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Knowledge in Strategy

Amul's Possible Strategy

Amul has 3 major concerns of a)Procurement in future b)Increasing the market in India c)Attracting the new age customers. We propose the possible strategies Amul can follow

Strategy

Tarun Kumar Ch

Strategic Management

It is regarding the Amul strategy which can be implented to further enhance the growth prospectus of Amul in India.

Strategy

Akshay Pratap Singh

Strategic Outsourcing at Bharti Airtel Limited

Case solution

Strategy

Sandeep Singh

How to define your business purpose

Purpose-driven organisations are more efficient, profitable and popular with customers. But unlike more concrete management concepts such as ‘flexible working’, many bosses have trouble defining organisational purpose and knowing how to use it.  Following a two-year project studying the UK’s top executives, the Chartered Management Institute (CMI)’s latest white paper, The What, The Why and The How of Purpose: A guide for leaders has shed light on the topic. The report was written by Charlie Ebert of Judge Business School Cambridge, Dr Victoria Hurth of the University of Plymouth, and Professor Jaideep Prabhu of Judge Business School Cambridge.  The researchers conducted 18 in-depth interviews and a roundtable discussion with leading professionals – including Marks & Spencer’s director of sustainable business, Mike Barry and PwC’s head of reputational strategy Neil Sherlock. CMI evaluated what purpose means at the organisation level and why companies are pursuing it. WHAT IS PURPOSE? Researchers defined purpose as “an organisation’s meaningful and enduring reason to exist that aligns with long-term financial performance, provides a clear context for daily decision making, and unifies and motivates relevant stakeholders.” Purpose directs teams and companies to pursue objectives with a strong intention to serve the wellbeing of others. Applicable to all types of businesses and organisations, the study proposes that purpose is at the heart of an organisation’s strategy and identity.  This recent CMI Insights report also found that two in three millennials are choosing their employer based on its sense of purpose.  Five characteristics for spotting a workable purpose are below.  FIVE CHARACTERISTICS OF PURPOSE 1. A meaningful reason to exist More than just selling a product or service, the executive interviews revealed that managers expect their companies to have a meaningful and higher objective. This typically ties in with motivating employees, customers and investors by contributing – directly or indirectly – to defeating societal, economic and environmental challenges in the UK and abroad.  The Body Shop’s success selling all-natural personal care products is underpinned by their higher purpose help 40,000 economically vulnerable people worldwide find sustainable employment and protect 10,000 hectares of forest and woodlands.  2. Purpose forms organisational identity Purpose is connected to a company’s aims, needs and desires, and helps mould the perception of the business to everyone it interacts with – from marketing to customer service. “It's the essence of who you are. Purpose is the fundamental essence of an organisation,” explained Alison Sharpe, an independent consultant on organisational trust and purpose, (formerly director of corporate affairs at PwC). Embodying its identity as a fresh and healthy organisation, fruit juice manufacturer Innocent Drinks has incorporated its sustainability purpose into its core business strategy. For example, all its cartons are made from 100% Forest Stewardship Council (FSC) certified card, and the company has incorporated at least 25% recycled content in bottles since 2003. 3. Purpose needs profits (and vice versa) One of the clearest findings showed most executives strongly believe that purpose and profitability go hand in hand. “I think it's really, really important that without profit the achievements of purpose are often completely flawed,” said Brendan McCafferty, CEO, Flood Re. Similarly, Laura Turkington, senior manager of Global Innovation and Business Development at Vodafone stated: “We can only create the social impact if it does make profit.”  4. A clear context for daily decision making Purpose provides a clear guideline on business values and objectives to all stakeholders, while allowing creative freedom for individuals to determine the best course of action in specific scenarios.  “There is a link between purpose and autonomy because if you know where you are going, it’s much easier to be able to be autonomous. I think purpose creates some real clarity and therefore some real agility,” explained John Rosling, CEO, Contexis. 5. Unifying and challenging stakeholders  There have been instances where purpose-driven organisations have made decisions that upset certain stakeholders to protect their purpose. For example, Unilever, adhering to its purpose, ended quarterly reporting to the City and actively managed away its hedge fund investors, whilst Barclays used its purpose to justify ending its tax reduction department, which may have upset some stakeholders. 

Strategy

Priyanka Agnihotri

UNCONVENTIONAL WISDOM: THE TRENDS SUCCESSFUL BUSIN

Recruiting highly efficient individuals in order to create productive teams does not work. So says entrepreneur and author Margaret Heffernan, who has adapted the ‘superflock’ theory of evolutionary biologist William Mure. In the workplace, groups consisting of ‘highly productive’ employees will show lower outputs than ‘generally productive’ groups over time. Heffernan explains that highly efficient individuals often prioritise their own success over that of the group and are more aggressive in the workplace. Instead, group productivity is best built through social capital – trust, candour and openness. NO REAL NAMES Logan Green In January, US ride-sharing app Lyft, whose CEO is Logan Green, confirmed that it was investigating employee feedback about improper use of data. Yet the insight hadn’t come via team meetings. Lyft employees are among those who use an anonymous app called Blind, where they can share their thoughts and feelings about work under pseudonyms. Users log in to their company’s message board by using their work email address (not shared) and forums must have more than 30 members as this aids anonymity. Microsoft, Amazon and Uber are among the firms with the most contributors, and employee feedback can be positive, too – Blind has been credited with encouraging creative ideas. WORK-LIFE BALANCE Tony Hsieh When it comes to unconventional wisdom, the CEO of online clothing retailer Zappos has it covered. For a start, the company encourages employees to talk about their personal lives: they are granted sessions with an on-site life coach who helps them achieve goals, such as losing weight, through a series of 30-day challenges. Tony Hsieh told a crowd at Stanford University in the US: “There are companies that focus on work-life separation or work-life balance… at Zappos we really focus on work-life integration. When people are in that environment, that’s when the passion comes out and that’s really what’s driven a lot of our growth over the years.” LEGIBLE DOCUMENTS Tim Harford It’s time to ditch your house style: fonts that are difficult to read help employees to retain ideas. Economist and author Tim Harford explains: “When you get something in these fonts, it’s ugly, difficult to read, and it attracts your attention. Then you actually start trying to understand what it says.” In psychology, the concept is known as ‘disfluency’ and leads to individuals processing information at a deeper level. This means they are more likely to recall it later on. DISCRETIONARY SICK PAY Mark Parker Discretionary sick pay schemes often serve to implicitly discourage absenteeism, but in Asian countries such as South Korea paid menstrual leave is enshrined in law. Women receive one day off per month for period pain and employees are allowed to claim additional pay for those days not taken. The move is said to increase transparency and fuel long-term productivity by allowing workers to address a health issue. Internationally, Nike – whose CEO Mark Parker joined in 2006 – added paid menstrual leave to its employer code of conduct in 2007.

Strategy

Priyanka Agnihotri