Strategic management Essay Example for Free

strategical instruction Essay entering Preparing an utile upshot tabooline In close strategic management stemmas, depicted objects be mapd extensively as a teaching tool. 1 A key undercoat is that episodes provide active influenceers with opport unities to subprogram the strategic management adjoin to identify and solve organisational businesss. Thus, by analysing lines that be described in good examples and presenting the results, active learners (that is, students) beat skilled at goodly using the tools, techniques and concepts that combine to sort the strategic management process.The theatrical roles that follow argon concerned with actual companies. Presented in spite of appearance the depicted objects are problems and blots that managers and those with whom they compute moldiness analyse and resolve. As you allow see, a strategic management national can focus on an entire industry, a single organisation or a business unit of a large, diversif y firm. The strategic management issues facing not-for-profit organisations also can be examined using the character analytic thinking regularity.Basically, the instance psychoanalysis method calls for a careful diagnosing of an organizations current conditions (as manifested by its away and internal environments) so that attach strategic saves can be recommended in light of the firms strategic flavour and strategic mission. Strategic actions are taken to heighten and indeed use a firms core competencies to give and implement different strategies, including business-level, corporatelevel, acquisition and restructuring, international and cooperative strategies.Thus, arrogate strategic actions help the firm to survive in the long run as it creates and uses competitive advantages as the foundation for achieving strategic competitiveness and earning above-average returns. The case method that we are recommending to you has a rich heritage as a pedagogical approach to the muse and understanding of managerial effectiveness. 2 As an active learner, your cooking is critical to successful use of the case analysis method.With appear careful study and analysis, active learners lack the insights essential to participate fully in the news of a firms situation and the strategic actions that are trance. Instructors submit different approaches in their application of the case analysis method. most require active learners/students to use a specific analytical procedure to examine an organisation others provide less structure, expecting students to learn by developing their testify anomalous analytical method.Still other teachers believe that a moderately incorporate framework should be used to analyse a firms situation and make appropriate recommendations. Your lecturer or tutor will determine the specific approach you take. The approach we are presenting to you is a moderately structured framework. We divide our discussion of a moderately structured ca se analysis method framework into four departments. First, we describe the importance of understanding the skills active learners can acquire finished effective use of the case analysis method.In the second section, we provide you with a process-oriented framework. This framework can be of value in your efforts to analyse cases and then present the results of your work. Using this framework in a schoolroom setting yields valuable generates that can, in turn, help you to successfully complete assignments that you will receive from your employer. The third section is where we describe briefly what you can expect to occur during in- course of study case discussions.As this description shows, the relationship and interactions amongst instructors and active learners/students during case discussions are different than they are during lectures. In the final section, we Introduction Preparing an effective case analysis present a moderately structured framework that we believe can help you to misrepresent effective oral and written presentations. Written and oral communication skills also are valued advancedly in many organisational settings hence, their festering today can serve you well in the future. Skills gained through use of the case analysis method.The case analysis method is ground on a philosophy that combines fellowship acquisition with strong date from students as active learners. In the words of Alfred North Whitehead, this philosophy rejects the ism that students had commencement ceremony learned passively, and then, having learned should apply experience. 3 In contrast to this philosophy, the case analysis method is based on principles that were elaborated upon by John Dewey Only by wrestling with the conditions of this problem at hand, seeking and finding his own way come out of the closet, does the student think If he cannot devise his own consequence (not, of course, in isolation, but in correspondence with the teacher and other pupil s) and find his own way out he will not learn, not in time if he can recite nighwhat reconcile answer with a hundred percent accuracy. 4 The case analysis method involves reality into the classroom. When create and presented effectively, with rich and interesting stop, cases keep conceptual discussions grounded in reality. Experience shows that simple fictional accounts of situations and collections of actual organisational selective development and articles from usual sources are not as effective for learning as fully developed cases.A comprehensive case presents you with a partial clinical study of a real-life situation that faced managers as well as other stakeholders, including employees. A case presented in narrative form provides motivation for involvement with and analysis of a specific situation. By framing alternative strategic actions and by confronting the complexity and ambiguity of the practical world, case analysis provides extraordinary power for your involv ement with a personal learning experience. Some of the potential consequences of using the case method are summarised in face 1.As Exhibit 1 suggests, the case analysis method can assist active learners in the development of their analytical and judiciousness skills. field of study analysis also helps you learn how to ask the right questions. By this we mean questions that focus on the core strategic issues that are included in a case. Active learners/students with managerial aspirations can alter their ability to identify underlying problems rather than focusing on superficial symbols as they develop skills at asking probing yet appropriate questions.The collection of cases your instructor chooses to assign can expose you to a wide variety of organisations and closing situations. This approach vicariously broadens your experience base and provides insights into many types of managerial situations, tasks and responsibilities. much(prenominal) indirect experience can help you to make a more(prenominal) informed career decision rough the industry and managerial situation you believe will prove to be challenging and satisfying. Finally, experience in analysing cases definitely enhances your problemsolving skills, and re research indicates that the case method for this class is better than the lecture method.5 Furthermore, when your instructor requires oral and written presentations, your communication skills will be honed through use of the case method. Of course, these added skills depend on your dressing as C-4 Exhibit 1 Consequences of student involvement with the case method 1 fibre analysis requires students to practise all-important(a) managerial skillsdiagnosing, making decisions, observing, listening and persuadingwhile preparing for a case discussion. 2 Cases require students to relate analysis and action, to develop realistic and concrete actions despite the complexity and partial experience characterising the situation being studied.3 Stu dents must confront the intractability of realitycomplete with absence of necessitate teaching, an imbalance between needs and available resources, and conflicts among competing objectives. 4 Students develop a general managerial psyche of viewwhere responsibility is sensitive to action in a diverse environmental context. Source C. C. Lundberg and C. Enz, 1993, A framework for student case preparation, Case Research Journal, 13 (Summer), p. 134. Introduction Preparing an effective case analysis well as your instructors facilitation of learning.However, the primary responsibility for learning is yours. The step of case discussion is generally ac realizeledged to require, at a minimum, a thorough mastery of case facts and somewhat independent analysis of them. The case method therefore first requires that you read and think carefully some each case. Additional comments about the preparation you should complete to successfully discuss a case depend in the next section. Student p reparation for case discussion If you are inexperienced with the case method, you whitethorn need to alter your study habits.A lecture-oriented course may not require you to do intensive preparation for each class period. In such(prenominal) a course, you have the latitude to work through assigned readings and review lecture notes according to your own schedule. However, an assigned case requires significant and conscientious preparation before class. Without it, you will be unable to contribute meaningfully to in-class discussion. Therefore, careful reading and thinking about case facts, as well as reasoned analyses and the development of alternative solutions to case problems, are essential.Recommended alternatives should run reproduciblely from core problems identified through study of the case. Exhibit 2 shows a set of locomote that can help you to familiarise yourself with a case, identify problems and propose strategic actions that increase the probability that a firm will achieve strategic competitiveness and earn above-average returns. C-5 Exhibit 2 An effective case analysis process grade 1 Gaining familiarity a. In general determine who, what, how, where and when (the critical facts of the case). b. In detail identify the places, persons, activities and contexts of the situation.c. Step 2 Recognising symptoms Recognise the degree of certainty/uncertainty of acquired information. a. List all indicators (including verbalize problems) that something is not as expected or as desired. b. Ensure that symptoms are not assumed to be the problem (symptoms should lead to identification of the problem). Step 3 Identifying goals a. Identify critical statements by major parties (e. g. people, groups, the work unit, etc. ). b. List all goals of the major parties that exist or can be reasonably inferred. Step 4 Conducting the analysis a. Decide which ideas, models and theories seem useful.b. Apply these conceptual tools to the situation. c. Step 5 Making t he diagnosis As new information is revealed, cycle back to sub-steps (a) and (b). a. Identify predicaments (goal inconsistencies). b. Identify c. Step 6 Doing the action planning c. problems (discrepancies between goals and performance). Prioritise predicaments/problems regarding timing, importance, etc. a. Specify and prioritise the criteria used to choose action alternatives. b. expose or invent feasible action alternatives. Examine the probable consequences of action alternatives. d. Select a course of action.e. Design an implementation plan/schedule. f. Create a plan for assessing the action to be implemented. Source C. C. Lundberg and C. Enz, 1993, A framework for student case preparation, Case Research Journal, 13 (Summer), p. 144. Introduction Preparing an effective case analysis Gaining familiarity Identifying goals The third step of effective case analysis calls for you to identify the goals of the major organisations, business units and/or individuals in a case. As approp riate, you should also identify each firms strategic intent and strategic mission.Typically, these direction-setting statements (goals, strategic intents and strategic missions) are derived from comments made by central characters in the organisation, business unit or top management team as described in the case and/or from public documents (for example, an annual report). Completing this step successfully can sometimes be difficult. Nonetheless, the outcomes you attain from this step are essential to an effective case analysis because identifying goals, intent and mission helps you to clarify the major problems featured in a case and to evaluate alternative solutions to those problems.Directionsetting statements are not always stated publicly or prepared in written format. When this occurs, you must infer goals from other available factual data and information. C-6 The first step of an effective case analysis process calls for you to become familiar with the facts featured in the c ase and the focal firms situation. Initially, you should become familiar with the focal firms general situation (for example, who, what, how, where and when). Thorough familiarisation demands appreciation of the nuances, as well as the major issues, in the case.Gaining familiarity with a situation requires you to study several situational levels, including interactions between and among individuals within groups, business units, the corporate office, the local community and the society at large. Recognising relationships within and among levels facilitates a more thorough understanding of the specific case situation. It is also important that you evaluate information on a continuum of certainty. Information that is verifiable by several sources and judged along similar dimensions can be classified as a fact.Information representing someones perceptual judgement of a contingent situation is referred to as an inference. Information gleaned from a situation that is not verifiable is c lassified as speculation. Finally, information that is independent of verifiable sources and arises through individual or group discussion is an assumption. Obviously, case analysts and organisational decision makers pick out having access to facts over inferences, speculations and assumptions.Personal feelings, judgements and opinions evolve when youare analysing a case. It is important to be aware of your own feelings about the case and to evaluate the accuracy of perceived facts to ensure that the objectivity of your work is maximised. Conducting the analysis The quaternate step of effective case analysis is concerned with acquiring a systematic understanding of a situation. Occasionally cases are analysed in a less-thanthorough manner. Such analyses may be a intersection point of a busy schedule or of the difficulty and complexity of the issues described in a particular case.sometimes you will face pressures on your limited amounts of time and may believe that you can underst and the situation described in a case without systematic analysis of all the facts. However, experience shows that familiarity with a cases facts is a necessary, but insufficient, step in the development of effective solutions solutions that can enhance a firms strategic competitiveness. In fact, a lessthan-thorough analysis typically results in an emphasis on symptoms, rather than on problems and their causes. To analyse a case effectively, you should be sceptical of quick or flourishing approaches and answers.A systematic analysis helps you to understand a situation and determine what can work and in all probability what will not work. Key linkages and underlying causal networks based on the history of the firm become apparent. In this way, you can separate causal networks from symptoms. Also, because the quality of a case analysis depends on applying appropriate tools, it is important that you use the ideas, models and theories that seem to be useful for evaluating and solving individual and unique situations. As you knock over facts and symptoms, a useful Recognising symptoms.Recognition of symptoms is the second step of an effective case analysis process. A symptom is an indication that something is not as you or someone else thinks it should be. You may be tempted to correct the symptoms instead of clear-cut for true problems. True problems are the conditions or situations requiring solution before the performance of an organisation, business unit or individual can improve. Identifying and listing symptoms early in the case analysis process tends to reduce the lure to label symptoms as problems.The focus of your analysis should be on the actualcauses of a problem, rather than on its symptoms. Thus, it is important to remember that symptoms are indicators of problems subsequent work facilitates discovery of critical causes of problems that your case recommendations must address. Introduction Preparing an effective case analysis theory may become app arent. Of course, having familiarity with conceptual models may be important in the effective analysis of a situation. Successful students and successful organisational strategists add to their intellectual tool kits on a continual basis.What to expect from in-class case discussions Classroom discussions of cases differ significantly from lectures. The case method calls for instructors to get hold of the discussion, sanction student participation and solicit alternative views. When alternative views are not forthcoming, instructors typically adopt one view so that students can be challenged to respond to it thoughtfully. Often students work is evaluated in ground of both the measurement and the quality of their contributions to in-class case discussions.Students benefit by having their views judged against those of their peers and by responding to challenges by other class members and/or the instructor. During case discussions, instructors listen, question and probe to extend th e analysis of case issues. In the course of these actions, peers or the instructor may challenge an individuals views and the validity of alternative perspectives that have been expressed. These challenges are offered in a constructive manner their intent is to help students develop their analytical and communication skills.Instructors should encourage students to be innovative and original in the development and presentation of their ideas. Over the course of an individual discussion, students can develop a more complex view of the case, benefiting from the diverse inputs of their peers and instructor. Among other benefits, experience with multiple-case discussions should help students to increase their knowledge of the advantages and disadvantages of group decision-making processes. Student peers as well as the instructor value comments that contribute to the discussion.To offer applicable contributions, you areencouraged to use independent thought and, through discussions with y our peers outside of class, to refine your thinking. We also encourage you to avoid using I think, I believe and I feel to discuss your inputs to a case analysis process. Instead, consider using a less emotion-laden phrase, such as My analysis shows. This highlights the logical nature of the approach you have taken to complete the six steps of an effective case analysis process. When preparing for an in-class case discussion, you should plan to use the case data to apologise your assessment of the situation.Assume that your peers and instructor know the case facts. In addition, it is good practice to prepare notes before class discussions and use them as you explain your view. Effective notes signal to classmates and the instructor that you are prepared to engage in a thorough discussion of a case. Moreover, C-7 Making the diagnosis The fifth step of effective case analysis diagnosis is the process of identifying and clarifying the roots of the problems by comparing goals with fa cts. In this step, it is useful to search for predicaments. Predicaments are situations in which goals do not fit with known facts.When you evaluate the actual performance of an organisation, business unit or individual, you may identify over- or underachievement (relative to established goals). Of course, single-problem situations are rare. Accordingly, you should recognise that the case situations you study probably will be complex in nature. Effective diagnosis requires you to determine the problems affecting longer-term performance and those requiring immediate handling. Understanding these issues will aid your efforts to prioritise problems and predicaments, given available resources and existing constraints.Doing the action planning The final step of an effective case analysis process is called action planning. Action planning is the process of identifying appropriate alternative actions. In the action planning step, you select the criteria you will use to evaluate the identif ied alternatives. You may derive these criteria from the analyses typically, they are related to key strategic situations facing the focal organisation. Furthermore, it is important that you prioritise these criteria to ensure a wise and effective evaluation of alternative courses of action.Typically, managers satisfice when selecting courses of action that is, they find acceptable courses of action that meet most of the chosen evaluation criteria. A rule of thumb that has proved valuable to strategic decision makers is to select an alternative that leaves other plausible alternatives available if the one selected fails. Once you have selected the best alternative, you must doom an implementation plan. Developing an implementation plan serves as a reality check on the feasibleness of your alternatives.Thus, it is important that you give thoughtful consideration to all issues associated with the implementation of the selected alternatives. Introduction Preparing an effective case a nalysis Exhibit 3 Types of thinking in case preparation Analysis and synthesis C-8 125 000 Sources Income figures are approximate and based on A. Chatterjee, 1998, Marketing to the superrich, Business Today (Living Media India Ltd), 22 April W. Berryman and J. McManus, 1998, India Turning the elephant economy, individual Business Weekly, 24 June.offered spicier sauces, such as McMasala and McImli (made from tamarind). Other elements of the circuit card, such as chicken nuggets, fillet lean sandwiches, fries, sodas and take outshakes, were in common with the rest of the McDonalds system. In 1998, McDonalds India set up a transportation development team to collect consumer feedback. Subsequently, the team came up with its menu vision, and new products since then have been based on this vision. The adaptation of the schema went well beyond the menu, encompassing many aspects of the restaurant management system. cardinal different menu boards were displayed ineach restaurant gre en for vegetarian products and purple for non-vegetarian products. Behind the counter, restaurant kitchens had separate, utilize preparation areas for the meat and non-meat products. The kitchen crew (in charge of cooking) had different uniforms to distinguish their roles and did not work at the vegetarian and non-vegetarian send on the same day, thus ensuring clear segregation. The wrapping of vegetarian and non-vegetarian food took place separately. These extra steps were taken to assure Indian customers of the unharmedsomeness of both products and their preparation.To convince Indian customers that the companionship would not serve beef and would adore the culinary habits of its clientele, McDonalds printed brochures explaining all these steps and took customers on kitchen tours. McDonalds positioned itself as a family restaurant. The average bell of a Combo meal, which included burger, fries and Coke, varied from Rs 76 for a vegetarian meal to Rs 88 for a Maharaja Mac meal . This could be compared with KFC meal expenses at Rs 59 (Crispy Burger, regular fries and large Pepsi) and Rs 79 (KFC Chicken, Colonel Burger and regular Pepsi).McDonalds Happy repast, which included a complimentary toy, was priced at Rs 46. The prices in India were lower than in Sri Lanka or Pakistan, and even the price of the Maharaja Mac was 50 per cent less than an equivalent product in the United States. To fight its premium image among the public, the company undertook selective price cutting and ran some periodic promotions. In February 1999, the company was oblation economeals for as low as Rs 29. The company reduced the price of vegetable nuggets from Rs 29 to Rs 19 and that of its soft-serve ice-cream cone from Rs 16 to Rs 7.Apparently, this still afforded McDonalds a healthy strand (40 per cent for cones). As Vikram Bakshi, explained, I will never become unaffordable, as I will not then be able to build up volumes. The lower price could be attributed to two factors t he set strategies of MNC rivals as well as mid-range local restaurants, and the development of a local (low-cost) supply chain. McDonalds price strategies, as well as exceptional promotions, were influenced by rivals. In February 1999, several competitors were running special promotions, with KFC offering a meal inclusive of chicken, rice and gravy for Rs 39.For Rs 350, Pizza Hut was offering a whole family meal, including two medium pizzas, bread and Pepsi. Wimpys was offering Case 8 McDonalds enlargement strategies in India mega meals at Rs 35. A typical vegetarian set meal, or thali (which included Indian breads, rice, vegetables and yogurt) at a mid-range restaurant cost around Rs 50, which was considerably lower than a McDonalds meal. Some analysts believed that that by introducing loss leaders (for example, cones), McDonalds wanted to highlight good value for all its products. Whether customers attracted by special promotions pay repeat visits to McDonalds remains to be see n.In October 2000, the company introduced two new Indianised products to its menu the Chicken McGrill and the Veg Pizza McPuff. At that point in time, 75 per cent of the menu in India was unique that is, different from the rest of the McDonalds system. The Chicken McGrill had a grilled chicken patty topped with onions and expunge sauce, to give it an Indian flavour. The Veg Pizza was a takeoff on the popular Indian samosa (potato-based curry puff) with differences in shape (rectangular) and stuffing (capsicum, onions and Mozarella cheese with tomato sauce).In keeping with the low pricing strategy in India, these items were priced at Rs 25 and Rs 16, respectively. With its value pricing and localised menu, McDonalds had attracted some loyal customers. One such customer said, A normal kebab, with all the trimmings, at a regular restaurant would cost more than Rs 25 and if the new McGrill is giving us a similar satisfaction with its mint chutney (sauce), then wed rather eat in a liv ely McDonalds outlet than sitting in a cramped car on the road. Some elements of the promotional strategy remained the same as in other parts of the world.One instance of this included the emphasis on attracting children. A Happy Meal film was consistently shown on the Cartoon Network and the Zee (a local channel) Disney Hour. McDonalds also teamed up with Delhi Traffic Police and the Delhi Fire Service to highlight safety issues, again trying to create gracility among schoolchildren. In October 1999, in conjunction with The Walt Disney Company and UNESCO, McDonalds launched a search for Millennium Dreamers. The program would bring together 2 000 young people from around the globe who had made a positive and significant impact on their communities.Based on the number of its outlets, India was allocated two representatives. By June 2000, the company had started rolling out its first national campaign, as it was expanding beyond Mumbai and New Delhi. The campaign, budgeted at Rs 100 million, was expected to highlight (in phased order) the stigma (the experience that there is something special about McDonalds), food quality and variety. The company also ran special promotions during festivals, and vegetarian days, and was even developing garlicfree sauces to bring in hard-core vegetarian traffic.In terms of the selection of cities, McDonalds followed the same strategy in India as in the rest of the world. Its initial focus on Mumbai and Delhi was driven by the succeeding(a) factors they were the two largest cities in India their citizens enjoyed relatively high income levels compared to the rest of the country and they were exposed to unusual food and culture. afterward establishing a presence in the leading cities, McDonalds then moved to smaller satellite towns climb the metropolitan cities (for example, from Delhi to Gurgaon and Noida, both suburbs of Delhi, and from Mumbai to Pune).McDonalds often found that there were positive spillover effects, in ter ms of its reputation, from the metropolitan cities to the satellite towns. In Jaipur, the company was hoping to attract foreign tourists. C-125 Developing the supply chain McDonalds search for Indian suppliers started as early as 1991. Its initial challenge was to develop local suppliers who could deliver quality raw materials, regularly and on schedule. In the five-and-a-half years until start-up, McDonalds spent as much as Rs 500 million (US$12. 8 million) to set up a supply network, distribution centres and logistics support.By mid-2000, some estimates placed the total investment in the supply chain at almost Rs 3 billion. topical anesthetic suppliers, Exhibit 6 McDonalds supply chain in India Phillaur (sauces) Dehradun (lettuce) Nainital (lettuce) Taloja (veg. nuggets) Thane Pune (lettuce) Ooty (lettuce) Baramati (cheese) Hyderabad (mutton patties) Venkatapur (pickles) Cochin Supplier locations Distribution centres Case 8 McDonalds expansion strategies in India distributors an d joint venture partners and employees had to match the restaurant chains quality and hygiene standards before they became part of its system.McDonalds experience in identifying and cultivating the supplier of lettuce provided an excellent illustration of the difficulties involved. In 1991, hardly any iceberg lettuce was grown in India, except for a small quantity grown around Delhi during the winter months. McDonalds identified a lettuce supplier (Mangesh Kumar from Ootacamund in Tamilnadu, a southerly state) and helped him in a broad range of activities, from seed selection to advice on farming practices. In the case of several other suppliers, such as Cremica Industries which supplied the sesame seed buns, McDonalds helped them to gain access to foreign technology.In another instance, it encouraged Dynamix, the supplier of cheese, to establish a program for milk procurement by investing in bulk milk collection and chilling centres. This, in turn, led to higher milk yields and ove rall collections, as well as to an improvement in milk quality. McDonalds ended up with a geographically diverse sourcing network, with buns coming from northern India, chicken and cheese from western India, and lettuce and pickles from gray India. There were as many as 40 suppliers in the companys supply chain. (See Exhibit 6 for McDonalds supply chain.) A dedicated distribution system was established to match the suppliers doing and delivery schedules with the restaurants needs. The first two centralised distribution centres were set up go about Mumbai and at Cochin (in the southernmost part of India) in joint ventures with two local retailers, both of whom had to learn from international distributors of McDonalds products how the restaurant chain handled distribution worldwide and, especially, how to enhance the quality of storage operations. The company estimated that each distribution centre could service about 25 outlets.McDonalds strove to keep the storage volumes of produ cts high in order to exploit all possible economies of scale. The distribution centres were also expected to maintain scroll records and to interact with suppliers and the logistics firm to ensure that their freezers were well stocked. Said Amit Jatia, The most important part of our operations was the development of a cold chain the process of procurement, warehousing, transportation and retailing of food products under controlled temperatures. There is a great deal no need for a knife in any restaurant.All the chopping and food processing is do in the plants. Only the actual cooking takes place in the restaurants. Even with the suppliers and distribution system in place, McDonalds needed a distribution link to move raw materials to its restaurants. Logistics management was contracted out to AFL Logistics itself a 5050 joint venture between Air Freight (a Mumbai-based firm) and FX Coughlin of the United States, McDonalds international logistics provider. AFL logistics was respo nsible for the temperature-controlled movement of all products (by rail, road or air, as appropriate) from individ.