Teaching Notes: Finntrack Strategy: Analysis and Practice 2005 McGraw-Hill Education Europe

Discussion Notes
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
Click on Image
Competitive Position: Competitive Advantage
Strategic Planning
Competition
What is Sustainable Competitive
Advantage
Sustainable Competitive Advantage
Competitive Strategies
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



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Workshop
This workshop series is designed to compliment Teaching and Learning
Strategies for undergraduate, 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, review and analyse the decisions taken during the companys
strategy development and implementation processes.
Strategy Analysis and Practice
John McGee, Warwick Business School
Howard Thomas, Warwick Business School
David Wilson, Warwick Business School

Case Analysis
A case study is a particular method
of qualitative research.
Rather than using large samples and
following a rigid protocol to examine
a limited number of variables, case
study methods involve an in-depth,
longitudinal examination of a single
instance or event: a case.
They provide a systematic way of
looking at events, collecting data,
analyzing information, and reporting
the results.
As a result the researcher may gain
a sharpened understanding of why
the instance happened as it did, and
what might become important to look
at more extensively in future
research.
Click on Image
Source: doyleresearch
Case Analysis
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
Case studies lend themselves especially to generating (rather than
testing) hypotheses.
Click on Image
Source: Inter IKEA Systems B.V.
2002-2006
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. Introduction
2. Business Analysis
3. Competitive Position: Competitive Advantage
4. Strategic Capability: Core Competence
5. Global Strategies
6. Strategic Decision Making
You should ensure that you have understood the contents of chapters 6, 7, 11 and 13 prior to
attending any of the above debates.
Also see:
How to Use Your Workshop Resources
Learning Objectives
Learning from Case Studies: A Short Guide for Students
Case Questions
Please Note:
At your instructors 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.

1. Using the information given in the Case Study and this resource,
describe the Elements of IKEAs Organisational Culture.
2. How has the Organisational Culture shaped IKEAs Business
Model?
3. Measure the value of IKEAs Organisational Culture.

Also see Learning Using Case Studies for further information
Also see A Model for Case Analysis and Problem Solving
How to Use Your Workshop Resources
Viewing

You will need either MS PowerPoint program or PowerPoint Viewer installed on
your computer. 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, i.e. linked to its source which
provides further information on the topic or the copyright holder.
If your version of PowerPoint does not show navigation buttons on the slide,
right click on the screen and select your destination from the dialogue box.
Alternatively use the small arrowheads, indicating previous and next.
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, etc. Whilst the publishers will
be pleased to take any appropriate corrective action, for example, by replacing or
removing the sources when possible, they unable to assume any legal
responsibility for unavailability of any third party material for whatever reason
beyond their direct control.
Learning Objectives
The main objective of the workshops is to evaluate IKEAs corporate strategic
planning process and outcomes and their impact on the companys 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
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
Furnishings
International Furnishing
Market
See also
Fostering Growth and
Promoting a Responsible
Market Economy - A G8
Declaration
Annual Report on
the Guidelines for
Multinational
Enterprises The
2005 edition
includes a special
focus on corporate
responsibility in the
developing world
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.
Diversified multinational corporations
manage production establishments located in
different countries that are neither horizontally
or vertically integrated.
Multinational Corporations
Multinationals have played an
important role in globalization. Given
their international reach and mobility,
prospective countries, and sometimes
regions within countries, must compete
with each other to have MNCs locate
their facilities (and subsequent tax
revenue, employment, and economic
activity) within. To compete, countries
and regional political districts offer
incentives to MNCs such as tax
breaks, pledges of governmental
assistance or improved infrastructure,
or lax environmental and labour
standards. This process of becoming
more attractive to foreign investment
can be characterized as a race to the
bottom.
Click on Image
Source:
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,
or away from a fixed location and related
subordinated services.[1] In commerce, a
retailer buys goods or products in large
quantities from manufacturers or importers,
either directly or through a wholesaler, and
then sells individual items or small quantities
to the general public or end user customers,
usually in a shop, also called store. Retailers
are at the end of the supply chain. Marketers
see retailing as part of their overall
distribution strategy.
Click on Images
Source: Inter IKEA Systems B.V.
2002
Introduction to Retailing
Shops and stores
Retail pricing
See also
References
Click on Image. Larger Image
Source: San Diego State University
Introduction to IKEA
IKEA is a Swedish home furnishings
retailer. It has 231 stores in 33 countries,
most of them in Europe, the rest in the
United States, Canada, Asia and
Australia. More than 20 opened during
2005. IKEA is one of the few store
chains to have locations both in Israel
and in other Middle Eastern nations.
IKEA is generally pronounced (IPA
/i'ke.a/) but in many English-speaking
regions, it is pronounced (IPA /a'ki:/)
rhyming with the word "idea".
The IKEA catalogue, containing about
12,000 products, is printed in 160 million
copies (2006) worldwide, and distributed
free of charge. [2]
IKEA is famous for its affordable
furniture which consumers are required
to assemble for themselves.
Click on Image
Source: en.wikipedia.org
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. 1999 - 2006
Introduction to IKEA
Ingvar Kamprad, believes that: "Most
things still remain to be done - a
glorious future! Time is your most
important asset. Split your life into10-
minute units and sacrifice as few as
possible to futurities" (Mclvor, Laurance,
1994: 38).
The corporate culture of Ikea is built
upon this philosophy all the way from
design teams to suppliers and to the
customer. 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. Due to the uniqueness of
Ikea's strategic positioning, being the
largest competitor in its field, the firm
has the advantage of setting the phase
of the industry.
Click on Image
Source: IKEA Deutschland
Introduction to IKEA
Bureaucracy is fought at all levels in the
organization. Kamprad believes that
"simplicity and common sense should
characterize planning and strategic
direction" (Bartlett et Al, 1993: 78).
In addition, the culture emphasizes
efficiency and low cost which is not to be
achieved on the expense of quality or
service.
Symbolic policies, such as only flying
economy class and stay at economical
hotels, 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.
Source: Johan Olsson
Click on Image
Source: www.csd.uwo.ca
Introduction to IKEA
For instance, all design teams enjoy
complete autonomy in their work, but
are expected to design new appealing
products regularly.

Click on Image
Source: Themanager.org
Corporate Strategy
Background
Objectives
International Strategy -
Case Study: How Ikea of Sweden Got to India
Financial Strategy -
Re. Case Study: How Ikea of Sweden Got to India
Marketing
Advertising and Public Relations
Management Strategy
Re. Case Study: How Ikea of Sweden Got to India
Cultural Challenge
Corporate and Social Responsibility
Conclusions
Re. Case Study: How Ikea of Sweden Got to India
Also see
Ikea knockoffs a hit with India's elite Swedish chain has no stores there, but its
furniture catalog is used by carpenters as a guide to copy designs
In India, its IKEA without the assembly
Click on Image. Larger Image
Source: The M. Polo Group, 2002
Corporate Strategy - Background
The Values that Characterize IKEA

Vision

Objectives

Mission (IKEA Concept)

Product

Turnover

Stores

Store Openings 2005 - 2006

IKEA Catalogue

IKEA Franchising
Inter IKEA Systems B.V. 2003 - 2006
Click on Image
Source: Inter IKEA Systems B.V. 1999
- 2004
Background
Corporate Strategy - Objectives
The Challenge

IKEA want to increase the return on investment for the catalogue distribution, which is a
substantial investment, and remain ahead of the competition in terms of business
strategy.

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.

IKEA requires a solution to maximise their return on investment while expanding their
appeal and maintaining their dominant market position.

Specifically IKEAs 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.co.uk
Corporate Strategy - 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.
Source: Transcultural Synergy Ltd
Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India
Corporate Strategy - International
Joint Ventures

Ikea will need to look at joint ventures and strategic alliances to become
successful in the Indian market. Since the government requires that local
business operations require 51% control by Indian nationals, Ikea's first step will
be to find franchise owners. 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.

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. By developing a relationship with local suppliers, the
suppliers can provide valuable input into the opportunities and threats.
Joint Ventures mean even more. They establish that the local owner/operators
become an integral part of the stakeholder group. It is expected that they will
therefore be more contentious of operations and therefore be more successful.
Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India
Corporate Strategy - Financial
International Financial Market
The Foreign Exchange Market Foreign Exchange Market
Currency options and futures
Main Text Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India
Click on Image
Source: Wikipedia
Derivatives traders at the Chicago Board of Trade.
Foreign Exchange Options by Wikipedia
Corporate Strategy - Financial
The advantage of borrowing money locally is that the cost of borrowing will be
protected from inflation and exchange rate fluctuations. Investment money taken
from reserves of other operations may not carry any interest cost and therefore
be a cheaper source of investment. In the case of India, if Ikea decides to
franchise its operations there, the problem of financing the operation is taken
care of through franchising fees and royalties. 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.
Financial Strategy

The cost of establishing a new store (approximately 22,000 items) is quite high
when considering:
Building acquisition, 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
Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India
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,
product will have to be modified to lower price categories and volumes will have
to increase to offset the difference.

Except in the largest cities, operation costs should be lower than Western
Europe. Labour costs are substantially lower in India, but the Ikea store concept
requires little human resources, so cost reductions must rely on other overhead
such as store, warehousing, power, taxes and advertising.

Probably the most effective method for cost reduction is to source a higher
percentage of goods form India. Even Scandinavian designs could be
reproduced in India.
Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India
Corporate Strategy - Marketing
Marketing
Click on Image
Source: Inter IKEA Systems B.V.
1999 - 2006
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 - everything under one roof
Distribution - from supplier to store
Printable Fact Sheets:
Click here to IKEA main menu
Corporate Strategy - Marketing
Ikea does not have its own manufacturing
facilities. Instead, it is using subcontracted
manufacturers all over the world for supplies. All
research and development activities are, however,
centralized in Sweden.
In order to maintain low cost, Ikea shoppers are
Pro-sumers - half producers, and half consumers
(Normann, 1993: 70). In other words, they have to
assemble the products themselves.
To facilitate shopping, Ikea provides catalogs, tape
measures, shopping lists and pencils for writing
notes and measurements. Car roof racks are
available for purchase at cost and Ikea pick-up
vans/mini trucks are available for rental
(Economist, 1994: 101).
Source: Johan Olsson, 1996
Marketing
Click on Image
Source: Inter IKEA Systems B.V.
1999 - 2006
Corporate Strategy - Marketing
Effective marketing through catalogues
usually attracts the customer at first, what
keeps customers coming back is good
service.

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. For that, Ikea
depends on leading-edge technology.

According to Ikea's logistics manager, "there
are a lot of Just-In-Time concepts built into
how we're trying to do business" (Chandler,
1993: 12). Ikea has developed its own global
distribution network.
Source: Johan Olsson, 1996
Click on Image
Source: Inter IKEA Systems B.V.
1999 - 2006
Marketing
Corporate Strategy - Marketing
By utilizing control points in the distribution
cycle, the firm is able to insure timely deliver
of products to retail stores all over the world.

Internationally, these stores range in size
from 20,000 to 30,000 square feet in Hong
Kong and in Singapore to 500,000 square
feet in Stockholm, Sweden. Ikea has over
1,800 suppliers located in over 50 different
nations (Retail Business, 1995: 78).

Ikea's, marketing manager believes that
Consumer tastes are merging globally.
Source: Johan Olsson, 1996
Click on Image
Source: Inter IKEA Systems B.V.
1999 - 2006
Marketing
Corporate Strategy - Marketing
In one example, Ikea, which has been
importing the "streamlined and
contemporary Scandinavian style" to the
United States since 1985, found at least
one opportunity to export an American style
to Europe, as Europeans are picking up on
some American furnishing concepts. In
order to respond to this new demand, Ikea
now market "American style" furnishings for
the European market.

Source: Johan Olsson, 1996
Click on Image
Source: 2006 by the US-China Business
Council
Marketing
Corporate Strategy - Marketing
Ikea's success is based on the relatively simple
idea of keeping the cost between manufacturers
and customers down. According to Ingvar
Kamprad, the founder of Ikea; "To design a desk
which may cost $1,000 is easy for a furniture
designer, but to design a functional and good desk
which shall cost $50 can only be done by the very
best. Expensive solutions to all kinds of problems
are often signs of mediocrity." (Chandler, 1993: 12)
Costs are kept under control starting at the design
level of the value-added chain. 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).
Source: Johan Olsson, 1996
Click on Image
Source: Forbes
Advertising and Public Relations
Corporate Strategy - Advertising and PR
Click on Image
Source: 19952006
Art. Lebedev Studio
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, IKEA print
ad
IKEA print ad Any table can become
a smorgasbord
IKEA promotion page Office of Decorum
Advertising and Public Relations
Corporate Strategy - Advertising and PR
Advertising and Public Relations
Click on Image
Source: Inter IKEA Systems B.V.
1999 - 2006
Four Neat Examples of Orderly
Business Practices, an IKEA print
ad
IKEA B-to-B website
B2B IKEA
Do you know whats the Swedish for
thanks?
Corporate Strategy - Management
IKEA Management Strategy
IKEA is a very successful multinational
corporation, which indicates that earlier
discussed focused generic, or long-term
strategy of cost leadership and product
differentiation has served it well. IKEA
approaches unknown, small, high risks
markets by franchising.

So this company actively expands in
this field as well.

IKEA has a lot of subsidiaries in many
countries of the world. Franchisees
have to carry basic items, but have the
freedom to design the rest of the
products.
Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India
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
Corporate Strategy - Culture
Click on Image
Source: Inter IKEA Systems B.V.
1999 - 2006
Cultural Challenge

In international business, 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),
the irritation-hostility stage, the gradual
adjustment and the bi-culturalism, at this
stage, the company gets a comfortable
way in the settlement of the new culture.
Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India
Corporate Strategy - Culture
But, few countries in the world have such an
ancient and diverse culture as India. Indias
culture has been enriched by successive
waves of migration, which were absorbed into
the Indian way of life. And, the diversity lies
the continuity of Indian civilization and social
structure from the very earliest times until the
present day. Modern India presents a picture
of unity in diversity to which history provides
no parallel.

Moreover, 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. It
has thus become a major vehicle of
international cultural exchange.
Cultural Challenge
Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India
Doing Business in India
Source: 2000-2005 Executive
Planet Inc.
Corporate Strategy - Culture
We can also focus on the Indians process of
development, 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.

Today, 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. We
cannot rule out the Indian Art, because it is also
an Art of social, political and religious
influences. It changed and evolved with the
evolution of a civilization, which is full of
remarkable innovation.
Cultural Challenge
Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India
Click on Image
Source: india-seminar.com
Corporate Strategy - Culture
Finally, we can make point on Indian religion,
because it is another way of life and an
entire part of Indian tradition.

So in doing business with India, 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, misunderstanding
and also some troubles.

So, the firm has to be careful with the
context where it decides to set up its
business.
Cultural Challenge
Source: Global Perspectives: Case Study: How Ikea of Sweden Got to India
Click on Image
Source: 2003 international-business-
center.com

Corporate Strategy - CSR
Corporate and Social
Responsibility
Click on Image
Source: Inter IKEA Systems B.V.
1999 - 2006
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.

IKEA makes good business while being a
good business. 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.

IKEA CSR activity involves three main
areas: children, better living and
environmental projects.
Corporate Strategy - CSR
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
IKEA wants its products to have the
minimum impact on the environment.
And for these products to be
manufactured in a socially responsible
way.
Inter IKEA Systems B.V. 2003 - 2006
Corporate and Social
Responsibility
Corporate Strategy - CSR
Corporate and Social
Responsibility
Source:
Special Report: Tackling Child Labour
Child Labour Resource Guide
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. Benefits of Business
Analysis
2. Roles of Business Analysts
3. Business Process
Improvement
4. Goal of Business Analysts
5. External Links

Also see
Quantitative Method
From Wikipedia, the free
encyclopedia

Larger Image
Source: BizEd
Click on Image
Business Drivers
Larger Image
Source: Metapraxis
Also see

Association of Master
Upholsterers and Soft
Furnishers
Furniture Industry
Research Association
(FIRA)
Kitchen Specialists
Association (KSA)
National Bed Federation
(NBF)
The association for
British Furniture
Manufacturers (BFM)
Economic Value Added
Quantitative Methods
Quants Handbook
Click on Image
Source: Brian C. McCarthy
Ohio University
Lecture 1: Functions & Economic Relationships
Lecture 2: Economic Models/Linear Models
Lecture 3: Basic Differential Calculus
Lecture 4: Optimisation
Lecture 5: Functions of Several Variables
Lecture 6: Unconstrained Optimisation
Lecture 7: Constrained Optimisation
Lecture 8: Growth & Dynamics
Lecture 9: Introduction to Difference Equations
Source: Bob Beachill
Leeds Metropolitan University
beach@thenet.co.uk
Strategic Business Analysis
Click on Image
Source: QuantAA
SWOT Analysis
PEST market analysis tool
Porter's Five Forces Model
Resources and Capabilities
Value Chain
Managing Your Value
Chain
Organisation
Organisational Culture
attitudes,
values,
beliefs,
norms and
customs
Organisational Capabilities
Financial Analysis
Larger Image
Click on Image
Source: Wikipedia
Organisation
An organization or organisation (read more about -ize vs -ise) is a formal group
of people with one or more shared goals. The word itself is derived from the
Greek word (organon) meaning tool. 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
References
Click on Image. Larger Image.
Source: Howell & Costley
Financial Statements: The System
Larger Image
Larger Image
Click on Images
Source: Investopedia.com
Financial Statements: Analysis
1) Financial Statements: Introduction
2) Financial Statements: Who's In Charge?
3) Financial Statements: The System
4) Financial Statements: Cash Flow
5) Financial Statements: Earnings
6) Financial Statements: Revenue
7) Financial Statements: Working Capital
8) Financial Statements: Long-Lived Assets
9) Financial Statements: Long-Term Liabilities
10) Financial Statements: Pension Plans
11) Financial Statements: Conclusion

Printer friendly version (PDF format)
Source: Investopedia.com
Larger Image
Click on Image
Source: Investopedia Inc
Financial Ratios
A financial ratio is a ratio of two numbers of reported levels or flows of a company. It
may be two financial flows categories divided by each other (profit margin,
profit/revenue). It may be a level divided by a financial flow (price/earnings). It may be a
flow divided by a level (return on equity or earnings/equity). The numerator or
denominator may itself be a ratio (PEG ratio).
Ratios
Flow-to-flow
Level-to-level
Ratio-to-ratio
To cash flow
To earnings
To market cap
See also
External links
Larger Image
Download Financial
Ratio Analysis (177K)
for Microsoft Excel.
Source: Baarns
Consulting Group
Competitive Position: Competitive Advantage
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
Performance measures to
support competitive advantage
Click on Image
Source: BRS
Click on Image
Source: businessballs.com
Literature Review
Competitive Position: Competitive Advantage
Competitive strategy
Michael Porter: Generic
Strategies
Risk-related Challenges

Literature Review
Also see Annotated Lecture Outline
Larger Image
Click on Image
Source: Vadim Kotelnikov, GIVIS, Ten3 East-West
Strategic Capability: Core Competence
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
Larger Image
Click on Image
Source: Sumitomo Corporation
Literature Review
Also see Annotated Lecture Outline
Global Strategies
Going Global: Assess Market
Opportunities
Institutions and Business
Strategies in Emerging
Economies: A Study of Entry Mode
Choice
Globalization, Models of
Competitive Advantage and Skills
The Competition of Countries
Competitiveness of Nations: The
Fundamentals
Economist Country Briefings
Literature Review
Also see Annotated Lecture Outline
Click on Image
Source: Agrium Inc. 2004
Strategic Decision Making
Decision Theory
Decision Making
Game Theory
The Future of Game Theory
Literature Review
Also see Annotated Lecture Outline
Click on Image
Source: Yale Economic Review
Strategic Planning
Strategic planning consists of the
process of developing strategies to
reach a defined objective. 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,
which by definition has to focus more
on the tactics of individual detailed
activities).
"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: Long Range Planning - International
Journal of Strategic Management

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.
Click on Image
Source:
learningworks@telus.net
Strategic Planning
Click on Image. Larger Image
Source: University of Cambridge,
Department of Engineering
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
Measurements
Goals, objectives and targets
Mission statements and vision statements
Why strategic plans fail
External links
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, or out of a biological imperative
such as survival. Competition is a term widely used in several fields, including
economics, business, politics, and sports. Competition may be between two or
more forces, life forms, agents, systems, individuals, or groups, depending on the
context in which the term is used.
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
Sustainable Competitive Advantage
Larger Image
Click on Image
Source: Vadim Kotelnikov, GIVIS, Ten3 East-West
Owning Competitive Advantage
Competition
Hypercompetition

Sustainable Competitive Advantage
In marketing and strategic
management, sustainable competitive
advantage is an advantage that one
firm has relative to competing firms. The
source of the advantage can be
something the company does that is
distinctive and difficult to replicate, also
know as a core competency, for
example P&G' ability to derive superior
consumer insights and implement them
in managing its brand portfolio.
Larger Image
Click on Image
Source: Infosys Consulting
Creating Business Value
Information technology facilitates new and more
efficient way of creating business value in the
new economy. As a result, instead of the
traditional vertically integrated value chains,
organizations must adopt business models
based on independent layers of value-creating
activities.
Meltdown of the Value Chain
Source: General Management Review
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
Complementing for Complexity: Leading
Through Managing The first mover in an
emerging market
Competitive Strategy: Michael Porter
Image by benchmarkporter.com
Larger Image
Click on Image
Source: www.tutor2u.net
Michael Porter: Generic Strategies
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, GIVIS,
Ten3 East-West
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

Larger Image
Click on Image
Source: Forio Corporation
Strategic Intent
Larger Image
Click on Image
Source: Vadim Kotelnikov, GIVIS, Ten3 East-West
Corporate Vision, Mission, 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
Innovation
Click on Image
Source: Vadim Kotelnikov, GIVIS,
Ten3 East-West
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
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, Ten3
East-West
Theory of Constraints
Theory of Constraints (TOC) is a body of knowledge on the effective
management of (mainly business) organizations, as systems. The author is
Eliyahu M. Goldratt, with many others contributing to the body of knowledge.
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)
Click on Image
Source: Vickers
Value Chain
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, 1993:
211).

The value chain approach identifies
two major activities- primary and
secondary. Primary actives include
production, marketing, logistics and
after-sale functions. Secondary
activities, on the other hand, are
identified as support processes to
primary activities.
IKEA Modified Value Chain
These include, firm infrastructure, Human Resource Management. Technology
development, and procurement. The ultimate purpose of the firm is to add as
much customer "value" in each of the primary activities (Pearce et. al, 1993: 184-
187).

Ikea has modified the value chain approach by integrating the customer in the
process and introducing a two-way value system between customers, suppliers,
and Ikea's headquarters.

In this global sourcing strategy, the customer is a supplier of time, labor,
information, knowledge and transportation. On the other hand, the suppliers are
customers, receiving technical assistance from Ikea's corporate technical
headquarters through various business services. The company wants customers
to understand that their role is not to consume value, but rather to create it
(Norrmann et al, 1993: 67).



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. Customers are clearly informed in the catalogs of
what the firm's business systems provides, and what they are expected to add to
the final process.

In order to furnish the customer with good quality products at a low cost, the firm
must be able to find suppliers that can deliver high quality items at low cost per
unit. The headquarters provides carefully selected suppliers with technical
assistance, leased equipment and the necessary skills needed to produce high
quality items.

This long-term supplier relationship does not only produce superior products, but
also add internal value to the suppliers (Normann et al, 1993: 72). In addition, this
value-chain modification differentiates Ikea from its competition.
Organisational Culture
Organizational culture comprises the attitudes, values, beliefs, norms and
customs of an organization. Whereas organizational structure is relatively easy to
draw and describe, organizational culture is considered to be less tangible and
more difficult to measure. It is also called Company Culture.
Influences on organizational
culture
Strong/Weak cultures
Classifying organizational
culture
Johnsons 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. Larger Image
Source: University of N. Carolina
Organisational Structure
Organizational structure is the way in which the interrelated groups of an
organization are constructed. The main concerns are effective communication
and coordination.
Pre-bureaucratic
Bureaucratic
Functional Structure
Divisional Structure
Post-Bureaucratic
Matrix organization
Multi-Unit Organization
Adhocracy
See also
Click on Image. Larger Image
Source: 2004-2006 Visitask
Economic Value Added
Larger Image
What Does Economic Value
Added Really Mean?

Click on Images for further
information
Source: David Harper, (Contributing
Editor - Investopedia Advisor)
Six Sigma
Six Sigma was pioneered by Bill Smith at Motorola
in 1986[1]. Originally, it was defined[2] as a metric
for measuring defects and improving quality; and a
methodology to reduce defect levels below 3.4
Defects Per (one) Million Opportunities (DPMO). Six
Sigma is a registered service mark and trademark
of Motorola, Inc[3]. Motorola has reported over
US$17 billion savings[4] from Six Sigma to date.

AlliedSignal and GE became early adopters of Six
Sigma and reported benefits of over US$300 million
during its first year of application[5]. Their CEO's,
Larry Bossidy and Jack Welch, played a vital role in
popularizing Six Sigma. Other major organizations
who claim to have benefited from Six Sigma
implementation are Ford, Caterpillar, Microsoft,
Raytheon, Quest Diagnostics, Seagate Technology,
Siemens, Merrill Lynch, Lear, 3M and many more.
Click on Image
Source: KETCH.ca
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
References
See also
External links
Click on Image
Source: QCI International. All rights reserved.
Global Strategies
Larger Map
Source: BizEd,
University of Bristol

Click on image for further information
Globalisation
Global Strategies
Globalization (or globalisation1) refers to the worldwide phenomenon of
technological, economic, political and cultural exchanges, brought about by
modern communication, transportation and legal infrastructure as well as the
political choice to consciously open cross-border links in international trade and
finance.
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
Comparative Advantage
In economics, the theory of comparative advantage explains why it can be
beneficial for two countries to trade, even though one of them may be able to
produce every kind of item more cheaply than the other. What matters is not the
absolute cost of production, but rather the ratio between how easily the two
countries can produce different kinds of things. The concept is highly important in
modern international trade theory.
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
International Trade
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
International trade is the exchange of goods and services across international
boundaries or territories. In most countries, it represents a significant share of
GDP. While international trade has been present throughout much of history (see
Silk Road, Amber Road), its economic, social, and political importance has been
on the rise in recent centuries. Industrialization, advanced transportation,
globalization, multinational corporations, and outsourcing are all having a major
impact. Increasing international trade is the usually primary meaning of
"globalization".
Click on Image
Source: Copyright 2006 Time Inc.
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
Fostering Growth and
Promoting a Responsible
Market Economy - A G8
Declaration
Annual Report on
the Guidelines for
Multinational
Enterprises The
2005 edition
includes a special
focus on corporate
responsibility in the
developing world
Multinational Corporations
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.
Diversified multinational corporations
manage production establishments located in
different countries that are neither horizontally
or vertically integrated.
Multinational corporations (MNC) are often divided into three broad groups:
Multinational Corporations
Multinationals have played an
important role in globalization. Given
their international reach and mobility,
prospective countries, and sometimes
regions within countries, must compete
with each other to have MNCs locate
their facilities (and subsequent tax
revenue, employment, and economic
activity) within. To compete, countries
and regional political districts offer
incentives to MNCs such as tax
breaks, pledges of governmental
assistance or improved infrastructure,
or lax environmental and labour
standards. This process of becoming
more attractive to foreign investment
can be characterized as a race to the
bottom.
Click on Image
Source:
Decision Theory
Decision theory is an interdisciplinary area of study, related to and of interest to
practitioners in mathematics, statistics, economics, philosophy, management, and
psychology. It is concerned with how real decision-makers make decisions, and
with how optimal decisions can be reached.
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
Decision Making
Decision making is the cognitive process of selecting a course of action from
among multiple alternatives. Every decision-making process produces a final
choice. It can be an action or an opinion. It begins when we need to do something
but we do not know what. Therefore decision-making is a reasoning process which
can be rational or irrational, and can be based on explicit assumptions or tacit
assumptions.
Click on Image
Source: Cognitive
Technologies.
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
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. First
developed as a tool for understanding
economic behavior, game theory is now
used in many diverse academic fields,
ranging from biology, psychology to
philosophy. Beginning in the 1970s, game
theory has been applied to animal behavior,
including species' development by natural
selection. Because of interesting games like
the prisoner's dilemma, in which rational self-
interest hurts everyone, game theory has
been used in political science, ethics and
philosophy. Finally, game theory has recently
drawn attention from computer scientists
because of its use in artificial intelligence
and cybernetics.
Larger Image
Click on Image
Source: David D Friedman
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. Wiens: Egwald Web Services Ltd
Also see Game Theory, Strategic Behavior, and Oligopoly
Competitive Position - 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. 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 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,
pricing and strategy.

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.
Larger Image
Click on Image
Source: Wikipedia
Competitive Position - 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, scope and learning and the achievement of cost advantage.

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. 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 firm-specific imperfections as the source of competitive advantage and the
interrelationship between industry structure and competitive advantage.. This latter point may
be omitted from undergraduate lectures and developed in a tutorial context.
Figure 6.7. An explanation of the concept of sustainability and its determinants (on
undergraduate programmes this may be included a little later in the course)
Competitive Position - 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, in order to be successful, a firm should commit to a single strategy. The
critique of this position and the implications of composite strategies. 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. The concept of offer curves and
price/quality trade-offs (this element may be omitted on undergraduate programmes). The
identification of segmentation variables.

Value Creation and Value Analysis
The concept of value and consumer surplus. The link between value, competitive strategy
and competitive advantage. Value maps could be included if time permits but can be
omitted without losing the main thrust of the argument.
Competitive Position - Competitive Advantage
4/4
Strategic Group Analysis
An explanation of the concept of strategic
groups and rationale for this kind of analysis.
Mapping strategic groups over time and
strategic groups in practice.

Industry Transformation
Using the 5 forces framework to gain insight
into industry transformation. On
undergraduate programmes this may be
omitted from the main lecture and developed
in tutorial sessions.


Business Models
This is an optional part of this session and
may be considered in a later slot.
An explanation of the terminology. The key
elements of a business model. Business
models in practice. Achieving a sustainable
and defensible strategic position.

Larger Image
Click on Image
Source: Vadim Kotelnikov, GIVIS,
Ten3 East-West
Strategic Capability: Core Competence 1/3
Lecture a recap of prior concepts and the logic of the market-based view of the firm. A
discussion of the way this lecture fits with the overall framework of the strategy course.
SLIDE: Figure 1.6 A systemic model of strategy

The Resource-based View of the Firm- an explanation of the main tenets of the resource-
based view and the ways in which it differs from the market-based view.
SLIDE: The market-based versus the resource-based view of the firm.

The Language of Resources and Capabilities a discussion of key terminology, for
example capabilities, competences, strategic assets highlighting the fact that different
authors use different terms to refer to similar concepts.
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. 263




Strategic Capability: Core Competence 2/3
Determining the Value of Competences an explanation of the concepts of imitability,
durability, substitutability and appropriability.
SLIDE: Figure 7.5

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. For undergraduates this could be the concluding slide.
SLIDE 7.10
SLIDE: Figure7.6

Strategic Capability: Core Competence 3/3
Competence-based Competition an
introduction to the notions of strategic intent and
strategic innovation, emphasizing the role of
learning.
SLIDE: Figure 7.7

Competitive strategy in practice some
prescriptive advice about managing the business
for value and positioning the business for growth.
More suited to postgraduate students with
management experience.
SLIDE: Figure 7.2
SLIDE: Figure 7.15

Concluding comments a brief summary of the
key ideas highlighting of the fact that every firm is
different and that managerial processes,
information and communication together with
intangible assets and core competences are
central to developing and sustaining competitive
advantage.
Click on Image
Source: SUNY Cobleskill
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. 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 lectures focus on the global
arena.
Click on Image. Larger Image
Source: Carnegie Endowment for
International Peace
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
(Porters 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.

Global Strategies 5/6
Strategy and Organization a return to one
of the key themes running through the strategy
literature, namely the strategy/structure
debate. A discussion of the fit between
strategy and structure in international firms,
paying particular attention to Bartlett and
Ghoshal's (1989) model. 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 11.7
Slide: Figure 11.11 (optional)

Managing International Organizations an
explanation of the complexity inherent in
organising a multi-product, multi-market firm
and a discussion of the ways in which
managers may seek to organise and control
such businesses.
Slide: Bullet points for and against a matrix
structure
Slide: Figure 11.13
Click on Image. Larger Image
Source: Department of Industrial Engineering
and Management 2006, Helsinki University of
Teachnology
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, 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. Larger Map
Source: BizEd
Strategic Decision Making 1/4
Lecture - a discussion of the change in
emphasis from micro and macroeconomic
analyses of strategy to more process-based
approaches. A re-iteration of the earlier theme
of 'what happens when strategy meets
organization?'
Slide: Figure 2.2

Different perspectives on strategic
decision-making - an explanation of
Mintzberg, 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: Bullet points outlining the 5 Ps of
strategy

Making Choices - an explanation of rules of
thumb and option selection techniques
emphasizing the fact that the way strategy is
viewed determines, at least in part, the
techniques used to aid decision-making.
Slide: Table 13.1
Click on Image. Larger Image
Source: David M. Boje
Strategic Decision Making 2/4
Game Theory - an explanation of the basic
terminology and approach of game theory and
the introduction of a simple game such as the
Prisoners' Dilemma. Undergraduate lectures
may choose to omit the slide and merely
introduce the general concept of game theory.
Slide: Table 13,2

Sensitivity Analysis - a brief explanation of the
technique
Slide - Definition of sensitivity analysis from
13.2.2

Options - 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.
Slide: Figure 13.1

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Source: Drexel University
Strategic Decision Making 3/4
Decision-making Processes: Thinking and
Acting - a reiteration of the point that
decision-making is not a simple process that
happens in a linear sequence - a period of
thinking and followed by a period of acting.
Decision-making and the development of
alternative courses of action are fashioned in
their doing. An explanation of different
perspectives on decision-making processes
e.g. planned v chaotic
Slide: Figure 13.2 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.)
Slide: Bullet points taken from top of page 514
Slide: bullet points taken from middle of page
515
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Source: guuui.com
Strategic Decision Making 4/4
Strategic Decision-making and
Performance - a discussion of the
relationship between decision processes and
their outcomes, highlighting the importance of
the knowledge base of managers and the
receptivity of the organizational context
Slide: factors of success - bullet points of sub-
headings in 13.5.2

Closing remarks - 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.

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Source: 2000 -2006 Hofstra University