PowerPoint Presentation

BUSINESS PLANNING & STRATEGIESPRESENTATION FOR STUDENTS OF BITS PILANIDUBAI CAMPUS 23rd April 2014

OBJECTIVES OF BUSINESSProfitability: sole motive of business; all other objectives are subservient to profit motiveStability: cautious and conservative objectiveGrowth: increase in assets, manufacturing facilities, increase in sales volume through existing products or new products, improvements in profits or market share, increase in manpower, acquisition Efficiency: rationally choosing appropriate means to achieve goals; doing things in best possible manner; utilizing resources in a most suitable combination to get highest productivitySurvival: function of nature of ownership, nature of business competence of management, general and industry conditions, financial strength of the enterprise, etc.

COMPONENTS OF BUSINESS ENVIRONMENTExternal factors outside the organisation which provides opportunities or poses threatsInternal factors within the organisation which impart strengths or cause weaknesses of a strategic natureBusiness Environment can be described in terms of the opportunities and threats operating in the external environment apart from the strengths and weaknesses existing in the internal environment

BUSINESS PLANNING PROCESS

FRAMEWORK OF STRATEGIC MANAGEMENTStage One: Beginning starting point Where are we now? situational analysis in the environmental context SWOT AnalysisStage Two: End destination Where we want to be? vision and missionStage Three: Means How to get there?Stage Four: Evaluation Which is the best way? SWOT AnalysisStage Five: Control How can we ensure arrival at the destination?

BENEFITS OF STRATEGIC MANAGEMENTStrategic Management required for both survival and growthSurvival of the fittest propagated by DarwinFittest are not largest or strongest organization but those who can change and adapt successfully with the changes in business environmentBenefits of Strategic Management:helps to be proactiveprovides framework for all major business decisionsEnsures good futureServes as a corporate defense mechanism against mistakes and pitfallsHelps to evolve core competencies and competitive advantages

CHASE

PESTLE ANALYSISP Political political stability, ideologies, taxation policy, regulatory bodies, government policies, government term and change, thrust areas of political leadersE Economic situation, trends, market and trade cycles, specific industry cycles, end-user drivers, interest and exchange rates, inflation and unemployment, consumer spendingS Socio-cultural lifestyle trends, demographics, attitudes and opinions, brand image, buying patterns, ethnic/religious factors, media views and perceptionT Technological replacement technology, maturity of technology, manufacturing maturity, innovation potential, technology access, licensing, patents, intellectual property rightsL Legal business and corporate laws, employment law, competition law, health & safety law, international treaty and law, regional legislationE Environmental ecological/environmental issues, environmental hazards, environmental legislation, energy consumption, waste disposal

VISIONVision is the ultimate goal, dream and the guiding star of the OrganisationNIKE"To bring inspiration and innovation to every athlete* in the world"

* If you have a body, you are an athlete.TOYS R US"Our Vision is to put joy in kids hearts and a smile on parents faces."AMAZON"Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online."IKEAIkeas Vision Affordable solutions for better living.

MISSIONMission is focused on present business scope who we are and what we do the reasons for our existenceMission describes who our customers are and what we produce as outcome for themMission amplifies what brings the firm to this business or why it is there, what existence it seeks and what purpose it seeks to achieve as a business firmMission defines the role that an organisation plays in the societyWhat business we are in - answer should be marketing or external perspective and not restated to general activities or production according to Peter Drucker

CORE VALUESDescribes how the business should be conductedDesired culture of the organisationPrinciples that guide the behaviour of the people involved in the organisation

STRATEGYShutting doors first and then keeping only one door open

Strategy is to unravel complexity and to reduce uncertainty of the environment.Strategy seeks to relate the goals of the organization to the means of achieving them.Strategy is partly planned and partly reactive

COMPETITIVE ENVIRONMENTWho are the competitors?What are their products and services?What are their market shares?What is their financial position?What gives them cost and price advantage?What are they likely to do next?Who are the potential competitors?

PORTERS FIVE FORCES MODELCompetitive Analysis five forces model of competitionThe five forces are:Rivalry among existing firmsNew entrantsSubstitute productsSuppliers bargaining powerCustomer bargaining power

REVOLUTIONARY THINKINGUser friendly systemDefine UserSteve Jobs question User? Who?

AMAZING SENTENCEI do not know where family doctors acquired illegibly perplexing handwriting; nevertheless, extraordinary pharmaceutical intellectuality counterbalancing indecipherability transcendentalizes intercommunication's incomprehensibleness.

CASE STUDY iPAD MiniAnnounced on October 23, 2012Released on November 2, 20127.9 inch screenCompetitors Kindle Fire and Nexus 7 Market Response???

COMPETE OR COLLABORATE

MERGER OF SAMSUNG & APPLE

GROW OR SHRINK

DIVERSIFICATION

WARREN BUFFETTS RULESModule Title | Etisalat AcademyRule No.1 Do not lose any of your shareholders moneyRule No.2 Do not forget rule No.1

SUCCESSFUL BUSINESSMANHow did you become successful in business?Two words Right DecisionsHow do you take those Right Decisions?One word Experience

How did you gain that Experience?Two words Wrong Decisions

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