1

B.B.A. Program (2017-20 Batch)

School of Business
Auro University
Surat
Strategic Management
Friday, March 27, 2020
2

Template for the Project Titled “ Backward

Integration of Elite Business School
 Mission

Develop a mission for elite mission

Why does Elite Business School exist?
Mention the purpose of existence
 Vision
4

Develop a vision for Elite Business School

Where does Elite Business want to be
distant in future?
 Goals
5

What are the goals of Elite Business

School?
 Objectives
6

 What are the objectives of Elite Business School?

 First Step: Objectives in 5 functional areas of business
namely H.R., Marketing, Finance, Operations and General
Management
 Second Step: 7 types of objectives Objectives (PPCEETP)
 Profitability, Productivity
 Public Responsibility, Employee Relations. Employee
Development, Technological Leadership, Competitive Position
 7 Resources
 Briefly describe the following:
 What you have? (Elite Business School)
 Major Categories of Resources
 Tangible: Cash, Buildings etc.
 Intangible: Brand Name, Patents,
Relationships/connections in the market etc.
 Relationships/connections in the market etc.
 Assessment of New Venture
8

 Use the following Criteria:

i. Entry Wedge Mimicry
ii. Lead Time
iii. Stability of Key Success Factors
iv. Timing of Entry
v. Scope
vi. Industry Competence
vii. Educational Capability
viii.Competitive Rivalry
 Entry Wedge Mimicry
9

Entry Wedges Mimicry may be defined as

imitation using competitive weapons that may be
used to enter an industry. (Example:
Franchising).
 Instrument to Measure Entry Wedge Mimicry
10

1. High Entry Wedge Mimicry with very later entry or Low Entry Wedge
Mimicry with very early entry 5
2. High Entry Wedge Mimicry with later entry or Low Entry Wedge Mimicry
with early entry 4
3. High Entry Wedge Mimicry with moderately later entry or Low Entry Wedge
Mimicry with moderately early entry 3
4. High Entry Wedge Mimicry with early entry or Low Entry Wedge Mimicry
with very late entry 2
5. High Entry Wedge Mimicry with very early entry or Very Low Entry Wedge
Mimicry with extremely late entry 1
 Measurement of Lead Time
11

Lead Time is the period of monopoly enjoyed by

the Pioneer
Instrument to measure Lead Time
Time Period in months of monopoly enjoyed by the
Pioneer
Nil 1 6 Months 2 12 Months 3 18 Months 4 24 Months and above 5
 Stability of Key Success Factors
12

 Key Success Factor Stability is the absence of rapid

change in the industry derived from customers’ liking
and appreciation pertaining to the features of the
product.
 Measurement of Stability of Key Success Factors
13

1. Existence of factors influencing the liking of customers on the aspect of

features of the Product/Service
Very High 5 High 4 Moderate 3 Limited 2 Nil 1
2. Existence of factors influencing the appreciation of customers on the
aspect of features of the Product/Service
Very High 5 High 4 Moderate 3 Limited 2 Nil 1
 Timing of Entry
14

Stage at which the entrepreneur(s) has/have

started the business
 Timing of Entry
15

Instrument to measure Timing of Entry

1. Stage at which the entrepreneur(s) has/have started
the business
Entered the industry as a Pioneer 1
Entered the industry very early 2
Entered the industry early 3
Entered the industry as a late follower 4
Entered the industry as follower 5
 Scope
16

Width of segments covered by the company

 Instrument to measure Scope
17

1.Number of markets served

Very Few 1 Few 2 Moderate 3 Large 4
Very Large 5
2. Customer segments in all markets
Very Narrow 1 Narrow 2 Moderate 3 Wide
4 Very Wide 5
 Industry Competence
18
Industry Competence is the cluster of abilities
pertaining to the proposed /currently operating
venture
 Instrument to measure Industry Competence
19

1. The domain knowledge of founders pertaining to the proposed /currently operating venture
Does not Possess any industry knowledge 1
Possess a very low level of industry knowledge 2
Possess a low level of industry knowledge 3
Possess a moderate level of industry knowledge 4
Possess a high level of industry knowledge 5
2. The expertise of founders pertaining to the proposed /currently operating venture
Does not Possess any industry specific expertise 1
Possess a very low level of industry specific expertise 2
Possess a low level of industry specific expertise 3
Possess a moderate level of industry specific expertise 4
Possess a high level of industry specific expertise 5
 Educational Capability
20

 Educational Capability is defined as the relevance and

level of education to the proposed/currently operating
venture.
 Instrument to measure Educational Capability
21

Relevance of education to the proposed/currently operating venture

1. Education totally unrelated to the sector of business in which the
entrepreneur plans to get into 1
2. Education with a project related to the sector of business in which the
entrepreneur plans to get into 2
3. Education with a subject related to the sector of business in which the
entrepreneur plans to get into 3
4. Education through specialized courses broadly covering sector of
business in which the entrepreneur plans to get into 4 
5. Education through a industry specific educational program with related
to the sector of business in which the entrepreneur plans to get into 5
 
 Competitive Rivalry
22

Competitive Rivalry is defined as the intensity

of competition exerted by the players in the
market.
The number of players is also taken into
consideration to understand the concept of
competitive rivalry.
 Instrument to measure Competitive Rivalry
23

1. Number of players operating in the market

In thousands and above 5 ; 101 to 1000 4 ; 50 to
99 3 ; 20 to 49 2; 1-19 1
2. Aggressiveness of players in the market as
demonstrated by price wars, feature to feature
imitation
Very High 5 High 4 Moderate 3 Low 2 Very Low
 Capabilities
24

Briefly describe the following:

What you can do? (Elite Business School)
 SWOT Analysis
25

Conduct SWOT Analysis for Elite Business

School
 Strategy (PTF)
26

 Explore the applicability of positioning, trade off and

fit between activities for
 27
Strategic Groups

 Explain under what strategic group Elite Business

School falls under Elite Business School.
 What is the possibility of players in the industry to
switch from one strategic group to the other?
 What is the impact of such a switch from from one
strategic group to the other?
28
Generic Strategies

 Which of the strategies should Elite Business

School Low cost, differentiation or focus?
 Porter’s Five Forces
29

Apply Porter’s Five Forces to business school

industry.
What is the level of competition in the industry?
Is the business school industry attractive?
 Ansoff Matrix
30

New Product New Product

Existing Market New Market

Existing Product
Existing Market
Existing Product
New Market
 External Environment
31
Apply PESTEL Model
P Political
E Economic
S Social
E Economic
T Technological
E Environmental
L Legal
 Core Competence
32

 Does Elite Business School has any core

competence(s)?
 Balanced Score Card
33
 Financial Performance: To succeed financially, how
should we appear to our shareholders?
 Customer Knowledge: To achieve our vision, how
should we appear to our customers?
 Internal Business Process: To satisfy our shareholders
and customers, at which business processes must we
excel.
 Learning and Growth: To achieve our vision, how will we
sustain our ability to change and improve?
 Value Chain
34
 What are the primary activities?
 What are the secondary activities?
 Where are the profit pools?
 SIGAA Model
35

 Is Elite Business School operating in a niche?

 If yes, Evaluate Elite Business School
 Strategic Fit
36

 Is Elite Business School matching its resources and

capabilities to match the business opportunity?
 ETOP
37

How do you rate Elite Business School based on

ETOP?
 ETOP is a business tool that helps in knowing the impact of different sectors in the
environment on an organisation. The preparation of ETOP involves dividing the
environment into different sectors and then analyzing the impact of each sector on the
organization.
 A comprehensive ETOP requires subdividing each environmental sector into sub factors
and then the impact of each sub factor on the organization is described in the form of a
statement.
 The preparation of ETOP involves dividing the environment into different sectors and then
analyzing the impact of each sector on the organization. A comprehensive ETOP requires
subdividing each environmental sector into sub factors and then the impact of each sub
factor on the organization is described in the form of a statement.
 ETOP ( for a Motor Bike Company)
38

Environmental Sectors Impact of each Sector

Social (↑) Customer preference for motorbike, which are fashionable, easy to
ride and durable.
Political (→) No significant factor.

Economic (↑) Growing affluence among urban consumers; Exports potential high.

Regulatory (↑) Two Wheeler industry a thrust area for exports.

Market (↑) Industry growth rate is 10 to 12 percent per year, For motorbike
growth rate is 40 percent, largely Unsaturated demand.
Supplier (↑) Mostly ancillaries and associated companies supply parts and
components, REP licenses for imported raw materials available.
Technological (↑) Technological up gradation of industry in progress. Import of
machinery under OGL list possible.
39 Strategic Planning

 Where are we?

 Where do we want to go?
 How to reach there?
 Organisational Capability Profile
40

 How do you rate Elite Business School?

 Organisational Capability is the firm’s ability to manage people
to gain competitive advantage.
 It focuses on internal processes and systems for meeting
customer needs creates organization-specific competencies
that provide competitive advantage since they are unique
ensures that employee skills and efforts are directed toward
achieving organizational goals and strategies.
 Organisational Capability Profile
41

Organizational Capability enhances perceived customer value in three ways:

1) Responsiveness: The ability of the business to understand and meet
customer needs more quickly than competitors
2) Relationships: The ability of a business to develop enduring relationship
between customer and employee
3) Service Quality: The ability of business to design, develop and deliver
service that meets or exceeds customer expectations.
Organizational Capability enhances uniqueness because it is difficult to
imitate:
 Imitation requires changing the way people think, act, and interact.
 Organisational Capability Profile (4 Parts)
42
Financial Capability Profile
i. Sources of Funds
ii. Usage of Funds
iii. Management of Funds
Operations Capability Profile
i. Production System
ii. Operations and Control
Systems
iii. R&D System
Marketing Capability Profile
i. Product Related
ii. Price Related
iii. Promotion Related
iv. Integrated and Systematic
General Management Capability
Profile
i. General Management Systems
ii. External Relations
iii. Organisational Culture
 Findings
43

Mention the outcome of your analysis supported by

ratings (each concept, on a scale of 1 to 5)
 Conclusions
44

What are your Conclusions?

 Recommendations
45

Do you have any recommendations for Elite

Business School?
 46
Appendices

 Any Additional data that you have collected relevant

to the project can be placed in Appendices.
 References
47

Did you refer to any Articles, Industry Reports,

Books, websites etc.?
Mention all the references
48

Any Questions?
49

Thanks