PPM Strategy Final

8/8/2019 PPM Strategy Final

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Presented By:

Group No. 2



Chanakya·s Arthashastra

Treating with Equality(forgiveness)

Enticement (bribing)

Punishment or War

Sowing Dissension(divide and rule)



Strategy:The direction and scope of an organisation over the long-term:

which achieves advantage through its configuration of resourceswithin a challenging environment, to meet the needs of marketsand stakeholder.

Direction- long term

Markets; scope

Advantage- better than others

Resources (skills, assets, finance,relationships, technical competence,facilities).

Environment- external factors

Stakeholders- expectations.



Strategy at Different Levels of aBusiness

Corporate Strategy - overall purposeand scope of the business to meetstakeholder expectations.

Business Unit Strategy - how a business

competes successfully in a particularmarket( choice of products, meetingneeds of customers, gaining advantageover competitors, exploiting or creatingnew opportunities etc.)

Operational Strategy - how each part ofthe business is organised to deliver thecorporate and business-unit levelstrategic direction (resources, processes,

people etc).



Competitive Strategy

Porter competitive strategy is ´aboutbeing different.µ

It means deliberately choosing adifferent set of activities to deliver aunique mix of value.

A combination of the ends (goals) for

which the firm is striving and the means(policies) by which it is seeking to getthere.



Formulation of competitive stragtegy

Strategic Analysis-analysing thestrength of businesses' position andimportant external factors influencing.( PEST Analysis, Five Forces analysis,

SWOT analysis, etc.)Strategic Choice- understanding thenature of stakeholder expectations,identifying strategic options, and then

evaluating and selecting strategicoptions.

Strategy Implementation- a strategyhas been analysed and selected, the taskis then to translate it into organisationalaction.



Porter·s Five Forces:



Retail Sector

Distribution of finished products to thepublic.

General retailers (managed byindividuals/families), departmental stores,specialty stores and discount stores.

Major retail giants include Wal-Mart,Target, Home Depot and Tesco.

Worldwide retail sales are estimated at $7trillion (USD).

In India retail market is worth $300 billion.



Successful Strategies in Retail Sector:

Wal-Mart:

Cost Advantage Strategy-lower prices than anywhere elsecutting-edge technology and a push to make suppliers sellmerchandise at cheaper and cheaper prices.

IT advantage- Radio frequency identification technology(RFID)- radio frequencies to transmit data stored on smalltags attached to pallets or individual products.

Strong Distribution, Inventory Management System

Wal-Mart's Indian joint venture Bharti-Wal-Mart.

Wal-Mart's Crossover Strategy.

Convenient hours; free parking.



Mc Donald·s:

Selling consistent, simple, low-priced American food.

Stores number more than 30,000 in more than 100 countries.

Real Estate- Lease a plot of land and the building for eachrestaurant, then sublease to the franchisee who would run therestaurant.

Dedicated supply chain in India and sources 99% of itsproducts from within the country- the farm level.

MFY (Made for You) food preparation platform ² food safety,hygiene and quality standards.



Café Coffee Day:

Retail chain: CCD has 620 cafes at present and it hasambitious plans to launch more than 900 cafes by the endof the current financial year.

Not Just About Coffee: customers come to rejuvenatethemselves and be themselves.

Supply Chain: Procure coffee beans from banglore base-quality assurance n guaranteed supply across country.

Cost effective: Food items available are obtained fromlocal suppliers.

Brand Strength.



Pantaloons:

Cost In House manufacturing- Reduction in costFleet of owned vehicles.

QualityHigh performance designExcellent customer service- free home delivery,

apparels (foreign Brands), quality zones.Time

Fast DeliveryCentral Warehouse System, Factory Outlets, lessintermediaries in supply.

FlexibilitySales executives were empowered to run theirrespective departments like small business units·.Managing change- meeting the shifting consumertastes and preferences.



Bata:

Retail Chain: more than 1100 outlets, thecompany has opened 70 all new internationallook outlets across India in the last 10 months.

Product range: Re-invented stylish andcomfortable footwear.

Superior Quality

Four-tiered retail format: Flagship Stores,smart and trendy City Stores & Super Storesand traditional Family Stores.



Conclusion:

A competitive advantage exists when the firm is able todeliver the same benefits as competitors but at a lower cost(cost advantage), or deliver benefits that exceed those ofcompeting products (differentiation advantage). Thus, acompetitive advantage enables the firm to create superiorvalue for its customers and superior profits for itself.

The most important strategy is the Winning Strategy.

PPM Strategy Final

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