Here are the key points about strategic group analysis: - Strategic groups separate companies within the same industry that have similar business models and strategy combinations. - Companies within a strategic group compete most directly with each other. - Strategists will often display companies on a two-dimensional grid to show their relative market positions within a strategic group. - Examining strategic groups provides insights into the competitive dynamics within an industry by analyzing groups of closest competitors. - It also helps companies assess their relative strengths and weaknesses compared to industry peers in the same strategic group. - The goals of strategic group analysis depend on factors like a group's market share, growth rates, and profitability relative to other groups.

1. Unit-II

2. Some sixteen years ago Grey
Hamel & C.K. Prahalad at
London Business School wrote
the concept of “Strategic Intent”
referring to context that how
western companies operates
differently than their Japanese
counterparts.

3.  The success stories of companies such as Toyota,
Canon and Komatsu share an underlying theme:
All embraced bold ambitions beyond the limits of
existing capabilities and resources. They aimed
for global leadership and created the
requirements for it. Komatsu wanted to
outperform Caterpillar, Canon sought to beat
Xerox and Honda wanted to become an
automotive pioneer like Ford. The concept of
strategic intent holds important lessons for small
businesses aiming to grow and succeed.

4. The strategic intent notion helps
managers focus on creating new
capabilities to exploit future
opportunities. It is more internally
focused than the fit notion.
“A long term goal that captures
employees’
imaginations and clarifies criteria for
success.”

5. strategic intent envisions a
desired leadership
position and establishes
the criterion the
organization will use to
chart its progress.

6. Strategic intent
captures the
essence of
winning.
Eg: Apolo Program

7. For Coca-Cola, strategic intent has been to put a
Coke within “arm’s reach” of every consumer
in the world.

8. In battles for global leadership, one of the most
critical tasks is to lengthen the organization’s
attention span.
When Caterpillar threatened Komatsu in Japan,
for example, Komatsu responded by first
improving quality, then driving down costs,
then cultivating export markets, and then
underwriting new product development.

9. shareholder wealth vs global market
leadership
But the two goals do not have the same
motivational impact.
“beat Benz”—the rallying cry at one Japanese
auto producer? Strategic intent gives employees
the only goal that is worthy of commitment: to
unseat the best or remain the best, worldwide.

10.  How traditional strategies (European, US)
differs from modern (Japanese).

11. There are two basic and contrasting models of
strategy that are not necessarily mutually
exclusive, but have differing foci:
1. The Western model centers on balancing the
fit between current resources and
opportunities, while
2. the Asian model leverages available
resources to achieve nearly unattainable
goals.
3. Like Samsung

12. Turn strategic intent into
reality
Stay Ahead of Your
Competition

13.  Create a sense of urgency
Make stakeholders aware of the worst case
scenario. Standing on a “burning bridge.”
Komatsu, for example, budgeted on the basis of
worst-case exchange rates that overvalued the yen.
 Personalize changes
Let stakeholders see what the competition is
doing better for them (Ford inspired its factory
workers
with videos of Mazda’s most efficient plant).

14.  Tackle one challenge at a time.
Avoid organizational overload and conflicting
priorities.
 Provide employees with the skills they need
to work effectively
Training in statistical tools, problem solving,
value engineering, and team building,

15.  Establish clear milestones and review
mechanisms
To track progress, and ensure that internal
recognition and rewards reinforce desired
behaviors. The goal is to make the challenge
inescapable for everyone in the company.

16.  Build layers of advantages. The wider a
company’s portfolio of advantages, the less
risk it faces in competitive battles. Lower
cost, better scores, higher recognition
(one at a time – all at one time – but in a
strategic pattern). The Japanese color television
industry illustrates this layering process.

17.  By 1967, Japan had become the largest producer of black-
and-white television sets. By 1970, it was closing the gap
in color televisions. Japanese manufacturers used their
competitive advantage—at that time, primarily, low labor
costs—to build a base in the private-label business, then
moved quickly to establish world-scale plants. This
investment gave them additional layers of advantage—
quality and reliability—as well as further cost reductions
from process improvements. At the same time, they
recognized that these cost-based advantages were
vulnerable to changes in labor costs, process and product
technology, exchange rates, and trade policy. So
throughout the 1970s, they also invested heavily in
building channels and brands, thus creating another layer
of advantage: a global franchise.

18.  Stake out undefended territory (finding loose
bricks)Honda identified inexpensive
motorcycles as an undefended market share.
They used that small entry point to get into
the market to dominate the car market.

19.  ·Changing the terms of engagement —
refuse to accept the leader’s definition of the
industry and segments; take advantage of the fact
that successful companies are often slow to
change
 ·Compete through collaboration — my enemy’s
enemy is my friend; take advantage of the
development efforts of potential rivals

20. Process of Envisioning
Core ideology
• Core purpose
• Core values Well conceived vision
Envisioned future
• Long term goal
• Vivid description

21.  Vision - big picture idea of what you want to
achieve.
 Mission - general statement of how you will
achieve your vision.
 Core Values - how you will behave during the
process.

22.  Goals - general statements of mileposts you
need to meet to achieve your vision.
 Objectives - specific, time-sensitive
statements for achieving your goals
 Strategies/Action Plans - specific
implementation plans of how you will achieve
your objectives and goals.

23.  Ag Ventures Alliance (AgVA) is a company that
starts value-added businesses. Because of its
unique nature, it is important that AgVA create a
meaningful mission statement to convey its
purpose to it leaders, staff and members.
 Vision - A vision statement is a mental picture of
what you want to accomplish or achieve. For
example, you may want to develop a profitable
winery or a successful organic dairy business.
AgVA’s Vision- A vibrant rural economy driven
by value-added agriculture.

24.  Mission –
AgVA’s Mission - To create and facilitate the
development of value-added agricultural
businesses.

25.  Core Values –
 Provide economically sound business
opportunities for our members.
 Practice high ethical business standards.
 Respect and protect the environment.
 Produce high quality products that are safe
for consumers.
 Meet the changing needs and desires of
consumers.

28. A company's mission statement is essentially its
statement of purpose. It serves as a guide for all of
the company's decision-making. Shareholders,
leaders and employees are generally the target of
the mission. It should help workers within the
organization know what decisions and tasks best
align with the mission of the company. A mission
statement offers insight into what company leaders
view as the primary purpose for being in business.
Some companies have profit-motivated missions,
while others make customers a focal point. Other
firms use a mission to point out more altruistic
intentions that ultimately lead to profits.

29. “ A formal written document that attempts to
capture an organization's unique and enduring
purpose (defines reason the organization exists
and provides basis for developing
organizational goals, planning and resource
allocation)”

30.  It should help workers within the
organization know what decisions and tasks
best align with the mission of the company.
 A mission statement offers insight into what
company leaders view as the primary purpose
for being in business.
 Other firms use a mission to point out more
altruistic intentions that ultimately lead to
profits.

31.  Profile of today; current products, services,
customers and philosophy; from the head;
statement of distinctiveness; description of
essence of firm's purpose

32. Reflect purpose of firm through:
 primary customers and markets,
 principle services or products,
 geographic focus, core technology focus,
philosophy, economic value focus, firm self-
concept, firm desired image, and concern for
employees

33. 1) Fuzzy, non-specific language
2) Interchangeable goals or visions that can be
adopted by any company if only a few words are
changed
3) lack of true, prolonged leadership support -
in action more than in words
4) poor implementation

34.  Wal-Mart: "To give ordinary folk the chance
to buy the same thing as rich people."
 3M: "To solve unsolved problems
innovatively."
 Walt Disney: "To make people happy."

35. When creating a mission statement there are a few
simple guidelines that can be followed.
They must address three questions?
 What are the opportunities or needs the
organization addresses?
 What does the organization do to address those
needs? and
 What principles and values guide the
organization?

36.  Must be feasible- realistic and achievable.
 Precise- Manufacturing bicycle Vs Mobility
business
 Clear & Motivating -
 Distinctive – from Hamara Bajaj to desh ke
Dhadkan
 How to achieve

37.  Is our mission statement focused on satisfying
customer needs rather than being focused on the
product?
 Does our mission statement tell who our
customers are?
 Does our mission statement explain what
customer needs our company is trying to satisfy?
 Does our mission statement explain how our
company will serve its customers?

38.  Does our mission statement fit the current
market environment?
 Is our mission statement based on our core
competencies? (A core competency is a
company strength.)
 Is our mission statement motivating and does
it inspire employee commitment?
 Is our mission statement realistic?

39.  Is our mission statement specific, short,
sharply focused and memorable.
 Is our mission statement clear and easily
understood?
 Does our mission statement say what we
want to be remembered for?

40.  A goal is a broad primary outcome.
 A strategy is the approach you take to
achieve a goal.
 An objective is a measurable step you take to
achieve a strategy.
 A tactic is a tool you use in pursuing an
objective associated with a strategy.

41.  Goal: Make our Core PC microprocessors a
category leader in sales revenue by year X.
 Strategy: Persuade buyers that our Core
processors are the best on the market by
associating with large, well-established PC
manufacturers.

42.  Objective: Retain 70 percent or more of the
active worldwide PC microprocessor market,
according to Passmark’s CPU benchmark
report.
 Tactic: Through creative that underlies our
messaging, leverage hardware partner brand
awareness to include key messages about the
Intel Inside program.

43.  Suitable: Does it fit with the vision and
mission?
 Acceptable: Does it fit with the values of the
company and the employees? •
Understandable: Is it stated simply and easy
to understand?
 Flexible: Can it be adapted and changed as
needed?

44. “Objectives are specific,
quantifiable, time-sensitive
statements of what is going to
be achieved and when it will be
achieved. They are milestones
along the path of achieving your
goals.

45.  Measurable: What will happen and when?
 Suitable: Does it fit as a measurement for
achieving the goal?
 Feasible: Is it possible to achieve?
 Commitment: Are people committed to
achieving the objective?
 Ownership: Are the people responsible for
achieving the objective included in the
objective-setting process?

47.  Growth Strategy: -Expansion through current
operations
 Concentration:- Expansion within an existing
business area
 Diversification:- Expansion occurs by
entering new business areas
 Vertical Integration:- Expansion by acquiring
existing suppliers or distributors

48.  Retrenchment:-
*Changes operations to correct weaknesses
* Liquidation: An extreme form of
retrenchment wherein the business closes and sells
off its assets
 Restructuring:- Reduces the scale or mix of
operations
 Downsizing:- Decreases the size of operations
 Divestiture:- Sells off part of the organization to
focus on core businesses

49. The SEA Directive applies to a wide range of
public plans and programs (e.g. on land use,
transport, energy, waste, agriculture, etc). The
SEA Directive does not refer to policies.
The SEA Directive is in force since 2001 and
should have been transposed by July 2004.

50. Plans and programmes in the sense of the SEA
Directive must be prepared or adopted by an
authority (at national, regional or local level)
and be required by legislative, regulatory or
administrative provisions.

51.  Are prepared for agriculture, forestry,
fisheries, energy, industry, transport, waste/
water management, telecommunications,
tourism, town & country planning or land use
and which set the framework for future
development consent of projects listed in the
EIA Directive.
OR
 Have been determined to require an
assessment under the Habitats Directive.

52.  SWOT Analysis:- Identifies Organization’s
Strengths, Weaknesses, Opportunities, and
Threats
 Core Competency:- A special strength that
gives an organization a competitive
advantage

54.  Market standing
 Innovation
 Productivity
 Resource levels
 Profitability
 Manager performance and development
 Worker performance and attitude
 Social responsibility

55.  Profitability
 Growth
 Market share
 Social responsibility
 Employee welfare
 Product Quality
 Service

56.  R&D
 Diversification
 Efficiency
 Financial stability
 Resource conservation
 Mgt & labor development`45`

57. PCS raise following questions:-
 Should we compete on price or other factors
than price?
 Should we compete for Market share or for
segment?
Hence proter has given a generic competitive
strategies based on lower price or
differentiation for all size and type of firm.

58.  Lower cost strategy: ability of a firm to design,
produce and market a comparable product more
efficiently than its competitors:
Example: Southwest Airlines
The airline industry has typically been an industry where
profits are hard to come by without charging high ticket
prices. Southwest Airlines challenged this concept by
marketing itself as a cost leader. Southwest attempts to
offer the lowest prices possible by being more efficient
than traditional airlines. They minimize the time that
their planes spend on the tarmac in order to keep them
flying and to keep profits up. They also offer little in the
way of additional thrills to customers, but pass the cost
savings on to them.

59.  Differentiation Strategy:- ability to provide
unique and special value to customer. You
can do this by adding these features
1. Practical Differences; Mercedes-Benz
2. Eye-Catching Luxury: The Royal Caribbean
cruise line has pursued this strategy with its
ship Voyager of the Seas. The company
added a huge four-story shopping mall and
the largest slot machines in the world to the
ship,

60. 3. Marketing to a Demographic: A hair salon
that markets itself to a young and trendy urban
crowd also serves a fairly narrow niche market.
Because less competition exists in these niches,
these companies can position themselves as the
best ones in their niche.
4. Building Overall Image:

61. Still Porter proposed that companies needs to
determine its competitive advantage by
knowing its competitive scope.

63.  Aims at broad mas market requires “
aggressive construction of efficient scale
facilities”
 Attention to layout details helps the store
shape shopper's attitude.
 Ambience is most power full weapon to
attract customers.
 They are likely to earn above average returns
on investement6.

64.  Product has unique preposition to attract
customers.
 Can be in terms of design and services.
 It generates higher profits than low-cost
leadership strategies.

65.  Focus on particular buyer group or geography
 7/11, Vishal Mega Mart

66.  Morgan Motor Car,

68. A management concept which separates
companies within the same industry with similar
business models and or a similar strategy
combination. A strategic group can be from any
type of business and depending on the
industry, are defined within a dimensional
construct. Strategists will often display the
market position of each competing company on
a two dimensional grid.

69. The examination of businesses that function within
the same strategic group is called strategic group
analysis.
This type of analysis is often discussed in
conjunction with market focus. Market focus splits
the consumer population into market segments
that share characteristics such as education level,
income, age and gender. Companies research the
general preferences of market segments and then
use those preferences to gear products and services
toward specific market segments that are served by
strategic groups.

70. The goals of strategic group analysis vary
depending on several strategic group
characteristics, including the size of the market, the
diversity of products offered, the geographical
proximity of the competing companies, and where
the products are sold.
For example, a company that serves consumers
who value low prices might conduct an analysis to
determine where competitors’ products fall on the
low-price-versus-quality scale. The results of this
group analysis might help the company determine
how to price products and set quality control.