International Business Strategy IB Year 2 Class Notes Summary PDF

Class notes (summary) International Business Strategy IB Year 2 geschreven door esmeejs www.stuvia.com Gedownload door: sasithorn | [email protected]...

Class notes (summary) International Business Strategy IB Year 2 geschreven door esmeejs www.stuvia.com Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen?  Stuvia - Koop en Verkoop de Beste Samenvattingen Lecture week 3.1 - Thursday February 4 Sustainable purpose driven organisation Learning goal of today: Identify the role and the contribution(s) of a company towards sustainability ‘Sustainable development is development that meets the present without compromising the ability of future generations to meet their own needs’ Hybrid business spectrum Company’s are renovating, where they actually belong of all the business irruptions. How can the company be sustainable? - sustainability is an abstract term Either the company tries to be ‘green’, or it can mean how to survive in the long term - how to sustain competition. - company’s do not feel comfortable to step out the comfort zone, to collaborate together with stakeholders and think about what they can do to make it a win-win situation. Where would you position your project company in the hybrid business spectrum? Business model canvas Page 1 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen?  Stuvia - Koop en Verkoop de Beste Samenvattingen The canvas that is build from nine components (building blocks). - Value proposition: what is the value we are delivering to the stakeholders? (company should ask) - Right side is customer oriented - Left side is more process and content oriented - Bottom side is divided into costs and revenues - Costs are related to key activities - Revenues are related to the customers, they are generating the revenue for the company. Main stream (perspective) company’s are working on this economic perspective, their business model is based on this. Business model canvas: environmental life cycle perspective When company’s act on this business model, the product or service that is being delivered has recycle or upcycle life cycle. - This kind of organisations put environmental impact as KPI’s. Business model canvas: social stakeholder perspective - look at wants and needs of stakeholders, but with the environment in mind. - People are centred in this business model, so not mainly about delivering a product or service. - They are serving to end-users Shifts between these business models are tough, because it needs a change of mindset. Page 2 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen?  Stuvia - Koop en Verkoop de Beste Samenvattingen Paradigm shift Company’s have to be realistic too, they need to pay the bills and need to pay the employees. What can be gained on the company’s own expense and not of other stakeholders. However, they may take a lot of the social aspects into account. Measure: what can we a ord to loose and what can we a ord to gain at our own expense and not at the expense of other stakeholders. Relevance Respecting stakeholder interests ISO: 26000 -> Respecting stakeholder interests is a very important starting point for any social responsibility policy. Engage with stakeholders - Very important to engage with stakeholders -> what are the needs and the wants. - From a legal kind of view: what does it mean for the company. - From a time frame: how urgent is the matter to ful lling stakeholder needs and wants. - -> those elements will have an in uence on the processes and as a result the development of a strategy within an organisation. - Power interest stakeholders is from a more economic perspective. - Customer needs and wants is more from a social perspective. Corporate social responsibility ‘Business practices involving initiatives that bene ts the society’ - CSR de ned by United Nations. When we talk about organisation and people, you do not only talk about how the business is working and looking at this operations / and processes intention of how they make decisions from a micro environment. Because, it always as well a ects the meso and the macro environment and vice-versa. -> very important for organisations to have a solid, very strong foundation when it comes to CSR. Page 3 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? ff fl fififf ff fi  Stuvia - Koop en Verkoop de Beste Samenvattingen Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen?  Stuvia - Koop en Verkoop de Beste Samenvattingen What could be changed in terms of CSR for organisation and people in the situation of COVID so people won’t feel drowned and make it more positive: - Ensure their mental health and well-being - Investing in a help / support centre for demotivated employees - Team building sessions and or workshops - Personal coach for each employee Triple bottom line: People, planet and pro t -> to be able to see that part where elements of sustainability can exist with proper understanding, proper alignment of these elements. The thought of the triple bottom line exists for many years already. Project company: where are they in the business spectrum and how is it related to the value that they are delivering to the customer? Find resources that are related to all these key topics, this is the literature !!!!! Page 4 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi  Stuvia - Koop en Verkoop de Beste Samenvattingen Lecture week 3.2 - Thursday 11th February Strategic position What is the uniqueness of the business? - If you know this, connect it to the mission, vision and strategy. - Talk to the stakeholders of the company. - What is the strategic position and where are they right now? De nitions of strategy There are di erent de nitions of strategy given my management gurus. - Elements of strategy de nition: - Long-term - Strategic direction -> the path / journey and decisions and actions to be taken. The set of the activities that are involved and how can particularly goals be reached. - Organisation: do they have enough resources and capabilities to be able to move forward? Elements of strategy Strategic management: Strategy involves managing people, relationships, and resources. Viable options: company’s want to invest into larger projects or invest into other natures of the industry. -> becoming even a bigger player in the market. Question: how is a strategy being seen (see di erent de nitions given by management gurus) Exploring strategy framework Page 5 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fifi ff fi fi ff  Stuvia - Koop en Verkoop de Beste Samenvattingen Strategic position: Internal organisation - Micro level - Involves: stakeholders, resources and the culture. Macro environment and industry (meso environment) For the project: understand, analyse and connect all the elements together = preliminary analysis. What are the organisation’s distinctive capabilities? Resources and capabilities analysis Physical Resources: tangible assets that a company have. - What kind of (physical) resources does the project company have? - What do they eventually do with those? - Where are those resources capable of? - How can those resources help the company to reach its mission and vision? Financial resources: having the nancial ability and capacity to be able to run the company. - Finances and investments no longer belongs to a couple of a few great stakeholders -> many company’s are reaching out to individuals, crowdfunding etc. - Shifting of nance acquisition. - Project company: look at the nancial reports -> an indicator would be stock market exchange, the price of the product compared to those of competitors of the same business nature. - Have a good analysis on this -> to nd out how nancial viable is your company. Human Resources: people that are involved with the processes and decision-making. - Not only employees or the mangers, also partners, suppliers and customers -> those will contribute advantages when all these di erent stakeholders are able to contribute to the human factors that are related with the forming of a strategy or an existing strategy that will help the company to move. -> how can they make their businesses unique by examining and doing an analysis on their resources and capabilities bases on these three elements (physical, nancial and human). Page 6 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi ff fi fi fi fi fi  Stuvia - Koop en Verkoop de Beste Samenvattingen VRIO framework A tool to be able to see a bit further than just the resources and capabilities. - With the use of this VRIO framework you are looking at the resources and capabilities of a company, how is this relevant in terms of competition? - Who are the company its competitors. - Using this tool to nd out how the company do in terms of competition concerning the resources the company have and how they make use of this. What are the resources of the company capable of doing and what can be done with all those resources? -> then use the VRIO framework Value: how do resources and capabilities that the company have respond to opportunities and threats that are in the meso and macro level. Meso level: how would these resources and capabilities going to help the company to deliver this value to customers. Macro level: up-coming business trends and irruptions in the business landscapes, new technologies, economic growth and depression, all these matters how would these have an in uence on the resources and capabilities of the company. Rarity: how special / unique are these resources and capabilities that the competitors in the meso level are not able to practically imitate. Inimitability: Competitors do they have the same amount of resources? Do they have that speci c talent, knowledge, systems, technology, access to physical building, nancial capabilities. How would this all a ect the sustainability in terms of competition for the project company. Organisational support: How does the organisation manage / deal with all the resources and capabilities? How do they make good decisions? How do develop strategy that help them to move further? How did they learn from their mistakes? How do they recruit people? How do they make sure that they have the best talent working there? How do they make sure that the processes are understood? VRIO framework: see how important these resources and capabilities are for the project company. Page 7 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fl ff fi fi fi  Stuvia - Koop en Verkoop de Beste Samenvattingen Sustainable competitive advantage: ‘sustainable’ here means on the long term orientation / long- term basis to survive and be on the top of competition. VRIO-framework: analyse resources and capabilities and nd out how competitive a company is. The value chain To nd out what values producing / delivering to customers. - This value chain is mainly applicable for production company’s. - Value chain analysis at the supporting activities and primary activities that are necessary for the company to receive / obtain their turn-over. What are stakeholder expectations - Try to identify the stakeholders within the project company. - Directly / indirectly involved with the company Page 8 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi fi  Stuvia - Koop en Verkoop de Beste Samenvattingen Stakeholders Stakeholder mapping Map out these stakeholders according to level of attention and level of power that they have. - First list the stakeholders - Who are the direct and indirect stakeholders - Who are the external and internal stakeholders If you have the list of information you can map it into the right quadrant. -> who are the stakeholders you need to pay attention to. -> who are the key players? Stakeholder salience model - Another di erent type of stakeholder mapping. - A bit deeper when it comes to stakeholder analysis compared to the one that will be found in the main literature. - What are the elements that can in uence the stakeholders that the company have? Page 9 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? ff fl  Stuvia - Koop en Verkoop de Beste Samenvattingen How does culture t the strategy? Organisational culture - Understand the four layers of this model on the right side. - Example of exam question could be that the framework is presented and that is asked what are certain things in layer 1 or in layer 2. - From these four layers which one of them would you identify as behaviours? ‘Basic assumptions and beliefs shared by members of an organisation, that operate unconsciously and de ne in a basic taken-for-granted fashion an organisation’s view of itself and its environment.’ Shein & Brown (1998) -> commonly expressed as ‘corporate culture’ - when you look at all this di erent layers, it is important to understand that within a company, when you look at the micro environment - the internal organisation - with all the di erent employees and employers, you will see that all of us we have our individual cultures. - How we see things - How we behave - How we make decisions If you look at the paradigm, the inner layer of this framework, paradigm describes the basic assumptions that are practically taken for granted. - We are working together in one company, but how you behave, how you communicate and the actions you take. We are all di erent, but we always have this collective way - some common things that we share - to be able to work with one and another. Behaviours: speci c system that we have to log in. When there are certain procedures and certain systems are being introduced for formality, individuals work towards this set of what we would call beliefs in an organisational culture. Values: represents what the organisation believe in, what they are good in and what makes them unique. How would the organisational culture a ects the strategy. De ning the business strategy ‘Culture eats strategy for breakfast’ - Peter Drucker. In order to de ne a business strategy, an organisation would have to look to how the culture of the organisation would lead to the success of a speci c strategy. Page 10 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi fi fi fi fi ffff ff fffi  Stuvia - Koop en Verkoop de Beste Samenvattingen Culture’s in uence on strategy Once that organisational culture de nes speci c strategy or development of strategies, when companies implemented the strategy to be able to achieve the succes in terms of pro t, turn- over or for fame - how company’s and businesses, the organisation actually evaluate their success, they look back where did this in uence in the culture take place? - Did something go well? If not, they will go back and look how their strategies were implemented -> have a look at the organisation again - How is the structure of the organisation? - How is the strategy? - How are the systems, people, processes? - -> How do all these elements a ect the performance of the company? The culture web - culture web -> to be able to map this cultural elements within the company - Start-up: also interesting and do a further analysis. What symbolises that organisation? The culture web: ‘analyse an organisation’s culture to understand the existing culture and its e ect.’ Shows the behaviour, physical and manifestations of a culture. Use the cultural web and try to look at simple things, such as: when you look at the company, what symbolises them? Power structures? Top-down or bottom-up of decision-making? etc. Do they have a very stabilised systems (CRM)? Do they have systems that helps them optimise the ow of data and make proper decisions? What about rituals, routines and stories? How are they looking towards their mission and vision? Page 11 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fl fl ff fi fi ff fi fl  Stuvia - Koop en Verkoop de Beste Samenvattingen Strategic drift Look at the organisational culture -> identify all the elements, using the culture web -> understand the history and ongoing movement of the company towards their mission and vision. - How would anything from the macro and meso environment would a ect the organisation? - When company’s start reaching their goals, you see that they move very closely to what they can get (phase 1). Any changes in meso / macro level, the organisation will go along with it -> always increasing. - You see that they are slightly drifting away, this can have many reasons: - A political change - Tari s (import / export) are changing - The labour market is decreasing -> the macro and meso layer is drifting a little bit further than the company’s intention of the speci c strategy to reach their mission and vision. (Phase 2) - You see the wider curves. Company’s and organisations are slightly far apart. They are lots of gaps, lots of challenges, lots of things to take care of the meso and macro level for them to be successful. - At some point of time, that business/ organisation would not be able to sustain competition, or they might re-innovate their business again and they are going back once more to phase 1. They managed challenged by rebuilding / re-innovating. Or they would simple put out the plug. Strategic drift: to explain how historically and at the moment of time, the company is able to defend and to look and respond to the macro and meso environment. Example question: - What can you tell about the ux (phase 3)? - What can you tell about strategic drift? - Describe the situation and identify the phase based on these conditions Page 12 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? ff fi fl ff  Stuvia - Koop en Verkoop de Beste Samenvattingen Lecture week 3.4 - Thursday 4th March Strategic choices Strategic position Mirco level = very much related to the internal organisation. Meso level = marketing strategies / mix, how does the industry look like and competitors. Macro level = quick scan, external environment, pestel Strategic choices Business strategy = choices about business position relative to competitors Strategic directions = choices of products, industries and markets to pursue Strategy methods = How to pursue strategies: organic, acquisition or alliance Business strategy Business models interesting to look into; related to business strategy. Business model can be de ned through three components: 1. Value creation -> how company creates value. 2. Value con guration -> how company organise the systems, people, activities, handle the supply, handle the collaboration between business partners in order to create the value for the customers. 3. Value capture -> Once a product / service (value) has been delivered to the customers, how are you going to capture the value? So what is the cost that it takes to produce, to be able to come up with that product or service and what would be the returns and pro ts that the company can obtain from the delivery of the value that has been created for the customers. Business model canvas Page 13 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi fi fi  Stuvia - Koop en Verkoop de Beste Samenvattingen The three elements in the business model canvas: value con guration, value creation and value capture will contribute to the business strategy of a company / an organisation. Value con guration: connects the key activities, resource and capabilities, and partnerships Value creation: what is the value proposition? What do we deliver? What is good / unique about the product and services that we deliver to consumers and organisations? How to maintain and build customer relationships? How to identify di erent customer segments in the markets? What is the USP? Is it a niche market for a niche market? How are the products/services are available for customers? Value capture: Cost structure: what are the cost structure (has to do with assets) Revenue streams: what is coming in? What do you get from the value that has been delivered. Business model Explains how companies create, deliver and capture value Easy to understand the underlying business intentions and actions Provides an overview of how information is managed in di erent parts of a business Literature: Business model generation. Business model canvas -> the building blocks Business model canvas = to describe, visualise, assess and change the business model. Main building blocks in the canvas (9) The four main focus area are customers, nancial viability, what the company has to o er, and its infrastructure. When you analyse a business model of a company customers, nances viability / feasibility, value proposition (what is being o ered to customers), and infrastructure around it (looking at value systems, value activities, looking at processes and information ow) should all be looked at. Value creation: Customer segments What is the value the company Is creating? The value is created for who? Most important customers: Who are they? Niche? Mass? Diversi ed? Segmented? Etc. Customer relationships How do you build relationships? System with most loyal customers; who are frequently contacted. Type of relationships? Page 14 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi fi fi ff ff ff fi ff fi fl  Stuvia - Koop en Verkoop de Beste Samenvattingen Customer expectations? Self or automated services? Co-creation? -> possibility of sharing dialogues with customers. Channels How are the products and services channeled to the customers. Types of channels: indirect or direct? Are channels integrated? How cost-e cient is it? Value propositions What value is delivered to customers? Customer needs, wants and problems? Products and services o ered? Value con guration Key activities Key activities: how are information going to be processed, when products and services are build? What are the key activities to deliver the value propositions? Important actions needed to operate successfully? The key activities depend a lot on the key resources and capabilities (people, machine, expertise etc.) Key resources What are the key resources to deliver the value proposition? All these items, the people, the buildings, physical assets, the nancial investments, the workforce, the intellects of people, the research and development, how are these all taken place in the organisation? -> it does explain a lot about the business model that they are working with. Physical? Financial? Workforce? Intellectual? Key partnerships (supply chain) Types of partnerships: Network of suppliers? Network of partners? The logistical parts and collaboration with business partners: How raw materials are being channeled How products are being made and transported How do business do in terms of supplying the right material and right information for the company to nish the end product, or to deliver the end product to the customer. Value capture Cost structure Costs incurred (when you need to hire people, when you need certain information/skills, when you need to buy physical lands / o ces / buildings)? Cost driven? Value driven? Cost(ly) on: Key activities? Key resources? Key partnerships? Page 15 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi ffi fi ff ffi fi  Stuvia - Koop en Verkoop de Beste Samenvattingen Revenue streams How much do the customers want to pay for the values o ered? How are all these turnover then categorised: Earnings? Prices? Bargains? Subscription fees? Lease/rent? Licensing? Advertising? Pricing mechanism: xed or dynamic? -> Project: analyse by using the business model canvas by analysing the nine building blocks. Business model canvas variations Economic perspective -> very mainstream; the business model that belongs to an organisation is very much related to an economic perspective; a lot of focus is placed on the value capture -> regulating between costs and revenues coming. Environmental life cycle perspective -> Slowly there are lots of activities and movements going on whereby earning a pro t is not the main goal of some kind of start-ups and social entrepreneurs; The value capture is no longer about the nancial incoming and out coming ow, but more related to environmental impacts and environmental bene ts. Social stakeholder perspective -> The company contributes to the society and community (around them); value capture layer has more to do with the social impacts and the social bene ts; instead of collaboration with business partners has changed and now work together with local communities. Link the analysis and outcomes (stakeholder salience and business model canvas); how are these elements complement and function (or not) with one another. Business model patterns Peer-to-peer: Examples are AirBnb and Uber Any individual can o er a service to one another Freemium = ‘free + premium’: Examples are LinkedIn and Spotify Service provided is at the beginning free, so getting as many customers as possible, but at a level certain premium services will be o ered at a price. Page 16 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi ff fi fi ff fi ff fi fl  Stuvia - Koop en Verkoop de Beste Samenvattingen Multi-sided platform: Examples are Google, Amazon and Net ix So many di erent interaction of all di erent groups, to provide that product or service to individual persons. Razor and blade: Examples are printers and inkt and Gillette Complementary items, one of the items is normally more expensive Razor is cheap, blaze is expensive Printer is cheap, but to re ll ink is expensive Recommend literature: The business model navigator Strategic directions: choices of products, industries and markets to pursue Meso environment linked to the macro environment See the Anso matrix on the right: gives an indication of these four quadrants. What you see in the quadrant A, B, C, D, is related to diversi cation. In quadrant D, it is about unrelated diversi cation because the company is looking into new markets with new products or new services. When you analyse the strategic choices and from a corporate strategy point of view, then you can look at the company has this products and services, so these are they markets -> do they have plans with these products and markets that they have at this moment -> found out in strategic positioning; at strategic choices, this intermediate part of the blueprint, you trying to gure out, they have all these, are they going to move forward into any of the quadrants, or are they going to stay and penetrate the existing market with existing products or do they have plans? Diversi cation drivers and performance Why do company’s want to diversify? Why they want to tap into a new market or in an existing market, existing product etc. Questions for exams: - this kind of charts can come in the exams - Anso matrix - Performance related to diversi cation The value chain -The value chain model here is not applicable for all business operations; mainly for businesses that deals with supply chain (producing products) -Use this value chain to take a look at how would that corporate strategy, that direction of the company, how would that in uence the internal organisation as well. -Support activities are related to the micro and the meso environment Page 17 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? ff fi fi ff flff fi fifi fi ff fl  Stuvia - Koop en Verkoop de Beste Samenvattingen Diversi cation and integration Integrating the diversi cation Vertical integration: involves forward integration, backward integration Horizontal integration = diversi cation Example car manufacture: Center: car manufacture company, who gets certain parts of the car that comes from suppliers (backward integration), the car manufacture (center) will actually assemble these components. Then, push the car forward to be sold to the car retailer (forward integration). We are all the car manufacture and we own this manufacturing company and we say we have lots of resources, capabilities and the nances, information, shall we then take over the suppliers, shall we then buy over the suppliers, shall we joint-venture with the supplier; to gain the main advantage itself. We as the car manufacture, we can be the suppliers ourselves as well. If we do that, so we are manufacturing the car, but also setting up organisations and being the supplier itself, we are talking about diversi cation in the sense of backward integration. We as the car manufacture, we can push and sell and forward the cars to our retailers so that they can sell it to customers, but why can we not do that ourselves? -> we can also be the car retailers on our own, so when you are the supplier and the car retailer then you are dealing with vertical integration forward, whether it can be a forward or backward integration. Horizontal integration: The example of the car manufacture; go beyond to something that is not within the expertise, in the example they manufacture cars, but they have the capability and they would like to take over the trucks, or the busses, airplane, trains or whatsoever and then you are talking about diversi cation in terms of horizontal integration. Integrate or outsource Outsourcing: internal value chain activities are subcontracted to external suppliers Secondary processes will be normally outsourced; so the company can take care of customers, advertising, brand creation etc. What are the bene ts and the disadvantages? Page 18 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi fi fi fifi fi fi  Stuvia - Koop en Verkoop de Beste Samenvattingen Lecture week 3.6 - Wednesday 15th March (chapter 7.1/7.3 & chapter 8 & chapter 10 & chapter 11) Strategic choices Place the outcomes / ndings from strategic position in the TOWS matrix. What are possible strategic choices, put it through SWOT and then through the TOWS. -> help to nd out what are the strategic choices? Entrepreneurship Process whereby individuals, start-ups or organisations, see, identify and exploit opportunities for new products or services that satisfy a need in the market. Page 19 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi fi  Stuvia - Koop en Verkoop de Beste Samenvattingen Entrepreneurial process Entrepreneurship takes form in many di erent steps Step 1: observe, identify opportunities. Step 2: is it feasible to mobilise a new product in the market? Possible exams question: - about the sequence - About an explanation - Look at step 5, business model and strategy, what can you describe about value capture or value con guration? - Put the picture in the test, in this step it is very important to provide this information, to which step does this belong? Stages of entrepreneurial growth - Start-ups do face a challenge of obtaining capital. - Where are they going to obtain this capital? - Required high investment: possibility that start-up goes to the bank or a venture capitalist? - Venture capitalist: individuals who can invest high amount of investment into a potential start-up. - They ask for being manager, part of management / board of directors. - They want to know how the whole idea will bene t them from time to time. - They do not simply give away or invest easily in a start-up. Quite di cult to get their trust; if the product / service is interesting to the venture capitalist that is when the investment comes in. Curve moves up: - Founder is involved in all decisions, Involved in all activity’s where they can get their hands on - In this case: they loose the primary activity focus. - When the start-up starts to grow, you will see that most of the founders tend to back-up a little bit from the managerial point of view and to either hire individuals to take over the managerial skill. Curve having a plateau: they are maturing. - making good pro ts and returns. - During maturity / entrepreneurial growth face you will see terms as diversi cation and intrapreneurship comes in; nice ideas, mobilising from within the organisation itself. - Intrapreneurship; more brilliant ideas and start a small venture from inside. (Amazon) Exit: Means that it is stable and good and that entrepreneur who started with the idea nds it this is good enough. - at that moment there are many possibilities: - Entrepreneur could practically in the simplest form sell the business over to another entity (trade sale) - O er shares to the public (IPO) - start again to grow (some crazy ideas come up) Page 20 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? ff fi fi fi ffi fi fi  Stuvia - Koop en Verkoop de Beste Samenvattingen - The red line - known as serial entrepreneurship, means: building up a start-up and then start with new ideas and start again that whole serie of entrepreneurial growth. So when they think the start-up is ne, they sell it and start all over again. Invention vs. Innovation Invention = Conversion of new knowledge into a new product, process or service Innovation = putting the conversion of new knowledge into actual commercial use. Innovation is actually an important outcome of entrepreneurship, meaning that: it is an invention plus putting it into actual commercial use. Innovation dilemmas 1 Technology push: Innovations are pushed (new knowledge created) by technologists or scientists Market pull: Innovations are pulled by users in the external market - Are there demand from the market that asked for a speci c feature of a new product or a new service. - When it is a market pull, so pulled by consumers, customers, users in the external market, it normally divided into a spectrum. When we talk about you and me as users, customers, consumers there are lot of variations in preferences, what we can a ord and what we like - When it comes to market pull, what organisations do: they tempt to divide it into a spectrum. - One is lead users (elitist) - lead users are the principal source of innovation. They need that speci c product or innovation. They depend on the product / service. - The other is Frugal Innovation (ordinary / basic consumers / does not cost much) - ordinary consumers focuses on low cost, simplicity, easy (cost) maintenance. For example a toothbrush, but now there are so many technology push for toothbrushes. Innovation dilemmas 2 When organisations / business think about innovation, they have this challenge: are we going to focus mainly on the nal product / service or are we going to focus on the way of how it is being produced? So will the company focus on product innovation (related to the nal product / service sold) or process innovation (way product is produced and distributed). Normally, the blue and red line move together, because you always start with making the product or service and then you gure out how are going to get it distributed, how are we going improve on design features and adding more value to it. Dominant design established: it is a pretty good product, cannot see how to change or pop it even more. When the innovation reach that peak, everyone wants to have it. -> when it drops, this happens very frequently with products in the market, when the innovation is copied, or paid and taken over or some new other fancier product comes up, the sale and demand slowly decrease. That would have an e ect on how it is processed and distributed. Page 21 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi fi fi fi ff fi fi ff  Stuvia - Koop en Verkoop de Beste Samenvattingen Innovation dilemmas (3) Is it going to be an open innovation, do we keep it closely to the recipes and ingredients that we use, the ways we produce it or do we include collaboration, do we make it an open source innovation = ideas and knowledge and R&D from di erent entities can be combined together to produce an even better synergised in terms of new produce or service available in the market. So, companies and businesses in an entrepreneurial process, when they want to innovate they do run into this very three main dilemmas. One of the examples is crowdsourcing Innovation di usion Di usion: The process by which innovations spread among users (depends on supply and demand factors). Di usion s-curve: Re ects a process of initial slow adoption (adopt itself to the market and consumers) -> rapid acceleration (selling fast and good and everyone recognise the product) -> leading to plateau (limit to demand). How fast are these processes spread? The decisive factors are depend on supply and demand. No demand, no supply and the other way around. From the supply side: what are the factors: - How companies / business are improving delivering that value / con guring that value and delivering it to potential customers and users. - At the same time: based on the business experience and also those from the existing customers how would they then adapt to the product / services and the market they are serving? - Also, when we look at products and services, you want it to look nice and make it functional, earn money from it, but you do not want the customer to complain about the price and quality. From the demand side: - when you look at the market awareness: would you also want / be tempted to buy that product or that service (depends on market awareness and network e ects). So, it really depends on di erent supply and demand factors how fast and wide spread innovation can bring itself to the market. Tripping point: will decide whether that business continue on surviving on competitive age, or just be gone from the business landscape (by closing business, seize business operations). -> it allows business / entrepreneurs to think about if we look what is going on historically, what’s are products / services that came in the market last year and the year before, what can we then -> think further about the ones that are to come. The di usion S gives a bit of this idea. Strategy methods - how to pursue strategies: organic (over the time, it develops itself), acquisition (immediately, with urgency, buy over an entity, company or business) , and alliance (partnerships or collaborations with other entities, companies or businesses). Page 22 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? ff fl ff ff ff ff fi  Stuvia - Koop en Verkoop de Beste Samenvattingen - Organic development - Mergers and acquisition: NHL Stenden (form a new company) or buying majority of shares in target company. - Strategic alliance: collaborate together, exchange researches and capabilities in terms of physical buildings, R&D, knowledge, employees etc. Acquisition process - When a company buy over another business or another company, they have several steps and processes to go through. - First half of process is dedicated to due diligence; looking at organisation t, looking at strategy t, looking at people, processes and strengths and weaknesses, looking into feasibility of nances ( nancial analysis). - What is the possibility of buying over a company, acquiring a company, how much does it cost etc. It is not a decision that is made on a very short term -> most of the time these companies when they want to acquire or want to buy over another company they are stable nancially, or well-known in the industry or being a key- player, or they have sustain competitive edge in the industry in the market -> so that is when acquisition makes it more possible and easier - second half of process: the process of integration coming in - Two di erent organisation, have maybe di erent organisational cultures -> how are you going to bring this people together, their expertise, their culture, norms and values they are used to and on legal aspects: what are the terms and things in that in terms standards of operations etc. - If an acquisition takes place, stakeholders and individuals have to go through a very tedious process to ensure that the organisation can be combined together and that it can be integrated -> look at the challenge and how would it impact the new strategy form or the new combined business operations and what would be the impact and in uence for both the entities (before they see results coming back). Cycle will come back and should be checked again, are these still the key challenges etc., how about the shareholders and investors. When Buy, ally or DIY Ally -> merge do business together DIY -> do it yourself and let it grow organically Acquisition: - Some business have some kind of urgency, they want to do it on a very short time frame. - Financially viable, have the money, are stable and are able to invest, they have the source and capital -> acquisition would come in handy. - Buy over possibility and sort all the key challenges and impacts after that. DIY: - companies / business that have low investments, fundings and depends on various expertise and resources or have limited expertise and resources -> then tend to nd investors or funding or let the business grow organically -> build own value around mission and vision. Page 23 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? ff fi fi fi fi ff fi fl  Stuvia - Koop en Verkoop de Beste Samenvattingen Ally: - we have to solve some part of the business operations, it is viable and we do not want to buy over another company immediately, we might want to use certain expertise -> think about an ally and combine business partnership and share key resources and capabilities and see how the business can expand further. When business gets better -> possibility when business partners buy over each other. So move over from ally’s to acquisitions. -> from there on when things are maybe even more stable we let everything develop organic on its own. -> depending on whether we are looking in deliberate strategy or emergent strategy Read examples in the book. Capabilities mostly soft: the talent, knowledge, people, the organisational culture, seems to be more intangible to measure in terms of business operations. Hard capabilities / resources: normally associated with a building, physical place, production oors, production machines, things are tangible, where they can put a value on. Page 24 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fl  Stuvia - Koop en Verkoop de Beste Samenvattingen Lecture week 3.7 - Thursday March 25 Strategy in action (strategic actions) Study for this week: ch. 12.1 t/m 12.6 ch. 13.1 t/m 13.4 ch. 14.1 t/m 14.5 Ch. 15.1 t/m 15.6 ch. 16.1 t/m 16.2 The image on the right side shows all the items covered during the O&P lectures semester 2. Evaluating strategies Show the project company your collaboration (ask them which strategic options they would prefer). Evaluating strategies = assessing / looking at the economic performance When you evaluate these options, you help the company to identify gaps, whether in there: Business performance Business operations Strategic forming More brand awareness / brand establishment How to innovate their product portfolio further Page 25 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen?  Stuvia - Koop en Verkoop de Beste Samenvattingen Gaps are identi ed, because when you look at your SWOTS and TOWS analysis, you see what is doing good and what they are doing less good. So you are identifying the company’s gap, by also analysing their strengths and their weaknesses and the opportunities and threats (meso and macro level) - after identifying the gap, you can come up with strategic choices / options To make that choice: Discuss with project company Looking out at the evaluation options by using suitability, acceptability and feasibility. Gap analysis = the identi cation of gaps The course of actions we take are not always equal to our desired performance -> then you get the situation as shown in the graph on the right side. So the gap analysis tells us what are the shortfalls and pitfalls in the performance. Looking a little bit to the future, but also analysing what is happening currently and what happened in the past. What choices does the project company have to minimise this gap of performance / business operations. So, when you have identi ed your strategic choices, you will take a look at the SAFe analysis. SAFe criteria & evaluation When you look at this analysis, you are practically checking all (3-4) options that you have. Are the options suitable, acceptable and feasible? Page 26 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi fi fi  Stuvia - Koop en Verkoop de Beste Samenvattingen Acceptability: What would the stakeholders say about the propose choices? What would they expect? Do they see a risk Risk can be in the form nancial feasibility or they can look if it will a ect the return of capital or will it a ect the investment of the stakeholders. What will be the reactions of shareholders, if I want to extent my business to someone else or I want to merge with another company -> they would be very much interested to know. Feasibility Do we have the right people and skills to carry out these tasks? Do you need to revise the business model again? Do you need to see whether some components of your business model Examples of strategic directions Examples of strategic methods * Important note: select the most suitable strategic option through ranking -> see business case ‘refreshing’ from Heineken p.380 - 381 * Also: how much would a certain course cost (for example give an agent an o ce in Brasil) Page 27 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? ff fi ff ffi  Stuvia - Koop en Verkoop de Beste Samenvattingen Realised strategy The implementation plan: What are you going to plan now? An implementation plan can be a key performance indicator, it can be a business plan, an export plan, a framework of an export plan, a new marketing / strategy handbook. Many possibilities for the next prototype Important to know: are we looking at a deliberate strategy or at an emergent strategy? Deliberate strategy = a formulation and a planning. strategic option X is going to be planned out and it will take these steps, these models, this moments, this periods. It is formulated and planned. Connection back to the strategic leader that oversees this plan. So, If we are going to set-up that small little o ce somewhere in Brasil and then to have 2-3 marketing and sales agents, 1 dealing with the B2C component and the other dealing with the B2B component, who is going to lead them? Who will give them management leads? Are they working on their own structure and matrices and how are they going to communicate with the project / host / parent company? What are the guidelines? Is it a decentralised or centralised process? So, there are plans, visions and guidelines These guidelines and plannings normally will go in-aligned with the parent or the business corporate planning. (Check mission and vision -> is the company still meeting this?) Is it still nancial feasible to rent an o ce somewhere else? Emergent strategy = it is not planned and ad-hoc. It rises up from certain moments, it could be a moment of prices, it could be a moment that government says ‘what can we change, for example the international trade tari s and how would this a ect the import and export of the products we are going to distribute and supply overseas’. Or if there is a change in taxes, how would that then a ect the consumer spending? All these deacons, regulations and processes that happen over time, that are beyond in uence of the company, they kept also an impact on the strategy, that is about to be formed or to be established. Most of the time build-up of logical incrementalism; sometimes you have developments of strategy and then adapt (fast). Learning organisation: it goes along the way. Page 28 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fl fi ff ff ffi ffi ff  Stuvia - Koop en Verkoop de Beste Samenvattingen It can be a planned, or an unplanned situation. If the government makes a simply di erent regulations, that has an a ect on the earnings the company have. Take a look at the culture web (for the micro level). On an emergent strategy, we can never know, how to deal with speci c (overseas) cultures. Emergent: it just pops-up. Organisational con guration - in the exam!!!!! About the structure of the organisation About the strategy About the systems Structure It is about the roles and responsibilities and the lines of reporting When we talk about setting up working with agents; a small o ce in some other country -> what is the structure going to be? How many people are involved, is there going to be a manager there as well? Is there going to be a teamleader? Are those groups of employees working as result-oriented team? -> what are their responsibilities? -> who do they report to? -> is it a centralised or decentralised structure? -> how is that compared to the parent company? -> what sort of structures, matrix structure or a functional structure they are working with? -> micro level: how many people work there? How is the line of reporting etc.? When you think about the strategic choice that you are working on for the implementation plan, so when you look at the implementation plan, what can you say about the structure as part of the organisation con guration? What can you say about the systems that can support and control the people? For example in a CRM system or ERP system or a very simple HR system, or a R&D system where they share the knowledge and transport knowledge and skills. Or a customer data bases. So, all the systems to support and control with responsibility. Structure and systems represent two important elements of your organisational design. If you are asked, what is the organisation design: you are practically looking at the structure and the systems. -> if strategy is included, we are talking about organisational con guration -> it’s practically a set of three elements that support and t each other to actually support the intended strategy. Page 29 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fiffi fi fi ff fi fi ff  Stuvia - Koop en Verkoop de Beste Samenvattingen Strategy and structure t When it comes to strategy and structure t, if you look at year 1 when you learn all the organisational matrixes. Functional matrix = a functional matrix is something for instance, company ‘Esmee’ and below that company structure, CEO ‘Esmee’ and then roles of the functions can have a marketing director, a technology director, an HR director, account manager etc. So, the line of rolls and responsibility that is functional. Multidivisional = can be for instance CEO Esmee and after the CEO you have di erent divisions, from a division that is handling nances, one that is handling HR, one that is handling R&D, one that is handling marketing and sales etc. Or division A that represents a speci c region, or division B that represents a little part of the business operations in the country. Matrix = di erent product types, for example di erent product types for di erent geographical locations. How is that division of roles and reporting lines, accountability if we look at product A in Europe, product B in America, and product C in Asia. So, a combination of a matrix representation of portfolio product vs. Geographical location. Transnational = (multinational), business operations that are extended beyond the borders. One of the main di erences, multinationals have a more centralised approach, when they have di erent companies elsewhere globally or worldwide. Transnationals has more intentions towards decentralisation processes, means that the power / management / nancial administration / resources and capabilities administration they leave it to that speci c location to be taken care of instead of getting orders / instructions from the corporate (parent) company. Multinational is for example CocaCola, Nike Project = smaller establishment and this organisation matrix build-up around teams. In a project, there is always a lead project manager and when a speci c project has come to an end, normally the construction of this matrix will then disappear and then a more formal organisation matrix will take place. Page 30 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? ff ff ff fi fi fi ff fi ff fi ff fi fi  Stuvia - Koop en Verkoop de Beste Samenvattingen McKinsey 7-S framework (in strategic position part might have used this) Allows you to take a look at the organisational con guration, because what you do see back strategy, structure and system. They are also known as the hard elements in the McKinsey framework. Soft elements: are skills, sta and style. Together all these elements contribute to superordinate goals of the organisation. McKinsey 7-S framework is more applicable to medium- bigger size start-ups. When you take a look at all the elements in the framework, see if with this strategic option and implementation plan you are working on, how would this implementation plan a ect this framework, or how would this framework a ect the implementation plan. Ask yourself, if we take a look at elements of this framework, especially the hard elements, how can we work towards that implementation plan, or if you have the implementation plan and use the framework to elaborate parts of your implementation plan further. Implementation plan, gives you room to think and makes some educated assumptions, based on research. Leadership & strategic change (next part in implementation plan) Many di erent stakeholders within the business / organisation and you will see their reactions towards these processes and changes of strategy to be implemented or are going to take place. The reactions and changes can sometimes be interesting to obverse and know as well. Leadership In terms of any strategic change, very important are these two components: strategic leadership roles and leadership styles. Leadership roles: top managers, middle managers, several managers and one or two founders, CEO’s, chief technical o cer, marketing director or HR personnel. -> so many di erent individuals within the organisations that are responsible and accountable for the strategic changes that are about to happen. When any strategic change take place, normally it comes into two directions on the right side of the slide. A leader has a certain leadership style: the individual that leads the group. Leadership style = practically into two very common characteristics. 1. Transformational (charismatic) = this leader focuses on building a vision for the organisation. 2. Transactional = individual that focus on ‘hard’ levers of change. Means, it can be an individual that assess the performance or lead based on certain KPI’s. It is more on yellow category (change spectrum), more on change, power, authority, rules and regulations that have been set. Page 31 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? ff ff fi ff ffi ff ff  Stuvia - Koop en Verkoop de Beste Samenvattingen Diagnosing the change context (1) How to look at some of these elements, that might be related to your implementation plan. Method 1: Change Kaleidoscope = very common tool / framework that’s been used for organisations, individuals, entities to assess organisational receptiveness towards change. How do they perceive? How do they expect? How do they react to changes? Divided into subelements: very interesting to look at in terms of ‘how quickly does the change need to take place’ and ‘how much change it expected’, ‘are the employees happy with the change’, ‘do they know it coming’, ‘do they know what to do’, ‘do they know what their responsibilities and accountabilities are’, ‘the vision of roles’, ‘who has the power of in uence’. -> look back at stakeholder analysis or stakeholder salience model and take a look again, which are now the stakeholders that might have a more important in uence or role in this aspect of change, or place in the implementation plan? -> what’s the capability of the resources and the capacity what you can do with the resources, or the (sharing of) knowledge between parent company and a collaboration partner? -> how ready is the workforce towards change? -> how diverse are these changes and visions, in sta groups we are talking about. Change Kaleidoscope = used to assess, see and review the organisational perceptiveness and how ready they are towards change. Diagnosing the change context (2) Another method to look into is to use the force eld analysis by Kurt Lewin. One of those very prominent change models (management and leadership change) force eld analysis: allows you to look at ‘what are the forces that are driving this strategic change that you want to implement’ and ‘what are the forces that are stopping / restraining the organisation from implementing the change’. -> you always have a desire state, a goal that is related to these changes -> so looking at the things, power, processes, people, lacking of the soft or the hard elements of the McKinsey framework, helping the organisation to move towards that strategic change. -> what is stopping the organisation from moving to that strategic change? Page 32 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi fl fi ff fl  Stuvia - Koop en Verkoop de Beste Samenvattingen Types of strategic change - what kind of strategic changes we can anticipate Matrix has four categories / clusters. Very important to look at: at the end, what is the end result that the organisation is expecting vs. The nature of that change. -> the speed, does the organisation wants the strategic change to happen quickly, long-term orientation, short-term orientation and how does the organisation de ne short-term and long-term orientation and what is the amount / volume of changes? In this four, if you would look at revolution - fast, rapid take-over and relating it to market-focus, top management changes, cultural changes - vs. Evolution - change will take, but will take a bit of time, will go slowly and incrementally. organisation ambidexterity: we have a plan, we go with this plan while we also give room to employees and the organisation to look at other opportunities as well. So it is not like a hard push of change, but to allow some space for the organisation to accept the change. It takes some time, but the change will happen. They look at what are the possibilities right now and then slowly bring in those changes, by looking at new possibilities and opportunities Adaptation - change in a product design, innovation, launch of new product, it takes time and slowly adapts itself and slowly realigns itself also towards the mission and vision of the company. Reconstruction - turn-around, rapid (big bang), fast, it takes instantly, for instance cost reduction, for example by laying o employees. This turnaround quick and fast, it harsh but it has to take place - aim is to recover as soon as possible. Picture - rapid vs big bang is vanwege verschillen in versies. Transformation = change that goes beyond current business model and culture - the change is so huge. Realignment = change that is in line with current business model and try to stick to it, the organisation culture, the way the organisation operate, how the organisation deals with the business model. It can also depend on the stages itself, what types of strategic change can be expected and why. Page 33 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi ff  Stuvia - Koop en Verkoop de Beste Samenvattingen When it comes to strategic change, one of the very common steps or framework for change is kotter’s 8 steps for change. Levers (means) for strategic change Kotter’s 8 steps for change, is a framework that is used worldwide by many companies. When it comes to change, Kotter is one of the leading guru in his research and in his steps in transformational change that has been carried out by many organisations. Kotter’s 8 steps for change How Kotter looks for change in an organisation is divided into three important sections. First you create a climate for change: you make sure that everybody knows there is a sense of urgency; some things need to change and certain things need to take place.There is a vision for change, that is supposed to be create for change. The next thing is to engage and include more people in that change process Following to that, how do you make that change a part of the organisation culture: so that every individual, employee, stakeholder know the change and went through the change and the good results that comes out from that strategic change, how do they hang-on to it and how do they consolidate (=making that culture stays) the change In each step there is strengths, weaknesses, advantages and disadvantages. Some companies might nd change a bit challenging. So that sense of creating urgency might not fall into them yet, or the sense of creating vision for the change might be di cult to win these more senior people individuals that have been working longer in the organisation to accept, to be ready to start the change. Certain employees that resists and pull themselves away from change, they do not want anything to do with change, because they are comfortable with where they are. Some individuals are interested in change, they see this is not the way how the business direction should go. How should we then build to that, how do we then look at a certain part of change, what do we need do, what is the responsibility, how do we then make sure that this is distributed, how would this element of change and challenges are then shared among with the employees as well. Page 34 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi ffi  Stuvia - Koop en Verkoop de Beste Samenvattingen Who to include in strategy making When you have the implementation plan (ch. 16) -> who should be included in the strategy making, who is important, who is leading the process, is it broad participation, is everyone in the company involved, or only certain division / certain amount of employees that are related to the parts of the processes that need change, or is it limited participation which means that only a limited number of stakeholders that don’t want to terrify everyone with changes and di culties etc. -> What type of leaders are necessary, what kind of characteristics are you looking upon, what kind of challenges might come into. Page 35 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? ffi  Stuvia - Koop en Verkoop de Beste Samenvattingen Week 3.8 - exam preparation 40 MC questions - 27 correct answers for a 5.5 Most questions about strategic position and strategic choices Chapter 1 - Introducing strategy *1.1 Introduction *1.2 What is strategy? *1.3 Exploring strategy framework? *1.4 Working with strategy *1.5 Studying strategy *1.6 Exploring strategy further Understand what strategy means and read Example question: How in the main literature of exploring strategy, strategy is described as: A a deliberate chosen and logical plan B a short term direction of an organisation C a long term direction of an organisation D a rm’s theory to gain brand loyalty What is strategy being described? - What is a strategy statement? - What is the di erence between mission statement, vision statement, corporate objectives etc. Know what is frugal innovation Three horizons framework Pei Pei is a big fan of graphs and gures and uses this for questions Strategic position: pay attention to resources and capabilities, culture, and stakeholders - practically chapter 4,5 and 6 M&S: industry and macro environment (also part of strategic positioning) Chapter 4 - resources and capabilities 4.1 Introduction 4.2 Foundations of resources and capabilities 4.3 Distinctive resources resources and capabilities as a basis of competitive advantage 4.4 Analysing resources and capabilities 4.5 Dynamic capabilities Core of chapter 4: VRIO framework: understand what is important in the VRIO analysis understand where the framework is about What means VRIO? Example question: which of the following statements is not related to the V criteria of the VRIO framework can also be the R, I, O criteria) A Taking advantage of opportunities and neutralising threats. B Ensuring that resources and capabilities need to add value to customers. C Managing the costs of acquiring resources and capabilities for a product or service. D Ensuring patented products and services for competitive advantages. Page 104 (12th edition): VRIO framework, you have to assess the VRIO framework, to understand what sort of competitive implications there is when you assess the V, R, I and O. What happens? How do you describe? How do you label competition? Page 36 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fi ff fi  Stuvia - Koop en Verkoop de Beste Samenvattingen Understand and memories the table. For example: what belongs to the O, organisational part of the VRIO framework. Probably 2-3 questions about the VRIO framework. SWOT AND TOWS Analysis (page 112 and 113) Example question: what is true about the internal factors? Example question: What is not true about the external factors? Chapter 5 - stakeholders and governance 5.1 introduction 5.2 stakeholders 5.3 corporate governance 5.4 social responsibility Possible question could be about stakeholder mapping (page 133) Stakeholder salience model will not come in the exam. Stakeholder mapping: Understand the quadrants Example question: If you look at the di erent quadrants, what can you tell me about quadrant A? Example question: Can you actually identify what is in quadrant A? A key players B sleeping giants C Irrelevants D Gad ies Example question: a little text about a customer and then place that customer in the right quadrant regarding to the stakeholder mapping? Chapter 6 - history and culture 6.1 introduction 6.2 history and strategy 6.3 culture and strategy 6.4 strategic drift Cultural web - page 173 Description of organisational culture and four di erent layers Look at the case studies that comes along with chapter to understand it better. Example question: diagram included in the question, in this layer, what can you tell about this layer? Example question: if you look at the gure itself, and PP put letter it L in it, what does this letter represent? Example question: which of the following of the statements belongs to the component / element of beliefs, when you take a look at the organisational culture and the di erent layers? Example question: what are the di erent elements and components of the cultural web? What does it means by rituals and routines? What does it means by power and symbols? What does it mean by control systems? What does it mean in the middle; a paradigm? What does it actually mean and how do you relate it to the project company? Page 37 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fl ff fi ff ff ff  Stuvia - Koop en Verkoop de Beste Samenvattingen Strategic drift 174 - 176: understand about the forming of strategy and how is that related to the culture and history of the organisation. The gure of strategic drift Example question: all the di erent phases of strategic drift, what is meant by a ux? How do you explain that in times of time and environmental change? Why is that phase called ux? What happens when there is a transformational of death do company’s just stop? can’t they just move on? Try to understand the axes as well Why is it time against environment? What can you say about the environment less time that has an in uence on the strategic development of the company based on historical events, upcoming historical events and the organisation culture? Strategic choices (from chapter 7 - chapter 11) Business strategy Corporate strategy Entrepreneurship Acquisitions and alliances International is covered in IBA (country analysis) Chapter 7 - business strategy and models 7.1 Introduction 7.4 Business models Business models: try to understand the nine building blocks of the business model canvas. What is value creation? What is value capture? What is value con guration? Page 221 How are the nine building blocks related to value creation, value capture and value con guration within that business model? Business model components Example question: which one of the following does not describe value creation? A target customer and market segment B customer needs and problems C value and bene t D composition and selection of resources and activities - is related to value con guration Example question: which one of the following describes value con guration? Page 224, 225 226: the di erent business models (razor and blade) Example question: why do you think that when you buy a printer and you buy ink and purchase this separately, how would you describe this business model pattern? = Razor and blade Important to know where these di erent business models are about? (freemium, peer-2-peer, razor and blade etc.) Look at the examples of the book Page 38 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? fifi fi fi fl ffff ff fl fi flfi  Stuvia - Koop en Verkoop de Beste Samenvattingen Example question: if we look at Apple, and this and this, how would you then describe? Example question: if you look at mobile telephones and subscriptions, how would you then label this business model? Example question: what could be the advance of business model X? Example question: which of the following is true / not true about business model X? Chapter 8 - corporate strategy 8.1 introduction 8.2 strategy directions 8.3 diversi cation drivers 8.4 diversi cation and performance 8.5 vertical integration 8.6 value creation and the corporate parent Anso matrix (corporate strategy directions): Understand what the quadrants mean? Examples of the quadrants Understand market penetration Understand market development What is meant by diversi cation? What is unrelated diversi cation Example question: here is the gure, try to identify quadrant D for instance Example question: an organisation is going to invest into new markets, but holding on to their existing products and services, which of the quadrants would this be appropriate to? = market development. Drivers of diversi cation (4): What are the drivers of diversi cation? What are the things that helps, that quantify and justify for diversi cation (page 244 - 245) When you at diversi cation: What implications are that for managers? What implications in terms of risk? What implications in terms market decline? What implications in terms economy of scope? Diversi cation drivers (page 244/245) Fourth driver is exploiting superior internal processes Page 244: four potentially value creating drivers Page 245: three potentially value destroying drivers There will be questions about vertical and horizontal integration Try to understand it. Vertical integration (page 248) Backward and forward integration (parts of vertical integration) Example question: The Walt Disney company gains access to modern and innovative technologies to produce digitally animated lms through the acquisition of Pixar animation studios. This example of corporate strategy direction is known as: A unrelated diversi cation B horizontal integration C vertical integration D outsourcing Walt Disney have forward and backward integration. Forward integration of Walt Disney: would be organisations and companies, that sell, or distribute or bring it into retail, these animated lms. Page 39 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? ff fi fi fififi fi fi fi fi fi fi  Stuvia - Koop en Verkoop de Beste Samenvattingen Backward integration of Walt Disney: would be that Walt Disney, wants to work with a supplier of these equipments to produce those animated lms. Horizontal integration: look at the keyword, means buying already Pixar animation, they want to gain modern and innovative technology, so they are buying over Pixar animation to gain, so that means that they don’t have that modern innovative technologies. - it’s about diversi cation, about purchase, bringing new products into the market, while remaining as Walt Disney the true Disney origin, but they also want to bring in new products. - Also related to the Anso Matrix Chapter 10 - entrepreneurship and innovation 10.1 Introduction 10.2 entrepreneurship 10.3 innovation dilemmas 10.4 innovation di usion 10.5 innovators and imitators (Steps) in entrepreneurial process Understand the entrepreneurial process Example question: if you look at step X of the gure, how would you identify step X? Example question: what can you describe about step X? Example question: what does not belong to step X? Page 308: the di erent stages of entrepreneurial growth (start-ups how they grow) How do start-ups meet these venture capitalist coming in? When there are mature, how do they exit? What is mean by serial entrepreneurship? What is meant by social entrepreneurship? Innovation dilemmas Technology push Market pull Product vs process innovation Di usion S-curve (page 319) What does it mean by di usion (= spread / distribution) Do distribution vs. Time Tipping point = where the company grows Example question: what do you understand by the S-curve in innovation di usion? Example question: What are the advantages of a rst mover (10.5) Chapter 11 - mergers, acquisitions and alliances 11.1 introduction 11.2 organic development 11.3 mergers and acquisition 11.4 strategic alliances 11.5 comparing acquisitions, alliances, and organic development Di erent characteristics of this? How do you de ne mergers and acquisitions? What are the elements that are related to that? What are the motives for mergers and acquisitions? What are the managerial motives and what do they consist of? Understand what mergers and acquisitions is about? What do you understand by alliances and organic development? What could be the di erences and characteristics of this? Page 40 of 43 Gedownload door: sasithorn | [email protected] € 912 per jaar Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. extra verdienen? ff ff fi fiffff ff ff ff fi fifi ff  Stuvia - Koop en Verkoop de Beste Samenvattingen Page 338: di erent strategic motives for mergers and acquisitions (managerial, nancial, strategic motives) About 10 questions for strategy in action Strategy in action (from chapter 12 onwards) Chapter 12 - evaluating strategies 12.1 introduction 12.2 organisational performance 12.3 suitability 12.4 acceptability 12.5 feasibility 12.6 evaluation Use to objectively come to a substantial analysis or outcome of the possible strategic choices. SAFe analysis: which strategy is the most appropriate What does it mean by suitability? What does it mean by acceptability? What does it mean by feasibility? What does it mean by evaluation? Page 377 (378 and 379 and 381): table that comes di erent questions about this di erent elements of the SAFe analysis. - Acceptability: the three R’s: risk, return, reactions - How are you going to look at the evaluation of these three components on the choices that you have. Example question: which one of the following criteria is used to evaluate the proposed strategies that addresses the key opportunities and threats of an organisation? (External factors) A suitability criteria B acceptability criteria C feasibility criteria D all of the above Chapter 13 - strategy development process 13.1 introduction 13.2 deliberate strategy development 13.3 emergent strategy development 13.4 implications for managing strategy development Deliberate and emergent Identify, what are the characteristics of deliberate strategy? (Plan ahead the strategy and organisational plans) Identify, what are the characteristics of e