 Now that you have practiced writing down in for yourself your strategy or goals Etc. Let's look at a couple of case studies and I have purposely chosen very large companies very old companies and Very successful companies not because I want to endorse any of these companies But so that you can understand the power of what I'm talking about the first case studies about Nestle It's about a hundred and sixty year old company It turns around which means it has a sales or of about hundred and ten billion US dollars Which is about eight lakh crore rupees and it makes profits of about ten and a half billion dollars Which is about ninety thousand crores of profits and it employs about two hundred seventy five thousand Two lakh seventy five thousand employees around the world. So it's a very large successful old company Some of the products just so if you may not know the name in the Indian market are as follows Maggie Nascar for coffee KitKat munch, etc So with all these brands and the people hundreds of thousands of people over 160 years How do you function as one company? How do you become one company and what ties the company together? Are the different elements that we talked about and how does the management? How does the CEO? plan the business and Report the business and set objectives and set strategies. Let's have a look at it What I've done is I've taken as a case study the 2018 annual global report presented by the global CEO. It's in the website You can see it for yourself in the link which is provided below So this is the full year results as presented by the global CEO in 2018 for that year and I'm using this just as a case study. It's in the public domain Typically, I would encourage you so start looking at annual reports of companies because when you look at annual reports of companies be Tata Godrej reliance Adani or Any of the companies globally that you are comfortable with Google or Microsoft or Apple start looking at the annual reports And we'll start seeing how companies set goals set strategies Define the purpose many years back probably how do they create a culture and You'll see many of these this kind of pages So I'm also coaching you into how to look at annual reports. So there's a disclaimer, which means that the There are some forward-looking statements, which is certain goals are being discussed in this presentation So there's a disclaimer. Let's look at what the CEO is saying or has said in 2018 to the open world, which means all the investor community and it came in the newspaper, etc And it's on the website. So this is how the CEO is sharing the results You can read it yourself, but you can see that he's talking about a model and value Creation model. How does Nestle create value for its stakeholders? It talks about organic growth Which means for the same products in the same countries, etc without buying new businesses? It talks about increasing margins It talks about portfolio development, which means the Collection of brands a portfolio is a collection of brands that they're operating in or categories that they're operating in and it talks about earnings per share growth and It talks about cash So if you look back on the goals that I have shared the 360 degree goals You will see here a live example of a very large global company talking about its 360 degree goals Of course, there will be many many many other goals, but these are the highlights and you can see The financial results in some more details remember I talked about financials results a business is in business because he wants to make money unless it's a charitable organization and You will see here the financial results being declared by that company I had talked about strategy now you get to the action and you see how the global CEO is saying Here was my strategy. This is what I said I will do This is what I had committed to the company had committed to and this is what you have actually done and You could see that there are five key steps So having looked at the financial results Let's look at the strategies or the action that they had Given to the market or shared with the market or the investors and how they're reporting progress So you can see on the screen five different highlights of Their strategy what they wanted to do in terms of action And You'll see you can read it on the screen and can go to the website and look it up more And you'll see that after one year how they have progressed Versus their strategy now they're forward-progressing and you will say This is how the company will progress from where they are in 2018 which means on the left blue box and They're saying here are the four or five things that I will do and you can read it yourself in 2018-19 if you look at it, they will fix the base business They'll manage the portfolio of brands and They will focus on high growth strategies and because of all of these they'll deliver results on the right side So here again, you see a global CEO talking about Goals and how to achieve those goals and typically Companies will share a bit more details about their strategy So fixing base business is a strategy, what will they do here? So you can see in the slide the CEO is outlining. What is the strategy for fixing the base business? Developing the portfolio of brands because Nestle is an FMCG company consumer goods company It's operates in categories and brands and it says they will develop certain Categories certain brands in their portfolio They'll develop some they'll review some if they're not profitable. They may sell it and they may buy some new brands So the portfolio of brands and categories change Innovation I had mentioned that a core strategy for most companies can be innovation not only for the tech companies like Digital company or a hardware company, but even for consumer goods company you can innovate on new products and This is a status strategy of This particular company and you can see it yourself as the CEO Lays it out and then he sets the goal for the next year And you can see here that these are the goals that he is sitting and some numbers that are there a Strategy a 360 degree strategy or a 360 degree goal cannot only be finance and operations Or people it also has to be about the planet And you will see here the global CEO of that company talking about purpose and values Living our purpose and values and what are the priorities? Waste free future in the middle healthier lives on the left Diversity on inclusion on the right. So this is where this company Nestle is being friendly to the planet and to society and Therefore you see a great company doing great goals great strategies and reporting back a year later Was so what they said they'll do earlier So this is one case study. I've picked up one more case study Company I've worked for for almost a decade It's a German company DP DHL. It turns around again about hundred billion in sales, which is about eight lakh Crores in sales hundred billion dollars. It makes profits of about nine billion US dollars Approximately, which is about profits of 70 to 75,000 crores. It employs 600,000 employees six lakh employees and it operates in 220 countries 220 countries So how does it operate as one company across 220 countries six lakh seventy-five thousand employees 675,000 employees and Keep going growing sales on a base of Close to a hundred billion Lacks of crores. How does it function as one company and what is the strategy? I would encourage you to go to the website of this particular company. The link is there and Have a look at it yourself And if you look at the strategy 2025, which is two years from now their strategy is around digitalization and You can see and this is in the website and You can see what they're saying is that the triad which means the three angles of purpose vision and values Drive the group, which means drive the 600 and 600,000 employees across to 20 countries. That's the glue The purpose the vision the values Etc. And then the mission the mission is around excellence. That's how they define it It's a supply chain company. So excellent simply delivered And if you look at what is the core strategy that the yellow box outside is around digitalization How do you digitalize their existing business? It's runs hundreds of aeroplanes hundreds of thousands of trucks Has many operations factories plants warehouses and they want to put a whole Digitalization as a strategy around all of that So the strategy 2025 right on the top Delivering excellence in a digital world and the triad The 360 degree as they have defined it is you can see it for yourself They want to be a provider of choice to customers. So customers when they're choosing they want customers to choose DHL versus competitors So great customer service great customer products great customer experience On the left side you'll see employer of choice Employees want to work for DHL not just a 600,000 that they have today But many people want to work for DHL. This is a great place to work in and at the bottom You'll see they want to be the investment of choice because investors Want to buy a DHL share because they get good returns So happy customers happy employees happy investors And They also want to improve lives That's the social aspect of it by connecting people improving lives So it's a complete 360 degree example of a great company With great purpose vision mission strategies goals, etc. I Would encourage you again to go to the website and check out for yourself. What are the results that they are delivering? So this was the second case study. Let's come to the next part of this module, which is around culture Culture is how people are interacting with each other You are aware of a culture in your family in your college in your sports team in your club a Company also has to create a culture and a culture evolves It's a day-to-day behavior of how people work with each other But it's also driven by leaders just like the elder of a house or The principal of a college and the teachers of a college or the captain of sports teams Set the culture in a company the leaders business leaders also role model the culture And it is reflected visibly as You walk into a company outlet or office Just like certain people dress in certain ways Eat in certain ways talk in certain ways behave in certain ways The culture reflects itself in different aspects of the business and it also drives. What kind of people are hired? How did they treat each other? How do they treat customers and suppliers? All of that together is a corporate culture So how to create a culture there are many kinds of corporate culture first is team-based You may have a hundred thousand employees, but they're working in teams a country team a functional team It could be task-based based on a project or a work to be done It could be a hierarchy based where the boss calls the shots It could be customer focused everybody was focused on the customer It could be no culture ad hoc culture. There's no culture. Everybody does their own thing, which is not desirable So how to create a culture? as you saw The big thing about culture are the softer aspects not necessarily the function or the factory or the technology It's about the purpose the values the vision The role modeling from the top the strategic direction Are we going to be a technologically advanced or are we going to be okay on technology, but great on service? Are you going to be fully automated or fully manual? These are all things that drive the culture role modeling shared responsibility Only a few people cannot create the culture all the employees together have to create the culture and they have to reinforce each other If I say good behavior in great companies, they have a lot of reinforcement mechanism Badges employee of the month employee of the year people appreciating each other. Oh well done people gifting each other Because when they see the right kind of behavior social connect people getting together beyond work having functions events social events Plus recruitment Recruiting the right people who fits into the culture. So everybody knew who comes in is a fit with the culture and companies spend a lot of time Making sure that the fit is there not just the technical skills and of course how to resolve conflict Different cultures resolve conflict in different ways. So that's how we create a culture Sometimes you have to transform your culture especially when the business is changing For example, if you're moving from petrol engines to electric vehicles You need a whole new ecosystem You need to have new technology new processes New ways of selling new components new suppliers and A different way of working together a different culture. So how do you do that? Also for those of you who want to be an Entrepreneur you have to create a new culture. So how do you create a managed change? Again, it cannot start. We just change this part change this component changes technology Change the car change the body change the software That will not change the culture To change the culture transform the culture It's good to start with the top rediscover the purpose The vision mission redefine the strategy so with Engines of the old type petrol diesel we did very well, but the industry is going to decline So if you went like this will probably go down, but now if you're going to electric We are again starting from here, but as a company will go in the new world in the new way The industry is headed. So if to redefine the strategic definition and therefore what to stop What to start what to continue from the old way of doing things? Above all there has to be communication Who's in a large company? Be it hundred thousand ten thousand hundred thousand five hundred thousand It is important that every employee beat in sales finance marketing HR IT The top management communicates clearly over and over again. We are making a change. We are making a change We're making a change. Here's what it means for you because employees will keep asking. What does it mean for me? Am I going to lose my job? Do I need new skills? Can I do it? Am I too old for this? So you have to keep communicating and you have to answer the question. What's in it for you a brighter future? We are changing because it's a brighter future and it requires you to work in a certain different ways Let's adopt it. Let's move together and get feedback Change is difficult. It needs patience Things may not work things may go wrong So you need to get feedback top management needs to get feedback from the employees The things are not working or things are working very well. Let's continue That's transformation What does that mean for students aspiring entrepreneurs or employees themselves in terms of skills development? cultural skills abroad such as personal skills It's good to be aware aware of what is culture and different kinds of culture especially in your company if you have different Employees from different cultures such as Indian employees Japanese employees American employees African employees very different cultures or In a Indian company Tamil employees Telugu employees Bengali employees Kashmiri employees Gujarati employees Maratha employees so on So you have to be aware and build that awareness and Have an attitude of tolerance and inclusion one should not discriminate and Say, oh, I'm of this culture and that is better than that culture also Employees should not discriminate based on certain attributes It should be inclusive and it's a good skill to have personally So that one succeeds all of you succeed in great companies who become great employees or great employees of great companies That's personal. There's also interpersonal Interpersonal is all about working together Let's work together. It doesn't matter whether Indian German with a senior junior old young Highly qualified not so well qualified if a finance Person or marketing person we must collaborate and you must go create so whatever we do for the company Let's work together and create it together. So personal skills interpersonal skills and then there are external skills being aware What's going on outside? competitors industry Legal environment environmental social be aware of what's going on outside the company and whoever you interact with as an employee or the founder or The entrepreneur of that company You create win-win collaborations With your customer with your supplier with your channel partner with your logistic supplier with your IT supplier with the finance service provider With your raw material and component providers. You create win-win Collaboration irrespective of The culture difference you can be an Indian company or a German company, but you work collaboratively with Companies suppliers customers employees from across the world and those are cultural skills. I'd encourage you to learn and practice from Today if you're not already doing so and how do you get to know the culture of great companies? You can go to the website. This is just one case study Then go to the website of any of the companies and go into a pay into a tab or a section of the website which says life in This company so you can look at Tata motors and they have a section which is life at Tata motors And all good companies have that and there's one more case again You can go to the Mohindra website. The link is given below and Look at what does life in Mahindra looks like and that's how you find out about the culture And if you're an entrepreneur you can learn from the best companies Some of which I've shared and others who can discover for yourself and create that culture in your new company So this is what I had to share in this module and now now I encourage you Into the second reflection point of this module Where I would like you to think about a company That would like to work for or you are actually working for that company and Try to identify elements of the culture If you're in the in in the company Look around yourself if you're outside the company study the website or talk the employees of the company and see whether you can find out about these various cultural aspects So is the culture task-based team-based hierarchical? Is it customer-centric? Are the employees Driven by purpose and values do they all know about it? Do the leaders the CEO the vice president the president's role model the right kind of behavior That's defined in the purpose values principles How do they resolve conflict? If you are a customer of that company and you have a problem with the company, how do they resolve? that conflict and What are the positive reinforcements? What is the incentive mechanism the reward mechanism for good behavior? try to identify that if you are a student try to identify that in your college and Write it down in your journal because it will help you assimilate learn and practice What I've shared in this module so with this we come to the end of this module Thank you very much till the next module