at all levels and necessary actions must be taken to manage. Risks can pertain to internal and external factors. After risks have been identified they must be
evaluated.
Managing change requires a constant assessment of risk and the impact on internal controls. Economic, industry and regulatory environments change and entities'
activities evolve. Mechanisms are needed to identify and react to changing conditions.
C. Control Activities
Control activities are the policies and procedures that help ensure management directives are carried out. They help ensure that necessary actions are taken to address
risks to achievement of the entity's objectives. Control activities occur throughout the organization, at all levels, and in all functions. They include a range of
activities as diverse as approvals, authorizations, verifications, reconciliations, reviews of operating performance, security of assets and segregation of duties.
Control activities usually involve two elements: a policy establishing what should be done and procedures to effect the policy. All policies must be implemented
thoughtfully, conscientiously and consistently.
D.Information and Communication
Pertinent information must be identified, captured and communicated in a form and time frame that enables people to carry out their responsibilities. Effective
communication must occur in a broad sense, flowing down, across and up the organization. All personnel must receive a clear message from top management that
control responsibilities must be taken seriously. They must understand their own role in the internal control system, as well as how individual activities relate to the
work of others. They must have a means of communicating significant information upstream.
E.Monitoring
Control systems need to be monitored - a process that assesses the quality of the system's performance over time. Ongoing monitoring occurs in the ordinary course
of operations, and includes regular management and supervisory activities, and other actions personnel take in performing their duties that assess the quality of
internal control system performance.
The scope and frequency of separate evaluations depend primarily on an assessment of risks and the effectiveness of ongoing monitoring procedures. Internal control
deficiencies should be reported upstream, with serious matters reported immediately to top administration and governing boards.
Control systems change over time. The way controls are applied may evolve. Once effective procedures can become less effective due to the arrival of new
personnel, varying effectiveness of training and supervision, time and resources constraints, or additional pressures. Furthermore, circumstances for which the
internal control system was originally designed also may change. Because of changing conditions, management needs to determine whether the internal control
system continues to be relevant and able to address new risks.
Components of the Control Activity
1.Internal controls rely on the principle of checks and balances in the workplace. The following components focus on the control activity:
2.Personnel need to be competent and trustworthy, with clearly established lines of authority and responsibility documented in written job descriptions and
procedures manuals. Organizational charts provide a visual presentation of lines of authority and periodic updates of job descriptions ensures that employees are
aware of the duties they are expected to perform.
3.Authorization Procedures need to include a thorough review of supporting information to verify the propriety and validity of transactions. Approval authority is to
be commensurate with the nature and significance of the transactions and in compliance with COMPANY policy.
4.Segregation of Duties reduce the likelihood of errors and irregularities. An individual is not to have responsibility for more than one of the three transaction
components: authorization, custody, and record keeping. When the work of one employee is checked by another, and when the responsibility for custody for assets is
separate from the responsibility for maintaining the records relating to those assets, there is appropriate segregation of duties. This helps detect errors in a timely
manner and deter improper activities; and at the same time, it should be devised to prompt operational efficiency and allow for effective communications.
5.Physical Restrictions are the most important type of protective measures for safeguarding COMPANY assets, processes and data.
6.Documentation and Record Retention is to provide reasonable assurance that all information and transactions of value are accurately recorded and retained.
Records are to be maintained and controlled in accordance with the established retention period and properly disposed of in accordance with established procedures.
7.Monitoring Operations is essential to verify that controls are operating properly. Reconciliations, confirmations, and exception reports can provide this type of
information.
3. Recently a very popular strategic alliance took place. Take the case of that alliance and analyze it looking at the benefits of strategic alliances.

COMPANIES look for like-minded companies that understand


the complementary value and content solutions can bring to their customers.
By combining each company’s products and services, turn-key solutions
can be developed to efficiently address market needs and tap into new technologies.

Ultimately the Strategic Alliance Program really means one thing:


by participating in the alliance program your company has the potential to increase its revenue and grow its sales and business opportunities.
The Strategic Alliance Program offers excellent opportunities -- regardless of company type and size – by enabling companies to:
Expand the market opportunity for your business in the fast-growing collaboration market space Increase your company's knowledge base through access to
collaboration experts
Partner with a proven, x-year leader in the content space. ALLIANCE goal is to ensure the success of our combined efforts to grow our businesses together by
identifying and acting on ways to increase mutual revenue opportunities, including:
Introductions to new customers and new markets
Issuance of joint press releases
Development of joint marketing collateral
Joint participation in tradeshows
Speaking opportunities at PUBLIC symposia
Preparation of joint proposals
Logo placement on corporate web site

Strategic alliances are common to any industry. Their presence is felt quite significantly in the
airline industry.
EXAMPLE :-

TATA – DOCOMO

TATA DOCOMO is Tata Teleservices Limited's (TTSL) telecom service on the GSM platform-arising out of the Tata Group's strategic
alliance with Japanese telecom major NTT DOCOMO in November 2008. Tata Teleservices has received a pan-India license to
operate GSM telecom services, under the brand TATA DOCOMO and has also been allotted spectrum in 18 telecom Circles. TTSL
and has already rolled out its services in various circles.

The launch of the TATA DOCOMO brand marks a significant milestone in the Indian telecom landscape, as it stands to redefine the
very face of telecoms in India. Tokyo-based NTT DOCOMO is one of the world's leading mobile operators-in the Japanese market,
the company is clearly the preferred mobile phone service provider in Japan with a 50 per cent market share.

NTT DOCOMO has played a major role in the evolution of mobile telecommunications through its development of cutting-edge
technologies and services. Over the years, technologists at DOCOMO have defined industry benchmarks like 3G technology, as also
products and services like the i-modeTM, mobile payment and a plethora of lifestyle-enhancing applications. Today, while most of
the rest of the industry is only beginning to talk of LTE technology and its possible applications, DOCOMO has already started
conducting LTE trials in physical geographies, not just inside laboratories!

DOCOMO is also a global leader in the VAS (Value-Added Services) space, both in terms of services and handset designs,
particularly integrating services at the platform stage. The Tata Group-NTT DOCOMO partnership will see offerings such as these
being introduced in the Indian market under the TATA DOCOMO brand.

TATA DOCOMO has also set up a 'Business and Technology Cooperation Committee, comprising of senior personnel from both
companies. The committee is responsible for the identification of key areas where the two companies will work together. DOCOMO,
the world's leading mobile operator, will work closely with the Tata Teleservices Limited management and provide know-how on
helping the company develop its GSM business.

Despite being a late entrant, Tata Indicom, TTSL's CDMA brand, has already established its presence and is the fastest-growing
pan-India operator. Incorporated in 1996, Tata Teleservices Limited is the pioneer of the CDMA 1x technology platform in India.
Today, Tata Teleservices Limited, along with Tata Teleservices (Maharashtra) Ltd, serves over 37 million customers in more than
320,000 towns and villages across the country offering a wide range of telephony services including Mobile Services, Wireless
Desktop Phones, Public Booth Telephony and Wire-line Services.

Tata is a registered trademark of Tata Sons Ltd.


The DOCOMO logo is a trademark of NTT DOCOMO, INC. (Japan) in India

About NTT DOCOMO

NTT DOCOMO is Japan's premier provider of leading-edge mobile voice, data and multimedia services. With more than 54 million customers in
Japan, the company is one of the world's largest mobile communications operators.

DOCOMO also is an influential force in the continuing advancement of mobile technologies and standards. In 1999, DOCOMO launched i-mode™,
the world's most popular platform for mobile Internet services including e-mail, browsing, downloading and more. Over 48 million DOCOMO
subscribers now use i-mode.
In 2001, DOCOMO introduced FOMA™, the world's first 3G commercial mobile service based on W-CDMA, which has transformed the mobile
landscape in Japan while bringing the DOCOMO brand global recognition.

The role of mobile phones as "lifestyle tools" was cemented when DOCOMO launched Osaifu-Keitai™, a mobile wallet platform enabling quick,
contactless transactions for cash, credit, ID, and more. More than 34 million phones equipped for Osaifu-Keitai services are now in use.

Building on a solid foundation of research and development, and guided by its customer-first philosophy, the company leverages the power of mobile
communications to enable customers to enrich their lives.

DOCOMO is expanding its global reach through offices and subsidiaries in Asia, Europe and North America, as well as strategic alliances with mobile
and multimedia service providers in markets worldwide.

Quick Facts

President and CEO:


Ryuji Yamada
Headquarters:
2-11-1 Nagata-cho, Chiyoda-ku, Tokyo, Japan 100-6150
Map
Capital:
949.68 billion yen
Employees:
22,843 (NTT DOCOMO Group)

About TATA TELESERVICES LTD

Tata Teleservices Limited spearheads the Tata Group’s presence in the telecom sector. The Tata Group had revenues of around US $62.5 bn in
Financial Year 2007-08, and includes over 90 companies, around 350,000 employees worldwide and more than 3.2 million shareholders.
Incorporated in 1996, Tata Teleservices is the pioneer of the CDMA 1x technology platform in India. It has embarked on a growth path since the
acquisition of Hughes Tele.com (India) Ltd [renamed Tata Teleservices (Maharashtra) Limited] by the Tata Group in 2002. It launched mobile
operations in January 2005 and today enjoys a pan-India presence through existing operations in all of India’s 22 telecom Circles. The company is
also the market leader in the fixed wireless telephony market. The company’s network has been rated as the ‘Least Congested’ in India for last four
consecutive quarters by the Telecom Regulatory Authority of India through independent surveys.
Tata Teleservices Limited now also has a presence in the GSM space, through its joint venture with NTT DOCOMO of Japan, and offers differentiated
products and services under the TATA DOCOMO brand name. TATA DOCOMO arises out of the Tata Group’s strategic alliance with Japanese
telecom major NTT DOCOMO in November 2008. TATA DOCOMO has received a pan-India license to operate GSM telecom services—and has also
been allotted spectrum in 18 telecom Circles and will roll out its services shortly, starting with South India.
TATA DOCOMO marks a significant milestone in the Indian telecom landscape, as it stands to redefine the very face of telecoms in India. Tokyo-
based NTT DOCOMO is one of the world’s leading mobile operators—in the Japanese market, the company is the clear market leader, used by over
50 per cent of the country’s mobile phone users.
Today, Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra) Ltd, serves over 36 million customers in more than 320,000 towns and
villages across the country, with a bouquet of telephony services encompassing Mobile Services, Wireless Desktop Phones, Public Booth Telephony
and Wireline Services. Other services include value-added services like Voice Portal, Roaming, Post-paid Internet Services, Three-way Conferencing,
Group Calling, Wi-Fi Internet, USB Modem, Data Cards, Calling Card Services and Enterprise Services. Some of the other products launched by the
company include Pre-paid Wireless Desktop Phones, Public Phone Booths, Mobile Handsets and Voice & Data Services such as BREW Games,
Voice Portal, Picture Messaging, Polyphonic Ring Tones, and Interactive Applications like news, cricket, astrology, etc.
In December 2008, Tata Teleservices announced a unique reverse equity swap strategic agreement between its fully-owned telecom tower
subsidiary, Wireless TT Info-Services Limited, and Quippo Telecom Infrastructure Limited—with the combined entity kicking off operations with 18,000
towers, thereby becoming the largest independent entity in this space. Tata Teleservices’ bouquet of telephony services includes mobile services,
wireless desktop phones, public booth telephony and wireline services.

Others are :
1.JETAIRWAYS ---KLM
The guiding factors will be several that include formation of blocs, resource scarcity, limits on foreign ownership and limitations imposed by
bilateral agreements. They further forwarded the argument that to be a part of an alliance will become a necessity for an airline to survive in the future.

2.TOYOTA --- GM
-share auto technology.
-share the design facilities
-share the 6 cyl / 8 cyl alloy engine manufacturing
-share common parts supply
-share distribution points.

3.NIIT ---MICROSOFT

-NIIT IS THE CERTIFICATION / TRAINING


AGENT FOR MICROSOFT IN INDIA.
3. Recently a very popular strategic alliance took place. Take the case of that alliance and analyze it looking at the
benefits of strategic alliances.
COMPANIES look for like-minded companies that understand the complementary value and content solutions can bring to their
customers.
By combining each company’s products and services, turn-key solutions can be developed to efficiently address market needs and tap
into new technologies.

Ultimately the Strategic Alliance Program really means one thing:


by participating in the alliance program your company has the potential to increase its revenue and grow its sales and business
opportunities.
The Strategic Alliance Program offers excellent opportunities -- regardless of company type and size – by enabling companies to:
Expand the market opportunity for your business in the fast-growing collaboration market space
Increase your company's knowledge base through access to collaboration experts
Partner with a proven, x-year leader in the content space.
ALLIANCE goal is to ensure the success of our combined efforts to grow our businesses together by identifying and acting on ways to
increase mutual revenue opportunities, including:
Introductions to new customers and new markets
Issuance of joint press releases
Development of joint marketing collateral
Joint participation in tradeshows
Speaking opportunities at PUBLIC symposia
Preparation of joint proposals
Logo placement on corporate web site

Strategic alliances are common to any industry. Their presence is felt quite significantly in the airline industry.
1.JETAIRWAYS ---KLM
The guiding factors will be several that include formation of blocs, resource scarcity, limits on foreign ownership and limitations
imposed by
bilateral agreements. They further forwarded the argument that to be a part of an alliance will become a necessity for an airline to
survive in the future.
2.TOYOTA --- GM
-share auto technology.
-share the design facilities
-share the 6 cyl / 8 cyl alloy engine manufacturing
-share common parts supply
-share distribution points.
3.NIIT ---MICROSOFT
-NIIT IS THE CERTIFICATION / TRAINING
AGENT FOR MICROSOFT IN INDIA.
#############################################
4. What do you understand by differentiation strategy? discuss by formulating a differentiation strategy for a
company, which is into FMCG Sector.
Differentiation Strategy Defined
Your differentiation strategy is an integrated set of action designed to produce or deliver goods or services that customers perceive as
being different in ways that are important to them. It call for you to sell nonstandardized products to customers with unique needs.
Why Differentiate?
The concept of being unique or different is far more important today than it was ten years ago. The key to successful marketing and
competing is differentiation.
Hypercompetition is a key feature of the new economy. What used to be national markets with local companies competing for
business has become a global market with everyone competing for everyone's business everywhere. With the enormous competition
markets today are driven by choice - your targeted customers have too many choices, all of which can be fulfilled instantly. Choosing
among multiple options is always based on differences, implicit or explicit, so you ought to differentiate in order to give the customer a
reason to chose your product or service. Thus, "differentiation is one of the most important strategic and tactical activities in which
companies must constantly engage. It is not discretionary".1

Differentiation should be aimed at the broad market that involves


-the creation of a product or services that is perceived throughout its industry as unique.
*The company or business unit may then charge a premium for its product.
*This specialty can be associated with design, brand image, technology, features, dealers, network, or customers service.
Differentiation is a viable strategy for earning above average returns in a specific business because the resulting brand loyalty lowers
customers' sensitivity to price. Increased costs can usually be passed on to the buyers. Buyers loyalty can also serve as an entry
barrier-new firms must develop their own distinctive competence to differentiate their products in some way in order to compete
successfully.
A differentiation strategy is more likely to generate higher profits than is a low cost strategy because differentiation creates a better
entry barrier.
-Positioning and differentiating the business .
-Positioning and differentiating the products against rivals
-USING the Business-level cross-functional process management
-Anticipating changes in technology and customer perceptions and adjusting the strategy to accommodate them.
-Influencing the nature of competition through strategic actions such as virtual integration and through political actions
-Building strategic partnerships and co-innovating with other business units, partners, and customers.

PROVIDING CUSTOMERS WITH MORE


VALUE-ADDED [ MVA ]

"MVA means that you give the customer more, perhaps far more, than you ever have before. It goes beyond simplifying your
customers' interactions with you to delivering solutions to your customers' problems, of which your products and services in their
native forms are but small pieces... You can visualize the principle of MVA as a ladder with your product at the bottom and the solution
to your customer's problems at the top. The more help you provide your customers to fill that gap, the more value you add to them,
which, of course, differentiates you from your competitors who are still scrambling around at the bottom of the ladder. Also, it is to
your advantage to control as much of the ladder as you can – customers will be less likely to abandon you in favor of someone else,
lower down the ladder, who offers less value. At the same time, your opportunity for margin and profit increase."7

KEY ELEMENTS OF DIFFERENTIATING STRATEGY


reflect the spirit of the Business
be symbolic and intuitive
be distinctive
catch eye
stay in memory
connect to different cultures
be adaptable..
ETC ETC
=======================================================
AN ORGANIZATION CAN DEVELOP A SERIES OF
DIFFERENTIATION STRATEGIES
DEPENDING ON ITS PRODUCT/ MARKET SITUATIONS AND
THE ORGANIZATION RESOURCES.
============================================
*CHANGING PRICES STRATEGY
-develop a pricing strategy which will allow the organization to lower prices
to gain market monoploy and / or prevent competition from entering.
===========================================================
*IMPROVING PRODUCT DIFFERENTIATION STRATEGY
-improve the product features/ benefits to gain significant advantage in the market.
-----------------------------------------------------------------------------
-develop and implement innovations in the manufacturing process to gainadvantage for the product cost/ distribution.
-----------------------------------------------------------------------------
-develop a brand consciousness in the market to reduce substitution from entering the market.
=============================================
*CREATIVELY USING CHANNELS OF DISTRIBUTION STRATEGY
-using vertical integration, to acquire a channel and dominate.
---------------------------------------------------------------------------------------
-developing a new / unique distribution channel which is a novelto the industry.
--------------------------------------------------------------------
*EXPLOITING RELATIONSHIP WITH SUPPLIERS STRATEGY
-developing / setting E-COMMERCE with suppliers.
------------------------------------------------------------------------
-developing/ extending TQM [total quality management] and JIT [just in time]with suppliers to meet the demands of product
specifications / price.
==================================================
*COST LEADERSHIP
-develop the manufacturing to achieve a gross margin, whichcould be used to cut price to gain market share, if/when
required.
--------------------------------------------------------------------------------------------
-develop the product sourcing from anywhere, to achieve a gross margin, whichcould be used to cut price to gain market
share, if/when required.
-----------------------------------------------------------------------------------------
-develop a trade rebate system for large quantity buyerswhich could block competitors entry.
==============================================
*PRODUCT DIFFERENTIATION STRATEGY
-develop unique patented or proprietary product know-howwhich is hard to copy/ compete.
---------------------------------------------------------------------
-develop an unique customer loyalty program
which will make brand switching difficult.
------------------------------------------------------------------------
-develop a incentive strategy for major buyers, so that
they would always use your brand.
============================================
*FOCUS STRATEGY
-within your organization, develop your core competences
which are unique for your product / market.
----------------------------------------------------------------
-develop a strategy to lift the profile/ image of
your organization.
5. Briefly explain as to how an organisation mission influences the management to go global and engage itself in
international operations. Give Examples.

What is a Mission Statement?


You should think of a mission statement as a cross between a slogan and an executive summary. Just as slogans and executive
summaries can be used in many ways so too can a mission statement. An effective mission statement should be able to tell your
organization story and ideals in less than 30 seconds.
Here are some basic guidelines in writing a mission statement:
A mission statement should say who your organization is, what you do, what you stand for and why you do it. .
The best mission statements tend to be 3-4 sentences long.
Avoid saying how great you are, what great quality and what great service you provide.
Make sure you actually believe in your mission statement, if you don't, it's a lie, and your customers will soon realize it.
=========================================================================
McDONALD MISSION STATEMENT
"McDonald's vision/ MISSION is to be the world's best quick service restaurant experience. Being the best means providing
outstanding quality,
service, cleanliness, and value, so that we make every customer in every restaurant smile."
IF YOU ANALYZE THE MISSION STATEMENT
and THE SIGNIFICANT WORDS IN IT.
*BEST QUICK SERVICE.
*OUTSTANDING QUALITY
*OUTSTANDING SERVICE
*CLEANINESS
*VALUE
*MAKE THE CUSTOMER SMILE.

McDONALD has taken these elements to every


corner of the world.
-usa, canada,mexico
-brazil, argentina
-uk, west europe
-russia, east europe
-china
-west asia
-africa continent
-india,south east asia
-australia / new zealand
THEY HAVE APPLIED THE COMPANY MISSIONEVERYWHERE UNIFORMLY.
AT THE SAME TIME, THEY HAVE ADOPTEDTHE TASTE /CUSTOMS OF THE LOCAL REGION.
THAT IS THE REASON THEY ARE SUCHA WONDERFUL/ SUCCESSFUL COMPANY.
THEIR MISSION DRIVES THE BUSINESS.