Unit 1 - Corporate Strategy for International Business.ppt

Corporate Strategy

1. UNIT -1
CORPORATE
STRATEGIC
PLANNING

2. OUTLINE OF THE PRESENTATION
●CORPORATE STRATGIC SHIFTS
●NEED FOR STRATEGIC MANAGEMENT
●WHY STRATEGY?
●CORPORATE STRATEGY –A MASTER PLAN

3. CORPORATE STRATEGIC
SHIFTS
Big bang changes in the scope or
growth of Business often results in
Breakthrough Strategic Thinking.
TATA GROUP OF COMPANIES
GO GLOBAL DECISIONS

4. TATA TEA ACQUISITION
OF TETLEY
●Tata Global Beverages
●Acquiring Tetley
●Tetley is the largest
/company of Tea in the
United Kingdom and Canada
and second largest in United
States
●TATA is now the fifth in top
tea companies in the world

5. The Global Player –
TATA Motors
Acquisition of
●Daewoo Heavy Vehicles of
South Korea.
●Jaguar Land Rover -Britain

6. Acquisition of TATA
Steel
●Natsteel of Singapore
(2004)
●Millenium Steel of
Thailand (2005)
●Corus –Anglo Dutch Steel
maker ( 2007)
Enabled TATA one of the
largest producer of Steel in
the World.
(Currently in 7
th
position)

7. ITC GROUP OF
COMPANIES
●Tobacco Firm to Diversification

8. WHY STRATEGY?
SuccessfulCompanies due to good StrategyUnsuccessful Companies due to lack of
StrategicPlanning
SingaporeAirways US Airways
Dell Computers Compaqand Apple
Maruthi Ambassador and Padmini
Virgin Blue British Airways
Airtel Reliance

9. NEED FOR STRATEGIC MANAGEMENT
StrategicManagementisconcernedaboutthelong-termdevelopmentofanorganisationwith
aclearvisionabouttheorganisationalpurpose,scopeofactivitiesandobjectives.The
contextortheneedforStrategicManagementhasbeenverybeautifullyandsuccintly
articulatedbyrenownedManagementGuruPeterDrucker:
Management has"nochoicebutanticipatethefuture,toattempttomoldit,andto
balanceshort-rangeandlong-rangegoals.Thefuturewillnotjusthappenifone
wisheshardenough.Itrequiresdecisionnow.Itimposesrisk-now.Itrequires
action-now.Itdemandsallocationofresources-now.Itrequireswork-now."
TheseobservationshighlighttheessenceofwhatisknownasStrategicManagement/
BusinessPolicy/CorporateStrategy/CorporatePlanning.-

10. CORPORATE STRATEGY -A MASTER PLAN
Plan for accomplishing the corporate vision by
consolidating/strengthening its competitive
position,-based on its:
(1) vision/mission, philosophy and ethics,
(2) strengths and weaknesses, and
(3) environmental opportunities and threats.

11. MASTER PLAN
Itconnotesthefollowing:
1.Strategicmanagementisameanstotheend.Theend,i.e.,thepurpose,istorealise
thecorporatevision/mission.
2.Corporatestrategyisamasterplan-aplanthatencompassestheentireorganisation
foroveralldevelopment.Itisalong-termplanthatlaysdowntheroadmapforthe
overalldevelopmentoftheorganisation.Allsub-plans,likedivisionalorsectional
plans(SBUplans)shallbealignedwiththescopeandvision/objectivesofthemaster
plan,i.e.,corporatestrategy.
3.Itaimsatgaining/enhancingcompetitiveadvantagevis-à-visotherfirmsinthe
industry.

12. MASTER PLAN
4.ItisbasedonaSWOTanalysis,i.e.,corporatestrategydefinesthebusinessportfolio(scopeofthe
business).Thatis,onthebasisoftheSWOTanalysis,existingbusiness(es)maybedroppedor
furtherstrengthenedornewonesmaybeadded.
5.Corporateplan,beingamasterplan,islikelytobecomplexinnature.Thecomplexitytendsto
increasewiththeincreaseinthesizeanddiversityofthebusiness.
6.Acorporateplannormallyischaracterisedbytheneedforlargeresourcecommitments-investing
todayfortomorrow.Further,strategiespertainingtothedifferentbusinessesmaycallforresource
reallocation.Thus,strategicmanagementisoftencharacterisedbyresourcemobilisationand
reallocation.
7.Thevision/mission,philosophyandvaluesoftheorganisationhaveimportantbearingonthe
strategy.Theymayinfluencehowthebusinessshallbeconductedorfosteredorthescopeofthe
business(i.e.,thetypeofbusinesstheorganisationcanbeorshallnotbein.)