Strategic tools for the practising manager

KIT

THIS WEEK: CONSUMER SPENDING IN PREMIUM TIMEWEAR

Luxury timewear has a market potential of Rs 5,386 crore.

The category engagement for males is 77 per cent compared to 31 per cent for females.

A mere 31 per cent penetration in premium watches for women indicates that watches are more of an accessory to them than time-keeping devices. On the other hand, to men, it is a style statement.

The per capita annual spend on premium watches for men is Rs 23,000 and for women it is Rs 42,000.

Consumers (both men and women) of up to 30 years are the highest spenders in the category "" the estimated average being Rs 46,000 for women and Rs 76,000 for men.

Men living in metros spent Rs 27,000, which is more than what men staying in non-metros spend on premium watches, which is Rs 15,000. Clearly, the metro consumer is buying into designer brands, which typically start upward of Rs 25,000.

In the case of men, North has the highest spending with Rs 31,500, followed by West: Rs 20,000.

In the case of women, again, North has the highest spending per annum at Rs 38,000 followed by South with Rs 22,000.

NUGGETS
Selections from management journals

They're nominally and ultimately responsible for strategy, but today's CEOs have less and less time to devote to it.

As a result, CEOs are appointing "chief strategy officers" "" executives specifically tasked with creating, communicating, executing and sustaining a company's strategic initiatives. In this article, three authors from Accenture share the results of their research on this emerging organisational role.

The typical CSO or top strategy executive is not a pure strategist, conducting long-range planning in relative isolation. Most CSOs consider themselves doers first, with the mandate, credentials and desire to act as well as advise. They are seasoned executives with a strong strategy orientation who have usually worn many operations' hats before taking on the role.

Strategy executives are charged with three critical jobs that together form the very definition of strategy execution.

First, they must clarify the company's strategy for themselves and for every business unit and function, ensuring that all employees understand the details of the strategic plan and how their work connects to corporate goals. Second, CSOs must drive immediate change.

The focus of the job almost always quickly evolves from creating shared alignment around a vision to riding herd on the ensuing change effort. Finally, a CSO must drive decision making that sustains organisational change.

The Chief Strategy Officer
R Timothy, S Breene, Paul F Nunes and Walter E Shill
Harvard Business Review, October 2007
Subscribe to this article at www.hbr.com