Introduction to Strategy Lecture 1

Lecture 1 - Introduction to Strategy

• The lecture is taught by Professor Dr. Eva Niesten
• The course will cover Introduction to Strategy
• Students should use the Edusign QR code to register attendance
• The decline of many firms is due to a failure to update their strategy in an evolving world.
• All managers and entrepreneurs, regardless of industry or organization, deal with strategic considerations.
• Strategy is critical for successful decision-making.

Why a Strategy Course?

• Firms fail due to the lack of renewed strategic planning in an ever-changing environment.
• Managers, entrepreneurs, and all organizations are concerned with effective strategies.
• Strategic planning is essential in meeting objectives and constraints.
• Strategy is fundamental for decision-making.

How can firms create and sustain a competitive advantage in today's hyperconnected and fast-changing world?

• This is a key question explored in the course.

Why a Strategy Course?

• Students will master fundamental strategic management concepts.
• Industry analysis and evaluation are essential for competitive positioning.
• Firm and industry evolution analysis is crucial in this field.
• Understanding the impact of environmental forces on business and corporate strategies will be addressed.

LECTURE 1 – Introduction to Strategy – Course Details

• Course Instructors: Includes Eva Niesten, Bruno Cirillo, and Ambra Mazzelli.
• Course Components: Includes lectures, tutorials, coordination, course content, course guidelines, course material, smart book, mid-term and final exams, mid-term and final consultancy project.
• Assessment Criteria: Class preparation and participation (10%), Mid-term exam (20%), Final exam (30%), Mid-term Consultancy Report Presentation (20%), Final Consultancy Report Presentation (20%), Team Project (Consultancy Project).
• Introduction to Strategy: Focuses on the importance of strategy, its link with the firm and its environment.
• Value & Strategic Positioning: Explores value creation and capture, profitability ratios, and sources of competitive advantage.

1.1 Course Instructors

• Eva Niesten: Full Professor of Strategy and Sustainability; Director of SKEMA Centre for Sustainability Studies, email and office hours provided.
• Bruno Cirillo: Associate Professor of Strategy and Entrepreneurship
• Ambra Mazzelli: Associate Professor of Strategy and Organizations

1.2 Course Components

• Theory: Exploration of theory and strategic tools, utilizing readings, videos, discussions to understand managerial problems and solutions.
• Cases: Exploration of empirical contexts through detailed case studies.
• Project: Includes a consultancy project tackling a specific company's strategy analysis, covering strategic frameworks and tools.

1.2 Course Components (More Detail)

• CM (Lectures): 6hr (4 sessions of 1.5h each) in lecture halls.
• CM (Case Study): 6hr (4 sessions of 1.5h each) in lecture halls.
• Strategic Tool Application: 9hr (6 sessions of 1.5h each)
• Strategic Analysis Video Tutorials: 5 pre-recorded video tutorials on Excel-based analysis.
• Student Project Presentations: 6hr (2 sessions of 3h each) in small groups (30-50 students).
• Team-based Project Tutorials: Team formation week before the first tutorial.
• Instructor's Discretion on deadlines.

1.2 Course Components

• Course Pack (K2): Course syllabus, Excel-based strategic analysis video tutorials, case study materials and questions, lecture and tutorial slides, consultancy project instructions, assignment submission links, and common resources.

1.2 Course Components

• Data Sources: Specific databases and platforms like BVD Orbis, Dow Jones Factiva, Statista, Marketline, and ProQuest.

1.2 Course Components

• Active learning: Emphasizes preparation before lectures/tutorials.
• CM Preparation: Study prerequisite readings from the CONNECT platform's SmartBook. Assignments graded at the end of the course.
• CM Case Studies: Reading, video watching, and class debate/analysis.
• TD (Tutorials): Submitting checklists, data downloaded, analyses performed, variables, and instructor questions.
• Attendance: Mandatory. Notify instructors in advance for any missed classes.
• Free Riding: Not tolerated. Instructors can impose penalties on free riders.
• Compulsory Readings: Rothaermel (Strategic Management), Thompson (Crafting & Executing Strategy), available on the CONNECT platform.

1.3 Assessment Criteria

• Class Preparation & Participation: Based on CONNECT SmartBook statistics (end of semester) - 10%
• Mid-Term Exam: 5 multiple-choice, 1 open-ended question (data analysis required) - 20%
• Final Exam: 5 multiple-choice, 1 open-ended question (data analysis required) - 30%
• Mid-term Consultancy Report Presentation: Grading criteria for content relevance/reliability, analysis appropriateness, result interpretation, and presentation quality (0-20 points per criteria).
• Final Consultancy Report Presentation: Grading criteria same as above.
• Team Project: Original work, plagiarism will be dealt with strictly according to SKEMA's policy.

1.4 Introduction to Strategy

• Why is strategy important? How to achieve a sustainable competitive advantage, with a focus on implementation of goals, understanding the competitive environment, and objective appraisal of resources.
• A good strategy is based on AFI Framework: Analyze, Formulate, Implement.
• Rise and Fall (Nokia example): Highlights how failing to adapt to environmental changes can lead to company decline.
• Evolution of strategic management: Discusses key figures and their contributions (Chandler, Porter, etc).
• What is strategy?: Definition from Rothaermel, distinction between strategy and goals/aspirations, actions, and Mintzberg's 5 Ps for strategy (plan, ploy, pattern, position, perspective)
• Different perspectives of strategy: Strategy as direction, guidelines, and flexibility/responsiveness.
• Two levels of strategy: corporate and business level.
• Vision, Mission, Values: Understanding the articulation of these aspects for companies.
• Checking strategy statements: Gap analysis between statements, decisions, and reality.

1.5 Value & Strategic Positioning

• Value creation and capture: The goal of all strategy, defined as net rent-earning capacity or monetary worth.
• Purpose of business: Create value for customers (and society) and capture some of that value as profit.
• Value creation for society: Effective firms understand exchange relationships and effectively manage stakeholders.
• Value creation and capture components: Diagrammatic representation, consumer surplus calculation, and profitability ratios (ROCE, ROE, ROA).
• Profitability ratios components: Formulas for ROCE, ROE, and ROA.
• Competitive Advantage: Porter's generic strategies (Cost Leadership, Differentiation, Focus).
• Defining Strategy Variables: Use of performance data (such as ROS and ROA) to determine the type of strategy.
• Diagram for Strategy Variables: Graph illustrating how to use ROS and ROA data.

What's Next?

• Video tutorials on data collection and strategic positioning analysis are recommended.
• The case study on Uber and its CEO's interview will be discussed.
• Expect questions based on case studies to be addressed.

Join Professor Dr. Eva Niesten for an enlightening introduction to the course on strategy. This lecture will discuss the importance of strategic planning for managers and entrepreneurs in today’s fast-evolving business environment, highlighting how firms can create and sustain competitive advantages. Prepare to explore key concepts essential for effective decision-making.