PREFACE TO SECOND EDITION
With explosions in technology, digitalization, smart manufacturing, and increased globalization, strategic management has become integral to operational dynamics for achieving a competitive edge in any industry and market. In today’s World, it is seen that companies are competing with each other not only on the availability of resources and capabilities but also for innovative ideas and the ability to reach the market to attract customers for sustaining growth! Firms create strategic assets through their strategic intents to emerge as leaders in their business and emerge as the best in class across industries and markets. Some international companies that have created intangible assets have entered the Indian market by creating physical assets. There has been intense competition, and these companies have also raised the bar. Thus, managing the business in India is exciting and rewarding as our stock market is attractive and energized.
Different nomenclatures like Long Range Planning, Business Policy, Corporate Planning, and Strategic Management have evolved over a period of time. It eventually addresses how a firm must position itself on a sustainable growth trajectory in a changing business environment and dynamic interaction of multifacets of business and individuals through customers to build value for different stakeholders over time. While most of a firm’s success in strategy is reflected in its Income and Expenses statement and The Balance Sheet or on the stock market in its valuation, it is important to see all these from the perspective of a product’s life cycle, strategic business unit, and the company itself. This book tries to reflect the Indian managerial scenario through exhibits, case studies, examples, etc., and the Indian ethos with regard to its approach towards globalization.
Strategic Management has gained a lot of importance over the decades as competition is intensifying globally. Today global mergers and acquisitions, entry into new markets and products, and deployment of technology are impacting corporate and business in host countries. Firms that are deploying such strategic moves and other firms that are already in such markets were nurtured carefully to a sizeable position, and they need to combat competitive moves of aggressive players. Hence, whether it is a small, medium, or large company, whether it is a domestic or multinational firm, or whether it is public sector or in the private sector or a closely held firm, competitive positioning is important for long-term sustenance. This book helps management students and practicing managers to understand various concepts, tools, and techniques and relate them to real-life situations.
This book is an attempt to provide readers with a comprehensive approach that covers issues across various spectrums of business and public life in the domain of strategic management. The book provides a new outlook and different situations like planned strategies and emergent strategies and cases for readers to relate. This book aims to provide a treatment of strategic management which is clear, well-structured, and interesting for practicing and aspiring managers in Indian business. Our conviction came through our
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experience in our interactions with business leaders and professionals across industries and the academic community, especially the student community where we have been teaching over the last two decades.
Each chapter starts with a learning objective, and the subject is taken coherently with illustrations and examples. Strategic management is a practical application subject that is driven by a theoretical manner. Most chapters contain theory, applications, and examples, either real life or disguised from industry. The book includes a number of case studies for analytics and discussion in a classroom. The book is targeted for students studying Strategic Management in a Management course or a specialization course in Strategic Management and also for professional courses.
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ACKNOWLEDGEMENT
Many have contributed to the development of this book. We wish to thank all those who have encouraged us and given their valuable input during its preparation.
N. Chandrasekaran would like to thank Prof. Lakshmi Kumar, Dean, IFMR GSB, Prof. G. Balasubramanian, IFMR GSB, and colleagues who have been a constant source of encouragement. Srinivasan H R, Take Solutions Ltd, for his continued support and encouragement in all academic endeavors along with business requirements. He also thanks his teachers, who have helped him evolve as a professional over the years. He would like to put on record his sincere gratitude to Dr. T.V. Subramaniam Rev. Fr. Christie and Prof. G. Raghuram. It has been his privilege and pleasure to have jointly authored a book with Prof. Ananthanarayanan, his mentor and guide.
Prof. P.S. Anathanaraynan and Dr. N. Chandrasekaran would like to thank their friends and colleagues for immensely supporting this effort. They would like to thank Mr. Vishesh Agarwal, a student SIAS, Krea University, who has immensely contributed to the collation of data, information and reports for content development, especially for revising the cases. And Ms. K.S. Anjana, a student Shiv Nadar University, Gautham Buddha Nagar, Uttar Pradesh supported content development. The authors would also like to acknowledge their students at IFMR GSB, Krea University, and other institutes, including the industry professionals they have trained.
They would also like to express their gratitude to Mr. S. Kamban and Mr. K.A. Ganesh, promoters, Aquatherm Engineering Consultants, Mr. Chandramouli Sadasivam, Mr. Ramanan Bathala, Frisco, Texas, USA, Mr. S. Balasubramanian, Industrialist, and Mr. V. Gopalan, Management Consultant for having supported in developing content. They would also like to thank Oxford University Press and Taxmann Publishers colleagues for their support.
Prof. P.S. Ananthanarayan has drawn inspiration from his father, Mr. P. A. Seshan (“Leo” of “the Hindu”), and thanks his spouse Mrs. Banumathy for her untiring cooperation. He also thanks his sons Dr. Ananth Seshan and P.A. Padmanabhan, for their useful interactions in regard to the content of the book.
Dr. N. Chandrasekaran is grateful to his mother Mrs. Annapoorani Nagarajan, his spouse, Prabha and daughter Sangeethaa C for their encouragement.
We would be thankful to all who could come back with their feedback on this book so that forthcoming editions can be more valuable.
Dr.
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N. Chandrasekaran & Prof. P.S. Anathanarayanan
xi CONTENTS Page Preface to Second Edition v Acknowledgement vii Chapter Heads ix CHAPTER 1 INTRODUCTION TO STRATEGIC MANAGEMENT 1 CASE: Growth in the Face of Challenges: Indian Oil Corporation Ltd. 2 1.1 Introduction to Management and Strategy 4 1.2 Strategic Management 5 1.3 Evolution of Strategic Management 6 1.4 Schools of Thought 8 1.5 Relevance of Strategic Management for an Organization 10 1.6 Challenges to Strategic Management 11 1.7 The Strategic Management Process 12 1.7.1 Deliberate and Emergent Strategies 13 1.8 Strategic Management in India 13 Summary 14 Keywords 14 Concept Review Questions 15 Critical Thinking Questions 15 Project Assignments 15 References 15 CASE: Bharti Airtel’s Growth and Holding to a Competitive Position Over the Decades 16 CHAPTER 2 VISION, MISSION, GOALS, AND OBJECTIVES 21 CASE: National Thermal Power Corporation—Globalization Initiatives in Power and Related Products 22 Strategic Management_FM.indd 11 26-Dec-23 5:02:04 AM
xii Page 2.1 Developing a Vision Statement 25 2.1.1 Characteristics of a Good Vision Statement 26 2.1.2 Defining a Shared Vision 27 2.2 Developing a Mission Statement 27 2.3 Developing Core Values 30 2.4 Situational Analysis 31 2.4.1 Situational Analysis through SWOT 31 2.4.2 Situational Analysis Using TOWS Matrix 31 2.5 Defining Organizational Goals and Objectives 32 2.5.1 Advantages in Structuring Objectives 34 2.5.2 Objectives 34 2.6 Conflicting Objectives Resolved 35 2.6.1 Ranking and Comprehensiveness 35 2.6.2 Critical Success Factors 36 Summary 36 Keywords 37 Concept Review Questions 37 Critical Thinking Questions 38 Project Assignments 38 References 38 CASE: Procter & Gamble Hygiene and Health Care Limited 39 CHAPTER 3 ENVIRONMENT AND STRATEGY 43 CASE: EID Parry India Ltd—Management of the Environment 44 3.1 Concept of Organizational Environment, Its Characteristics, and Dimensions 49 3.2 External Environment 50 3.2.1 Environmental Sustainability 50 3.2.2 Climatic Determinism 51 3.2.3 Climate-Related Strategy 53 3.2.4 Impact of Pollution on a Firm’s Strategy 55 3.3 Political Environment 55 3.3.1 Communism 55 3.3.2 Capitalism 56 3.3.3 Democracy 57 3.3.4 Socialism 58 3.3.5 Impact of Political Environmental Factors on Firms’ Strategy 58 3.4 Economic Environment 59 3.4.1 Business Cycles: Meaning and Nature 59 3.4.2 Types of Cycles 59 Strategic Management_FM.indd 12 10-Jan-24 8:07:36 PM
Contents xiii Page 3.4.3 Phases of a Business Cycle 60 3.4.3.1 Recovery 60 3.4.3.2 Prosperity 60 3.4.3.3 Recession 61 3.4.3.4 Depression 61 3.4.4 Impact of Economic Factors on Strategy 62 3.4.5 Economic Downturn in 2008 and the Pandemic Later in 2020 62 3.5 Technological Environment 63 3.5.1 Impact of Technological Factors on Strategy 65 3.6 Sociocultural Environment 65 3.6.1 Impact of Sociocultural Factors on Strategy 66 3.7 List of External Factors 67 3.7.1 Natural Factors 67 3.7.2 Political Factors 67 3.7.3 Economic Factors 67 3.7.4 Technological Factors 68 3.7.5 Sociocultural Factors 68 3.8 Environmental Scanning 68 3.8.1 External Environment Scanning 68 3.8.2 Internal Environment Scanning 70 3.9 Synthesis of External Factors (EFAS) 70 3.10 Synthesis of Internal Factors (IFAS) 72 Summary 73 Keywords 74 Concept Review Questions 75 Critical Thinking Questions 75 Project Assignments 76 References 76 CASE: Ashok Leyland—Successful Management of the Environment During the Period 2020-22 77 CHAPTER 4 STRATEGIC ANALYSIS: MODELS AND TECHNIQUES 85 CASE: ABC Consumer Products Ltd: Need for Tools and Techniques for Investing to Grow 86 4.1 Introduction 88 4.2 Forecasting Models 88 4.3 Strategic Models 90 4.4 Financial Models 91 4.4.1 Break-even Analysis 91 4.4.2 Budget Model 91 Strategic Management_FM.indd 13 10-Jan-24 8:08:41 PM
xiv Page 4.4.3 Pro Forma Financial Projections 91 4.4.4 Ratio Analysis 92 4.5 Econometric Models 92 4.6 Simulation Models 92 4.6.1 Types of Simulation Models 93 4.6.2 Applications and Limitations 93 4.7 Decision Support Models 93 4.7.1 Decision Trees or Multi-Attribute Utility Analysis Models (MAUA) 94 4.7.2 Analytical Hierarchy Process (AHP) 94 4.7.3 Influence Diagrams 94 4.8 Sensitivity Analysis 95 4.9 Porter’s Five Forces Theory 95 4.10 Current Product Portfolio–Outputs 98 4.10.1 The Product Life Cycle 98 4.10.1.1 Introduction phase 99 4.10.1.2 Growth phase 99 4.10.1.3 Maturity phase 99 4.10.1.4 Decline phase 99 4.10.2 Experience Curves 101 4.10.3 Product Portfolio Planning 102 4.10.3.1 The BCG Matrix 103 4.10.3.2 Directional Policy Matrix/Nine-Cell Ge Matrix 105 4.10.3.3 The Product/Market Evolution Matrix (Hofer Matrix) 108 4.10.3.4 Strategic Position and Action Evaluation (SPACE) 108 4.11 Mckinsey’s 7S Framework 110 4.12 Strategic Choice 112 4.12.1 Competitive Strategy and Competitive Advantage 112 4.12.1.1 Porter’s Model of Generic Strategy 112 4.12.1.2 Profit Impact of Market Strategy (PIMS) 115 4.12.1.3 Competitive Warfare 116 4.12.2 Product-Market Strategies 117 4.12.2.1 Ansoff’s Matrix 117 4.12.2.2 Product-Market Planning 119 4.12.3 Institutional Strategies and Methods of Growth 119 4.13 Contemporary Strategic Thinking and Concepts: An Indicative Analysis 120 4.13.1 Blue Ocean and Red Ocean Strategies 120 4.13.2 Regenerating Strategies 121 4.13.3 Confrontation Strategies 122 Strategic Management_FM.indd 14 26-Dec-23 5:02:04 AM
Contents xv Page Summary 123 Keywords 124 Concept Review Questions 125 Critical Thinking Questions 125 Project Assignments 126 References 126 CASE: Sachin’s Dilemma—Call for an Analyst to Help with Tools 127 CHAPTER 5 CORPORATE STRATEGY 131 CASE: Berger Paints in India: Growth through Expansion 132 5.1 Importance of Corporate Strategy 135 5.2 Four Levels of Corporate Strategy 135 5.2.1 Functional-Level Strategy 135 5.2.1.1 Quality 137 5.2.1.2 Efficiency 137 5.2.1.3 Consumer Feedback 141 5.2.1.4 Innovation 143 5.2.2 Business-Level Strategy 146 5.2.3 Global-level Strategy 150 5.2.3.1 International strategy 152 5.2.3.2 Multi-domestic strategy 152 5.2.3.3 Global strategy 152 5.2.3.4 Transnational strategy 153 5.2.4 Corporate-Level Strategy 154 5.2.4.1 Intensive strategies 154 5.2.4.2 Integration strategies 157 5.2.4.3 Diversification strategies 158 5.2.4.4 Defensive strategies 160 5.3 Performance Strategy 161 Summary 163 Keywords 164 Concept Review Questions 166 Critical Thinking Questions 167 Project Assignments 167 References 167 CASE: RBI’s Role in Oriental Bank of Commerce’s Merger with Global Trust Bank 168 Strategic Management_FM.indd 15 26-Dec-23 5:02:04 AM
xvi Page CHAPTER 6 CASE: Tata Starbucks Ltd: A JV 174 6.1 Corporate Parenting 176 6.1.1 The Parenting Matrix 177 6.1.2 Business Units and Corporate Structure 178 6.2 Corporate Restructuring 179 6.2.1 Motives for Restructuring 180 6.3 Business Process Reengineering 184 6.3.1 BPR and Process Improvements 185 6.3.2 BPR and Inter-Disciplinary Linkages 185 6.3.3 Key Characteristics of BPR 186 6.3.4 BPR Methodology 186 6.3.5 Criticisms of BPR 187 6.4 Joint Ventures 189 6.4.1 Motives of the Joint Venture/Strategic Alliances 189 6.4.2 Rationale of Joint Ventures 190 6.4.3 Reasons for Failure of Joint Ventures 190 6.5 Strategic Alliances 191 6.5.1 Forms of Strategic Alliances 191 6.6 Outsourcing 194 6.6.1 Need for Outsourcing 195 6.6.2 Problems in Outsourcing 196 6.6.3 Changing Perspective Towards Outsourcing 197 6.7 Mergers and Acquisitions 197 6.7.1 Mergers 199 6.7.1.1 Purpose of Mergers 199 6.7.1.2 Forms of Merger 200 6.7.2 Acquisition 201 6.7.2.1 Steps in the Acquisition Process 201 6.7.2.2 Takeover 203 6.7.3 Causes for Merger/takeover Failures 207 6.8 Demergers and Divestitures 207 6.9 New Business Models with Technology and Digitalization 209 6.9.1 E-business Models 212 6.9.2 Pure Technology Applications in Business 213 6.9.3 People-led New Business Models 213 6.9.4 Challenges and Learning Process 214 Strategic Management_FM.indd 16 26-Dec-23 5:02:04 AM
Contents xvii Page 6.9.5 Industry 4.0 and Digital Transformation Including Use of AI 214 6.9.5.1 AI and Industry 4.0 215 6.9.5.2 Benefits of AI in Industry 4.0 215 6.9.5.3 Challenges of AI in Industry 4.0 215 Summary 217 Keywords 218 Concept Review Questions 219 Critical Thinking Questions 220 Project Assignments 220 References 221 CASE: The Merger of Sony and Zee: Scope to be a Media Powerhouse 222 CHAPTER 7 CASE: Tata Chemicals – Strategy and Performance in the Early 2020s 226 7.1 Introduction 229 7.2 Steps for Making Strategic Choice 231 7.2.1 Relating Intent to Mission and Vision 231 7.2.2 Generation of Available Options 234 7.2.3 Strategic Assessment 234 7.2.4 Selection of the Strategic Option 235 7.3 Strategy Formulation and Choice 236 7.4 Tools and Techniques 241 7.4.1 SWOT analysis and TOWS matrix 241 7.4.2 Product Life Cycle (PLC) 241 7.4.3 Portfolio, Market, and Product Strategies 241 7.5 Decision Stages 242 7.6 Subjective Factors In Strategic Choice 242 7.6.1 Cultural Aspects 243 7.6.2 Political Characteristics in Strategy Formulation 244 7.6.3 Role of Directors and CEOs 245 7.6.4 Role of the Chief Executive Officer/Managing Director 247 7.7 Challenges Faced by the Organization 249 7.8 Strategy Formulation for Different Businesses 251 Summary 252 Key Words 252 Concept Review Questions 253 Critical Thinking Questions 254 Project Assignments 254 References 254 CASE: Walmart: Technology Adoption Strategy and Growth 255 Strategic Management_FM.indd 17 26-Dec-23 5:02:04 AM
xviii Page CHAPTER 8 CASE: Jio Mart Strategy Implementation 260 8.1 Nature of Strategy Implementation 261 8.2 Models of Strategic Implementation 261 8.3 Procedural Implementation 263 8.3.1 Implementing the Formulated Strategy 263 8.3.2 Structural implementation 266 8.4 Business Process Reengineering 266 8.4.1 Preparation for Reengineering 267 8.4.2 Change Design 267 8.4.3 Evaluating the Change 267 8.5 Business Process Management 268 8.5.1 Future of BPM 273 8.5.1.1 Behavioral implementation 273 8.5.1.2 Functional and operational implementation 274 8.5.1.3 Supporting framework 275 8.6 Benchmarking 277 8.6.1 Process of Benchmarking 277 8.7 Reverse Engineering 283 8.8 Adopting International Certifications 285 8.9 Implementing Kaizen 286 8.9.1 Ten Ground Rules of Kaizen 286 8.10 Strategy Implementation in Projects 287 8.11 Resource Allocation 288 8.12 Feedback Control System 290 Summary 291 Keywords 292 Concept Review Questions 292 Critical Thinking Questions 293 Project Assignments 293 References 293 CASE: Achieving Excellence in Quality: Sundaram Clayton 294 CHAPTER 9 CASE: Big Corporate Scandals Across the Globe 298 9.1 Business Ethics: Fundamental to Value Creation 300 9.2 Ethics of Human Resource Management 302 9.2.1 Typical Unethical Issues that an Organization May Encounter 303 Strategic Management_FM.indd 18 26-Dec-23 5:02:04 AM
Contents xix Page 9.3 Ethics of Finance 304 9.4 Ethics of Sales and Marketing 307 9.5 Ethics of Production 309 9.6 Ethics of Property, Property Rights and Intellectual Property Rights 311 9.7 Ethics in International Business 312 9.8 Corporate Social Responsibility (CSR) 313 9.8.1 Definition of Corporate Social Responsibility 313 9.8.2 CSR Implementation Process and Benefits 318 9.8.3 Challenges to CSR Initiatives in India 320 9.8.4 Lack of Consensus on Implementing CSR Issues 320 9.9 Corporate Governance 321 9.9.1 Business History and Evolution of Corporate Governance 324 9.9.2 Development of Corporate Governance in India 324 9.9.3 Critical Appraisal of Corporate Governance in India 327 9.9.4 Corporate Governance Models Across the World 328 Summary 329 Keywords 330 Concept Review Questions 331 Critical Thinking Questions 331 Project Assignments 332 References 332 CASE 1: GNFC Corporate Social Responsibility Strategy and Implementation 333 CASE 2: Corporate Governance and CSR with Marico 336 CHAPTER 10 CASE: Reliance Natural Resources Limited 340 10.1 Nature and Importance of Evaluation and Control 341 10.2 Barriers to Evaluation 344 10.2.1 Short-termism 345 10.2.2 Efficiency and Effectiveness 345 10.2.3 Impact of Globalization 345 10.3 Measuring Performance, Strategic Information, and Systems 346 10.4 Types of Control 348 10.5 Tools Used for Evaluation and Control 350 10.5.1 Balanced Scorecard 351 10.5.2 Budgets and Budgetary Controls 352 10.5.3 Economic Value Added 353 10.5.4 Ratio Analysis 354 10.5.4.1 Five ‘C’s analysis 355 10.5.4.2 Company analysis 356 Strategic Management_FM.indd 19 26-Dec-23 5:02:04 AM
xx Page Summary 358 Keywords 359 Concept Review Questions 360 Critical Thinking Questions 360 Project Assignments 360 References 361 CASE: Shipping Corporation of India Demerger Scheme 361 CHAPTER 11 CASE: Alok Industries Limited: Developing Integrated Textile Business Across the Value Chain 364 11.1 Nature and Importance of Strategic Cost Management 367 11.2 Steps in a Strategic Cost Management Program 367 11.3 Critical Success Factors for Strategic Cost Management 368 11.4 Alignment of Strategic Cost Management to Business Strategy 368 11.4.1 Total Approach Concept 369 11.4.2 Product Strategy 369 11.4.3 Pricing Strategies 370 11.4.4 Human Resources Strategy 370 11.4.5 Business Cycles and Strategic Cost Management 371 11.4.6 Value Chain Strategy 372 11.4.7 Value Reference Model 375 11.5 Tools of Strategic Cost Management 375 11.5.1 Life Cycle Costing 376 11.5.1.1 Developing and collecting the Life Cycle Cost 377 11.5.2 Target Costing 378 11.5.3 Pricing Strategies 380 11.5.4 Kaizen Costing 382 11.5.5 Half Life Model 384 11.5.6 Activity-based Management/Activity-based Costing 385 11.5.7 Total Cost Management/Enterprise Cost Management 389 11.5.7.1 Rationalization of Vendors 390 11.5.7.2 Integration of Vendors 390 11.5.7.3 Reducing Complexity 392 11.5.7.4 World-Class Manufacturing Practices 392 11.5.7.5 Strategic Sourcing 392 11.5.7.6 Cost of Quality 392 11.5.7.7 Network consolidation and customer insight 394 11.5.7.8 Customer Insight 394 Strategic Management_FM.indd 20 26-Dec-23 5:02:04 AM
Contents xxi Page 11.5.8 Cost Reduction Program 395 11.6 Time Value of Money 395 11.6.1 Net Present Value method 396 11.6.2 Benefit-Cost Ratio 396 11.6.3 Internal Rate of Return 397 11.7 Money Value of Time 397 11.8 Value Engineering 399 11.9 Value Analysis 401 11.9.1 Value Added 402 Summary 403 Keywords 403 Concept Review Questions 404 Critical Thinking Questions 405 Project Assignments 405 References 405 CASE: ASM Textiles Ltd: Improving Sales Realization Through Application of Money Value of Time 406 CHAPTER 12 CASE: The COVID-19 Outbreak and Its Impact on Global Business 410 12.1 Introduction 411 12.2 Impact of Uncertainty and Risk 412 12.3 Identification and Classification of Different Types of Risk 413 12.3.1 Physical Risk 413 12.3.2 Country Risk 416 12.3.3 Business Risk 417 12.3.4 Financial Risk 418 12.4 Assessing and Measuring Risk 419 12.4.1 Sensitivity Analysis 420 12.4.2 Scenario Analysis 421 12.4.3 Decision Trees 421 12.4.4 Monte Carlo Simulation 421 12.4.5 Certainty Equivalent 423 12.4.6 Risk-Adjusted Discount Rate Method 423 12.4.7 Asset Liability Management Model 424 12.4.8 Beta Analysis 425 12.4.9 Probability Analysis 426 12.4.10 Value at Risk 427 12.4.11 Black Scholes Model 427 Strategic Management_FM.indd 21 26-Dec-23 5:02:04 AM
xxii Page 12.4.12 HAZOP—Hazard and Operability Study 428 12.4.13 Probability of Ruin 429 12.5 Identifying Various Risk Management Techniques 429 Summary 434 Keywords 435 Concept Review Questions 437 Critical Thinking Question 437 Project Assignments 437 References 437 CASE: Amazon: Innovation and Risk Management 439 CHAPTER 13 CASE: The Strategies Adopted by Pharmaceutical Companies During Post Pandemic 444 13.1 Relationship Between Risk and Strategy 447 13.2 Types of Corporate Risk 451 13.2.1 Industry Risk 451 13.2.2 Transition Risk 453 13.2.3 Stagnation Risk 453 13.2.4 Unique Competitor Risk 455 13.2.5 Brand Risk 455 13.2.6 Project Risk 457 13.2.7 Operational Risk 458 13.3 Relating Corporate Risk to Management Principles 459 13.3.1 Industry Risk 459 13.3.2 Transition Risk 460 13.3.3 Stagnation Risk 461 13.3.4 Unique Competitor Risk 461 13.3.5 Brand Risk 462 13.3.6 Project Risk 462 13.3.7 Operational Risk 464 Summary 465 Keywords 465 Concept Review Questions 466 Critical Thinking Questions 466 Project Assignments 466 References 467 CASE 1: The Collapse of Lehman Brothers 468 CASE 2: Fall of Lakshmi Vilas Bank (LVB) and its Merger with DBS 470 Strategic Management_FM.indd 22 26-Dec-23 5:02:04 AM
Contents xxiii Page CHAPTER 14 14.1 The Case Method of Learning in Strategic Management 473 14.2 Significance of Case Method 474 14.3 Case Description 475 14.4 Procedure for Analysing the Cases 475 14.5 Approaches to Different Formats of Case Solution 476 14.5.1 Financial Analysis 476 14.5.2 Financial Statements 476 14.6 Key Focus Aspects for Designing a Solution to a Strategy Case 481 ADDITIONAL CASES 483 India’s Castings and Forging Industry: Issues and Perspectives 485 The Chennai Venus Hotel 491 S&S Inc invests in Core Life Science Technology Ltd 507 Gujarat Engineering Company Ltd 515 The Job Mix Strategy at Golden Machine Works 522 Merger of Allahabad Bank and Indian Bank 526 Goodwill Logistics CEO’s Dilemma Over Dedicated Trucks Business 531 Jubilant Food Works: Growth strategy 536 The Collapse of Silicon Valley Bank 541 Challenges in Building a Professional Service Firm 545 Strategic Management_FM.indd 23 26-Dec-23 5:02:04 AM
CHAPTER 3
“In a time of exploding change—with personal lives being torn apart, the existing social order crumbling, and a fantastic new way of life emerging on the horizon— asking the largest of questions about our future is not merely a matter of intellectual curiosity. It is a matter of survival.”
—Alvin Toffler in The Third Wave
LEARNING OBJECTIVES
After reading this chapter, you will be able to:
Understand the concept and characteristics of the environment and identify its divisions
Classify internal and external environment as well as the internal and external variables responsible for environmental changes
Establish methods and techniques for environmental scanning
Evaluate an environmental scan and its impact on strategy formulation
Develop forecasts of environmental changes using different forecasting techniques
Understand how the synthesis of external factors is applied
CHAPTER OUTLINE
CASE: EID Parry India Ltd—Management of the Environment
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3.4 Economic Environment CASE
EID Parry India Ltd—Management of the Environment
EID Parry is about two hundred thirty-five years old, starting in 1788. The company has become an icon in the sugar industry in India for more than 175 years, surviving wars, famines, epidemics, industrial and technological revolutions, evolving agrarian trends and patterns, and other seemingly insurmountable upheavals. EID Parry always looks forward to opportunities that come as challenges.
The legend of EID Parry dates back to 17 July 1788, when Welsh trader Thomas Parry first set foot on Indian soil. He foresaw tremendous prospects in India and established a piece goods and banking business. In 1819, Parry and John William Dare became partners.
After India gained independence in 1947, there was a strong impetus to Indianize the company. In 1972, the company’s board resolved to apply to the government of India for conversion into an Indian company.
EID Parry has always been a forward-looking company. It plans to bring large-scale investments in the sugar business by leveraging its strengths in this sector in the following directions:
EID Parry has six sugar factories with a throughput capacity of 40,300 tons crushed per day across its sugar mills. The company has focused on optimizing the crushing period by the increase in throughput, with improvements in process efficiencies, sugar recovery gains, and reduced energy consumption.
Table 3.1 provides the capacity and the rationalization achieved by the company.
TABLE 3.1:
Location Current TCD AP - Sankili 5,000 5,000 KN - Haliyal 7,500 4,500 12,000 KN - Bagalkot 6,000 6,000 KN - Ramdurg 5,000 5,000 TN - Nellikuppam 7,500 7,500
03_Chapter03.indd 44 21-Dec-23 11:08:11 PM
CASE
Note: Assets of Pudukottai, Tamil Nadu, were transferred to Haliyal plant in Karnataka as the surplus cane is available and higher recovery in this region.
It may be noted here that in the earlier period EID Parry was predominantly in sugar in Tamil Nadu. In the last two decades, quite a change has happened in restructuring the location of plants and the business geography. It started focusing growth opportunities in Andhra Pradesh and Karnataka. However, Karnataka has become the lead state and interestingly instead of Mandaya district of Cauvery belt, the company has set-up in North Karnataka districts and the biggest plant in Hariyal which is part of Uttar Kanara district. This may have a lot relationship with changing water resources across states and yield of sugar from sugarcane in factory zones.
In addition, EID Parry has been exploiting the value from bagasse by co-generating to meet the country’s growing energy demand. Table 3.2 below provides an overview of this initiative.
Note: Addition of 120 KLPD at Sankili is in progress.
The company has been adding manufacturing units across the entire value chain, from distilleries to industrial alcohol and rectified spirit to extra neutral alcohol (ENA) and fuel ethanol production. The government of India has decreed the 5 percent blending of ethanol with petrol, a regulation that is in the process of being implemented across all states. In India’s major sugar-producing states, it is proposed that this percentage be increased to 10 percent. According to published reports, the target of supplying petrol mixed with 10% ethanol (10% ethanol, 90% petrol) was achieved in June, ahead of the original schedule of November 2022 (The Hindu, 15 August 2022). It is expected that the Government, encouraged by the success, may target making petrol with 20% ethanol by five years to 2025.
It may be observed from the Table above that the company has a high distillery production capacity in Karnataka and Tamil Nadu sugar plants. Further, it also has larger capacity than based on molasses
Environment and Strategy Location Current TCD TN - Pugalur 4,800 4,800 TN - Pudukottai 4,500 4500 0 TN - Pettavathalai 3,500 3500 0 Total 43,800 3,500 40,300
Location AP - Sankili 16 48 KN - Haliyal 49 50 KN - Bagalkot 16 60 KN - Ramdurg 13 TN - Nellikuppam 25 75 TN - Pugalur 22 TN - Sivagangai 64 Total 141 297
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from the plant at a few locations like Bagalkot, and Sankili and Sivagangai plant is a stand-alone distillery. It shows the focus in value-added business, the ability to leverage industry opportunities and cross-subsidize operations across businesses.
Another important joint product while processing sugarcane in sugar manufacture is bagasse which is used for the co-generation of power. Sugar plants utilize steam for processing juice and make crystals using vacuum pans. Milling sections used to have steam drivers for milling. Now largely power is used. The plant uses a low volume of steam and power. However, by using high power boiler and at times making it fired by bio-fuels and coal. Nellikuppam plant was one of the earliest to start co-generation across the industry and thus a pioneer. Now, a sugar plant of the normal average size of 3750 TCD couples with a co-generation plant of matching capacity as long as power export to the grid is feasible.
Under the Kyoto Protocol, signatories have committed to contain the emission of greenhouse gases. Developed countries are increasingly looking towards the use of renewable energy sources. The opportunity for India arises from the demand for carbon credits that developed countries can buy, to honour their commitments under the Kyoto Protocol.
The nutraceuticals division, which became a part of EID Parry on 1 September 2006, continues to grow in all markets. Its products are currently exported to 35 countries. Spirulina continues to be in the forefront in the nutraceuticals business. ‘Organic Spirulina’ has the highest number of certifications in the world. EID Parry, the only company in the world with dedicated research and development for all the three types of algae, is expected to outperform competition in the business for the years to come. With increasing medical care costs and an aging population in the West, the nutraceuticals market is estimated to be well over $375 billion per annum, as a category of preventive health care is bound to grow at a steady pace. Table 3.3 below provides the company’s nutraceuticals product mix
EID Parry has always been an eco-friendly company. Its environmental management system policy commits the business to prevention of pollution, optimal utilization of resources and reduction in generation of wastes. Be it in the production of sugar, bio products or nutraceuticals, the company uses all renewable resources of nature, thus, maintaining the equilibrium in the ecosystem.
The company must have deployed risk management practices to increase the probability of achieving its set goals and objectives.
The following are the major risks associated with the sugar business:
Greens 3027304469 Joint health 111117839680 Prostate health 756797115128 Total 216211210255277
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Environment and Strategy
Raw material risk
Sugarcane is the main raw material for sugar and any disturbance in its timely availability will have a substantial impact on operational cost. This is likely to be caused by the following reasons:
Climatic condition: The crop and availability of cane in the southern Indian states namely Karnataka, Andhra Pradesh and Tamil Nadu are influenced by both southwest and northeast monsoons. Local weather conditions over the crop cycle affect the quantity and quality of cane.
Cane economics: The profitability of alternative crops will influence the planting area under cane. Pests, crop disease, and availability of farm labour also have impacts on the costs incurred by the cane grower. It is also influenced by cane procurement price and group decision of farmers who involve in contiguous farming.
Mitigation measures
The company has always maintained an amicable relationship with its farmers. It has paid up all dues on time, despite arrears having been on the rise in the industry as a whole. With its goodwill and the time-tested policy of ethical dealing, the company manages the risk of a short supply of raw material with the farmers in the addressable area where they continue to plant sugar cane. Further, with experiments in farm mechanization, drip irrigation, improved cane varieties developed by the research and development facility, and carefully monitored scheduling of cane planting, and harvesting, the company is confident of mitigating the risks it faces.
Policy risks
Both the central and state governments regulate the policies on cane. They currently have a considerable hold on this industry as they are able to fix the raw material price and to influence the sales price of sugar.
Further controls imposed on the industry by the government are in the following areas:
Exports (permission/incentives)
Imports (permission/tariffs)
Sugar pricing
Command area demarcation from time to time
Molasses movement control
Mitigation measures
The company works closely with ISMA and SISMA towards developing an industry point of view and facilitate appropriate policy recommendations to have dialogue with the government. These include formulation of policy on ethanol doping, review of cogeneration policy, de-control of sugar, review of sugar weightage in WPI etc.
Price risk
The cyclicality of the sugar business does have a final call on prices and thus affects profitability. Figure 3.1 shows the sugar price cycle.
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Mitigation measures
The company has taken the following two measures to insulate itself against price risk:
Focusing on value-added products like pharma-grade refined sugar, high-quality plantation white sugar, and retail packs to derive a better margin.
Direct supplies to large institutions and retail chains.
We note that the Indian sugar industry would go through a very critical phase where within a short period of time the situation can turn from one of short supply and high prices to one of excess supply and low prices.
While part of the problem could be due to government interventions, some are due to increased alignment with the world market. While in the short-term, relief measures have been announced to bring back stability in sugar prices, the long-term outlook for the sugar industry remains positive and promising for the following reasons:
Growing demand for sugar, especially internal consumption, led to strong GDP growth and changing food habits
Opportunity from fuel ethanol blending program
Opportunity from co-generation of power
Opportunities for India to become a structural sugar exporter and participate in the South Asian sugar market, provided an enabling conducive policy framework is put in place by the government
Important developments in the world ethanol program and its impact on world sugar availability
1. Analyze the impact of environmental factors on the growth and performance of the company. You may analyze the corporate and businesses like sugar, distillery and co-generation of power.
2. Review the outlook for the sugar industry in relation to the sugar price cycle. You may look into open-source data.
Higher Cane Production Higher Cane Production Alternate Crop Shifting Increasing Farmer Arrears Bearish Sugar Prices Lower Cane Production Increase in Sugar Prices Switch back to Sugarcane
cycle
sugar
Fig.3.1:
Business
of
price
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References
1. https://www.eidparry.com/wp-content/uploads/2022/05/SEInvestorPresentationUpdated.pdf (Accessed on 15 March 2023).
2. https://www.thehindu.com/news/national/india-achieved-10-ethanol-blending-target-ahead-ofschedule-pm/article65770941.ece, 15 August 2022 (Accessed on 15 March 2023).
3.1
CONCEPT OF ORGANIZATIONAL ENVIRONMENT, ITS CHARACTERISTICS, AND DIMENSIONS
In general, an object’s environment refers to its surroundings. In science and engineering terminology, a system is the part of the universe being studied, while the environment is the remainder of the universe that lies outside the boundaries of the system. It is also known as the surroundings, and in thermodynamics, as the reservoir. Depending on the type of system, it may interact with the environment by exchanging mass, energy (including heat and work), linear momentum, angular momentum, electric charge, or other conserved properties. In some disciplines, such as information theory, information may also be exchanged.
In the managerial universe also, the environment plays an important role in strategy formulation and performance. Depending on the type of business, it may interact with the environment by exchanging resources, get impacted by attributes of people, politics of the government, and cross-border events, leading to linear momentum as well as angular momentum.
Environment and Strategy
• Natural • Political • Economic • Technological • Social Firm Internal Environment Industry/Task Environment External Environment • Resources • Capabilities • Distinctive Competencies • Demand and Supply • Technological Changes • Competitive Forces
Figure 3.2 shows the environmental forces that impact a firm.
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Fig.3.2: Environmental forces impacting a firm
The external environment can be generally divided into five major divisions—natural, political, technological, economic, and social. The task environment relates to the industry and competitive forces in which the firm is operating. These include suppliers, investors, employees, competitors, trade associations, special interest groups, and governments. The internal environment comprises a company’s resources, capabilities, and distinctive competencies.
3.2 EXTERNAL ENVIRONMENT
The external environment influences the behavior and performance of a firm. To be successful in its business, a firm needs to handle external factors judiciously and proactively. Here, we will discuss some external environmental forces that could influence a business.
The natural environment, commonly referred to as the environment, encompasses all living and non-living things occurring naturally on Earth and some regions thereof.
The following components can identify the concept of the natural environment:
Complete ecological units that function as natural systems without massive human intervention, including all vegetation, animals, microorganisms, soil, rocks, atmosphere, and natural phenomena that occur within their boundaries
Universal natural resources and physical phenomena that lack clear-cut boundaries, such as air, water, and climate, as well as energy, radiation, electric charge, and magnetism, not originating from human activity
3.2.1 Environmental Sustainability
In this context, environmental sustainability becomes significant. Environmental sustainability is the process of making interactions between a firm’s business-related activities with the environment and is pursued with the objective of keeping the environment as pure as naturally possible based on idealseeking behavior to ensure sustainability.
An ‘unsustainable situation’ happens when natural capital is used up faster than it can be replenished. Sustainability requires that human activity only utilizes nature’s resources at a rate at which they can be replenished naturally. Inherently the concept of sustainable development is interrelated with the concept of what traffic can bear. Theoretically, the long-term result of environmental degradation is the inability to sustain human life. Such degradation on a global scale could lead to extinction for humanity. Table 3.4 gives the consumption of resources and their sustainability.
Business should be transacted so that the natural environment is preserved. Fundamentally it is necessary that a good business responds to the following factors:
1. Society has become aggressively aware of pollution of environment and has started resisting it.
2. This resistance has been channelized all over the world into specific troops for environmental advocacy.
R R State of Environment More than nature’s ability to replenishEnvironmental deteriorationNot sustainable Equal to nature’s ability to replenishEnvironmental alignmentSteady-state
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Environment and Strategy
3. Consumers have started demanding environmentally safe products.
4. Companies seeking loans from financial institutions must identify liabilities arising from environmental impact by insisting on social benefit analysis for any funding.
5. Environmental law has become more stringent, and pollution control procedures have been laid down through statutory regulations.
6. Many companies have opted for an environmentally friendly approach in order to avoid ecologybased lawsuits.
7. Business transactions take place between companies and stakeholders only if they adhere to a welllaid-out eco strategy. This is specifically required where there could be the use of local resources which need to be recreated, or those which would be depleted by nature and the local community need to be compensated.
The following are some of the further studies that are being conducted to quantify the impact of industrial activity on the environment:
a. To search for resources in the natural environment that affect the sustainability and challenges of activities in the industry
b. Rio Convention introduced to the world the idea that development should consider not only the economic but also environmental and social aspects.
Moreover, the growing demand for ‘green’ products has created major new markets in which precocious eco-entrepreneurs are reaping material rewards.
Continuing our discussion on the environment and business, we want to show the importance of environmental determinism. According to environmental theorists, culture is determined by the physical environment rather than social conditions. The basis of such an argument is that physical geography mainly influences climate, which further affects the individual’s response to the environment and, thus, their mindset, attitude, and behavior. This means that the physical environment has a bearing on social culture, in contrast with the belief that social culture is a manifestation of the behavior of a group of people in society. Such theorists also believed that a tropical climate encourages laziness and a relaxed attitude, while the varying climatic conditions in middle latitudes built up a more social work ethic. For these environmental influences to operate slowly on human biology, it became essential to track the migrations of groups to find out the environment from which they had evolved.
Another version of environmental determinism was popular among Marxists, and was based on employing the dialectical materialism concept of history. Besides, Marx’s fundamental model of the ideological and cultural superstructure being determined by the economic base, economic base is also determined by environmental conditions according to communism. This brings out bi-directional relationship between economic base and environment, one influencing the other. For example, Russian geographer Georgi Plekhanov argued that the cause of his country continuing to be in the feudal age was that the wide plains of Russia permitted class conflicts to be easily diffused.
3.2.2 Climatic Determinism
Climatic determinism is another aspect of economic geography. It is also sometimes called the equatorial paradox. According to this theory, about 70 percent of the economic development of a country can be predicted from the distance between that country and the equator. In other words, the farther it is from the equator, the more developed a country tends to be. The paradox applies equally well to both north and south of the equator. Australia, for example, has a higher level of economic development than
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Indonesia. The paradox also applies within countries—the northern US states are more developed than the southern US states.
Singapore is a notable departure—it is located at 1.22° N and is one of the world’s most prosperous countries. This prosperity is based on its position as a port. Other exceptions to the paradox tend to have large natural resources. Middle East countries are a good exception.
One popular theory to explain this phenomenon is that the development of an economy is less necessary in tropical regions—‘you can lie in a hammock and pick bananas,’ as opposed to the need to invent agriculture and economy in order to prosper and survive. This explanation, while convenient, may not be sufficiently adequate to explain the equatorial paradox truly.
Another aspect of the natural environment that has gained momentum and is becoming a matter of concern for the entire world where they continue to experience increased global warming due to the excessive use of fossil fuels – coal, oil, and natural gas. This was a result of advances in industrialization and civilization, and as people demanded more goods of comfort and luxury. Unfortunately, this has led to an increase in global temperature to 0.74 6 0.18 °C between the start and the end of the 20th century. This is also likely to continue in the 21st century where the global surface temperature could go up by 1.1 °C to 6.4 °C. This leads to a faster rate of depletion of natural resources as desert regions expand and glaciers melt.
As the earth gets warmer, society comes under stress and so do business conditions. The demand and supply of goods under such conditions may not be the same as what is being now. Fossil fuel is the key to industrialization and consumption, as energy is one of the main inputs in production. Fossil fuels are also needed for society to derive utility from many consumer products such as fans, televisions, cars, air conditioners, air travel, etc.
World leaders met at Copenhagen in 2009 to discuss various aspects of managing global climate change. The World Wildlife Fund (WWF) suggested some changes in the policy to be adopted in the new climate treaty among 193 participating nations. One of the main objectives was to create a fund for communities vulnerable to global climate change. It also observed that though there is a political commitment to reduce global warming by below two degrees, it was felt that a reduction below three degrees would bring meaningful impacts. However, the summit proceedings created more differences between developed and developing nations as the latter had to give up more compromising their development initiatives. Countries such as Brazil, China, India and South Africa also took strong exceptions to the proposed treaty on the grounds that it will affect their economic growth. This led to an embargo on the proceedings.
The then US President Obama proposed a compromise to end the embargo. The United Nations Framework Convention on Climate Change (http://unfccc.int/2860.php) and a number of open sources provide useful information for the corporate planner to understand environmental challenges due to global warming.
The World has moved forward a lot on global warming combat initiatives, demands and negotiations among different groups based on their long-term benefits and power. There are upward-moving goalposts, but interestingly, developments have been more understanding and accommodative as certain disasters like melting of glaciers, unpredictable monsoon changes, excessive heat waves and cold seasons pushing hard various factions into negotiation.
There is a natural environment within which humans live and perform economic activities including business for survival. The built environment refers to the interface of humans with the surrounding geographical area to facilitate economic activities. Under the field of urban and town planning, mankind tries to harmonize the natural and built environments through parks, afforestation, and management of waste disposal and so on. Humans need to balance the natural and built environments in order to ensure the sustainability of nature and the resources it provides for human survival.
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Environment and Strategy
Environmental science is the subject that links up physical sciences such as physics, chemistry, and so on with social sciences such as management, economics, and politics. For instance, climate is influenced by the flow of heat energy and radiation from the sun. The heat generated by the earth is absorbed by gases in the atmosphere—such as carbon dioxide (CO2), water vapor, methane, nitrous oxide, ozone, and halocarbons—which lead to an imbalance in greenhouse gases in the atmosphere and thus affect the ecosystem. Changes in climatic conditions in the ecosystem impact business and hence company strategy. This would go in continuum as there is likely to be changes with explosion of human and usage of natural resources for business. Such compelling need has to be managed better, or else we risk the society.
Climate change also often increases the effects of existing threats to the environment. Problems relating to the greenhouse effect have developed over many decades but sufficient attention has not been given until the Kyoto Protocol. This change in the natural environment has a drastic impact on human beings and their economic activity. For example, the insurance industry is facing a business risk of billions of dollars each year because of the increase in natural disasters and global warming.
3.2.3 Climate-Related Strategy
Companies all over the world have acknowledged the dangers of global warming and have started developing climate-related strategies. Developing such strategies requires four underlying criteria. These are as follows:
1. Strategic timing: While this varies between companies, management has to comply with various legislative and legal protocols, which usually are time-bound in nature. It is therefore important that companies develop products for the environmentally-conscious consumer.
2. Necessary level of commitment: Reducing the level of greenhouse gas emissions will require a high level of commitment and extensive expenditure. As corporate expenditures on this front will be both short-term and long-term it is important to establish cost/benefit relationships.
New policies are on the anvil for regulating GHG emissions and arresting global warming. These will lead to adherence to new norms impacting the existing competitive advantage enjoyed by various companies. Companies need to participate in developing and deploying such policies to gain credibility and leverage participation.
The field of climate-related strategy development has opened up pathways for a range of greener, cleaner and more efficient products. Companies that seize such opportunities early will naturally stand to gain.
Climate-related strategy can be developed in three stages as follows:
Stage I: Formulate climate strategy
(a) The first step is to assess the profile of emissions, which is done as follows:
(i) Identify direct and indirect GHG emissions and their sources.
(ii) Quantify such emissions and develop metrics for the same for the level of emissions.
(iii) Identify/develop technological techniques required for such a control for monitoring.
(b) The risks and opportunities then need to be measured as follows:
(i) Compare the risk of GHG emissions of the company with those of the competitors.
(ii) Check if there is a probability of reducing the levels to such an extent to clearly obtain a competitive advantage.
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(iii) Check the response to the products in the marketplace.
(iv) Identify new products taking into consideration relevant norms.
(c) Then the options for action need to be analyzed:
(i) Reduction opportunities
(ii) Innovation opportunities
(iii) Short-term steps
(iv) Long-term steps
(v) Impact on bottom line
(d) Targets must be set as follows:
(i) Milestones for ultimate target must be identified.
(ii) The milestones must be linked to topline sales.
(iii) The milestones should also be linked to bottom-line profit.
(iv) An adaptation roadmap must be created.
Stage II: Evaluate and implement climate strategy
(a) Financial requirements and mechanisms must be developed as follows:
(i) Assess financial requirements—short-term and long-term
(ii) Available vehicles of finance
(iii) Cost of shadow pricing, i.e., the maximum price management is willing to pay for an extra unit of a limited resource
(b) The entire organization needs to be involved in the process:
(i) Create awareness in the entire organization.
(ii) Identify responsibilities across all levels.
(iii) Identify possible implementation problems.
(iv) Identify critical areas of implementation and move slowly from critical to non-critical areas during deployment.
Stage III: External assessment
This can be done by analyzing the following:
(a) Policy options
(b) Impact of such policy options on climate-related activities
(c) Extent of company participation in governmental policymaking
(d) Extent that the government can influence such policy development which depends upon support from different stakeholders
(e) External relations
(i) Develop external constraints
(ii) Develop contact programs
In conclusion, developing a climate-related strategy is a must, but the timing can vary for different companies. It is to be fully understood that there are both risks and opportunities and the corporate world necessarily has to wake up to this situation and act.
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STRATEGIC MANAGEMENT
AUTHOR
:
N. CHANDRASEKARAN , P.S. ANANTHANARAYANANPUBLISHER : TAXMANN
DATE OF PUBLICATION : FEBRUARY 2024
EDITION : 2nd Edition
ISBN NO : 9789357788106
NO. OF PAGES : 578
BINDING TYPE : PAPERBACK
DESCRIPTION
Rs. 695 USD 9
This book discusses the crucial role of strategic management in leveraging technology, digitalisation, smart manufacturing, and globalisation to gain a competitive advantage in today's dynamic market. It highlights how companies vie not just for resources and capabilities but also for innovative ideas and market presence to ensure sustainable growth. The narrative underscores the creation of strategic assets and intents, positioning firms as industry leaders and setting new standards of excellence across global markets.
This book is designed for students enrolled in Strategic Management courses, whether in management programs or specialised strategic management courses, and professionals seeking to deepen their understanding of strategic management principles and applications. The Present Publication is the 2nd Edition, authored by N. Chandrasekaran and P.S. Ananthanarayanan. The noteworthy features of the book are as follows:
• [Integration of Global and Indian Business Context] The book presents an in-depth look into the strategic management practices that have shaped successful international and Indian companies, emphasising the creation of intangible and physical assets in competitive markets
• [Evolution of Strategic Management] It traces the development of strategic management from various perspectives, including Long Range Planning, Business Policy, and Corporate Planning, to its current significance in ensuring sustainable growth in a fluctuating business environment
• [Comprehensive Approach] The text presents a holistic view of strategic management, covering the spectrum from strategic planning to execution. It addresses the challenges of global mergers, market entries, and technological advancements, highlighting their impact on corporate strategies and host countries
• [Practical Insights and Indian Ethos] Through exhibits, case studies, and examples, the book reflects the Indian managerial scenario and ethos, offering a unique perspective on globalisation and strategic management
• [For a Diverse Audience] Aimed at management students, practising managers, and professionals across sectors, this book elucidates concepts, tools, and techniques of strategic management, making them relatable to real-life business situations
• [Structured Learning Experience] Each chapter begins with clear learning objectives and unfolds systematically, blending theory with practical applications. Illustrations, examples from real life or industry, and case studies for classroom discussion are included to enrich the learning experience
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