Mid Term Review I (Strategy Management)

~~~~~~~~~~~~~DISCLAIMER~~~~~~~~~~~~

THIS CHAIN OF POSTS CONTAINS POTENTIALLY HARMFUL MATERIAL AS THE POSTS ARE HIGHLY ACADEMIC IN NATURE AND MAY IMPART SERIOUS INJURY TO THE INTELLECTUAL HEALTH OF THE READERS. THE WRITER WILL NOT BE RESPONSIBLE FOR AN SUCH CASUALTIES.
So mid term exams are here again. I will try to pen down my learnings from the various subjects till now. The first one in line is SM as it is the first in the exam schedule. As is clear from the course name this one is about learning strategy as being formulated and practiced by corporates. The course structure has been designed around a number of case studies. The discussions basically build around the case facts and to identify strategic elements from the way a particular organizations reacted or pro acted in various periods during a period of time.
Although it is always a good exercise to extract learnings out of "success stories"; which is mostly the content of all the cases but I feel it would be handy to look at the "grand failures".sfs

Learnings from cases:

Arvind Mills

This case highlighted one of the most important aspect of strategic planning-"settings objectives with specific time frames". The company realized the need for structuring its business strategy in wake of unfavorable environment for the industry and set time based objectives.

The approach taken by the company can be understood through the Abell's model of business. The company first extended its product line (customer functions) and ventured into Denim manufacturing realizing its favorable resource capabilities. Then it gradually extended its target market (customer groups). The company also identified and incorporated new technology for manufacturing to improve quality.



Walmart
The case highlighted the operational aspects of strategy particular to retail sector. The company's CA was cost leadership. It employed numerous measures to ensure highly competitve pricing and yet maintained relatively high margins. Moving along the value chain firstly it enjoyed high bargaining power with suppliers mainly because of rationalization and development of supplier network. Then it created high operational efficiency through standardization of merchandise, computerized inventory control, efficient distribution system. It ensured employee participation/contribution to business motive by pegging bonuses with profits and also discouraged luxurious spending by top management. The other end of value chain was taken care through ploys like local pricing and higher display area in stores.