MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA. It is the most renowned corporate portfolio analysis tool. It provides a graphic representation for an organization to examine different businesses in it’s portfolio on the basis of their related market share and industry growth rates. It is a two dimensional analysis on management of SBU’s (Strategic Business Units). In other words, it is a comparative analysis of business potential and the evaluation of environment. According to this matrix, business could be classified as high or low according to their industry growth rate and relative market share. Relative Market Share = SBU Sales this year leading competitors sales this year.Market Growth Rate = Industry sales this year – Industry Sales last year. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII • The analysis requires that both measures be calculated for each SBU. The dimension of business strength, relative market share, will measure comparative advantage indicated by market dominance. The key theory underlying this is existence of an experience curve and that market share is achieved due to overall cost leadership. • BCG matrix has four cells, with the horizontal axis representing relative market share and the vertical axis denoting market growth rate. The mid-point of relative market share is set at 1.0. if all the SBU’s are in same industry, the average growth rate of the industry is used. While, if all the SBU’s are located in different industries, then the mid-point is set at the growth rate for the economy. • Resources are allocated to the business units according to their situation on the grid. The four cells of this matrix have been called as stars, cash cows, question marks and dogs. Each of these cells represents a particular type of business. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII The BCG matrix • (aka B.C.G. analysis, BCG-matrix, Boston Box, Boston Matrix, Boston Consulting Group analysis). • Created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations to- • Analyzing their business units or product lines. • help the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis. • To use the chart, analysts plot a scatter graph to rank the business units (or products) on the basis of their relative market shares and growth rates. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII • As a particular industry matures and its growth slows, all business units become either cash cows or dogs. The natural cycle for most business units is that they start as question marks, then turn into stars. Eventually the market stops growing thus the business unit becomes a cash cow. At the end of the cycle the cash cow turns into a dog. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII • The overall goal of this ranking was to help corporate analysts decide which of their business units to fund, and how much; and which units to sell. Managers were supposed to gain perspective from this analysis that allowed them to plan with confidence to use money generated by the cash cows to fund the stars and, possibly, the question marks. As the BCG stated in 1970: • Only a diversified company with a balanced portfolio can use its strengths to truly capitalize on its growth opportunities. The balanced portfolio has: • stars whose high share and high growth assure the future; • cash cows that supply funds for that future growth; and • question marks to be converted into stars with the added funds. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII • Derivatives can also be used to create a 'product portfolio' analysis of services. So Information System services can be treated accordingly. For each product or service, the 'area' of the circle represents the value of its sales, thus offers a very useful 'map' of the organization's product (or service) strengths and weaknesses, at least in terms of current profitability, as well as the likely cashflows. The need which prompted this idea was, indeed, that of managing cash-flow. It was reasoned that one of the main indicators of cash generation was relative market share, and one which pointed to cash usage was that of market growth rate. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Stars- • Stars represent business units having large market share in a fast growing industry. • They may generate cash but because of fast growing market, stars require huge investments to maintain their lead. • Net cash flow is usually modest. SBU’s located in this cell are attractive as they are located in a robust industry and these business units are highly competitive in the industry. • If successful, a star will become a cash cow when the industry matures. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII • Cash Cows- Cash Cows represents business units having a large market share in a mature, slow growing industry. Cash cows require little investment and generate cash that can be utilized for investment in other business units. These SBU’s are the corporation’s key source of cash, and are specifically the core business. They are the base of an organization. These businesses usually follow stability strategies. When cash cows loose their appeal and move towards deterioration, then a retrenchment policy may be pursued. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Question Marks- • Business units having low relative market share and located in a high growth industry. They require- • huge amount of cash to maintain or gain market share. • attention to determine if the venture can be viable. • Question marks are generally new goods and services which have a good commercial prospective. • There is no specific strategy which can be adopted If--- • the firm thinks it has dominant market share, then it can adopt expansion strategy, else retrenchment strategy can be adopted. • Most businesses start as question marks as the company tries to enter a high growth market in which there is already a market-share. • If ignored, then question marks may become dogs, while if huge investment is made, then they have potential of becoming stars. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Dogs- • Businesses having weak market shares in low-growth markets. • They neither generate cash nor require huge amount of cash. • Due to low market share, these business units face cost disadvantages. • Generally retrenchment strategies are adopted because these firms can gain market share only at the expense of competitor’s/rival firms. • These business firms have weak market share because of high costs, poor quality, ineffective marketing, etc. • Unless a dog has some other strategic aim, it should be liquidated if there is fewer prospects for it to gain market share. • Number of dogs should be avoided and minimized in an organization. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Stars (high growth, high market share) • Stars are using large amounts of cash. Stars are leaders in the business. Therefore they should also generate large amounts of cash. • Stars are frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold your market share in Stars, because the rewards will be Cash Cows if market share is kept. • Cash Cows (low growth, high market share) • Profits and cash generation should be high. Because of the low growth, investments which are needed should be low. • Cash Cows are often the stars of yesterday and they are the foundation of a company. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Dogs (low growth, low market share) • Avoid and minimize the number of Dogs in a company. • Watch out for expensive ‘rescue plans’. • Dogs must deliver cash, otherwise they must be liquidated. • Question Marks (high growth, low market share) • Question Marks have the worst cash characteristics of all, because they have high cash demands and generate low returns, because of their low market share. • If the market share remains unchanged, Question Marks will simply absorb great amounts of cash. • Either invest heavily, or sell off, or invest nothing and generate any cash that you can. Increase market share or deliver cash. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Other uses and benefits of the BCG Matrix • If a company is able to use the experience curve to its advantage, it should be able to manufacture and sell new products at a price that is low enough to get early market share leadership. Once it becomes a star, it is destined to be profitable. • BCG model is helpful for managers to evaluate balance in the firm’s current portfolio of Stars, Cash Cows, Question Marks and Dogs. • BCG method is applicable to large companies that seek volume and experience effects. • The model is simple and easy to understand. • It provides a base for management to decide and prepare for future actions. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Limitations of BCG Matrix The BCG Matrix produces a framework for allocating resources among different business units and makes it possible to compare many business units at a glance. But BCG Matrix is not free from limitations, such as- • BCG matrix classifies businesses as low and high, but generally businesses can be medium also. Thus, the true nature of business may not be reflected. • Market is not clearly defined in this model. • High market share does not always leads to high profits. There are high costs also involved with high market share. • Growth rate and relative market share are not the only indicators of profitability. This model ignores and overlooks other indicators of profitability. • At times, dogs may help other businesses in gaining competitive advantage. They can earn even more than cash cows sometimes. • This four-celled approach is considered as to be too simplistic . Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Other uses and benefits of the BCG Matrix • If a company is able to use the experience curve to its advantage, it should be able to manufacture and sell new products at a price that is low enough to get early market share leadership. Once it becomes a star, it is destined to be profitable. • BCG model is helpful for managers to evaluate balance in the firm’s current portfolio of Stars, Cash Cows, Question Marks and Dogs. • BCG method is applicable to large companies that seek volume and experience effects. • The model is simple and easy to understand. • It provides a base for management to decide and prepare for future actions. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Phases of Strategic Management: • Define the Mission, Purpose, objectives. • Formulate the strategy • Implement the strategy • Evaluate the strategy after implementation for the expected outcome. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII • Elements of strategic management process: • Define the Business • Set the Mission • determine the purpose • Establish the objectives • Perform the Environment Scanning • Obtain Corporate Appraisal • Evolve the alternatives • Exercise the choices • Formulate the strategy • Prepare the strategic plan • Evaluate the strategy. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII • Determinants of Strategy ( Considerations that affects the strategy) • Demand for goods and services • Supply of goods and services • Competition • Key success factors(KSF) • Growth potential and profit prospects • Market strength • Financial capacity of the organization Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII • Attributes of the professional management • Knowledge • Attitude • Skills- • Technical • Human • Conceptual • Analytical • Administrative • Managerial • Etc. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII • Levels of strategic management: • Corporate level: Board of Directors, Chief Executive Officers- looking after the running the company as a whole, deciding about the type of the business the organization is in. • Business level: SBU Strategic Business Unit: e.g. Divisional G.M. generally depends on the number of product mix, profit centers. • Operating level: use to take technical decisions, e.g. marketing, finance, operations, manufacturing, etc. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Areas of Alternatives: • Production strategies • Finance strategies • Marketing strategies • Personnel strategies etc. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Strategic Options: • Strategies of Survival • Stable growth strategy • Growth strategy • End game strategy • Retrenchment strategy • Combination of strategy • Business unit strategies Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII • 1. Strategies for Survival: • Hold or Maintain: ( Suitable whenever there is a Risk of Loss) • Pull Back and Redeploy: Narrow down the supply & Redesign resources • Milk or Harvest: suits for short term gain, Best if the product is on the verge of ‘Obsolescence’, product life cycle ends, Customer confidence declining in the product. • Liquidation and Divestment: Withdraw from the business on failure at every stage to save the business. • 2. Stable Growth Strategy: Low risk, Steady growth, Change in resource allocation. • 3. Growth Strategies: a. Product life cycle: b. Expansion: c. Concentrating on one product: d. Vertical Integration: in two possible directions e. Concentric diversification: Add new product similar to product line f. Horizontal diversification: Buy the Competitor, Take over. g. Conglomerate diversification: Add new product different than product line Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII • 4. End Game Strategy: In situation where product demand declines, modify leadership, diversification in ‘niche’ etc helps rescue the problem • Retrenchment Strategies: In situation like recession, poor financial performance of the organization. • Turn around Strategy: Cut back on personnel, expenses, cost, promotions, overheads etc to increase the efficiency, productivity and performance. • Divestment Strategy: Sell the product line to another business i.e. hand over the entire business or brand to other units. e.g. Dalda, soap, tractor etc. • Liquidation Strategy: In the extreme case – sell out the entire business • Combination of the Strategies: Simultaneous: Two or more strategies at a time Sequential: Time bound implementation of plan one by one • Business Unit Strategies: a. Overall cost leadership i.e. keep the costs lower than competitors. b. Differentiation Strategy: Maintain the Uniqueness in the business line. c. Focus Strategies: Concentrate on particular group of customers. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Mintzberg's 5 Ps for Strategy • The word "strategy" has been used implicitly in different ways even if it has traditionally been defined in only one. Explicit recognition of multiple definitions can help people to manoeuvre through this difficult field. Mintzberg provides five definitions of strategy: • Plan • Ploy • Pattern • Position • Perspective. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Plan • Strategy is a plan - some sort of consciously intended course of action, a guideline (or set of guidelines) to deal with a situation. By this definition strategies have two essential characteristics: they are made in advance of the actions to which they apply, and they are developed consciously and purposefully. Ploy • As plan, a strategy can be a ploy too, really just a specific manoeuvre intended to outwit an opponent or competitor. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Pattern • If strategies can be intended (whether as general plans or specific ploys), they can also be realised. In other words, defining strategy as plan is not sufficient; we also need a definition that encompasses the resulting behaviour: Strategy is a pattern - specifically, a pattern in a stream of actions. Strategy is consistency in behaviour, whether or not intended. The definitions of strategy as plan and pattern can be quite independent of one another: plans may go unrealised, while patterns may appear without preconception. • Plans are intended strategy, whereas patterns are realised strategy; from this we can distinguish deliberate strategies, where intentions that existed previously were realised, and emergent strategies where patterns developed in the absence of intentions, or despite them. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Position • Strategy is a position - specifically a means of locating an organisation in an "environment". By this definition strategy becomes the mediating force, or "match", between organisation and environment, that is, between the internal and the external context. Perspective • Strategy is a perspective - its content consisting not just of a chosen position, but of an ingrained way of perceiving the world. Strategy in this respect is to the organisation what personality is to the individual. What is of key importance is that strategy is a perspective shared by members of an organisation, through their intentions and / or by their actions. In effect, when we talk of strategy in this context, we are entering the realm of the collective mind - individuals united by common thinking and / or behaviour. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII The 7-S Framework • It is a management model which describes 7 factors to organize a company in an holistic and effective way. The model is developed by McKinsey is termed as 7-S Framework. These factors are helpful to determine the way in which a corporation operates. Managers needed to take into account all of the seven factors so as to achieve the successful implementation of a strategy for the organization, large or small. Since all are interdependent, the failure to pay proper attention to one of them may effect all others as well. Origin of the 7-S Framework. History • The 7-S Framework was first mentioned in "The Art Of Japanese Management" by Richard Pascale and Anthony Athos in 1981while investigating about the successful performance of the Japanese industry. At around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of these four authors in 1978. It appeared also in "In Search of Excellence" by Peters and Waterman, and was taken up as a basic tool by the global management consultancy company McKinsey. Since then it is known as their 7-S model. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII 1.Shared Values • The interconnecting center of McKinsey's model is: Shared Values. What does the organization stands for and what it believes in. Central beliefs and attitudes. 2. Strategy • Plans for the allocation of a firms scarce resources, over time, to reach identified goals. Environment, competition, customers. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII 3. Structure • The way in which the organization's units relate to each other: centralized, functional divisions (top-down); decentralized; a matrix, a network, a holding, etc. 4. Systems • The procedures, processes and routines that characterize how the work should be done: financial systems; recruiting, promotion and performance appraisal systems; information systems. 5. Staff • Numbers and types of personnel within the organization. 6. Style • Cultural style of the organization and how key managers behave in achieving the organization's goals. 7. Skills • Distinctive capabilities of personnel or of the organization as a whole. Compare: Core Competences. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII The ADL Matrix from Arthur D. Little is a portfolio management method. • The ADL portfolio management approach uses an industry assessment and a business strength assessment as its dimensions. The industry measurement is an identification of the life cycle of the industry. The business strength measure is a categorization of the corporation's SBU's into one of five (six) competitive positions: dominant, strong, favorable, tenable, weak (and non-viable). This yields a matrix of 5 competitive positions by 4 life cycle stages. Positioning in the matrix identifies a general strategy. • Defining the line of business in the ADL matrix • In the ADL Matrix approach, the strategist must identify discrete businesses by finding commonalities among products and business lines using the following criteria as guidelines:Common rivals • Prices, Customers, Quality/Style, Substitutability, Divestment or liquidation. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Assessing the Industry Life Cycle stage in the ADL Matrix • The assessment of the Industry Life Cycle stage of each company is made on the basis of: • Business market share, • Investment, and • Profitability and cash flow. Assessing the competitive position in the ADL Matrix • The competitive position of a firm is based on an assessment of the following criteria: • Dominant. Rare, often the result from a almost-monopoly or protected leadership. • Strong. A strong company can follow a strategy without too much consideration of moves by rival companies. • Favorable. Industry is fragmented. No clear leader among stronger rivals. • Tenable. The company has a niche, either geographical or defined by the product. • Weak. Business is too small to be profitable or survive over the long term. Critical weaknesses. LIMITATIONS • Some known limitations of the ADL Matrix are: • There is no standard life cycle length. • Determining the current industry life cycle phase is difficult. • Competitors may influence the length of the life cycle. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Strategic Review Evaluation and Control • Levels of review: 1. Strategic 2. operational Basic Steps in the process of review:- • Develop Criteria for evaluation • Measure actual Performance • define Tolerance Limits / Acceptance levels • Analyze deviation from acceptable limits • Get feedback • Analyze and modify the process. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Need of Evaluation to- • Check whether decisions are in tune with the Policy • Check whether sufficient resources are made available • Check whether resources are used wisely • Check whether ‘events’ are as anticipated • Check whether ‘Goals’ are achieved • Check whether to continue with the ‘plan’ Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII What to Evaluate? • Objectives • environment • Internal Conditions • Resource Capitalization • Risk • Time Horizon • Feasibility Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Check while developing the criteria for evaluation— 1. Performance Target and Standards 2. Quantitative criteria ( ROI, Dividend, Turn Over, Mkt Share etc) 3. Qualitative criteria like ‘Consistency’, ’Appropriateness’, ‘Workability’ Systems Approach for Control Action Objectives  Set Standards Measure & Monitor  Analyze deviation  Feedback  Modify  Implement. ( Have Flow Chart Method) Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Control is a continuous and Dynamic Process, there fore have — 1.Budgets 2. Audits 3. Time based Control like PERT,CPM, GERT ( Graphical Evaluation & Review Tech.) PDM ( Precedence Diagramming Method) 4. Strategy Audit on ( Validity, Consistency, Effectiveness) 5. MIS 6. Motivation & Reward system Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Beneficiaries of Strategic Control:- • Shareholders, Creditors, Govt, Board of Direcotors, CEO, Finance, Profit Centers, Middle level management. Problems in Evaluation and Control:- • Difficulty in deciding ‘Limit of Strategic Control’ • Difficulty in measurements of control • Resistance to change and Evaluation Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Types of Strategic Control:- • Premise of Control • Implementation of Control • Strategic Surveillance • Special alert Control Methods / Techniques in Strategic Evaluation & Control:- • Strategic Control: (i) Strategic momentum (ii) Strategic Leap Control • Assumption:- There is no change in the strategy 1. Responsibility Control Centre :- From Core Mgmt Control system ( Revenue, Expenses, Profits, Investments) 2. Underlying Success Factors: ( Key Success Factors like KPI Key Performance Index) 3. Generic Strategies: ( Based on Comparison with other organization strategies) Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Strategic Leap Control: ( Environment is relatively ‘Unstable’ it helps to redefine strategy) • Types of Strategic leap Control: • Strategic issue management • Strategic Field assignment • Modeling • Scenarios Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Evaluation Method for Operational Controls: • Financial Techniques: Budgetary Control , ZERO Based Budgets, Financial Analysis, ‘PARTAVA’ System • Network Technique: PERT CPM • MBO Management By Objectives: Performance of Jr. Sr. Executives • MOU Memorandum of Understanding • Strategic Audit: Validity, Consistency, Effectiveness. Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Some Quotes • “The price of greatness is responsibility.” • “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” • “Continuous effort - not strength or intelligence - is the key to unlocking our potential” • “The farther backward you can look, the farther forward you are likely to see.” • “You have enemies? Good. That means you've stood up for something, sometime in your life.” Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII However beautiful the strategy, you should occasionally look at the results Sir Winston Churchill 1874-1965, English statesman There is always a better strategy than the one you have; you just haven't thought of it yet Sir Brian Pitman, former CEO of Lloyds TSB, Harvard Business Review, April 2003 Unless a variety of opinions are laid before us, we have no opportunity of selection, but are bound of necessity to adopt the particular view which may have been brought forward Herodotus, 5th century BC, Greek historian The processes used to arrive at the total strategy are typically fragmented, evolutionary, and largely intuitive James Quinn in Strategic Change: Logical Incrementalism, 1978 Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII How many senior executives discuss the crucial distinction between competitive strategy at the level of a business and competitive strategy at the level of an entire company? C.K. Prahalad and Gary Hamel, in their article: The core competence of the corporation, 1990 What's the use of running if you are not on the right road German proverb I claim not to have controlled events, but confess plainly that events have controlled me Abraham Lincoln 1809-1865, sixteenth American president Perception is strong and sight weak. In strategy it is important to see distant things as if they were close and to take a distanced view of close things Miyamoto Musashi 1584-1645, legendary Japanese swordsman Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Do not repeat the tactics which have gained you one victory, but let your methods be regulated by the infinite variety of circumstances Sun Tzu c. 490 BC, Chinese military strategist There is always a better strategy than the one you have; you just haven't thought of it yet Sir Brian Pitman, former CEO of Lloyds TSB, Harvard Business Review, April 2003 Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII Unless a variety of opinions are laid before us, we have no opportunity of selection, but are bound of necessity to adopt the particular view which may have been brought forward Herodotus, 5th century BC, Greek historian The processes used to arrive at the total strategy are typically fragmented, evolutionary, and largely intuitive James Quinn in Strategic Change: Logical Incrementalism, 1978 How many senior executives discuss the crucial distinction between competitive strategy at the level of a business and competitive strategy at the level of an entire company? C.K. Prahalad and Gary Hamel, in their article: The core competence of the corporation, 1990 Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII What's the use of running if you are not on the right road German proverb I claim not to have controlled events, but confess plainly that events have controlled me Abraham Lincoln 1809-1865, sixteenth American president Perception is strong and sight weak. In strategy it is important to see distant things as if they were close and to take a distanced view of close things Miyamoto Musashi 1584-1645, legendary Japanese swordsman Do not repeat the tactics which have gained you one victory, but let your methods be regulated by the infinite variety of circumstances Sun Tzu c. 490 BC, Chinese military strategist Dr.N.C.DhandeSRTM University Nanded, nishika.dhan@gmail.com

MBA III SEMESTER : Business policy and strategic management Course No 301 Paper No. XVIII