Lecture VI–

Strategic Management
Dr. Hauke Laackmann

Jacobs University Bremen

 Course grading
• The case studies will consist of the presentation of a use case of a strategic management
tool/instrument and the handout for the group.

• The case studie´s grade will represent 60% off the overall course grade, whereas 50% of the case
study part will be the handout.

• The presentation itself should not exceed 30 minutes .

Course

• The handout shall not exceed 30 pages.

• The written exam will represent 40% of the overall grade. 30

40

30

Written Exam Case Study Handout

Contact details:

Dr. Hauke Laackmann

Mail: h.laackmann@jacobs-university.de

Mobile (in urgent cases): 0049 172 189 24 24

Time schedule:

7:15 pm – start

8:45 pm – 9:00 pm break

10:00 pm - end

Please vote/select a course speaker…

What is your tool
kit so far?
 Course User Story:

As Jacobs Students we want to learn more
about how to apply and actively use strategic
approaches, so that we can successfully
contribute to the organizations´ growth.

!5
Theoretical development of strategy
discipline:
The holistic structure of a company

Source: The New St. Gallen Management Modell

Vision

Policy/Mission Why?

Programs What?

Action How?

Activities Who?
Clarification of open issues

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Kaplan/Nortons approach on Strategy
Development

• 1. What business are we in and why? (Mission, vision, and values)

• 2. Where are we going? (Strategic goals)
• 3. What are the key issues that our strategy must address? (Strategic analysis)
• 4. How can we best compete? (Strategy formulation)

Source: Focusing Your Organization on Strategy--with the Balanced Scorecard, 3rd

Edition (HBR Article Collection)
ARTICLE COLLECTION Robert S. KaplanDavid P. Norton

12
13
 Revolutionize the Golfing Industry

Bringing Golf Sports into the technologically advanced era of digitization

Financial Perspective

Customer Perspective / Marketing

Internal Perspective / Operations

Theme one Theme Two Theme Three

Company Core Value Statement

Learning and Growth Perspective / HR

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Structured longlist of corporate
ambitions
1. Shareholder value
2. Size
3. Profitability
4. Protection of the institution
5. Growth
6. Stakeholder value

Source: Pidun (2019) !16

Profitability KPIs
Sales Growth: The change in an organization's sales from one reporting period to another.
Formula: ([Current Sales] - [Past Sales]) / (Past Sales) = (Sales Growth
ROI (Return on Investment): Shows the efficiency of an investment.
Formula: ([Gain from Investment] - [Cost of Investment]) / (Cost of Investment) = (ROI)
ROE (Return on Equity): The amount of net income an organization generates compared to the amount of shareholders’ equity.
Formula: (Net Income) / (Shareholders’ Equity) = (ROE)
ROA (Return on Assets): Indicates how profitable an organization is relative to its total assets.
Formula: (Net Income) / (Total Assets) = (ROA
Return on Capital Employed: Measures an organization's profitability and the efficiency with which its capital is employed.
Program Profitability: Tracks the profitability of an individual program.
Operating Profit Margin: Measures income after variable costs of production are considered.
Formula: (Operating Income) / (Net Sales) = (Operating Profit Margin)
Net Profit Margin: The percentage of an organization's revenue that is net profit.
Formula: (Net Profit) / (Revenue) = (Net Profit Margin)
Net Profit: The amount of money an organization makes after taking out all expenses and other costs.
Formula: (Income) - (Expenses) = (Net Profit)
Gross Profit Margin: The percentage of revenue that is profit after the cost of production and sales is considered.
Formula: (Gross Margin) / (Revenue) = (Gross Profit Margin)
Gross Profit: An organization's profit after the cost of production and sales is considered.
Formula: (Revenue) - (COGS) = (Gross Profit)
Economic Value Added (EVA): An estimate of an organization's economic profit !19
Concept of loop learning

Source: adopted from Argyris and Schön (1974)

!28
 Corporate Strategy Process
Status Process step

Target development

Analysis (ext.)

Analysis (int.)

Target redefining

Choice of strategy

Strategy
implementation

Future
5
 Corporate Strategy Process
Status Process step Instruments

Target development Analytical skills

Analysis (ext.) Tools: SWOT, etc.

Analysis (int.) Tools: SWOT, BCG-

Matrix, etc.

Target redefining Analytical skills

Tools: Strategy Map,

Choice of strategy Business Model Canvas,
etc.

Strategy Tools: Balanced

implementation Scorecards, KPIs, etc.

Future 6
 Corporate Strategy Process
Status Process step Instruments

Target development Analytical skills

Analysis (ext.) Tools: SWOT, etc.

Analysis (int.) Tools: SWOT, BCG-

Matrix, etc.

Target redefining Analytical skills

Tools: Strategy Map,

Choice of strategy Business Model Canvas,
etc.

Strategy Tools: Balanced

implementation Scorecards, KPIs, etc.

Future 7
 Corporate Strategy Process
Status Process step Instruments

!
1. Target development Analytical skills

2. Analysis (ext.) Tools: SWOT, etc.

Your task for the 3. Analysis (int.) Tools: SWOT, BCG-

Matrix, etc.
upcoming two
weeks: Step 1-5 4. Target redefining Analytical skills

for the provided Tools: Strategy Map,

case. 5. Choice of strategy Business Model Canvas,
etc.

Strategy Tools: Balanced

implementation Scorecards, KPIs, etc.

Future 8