PART- I
- Rahul Jain
(Director, GlobalExperts4U)
“I hear and I forget, I see and I
remember, I do and I understand”
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- Confucius
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Globalexperts4u founded in 2005, is a global
management education solutions provider company.
We provide products like SimVenture, BSG-online,
MarkStrat, Ephorus, Courses , Bizdemy online
courses, Globalexperts4u.com etc. and services like
training, consulting, content development and
mentoring which help the faculties and students to
impart business education in an effective manner.
We help improving efficiency of Corporates and
professionals through our Innovative learning tools.
Recently we have been awarded a training project
on Social entrepreneurship by UK government.
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Experience Business on your own: Using
Simulations
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Learning by Action: Inculcating Entrepreneurial
Spirit
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Workshop and Courses from one day to one
Month duration
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Organizes Orientation/ Placement/Training
events
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Organizes Business Simulation Competition
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Entrepreneurial Spirit & Scanning the
Environment
Opportunity Evaluation
Business Model
Business Plan
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Being Different
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Having Fun
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Vision creates Opportunities, Execution
Creates Magic
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Can We change the status quo ?
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Can We take the Initiative ?
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Can We leverage on our strengths ?
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Can We be creative ?
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Can We do the same thing in better manner ?
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Can We enjoy the process ?
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HR & Strategic Implications
“To be prepared is half the victory.”
- Miguel Cervantes
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Managers are not prepared to act wisely in
steering a company in a different direction
or altering its strategy until they have a
deep understanding of two especially
pertinent facets of a company’s situation:
► The industry and competitive environment
in which the company operates and the
forces acting to reshape this environment
► The company’s own market position and
competitiveness—its resources and
capabilities, its strengths and weaknesses
vis-à-vis rivals, and its windows of opportunity.
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Insightful diagnosis of a company’s external
and internal environment is a prerequisite
for managers to succeed in crafting a
strategy that is an excellent fit with the
company’s situation
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International Environment
◦ International developments affect all businesses
◦ World is a Global Economic village
◦ Integrated economies
◦ Increased susceptibility to external happenings
◦ Internationalization, Digitization, Outsourcing
◦ One has to understand the impact of these factors
◦ See more opportunities than threats.
Macro Environment
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Political Environment
◦ Stable & conducive political climate
◦ Government policies
◦ Extensive institutional framework
Technological Environment
◦ Level of technology
◦ Rate of change in technology
Socio-Cultural Environment
◦ Customs, Norms and Traditions of the society
◦ Its crucial for the operations
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Legal Environment
◦ Laws of the country
◦ Labor laws and Legal redressal system
◦ Copyright acts & Trademark infringement
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Economic Environment
◦ Standard of living
◦ Rate of employment
◦ Economic development
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Market growth rate
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Market size
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Demand variability
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Industry profitability
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Industry rivalry
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Global opportunities
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Macro-environmental factors
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SWOT Analysis
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PEST Analysis
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Porter’s five force Industry analysis
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SWOT Analysis
◦ Helps understand own skills & abilities
◦ Knowledge & experience
◦ Helps in understanding the competition
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PEST Analysis
◦ Helps understand macro environment
◦ Prepare for future opportunities and threats
Intensity of rivalry is influenced by following characteristics:
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Easy Entry
Low switching costs
Competitors are in balance
There is slow market growth
Global customers increase competition
There are high fixed costs in an industry
Markets are undifferentiated
There are high exit barriers
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There is a concentration of buyers
There are many small operators in the
supplying industry
There are alternative sources of supply
Switching costs are low
There is a threat of backward integration
Buyer purchases significant proportion of the
output
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There is a concentration of suppliers
Switching costs are high
The supplier brand is powerful
Integration forward by the supplier is
possible
Customers are fragmented and bargaining
power low
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Capital requirements of entry
Access to distribution channels
Cost advantages independent of size (eg the
“experience curve”)
Legislation or government action
Economies of scale
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Consumer switching costs are low
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Substitute product is cheaper than industry
product
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Substitute product quality is equal or
superior to industry product quality
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Substitute performance is equal or superior
to industry product performance
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Emerging submarkets
Actual and potential market and submarket
size
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Market and submarket growth
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Market and submarket profitability
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Trends and developments
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Key success factors
Market and Submarket
Analysis
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Performance Analysis - Profitability, Sales
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Shareholder value analysis
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Customer satisfaction
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Product quality & Brand associations
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New products & Product portfolio analysis
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Employee capability and performance
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Relative cost
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Exercise- SWOT of Operation Vijay
Guided by Our Broad Objectives
 Brainstorm to generate solutions
(Environmental Analysis)
 Shortlist Ideas for detailed scrutiny
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1. Develop ways of evaluating ideas (yours and
others’) (5Qs)
2. SWOT Analysis
3. Other constraints
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To
To
To
To
To
To
Increase Profits
Minimize Losses
Capture new Market
increase the Wealth
work for Philanthropy
Introduce new Design/Technology
Gucci
Chanel
DisneyLand
Cartier
Levis
Fendi
LVMH
Barbie
Oberoi
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For product features: Sony Walkman, Apple
Computer, Barbie Doll, Hotmail, Disneyland,
Harry Potter
For information collection process: Internet
based Ebay, Amazon, Google
For buying process: Amazon, Dell, widely
distributed and well displayed products
For payment process: Visa and Master Cards
For delivery process: DHL’s jumbo boxes,
couriers
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Customer-route: When customer
dissatisfaction is high; appropriate also
when investment in technology
development/application not yet made
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Product-route: Appropriate when product
or process developed and attractive
application required
◦ New Applications of existing products
/technology (Chat)
◦ Technology integration (call taxi, mobile)
◦ Industry and market changes
 Growing healthcare awareness (and concern to lengthen
life) created bottled water, HQ packaging, fitness, yoga..…
◦ When industry grows quickly, established firms
concentrate on defending what they have
 B&W TV manufacturers in India, HMV
 Neglected but fast-growing segments offer excellent
opportunities (Budget hotels/ Retailing)
◦ Demographic changes
 Managing old age creating many opportunities
 Growing higher education needs and State’s
helplessness
 Growing security concerns in offices, homes
 Interest in comfort, travel and leisure
• Lazy
• Pleasure seeking
• Comfort seeking
And
Any product/service that helps us achieve
these needs have potential
1.
2.
3.
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5.
What important customer problem can you
solve?
How are you going to do it?
How many customers are there that are willing
to buy from you?
Why can only you provide the solution?
How can you defend against others?
Ask these questions BEFORE somebody else does!
1.
What important customer problem can you
solve?
How valuable?
How painful?
Remember, you need to change
somebody’s behavior to buy your
product.
2.
How are you going to do it?
Business model:
Product
Distribution
Location
Technology/Innovation
Service
Brand
3.
How many customers are there that are willing
to buy from you?
How many customers are there? (Market
size)
How many will buy from you? (Market
share)
Who will be your first customer (besides
your Mom)?
Who will be your 100th?
4.
Why can only you provide the solution?
How are you unique? What do you provide
that nobody else can?
5.
How can you defend against others?
Location, brand, patent (or other IP), great
service, great taste, great fashion
sense….
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JAKAL: Apply 5Qs.
Previous
Experience
(knowledge,
skills)
Self
Access to
new
knowledge,
skills
Problems
(existing,
emerging)
Customer
Level of
dissatisfaction
(criticality,
discontentment)
Financial Attractiveness Strategy (source,
cost, availability, adequacy)
Technical
Attractiveness
Strategy
(Existing/new
technology and
products/services)
Solution to Customer
 Dissatisfaction
Marketing
Attractiveness
Strategy (size,
Entry,
Sustenance)
Entrepreneurial Capability Strategy (Attitude,
Skills, Knowledge pool/network – individual/group)
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Identify areas of high customer
dissatisfaction
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Assess market size
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Assess challenges in accessing customers
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Assess competitive attractiveness
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Determine technical feasibility
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Estimate financial viability
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Team quality is critical
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Assess entrepreneurial resources (ASK)
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Assess fit with personal preferences
and aspirations
What & how big are the gaps in
capabilities
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Can the gaps be filled? How? Implications
for success
Remember, EXECUTION is key to success
Iteratively balance the venture tripod (mkt,
tech, fin) and entrepreneur (your team’s) at
every stage
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Detached passion
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Prepare a dynamic Business Plan
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Lack of Objective Evaluation
No Real Insight into the Market
Inadequate Understanding of Technical
Requirements
Poor Financial Understanding
Lack of Venture Uniqueness
Ignorance of Legal Issues
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Combine
opportunities
provided
environment with your strengths
by
the
◦ In terms of knowledge, skills, experience, etc
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Analyze the industry forces
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Now, finalize the product/service
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The proposed product/service must be compatible
with:
◦ The capability
◦ Resources Available
◦ Need of society
Investment
 Rate of return
 Implementation
 Market Size
 Risk
 Uniqueness
 Expected Life
 Flexibility
 Environment considerations
 Effectiveness
Total Score on Each parameter ( 1 to 5 – Poor to Good)
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Rahul Jain (director) – Mo.-981-122-8852
 Website: www.globalexperts4u.com
 Email: rahul@yellowsequoia.com,
rahuljain@globalexperts4u.com
 Linked in profile:
http://www.linkedin.com/in/rahuljain16
Individual Assignment
Make a folder/file of Learning Journal and Assignments
Individual Assignment- Writing of Key learnings of Videos,
Readings & Class 1 in Learning Journal file (One page)
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Individual Personality exercise- Write the Vision & Mission
statement of your life ( Both professional and personal) &
Short term professional goals. ( In A4 sheet) & Passion
collage
Bold : Show it in the IInd Class to have feedback
Refer : www.finishingschool.pbworks.com,
rahulkjain16@gmail.com, 9811228852
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