...Business Strategy 4 External Environment Prof. Dr. Bernd Venohr Berlin, April 2007 © 2007 Prof. Dr. Bernd Venohr Agenda Introduction to Strategy 1 2 3 4 5 6 7 8 9 Course Overview and Strategy Concept Economics of Strategy Shareholder Value External Environment Internal Environment Competitive Positioning Diversification Mergers & Acquisitions Global Strategy Business Strategy Corporate Strategy Strategy Process 10 Organizational Structure and Control 11 Strategic Leadership © 2007 Prof. Dr. Bernd Venohr 2 Agenda Introduction to Strategy 4 External Environment - General environment analysis - Industry analysis - Summary and Outlook next Session © 2007 Prof. Dr. Bernd Venohr 3 Where are we today? Introduction to Strategy 1 Course Overview Strategy Concept 2 Economics of Strategy 3 Business Strategy 4 External Environment Shareholder Value Corporate Strategy 7 8 Diversification Global Strategy 5 Internal Environment 6 Competitive Positioning Mergers & Acquisitions 9 Strategy Process 10 Organizational Structure and Control 11 Leadership © 2007 Prof. Dr. Bernd Venohr Strategic 4 General purpose of external analysis Identify Opportunities: conditions that may help firm achieve strategic competitiveness Threats: hinders or constrains firm’s pursuit of strategic competitiveness Two types of environment Macro environment Micro environment (industry) Source: Robert M. Grant...
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...Office Office Hours Telephone E-mail Class Hours Class Dates Classroom Texts: : Dr. Allen F. Stembridge B.Commerce., MBA, Ed.D, F.I.A.C. : CSH 202 : 9:00a.m. -10:30a.m. (Monday through Friday), or by appointment. : 269-471-3632 : stem@swau.edu : 1:30 p.m. – 5:00 p.m. (Monday through Friday) : July 14, 2008 – July 31, 2008 : CSH 208 Required: David, Fred R. (2009) Strategic Management: Concepts and Cases (12th edition) Upper Saddle River, New Jersey: Prentice Hall. Course Description: Strategic Management requires that students integrate relevant knowledge gleaned from previous core business-course experience. Extensive case work and library research are demanded. Students work with a real organization to develop a comprehensive strategic plan. The student should have completed all MBA core requirements or be currently enrolled in the remaining courses. 1 Course Objectives: At the end of the course students should be able to: 1. Use the strategic management process to understand competitive forces and to develop competitive advantages. 2. Analyze complex business situations from management’s perspective. 3. Appreciate the interdependence of all business functions and operations. 4. Be more proactive in ascertaining and acting upon opportunities that may occur in the macro-environment. 5. Identify what an organization wants to achieve and know how they will do it. 6. Develop creative alternatives to resolving business problems, choose a strategy from among the alternatives...
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...Indonesia Course Name : Managing International Business (MIB) Class : Executive Program, July 2008 Facilitators : Handry Satriago (Course Leader) Guest Speakers : Subject to confirmation from the guest speakers - Riri Riza/Mira Lesmana, MILES Film (Session 5) Topic: Indonesia Movie Industry - Richard Matalon, President Director L’Oreal Indonesia (Session 12) Topic: L’Oreal strategy entering Indonesia - Vikram Reddy, GM Four Seasons Hotel Jakarta (Session 16) Topic: Four Seasons Global Strategy Background Companies today confront an increasing array of choices of markets, of locations for value adding activities, and of modes of crossing borders. This course focuses on the international dimensions of strategy and organization, and provides a framework for formulating strategies in an increasingly complex world economy, and for making those strategies work effectively. Operation in an international environment gives the manager access to new markets, additional natural resources, and low-cost-factor endowments. More importantly, it opens up new sources of ideas and knowledge to stimulate future innovation. Above all, global markets provide a vast new source of the scarcest of all corporate resources: management talent. On the other hand, these new opportunities present the challenges of managing in more complex, diverse...
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...ASSESSMENT 3: Evaluation of business case Introduction and Summary of case study This passage tells about Holden which is a foreign-owned car manufacturer wants to exit the car manufacturing in Australia in 2013, but Toyota thinks it will give them pressure on local supplier network and their ability to make cars. Toyota was founded in 1958, and among 20 years, it expanded to export. In the next 5 years, it merged as the market leader. Although Toyota has a long history of production and broadly business scope with a good business system, to some extent, it is influenced by the external environment which include the customers demand, market structure, adverse currency development and other development. It uses three strategies so as to follow the balanced model. The model is good, but for the constraint from domestic demand, the company uses the export strategy from New Zealand to Thailand. Moreover, customers’ preference to the type of cars changes which is unfortunately counters to Toyota’s; the small scale of production results in high level of cost; the high tariff rates make it difficult export cars, also high exchange rate of exporting are the key adverse environment. These factors make Toyota feel competitive. In order to operate successfully, Toyota began to counter those developments. It practise improvement in productivity and reduction in cost by adopting both internal and external cost-reduction strategies, such as reduce the production and labour cost, but it failed...
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...Michael Porter is associated with the positioning school (Mintzberg 2002:23), who‟s analytical approach sees strategy making mainly based on a process to identify drivers(forces) of intra-industry competition and its corresponding barriers. His reasoning is based on the assumption that a company who deliberately choose a position within an industry and at the same time is able to combine activities in a different fashion, can create sustainable competitive advantages that will lead to profitability and with it sustain competition. Aside this more general position of Porter, in an article from 1996, he asks “What is Strategy” and discussed operational efficiency in connection with strategy making and he advised that those two things should not (can not) be used interchangeably. Below their is a summary of Porter‟s main arguments from his article and what he sees as main components on strategy and how to distinguish between operational efficiency and strategy. SUMMARY The ability the make an informed decision about how, when and where to target a customer group, facilitate resources and set objectives(limits) makes the difference between a manager who thinks from a strategic perspective in light of what might emerge in future. Anticipating those movements into current decision-making helps to set a stage to create sustainable advantages. Porter argues that positioning is still a notable way to shape advantages within a company and sees hypercompetition as rather...
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...Chain and Logistics Management. Module: Module 2 – Strategy, Logistics and Marketing. Essay: What is Strategy? Date: 1st May 2012. Contents: Page. 1.0 Summary. 1 2.0 Introduction. 1 3.0 The Principles of Lean. 2 3.0.1. Understanding your customers’ requirements or value. 3.0.2. Identify the value stream 3.0.3. Make the value flow through the value stream 3.0.4. Pull the value from the value stream. 3.0.5. Strive for perfection. 3.0.6. The ten rules of lean production. 4.0 The Tools of Lean. 4 4.0.1. Kaizen. 4.0.2. Jidoka. 4.0.3. JIT or Just In Time. 4.0.4. Heijunka. 5.0 Recommendations. 6 6.0 Conclusions. 6 7.0 Bibliography. 7 8.0 Web links. 7 1.0 Summary. In this exercise I have tried to convey the meaning and value of strategy and its importance while constructing a strategic analysis using SWOT, STEP and Porter’s 5 forces. I have also used Porter’s generic strategies model to establish what business we want to be in and have articulated this business model in a vision and mission statement. The target company’s I have used in my exercise is predominantly Ryanair plc. 2.0 Introduction. What is strategy? The term strategy is a military concept and comes from the ancient Greek word “strategia” meaning “office of the general “ or “generalship”. Many of the concepts of strategy have been borrowed from the military and adapted for...
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...Business Strategy Module Code – ST3S03 Tutor – Rachel Leek Assignment A Report on the Strategic Evaluation of Easyjet Student Number - 09134190 CONTENTS Terms of Reference Page 3 Executive Summary Page 3 Introduction Pages 4 Identify Strategic Position Pages 4 & 5 External Drivers Of Change Page 8,9,10 & 11 Adding value To Strategic Position Pages 12, 13 & 14 Conclusion Page 14 & 15 References Page 16 Bibliography Page 17 Terms of Reference This report is based on a case study of Easyjet and its strategic position. The report is addressed to Rachel Leek from Shaun Sweeney, submitted on the 28/2/2013 Executive Summary The purpose of this report is to look at Easyjet and how they align their Strategic Business Strategies to compete with other similar businesses within the aviation industry. It will also look at how they may implement these strategies into their business. The report will look at how they deal with political, economic, social and technological obligations and threats. This will be analysed by...
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... Starbuck’s Coffee Strategic Management Executive Summary: Starbucks could be an international company operative within the low retail market since 1972. The corporate, that has positioned itself as a merchandiser of premium low merchandise, has greatly swollen its market position and presence within the past 20 years. Despite a positive market outlook, Starbucks is in would like of strategic content because the company faces to not be underestimated challenges within the short- to medium-term. Those challenges emanate from established competitors like some others fast food companies internationally defy Starbuck’s market leadership position by driving aggressive low-pricing methods in established and rising markets. Moreover, new trends within the low business have spread out new segments with high growth potentials. Starbucks remains unsure however tackle new segments and what impact trends may wear its product portfolio. This report is supposed to be a strategic scout that aims at illuminating totally different strategic alternatives within the lightweight of the numerous opportunities and threats that lie ahead. The report will provide recommendation on a way to utilize internal strengths to maximize opportunities and the way to attenuate weaknesses to avoid threats. (Lee, Ristic and Franke, 2014) Question No. 1 Which of porter's competitive strategies is Starbucks using? Porter called the generic strategies "Cost Leadership" (no frills), "Differentiation" (creating...
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...the most appropriate bases of competitive advantage including Porter’s thinking on generic strategies. ===========================================================Word count: 1579 =========================================================== 1. Porter’s Generic Competitive Strategies The Porter’s Generic Competitive Strategy defines whether a company follows competitive advantages through its share market scope. (Porter, Michael E., 1985) Competitive Advantage Competitive Advantage Differentiation Differentiation Low Cost Low Cost Broad Target Broad Target Competitive Scope Competitive Scope Narrow Target Narrow Target There are three generic strategies, either lower cost, differentiated, or focus. The focus strategy has two variants, cost focus and differentiation focus. A firm selects to pursue one of two types of competitive advantages. 1. Cost Leadership: Through lower costs than its competition or become a low cost producer in its industry. 2. Differentiation: By differentiating itself along some dimensions that are widely valued by customers to command a higher price. 3. Focus: A company also chooses one of two types of scope, either focus offering its products to selected segments of the market or industry-wide, offering its product across many market segments. The focus strategy has two variants, cost focus and differentiation focus. In cost focus a company seeks a cost...
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...Executive Summary This report endeavors to look at FedEx from the strategic initiative point of view and how it was able to adapt to changing business environment to improve itself. While organisations the world over have come and gone a few leave a lasting footprint on the way they have moved in the particular sector. FedEx with its various innovative ideas has left lasting footprint that has forever altered the scope of service within the logistics industry. From its humble beginnings as a delivery company, it has set itself up a global logistics and business services organisation that has shaken the belief held by behemoths regarding the level of innovation and service that they can offer to the customer base. With its out-of-box approach it has made industrial leaders like UPS, DHL etc, and look like new kids in the block. The strategic initiatives that the organisation has taken during various time a frame has exemplified the leadership ability of Mr. Smith to work toward uncertainly and how to respond to them. Introduction A general assumption regarding strategy is that executives by applying a set of tools will be able to predict a future of any business clearly enough to choose a clear strategy or direction to adopt. This overall scenarios and assumptions made usually led to a layout of vision for the future with assumed precision. However, one needs to remember that when the time ahead looks uncertain this approach is at best only helpful marginally and...
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...Competitiveness Using Porters National Diamond. Part 1: Porters National Diamond model is used to analyse a firm’s ability to compete in a home market, their ability to compete in a foreign international market and to recognise the particular country and market within that, which a firm would be suited to expanding into. In doing so it analyses the viability of a nation to compete in any given market. The model is described by Ozlem Oz (1999) as “a dynamic system which all elements interact and reinforce each other”. The elements to which this refers are; Factor Conditions, Demand Conditions, Firm Strategy, Structure and Rivalry, and Related and Supporting Industries. These main elements are supplemented with Political and Chance factors which influence all of them. The model explains the relationship between related industries and how this helps successful development. Porter believed that a healthy competition would drive the firms to be innovative. With a competitive market, people have more choice and this provides great market research availability to find out what people want. Fig.1, Michael Porter, Porter’s National Diamond (1990) Throughout this report an analysis of the Chilean wine industry’s competitiveness at an international level will be carried out. Care will also be taken when considering how well the company in question will be suited to expanding into this market. The diagram above, figure 1, displays Porters National Diamond which will...
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...Department of Technology Management and Innovation MG 7953 Global Innovation Fall 2014 Professor: Tom Helling Saturday @ 1:30-6:00 pm (see dates of class per session dates below) Contact Details: th930@nyu.edu 917-593-0946 (mobile) Course Description: This course focuses on the global dimension of technology-enabled innovation. Topics covered include: motivation for a global business outlook, how to proactively access global sources of innovation, coordination and organization of innovation-oriented activities around the world, new product development on a global basis, the role of revitalized global R&D, the growing of prominence of IT, virtual organizations and e-Business, and the increasing role of alliances and linkages with customers, suppliers, and other third parties. Course Structure: This course introduces the latest and most relevant thinking, research and best practices, with an emphasis on learning based on the experiences of actual firms around the world. Individual and team-based project work is an important part of this course. We will be discussing a number of research papers, case studies and relevant reading material during this course. Class interaction is vital to understanding many of the central themes and issues in the area of global innovation. Textbooks: Reverse Innovation, Govindarajan and Trimble, 2012 ISBN-10: 1422157644 ISBN-13: 978-1422157640 The Innovator’s Dilemma, Christensen, 2011 ISBN-10: 0062060244...
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...Strategic Management Apple & Nokia Case Analysis 1. Table of Contents 1.0 EXECUTIVE SUMMARY OF APPLE AND NOKIA CASE 2 2.0 QUESTION 1 3 2.1 Competitive analysis of Apple and Nokia – who is stronger? 3 2.1.1 Competitive Analysis 3 2.1.1.1 SWOT Analysis 5 1.1.1 Strengths of Apple 6 2.1.1.2 Value Chain Analysis 9 2.1.1.3 Resourced Base View Tool 11 3.0 QUESTION 2 14 3.1 PESTEL analysis tool 15 3.2 Porter’s Five Forces 17 3.3 The Implications for Strategic Development are; 21 4.0 QUESTION 3 21 4.1 Critical Analysis Lessons from Apple’s risky but profitable strategy 21 5.0 REFERENCE: 23 1.0 EXECUTIVE SUMMARY OF APPLE AND NOKIA CASE Apple chalked some initial success with its invention of the Macintosh (Mac) computer but with the introduction of the Windows 1.0 from its rival company (Microsoft), it was faced with a threat in the industry. Their earlier strategic decision of not cooperating with rivals in the industry was seen as a weakness which Microsoft capitalized on to make their software available to other computer manufacturers for a license fee. Apple, diversifying into a new market (mobile telephone industry) with the introduction of user friendly products sought industry cooperation when it came to the launch of subsequent products including the iPod and iPhone. This strategic decision was inspired by its past...
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...Introduction Budget airline industry has been profitable during last decade, and particularly Ryanair, as the largest European budget airline company has been vital in this area. Its success in past, issuses nowadays and importantly the sustainablility has drawn significant attention and offered a great oppourtunity for research. This case study will analysis the budget airline through its business model, evironment and industry and finally focus on Ryanair’s strategy position in order to explore its sustainability in future. The framework is briefly illustrated by following figure. Figure 1: Brief Framework of this Case Study The budget airline business model The first company in history to suggest the budget airline business model to the world was Southwest Airlines (SWA) in Texas, USA. At the beginning of 1970s, this company have launched first flights between three major cities in Texas i.e. Houston, Dallas and San Antonio at a price of 20 dollars, which was initiative at that time. It marked itself as budget airline and initiates a business model allowing it to offer scheduled flights service at a very low fare. It would focus on short-distance flights of typically 600 km or one hour with high traffic efficiency. Many strategic approaches of budget airline business model’s operations differ from the more traditional of full service airlines model. 6 main factors can be identified, which are illustrated in the table below: Budget airline | Full service...
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...identify or create authoritative resources to help members resolve their work related information needs. Additionally, our accounting specialists can help CIMA members and students with the interpretation of guidance on financial reporting, financial management and performance management, as defined in the CIMA Official Terminology 2005 edition. CIMA members and students should sign into My CIMA to access these services and resources. The Chartered Institute of Management Accountants 26 Chapter Street London SW1P 4NP United Kingdom T. +44 (0)20 7663 5441 F. +44 (0)20 7663 5442 E. tis@cimaglobal.com www.cimaglobal.com 2 Topic Gateway Series Strategic Analysis Tools Strategic analysis tools Definition and concept Strategic Analysis is: ‘… the process of conducting research on the business environment within which an organisation operates and on the organisation itself, in order to formulate strategy.’ BNET Business Dictionary ‘… a...
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