Adl matrix (1)

1. STRATEGY MANAGEMENT ADL - MATRIX SUMMITED BY: GROUP – 7 NITISH GOEL (65) SANTOSH GHILDIYAL (72) ANKIT PHARTIYAL (77) LAISHRAM ARNOLD SINGH ( 91) DHEERAJ KUMAR (118)

2. What is ADL Matrix Developed in the late 1970s by the highly respected consultancy co, Arthur D Little. The co. is based in Boston , Massachusetts and founded by Arthur Dehon Little. Use for developing business strategies, as well as for strategizing marketing plans for a particular product line or for a single product Helps a business to plan its strategies based on: Competitive Position – How strong is strategic position. Industry Maturity – At what stage of its lifecycle is the business unit.

3. Four steps in creating ADL Matrix:   1 . Determining the SBUs of the company (strategic segmentation done by clearly defined procedures)  2. Identifying phases of industrial maturity for each SBU (this should be done for each business in all SBUs )  3. Determine SBUs competitive position (company's competiveness in specific, narrow defined industry)  4. Plotting sizes and positions of SBUs on ADL Matrix  13-02-2013 3 SM_ADL MATRIX_GROUP 7

4. The Industry Maturity Stage   The industry maturity is based on the assessment of the following criteria : Embryonic : Introduction stage characterized by rapid market growth and very little competition . Growth : Market continues to strengthen and sales increase. Mature : Market is stable, there's a well established customer base and a lot of competition . Aging : Demand decreases and companies start to abandoning the market.

5. The Competitive Position The competitive position of a firm is based on the assessment of the following criteria: Dominant : This is a comparatively rare and typically short-lived. In many cases is either to a monopoly or a strong and protected technology leadership . Strong : Market share is strong and stable, regardless of competitors. The firm has a considerable degree of freedom over its choice of strategies and is often able to act without its market position. Favorable : Business line enjoys competitive advantages in certain segments of market. However there are many rivals, and no clear leader among stronger rivals. Tenable : Position in overall market is small or niche, either geographical or defined by product. Competitors are getting stronger . Weak : Continuous loss of market share. Business line is too small to maintain profitability. 13-02-2013 5 SM_ADL MATRIX_GROUP 7

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7. F ocus on holding onto market position, and the market share it’s bound to fall and nothing much can be done about it. 13-02-2013 7 SM_ADL MATRIX_GROUP 7

8. T wo options either to tightly hold on to your market position, or to cut down on the expenses so as to harvest more profits. 13-02-2013 8 SM_ADL MATRIX_GROUP 7

9. With the exit point approaching, the ideal strategy here is to cut out expenses, start harvesting profits and develop a phased withdrawal plan. 13-02-2013 9 SM_ADL MATRIX_GROUP 7

10. This situation is not likely to bring in any substantial profits, thus the business should think of planning a phased withdrawal or abandoning the industry. 13-02-2013 10 SM_ADL MATRIX_GROUP 7

11. The only choice a business has in this extreme situation is to abandon. 13-02-2013 11 SM_ADL MATRIX_GROUP 7

12. H P fuels BPCL’s vision ( By adopting Adl matrix ) The Indian oil sector was under government control until economic reform process began in the year 1991 . Subsequently, many fields viz., LPG, lubricants, refinery and even oil exploration and production were thrown open for private investment. The government of India has announced complete deregulation of the oil industry in April 2002 . BPCL’s change initiative started towards the end of 1996 with the help of Arthur D. Little, Inc .(ADL). 13-02-2013 12 SM_ADL MATRIX_GROUP 7

13. ADL’s methodology involved co creating a vision for the company, determining its current reality, conceptualisation of gaps between vision and current reality. According to ADL matrix BPCL lies in strong and mature category. They have to safe there market position and also grow there market share. 13-02-2013 13 SM_ADL MATRIX_GROUP 7

14. The Challenges – • Manage enterprise growth efficiently. • Be prepared for a liberalised environment with competitive IT infrastructure. • Achieve performance, reliability and scalability of applications. The overriding dimension of this exercise was on increased customer focus. 13-02-2013 14 SM_ADL MATRIX_GROUP 7

15. Innovating with HP The company had a host of in-house developed systems which ran on PCs. The data generated by many point solutions got consolidated at the regional offices and then, again, at the central office. All this exercise of data gathering, capture and consolidation was unwieldy and time-consuming. After a detailed study, their team concluded the need for replacing the existing batch process with ERP system (SAP/ R3 software was chosen). For fulfilling its demanding data requirements in a centralized setup as part of its re-architected IT infrastructure, BPCL chose HP Surestore XP256 and XP512 disk storage systems and Ultrium tape library. 13-02-2013 15 SM_ADL MATRIX_GROUP 7

16. Benefits-- The deployment of HP’s storage boxes has made the management of enterprise wide data easier and faster . Reduction in process hierarchy. Future initiatives such as its Petro card debit cards can leverage on the IT infrastructure. Enhanced operational competitiveness through best-in- class technology. 13-02-2013 16 SM_ADL MATRIX_GROUP 7

17. THANK - YOU 13-02-2013 17 SM_ADL MATRIX_GROUP 7