Page 184 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Strategic Management

Notes order, nor do they give any impending warnings. They surface suddenly leaving deep scars on
the faces of managers—if they are unprepared. To be on the safe side, strategists always keep
contingency strategies ready. Such contingency strategies are formulated in advance to take care
of unknown events and unexpected challengers. As rightly summarised by Peter Drucker,
successful managers do not wait for future. They make the future through their proactive planning
and advanced preparation. They introduce original action by removing present difficulties,
anticipate future problems, change the goals to suit internal and external changes, experiment
with creative ideas and take initiative, attempt to shape the future and create a more desirable
environment.
The contingencies could come in the form of a labour strike, a downturn in the economy or an
overnight change in government policy. Once such scenarios are identified managers could
come out with alternative strategies for the firm. Firms using this kind of strategy identify
certain trigger points to alert management that a contingency strategy should be pressed into
service. When alternative plans are put in place, mid-course corrections could be carried out in
a smooth way.

Caselet TVS-Suzuki: The Third Coming

hen the technology partner, Suzuki parted ways with TVS Motors Ltd, the TVS
Group had to put all its expansion plans in the back burner and overhaul its
Wproduct portfolio in the two-wheelers segment. Strict emission norms, too,
have made its life somewhat uneasy, forcing the company to abandon the two-stroke
technology in favour of the now popular four-stroke technology in motor cycle (VICTOR,
Fiero). Though TVS Motors is a late entrant in the 4-stroke motor cycle segment it has been
able to recover lost ground in recent years because the group had enough R&D muscle to
develop the 4-stroke technology and is purely a power-bike manufacturer. The success of
TVS Victor, India’s first fully indigenous four-stroke motorcycle, is a shining example of
proactive planning and years of hard mental preparation to take care of any eventuality.
The important lesson to be learnt from such unexpected events is, quite well known in
corporate circles, but worth repeating here: Never rest on past laurels.

Source: Business Today, July 6, 2001; September 10 2001; December 6, 2000

9.6 Summary

Strategic choice is the decision to select from among the alternatives considered, the
strategy which will best meet the enterprise objectives. This decision-making process
consists of four distinct steps:
Focusing on a few alternatives.
Considering the selection factors.

Evaluating the alternatives.
Making the actual choice.
Strategic analysis framework consists of three stages: Input stage, Matching stage and
Decision stage

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