Case Method

STRATEGIC REVIEW AND EVALUATION

Case Method of Study Meaning and Kinds of cases INTRODUCTION The case method of teaching has a long and storied history in business and law schools, and now has become the primary method of teaching in many medical schools. Until recently, case studies had rarely been used in secondary and post-secondary science teaching. It is likely that the textbook approach to science education has been an impediment to the adoption of this method in the basic sciences. Textbooks take complex scientific principles and break them down into conceptual units (chapters). These units are then dealt with one-at-a-time in an attempt to simplify the principles for students. Although the rationale for this approach is “student friendly,” it is not realistic. The case study method attempts to take a wide variety of conceptual units and put them back where they belong… in a story. WHAT IS A CASE? Case Method is a pedagogy tool ( the science of teaching ) of learning management. Case method is extensively used in the teaching and learning of management around the world today in educational and training programs. It emphasis how to understand the management and business policy , to know and understand variety of situations, business complexity, analysis them , and to work out practical , workable solutions. With the help of case method student can develops insights into how to view business in its entirely , to appreciate the management style of functioning, and think various ways of solving the problem. A case may be relates to single or numbers of events of business over a period of time. A case length depend on variety of information relates to history of business, external and internal environment/ factors of the organization which are key or important issues of the entity and help in understand and solving the problem.

The Case method has been used by instructor. Who derived the case from other institute or magazines and only focus on the issue highlighted in the case. As such some time no other conclusion draw from the same case. An instructor need to teach major aspect of the case to cover all critical and important aspects of the case in better understanding.

The Case Method of Teaching Science

COMMON THEMES Cases incorporate a variety of important themes that are useful learning tools and help engage students. Some cases incorporate several themes, which helps enhance the integrative nature of this method of teaching. Some of the themes employed in case teaching include: • • • • • • • •

Learning through role-playing Ethics and ethical scenarios Dilemmas and decision making Risk/Benefit analysis Design challenges Information management Controversy and Debate Team learning and cooperative skill building

TYPES OF CASES There are more than a dozen different types of cases. Experienced case teachers have developed ways of understanding which type of case to employ for a specific topic. This skill, along with other case development and delivery skills are often presented as workshops by the National Center for Case Study Teaching in Science. Although the scope of this paper does not allow for a description of all of the case types, a few of the most common types include: The Directed Method In a directed case, students are presented with a scenario or story and then are asked to answer a series of questions relating to the story. The questions are developed to direct the students through specific course content and toward a specific knowledge endpoint. These cases often include an open-ended question to spur class discussion and debate. Decision Case In a decision case, students are presented with a scenario or story in which a person (or several people) are faced with an important decision. Delivery of this type of case often involves students taking on the role of the decision makers.

These cases are designed so that the decision makers must develop informed decisions using content from the course. Progressive Disclosure In a progressive disclosure case, students are presented with information and then are asked to answer questions, make decisions, or develop conclusions based on the information given. In the next stage, more information is given to add to the pre-existing information. Students must then continue their analysis or reevaluate their previous responses. This type of case is very useful for mimicking the scientific discovery process where new information is used to build on previous observations. CASE DELIVERY The most important issue facing teachers that decide to adopt the case method is determining the most effective way to deliver the case to a classroom of students. Wellconstructed cases often include teaching notes that describe how the case can be delivered in a traditional classroom setting. These notes will include information on a variety of topics such as: • Appropriate classes and levels of education for delivery • Time commitment • Objectives and content coverage • Answer keys • References Cases and the case method can be used to fit a variety of instructional models. Although there is a wide variety of teaching styles, a large majority of cases are designed to fit into four very common delivery mechanisms: • Within the lecture format • As an individual assignment • As a small group discussion • As a large group (class) discussion The Case method in Strategic Management Education in India For student following body have been providing case on payment basis or otherwise through their journals mainly : Chartered Financial Analyst, ICFAI Reader, Indian Journal of Training and Development , Indian Management and Research, Business India, Business today, Business world and financial express , Economics times , business Standards , business Line etc. Case Analysis Two approach mainly adopted for case analysis

a) Individual Presentation- means oral and written b) Group Discussion ( Brain storming session)

Preparation for case Analysis and discussion • • • • • • • • • •

Read the case for familiarity Again read the case for grasping the facts Evaluate the situation describe in the case Attempt to gain understanding of the objective, , policies, problem, cause of the problem, issue and the role of key individual Prepare SWOT/ PEST and strategic advantages Think for Strategic alternative and suggest best, support your logic with facts and other case/ ideology Propose a comprehensive plan for strategic implementation ( check all feasibility and availability of the sources. Evaluate your Proposal- Qualitative and quantitative approach with assumptions Suggest contingency plans Prepare note for oral and written presentation.

Written analysis of cases Suggestive guidelines a) Simple and cover all major issues b) Adopt a nice style / font of writing , use labels, colors, highlight / bold head and sub head topic, c) Apply analytical presentation techniques, flow chart, chart, diagram , d) Use and provide business definition, source of information, e) Provide value chain analysis, industry analysis, competitive analysis, f) Summarise the case , specify assumptions, provide evidence and benchmark for evaluation. Oral Presentation a) b) c) d) e)

Plan well in advance, If written analysis then do not mistake in reading Well pronunciation May use projector, boards, PPT Rehears your presentations and be ready for handling questions

The role of Instructor The main role of the instructors are as under : a) b) c) d) e) f) g) h) i) j)

Selection of the case in according to the focus of the study time being To stimulate and steer the class or training group to share insights How to observe and share observation Help in developing thoughts about cases Help in preparation of case and presentation Help in written analysis or oral presentation Help in how to participate in group discussion Raise question to understand understanding of the student Updating the issues Ensure the design of the case

The Instructor's Role As the case discussion develops the instructor's role is to provide leadership and management. The instructor is not simply a source of knowledge or judgement. The instructor must carefully follow the discussion and provide various services to the class. The instructor keeps the discussion orderly. The instructor must ensure involvement of the entire class in the discussion. Questions or comments are interjected which lead to advancement in thinking and which clarify the relevance of the discussion up to that point. They must somehow expose the inter-relationships and patterns of the various contributions. The instructor must be constantly aware of timing to ensure that the discussion period is usefully employed. The question of timing is most critical and least appreciated in discussion leadership. If the discussion is not moving fast enough proper use will not be made of the time available. If it moves too quickly a part of the class may not understand what is going on or the treatment may be superficial. The instructor must exercise control but not too rigidly. The instructor must sense and keep out of the way when the class is on the verge of making discoveries new to themselves or to the students. Unpredictable developments distinguish real learning; the instructor must not stifle them or thereby stifle the learning. To provide this tim- ing the instructor must focus on the ebb and flow of the discussion rather than simply on the subject matter of the case.

The relationship between the student and the instructor, and between the students must be different than in the traditional forms of instruction. Students are no longer led or helped by their instructor they are left to stand on their own. The instructor no longer becomes the source of the "right" answer, they do not judge whether the student's answer is 'correct'. Instructor establishes themselves as a colleague and by their behavior proves it. They participates as an equal where the students are conditioned to expect them to assert their superiority. Thus because of the preconditioning due to the traditional student-instructor relationship the instructor must be careful when expressing opinions. They must emphasize that theirs is just another opinion and may not be correct for the situation at hand. In the early stages this confuses the students but eventually they will recognize that this participation is all they really need. To achieve their objectives with the case method the instructor gives up the accustomed role of expert. This is difficult since it means they must move from a position of virtual unassailable security to one much more insecure. Experience has shown that students do not abuse the situation, they recognize that this position is taken for their benefit. The instructor works from this more vulnerable position to build a cooperative informal relationship between themselves and the students. In spite of this the instructor is responsible for stimulating the discussion towards the objective of the course without seeming to force it. They keep the discussion free yet directs it, a difficult but not impossible task. During the discussion the instructor must operate at three levels as a participant in the case discussion, as a guide to direct the discussion toward the objectives of the course, and as an evaluator of the students, the discussion, and the class situation. Tools of Discussion Leadership The instructor uses primarily four tools for the logical development of the case which, when used creatively and flexibly, promotes discussion without relieving the student of the responsibility of doing the work. They may (1) ask questions, (2) restate and summarize what has been said, (3) give their own opinion, and (4) provide additional expertise. The questions used to promote and guide case discussions are not the kind used in the ordinary teaching situation. Well prepared questions by the instructor designed to get at the core of the case problem serve to limit thinking, to box in the discussion, and to defeat the purpose of the case method. Questions which call attention to an error or short coming on the part of the student inhibit participation. Questions designed to expose the amount of preparation will not generate useful discussion. Questions designed to show the instructor's superiority usually have to be answered by the instructor. The most useful questions are those phrased on the spot in response to the immediate situation. Depending on where the discussion is at, the questions can be to open new avenues of discussion without setting its course (What has happened here?),to clarify what has been said (Could you explain that further?), or to invite elaboration (Would you

like to add to that?). Technical questions can be used to sort fact from opinion, to distinguish what is from what may be, to identify preconceptions or generalities (Is that always true? Does this apply in this case? Can you be more specific?) Questions can be used to promote discussion between members of the class (Do you agree with that statement? Is that what you would do?) As the discussion develops the question can be more pointed and directive. Students can be asked to consider new and different approaches. Questions can be directed towards the assumptions and physical laws on which the case is founded, (Can we model that?). Questions can be used to uncover relationships and interconnections between points brought out by different students or by different cases (How do these relate to one another? Is this consistent with what we said last time?). Phrasing should be used to force the students to come up with ideas and conclusions from their own resources. But care must be taken that the phrasing does not indicate the answer. When discussion has gone beyond the student's capacity to deal with the case more directive questions can be asked (What would you do now?). Students dislike making decisions or propose action in the face of inadequate information. The situation is unfamiliar and frustrating. At this point the questions are to force them to make recommendations and to take responsibility for them. If students refuse to make decisions on the basis of the information available they can be asked to outline what information they need and how to go about getting it. They can then be asked to assess if what they asked for is reasonable. As long as the student is kept wrestling with the problem the questions are productive. Questions are not used to fish for specific material or to implant ideas. Even if the problems in the case are not resolved or the answers not those expected by the instructor, education of the students has taken place. Finally, questions can be overused. A free flowing discussion is preferred therefore questions should be infrequent. The questions should come casually as a natural response to what has been said. They should be used subtly and inconspicuously. The discussion should not degenerate to a series of questions by the instructor with responses from the students. It should be re- membered that the prime purpose is to keep the discussion flowing along its apparently natural course. Restatement is the means by which the instructor marks, clarifies, and makes usable the discussion that has taken place. Free flowing discussions are fast moving, disordered, and touch many points. The instructor can slow down and clarify the discussion by occasionally rephrasing in their own words what has been said, or summarize the discussion to that point. Alternately a student can be asked to make the restatement or summary. This allows the less aggressive student to participate in the discussion. The purpose of the restatement is to collect the various inputs together and to clarify them by rephrasing them. Further discussion can then proceed from a common understanding. With the restatement the students have an opportunity to examine, correct, and extend the new version of their remarks.

The instructor must take care not to distort the student's comments, nor should they anticipate what the student meant. Similarly the restatement should not suggest approval or disapproval of the contents. The instructor may point out new facets - but in such a way that the student does not feel their meaning has been distorted - to correct or clarify the statements when the instructor feels they may be distorted or misinterpreted. Restatements to assist understanding must be used sparingly or students may become dependent on it. They should be used only where careful listening to what has been said indicates that re- statement can be useful. Restatement should never be used as a device for accenting important points. Restatement and summary are opportunities to recognize the contributions of individuals. Acknowledgements will indicate that ideas originate from different parts of the class and that pro- gress is dependent on everyone's participation. In some cases the instructor can add to the discussion and help achieve course objectives by expressing their own opinions and conclusions. This is a rather heavy handed approach. Students could come to anticipate the instructor's presentation as the correct interpretation and thus nullify the usefulness of their own participation. The case approach works best with a minimum direct injection of the instructor's opinion. Ideally the instructor's opinions and conclusions are introduced only when the students have wrestled with a problem and have come to a conclusion, but express dissatisfaction with it. Then they may turn to the instructor and request an opinion. If the instructor gives their version too early, they risk terminating the discussion and disagreement. If they lecture at length they will exceed the student's ability to absorb and relate the material to the case. Once the proper atmosphere and relationships have been established, and there is a free exchange of ideas, the instructor may more readily express an opinion without fear of it being treated as inviolable. They should circumvent this possibility by conscious effort. They must always specify which of the remarks are simply opinions, which are facts from the case, and which are physical laws. The instructor's opinions or conclusions should not be used to correct a student solution. Their statements should be introduced to the common pool of knowledge from which the group will choose the most satisfactory. Finally, where special technical information is required, the instructor can supplement the discussion with short "mini-lectures" designed to give the students technical information they cannot be expected to have or which is not readily accessible to them. As with instructors' opinions, the lectures should be used sparingly and only after the class has wrestled with the problem and expressed a need for the material. Mini-lectures should not be used to refresh the students memory of material covered elsewhere in the curriculum, and with which they should be familiar. Thus the case discussion is guided by the instructor by carefully weaving together questions, restatements, opinions, and the occasional lecture. These are used delicately

and sparingly. The instructor's most useful tool is silence. If the discussion is proceeding in a useful and orderly manner the instructor need say nothing. It must always be remembered that it is the student's participation that is sought not the instructor's. Class Environment It is not difficult to create the necessary classroom environment; it is mostly one of attitude. If left to themselves students will sort out the structure for group activity and somehow regulate participation so that discussion will progress toward the greatest usefulness to the participants. K. R. Andrews suggests that the instructor's most difficult job is to avoid the "seven pedagogical sins of condescension, sarcasm, personal crossexamination, discourtesy, self-approval, self-consciousness and talkativeness." While preserving the classroom environment the instructor must guide the discussion toward the objectives of the course and take care that the discussion serves as a new and useful learning experience for the student and for the instructor. The guidance must be flexible and responsive so that the students reach their own conclusions not the instructor's. The instructor must be continually analyzing the developing classroom situation. They must look ahead to anticipate fruitful new areas of discussion. Because of new students inputs each case development will be somewhat different. Because of this it is often advantageous to use different cases from year to year so that the instructor does not begin to anticipate previously arrived at conclusions and their participation does not lose its freshness and spontaneity. Un-distorted communication and mutual understanding are only possible when adverse criticism is not explicitly or implicitly involved. Self-consciousness, emulation, and anxieties of all sorts must be put aside by the student and instructor. The instructor must suspend judgement on the student's opinions or if they cannot he must avoid communicating those judgements. The instructor's first concern must be to nurture an atmosphere of informal friendliness that will permit students to work their way to competence. The instructor's comments or attitudes must not stifle the free flow of ideas or discussion. With practice the students and instructor can become a productive self-motivated group. The instructor should listen to all views with demonstrated intentness for the purpose of understanding, not for criticising its relevance and importance. By questions, the instructor must show interest and help the students make their point or clarify their thinking. The instructor's approval or disapproval must not limit the discussion or insist upon an identical formal approach to every case. If initially uncommitted interest is shown in everything said the class will recognize that as individuals they can voice an incomplete idea or an unconventional approach without fear of disapproval. Once the right level of rapport has been established, the instructor can then become more directive and critical, and still preserve the necessary relationships for free exchange.

The first few case sessions from the instructors point of view should be primarily be used for establishing the proper environment. The case material should only be considered as the medium for doing so. As confidence and mutual respect develops, the emphasis can be turned toward the course objectives. Special Problems It will often occur that students will give up and ask for answers to the case problems. The instructor should, as far as possible, return the responsibility for answers to the students. They should insist upon having the students ideas first. Students should evaluate their own responses, determine why they are dissatisfied, and what should be done about it. Only then should the instructor's answers be given and even then in a miserly fash- ion. Questions should only give clues, opinions should be given only to be evaluated. Sometimes it is useful to provide partially incorrect or incomplete answers, especially if in correcting them the students are lead to the correct solution. Sometimes the case discussions collapse and the instructor cannot get anywhere with the case. The class efforts may be listless and lack enthusiasm. If the proper relationship has developed between the class and the instructor, the focus of the discussion can be turned from the problem in the case to the problems with the discussion. With this new focus the students may find they consider the case irrelevant; they may discover that they are not happy with their participation, or their roles in the discussion, or they may find that they don't understand the objectives of the case or the course. Discussions around these difficulties are as useful as discussions of the case problems. Even in these discussions the instructor must retain the role of discussion leader; they must help the students discover their difficulties and help them find their own way out. It is normal in any case discussion that a small portion of the class will carry the bulk of the discussion. It is the responsibility of the instructor to draw out the other members of the class. By this means they can discover whether a student is not participating because they cannot contribute, because they are too shy, or because they are not aggressive enough to express their opinion. This forced participation also assures that every- one is involved even when not participating directly in the discussion since they may be called on to contribute at any time. Role playing is a useful device for sustaining interest or providing a change of pace. The case is used as a background for a discussion or meeting to resolve some critical issue. Students are asked to participate as principals in the case. The instructor also takes on a role usually that of a mediator. Students quickly identify with the roles they are asked to play and discussion is lively and informative. Advance notice of the specific roles individuals are expected to play ensures proper participation. Physical Arrangements

The physical location of the instructor has considerable bearing on how the discussion takes place. If the instructor stands in front of the class on a podium they will find that almost the entire discussion will be directed there with the class waiting for instructor's response. If the instructor moves down into the class or away from the usual focus of the classroom the students are forced to face one another and discussion will flow more easily between class members. Once a lively discussion has been kindled the instructor may beneficially withdraw from the attention of the class. Most classrooms designed for lectures are poorly arranged for case discussion. If possible the seating should be rearranged into a "U" or a circle. This permits the instructor to interact more directly with the students from the centre or preferably from the outer periphery. Alternately with smaller classes the students can be seated around a conference table. In this case the instructor should find and occupy a low priority seat. In case discussions, the blackboard is used as a writing or sketch pad for the group. When a students finds difficulty in expressing themselves verbally, they should be invited to use the blackboard. This puts the student at the focus of the class. From there a number of students can be enticed to the blackboard to present new ideas or modify existing ones. When the discussion requires listing of ideas, data, conclusions, etc, a student should be asked to do so at the blackboard permitting the instructor to move off "centre stage". Thus the blackboard serves not only as a medium for presenting and recording ideas but as a tool for focusing attention away from the instructor and to the problem at hand. Preparation for Case Discussion Preparation for a case discussion class is often more demanding than preparation for a lecture. Firstly, the instructor must become thoroughly familiar with the case and with any auxiliary information. The instructor must anticipate where the case discussion may lead and be prepared to deal with all possible scenarios. If the case is in several parts, they must be familiar with where the case is going so that in developing the discussion the class should at least touch on the direction in which the case actually develops. Finally they must be prepared to throw all of these preparations overboard when the actual discussion opens unanticipated but more useful and exciting directions. One device for case preparation is to make a list of 20 to 30 questions that would be fruitful avenues to pursue during the discussion. The questions are not used directly but their preparation serves two purposes. Firstly, in formulating meaningful questions one is forced to think more deeply about the issues in the case. Secondly, the questions form a rough guide which anticipates the directions that the discussion should take. When the discussion bogs down or an issue becomes exhausted the list is available as a source of new issues to be considered. Conclusions

The role of the instructor in case discussion we see is different from that of the lecturer. They do not teach. The instructor does not expose, uncover or reveal new material or insights for the students. Rather they prepares the environment and manages the learning situation so that the students learn by exercising those talents they have for discovering new insights for themselves, for making decisions, and for operating as a self reliant engineer. The instructor does this by staying out of the way as much as possible and by establishing situations where the student must do these things.

Strategic Management Audit Auditing is a watchdog function in the organization to ensure no loop in the system like manipulation, fraud. It help in ensuring proper internal control and check in the organization. Audit is used to evaluate soundness of the organization systems, compliance of various statutory provision under the laws of country,. Its helps in exercising control, find out lacunae in the systems for better organization ,correction and improvement in the performance. Type of audit a) CSA b) Environmental audit

The role of the "business environment" in shaping strategic thinking and decisionmaking. The external environment in which a business operates can create opportunities which a business can exploit, as well as threats which could damage a business. However, to be in a position to exploit opportunities or respond to threats, a business needs to have the right resources and capabilities in place. An important part of business strategy is concerned with ensuring that these resources and competencies are understood and evaluated - a process that is often known as a "Strategic Audit".

The process of conducting a strategic audit can be summarised into the following stages: (1) Resource Audit: The resource audit identifies the resources available to a business. Some of these can be owned (e.g. plant and machinery, trademarks, retail outlets) whereas other resources can be obtained through partnerships, joint ventures or simply supplier arrangements with other businesses. (2) Value Chain Analysis: Value Chain Analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. Influential work by Michael Porter suggested that the activities of a business could be grouped under two headings: (1) Primary Activities - those that are directly concerned with creating and delivering a product (e.g. component assembly); and (2) Support Activities, which whilst they are not directly involved in production, may increase effectiveness or efficiency (e.g. human resource management). It is rare for a business to undertake all primary and support activities. Value Chain Analysis is one way of identifying which activities are best undertaken by a business and which are best provided by others ("outsourced"). (3) Core Competence Analysis: Core competencies are those capabilities that are critical to a business achieving competitive advantage. The starting point for analysing core competencies is recognising that competition between businesses is as much a race for competence mastery as it is for market position and market power. Senior management cannot focus on all activities of a business and the competencies required to undertake them. So the goal is for management to focus attention on competencies that really affect competitive advantage. (4) Performance Analysis The resource audit, value chain analysis and core competence analysis help to define the strategic capabilities of a business. After completing such analysis, questions that can be asked that evaluate the overall performance of the business. These questions include: - How have the resources deployed in the business changed over time; this is "historical analysis" - How do the resources and capabilities of the business compare with others in the industry - "industry norm analysis" - How do the resources and capabilities of the business compare with "best-in-class" wherever that is to be found- "benchmarking" - How has the financial performance of the business changed over time and how does it compare with key competitors and the industry as a whole? - "ratio analysis"

(5) Portfolio Analysis: Portfolio Analysis analyses the overall balance of the strategic business units of a business. Most large businesses have operations in more than one market segment, and often in different geographical markets. Larger, diversified groups often have several divisions (each containing many business units) operating in quite distinct industries. An important objective of a strategic audit is to ensure that the business portfolio is strong and that business units requiring investment and management attention are highlighted. This is important - a business should always consider which markets are most attractive and which business units have the potential to achieve advantage in the most attractive markets. Traditionally, two analytical models have been widely used to undertake portfolio analysis: - The Boston Consulting Group Portfolio Matrix (the "Boston Box"); - The McKinsey/General Electric Growth Share Matrix (6) SWOT Analysis: SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is an important tool for auditing the overall strategic position of a business and its environment.

Definition: SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats SWOT analysis is an important tool for auditing the overall strategic position of a business and its environment. Once key strategic issues have been identified, they feed into business objectives, particularly marketing objectives. SWOT analysis can be used in conjunction with other tools for audit and analysis, such as PEST analysis and Porter's Five-Forces analysis. It is also a very popular tool with business and marketing students because it is quick and easy to learn. The Key Distinction - Internal and External Issues Strengths and weaknesses are Internal factors. For example, a strength could be your specialist marketing expertise. A weakness could be the lack of a new product.

Opportunities and threats are external factors. For example, an opportunity could be a developing distribution channel such as the Internet, or changing consumer lifestyles that potentially increase demand for a company's products. A threat could be a new competitor in an important existing market or a technological change that makes existing products potentially obsolete. it is worth pointing out that SWOT analysis can be very subjective - two people rarely come-up with the same version of a SWOT analysis even when given the same information about the same business and its environment. Accordingly, SWOT analysis is best used as a guide and not a prescription. Adding and weighting criteria to each factor increases the validity of the analysis. Areas to Consider Some of the key areas to consider when identifying and evaluating Strengths, Weaknesses, Opportunities and Threats are listed in the example SWOT analysis below: Strength

Weakness

Technological skills

Absence of important skills

Leading brands

Weak brand

Distribution channel

Poor channel of Distribution

Production quality

Unreliable product / services

Customer Loyalty and relationship

Low Customer retentions

Scale

Sub-Scale

Dynamic Management Opportunity

Poor Management Threats

Technical advances

Technical advances

Liberalization of global markets

Closing of global markets

Changing customer taste

Changing customer taste

Change in government policies

Change in government policies

Change in age group

Change in age group

New Distribution channels.

New Distribution channels

Strategy and Corporate Evolution in Indian Context Need to study government policies and business environment pre 1991 and post 1991 Planning commission report Constituents of India Monetary Policies Labour laws, labour reforms Corporate laws and Corporate Goverannce SEBI, FEMA FDI Policies of India Pattern and Trade Mark WTO Consumer Protection requirement Policies of global authorities like World Bank, IMF , UNO etc. Pre 1991 An era of licenseraj, kotaraj, unliberalise, closely held companies, businessman/entrepreneurial, poor communication system and technology

family

Government is mainly involved in know how to ?, business tie up in basic core industries like steel, power, Construction, illiteracy, limited millionaire who controlled economy, low Private and Public partnership, different tax strature, diversify business, failure in expansion and diversification and low use of technology Post 1991 Liberalization, Private and public partnership, transparency, Young and educated entrepreneur, Advance technology, communications, focus on competancies, core business Trend of core competencies, competition , merger and acquisition , focus on market leadership etc. Broad Strategy 1. Good quality and low price 2. Production innovation, development of new product line 3. Combination of cost leadership and diversification 4. Niche Marketing 5. Superior quality and Premium Price 6. Manpower development and training 7. R & D , 8. Merger , Acquisition, tie up market, technology, 9. increase resources sharing 10. external alliances and internal expansion 11. opening of 4 major business continental blocks. 12. change in the structure of the business , 13. choose more professionalism 14. Modernization 15. use of media and advertisement channel 16. concept of brand equity, brand image and cultural focus, Focus and further need like CSR, health, education, environment, training and development to focus long term business opportunities

INTRODUCTION TO WRITING A BUSINESS PLAN Introduction • • •

Planning is a process leading to the formulation of a plan A plan is the outcome of the planning process The planning process (thinking, researching, consulting, discussing) is at least as important as the final written plan

Business plans A business plan is: • •

A report showing the plans of the business, often used to attract finance from investors and creditors A document that is designed to provide information about a new business or venture to persuade financial backer to invest in a business

The business plan describes out the market opportunities the business intends to exploit, how it will do so and what resources are required Business plans & raising finance A business plan is essential to: • •

Persuade people to invest in an enterprise Convince creditors about the credit worthiness of the enterprise

To persuade banks and others to lend or invest money it is necessary to: • • •

Demonstrate the lender/investor has a good chance of being repaid or getting a good return on their investment Build confidence about the firm and owners’ capabilities Demonstrate that there is a good market for the product or service

Internal uses of a business plan • • • • • • • • • •

Clarify objectives Provide a sense of direction, purpose and urgency Plan all aspects and ensure that nothing is overlooked Provide a checklist to help run and control the business Monitor progress and success Improve performance Improve motivation and communication Allocate responsibility Better control and co-ordination and greater consistency Failing to plan makes an organization reactive, vulnerable to threats and closed to opportunities

Key planning questions • • • • •

Where are we now? How did we get here? Where would we like to be? How do we get there? Are we on course?

Stages in business planning (1) Situational analysis • •

Analyses the external environment Analyses the internal environment

(2) Objectives • •

Define the business and mission Set corporate objectives

(3) Strategy •

Formulate strategies

(4) Tactics •

Make tactical plans

(5) Actions •

Implement the plan

(6) Control •

Build in procedures for monitoring and controlling

Characteristics of effective business plans Business plans are more effective if… • • • • •

They are carefully researched They contain detailed market analysis They are used as a reference point for decisions Actual performance is compared with objectives and objectives are regularly updated They evolve over time to ensure that growth targets are realistic and challenging

Ten common mistakes in producing a business plan 1. Failing to plan in the first place 2. Shrugging off values and vision - these are there to remind the entrepreneur where he/she wants to go 3. Second guessing the customer - ignore your customer at your peril 4. Underestimating the competition 5. Ignoring the firms own strengths and weaknesses 6. Mistaking a budget for a plan 7. Shying away from reasonable risk 8. Allowing one person to dominate the plan 9. Being afraid to change 10. Forgetting to motivate and reward