Discussion Notes

Teaching Notes: Finntrack

Strategy: Analysis and Practice ©2005 McGraw-Hill Education Europe

Index
• Workshop – Case Analysis – Debate – Case Questions – How to Use Your Workshop Resources – Disclaimer – Learning Objectives • Multinational Corporations • Introduction to Retailing and IKEA – Introduction to IKEA – Corporate Strategy • Business Analysis – Business Drivers – Quantitative Methods – Strategic Business Analysis – Organisation – Organisational Culture – Financial Statements - The System – Financial Statements - Analysis • Financial Ratios

• Competitive Position: Competitive Advantag – Strategic Planning – Competition – What is Sustainable Competitive Adva – Sustainable Competitive Advantage – Competitive Strategies

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Index
• Strategic Capability: Core Competence – Corporate Capabilities – Core Competency – Strategic Intent – Innovation – Theory of Constraints – Value Chain • IKEA Modified Value Chain – Six Sigma • Global Strategies • Process Analysis for Strategic Decisions – Game Theory • Competitive Strategy: the Analysis of Strategic Position – Lecture • Competitive Strategy: the Analysis of Strategic Capability – Lecture • Global Strategies and International Advantage – Lecture • Process Analysis for Strategic Decisions – Lecture Click on Image

postgraduate and executive level Strategic Management and related programmes and courses using the case studies featured in the text below. The overall aim is to support the learning contents offered in the relevant chapters of the book whilst expanding participants’ knowledge and skills base required to understand. Warwick Business School David Wilson. Warwick Business School Howard Thomas. Warwick Business School . Strategy Analysis and Practice John McGee. review and analyse the decisions taken during the company’s strategy development and implementation processes.Workshop This workshop series is designed to compliment Teaching and Learning Strategies for undergraduate.

analyzing information. They provide a systematic way of looking at events.Case Analysis A case study is a particular method of qualitative research. and what might become important to look at more extensively in future research. collecting data. Click on Image Source: doyleresearch . longitudinal examination of a single instance or event: a case. Rather than using large samples and following a rigid protocol to examine a limited number of variables. and reporting the results. As a result the researcher may gain a sharpened understanding of why the instance happened as it did. case study methods involve an in-depth.

Case Analysis Case studies lend themselves especially to generating (rather than testing ) hypotheses. • The scope and relevance of case studies • Types of case study • Illustrative case studies • Exploratory case studies • Critical instance case studies • Program implementation case studies • Program effects case studies • Cumulative case studies • Business school case studies • Medical case studies • History of the case study • Conclusions • Notable case studies • References • See also • External links Click on Image Source: © Inter IKEA Systems B. 2002-2006 .V.

4. 2. Introduction Business Analysis Competitive Position: Competitive Advantage Strategic Capability: Core Competence Global Strategies Strategic Decision Making You should ensure that you have understood the contents of chapters 6. Also see: How to Use Your Workshop Resources Learning Objectives Learning from Case Studies: A Short Guide for Students . 5.Workshop Debate Workshop discussion topics have been divided into six parts according to the relevant chapters of the book involved in the case study: 1. 3. 6. 7. 11 and 13 prior to attending any of the above debates.

How has the Organisational Culture shaped IKEA’s Business Model? 3. Measure the value of IKEA’s Organisational Culture.Case Questions Please Note: At your instructor’s discretion the indicative questions below and elsewhere in this resource may be varied or deemed unnecessary for teaching and learning purposes for some courses or modules. Also see Learning Using Case Studies for further information Also see A Model for Case Analysis and Problem Solving . Using the information given in the Case Study and this resource. 2. describe the Elements of IKEA’s Organisational Culture. 1.

linked to its source which provides further information on the topic or the copyright holder. indicating ‘previous’ and ‘next’. i. right click on the screen and select your destination from the dialogue box. Alternatively use the small arrowheads.e. The latter may be downloaded free from Microsoft website here. Navigation The Learning Contents (Literature Reviews) are linked to a relevant public domain on the Internet. Most. if not all pictures/images are ‘clickable’.How to Use Your Workshop Resources Viewing You will need either MS PowerPoint program or PowerPoint Viewer installed on your computer. . If your version of PowerPoint does not show navigation buttons on the slide.

. for example. Whilst the publishers will be pleased to take any appropriate corrective action. etc. they unable to assume any legal responsibility for unavailability of any third party material for whatever reason beyond their direct control. by replacing or removing the sources when possible.Disclaimer This information is provided with the understanding that the authors and publishers do not assume any legal responsibility for the completeness or accuracy of the contents or any opinions or views expressed on these pages or linked destination sources. It is the nature of the media (Internet) that some of the pages may not always be available due to broken or dead links. withdrawals.

Learning Objectives The main objective of the workshops is to evaluate IKEA’s corporate strategic planning process and outcomes and their impact on the company’s business level operations. Participants will have an opportunity of developing and enhancing their • strategic thinking and internet research skills • analytical and critical thinking skills by reviewing the factors that influenced corporate centre's decisions on the business .

A G8 Declaration . • • • • Critiques Examples In fiction Furnishings • International Furnishing Market • See also Annual Report on the Guideli The 2005 edition includes a special focus on corporate responsibility in the developing world • Fostering Growth and Promoting a Responsible Market Economy .Multinational Corporations A multinational corporation (MNC) or multinational enterprise (MNE) or transnational corporation (TNC) is a corporation/enterprise that manages production establishments or delivers services in at least two countries.

• Diversified multinational corporations manage production establishments located in different countries that are neither horizontally or vertically integrated.Multinational Corporations Multinational corporations (MNC) are often divided into three broad groups: • Horizontally integrated multinational corporations manage production establishments located in different countries to produce same or similar products. • Vertically integrated multinational corporations manage production establishment in certain country/countries to produce products that serve as input to its production establishments in other country/countries. .

pledges of governmental assistance or improved infrastructure. To compete. or lax environmental and labour standards. must compete with each other to have MNCs locate their facilities (and subsequent tax revenue. employment. and sometimes regions within countries. prospective countries. Click on Image Source: . This process of becoming more attractive to foreign investment can be characterized as a race to the bottom. countries and regional political districts offer incentives to MNCs such as tax breaks. Given their international reach and mobility.Multinational Corporations Multinationals have played an important role in globalization. and economic activity) within.

Marketers see retailing as part of their overall distribution strategy. either directly or through a wholesaler. Retailers are at the end of the supply chain. Click on Images Source: © Inter IKEA Systems B.V. 2002 .Introduction to Retailing Retailing consists of the sale of goods/merchandise for personal or household consumption either from a fixed location such as a department store or kiosk. a retailer buys goods or products in large quantities from manufacturers or importers. usually in a shop. also called store. and then sells individual items or small quantities to the general public or end user customers. or away from a fixed location and related subordinated services.[1] In commerce.

Introduction to Retailing • • • • Shops and stores Retail pricing See also References Click on Image. Larger Image Source: San Diego State University .

[2] IKEA is famous for its affordable furniture which consumers are required to assemble for themselves. containing about 12. It has 231 stores in 33 countries. IKEA is generally pronounced (IPA /i'ke. Asia and Australia. the rest in the United States.wikipedia. most of them in Europe.a/) but in many English-speaking regions. and distributed free of charge.org . IKEA is one of the few store chains to have locations both in Israel and in other Middle Eastern nations. it is pronounced (IPA /aɪ'ki:ə/) rhyming with the word "idea". More than 20 opened during 2005. is printed in 160 million copies (2006) worldwide.Introduction to IKEA IKEA is a Swedish home furnishings retailer. The IKEA catalogue. Canada.000 products. Click on Image Source: en.

1999 .Introduction to IKEA • • • • • • • • • • • • • • • • • • Overview Organization History Products Financial Community Impact Store Format Corporate structure Criticisms Diversity Design Reform IKEA Organisational Culture Popular Culture IKEA's Debut in Each Country Corporate Strategy See also Notes External links • Data • Directory Click on Image Source: Inter IKEA Systems B.V.2006 .

The corporate culture of Ikea is built upon this philosophy all the way from design teams to suppliers and to the customer. 1994: 38). Click on Image Source: IKEA Deutschland . Due to the uniqueness of Ikea's strategic positioning.a glorious future! Time is your most important asset. A continuous strife for improvement in all areas of the value chain is an effective way to shape the industry to better fit Ikea's future strategies. Laurance. the firm has the advantage of setting the phase of the industry. believes that: "Most things still remain to be done . being the largest competitor in its field.Introduction to IKEA Ingvar Kamprad. Split your life into10minute units and sacrifice as few as possible to futurities" (Mclvor.

1993: 78). such as only flying economy class and stay at economical hotels. Kamprad believes that "simplicity and common sense should characterize planning and strategic direction" (Bartlett et Al.Introduction to IKEA Bureaucracy is fought at all levels in the organization. In addition. the culture emphasizes efficiency and low cost which is not to be achieved on the expense of quality or service.csd. employing young executives and sponsoring university programs have made cost part of corporate culture and has further inspired the influx of entrepreneurship into the organization.uwo.ca . Source: Johan Olsson Click on Image Source: www. Symbolic policies.

Introduction to IKEA For instance. but are expected to design new appealing products regularly. all design teams enjoy complete autonomy in their work. Click on Image Source: Themanager.org .

Case Study: How Ikea of Sweden Got to India • Marketing • Advertising and Public Relations • Management Strategy Re. but its furniture c . Case Study: How Ikea of Sweden Got to India • Also see • In India. 2002 • Cultural Challenge • Corporate and Social Responsibility • Conclusions Re. it’s IKEA without the assembly • Ikea knockoffs a hit with India's elite Swedish chain has no stores there. Larger Image Source: © The M. Case Study: How Ikea of Sweden Got to India Click on Image. Polo Group.Corporate Strategy • Background • Objectives • International Strategy Case Study: How Ikea of Sweden Got to India • Financial Strategy Re.

1999 .2004 .Background Background • The Values that Characterize IKEA • Vision • Objectives • Mission (IKEA Concept) • Product • Turnover • Stores • Store Openings 2005 .V.2006 • IKEA Catalogue • IKEA Franchising © Inter IKEA Systems B. 2003 .Corporate Strategy .2006 Click on Image Source: © Inter IKEA Systems B.V.

co. Specifically IKEA’s key objectives are to: • Identify target consumer types and geographic areas for distribution of catalogue • Identify types and areas with poor sales potential • Increase sales return on catalogue expenditure • Develop business strategy Source: caci.Corporate Strategy .Objectives The Challenge IKEA want to increase the return on investment for the catalogue distribution.uk . IKEA needs to ensure that catalogue distribution is targeted to reach people who are likely to be or become IKEA customers in terms of their demographic attributes and their likelihood to travel to the store. and remain ahead of the competition in terms of business strategy. IKEA requires a solution to maximise their return on investment while expanding their appeal and maintaining their dominant market position. which is a substantial investment.

Source: © Transcultural Synergy Ltd Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India .International • The Internationalization of IKEA • Joint Ventures • Alternative Entry Strategies • Expansion by Franchising • Supporting Organizational Structure • Balance of Autonomy and Strategic Direction Click on Image. Larger Image.Corporate Strategy .

Joint Ventures mean even more.International Joint Ventures Ikea will need to look at joint ventures and strategic alliances to become successful in the Indian market. Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India . These in turn will have to form alliance and joint ventures to raise enough capital to develop the links necessary to form a successful entity. It is expected that they will therefore be more contentious of operations and therefore be more successful. They establish that the local owner/operators become an integral part of the stakeholder group. In high-risk markets (defined as those that are not similar to Scandinavian markets) Ikea's local market strategy is to develop supplier links in the host country. This is meant to reduce the strategic risk that may result from political legal and financial issues.Corporate Strategy . Ikea's first step will be to find franchise owners. the suppliers can provide valuable input into the opportunities and threats. By developing a relationship with local suppliers. Since the government requires that local business operations require 51% control by Indian nationals.

Corporate Strategy .Financial International Financial Market • The Foreign Exchange Market Foreign Exchange Market • Currency options and futures Derivatives traders at the Chicago Board of Trade. Foreign Exchange Options by Wikipedia Click on Image Source: Wikipedia Main Text Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India .

Investment money taken from reserves of other operations may not carry any interest cost and therefore be a cheaper source of investment.000 items) is quite high when considering: • • • • • Building acquisition. if Ikea decides to franchise its operations there. Return of profit/royalties to Ikea of Sweden could be facilitated in the transfer of product produced in India thus increasing the marginal return from everyone involved. the problem of financing the operation is taken care of through franchising fees and royalties.Corporate Strategy .Financial Financial Strategy The cost of establishing a new store (approximately 22. layout and design Sourcing franchise owners and human resources Establishing local supplier links Advertising and promotion of the new location (catalogues are expensive) Stocking the new store The advantage of borrowing money locally is that the cost of borrowing will be protected from inflation and exchange rate fluctuations. In the case of India. Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India .

power. so cost reductions must rely on other overhead such as store. Even Scandinavian designs could be reproduced in India. but the Ikea store concept requires little human resources. Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India . taxes and advertising. Except in the largest cities. product will have to be modified to lower price categories and volumes will have to increase to offset the difference.Corporate Strategy .Financial Financial Strategy Profits Profits in India should be maintained at a similar level to other countries. Since the per capita income of Indian peoples is substantially lower than other markets. warehousing. Probably the most effective method for cost reduction is to source a higher percentage of goods form India. Labour costs are substantially lower in India. operation costs should be lower than Western Europe.

1999 .Marketing Marketing Printable Fact Sheets: • The IKEA catalogue • How IKEA creates its low prices • How IKEA is organised • IKEA products are manufactured all over the world • The right quality for IKEA products • IKEA provides solutions for all domestic needs • IKEA stores .2006 Click here to IKEA main menu .from supplier to store Click on Image Source: Inter IKEA Systems B.Corporate Strategy .everything under one roof Distribution .V.

they have to assemble the products themselves.Marketing Marketing Ikea does not have its own manufacturing facilities.2006 Source: Johan Olsson.V. Car roof racks are available for purchase at cost and Ikea pick-up vans/mini trucks are available for rental (Economist.Corporate Strategy . Ikea shoppers are Pro-sumers . In order to maintain low cost. shopping lists and pencils for writing notes and measurements. Click on Image Source: Inter IKEA Systems B. 1999 . 1994: 101). In other words. Instead. All research and development activities are. centralized in Sweden. however. Ikea provides catalogs. 1996 . To facilitate shopping. it is using subcontracted manufacturers all over the world for supplies. 1993: 70). and half consumers (Normann. tape measures.half producers.

According to Ikea's logistics manager.2006 Source: Johan Olsson. For that. 1993: 12). Ikea has developed its own global distribution network. Click on Image Source: Inter IKEA Systems B.V. "there are a lot of Just-In-Time concepts built into how we're trying to do business" (Chandler. Ikea believes that a strong in-stock position in which the most popular style and design trends are correctly anticipated is crucial to keep satisfied customers.Marketing Marketing Effective marketing through catalogues usually attracts the customer at first. what keeps customers coming back is good service.Corporate Strategy . Ikea depends on leading-edge technology. 1999 . 1996 .

2006 Source: Johan Olsson. the firm is able to insure timely deliver of products to retail stores all over the world.V. Click on Image Source: Inter IKEA Systems B.Marketing Marketing By utilizing control points in the distribution cycle. 1999 .000 square feet in Hong Kong and in Singapore to 500.000 square feet in Stockholm. Ikea has over 1. 1996 . Ikea's. Internationally. 1995: 78). marketing manager believes that Consumer tastes are merging globally. these stores range in size from 20.Corporate Strategy . Sweden.800 suppliers located in over 50 different nations (Retail Business.000 to 30.

1996 .Marketing Marketing In one example. Ikea now market "American style" furnishings for the European market. In order to respond to this new demand. Click on Image Source: © 2006 by the US-China Business Council Source: Johan Olsson. Ikea.Corporate Strategy . which has been importing the "streamlined and contemporary Scandinavian style" to the United States since 1985. as Europeans are picking up on some American furnishing concepts. found at least one opportunity to export an American style to Europe.

Ikea also keeps costs down by packing items compactly in flat standardized embalages and stacking as much as possible to reduce storage space during and after distribution in the logistics process (Economist. 1994: 101). 1993: 12) Costs are kept under control starting at the design level of the value-added chain. but to design a functional and good desk which shall cost $50 can only be done by the very best. Source: Johan Olsson. "To design a desk which may cost $1." (Chandler.000 is easy for a furniture designer. Expensive solutions to all kinds of problems are often signs of mediocrity. 1996 Click on Image Source: Forbes . According to Ingvar Kamprad. the founder of Ikea.Marketing Advertising and Public Relations Ikea's success is based on the relatively simple idea of keeping the cost between manufacturers and customers down.Corporate Strategy .

Corporate Strategy . IKEA print ad • IKEA print ad “Any table can become a smorgasbord” • IKEA promotion page “Office of Decorum” Click on Image Source: © 1995–2006 Art.Advertising and PR Advertising and Public Relations • Online Promotion • IKEA stand at HotelExpo 2006 exhibition • IKEA catalog “Furnishing Recipes for Hotels Big and Small” • “Fixhult” print ad for IKEA • “Uninterruptible Food Supply”. Lebedev Studio .

2006 .Corporate Strategy . an IKEA print ad • IKEA B-to-B website • B2B IKEA • Do you know what’s the Swedish for “thanks”? Click on Image Source: Inter IKEA Systems B. 1999 .V.Advertising and PR Advertising and Public Relations • “Four Neat Examples of Orderly Business Practices”.

which indicates that earlier discussed focused generic.Corporate Strategy . So this company actively expands in this field as well. Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India .Management IKEA Management Strategy IKEA is a very successful multinational corporation. Franchisees have to carry basic items. but have the freedom to design the rest of the products. high risks markets by franchising. or long-term strategy of cost leadership and product differentiation has served it well. IKEA has a lot of subsidiaries in many countries of the world. IKEA approaches unknown. small. Click on Image. Larger Image Source: Kanji Quality Culture Also see Management by Wikipedia.

Corporate Strategy .Management • Cost leadership as a part of the management process • Differentiation strategy Click on Image Source: Professional Management Review Africa .

1999 . at this stage.2006 Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India .Culture Cultural Challenge In international business.Corporate Strategy . the company gets a comfortable way in the settlement of the new culture. the irritation-hostility stage.V. the gradual adjustment and the bi-culturalism. the culture is very important and we can consider one fundamental element " the culture shock" where there are several stages in the difference of the country’ culture: the honeymoon stage (we know that it is a new culture and we want to be there). Click on Image Source: Inter IKEA Systems B.

India’s culture has been enriched by successive waves of migration. few countries in the world have such an ancient and diverse culture as India. the Indian Council for Cultural Relations (ICCR) has been working to project Indian culture abroad and to bring to India the rich manifestations of international culture. Modern India presents a picture of unity in diversity to which history provides no parallel. which were absorbed into the Indian way of life. And.Culture Cultural Challenge But.Corporate Strategy . Doing Business in India Source: © 2000-2005 Executive Planet Inc. Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India . the diversity lies the continuity of Indian civilization and social structure from the very earliest times until the present day. Moreover. It has thus become a major vehicle of international cultural exchange.

Corporate Strategy .com Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India . which has been accompanied by significant social changes and an increasing awareness about issues. This period has also seen the burgeoning of the voluntary movement in India. because it is also an Art of social. We cannot rule out the Indian Art. Click on Image Source: india-seminar.Culture Cultural Challenge We can also focus on the Indian’s process of development. the Government makes constant attempts to promote values like democracy and independence and India is working to have equal opportunities in all spheres of life. political and religious influences. It changed and evolved with the evolution of a civilization. Today. which is full of remarkable innovation.

we can make point on Indian religion.Culture Cultural Challenge Finally. So in doing business with India. So. misunderstanding and also some troubles.com Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India . Click on Image Source: © 2003 international-business-center. IKEA have to make attention with the culture and the communication (verbal and non-verbal) because the communication can be interpreted in different meanings and can provoke some mistakes. because it is another way of life and an entire part of Indian tradition.Corporate Strategy . the firm has to be careful with the context where it decides to set up its business.

IKEA makes good business while being a good business. IKEA CSR activity involves three main areas: children. 1999 .Corporate Strategy CSR Corporate and Social Responsibility “Is it possible to make traditional business objectives and social and environmental responsibility work together for the benefit of the many? We believe they can work very well together.V.2006 .” Click on Image Source: Inter IKEA Systems B. We realize that we are only at the beginning and we have a long way to go but we are proud of the results achieved so far. better living and environmental projects.

Corporate Strategy .2006 . And for these products to be manufactured in a socially responsible way. • Low price but not at any price • The IKEA code of conduct • We use resources wisely • Projects we support • Read our brochure and report • UK corporate and social responsibility ” © Inter IKEA Systems B.V.CSR Corporate and Social Responsibility “IKEA wants its products to have the minimum impact on the environment. 2003 .

CSR Corporate and Social Responsibility • Special Report: Tackling Child Labour • Child Labour Resource Guide Source: .Corporate Strategy .

Corporate Strategy - Conclusions
Conclusion, Appendices and References
Together with innovative changes in the value chain, where consumers become Pro-sumers and suppliers are turned into consumers, the concept of marketing high quality products at low cost through a focused generic strategy, intended for the globally emerging middle-class has served Ikea well. Centralized control and product standardization is two necessary components of the firm's long-term strategy. In addition, the company has facilitated its international expansion through owned subsidiaries subsidiaries and franchises. Future localization pressures will force Ikea to change its global strategy in order to become more sensitive to local demands. Greater emphasis on joint ventures and strategic alliances represent possible vehicles to further build on Ikea's focus strategy. A new transnational oriented organizational structure would further provide the necessary infrastructure needed to support such vehicles towards true internationalization. This in turn would impact on the present homogenous Scandinavian culture and introduce new values, ideas and, perhaps, broaden Ikea's core competencies.
Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India

Business Analysis
1. 2. 3. 4. 5. Benefits of Business Analysis Roles of Business Analysts Business Process Improvement Goal of Business Analysts External Links

Also see Quantitative Method From Wikipedia, the free encyclopedia
Larger Image Source: BizEd Click on Image

Business Drivers
Also see

• Association of Master Upholste

• Furniture Industry Research As (FIRA) • Kitchen Specialists Association (KSA) • National Bed Federation (NBF) • The association for British Furn (BFM) • Economic Value Added

Larger Image Source: Metapraxis

McCarthy Ohio University 1: 2: 3: 4: 5: 6: 7: 8: 9: Functions & Economic Relationships Economic Models/Linear Models Basic Differential Calculus Optimisation Functions of Several Variables Unconstrained Optimisation Constrained Optimisation Growth & Dynamics Introduction to Difference Equations Source: Bob Beachill Leeds Metropolitan University beach@thenet.uk .co.Quantitative Methods Quants Handbook Lecture Lecture Lecture Lecture Lecture Lecture Lecture Lecture Lecture Click on Image Source: Brian C.

• norms and • customs • Organisational Capabilities • Financial Analysis Click on Image Source: QuantAA Larger Image Click on Image Source: Wikipedia . • values.Strategic Business Analysis SWOT Analysis • PEST market analysis tool • Porter's Five Forces Model • Resources and Capabilities • Value Chain • Managing Your Value Chain • Organisation • Organisational Culture • attitudes. • beliefs.

The term is used in both daily and scientific English in multiple ways. • • • • • • • • • • • • Organization terms Organisation in sociology Organisation in management and organisational studies Organization theories Organizational structures Pyramids or hierarchies Committees or juries Staff organization or cross-functional team Matrix organization Ecologies "Chaordic" organizations See also • Related lists Click on Image.Organisation An organization or organisation (read more about -ize vs -ise) is a formal group of people with one or more shared goals. Larger Image. The word itself is derived from the Greek word ὄργανον (organon) meaning tool. Source: Howell & Costley • References .

com .Financial Statements: The System Larger Image Larger Image Click on Images Source: I nvestopedia.

com .Financial Statements: Analysis 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) Financial Financial Financial Financial Financial Financial Financial Financial Financial Financial Financial Statements: Statements: Statements: Statements: Statements: Statements: Statements: Statements: Statements: Statements: Statements: Introduction Who's In Charge? The System Cash Flow Earnings Revenue Working Capital Long-Lived Assets Long-Term Liabilities Pension Plans Conclusion Larger Image Click on Image Source: Investopedia Inc Printer friendly version (PDF format) Source: Investopedia.

The numerator or denominator may itself be a ratio (PEG ratio). It may be a level divided by a financial flow (price/earnings). It may be two financial flows categories divided by each other (profit margin. It may be a flow divided by a level (return on equity or earnings/equity). profit/revenue).Financial Ratios A financial ratio is a ratio of two numbers of reported levels or flows of a company. Source: Baarns Consulting Group • See also • External links . • Ratios • • • • • • Flow-to-flow Level-to-level Ratio-to-ratio To cash flow To earnings To market cap Larger Image Download Financial Ratio Analysis (177K) for Microsoft Excel.

Competitive Position: Competitive Advantage Literature Review • Strategic Planning • Competition • What in the World is Competitive Advantage? • Competitive Postion: Competitive Advantage • What is Sustainable Competitive Advantage • Sustainable Competitive Advantage • Creating Business Value • Interest Alignment Rents and Competitive Advantage Click on Image Source: BRS • Performance measures to support competitive advantage Click on Image Source: businessballs.com .

Ten3 East-West Also see Annotated Lecture Outline . GIVIS.Competitive Position: Competitive Advantage Literature Review • Competitive strategy • Michael Porter: Generic Strategies • Risk-related Challenges Larger Image Click on Image Source: Vadim Kotelnikov.

Strategic Capability: Core Competence Literature Review • Corporate Capabilities • Core Competency • Strategic Intent • Innovation • New Paradigm: Resource-Based Theory • Theory of Constraints • Value Chain • IKEA Modified Value Chain • Organisational Culture • Organisational Structure • Economic Value Added • Six Sigma Also see Annotated Lecture Outline Larger Image Click on Image Source: Sumitomo Corporation .

2004 . Models of Competitive Advantage and Skills • The Competition of Countries • Competitiveness of Nations: The Fundamentals • Economist Country Briefings • Institutions and Business Strategies in Emerging Economies: A Study of Entry Mode Also see Annotated Lecture Outline Click on Image Source: Agrium Inc.Global Strategies Literature Review • Going Global: Assess Market Opportunities • Globalization.

Strategic Decision Making Literature Review • Decision Theory • Decision Making • Game Theory • The Future of Game Theory Click on Image Source: Yale Economic Review Also see Annotated Lecture Outline .

which by definition has to focus more on the tactics of individual detailed activities). Click on Image Source: Long Range Planning . As we label a piece of planning "strategic" we expect it to operate on the grand scale and to take in "the big picture" (in contradistinction to "tactical" planning.Strategic Planning Strategic planning consists of the process of developing strategies to reach a defined objective.International Journal of "Long range" planning typically projects current activities and programs into a revised view of the external world. thereby describing results that will most likely occur (whether the planner wants them or not!) Also See Introduction to Strategic Management .

Click on Image Source: learningworks@telus.Strategic Planning "Strategic" planning tries to "create" more desirable future results by (a) influencing the outside world or (b)adapting current programs and actions so as to have more favorable outcomes in the external environment.net .

Department of Engineering • Mission statements and vision statements • Why strategic plans fail • External links . objectives and targets . Larger Image • Measurements Source: University of Cambridge • Goals.Strategic Planning • Methodologies • Situation Analysis • Identifying cultures • Perspectives • Ethnographical versus Clinical approach • Functionalistic versus Interpretionistic approach • Artifacts • Visible artifacts • Invisible artifacts • Culture types • Changing cultures and strategy • Approaches • Resistance Click on Image.

including economics. systems. or out of a biological imperative such as survival.Competitive Position: Competitive Advantage Competition is the act of striving against another force for the purpose of achieving dominance or attaining a reward or goal. • Sizes and levels of competition • Consequences of competition • Competition in different fields • • • • • Economics and business competition Competition in biology and ecology Competition in politics Sports competition Competition in education • The Study of competition • Competitiveness • Econometrics • See also Click on Image Source:Brecker Associates . or groups. life forms. depending on the context in which the term is used. individuals. politics. Competition is a term widely used in several fields. agents. and sports. Competition may be between two or more forces. business.

Sustainable Competitive Advantage • Owning Competitive Advantage • Competition • Hypercompetition Larger Image Click on Image Source: Vadim Kotelnikov. Ten3 East-West . GIVIS.

Larger Image Click on Image Source: Infosys Consulting .Sustainable Competitive Advantage In marketing and strategic management . sustainable competitive advantage is an advantage that one firm has relative to competing firms. for example P&G' ability to derive superior consumer insights and implement them in managing its brand portfolio. The source of the advantage can be something the company does that is distinctive and difficult to replicate. also know as a core competency.

instead of the traditional vertically integrated value chains. • Meltdown of the Value Chain Impact of rising strength of emerging economies on market expansion Role of emerging market conditions on first mover advantages Sources of first mover advantages in emerging markets Strategies to sustain these advantages Source: General Management Review • Complementing for Complexity: Leading Through Managing The first mover in an e . organizations must adopt business models based on independent layers of value-creating activities. As a result.Creating Business Value Information technology facilitates new and more efficient way of creating business value in the new economy.

net Image by benchmarkporter.com .Competitive Strategy: Michael Porter • Michael Porter: Generic Strategies Larger Image Click on Image Source: www.tutor2u.

Strategic Capability: Core Competence • Internal capabilities • Corporate capabilities • Resource-based view • Capabilities in the new economy • Synergy • Patents • Effective leadership • Teamwork • Continuous learning • Tacit knowledge Larger Image Click on Image Source: Vadim Kotelnikov. Ten3 East-West . GIVIS.

Core Competency • Core Competency • The Work of Hamel and Prahalad • Sustainable competitive advantage • Synergy • The Competence Problem • Principles and Functions of Management .Henri Fayol • Qualities of a Successful Manager • The Motivation and Performance Obsession • Leadership and Management • Managerial Competency Questionnaire Click on Image Source: Forio Corporation Larger Image .

GIVIS.Strategic Intent • Corporate Vision. Goals and Strategies • Your Enterprise Strategy • Dynamic Business Strategy • Strategy Innovation • Marketing and Selling • Strategic Thinking • New-to-the-World Product Development • Managing Your Value Chain • Strategy Implementation Larger Image Click on Image Source: Vadim Kotelnikov. Mission. Ten3 East-West .

Innovation • Efficiency Improvement • New ways of doing business • New rapidly globalizing economy • Technological innovation • Technology Transfer • Fast Company • Reaching and servicing customers • The Entrepreneur • Innovation project management • Roadmaps • Guiding principles • Business processes Click on Image Source: Vadim Kotelnikov. Ten3 East-West . GIVIS.

Ten3 East-West .New Paradigm: Resource-Based Theory • Strategic Marketing and the Resource Based View of the Firm • Business Strategy • Setting Objectives & Planning • Customer Satisfaction • Performance Management • Performance Measurement System • Balanced Scorecard (BSC) • Service-Profit Chain • Sustainable Growth Strategies • Porter's Five Forces Model for Industry Analysis • Economic Value Added (EVA) • Business Architect Larger Image Click on Images Source: Vadim Kotelnikov. GIVIS.

• The Thinking Process (TP) • Throughput Accounting • Application-specific TOC solutions • Operations • Supply Chain / Logistics • Finance and Accounting • Project Management • Marketing and Sales • The Six Necessary and Sufficient Questions relating to Technology • Development and practice • Also See • References Larger Image Click on Image Source: Osaka Gakuin University A Guide to Implementing the Theory of Constraints (TOC) .Theory of Constraints Theory of Constraints (TOC) is a body of knowledge on the effective management of (mainly business) organizations. Goldratt. as systems. The author is Eliyahu M. with many others contributing to the body of knowledge.

Value Chain Click on Image Source: Vickers .

on the other hand. Primary actives include production. Secondary activities. . are identified as support processes to primary activities.primary and secondary. The value chain approach identifies two major activities. logistics and after-sale functions. 1993: 211). marketing.IKEA Modified Value Chain Michael Porter argues that an organization can enhance its competitive positioning by performing key internal activities in the value chain at a lower cost and better than its competitors (Bartol et al.

but rather to create it (Norrmann et al. Human Resource Management. . firm infrastructure. knowledge and transportation. the customer is a supplier of time. and procurement. The company wants customers to understand that their role is not to consume value. suppliers.IKEA Modified Value Chain These include. the suppliers are customers. Technology development. Ikea has modified the value chain approach by integrating the customer in the process and introducing a two-way value system between customers. On the other hand. 1993: 67). and Ikea's headquarters. labor. In this global sourcing strategy. information. 1993: 184187). The ultimate purpose of the firm is to add as much customer "value" in each of the primary activities (Pearce et. al. receiving technical assistance from Ikea's corporate technical headquarters through various business services.

In order to furnish the customer with good quality products at a low cost. The headquarters provides carefully selected suppliers with technical assistance. this value-chain modification differentiates Ikea from its competition. the firm must be able to find suppliers that can deliver high quality items at low cost per unit.IKEA Modified Value Chain Ikea's role in the value chain is to mobilize suppliers and customer to help them further add value to the system. but also add internal value to the suppliers (Normann et al. In addition. and what they are expected to add to the final process. This long-term supplier relationship does not only produce superior products. . Customers are clearly informed in the catalogs of what the firm's business systems provides. leased equipment and the necessary skills needed to produce high quality items. 1993: 72).

norms and customs of an organization. Carolina . Whereas organizational structure is relatively easy to draw and describe. values. beliefs. Larger Image Source: University of N. • • • • • • • • • • • • • Influences on organizational culture Strong/Weak cultures Classifying organizational culture Johnson’s Cultural Web Hofstede Deal and Kennedy Charles Handy Edgar Schein Elements of culture Critical Views on Organizational Culture Figures in organizational culture See also Sources Click on Image. It is also called Company Culture. organizational culture is considered to be less tangible and more difficult to measure.Organisational Culture Organizational culture comprises the attitudes.

Larger Image Source: © 2004-2006 Visitask . • Pre-bureaucratic • Bureaucratic • Functional Structure • Divisional Structure • Post-Bureaucratic • Matrix organization • Multi-Unit Organization • Adhocracy • See also Click on Image. The main concerns are effective communication and coordination.Organisational Structure Organizational structure is the way in which the interrelated groups of an organization are constructed.

Economic Value Added What Does Economic Value Added Really Mean? Click on Images for further information Source: David Harper. (Contributing Editor .Investopedia Advisor) Larger Image .

Quest Diagnostics.ca . Originally. and a methodology to reduce defect levels below 3. Lear. Siemens. Raytheon. Six Sigma is a registered service mark and trademark of Motorola. Larry Bossidy and Jack Welch. Seagate Technology.4 Defects Per (one) Million Opportunities (DPMO).Six Sigma Six Sigma was pioneered by Bill Smith at Motorola in 1986[1]. Inc[3]. it was defined[2] as a metric for measuring defects and improving quality. Other major organizations who claim to have benefited from Six Sigma implementation are Ford. played a vital role in popularizing Six Sigma. Click on Image Source: KETCH. Motorola has reported over US$17 billion savings[4] from Six Sigma to date. 3M and many more. Caterpillar. Microsoft. Merrill Lynch. Their CEO's. AlliedSignal and GE became early adopters of Six Sigma and reported benefits of over US$300 million during its first year of application[5].

All rights reserved. • References • See also • External links .Six Sigma • Definition • Application & Success • • • • • Healthcare Banking Insurance Construction Military • Methodology • DMAIC • DMADV • Roles Required for Implementation • Examples of Some Key Tools Used • Criticisms of Six Sigma • • • • • Of its origin Of the term: Six Sigma Of statistics Of methods Of effects Click on Image Source: QCI International.

University of Bristol Click on image for further information .Global Strategies Globalisation Larger Map Source: BizEd.

political and cultural exchanges. brought about by modern communication. • • • • • • • • • • • Meaning & Debate History Nature and existence of globalization Characteristics Anti-globalization Pro-globalization (globalism) Other uses Measurement of Globalization Notes See also External links Illustration by Viktor Koen for Newsweek .Global Strategies Globalization (or globalisation1) refers to the worldwide phenomenon of technological. transportation and legal infrastructure as well as the political choice to consciously open cross-border links in international trade and finance. economic.

The concept is highly important in modern international trade theory.Comparative Advantage In economics. • Origins of the theory • Analysis of Ricardo's theory • • • • Examples Example 1 Example 2 Example 3 • • • • More complexities References See also External links Click on Image Source: Pakissan.com . but rather the ratio between how easily the two countries can produce different kinds of things. the theory of comparative advantage explains why it can be beneficial for two countries to trade. What matters is not the absolute cost of production. even though one of them may be able to produce every kind of item more cheaply than the other.

its economic. social. Amber Road). Industrialization.International Trade International trade is the exchange of goods and services across international boundaries or territories. While international trade has been present throughout much of history (see Silk Road. In most countries. multinational corporations. it represents a significant share of GDP. and outsourcing are all having a major impact. globalization. and political importance has been on the rise in recent centuries. • International trade theory • • • • Ricardian model Heckscher-Ohlin model Specific Factors Gravity model • Regulation of international trade • Risks in international trade • Economic risks • Political risks • See also • External links • Data Click on Image Source: Copyright © 2006 Time Inc. Increasing international trade is the usually primary meaning of " globalization". . advanced transportation.

A G8 Declaration developing world .Multinational Corporations A multinational corporation (MNC) or multinational enterprise (MNE) or transnational corporation (TNC) is a corporation/enterprise that manages production establishments or delivers services in at least two countries. • • • • Critiques Examples In fiction See also Annual Report on the Guideli The 2005 edition includes a special focus on corporate responsibility in the • Fostering Growth and Promoting a Responsible Market Economy .

. • Diversified multinational corporations manage production establishments located in different countries that are neither horizontally or vertically integrated. • Vertically integrated multinational corporations manage production establishment in certain country/countries to produce products that serve as input to its production establishments in other country/countries.Multinational Corporations Multinational corporations (MNC) are often divided into three broad groups: • Horizontally integrated multinational corporations manage production establishments located in different countries to produce same or similar products.

prospective countries. and economic activity) within. Click on Image Source: .Multinational Corporations Multinationals have played an important role in globalization. pledges of governmental assistance or improved infrastructure. To compete. This process of becoming more attractive to foreign investment can be characterized as a race to the bottom. employment. Given their international reach and mobility. must compete with each other to have MNCs locate their facilities (and subsequent tax revenue. countries and regional political districts offer incentives to MNCs such as tax breaks. or lax environmental and labour standards. and sometimes regions within countries.

Decision Theory Decision theory is an interdisciplinary area of study. economics. and psychology. • Normative and descriptive decision theory • What kinds of decisions need a theory? • Choice between incommensurable commodities • Choice under uncertainty • Pascal's Wager of choice under uncertainty • Alternatives to probability theory • Intertemporal choice • Social decisions • • • • Complex decisions Paradox of choice See also References Larger Image Click on Image Source: Times Books . related to and of interest to practitioners in mathematics. It is concerned with how real decision-makers make decisions. and with how optimal decisions can be reached. philosophy. management. statistics.

Click on Image Source: Cognitive Technologies . Every decision-making process produces a final choice. Therefore decision-making is a reasoning process which can be rational or irrational. It can be an action or an opinion. . and can be based on explicit assumptions or tacit assumptions.Decision Making Decision making is the cognitive process of selecting a course of action from among multiple alternatives. It begins when we need to do something but we do not know what.

Decision Making • • • • • • • • • • • • Decision making style Cognitive and personal biases in decision making Cognitive neuroscience of decision making Decision making in groups • Principles Decision making in one's personal life Decision making in healthcare Path dependency Decision making in business and management See also References External links Some important research journals Larger Image Click on Image Source: DM Review .

Beginning in the 1970s. game theory has been applied to animal behavior. game theory is now used in many diverse academic fields. Larger Image Click on Image Source: David D Friedman . psychology to philosophy. including species' development by natural selection. Finally. First developed as a tool for understanding economic behavior. in which rational selfinterest hurts everyone. game theory has recently drawn attention from computer scientists because of its use in artificial intelligence and cybernetics. game theory has been used in political science. ranging from biology. ethics and philosophy. Because of interesting games like the prisoner's dilemma.Game Theory Game theory is a branch of applied mathematics that studies strategic situations where players choose different actions in an attempt to maximize their returns.

Wiens: Egwald Web Services Ltd Also see Game Theory. Strategic Behavior. and Oligopoly .Game Theory • Representation of games • Normal form • Extensive form • Types of games • • • • • Symmetric and asymmetric Zero sum and non-zero sum Simultaneous and sequential Perfect information and imperfect information Infinitely long games • Uses of game theory • Economics and business • Descriptive • Normative • Biology • Computer science and logic • Political science • Philosophy • History of game theory • Notes • References Larger Image Click on Image Source: Elmer G.

Competitive Advantage 1/4 Lecture Opening Remarks It is useful to start the session by recapping on the previous lecture and emphasizing the notion of ‘strategy as imperfection’ or the quest for ‘unfair’ advantage. Larger Image Click on Image Source: Wikipedia . pricing and strategy. This lecture explores the idea of competitive advantage in more detail and puts some flesh on the bare bones of generic strategies introduced in the preceding session. The Market Positioning School A recap on the ‘generic strategies’ framework introduced briefly in the last chapter and restatement of the stuck in the middle hypothesis.Competitive Position . The lecture focuses on the idea that strategy is about the position of an organisation with respect to its markets and competitors (the so called market-based or positioning school) and looks at the relationships between market structure.

7.. The Nature and Source of Differentiation Advantage A more detailed look at the nature and source of differentiation advantage and the risks associated with this strategy emphasising the difference between differentiation and cost based strategies. An explanation of firm-specific imperfections as the source of competitive advantage and the interrelationship between industry structure and competitive advantage. Figure 6.Competitive Advantage 2/4 The Nature and Source of Cost Advantage A more detailed look at the nature and sources of cost advantage focussing on the links between economies of scale. This latter point may be omitted from undergraduate lectures and developed in a tutorial context.Competitive Position . scope and learning and the achievement of cost advantage. Identifying the potential for differentiation. The Concept of Competitive Advantage A definition of competitive advantage and a description of its constituent elements. An explanation of the concept of sustainability and its determinants (on undergraduate programmes this may be included a little later in the course) .

competitive strategy and competitive advantage. The critique of this position and the implications of composite strategies. a firm should commit to a single strategy. The identification of segmentation variables.Competitive Position . Value maps could be included if time permits but can be omitted without losing the main thrust of the argument.Competitive Advantage 3/4 Three Major Routes to Competitive Advantage: Is it possible for a firm to pursue more than one generic strategy? A re-statement of the ‘stuck in the middle’ hypothesis and a summary of the reasons for arguing that. The link between value. The concept of offer curves and price/quality trade-offs (this element may be omitted on undergraduate programmes). Value Creation and Value Analysis The concept of value and consumer surplus. . The relationship between generic strategies and market structure (this may be omitted on undergraduate programmes). On undergraduate programmes the following sections may form the basis of a second lecture Market Segmentation Analysis The rationale for market segmentation analysis. in order to be successful.

Mapping strategic groups over time and strategic groups in practice. Ten3 East-West . The key elements of a business model.Competitive Position . An explanation of the terminology. On undergraduate programmes this may be omitted from the main lecture and developed in tutorial sessions.Competitive Advantage 4/4 Strategic Group Analysis An explanation of the concept of strategic groups and rationale for this kind of analysis. Achieving a sustainable and defensible strategic position. Larger Image Click on Image Source: Vadim Kotelnikov. Industry Transformation Using the 5 forces framework to gain insight into industry transformation . Business Models This is an optional part of this session and may be considered in a later slot. Business models in practice. GIVIS.

The Language of Resources and Capabilities – a discussion of key terminology. 263 .an explanation of the main tenets of the resourcebased view and the ways in which it differs from the market-based view. SLIDE: Figure 1. for example ‘capabilities’. SLIDE: Some key definitions SLIDE: Core Competences = Distinctive Capabilities = Strategic Assets The Importance of Intangibles – an explanation of what is meant by intangibles and why they are considered to be of particular importance SLIDE: Identifying Intangibles p. A discussion of the way this lecture fits with the overall framework of the strategy course. ‘strategic assets’ highlighting the fact that different authors use different terms to refer to similar concepts.Strategic Capability: Core Competence 1/3 Lecture – a recap of prior concepts and the logic of the market-based view of the firm. SLIDE: The market-based versus the resource-based view of the firm. ‘competences’.6 A systemic model of strategy The Resource-based View of the Firm.

SLIDE 7.10 SLIDE: Figure7. durability.Strategic Capability: Core Competence 2/3 Determining the Value of Competences – an explanation of the concepts of imitability.6 . SLIDE: Figure 7. substitutability and appropriability. For undergraduates this could be the concluding slide.5 Linking the Market-based and Resource-based Views – discussion of the ways in which these two perspectives complement each other which draws on the notion of key success factors.

7 Competitive strategy in practice – some prescriptive advice about managing the business for value and positioning the business for growth. SLIDE: Figure 7. information and communication together with intangible assets and core competences are central to developing and sustaining competitive advantage.2 SLIDE: Figure 7. Click on Image Source: SUNY Cobleskill . SLIDE: Figure 7.Strategic Capability: Core Competence 3/3 Competence-based Competition – an introduction to the notions of strategic intent and strategic innovation. More suited to postgraduate students with management experience. emphasizing the role of learning.15 Concluding comments – a brief summary of the key ideas highlighting of the fact that every firm is different and that managerial processes.

Larger Image Source: Carnegie Endowment for International Peace . Click on Image. The second could focus on firm level choices and the strategic options available to international firms Introduction – opening remarks should establish the link with previous lectures on competitive and corporate strategy and explain this lecture’s focus on the global arena.Global Strategies 1/6 Lecture The 'global strategies and international advantage' topic covers a lot of ground and on undergraduate programmes it might be worthwhile covering the topic over two lectures. The first lecture could focus on the concept globalization and the pursuit of international competitive advantage at the nation and industry level.

Global Strategies 2/6
The Terminology of International Business – an explanation of key terms and the introduction of the notions of internationalization and globalization. Slide: The terminology of international business (list of key definitions drawn from p.412 and 413) The Context of International Strategy – a brief review of the major trends in trade and foreign direct investment. A discussion of the factors driving globalization Slide: Table 11.1 and 11.2

Click on Image Source: © 2000-2006 by The Globalist

Global Strategies 3/6
National Competitive Advantage – an introduction to, and explanation of, the determinants of national competitive advantage (Porter’s diamond model). Lectures to postgraduate audiences could also include a discussion of the limitations of the model (discussed on p.434-436 of the text) and introduce the double diamond model. Slide: Figure 11.1 The Internationalization process – an explanation of the ways in which domestic firms develop their overseas activities and the evolution of different forms engagement in foreign markets over time. A summary of the advantages and disadvantages of these different forms of international activity, e.g. licensing, foreign direct investment, etc. Slide: Figure 11.2

Click on Image Source: Irish Agriculture and Food Development Authority

Global Strategies 4/6
From international to global strategies – a reiteration of the opening themes of internationalization, moving to a discussion of the strategic options available to multi-national firms, introducing the notion of multi-domestic and global strategies. Slide: Figure 11.3 Slide: Bullet points contrasting multi-domestic and global strategies The Drivers of Globalization – a discussion of the forces that are driving the industries and firms to go global and the limitations of, and tensions in, this process Slide: Table 11.4 Global v Local – an outline of the trade-offs between standardisation and differentiation and the link between the strategic environment and available strategic options. Slide: Table 11.5 Strategic Choices – an explanation of Bartlett and Ghosal's four basic strategies used to enter and compete in international environments Slide: Figure 11.5 The Best of Both Worlds – Transnational Strategies – an outline of what is understood by a transnational strategy and an explanation of implementing this strategy in practice.

A discussion of the fit between strategy and structure in international firms. namely the strategy/structure debate. If time permits the lecturer may also like to re-introduce the notions of country-specific and firm-specific advantages and Rugman & D'Cruz's (2000) 'flagship'model Slide: Figure 11. Slide: Bullet points for and against a matrix structure Slide: Figure 11. Larger Image Source: © Department of Industrial Engineering and Manage . paying particular attention to Bartlett and Ghoshal's (1989) model.7 Slide: Figure 11.Global Strategies 5/6 Strategy and Organization – a return to one of the key themes running through the strategy literature.11 (optional) Managing International Organizations – an explanation of the complexity inherent in organising a multi-product.13 Click on Image. multi-market firm and a discussion of the ways in which managers may seek to organise and control such businesses.

Global Strategies 6/6 Concluding Comments – a summary of some of the main themes including the nature of globalization and the significance of national competitive advantage. Larger Map Source: BizEd . the global/local debate and the way this connects with firm-specific versus country-specific advantages. the tantalizing possibility of gaining the 'best of both worlds' through transnationality and the possibilities and problems of developing appropriate organizational structures and systems to make the transnational organization a reality Click on Image.

Slide: Table 13. the techniques used to aid decision-making. Boje . at least in part.an explanation of Mintzberg. A re-iteration of the earlier theme of 'what happens when strategy meets organization?' Slide: Figure 2.Strategic Decision Making 1/4 Lecture .2 Different perspectives on strategic decisionmaking . Slide: Bullet points outlining the 5 Ps of strategy Making Choices .1 Click on Image.an explanation of rules of thumb and option selection techniques emphasizing the fact that the way strategy is viewed determines.a discussion of the change in emphasis from micro and macroeconomic analyses of strategy to more process-based approaches. Larger Image Source: David M. Quinn and Ghoshal's (1998) 5 'Ps' of strategy and a discussion of the ways in which the dominant view of strategic decision-making has changed over time.

Slide: Table 13.2 Options .2.1 Click on Image Source: Drexel University .a brief explanation of the technique Slide . Undergraduate lectures may choose to omit the slide and merely introduce the general concept of game theory.an explanation of the key dimensions of strategic options namely the identification of additional or alternative capabilities and the identification of potential future markets and/or new customer behaviours.Strategic Decision Making 2/4 Game Theory .Definition of sensitivity analysis from 13. Slide: Figure 13.2 Sensitivity Analysis .an explanation of the basic terminology and approach of game theory and the introduction of a simple game such as the Prisoners' Dilemma.

com .a period of thinking and followed by a period of acting.2 and the architecture of strategic decision-making The architecture of strategic decision making .the importance of decision-specific characteristics and organizational context to decision-making processes. (Please note: undergraduate tutors may decide to omit this topic from the lecture and to explore these issues raised in separate lectures. Decisionmaking and the development of alternative courses of action are fashioned in their doing.a reiteration of the point that decisionmaking is not a simple process that happens in a linear sequence . An explanation of different perspectives on decision-making processes e.) Slide: Bullet points taken from top of page 514 Slide: bullet points taken from middle of page 515 Click on Image Source: guuui.g.Strategic Decision Making 3/4 Decision-making Processes: Thinking and Acting . planned v chaotic Slide: Figure 13.

a discussion of the relationship between decision processes and their outcomes. Click on Image Source:© 2000 -2006 Hofstra University .bullet points of subheadings in 13.Strategic Decision Making 4/4 Strategic Decision-making and Performance .5.A re-statement of the key themes of the lecture placing emphasis on not only the choices made but also on how managers make decisions and the relationship between decision-making processes and performance outcomes. highlighting the importance of the knowledge base of managers and the receptivity of the organizational context Slide: factors of success .2 Closing remarks .

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