Raj Aphale Strategy Presentation

Business Strategy
Webinar
CMA Rajendra D Aphale
B. Tech., MMS, ACMA, LL.B.
Cost Accountant

Rajendra.Aphale@gmail.com,
+91-77385 91521
2/58
Introduction
Raj is a practicing cost accountant, consultant and
trainer and helps his clients in-
-Strategy planning and implementation,
balanced score cards, business analytics
-Interim Management
-Lean management, kaizen etc
-Human resource management- OD,
compensation, competency, performance
management
-Costing systems, cost management, cost audit,
compliances, performance management
Raj has done work in 16 countries other than India,
including US, UK, Germany, Singapore

+91-77385 91521
3/58
Introduction
Raj is a practicing cost accountant, consultant and
trainer and helps his clients in-
-Strategy planning and implementation,
balanced score cards, business analytics
-Interim Management
-Lean management, kaizen etc
-Human resource management- OD,
compensation, competency, performance
management
-Costing systems, cost management, cost audit,
compliances, performance management
Raj has done work in 16 countries other than India,
including US, UK, Germany, Singapore

+91-77385 91521
4/58
Agenda

What is Strategy?

Why Strategy?

Mission

Values

Vision

Competitive advantage

Core competency

+91-77385 91521
5/58
Agenda

Levels of Strategy

Forms of Strategy

Defining your business

Stages in Strategy Management

Focus

Strategy tools – environment scanning SWOT,
PESTEL, Porter's 5 forces

+91-77385 91521
6/58
Agenda...

Strategy tools – others

Strategy execution

Organising for strategy

+91-77385 91521
7/58
What is Strategy
Many experts have defined strategy in many
ways-
* Plan of action to achieve goals
* Plan of action with some patterns
* Path to reach milestones
* Pattern or common thread related to
organisation's activity
* Optimum allocation or resources
*....

+91-77385 91521
8/58
What is Strategy....
Michael Porter defines it as
“Strategy is the creation of a unique and valuable
position, involving a different set of activities”

+91-77385 91521
9/58
Why Strategy?

Strategy is expected to provide direction to an
organisation

Strategy creates predictability

Strategy helps aligning different functions in an
organisation

Strategy helps achieve vision

+91-77385 91521
10/58
Why Strategy?

Strategy involves creating a fit among different
activities of a business

Strategy helps achieving better return on
investment than industry average consistently

“A company can outperform its rivals only if it
can establish a difference it can preserve” -
Michael Porter

+91-77385 91521
11/58
Mission

Purpose of existence of an organisation

What is your company's mission?

What is your mission?

+91-77385 91521
12/58
Mission...

Mission should indicate -
– Who our customers are
– What needs of our customers are we serving
– What are the unique ways we are serving the
needs

+91-77385 91521
13/58
Values

What the organisations live by

Created by leaders' behaviour, Demonstrated
by employees' behaviour

Will decide how a company will do business,
what businesses it may or may not do; whether
it will focus long term or short term

May limit an organisation's growth

+91-77385 91521
14/58
Vision

How do we see our future? (Where do you see
yourself in 5 years?)

Word picture of what the organisation will be in
the next few years

Vision needs to be SMARTS

What is your company's vision?

What is your vision?

+91-77385 91521
15/58
Competitive Advantage

What an organisation can do better than its
competitors, based on KSFs for the industry

Quantify, as far as you can

+91-77385 91521
16/58
Core Competency

A harmonised combination of multiple
resources and and skills that distinguish a firm
in the marketplace

Core competencies must -
– Provide potential access to several markets
– Should make significant contributions to
perceived customer benefits of the end product
– Should be difficult to copy

+91-77385 91521
17/58
Levels of Strategy

Corporate level - business portfolio
management, allocation of corporate
resources, broad policies

Business unit level (SPU level) – Business
growth, product / service portfolio, competitive
advantage

Functional level – how different functions will
support business strategy

+91-77385 91521
18/58
Forms of Strategy

Emergent strategy – Mintzberg

Deliberate strategy – Porter

+91-77385 91521
19/58
Mintzberg

Forms of strategy-

Entrepreneurial

Adoptive

Planned

(unconnected, imposed, consensus, confused!)

+91-77385 91521
20/58
Mintzberg

5Ps of strategy

Plan

Plot

Pattern

Position

Perspective

+91-77385 91521
21/58
Porter

Deliberate strategy

Generic strategies

Cost leadership

Differentiation

Choice of the market

+91-77385 91521
22/58
Defining your business

What business are you in?

+91-77385 91521
23/58
Focus

“Strategy is defining what to do and what not to
do” - Michael Porter

What has your business decided to do?

What has your business decided not to do?

+91-77385 91521
24/58
Stages in Strategy Management

Strategic analysis

Strategic choices

Strategy execution

+91-77385 91521
25/58
Thank you
+91-77385 91521
rajendra.aphale@gmail.com

+91-77385 91521
26/58
Strategy Management
Part II

+91-77385 91521
27/58
Strategy tools
Environment scanning tools

PESTEL

SWOT

Michael Porter's Industry Analysis

+91-77385 91521
28/58
PESTEL

P-political factor e.g. changes in international
trade, taxation policy

E-economic factor e.g. interest rates,
exchange rates, national income, inflation,
unemployment, Stock Market

S-social factor e.g. ageing population,
attitudes to work, income distribution

+91-77385 91521
29/58
PESTEL

T-technological factor e.g. innovation, new
product development, rate of technological
obsolescence

E-environment factor e.g. global warming,
environmental issues

L-legal factor e.g. competition law, health and
safety, employment law

+91-77385 91521
30/58
SWOT

Internal and external scan

Strengths is what we can do better than
competition, based on KSFs

Quantify all four elements

Take opinions out, facts only please

+91-77385 91521
31/58
Industry Analysis

+91-77385 91521
32/58
Industry Analysis
5 forces in any industry-

Internal Rivalry

Entry barriers

Substitutes

Buyers

Sellers

(Collaborators or complementors)

+91-77385 91521
Degree of Rivalry
Exit barriers
Industry concentration
Fixed costs
Industry growth
Intermittent overcapacity
Switching costs
Brand identity
Diversity of rivals
Corporate stakes
33/58

+91-77385 91521
New Entrants and Entry Barriers
Absolute cost advantages
Access to inputs
Government policy
Economies of scale
Capital requirements
Brand identity
Switching costs
Access to distribution
Proprietary products
34/58

+91-77385 91521
Substitutes
Switching costs
Buyer inclination to substitute
Variety of substitutes
Price-performance tradeoff of substitutes
Necessity for product or service
35/58

+91-77385 91521
Buyer Power
Buyer volume and information
Brand identity
Price sensitivity
Threat of backward integration
Product differentiation
Substitutes
36/58

+91-77385 91521
Supplier Power
Supplier concentration
Differentiation of inputs
Switching costs
Threat of forward integration
Cost relative to total purchases in industry
37/58

+91-77385 91521
Role of Complementors
Number of complements
Relative value added
Difficulty of engaging complements
Buyer perception of complements
Complement exclusivity
Tend to increase profits by increasing demand
for an industry’s products
38/58

+91-77385 91521
39/58
Strategy tools
Portfolio analysis

BCG Matrix

GE McKinsey matrix

+91-77385 91521
40/58
BCG Matrix

+91-77385 91521
41/58
GE McKinsey Matrix

Industry attractiveness v/s firm
competitiveness

3x3 matrix

+91-77385 91521
42/58
GE McKinsey Matrix

+91-77385 91521
43/58
Strategy tools
Other tools

Value Discipline

Ansoff Matrix

McKinsey 7S framework (organisational
effectiveness)

Game Theory

Ohme framework

+91-77385 91521
44/58
Value Discipline
3 possible value disciplines
Product Leadership
Customer Intimacy
Operational Excellence

+91-77385 91521
45/58
Value Discipline

+91-77385 91521
46/58
Ansoff Matrix

Product Market matrix

Penetration

Market Development

Product Development

Diversification

+91-77385 91521
47/58
Ansoff Matrix

+91-77385 91521
McKinsey 7-S Framework (org
effectiveness)
48/58

+91-77385 91521
49/58
Game Theory

Anticipate competitors' response to your
strategic actions, and its impact on overall
industry and your business

Anticipate competitors' actions and possible
impact on your business

Tackle uncertainty situations

Appropriate and needed in today's uncertain
world as we know solutions for future which is
vaguely predictable

+91-77385 91521
50/58
Ohme framework

Integrate 3Cs to create competitive advantage

Corporation – Selective and sequencing, trade
off of make buy

Competition – people, money, and things
(assets)- allocation; cost structure

Customers – segmentation by objectives,
market coverage trade off, further
segmentation

+91-77385 91521
51/58
Ohme framework

+91-77385 91521
52/58
Strategy and Culture

Why is culture important?

+91-77385 91521
53/58
Strategy Execution

Isn't it obviously easy after the hard work in
creating the plan

Over 90% of well crafted plans fail in execution

Need proper organisation and focus

Need alignment of business objectives to
strategy, of different departments to each other
and of different employees to each other

Balanced scorecard as a tool

+91-77385 91521
54/58
Balanced scorecard

+91-77385 91521
55/58
Organising for Strategy

Strategy office

Top Management driven

Cross functional

Rotating team

+91-77385 91521
56/58
Role of CMAs

Understand business

Unbiased assessment of business, not to
please the management

Continuous exercise

Forecasting, reassessing assumptions

Evaluating alternatives

Sensitivity analysis

Shareholders' perspective, customer
perspective

+91-77385 91521
57/58
Why managers don't think strategy

Short term vs long term thinking

Fear of failure

Overconfidence

Prior bad experience

Self-interest

Fear of the unknown

Honest difference of opinion

Suspicion

+91-77385 91521
58/58
Thank you
+91-77385 91521
rajendra.aphale@gmail.com

Raj Aphale Strategy Presentation

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to Raj Aphale Strategy Presentation

Similar to Raj Aphale Strategy Presentation (20)

Raj Aphale Strategy Presentation