INTRODUCTION OF STRATEGIC MANAGEMENT

Strategic Management is all about identification and description of the strategies that managers
can carry so as to achieve better performance and a competitive advantage for their organization.
An organization is said to have competitive advantage if its profitability is higher than the
average profitability for all companies in its industry.
Strategic management can also be defined as a bundle of decisions and acts which a manager
undertakes and which decides the result of the firms performance. The manager must have a
thorough knowledge and analysis of the general and competitive organizational environment so
as to take right decisions. They should conduct a SWOT Analysis (Strengths, Weaknesses,
Opportunities, and Threats), i.e., they should make best possible utilization of strengths,
minimize the organizational weaknesses, make use of arising opportunities from the business
environment and shouldnt ignore the threats.
Strategic management is nothing but planning for both predictable as well as unfeasible
contingencies. It is applicable to both small as well as large organizations as even the smallest
organization face competition and, by formulating and implementing appropriate strategies, they
can attain sustainable competitive advantage.
It is a way in which strategists set the objectives and proceed about attaining them. It deals with
making and implementing decisions about future direction of an organization. It helps us to
identify the direction in which an organization is moving.
Strategic management is a continuous process that evaluates and controls the business and the
industries in which an organization is involved; evaluates its competitors and sets goals and
strategies to meet all existing and potential competitors; and then reevaluates strategies on a
regular basis to determine how it has been implemented and whether it was successful or does it
needs replacement.
Strategic Management gives a broader perspective to the employees of an organization and they
can better understand how their job fits into the entire organizational plan and how it is co-

related to other organizational members. It is nothing but the art of managing employees in a
manner which maximizes the ability of achieving business objectives. The employees become
more trustworthy, more committed and more satisfied as they can co-relate themselves very well
with each organizational task. They can understand the reaction of environmental changes on the
organization and the probable response of the organization with the help of strategic
management. Thus the employees can judge the impact of such changes on their own job and can
effectively face the changes. The managers and employees must do appropriate things in
appropriate manner. They need to be both effective as well as efficient.
One of the major role of strategic management is to incorporate various functional areas of the
organization completely, as well as, to ensure these functional areas harmonize and get together
well. Another role of strategic management is to keep a continuous eye on the goals and
objectives of the organization.
Following are the important concepts of Strategic Management:
Strategy - Definition and Features
Components of a Strategy Statement
Strategic Management Process
Environmental Scanning
Strategy Formulation
Strategy Implementation
Strategy Formulation vs. Implementation
Strategy Evaluation
Strategic Decisions
Business Policy
BCG Matrix
SWOT Analysis
Competitor Analysis
Porters Five Forces Model
Strategic Leadership
Corporate Governance
Business Eth

MEANING AND DEFINITION OF STRATEGIC MANAGEMENT

Strategic management is the continuous planning, monitoring, analysis and assessment of all
that is necessary for an organization to meet its goals and objectives.
The management of an organizations resources in order to achieve its goals and objectives.
Strategic management involves setting objectives, analyzing the competitive environment,
analyzing the internal organization, evaluating strategies, and making sure that the strategies are
rolled out across the organization
The term strategic management is used to refer to the entire scope of strategic-decision making
activity in an organization. Strategic management as a concept has evolved over time and will
continue to evolve. As result there are a variety of meanings and interpretations depending on the
author and sources. For example, some scholars and practitioners the term strategic planning
connote the total strategic management activities. Moreover, sometimes managers use the terms
strategic management, strategic planning, and long-range planning interchangeable. Finally,
some of the phrases are used interchangeably with strategic management are strategy and policy
formulation, and business policy.
DEFINITIONS:

Strategic management is the process of managing the pursuit of organizational mission

while managing the relationship of the organization to its environment (James M. Higgins).
Strategic management is defined as the set of decisions and actions resulting in the
formulation and implementation of strategies designed to achieve the objectives of the
organization (John A. Pearce II and Richard B. Robinson, Jr.).
Strategic management is the process of examining both present and future environments,
formulating the organization's objectives, and making, implementing, and controlling

decisions focused on achieving these objectives in the present and future

environments (Garry D. Smith, Danny R. Arnold, Bobby G. Bizzell).
Strategic management is a continuous process that involves attempts to match or fit the
organization with its changing environment in the most advantageous way possible (Lester
A. Digman).

SAINT GOBAIN- GYPROC INTRODUCTION

Saint-Gobain entered India in 1996, and has achieved strong and profitable growth since then.
Today, it is a leader in all its major businesses, has 21 manufacturing sites and about 4,900
employees in India. In 2014, Saint-Gobain registered sales of about Rs.4800 crores. For SaintGobain, India presents a huge opportunity for growth. Two large entities, Grindwell Norton
Limited (GNO), a publicly traded company, and Saint-Gobain India Pvt. Ltd. (SGI) and a few
smaller entities house Saint-Gobains businesses in India. The Group has adopted a systematic
focus in launching its individual businesses in India and currently operates in two of SaintGobains business sectors: Innovative Materials and Construction Products.
GYPROC:
Gyproc is a world leader in sound absorption and sound insulation solutions.
Youre sitting in your cubicle busy working on a client proposal that you need to discuss with
your boss in the evening. A cell phone ring interrupts your train of thought. The person in the
next cubicle answers the phone in a loud voice forgetting that nearly everything he says can be
heard from 10 cubes away. You put on your headphones and turn on some music to block the
noise but to no avail. Soon, you feel like banging your head against the wall. This is a story
which happens in many offices across the country today. But why is that nothing gets done, is it
because we accept noise as a given in our daily lives.
Over the years, the office workspace design has evolved from independent offices to cubicles
and finally by work stations in what is commonly known as open plan office design where teams
of people can work together. Besides size, the open plan office encourages transparency and
makes everyone more accessible. Not surprisingly, the lack of barriers separating one
employee from another also means that they can over hear each others conversations. Studies
have shown that over 50% office workers are dissatisfied with the level of speech privacy. It is
important to remember that a loss of privacy to one individual is a cause of distraction for
another.

What do iconic buildings such as the T3 airport terminal in Delhi, the Infosys campus in Mysore
and the Lodha World Towers in Mumbai have in common?
All of them use products manufactured by Gyproc!
Gyproc is part of the Euro 43 billion Saint-Gobain Group, the world's leading manufacturer of
ceilings, drywalls and gypsum plasters. The company is a pioneer in introducing lightweight
interior construction practices in the Indian market, and its products and systems are the
preferred choice of companies, builders, interior decorators and end consumers. WORLD
CLASS INFRASTRUCTURE
Three world-class manufacturing units in Jind (near Delhi), Wada (near Mumbai) and Bengaluru
Three drywall academies in Delhi, Wada and Bengaluru to train contractors and applicators in
the latest techniques
An extensive countrywide sales and warehouse network
Countrywide distribution network

HUMAN RESOURCE FUNCTIONS FOLLOWED BY GYPROC

SKILL BUILDING INITIATIVE:
The Indian gypsum industry is developing fast, and this fast pace of growth is leading to an
increased demand for skilled manpower in the industry. Gyproc India has identified this as an
important concern and is working towards bridging the gap between in this need and the current
availability of skilled human resources, by conducting a basic training course in Drywall & False
Ceiling for fresh labour coming into the industry. Gyproc India, in close collaboration with Dr.
K.L Garg Vocational Training Institute, has commenced this initiative through a learning centre
in Lucknow, Uttar Pradesh, which is the hub for most of the current tradesmen in Indian gypsum
industry. The aim of the training program is to provide skill training to fresh candidates and to
help the attendees take up employment in the fast-growing gypsum-based construction industry.
The program comprises of 21 days of detailed training sessions for Gypsum False Ceiling and
Drywall installation, with a mix of theory and practical sessions. Each batch has 30 students.
THE PROGRAM CURRICULUM COVERS:
False Ceiling
Drywall Installation
Safety Parameters
Modern Tool Knowledge
The centre has conducted 3 batches till date and has been instrumental in the successful course
completion and placement of more than 60 tradesmen, who are now working with leading
contracting firms. The course is delivered by instructors with training experience from CIDC
(Construction Industry Development Council) and ITI (Training Institute
Industrial).RECOGNITION OF OUR TRADE BY THE GOVERNMENT OF INDIA We are
pleased to inform you that our trade has finally been recognized by the Government of India. The
course module on Drywall and False Ceiling has been approved by the DGET (Director
General of Employment and Training), which is under Ministry of Labour and Employment. It is
a course under MES (Modular Employable Skills) as part of the Construction Sector. A parallel
initiative has also been implemented for on-site training. On-ground training is imparted to

manpower working on project sites to train them during project implementation. This ensures
that best practices are learnt on the site itself. The learning and development of such individuals
shall lead to empowered tradesmen in days to come. Course Name: Assistant Technician Drywall
and False Ceiling Sr. No 272 MES Code - CON 702 was uploaded on 11th Sep 2014.THE
BENEFITS OF THIS APPROVAL ARE AS BELOW:
This has been categorized under A grade, looking at the training cost and type of job
This can now be run by all the VTPs (Vocational Training Providers)
The Institute can charge Rs.27.50 per hour / student
This course is devised for 500 hours and hence the institute will get Rs.13, 500/- per student
This can be run across India
This recognition is a great boost to our industry and will help us generate skilled manpower. This
recognition is also a great example of teamwork between Gyproc and you (our High Rise Club
members), whose representation and support made this recognition possible.

VALUES
Over the years, the Saint-Gobain Group has evolved a number of shared principles, which have
guided its activities across the world. These shared principles have been given written expression
to strengthen their application within the group. The Saint-Gobain Group's General Principles of
Conduct and Action include
PRINCIPLES OF CONDUCT
PROFESSIONAL COMMITMENT
Professional commitment means mobilizing an individual's knowledge and know-how, as well as
training to keep them up-to-date. It means personal commitment and a willingness to take on
assigned tasks and to acquire the knowledge necessary to do the job. It also calls for each person
to care for the environment and worker health and safety
RESPECT FOR OTHERS
Respect for others is absolutely essential to ensure each person's professional and personal
development. It involves accepting other cultures and of people of different origins, and a
readiness to listen to others, to inform, to explain, and to engage in dialogue.

INTEGRITY
Saint-Gobain requires rigorous adherence to probity in all professional activities. No individual
may put his or her own interests ahead of the group whether in dealing within the group or on
its behalf with third parties.
LOYALTY
All individuals must practice honesty and fairness in dealing with superiors, colleagues,
subordinates and third parties. Individuals should not pursue their self-interest when it comes
into conflict with the goals of the company or the group as a whole. There should be strict
adherence to guidelines and internal rules of individual companies and of the group.
SOLIDARITY
Solidarity is based on a sense of individual responsibility at work, working as a team and
bringing out the best in each person, to achieve the objectives of the company and the group. It
means rejecting management or operational methods geared more to the satisfaction of certain
individuals rather than the interests of the individual company or the group.
PRINCIPLES OF ACTION
RESPECT FOR THE LAW
All group companies must follow the laws and regulations of the countries in which they do
business. In particular, they must not indulge in actions that might breach competition law. They
must refrain from any form of political activity or financing, even if it is allowed under local
laws. They must also reject all forms of active or passive corruption, whether in domestic or
international transactions. Furthermore, they must avoid loopholes or inadequacies in any laws or
regulations if that means non-compliance with the norms of the Saint-Gobain Group in the areas
described below.
CARING FOR THE ENVIRONMENT
Group companies should actively promote the protection of the environment. All company sites
should set clear environmental targets and regularly monitor them, measuring them against these

targets. They must strive to raise environmental performance standards to match the best in the
group even if that means going beyond the requirements of local legislation.
WORKER HEALTH AND SAFETY
Group companies should take particular care to ensure the best possible protection against health
and safety risks in the workplace. They must adopt risk reduction policies check actual results
against applicable standards. Such policies must apply not just to their own employees but also to
the employees of subcontractors, when the latter are working on a group site. They must strive to
raise the health and safety performance standards of their own sites to the best found in the group
even if that means going beyond the requirements of local legislation.
EMPLOYEE RIGHTS
Group companies must scrupulously respect employees' rights, and must promote active
dialogue. They must not use forced, compulsory, or child labour whether directly or indirectly
or through sub-contractors. They must also refrain from any form of discrimination against their
employees, whether in the recruitment process, in hiring, or during or at the end of the
employment relationship.

AND STRATEGIES FOLLOWED BY GYPROC

Saint-Gobain's strategic positioning in habitat and construction

markets means we must be irreproachable when it comes to
environmental issues and sustainable development.

SUSTAINABLE HABITAT SOLUTIONS

According to Pierre-Andr de Chalendar, Chairman and CEO
Saint-Gobain, the worldwide leader in sustainable habitat solutions, designs, manufactures and
distributes building materials and high-performance materials, providing innovative solutions to
the challenges of growth, energy efficiency and environmental protection.
Saint-Gobain has made the strategic decision to become the reference in sustainable habitat and
construction markets. Taking a long-term view, the Group develops products and services for its
customers that facilitate sustainable construction. In this way, it designs innovative, highperformance solutions that improve habitat and everyday life.
MARKET IN MOTION
At the same time, faster technological innovation in the construction industry is helping to
drive significant advances in the architectural quality and environmental performance of
buildings.
The development of building techniques and the significant expansion of the Internet have led to
a growing demand among craftspeople for ever-more efficient and innovative distribution
solutions.
These underlying trends create substantial opportunities for Saint-Gobain to develop high valueadded construction and renovation solutions for professional customers to ensure that buildings
are energy efficient, comfortable, healthy and esthetically superior, while at the same time
protecting natural resources.

Habitat solutions represent over 80% of our end markets

LEADING-EDGE HIGH-PERFORMANCE MATERIALS

The High-Performance Materials Activity delivers high value-added solutions for very
different, complex applications in construction, as well as in industry.
Its in-depth expertise in a range of technologies allows the Group to get the most out of the
complementary nature of its three families of materials (ceramic materials, high-performance
polymers and glass fiber yarn).
As a result, Saint-Gobain can design solutions to meet its customers specific needs, often in
industrial niches that are well suited to co-development strategies.

ENSURING A UNIQUE POSITIONING

Saint-Gobain is uniquely positioned, with complementary strategic focuses in building
materials and high-performance materials technologies:
It is the worldwide or European leader in all of its businesses, with local solutions tailored to the
needs of each market.
It has an unrivalled portfolio of energy efficiency products and solutions.
Its deep understanding of building professionals' needs, acquired through daily contact with
customers, makes it possible to adapt the Groups solutions to highly specific market
requirements.
It has outstanding potential for innovation, supported by unique industrial and distribution
expertise and a commitment to materials research.
Its culture of operational excellence gives the Group an underlying robustness and the ability to
respond quickly to changes in the economic environment.
Its solid set of tested values helps build lasting relations with all stakeholders, from customers
and employees to suppliers, subcontractors, shareholders and the community.
A manufacturing presence in 64 countries, representing 64 springboards for growth

A CULTURE OF INNOVATION-

ONE OF THE 100 MOST INNOVATIVE COMPANIES IN THE WORLD

Research and innovation are at the center of Saint-Gobains strategy and Corporate Social
Responsibility policy. The Groups ongoing initiatives in this area are paying off; in 2014, SaintGobain ranked among Thomson Reuters Top 100 Global Innovator Companies for the fourth
year in a row.
This is a responsibility for the Groups teams, as well as a major source of motivation. Through
their innovations, the teams play a part in reducing the environmental impacts of buildings,
processes and the development of new high-performance solutions.

DEVELOPING ECO-RESPONSIBLE INNOVATIONS

Life cycle assessments are conducted for all of Saint-Gobains building industry product
families in order to measure their environmental footprint. The assessments enable Saint-Gobain
to reduce the environmental impacts of its products while also creating value. A culture of ecoinnovation is being extended to all of the Groups businesses, in all its markets.
The Group is also working on reducing the environmental footprint of its industrial processes.
Similarly, special attention is paid to product recycling. Concerning the shipping of materials,
Group researchers are using their skills to develop models for more efficient and environmentally
friendly shipping processes.
Devising products that significantly reduce the environmental impact of the buildings and
infrastructure that use them

AN INTERNATIONAL CHALLENGE
Investing in habitat solutions is one of the major challenges facing both the most mature
economies and fast-growing economies. Governments around the world are adopting policies
designed to improve housing and working conditions and to reduce energy consumption in the

building sector in the face of accelerating global warming and diminishing natural resources.

INTRODUCTION OF FLIPKART
Flipkart is an e-commerce company founded in 2007 by Sachin Bansal and Binny Bansal. It is a
Singaporean company which operates in India, where it is headquartered in Bangalore,
Karnataka..
Flipkart began with selling books since books are easy to procure, target market which reads
books in abundance, books provide more margin, are easy to pack and deliver, do not get
damaged in transit and most importantly books are not very expensive, so the amount of money
customer has to spend to try out ones service for one time is very minimal. Flipkart sold only
books for the first two years.
Flipkart started with consignment model ( procurement based on demand) i.e. they had ties with
two distributors in Bangalore, whenever a customer ordered a book, they used to personally
procure the book from the dealer, pack the book in their office and then courier the same. In the
initial months the founders personal phone number used to be the customer support numbers.
So, in the start they tried their best to provide good service, focus on the website- easy to browse
and order hassle free and strove hard to resolve any customer issues. Since there were not any
established players in the market, this allowed them a lot of space to grow, and they did in fact
grew very rapidly.
This is indeed a massive growth. The company targets revenue of 5000 crore by 2015.
The company started from 2 employees and has now around 4500 employees.
A humble beginning from books, Flipkart now has a gamut of products ranging from cell,
phones, laptops, computers, cameras, games, audio players, TVs, healthcare, washing machine
etc.
Also to mention most of the Flipkart users use internet from PCs, laptops to order goods. The
use of mobile internet is very less at the moment. But with the advent of smart phones the use of
mobile internet for e-commerce transactions will soar with time. India has 8 crore mobile net
users at the moment, the number is expected to swell to 22.5 crores by 2014
In May 2014, Flipkart received $210 million from DST Global, in July 2014 it raised $1 billion
led by existing investors Tiger Global and South Africa's media group Naspers and in May 2015
it raised $550 million from some of its existing investors. Flipkart's last fundraising round in

May 2015 had pegged its valuation at $15 billion.

SWOT ANALAYSIS OF FLIPKART

STRENGTHS:

Top Indian e commerce portal

Diversified into electronic goods
Cash on delivery i.e. COD is making 60% of its income
Industry condition: very high potential
Investors trust
Services and warehousing
Payment options
Established brand

WEAKNESS

Coordination with suppliers and courier was tough

Price biasing to maintain the margins(e.g. low price for the best seller book and more

price for the least wanted)

24/7 customer care, thus even mid night is to delivered within 24 hours
Entry of international on line competitors in Indian market
Customers are not comfortable with online payment
Not profitable operationally
Time to build confidence among the customers
Middle management retention issues

OPPORTUNITIES:
Already working towards customer delight will obtain customer loyalty gradually
Supplier database interface with Flipkart website for JIT procurement
Mobile internet usage is increasing there by chance of increase in sales through mobile

shopping
Development of m-commerce in the e-market

Increasing internet penetration

Target social medias to reach young population

THREATS:

Small players and emerging competitor

In capabilities to manage certain costs like delivery cost, bank charges
High competition from major international online retailers
Capture of alterative market by competitors
Major players like Amazon

PORTERS FIVE FORCES ANALYSIS

Bargaining power of suppliers (low)

The readers are reducing thus suppliers are in weak position. Because of online book
reading system many of the customers have stopped buying books online. Rather they

prefer reading books online

Inventory turnover is lower, thus more inventory again Flipkart is at the upper hand

Bargain of buyers (high)

Not many buyers

Best deals online
Cash on delivery
One stop solution
Fast delivery with free shipping cost

Threat of new entries (high)

Market potential for this industry is high

Low entry barriers, but sustaining is low

Threat of substitutes (low)

Diminishing brick and mortar model

Increasing customer satisfaction

Industry rivals (medium)

Many small players (snapdeal, naaptol, )

Entry of international players like Amazon into India

FUTURE ROAD MAP OF FLIPKART

They aim at 10 times growth and eyes at $ 1 billion sales by 2015
They will look at bigger investments in their supply chain and technology
Investment will be made in large warehouses and increased automation of their
process, so that the product is not delayed
They intend to enter into various new categories and expand their current categories
as well
Everything except for the groceries and automobiles will be available on Flipkart in
future
To go further in the value chain, Flipkart is looking at associations with a larger
number of suppliers and partners, both nationally and internationally

INTRODUCTION OF INDIAN PRODUCT COMPANY HIMALAYA

Every year, 300 million Himalaya products enter the homes of consumers
around the world. With a range of over 300 healthcare and personal care
products including brands like Liv.52, Cystone, and Bonnisan, we touch the
lives of millions of customers worldwide, giving them products that help them
lead healthier, enriched lives.
Himalaya's story began way back in 1930. A curious young man riding through the forests of
Burma saw restless elephants being fed the root of a plant, Rauwolfia serpentina, which helped
pacify them. Fascinated by the plant's effect on elephants, this young man, Mr. M. Manal, the
founder of Himalaya, wanted to scientifically test the herb's properties.
With our expanding range of products and growth in international markets, Himalaya underwent
a rebranding where the entire range was brought under a single umbrella- Himalaya Herbal
Healthcare. With the present portfolio of pharmaceuticals, personal care, baby care, well-being
and animal health products, Himalaya has evolved into a 'head-to-heel' herbal wellness company.
Today, the Himalaya brand is synonymous with safe and efficacious herbal products. Starting off
operations in Dehradun way back in the 1930s, the company later spread its wings to Mumbai
and across the country. In 1975, the company set up an advanced manufacturing facility in
Makali, Bangalore, India. In 1991, the company relocated its R&D facility to Bangalore.
We operate in over 90 countries, our products are prescribed by 400,000 doctors worldwide, and
millions of customers trust us for their health and personal care needs. Himalaya Global
Holdings Ltd. (HGH) is the parent of all Himalaya subsidiaries.

The Himalaya Logo

The Himalaya brand has much in common with the mountain range from which it draws its
name. For centuries, the Himalayas have been an icon of aspiration and of man's quest to unlock
nature's secrets. They represent purity and lofty ideals.
Our logo is a visual definition of our brand identity. The leaf that forms the crossbar of the letter
H represents the company's focus on herbal healthcare. The teal green reflects our closeness to
nature, while the orange is evocative of warmth, vibrancy and our commitment to caring.
The Himalaya brand represents wellness, both internal and topical. Our range of head-to-toe
healthcare and personal care products spans the entire wellness spectrum, offering gentle, safe
and efficacious care.
Each and every product that carries our logo is backed by the high quality that is Himalaya's
hallmark. It promises good health, well-being and a prescription for good living. Our logo
symbolizes a promise delivered.

HIMALAYA MISSION:
Himalaya's mission is to make herbal wellness a part of every home. We want to be the most
trusted company in scientific herbal healthcare and most admired for our ethics, values and
commitment to sustainability.
Our mission statement reads:

Establish Himalaya as a science-based, problem-solving, head-to-heel brand, harnessed from

nature's wealth and characterized by trust and healthy lives.
Develop markets worldwide with an in-depth and long-term approach, maintaining at each step
the highest ethical standards.

WHAT WE BELIEVE IN:

Life at Himalaya is about being committed to integrity, accountability, fairness, transparency and
innovation.
Integrity: We value the trust our customers, business partners and other stakeholders have
placed in us. By being truthful, consistent and honest in everything we do, we honor this trust.
Accountability: We are accountable both internally to our team and externally to our
stakeholders. Systems and processes help us ensure accountability at every step.
Fairness: We remain firmly committed to our rules and are guided by our ethics. This helps us
make impartial decisions and treat all parties fairly.
Transparency: Being open in our dealings is integral to our work ethic. Whether it is interacting
with farmers who grow our herbs, vendors who supply us materials or customers who buy our
products, we believe that transparency helps us make partners for life.
Innovation: Bringing ideas out of the lab and into the real world is the kind of innovation we
pursue. It inspires us to discover new medicines and develop new products that go onto make life
healthier and happier for people.