University of Amsterdam
Premaster Business Administration
Strategy and Organization; the lectures and seminars
September start 2019-2020
1
,Table of contents
Lecture week 1: Competitive strategy ............................................................................................................. 4
Article 1.1: Porter (1979), How competitive forces shape strategy .................................................................... 5
Article 1.2: Barney (1991), Resource Based View ............................................................................................... 7
Week 1: Seminar 1 ........................................................................................................................................ 10
Article 1.3: Baden-Fuller & Stophorst (1992), the firm matters, not the industry............................................. 10
Lecture Week 2: Corporate strategy .............................................................................................................. 12
Article 2.1: Hedley (1977), Diversification and the business portfolio .............................................................. 13
Article 2.2: Porter (1987), How to formulate corporate strategy ..................................................................... 14
Article 2.3: Prahalad & Hamel (1990), Rethinking the corporation: The role of core competencies ................ 16
Article 2.4: Campell, Goold & Alexander (1995), Realizing the parenting advantage ...................................... 16
Week 2: Seminar 2 ........................................................................................................................................ 19
Lecture week 3: Strategic planning................................................................................................................ 21
Article 3.1: Hax & Majluf (1991), A formal strategic planning process. ........................................................... 23
Article 3.2: Mintzberg (1994), The fall and rise of strategic planning .............................................................. 24
Article 3.3: Cornelius et al. (1999), Scenario planning ...................................................................................... 25
Article 3.4: Grant (2003), Planning in a turbulent environment: evidence from the oil majors ........................ 26
Article 3.5: Eisenhardt & Sull (2001), Strategy as simple rules ......................................................................... 26
Lecture Week 4: strategic decision making .................................................................................................... 30
Article 4.1: Eisenhardt & Zbaracki (1992), What is the rational model of decision making?............................ 31
Article 4.2: Eisenhardt & Zbaracki (1992), Strategic decision-making. ............................................................. 33
Article 4.3: Quinn (1989), Logical incrementalism ............................................................................................ 34
Article 4.4: Hambrick & Mason (1984), ‘Upper echelon’ view of strategic decision making. ........................... 35
Week 4: Seminar 4 ........................................................................................................................................ 37
Lecture week 5: organizations and their context ........................................................................................... 39
Article 5.1: Mintzberg (1978), the structuring of organizations ....................................................................... 41
Article 5.2: Miles & Snow (1978), Organizational strategy, structure and process .......................................... 41
Article 5.3: Romaneli & Tushman (1994), Organizational transformation as punctuated equilibrium. ........... 43
Article 5.4: Luo & Rui (2009): An ambidexterity perspective towards MNEs from emerging economies. ........ 45
Week 5: Seminar 5 ........................................................................................................................................ 47
Lecture week 6: Strategy implementation ..................................................................................................... 50
Article 6.1: Kaplan and Norton (2000), Having trouble with your strategy? Then map it! ............................... 50
Article 6.2: Bourgeois & Brodwin (1984), Strategic implementation: five approaches to an elusive
phenomenon. .................................................................................................................................................... 51
Article 6.3: Burgelman (1983), Corporate entrepreneurship ............................................................................ 52
2
, Article 6.4: Van de Ven & Sun (2011), Breakdowns in implementing models of organization change. ............ 53
Week 6: Seminar 6: An overview of the Strategic safari ................................................................................ 56
3
, Lecture week 1: Competitive strategy
What is strategy about?
- How to develop new products?
- How to outperform competitors?
- Which markets to enter?
- How to realize organizational change?
- How to create synergies?
- Who to cooperate with?
- How to deal with environmental changes?
What is strategy.
Strategy is not a goal. It is the plan to reach a goal.
What is your advantage at the end of the day?
- It is a plan of actions
- Usually with limited time horizon.
- A plan about how firms reach their goals (be unique and create value).
How do firms achieve their goals?
- When your goal is to create value, what do we need to create value?
à On individual level we need talent (rather than strategy) to create value.
à On firm level we need assets (rather than strategy)
Motest argument: Firms with the most (talents/assets) will create more value than its
competitors.
Relationship between acquisitions and firm performance?
à The relationship between acquisitions and firm performance is negative. E.g. when a
company buys another one, a lot of new talent comes to the pool which might have a
negative effect.
Relationship between diversification and firm performance?
à The relationship between diversification and firm performance is mixed.
This concludes that performance does not emerge naturally. It requires some sort of
coordination.
Do we need strategy?
- Reduce uncertainty.
- Asymmetric information.
- Structure and organization (planning).
- How to reach a goal.
Conclusion
Unexplained variance and negative relationships at different levels implies
4
Premaster Business Administration
Strategy and Organization; the lectures and seminars
September start 2019-2020
1
,Table of contents
Lecture week 1: Competitive strategy ............................................................................................................. 4
Article 1.1: Porter (1979), How competitive forces shape strategy .................................................................... 5
Article 1.2: Barney (1991), Resource Based View ............................................................................................... 7
Week 1: Seminar 1 ........................................................................................................................................ 10
Article 1.3: Baden-Fuller & Stophorst (1992), the firm matters, not the industry............................................. 10
Lecture Week 2: Corporate strategy .............................................................................................................. 12
Article 2.1: Hedley (1977), Diversification and the business portfolio .............................................................. 13
Article 2.2: Porter (1987), How to formulate corporate strategy ..................................................................... 14
Article 2.3: Prahalad & Hamel (1990), Rethinking the corporation: The role of core competencies ................ 16
Article 2.4: Campell, Goold & Alexander (1995), Realizing the parenting advantage ...................................... 16
Week 2: Seminar 2 ........................................................................................................................................ 19
Lecture week 3: Strategic planning................................................................................................................ 21
Article 3.1: Hax & Majluf (1991), A formal strategic planning process. ........................................................... 23
Article 3.2: Mintzberg (1994), The fall and rise of strategic planning .............................................................. 24
Article 3.3: Cornelius et al. (1999), Scenario planning ...................................................................................... 25
Article 3.4: Grant (2003), Planning in a turbulent environment: evidence from the oil majors ........................ 26
Article 3.5: Eisenhardt & Sull (2001), Strategy as simple rules ......................................................................... 26
Lecture Week 4: strategic decision making .................................................................................................... 30
Article 4.1: Eisenhardt & Zbaracki (1992), What is the rational model of decision making?............................ 31
Article 4.2: Eisenhardt & Zbaracki (1992), Strategic decision-making. ............................................................. 33
Article 4.3: Quinn (1989), Logical incrementalism ............................................................................................ 34
Article 4.4: Hambrick & Mason (1984), ‘Upper echelon’ view of strategic decision making. ........................... 35
Week 4: Seminar 4 ........................................................................................................................................ 37
Lecture week 5: organizations and their context ........................................................................................... 39
Article 5.1: Mintzberg (1978), the structuring of organizations ....................................................................... 41
Article 5.2: Miles & Snow (1978), Organizational strategy, structure and process .......................................... 41
Article 5.3: Romaneli & Tushman (1994), Organizational transformation as punctuated equilibrium. ........... 43
Article 5.4: Luo & Rui (2009): An ambidexterity perspective towards MNEs from emerging economies. ........ 45
Week 5: Seminar 5 ........................................................................................................................................ 47
Lecture week 6: Strategy implementation ..................................................................................................... 50
Article 6.1: Kaplan and Norton (2000), Having trouble with your strategy? Then map it! ............................... 50
Article 6.2: Bourgeois & Brodwin (1984), Strategic implementation: five approaches to an elusive
phenomenon. .................................................................................................................................................... 51
Article 6.3: Burgelman (1983), Corporate entrepreneurship ............................................................................ 52
2
, Article 6.4: Van de Ven & Sun (2011), Breakdowns in implementing models of organization change. ............ 53
Week 6: Seminar 6: An overview of the Strategic safari ................................................................................ 56
3
, Lecture week 1: Competitive strategy
What is strategy about?
- How to develop new products?
- How to outperform competitors?
- Which markets to enter?
- How to realize organizational change?
- How to create synergies?
- Who to cooperate with?
- How to deal with environmental changes?
What is strategy.
Strategy is not a goal. It is the plan to reach a goal.
What is your advantage at the end of the day?
- It is a plan of actions
- Usually with limited time horizon.
- A plan about how firms reach their goals (be unique and create value).
How do firms achieve their goals?
- When your goal is to create value, what do we need to create value?
à On individual level we need talent (rather than strategy) to create value.
à On firm level we need assets (rather than strategy)
Motest argument: Firms with the most (talents/assets) will create more value than its
competitors.
Relationship between acquisitions and firm performance?
à The relationship between acquisitions and firm performance is negative. E.g. when a
company buys another one, a lot of new talent comes to the pool which might have a
negative effect.
Relationship between diversification and firm performance?
à The relationship between diversification and firm performance is mixed.
This concludes that performance does not emerge naturally. It requires some sort of
coordination.
Do we need strategy?
- Reduce uncertainty.
- Asymmetric information.
- Structure and organization (planning).
- How to reach a goal.
Conclusion
Unexplained variance and negative relationships at different levels implies
4
