VOLUME 24
THE STRATEGY WALL Aatmanirbhar Bharat: A Different Approach
THE STRATEGY AND CONSULTING CLUB OF IIM ROHTAK
“Without strategy, execution is aimless. Without execution, strategy is useless.” Morris Chang
Content 01
Aatmanirbhar Bharat: A Different Approach
04
TATA’s Air India: Need for Strategic reorientation
06
Inside Starbucks–“The BCG way” with a Digital Twist
AATMANIRBHAR BHARAT: A DIFFERENT APPROACH INTERNATIONAL MANAGEMENT INSTITUTE KOLKATA
By ‘Aatmanirbhar Bharat’ we can understand that our
Yes, it can be implemented. India is the 2nd largest country
motherland should be self-dependent or self-reliant. But, is it
in the world with respect to her population mass and it can
possible to be totally self-dependent only in the current
be her biggest asset as well as strength if proper guidance is
global scenario… So, are we actually signifying the same
given without making ‘cheap’ man-made discriminations
which is commonly referred? Or does it signify to keep on
and corruptions. Being Citizen of India, the respective
rivalry with the neighboring countries along with the ‘Buffer
authorities along with the mass people of India must
States’?
understand and imbibe honestly that the nation cannot grow with so much of corruptions and scams in almost
There lies the big question!
each and every sector since a long period of time.
As per the burning topic something like an old book in a new
The pinnacle can achieved very systematically as India is
cover we have found that our Hon’ble Prime Minister Mr.
one of such nation who has produced ‘n-number’ of
Narendra Modi had stated the ‘popular’ phrase to rejuvenate
eminent entrepreneurs and philanthropists such as Mr.
the people of India, whose main objective is to reduce
Dhirubai Ambani, Mr. J.R.D. Tata, Mr. S.S. Narayan Birla
unemployment as much as possible despite the prevalent
naming a few and in our recent times, Mr. Ritesh Agarwal,
pandemic scenario. With the Campaign’s Five Pillars, i.e.
Mr. Indrajeet Singh, Ms. Deepanjali Dalmia and the list
Economy, Infrastructure, System, Demography & Demand, if
continues. One very specific thing all of the budding
the phrase ‘Aatmanirbhar Bharat Abhiyan’ or its true essence
entrepreneurs required immensely is the support of the
can be put into reality, then undoubtedly, our Bharat may go
respective state as well as central government to expand
to the top. But how?
their horizons and visions to do those jobs that are not yet done, with a completely innovative and holistic approach
s, it can be implemented. India is the 2nd largest country in
which the common people usually ignores.
the world with respect to her population mass and it can be her biggest asset as well as strength if proper guidance is
Let us now take a very practical scenario.
given without making ‘cheap’ man-made discriminations and corruptions.
It is about the ‘Hindi Film Music’ which is very often stated as “The Imitator’s Den” since a long time.
PAGE 1
But this negative stereotype can be changed as the
Some of the major stories/activities of ‘Aatmanirbhar
Indian Classical Music as well as our enriched Folk songs
Bharat Abhiyan’ are as follows:-
of different states are globally recognized which bears
§ Empowering women farmers by DIY products made
the rich Indian culture, can be implemented in the
from domestic waste
modern songs with of course a bit of innovations without
§ Saka Shailaja: A Woman Entrepreneur
doing the more and more monotonous “Remixes or Re-
§ Teracotta Artisans of Asharikandi: Keeping The Ancient
editions”.
Craft Of Harappan Civilisation
Eventually,
that
can
give
rise
to
more
employment opportunities in the music industry to be
§ Bikramjit Baulia: Assam Folk Singer Lifting The Spirits of
very specific. But, the top-notch Indian music labels
COVID Patients
always try to remake the old popular songs which already
§ Father Daughter Duo from Patna have designed a
did a good business globally for the albums when they
Medi-Robot
were actually composed. Rather they prefer not to make
§ A computer in the hands of every student in India
brand new original tracks mostly with a view that if they
§ Areca Leaf Plates making Training given for rural
do so, the song(s) may not be as popular as the old hits
women groups in Tamil Nadu
being a bit ‘Marketing-focused’ where another recent
§ 'Mini School' Free Education 24/7 for Special Students.
trend for the same is the YouTube views (in Billions or
§ Spread awareness of Election through a mobile game
Millions). Unfortunately, there we can find that ‘quantity
based on Elections
matters over quality’ where a lot of fresh and talented
§ Plantation Drive under Clean Village- Green Village
artists feel the pain of depression and could not get
Abhiyan
necessary opportunities to come into the limelight showcasing their talents where at the end of the day Fine
On the other hand, another point should be taken into
Arts gets deprived off.
consideration is that ‘Aatmanirbhar Bharat Abhiyan’ can be more easily implemented if the so called ‘Celebrities’
To be more to the point, Film & Entertainment industry
of different fields endorse and promote it for their
creates an assortment of multifarious sectors which is
motherland.
perhaps the biggest area to promote the goods and services of a nation.
Lastly, the Government along with the NGOs and CSR
On the other hand, “Make In India”, “Skill India”, “Vocal For
initiatives of n-number of reputed corporate houses
Local”
scientifically
should take more and more initiatives to literate
implemented with pace to cope up with the current
especially BPL cardholders in addition to the major rural
economic scenario where Recession is officially declared
population who are yet to receive the light of education
in the nation.
and cuddle them more as the ever-lasting concept of
etc.
campaigns
need
to
more
“Survival of the Fittest” is still persistent in the society. Then only our said motto can be fruitful in its actual sense. On the other hand, it can be opined that a multi-step process can also be constructed if we go by the Bottomup Approach starting with the ‘Individual Level’ and finally ending up in the Country Level for the campaign’s success.
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We, the Citizen of India, thereby need to keep our patience with full of optimism hoping for the best reminiscing the famous words of Rabindranath Tagore“If you cry because the sun has gone out of your life, Your tears will prevent you from seeing the stars.”
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TATA’S AIR INDIA: NEED FOR STRATEGIC REORIENTATION XAVIER SCHOOL OF MANAGEMENT (XLRI), DELHI
Everyone in the aviation industry – workers, followers,
Now, neither your company nor you must own a jet to
and enthusiasts and the people of India have huge
have a chartered flight, there are companies such as
expectations for Tata Sons to bring the airline back to its
NetJets. The First-class seats are slowing disappearing
glory. Is privatization the panacea? Contrary to popular
from the layout. The business class tickets are more
opinion, it was not the nationalization of the flag carrier
comfortable than the twentieth century first class
that brought the flag carrier to the undesirable position.
tickets. Moreover, modern aircrafts now can make
It was the operations model and strategic orientation
ultra-long-haul flights – few months from now, you
that thse company strives to maintain that does the
don’t have to layover for a flight from Australia to
magic for the successful airline companies.
Europe and vice versa. Things both internal and
Unsung past glory
external are different from when JRD left Air India.
Air India was first operated as TATA airlines from the
Strategic reorientation
1930s, later renamed and nationalized during 1953.
Air India, a full-service airline, shall be compared to
However,
the
other full-service airlines and not with budget carriers.
chairperson of Air India till the late 1970s. The Airline was
The airlines operated out of all major airports in India. It
the
founder
JRD
Tata
remained
one of the most favorable airlines in Asia. The airline was one of the first airline to have the Jumbo-jet Boeing 747 in its fleet. It served number of destinations around the world (most of them now discontinued). It was one of the go to choices for Europeans travelling to Australia and Pacific and vice versa. It was all JRD Tata’s diligence for quality in service and ingenious fleet strategy that made Air India afloat till the early 1980s. Things don’t remain the same These days, we have different types of airline companies. We have budget carriers, full-service airlines, and some airlines such as JetBlue with strategy offering the service of full-service airline and with operations model that resembles a budget carrier.
serves both domestic and international routes from those airports. However, on all international and domestic routes, it has competitors who receive a better review and serve the same route, except for some routes that connect Delhi to destinations in the United States. Air India must augment its service both on aboard and on ground to attract the business class customers as most full-service airlines recover their cost from the business class, premium class and the first class and maximize the profit from the economy class.
The
service
augmentation
doesn’t
happen
overnight as it requires positive reinforcement from the workforce in culture, and competence. The service level is the key driver for rebranding Air India as Maharaja of the East.
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Air India has almost a homogeneous fleet – A320s for short haul, B787 for long and medium haul, B777 for long haul, and B737 for its budget carrier Air India express. The Airline has reasonably modern fleet except for the Boeing 777s, but the interior is not in par with the modern layout of the other full-service carriers. The fleet modernization of the fleet cannot be done with ease as the lead time for delivery of the latest aircrafts now is as long as several years. On the positive note, the major airlines around the globe with large fleet are now stumbled upon the proven efficacy of the smaller aircrafts during the pandemic. With smaller fleet, Air India fleet could be modernized without significant write offs or retirement of older aircrafts. The merger of the Air India with Vistara also has low barriers as both the airlines has similar fleet only with different interior. Finally, the advent of long haul small and medium jets, advances in aerospace industry, absence of strong alternatives such as High-speed railway (at least for a decade) in the domestic markets, high traffic growth in the domestic and international routes from the nation, and people’s love for the TATA are tailwind in the postacquisition period for Air India. With good portfolio and competitive strategy and operational excellence with service and fleet management, Air India could take off as one of the favorite airlines in the East.
PAGE 5
INSIDE STARBUCKS–“THE BCG WAY” WITH A DIGITAL TWIST KESHAV MAHAVIDYALAYA
A
whopping
150%
increase
in
customer
Though it tried gamification, but it was not personalized
engagement for a marketing campaign seems like a
enough to tap each customer.
dream comes true for any firm, as getting a
It had unnecessary reliance on manual operations,
customer's attention in a highly competitive market
which further added burden on its balance sheet
is
because of high operational costs.
an
enormous
challenge.
But
this
story
is
experienced by Starbucks by revamping its strategy.
These two were the big constraints on the chain’s
The mastermind behind this strategy is the Boston
efficiency. To resolve this problem, BCG proposed the
Consulting Group. This article explains how BCG did
“digital personalization” strategy, as explained below.
this unbelievable task and helped Starbucks to become a game changer in an industry.
Implementation of Digital Personalization Strategy in Starbucks
For an organization, every new customer represents a source of revenue. To enhance customer lifetime
Personalized
value and increase engagement rate, many brands
Personalized games based on previous shopping and
are focusing upon hyper- personalization services.
digital interactions, one customer at a time. This is a smart
and
Strategy
profitable
-
way
Starbucks
to
has
engage
created
customers.
According to the research conducted by BCG –
Starbucks' marketing campaign results have tripled,
“Brands that build personalized experiences through
email redemptions have doubled, and customers who
the use of advanced digital technologies and
redeem offers have spent three times more due to
proprietary data have seen their revenue grow two
personalized games. It has led to increased marketing
to three times faster than their non-personalized
effectiveness, allowing Starbucks to reduce its mass-
counterparts."
marketing
expenditures
and
invest
more
in
personalizing marketing for the right customers, thus What was brewing inside Starbucks? Starbucks,
an
American
coffeehouse
incentivizing the right actions. As part of its brand chain,
is
personalization,
it
offers
each
customer
unique
famous not only for its roasted coffee beans but also
experiences, including in-store visits, digital interactions,
for its interactive and personalized marketing
and products offered, if applicable.
campaigns. Prior to achieving this feat, Starbucks used a typical mass marketing strategy.
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Technology and Deployment - BCG has developed
Ways
Martech (existing marketing technology of Starbucks)
architecture,
into a highly scalable technological framework through
infrastructure. And in the implementation phase, what
Persostack (Personalization stack), which is highly
matters the most is the one who implements the
interoperable. This helped in building up highly scaled
strategy - employees! Hence BCG offered agile method
up
and lean start up practices to leverage the hidden
technological
architecture
by
incorporating
of
working
of
be
it
BCG
has
created
technological
employees.
strategic
potential
implemented pilot tests, then it scaled up the
technological implementation at an Organisational
successful technological plans to a next level.
level also helps to empower each employee, which
Data and Analytics - BCG has used Real-time data and
helps in creating personalized products or services for
contextual data to know the trends and insights in the
each customer.
large chunks of data. It has used not only internal data
Through BCG, Starbucks has successfully implemented
but also third-party data. These data sources helped in
the highly personalized strategy for its customers and
optimizing algorithms through machine learning and
gained commendable results with 4 lakhs hyper
prescribed future strategies as per the changing
personalized emails delivered over a week with a 300%
customer needs. Outputs from data and analytics
improvement
infrastructure have changed the Starbucks app by
revenues. These unbelievable numbers have made
displaying personalized offers.
Starbucks a significant change in the industry. This
per
only
or
whole
personalized needs of the customer. Earlier, Starbucks
in
Not
a
customer
this,
net
but
the
incremental
example has easily proved how the consulting group has focused on not only mere strategic aspects of an organization but also technological aspects, especially for implementing strategies after considering the most important stakeholder, i.e., customers into the whole framework.
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THE STRATEGY AND CONSULTING CLUB OF IIM ROHTAK snc@iimrohtak.ac.in ANKIT PALIWAL GARGI GARIMA KUMARI KRITI SETHI MADHU PRIYA MACHADI PARNIKA SHARMA POOJA CHAUDHARY RASTRA KUNWAR MAURYA RUDRAJIT BANERJEE
ABHAY JAIN FATHIMA HEERA F SAPTADWEEPA BANJI SHIPRA AGRAWAL SWAPNIL GUPTA YASH BANSAL FOLLOW US ON: DISCLAIMER: THE VIEWS AND OPINIONS EXPRESSED IN THIS MAGAZINE ARE THOSE OF THE AUTHOR AND DO NOT NECESSARILY REFLECT THE OPINION OF THE STAKE HOLDERS OF IIM ROHTAK