GROUP 8

Group Members
Jayshree D. 7420
Dipti G. 7425
Rachna G. 7426
Advait K. 7454
Sonal K. 7455
Pramil M. 7456
Pallavi M. 7459
Rajeshwari M. 7462
WHAT IS STRATEGY?
Levels of Strategies
Definition of SBU:
According to Sharplin-
“An SBU is any part of the business
organisation which is treated separately for
strategic management purpose”.
Factors Determining Competitive
Strategy

 Industry Structure
 Positioning of a firm
 Variables of positioning of a firm :
 Competitive Advantage

 Competitive Scope
 Generic Business Strategy
MICHAEL PORTER’S GENERIC BUSINESS STRATEGIES :
Types of SBU-Level Strategies
 Cost Leadership Strategy

For example :
1.RELIANCE COMMUNICATIONS
 Differentiation Strategy

For example :
1.FROOTI - PARLE AGRO
 Focus Strategy

For Example :
1.PUSTAK MAHAL’S RAPIDEX SERIES OF BOOKS
 Business strategies for different
industry conditions
 Industries pass through 4 stages in their life
cycle
 Embryonic stage
 Growth stage
 Maturity stage
 Decline stage
 Embryonic Stage

Industry conditions
 Capital need high
 Returns low
 Demand low
Strategies
 Develop competencies
 Build market share
 Growth Stage

Industry conditions
 Capital need decrease
 Returns high
 Demand establishes
 Market share increases
Strategies
 Low-cost or differentiation
 Maturity Stage
Industry conditions
 Capital decrease significantly
 Returns low and stabilises
 Demand is stable
 Market share is steady
Strategies
 All three type of strategies can be used
 Decline Stage
Industry conditions
 Capital cease
 Returns decline
 Demand shrinks
 Market share decreases
Strategies
 Cost leadership (low cost)
Functional Level Strategies

It deals with a relatively restricted plan

designed to achieved objectives in a
specific functional area, allocation of
resources among different operations
within that functional area…………
Strategy Operation Levels
 Vertical Fit
 Defining functional strategies in terms of
their capability to contribute to creating
strategic advantage for the organisation
 Strategic __ management is focussing on
the alignment of __ management within an
organisation with its business & corporate
strategies to gain strategic advantage.
 Marketing, Finance, Operations, Human
Resource, Information Management
 Horizontal Fit

 There has to be an integration of all

operational activities undertaken to provide a
product or service to a customer.
 Operational implementation
 Value chain activities
 Primary activities
 support activities
 Needs For Functional Plans &
Policies
1. Decisions are implemented by all the parts of
an organisation.
2. Basis available for controlling activities
3. Time spent in decision making is reduced as
plans lay down clearly what is to be done
4. Situations are handled in a consistent manner
5. Co-ordination across the different functions
takes place where necessary.
 Financial Plans and Policies

 Sources of Funds
 Usage of Funds
 Management of Funds
Marketing Plans and Policies

 Product
 Pricing
 Place
 Promotion
 Operations Plans & Policies

 Production System
 Operations Planning and Control
 Research and Development
 Personnel Plans and Policies

 Personnel system
 Organizational and Employee
Characteristics
 Industrial Relations
 Information management plans
and policies
Information
capability
Development
INTEGRATION OF THE FUNCTIONAL
PLANS AND POLICIES.

Financial
plans &
Marketing policies
Operational
plans & plans &
policies
Integration policies
of Plans
and Policies
Personnel Information
plans & management
policies plans &
policies
ITC Ltd
 ITC PROFILE
 Company name : ITC India Limited
 Type : Public (BSE:ITC)
 Founded : August 24, 191
Radha Bazar Lane,Kolkata, India.
 Headquarters : Virginia House,
Kolkata,India
 Industry : Tobacco, Foods, Hotels
 Products : Cigarettes, Packaged Food, Hotels,
Apparel
 Revenue : $4.75 billion USD (2006)
 Employees : 20,000 (2006)
 Website : http: / /www.itcportal.com
 Chairman of ITC Ltd

Yogesh Chander Deveshwar

Executive Directors:-
K Vaidyanath
K N Grant
Vision
Sustain ITC's position as one of India's most
valuable corporations through world class
performance, creating growing value for the
Indian economy and the Company’s
stakeholders.

Mission
To enhance the wealth generating capability of
the enterprise in a globalising environment,
delivering superior and sustainable stakeholder
value.
 ITC’s strategic objectives
 Enterprises Strengthen the international
competitiveness of enterprises

 Trade support institutions Develop the

capacity of trade service providers to
support businesses.

  Policymakers Support policymakers in

integrating the business sector into the
global economy
 
ITC Products
 SWOT Analysis Of ITC Ltd.
Strengths
Experience of transporting & distributing
Tobacco products
Advantage of high coverage

 Weaknesses
Original name in branding
80% of its funds come from its original
business
 SWOT Analysis Of ITC Ltd.
 Opportunities
 E- chaupal
 Per capita consumption is low for
personal care products

 Threats
 Competition
 Decision between concentration &
diversification