SCENARIO Planning

Scenario Planning is all about describing what is possible rather than just predicting future. Most of the forecasting techniques fail to predict significant changes in the firm’s external environment when information is limited or not available or the change is unexpected and disturbing. In such a situation, scenario planning is used as a tool to deal major, uncertain events in the firm’s environment. The result of Scenario Analysis is a group of distinct futures, which are plausible. The challenge is how to deal with each of the scenario.

Scenario Planning Process:

1.Specify the scope of the planning and time frame.
2.For the present situation, develop a clear understanding that will serve as the common exit point for each of the scenarios.
3.Identify the elements, which can act as driving forces.
4.Identify the most important driver by rating them on their range of variation and impact on the firm. Multiplying the factors will give the significance of each factor. It could be done in a scale of 1 to 10.
5.To analyze the interaction between the variables, scenario matrix can be made using the most important variables and their possible values. Each cell in the matrix represents a single scenario. Alternatively, factors can be taken in pairs to generate several two-dimensional matrices.
6.Quantify the impact of each scenario on the firm and formulate strategies.

The benefits of Scenario Planning is the managers are forced to break out their standard world view and decision makers are better able to recognize a scenario in its early stages and there is a better understanding of the source of disagreements if any.

Talk about BUSINESS

“The business of business is Business”. Though the phrase is not new, but it truly indicates the real meaning of Business. Owning and running a business can be rewarding only if we know the nuances of Business and understand the Business terms, rules and what it takes to be a successful businessman. Well, being a Management student, I would like to use the word “Entrepreneur” rather than a “Businessman”.

PECS of Business:

Profit: No matter what business you do, ultimate aim is to make profits.
Expenses: When you run a business, you have certain expenses, which is unavoidable.
Cost of Goods: Whether it’s a product or service you sell, there is a cost to everything.
Sales: And, if you want your business to run, sales are of utter importance.

And then when we want to be an entrepreneur, we need to answer certain questions:

1.Do I understand the financial basics of Business: Assets, Liabilities, Accounts Payable, Accounts Receivable, Cash Flow, and Net Worth.
2.Who all will be involved in my business and is there a sync and proper flow of information among all the entities.
3.Do I possess all the technical skills and soft skills to conduct the business?
4.Do I have the necessary funds to have business and if not who are the potential sources?
5.What shall I sell? Why should I sell? Whom Should I sell? Where should I sell?? How should I sell?
6.How to differentiate myself from the herd? Why will people come to me?
7.Within how many years, I will be able to achieve the breakeven point?
8.Who are my stakeholders?
9.How to achieve success?
10.Do I have all the qualities to become a successful businessman?


Now, the question arises, how best you can answer the above questions. There are some ways to find the politically correct answers:
1.Do a SWOT analysis. Measure yourself on parameters like knowledge, leadership skills, communication, creativity etc.
2.How best you understand others needs?
3.Are you specific or general? If specific, then on what situations and if general, then on what situations.
4.What kind of people interests you the most? The people who share same qualities with you or the exact opposite people interest you the most.
5.Consider yourself as a product and try to sell yourself. Plan a strategy on what things you would do to sell yourself to people.
6.Consider others as Customers and try to ask relevant questions about yourself. Feedback is one of the most important things in Business.

BRAND EQUITY QUIZ 2007:SCHEDULE

Brand Equity Quiz (Regional Finals)
Mar 9, 2007 Ahmedabad
Mar 10, 2007 Pune
Mar 13, 2007 Kolkata
Mar 15, 2007 Delhi
Mar 20, 2007 Bangalore
Mar 21, 2007 Chennai
Mar 22, 2007 Hyderabad
Mar 26, 2007 Kochi
Mar 29, 2007 Mumbai
Mar 31, 2007 Indore


Brand Equity Quiz (National Final)
Apr 29, 2007 Mumbai

Watch out to know more about this happening event....

Strategy DYNAMICS

The approach to strategy is just not making profits but how to use the profits for the future and build performance through time. Strategic analysis is about answering the business performance for the past few years, the performance that the business seeks and the alteration that could be done for the betterment of future. The challenge is to analyze the performance of the resources (customers, employees, infrastructure) and how can they be building in the future. Sometimes, there is an overallocation of resources, which makes it redundant. The performance measurement criteria are not properly defined. Sometimes, it is difficult for the organizations to correlate the customer base with the performance measures. Whether the existing customers come back at regular levels, how frequent the new customers are acquired and how many leave. These questions should be sorted first to develop a clear strategy for the organization. Even, competition in marketplace matters a lot. This enables to identify the key areas of operation and dig the high level opportunities to boost the performance of the organization and damage the rivals. Strategizing is easy with practical and facts. This gives a more confident view of the future.

Business ANALYSIS

Business Analysis is a key area of every Business. Business analysis is done to improve efficiency, reduce wastage and complete projects on time. The crux of Business Analysis is documentation of right requirements. Many a times, the project is delayed due to the mismatch of understanding between the clients and the company. The purpose is to develop Business Process improvement (BPI) as a key strategy and management tool. Business Analysis ensures that the requirements of business clients are captured and documented correctly before a solution is developed and implemented. Business Analysis differs from organization to organization. Generally, the key processes involved in Business Analysis is developing an understanding of how present and future business needs will impact solution, identifying sources of requirements, developing a “Requirements Management Plan”, identifying and Documenting all business, technical, product and process requirements, helping to define acceptance criteria for completion of solution, preparing Business Requirement Document (BRD), Use Case Document (UCD), Use Case Diagram. For a product based company, it could be more of preparing market collaterals, proposal writing, processing Request for Proposals, performing market competition research, computing ROI etc. In IT company, Business Analysis stresses on assisting with the Business Case, gathering of requirements, reviewing of test, cases, processing change requests, tracing the requirements in Implementation phase and managing the project scope.

BLUE OCEAN Strategy

Blue Ocean Strategy provides a holistic approach to make competition irrelevant. It highlights six principles that every company can use to formulate and execute blue ocean strategies. The six principles shows how to reconstruct market boundaries, focus on the big picture, reach beyond existing demand, get the strategic sequence right, overcome organizational hurdles, and build execution into strategy. Ocean refers to the market and Blue Ocean refers to the uncontested markets, which provides little or no competition. The main idea behind Blue Ocean is to create a product or service, which does not exist, and can attract customers. An essential concept is that the innovation (in product, service, or delivery) must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market. A million dollar page or gmail is a good example to Blue Ocean Strategy. The blue oceans denote an environment where products are not yet well-defined, competitors are not structured and the market is relatively unknown. Companies that sail in the blue oceans are those adept at beating the competition by focusing on developing compelling value innovations that create uncontested market space.

Brand Equity Quiz 2007

Finally,Brand Equity Quiz is back with a bang.The Brand Equity Quiz is an advertising and marketing quiz targeted at corporates all over the country. This knowledge war, one of its own kind, is the largest quiz Corporate India has ever seen, and in terms of participation, is one of the world’s biggest.Corporate honchos churning their grey cells!!



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Sneak peek into STRATEGIC PLANNING

Strategic planning is a mix of financial and non-financial goals. Some focus on financial targets from the beginning and assess what other efforts will be needed to meet them. Others start with market analyses or a desire for innovation and get to financial targets as outputs of the process. The former could be explained as mapping out the financial performance that would be expected over the next five years and comparing this against baseline projections and examining the gaps. The later could be explained as focusing first on markets, then the distinctive value proposition in these markets/services, then whether the firm has the right initiatives to deliver this value proposition. Either way, non-financial goals generally support the financial ones. A company's planning process actively involves employees whose potential to excel is high (regardless of their current responsibilities), along with the most senior executives and, usually, a strategy team. Any strategy has an array of measurable quantitative factors like achievement of cost/revenue match or unit cost objectives. In some cases they involve the achievement of milestones during the course of a year. Important strategic decisions are made by a small group of senior managers, including the CEO. Company's board of directors focuses on a few roles in planning strategy. Boards are seen to be most active in challenging strategy during the development process and in approving the final strategy. Implementation of strategic planning is crucial to an organization’s success. Integration of strategic-planning group and its human-resources group is one of the key factors to successful implementation. In most of the cases, they are slightly integrated or not at all. Companies don't particularly focus their strategic planning on new opportunities for growth. To be on the top, strategic decision makers should spend more time on business development. By structuring the strategic-planning process to focus on what the company wishes to achieve and by improving the informal side of developing strategy, companies can be better prepared to make real-time strategies in an uncertain world.

Courtesy: Mc Kinsey

Shopping for VALUE

Retailing is the next big thing to happen in India. While foreign players like Walmart and Auchan are planning strategies to win a big consumer chunk, domestic players like Reliance have also played their part in attracting consumers. The consumers are more informed about the products available in the market. They just do not buy products but also add value to their shopping experience. With easy reach to multiple channels offering the same brands at cheaper prices, consumers have taken wise decisions on their purchases. While shopping, the consumers look for the one who offer value the most. Even if the consumers have everything filled inside their bags, still they prefer to go for something if they find discounts. Sometimes, window-shopping turns out to be an expensive shopping. This “cherry-picking” behavior is becoming increasingly prevalent, with a growing number of sales coming from promotional items. What should be the strategy to retain your loyal and attract the new customers? Just offering a low price or discount does not guarantee the retention of loyal customers. The retailers need to plan a price strategy for the products to attract customers. To improve their price image among shoppers, most value retailers follow a five-pronged pricing strategy:
·Offer attractive prices on image-enhancing brands and items
·Create opening price points in each category, sometimes through private-label brands
·Appeal to shoppers’ “treasure hunting” mindset by establishing a highly visible discount price on a unique or limited item
·Offer large sizes and value packs
·Communicate an everyday low price to establish price credibility

Apart from price, which adds value to the shopping experience, there are factors like location, ambience and service. The thing, which matters, is the communication that exists between the retailers and consumers. They should clearly make their consumer understand of their moves. To win consumers, certain things needs to be taken care of:

1.A complete observation on the products, which sells the most.
2.The kind of products, which sells, small or large. For example, a customer goes for a big shampoo bottle or a sachet.
3.Where to place the products. May be perfumes and accessories at the entrance can attract customers to enter the shop.
4.How to make the customers buy even if they come for window-shopping.

Source: AT Kearney

LEADERSHIP Qualities,a MUST

This is a post in continuation to the post on Sourav Ganguly. I would have posted it earlier but the good thing is the post will appear ahead of the post on Ganguly. If there is a person who can do justification to the word LEADER, then he is undoubtedly Sourav. Rather than saying about Leadership, I’ll say about Sourav in person, as Sourav and Leadership are synonymous. Rather, this post is more of a Case Study on Sourav.

1.If there is one thing, which differentiates him from the rest of the team, it’s his “AGGRESSIVENESS”. Being aggressive is something which every leader should have it in him. It means you should not be aggressive on your team members, but aggressive on the way you do your work.
2.“NEVER-SAY-DIE” attitude is something, which Sourav personifies. Despite critics, he made a comeback, a royal comeback. There were lot of articles written on him on his attitude and poor performance and end of his career, but, finally, he is back.
3.PERFORMER: A leader should always be a performer. Being able to perform needs to determination and hard work. A leader should perform before he asks others to set an example.
4.DIGNITY: A leader should be a person of dignity. There will be times when everyone will point a finger at you or raise eyebrows, this is time to ignore everything and just concentrate on your performance.

Once a LEADER, always a LEADER.