Bacchalog, let’s see Tows matrix, right, a question of four marks, now tows is exactly opposite of swat, now this matrix is developed by prof. Heinz Weichrich, he is from Germany but teaching in United Sates, Now he use the same inputs, strengths, weaknesses, opportunities, and threats, the only thing is that, he done, reorganize them and integrated them into strategic planning right. He used all the elements on X axis and Y axis format, so here we see on X axis we have all the internal elements and on Y axis we have all external elements right here you can read external element is opportunity, threat and internal, organizational strength and organizational weaknesses, now let us understand strategic options that we have.

Bacchalog, SWOT analysis strength and weaknesses within the organization, opportunities and threats outside the organization. Now here we have functional level strategy, it is directed at improving the effectiveness of the operations within an organization, such manufacturing, marketing, material management, customer service, etc and business level strategy here different positioning strategies can be used in different industry settings, example cost leadership, differentiation, etc. Corporate level strategy, it is directed gaining a competitive advantage and maximizing the long run profitability of the organization. Global strategy addressing how to expand operations outside the home country to grow and prosper in a world where competitiveness advantage is determined as a global level. Now lets see the strengths, company strengths, inherent and completive strength. Weaknesses inherent limitations right all your constraints and deficiencies. Opportunities, favorable situations in the environment right to strengthen position and in threat all your unfavorable situation which causes risk or damage to a position. So bacchalog, this becomes a SWOT. Now importance of SWOT, it provides logical framework. It presents a comparative account. It guides the strategist in strategic identification or it helps in identifying a strategy properly. It helps to craft proper business model. Now SWOT analysis, first we gone see strength potentials, strengths, the valuable skills and experience, strong financial conditions.

Baachalog, let’s see in this module, how we find out the industries competiveness and the behavior right, issues of industry and competitive analysis, now the dominant economic features of the industry and factors to consider industry’s economic features are market size, how many customers you gone supply right, what is your market size we need to know, what is the competitor market size, distribution channel of different, different companies say for an example Amul or may be Parle biscuits, how do they manufacture it, how they supply, how many agents, how many middle men, how they make the product available in the shop and finally to the consumers, thirdly capital requirement, what is the amount required and how easy is to enter in the industry and how easy is to exit in the industry an example insurance in India is not that easy right to enter into and exit in from, number four whether industries profitable or not profitable as for an example vada pav right now these people sell the vada pav 12 rs or 15 rs where the manufacturing cost is just 5 or 6 rs right, so you understand the profitability, so that is what we need to know before entering into any of the business, number of rivals present, buyers and their relative sizes, nature and strength of competition right, where in porters five forces model is useful in understanding the competition and yaa useful tool also they suggest, identification of companies in strong or weak position, strategic group mapping, study the market position of rival companies, strategic group mapping that is called as what Airtel is doing what Idea is doing right all that has to be studied by the Indian companies like Reliance and TATA right, what their competitors are upto. Now Issues of industry and Competitive Analysis, triggers of change or the driving forces, dominant forces can be called as now this thing comes for 2 marks, internet ecommerce opportunities and threats

Baccha log in this module we are going to see different, different right framework of strategic analysis external analysis right kids the consumer analysis here in segments now what you understand by segments Tata people right are making wrist watches for youth Fastrack right and for little bit aged people and those are not in that much position to spend more on that wrist watch they have something called as Titan brand and those who are able to spend more on the wrist watch for them they have brought Dails right so they are able to create segments according to the pocket size according to the lights wants of the customer similarly modulation consumer need to be motivated to purchased by sometime and unmet needs hearing unmet needs “Matlab” unmet needs all something related to your maid servants at your place right so we need to take care of such things too “ki”how can we make arrangements or it’s an opportunity to work on how the maids will be made available further competitor analysis we need to check identify strategic groups performance image objectives the strategies suppose in case we continue the same example of Titan watches what HMT is doing what Rolex, Rado are doing so all that analysis should be done by Titan watches right what culture what cost structure strengths weaknesses all this about competitors is must and under internal analysis performance analysis

Now kids let’s see situation analysis now once company has decided the mission goals right and the vision we need to analyze the situation before developing any given management strategy now it is important to conduct some analysis on that particular situation which is prevailing. This should form an essential part of any business plan and should be serviced over time and time now following factors to be considered when conducting situation analysis let’s see number 1 product situation now this analysis to be done here is on knowing one’s current product and relate that to customers’ needs and demands where it stands are we able to satisfy them are we making the same what they want right it is also an analysis of companies core product and augmented product right kids so that’s your 1^st point product situation we need to check we need to analyze the product whatever we are dealing into are we able to make customers happy or not next competitive situation analysis of the company’s main competitors right say for an example if we are Reliance Telecom then we need to know what Tata Docomo is doing what is Vodafone doing what idea right and what other networks are doing i.e who are they and what are they up to and what are their competitive advantages “must hai jaruri hai ye sab kuch”

Distribution situation

Hi kids lets see next chapter, business analysis, now in this we gone see after we have decided mission, after we decided goals and a vision now company needs to check strategy, decide over strategy now strategy evolves over a period of time, its not that immediately, so there are different forces that drive limit strategy and that must be balanced in any strategic decision. Strategy of a business at particular point of time is a result of small decisions taken over an extended period of time right so they might have decided something long time a ago and sometime back again they might have changed that decision, so strategy depends on what decision has been taken. Balance, the managers always have to balance a strategic analysis involves a workable balance between diverse and conflicting considerations. A manager working on strategic decision has to be balance opportunities.