Strategic Leadership

MCRF

 Managers drive their power from discretion and respect from creditability.
 If mangers power loses, union leaders become powerful for workers.
 Union leaders try to reduce the manager’s power by discretion.
 Union leaders may be from outside but members of unions must be from internal.
 IR is a very serious issue, can be handled depends on context and their source of power to
be identified to control.
 Mehta taken unusual root. In declined condition ordinary creativity will not work, need
forced creativity. Forced creativity can be get when there is problem or derived solution is
possible.
 Single loop learning: Thinking and finding the solution within the theoretical assumptions
(boundaries) how can do better is called Single loop learning.
 Double loop learning: when you challenge theory itself. For that need people who think
radical way.
 In sick industry, we need who not blinded by theory. But he may take time to understand
the industry.
Thinking and finding the solution within the theoretical assumptions (boundaries) how can
do better is called Single loop learning.

VRS

 Production has reduced because capability utilization is very low. In that case always can be
find surplus workforce.
 to manage surplus work force
o remove method (surgical)
o find other usage( development )
 Development always time consuming process. It may not suitable for declined or bleeding
industries.
 For VRS problem is with their managers. Because they are not able to go their workers to go
out. Reason may be social connect or work load.
 Mehta got the report from credible source to cut the manpower.
 Sick companies cannot be provide luxurious VRS benifits.

MOBIL USM&R

 CEO says “hey we didn’t make money this quarter but feel good abut where the business is
going”
Corporate strategy
o Product
o Customer
o Market
 Existing market product cannot be changed and market also bit difficult to change. But Mobil
choose customer segment for their re-strategy.
o Road warriors
o True blues
o Generation F3
 And re-modified the stores called C-stores which having sandwich and snacks.
 ROCE: improve means customer started paying or price of product may be raised. ROC
depends on the margin and rotation.
 Visualise the customer before segmenting and targeting.
 Which segment to be targeted?: how customer segment attracted to our business.
 Test your strategy whether success or no? And also test end result.
 Structure
o Divisional
o Autonomy
o Accountability
 Accountability and autonomy are duality. Duality is like magnet which both side’s equally
strong poles.
 Autonomy has reduced control over there. Even if raised rotation of cycles but ROCE
reduced.
 McCool created performance measurement system
o Financial
o Customer
o Internal process
o Leaning and growth.