12/11/2019
LECTURE 11: MULTINATIONAL STRATEGY
TODAY’S TOPICS TODAY’S LEARNING OUTCOMES
• Strategic definitions and overview; levels, By the end of this session you will be able to:
processes, perspectives • Understand the subtleties in defining
• Business level strategy strategy
• Strategic formulation Tools of the trade • Understand the key dimensions of
(PESTLE, SWOT, 5 forces, value chain) strategy as a process, levels,
perspectives
• Understand business level strategy
through the application of generic
STRATEGY: the difference between firms that strategies
succeed and those that fail • framework and the extensions into
hybrid approaches
A good strategy can make a difference. Without it • Understand some of the key external
organizations will have problems in succeeding. and internal analysis tools
Find more insight information on https://strategicmanagementinsight.com
WHY DID WOOLWORTHS CLOSE WHILE PRIMARK BECAME MORE POPULAR?
Woolworths sold stuff nobody wanted while Primark understood what customers were looking
for. It also had superior strategy and awareness of business environment. strategy has
recognised changing business environment.
STRATEGY PROCESSES-RECAP AND EXTENSIONS
This shows the 2 different approaches to strategy:
1. INCREMENTALISM the most common, incrementalism innovation refers to innovation
processes that seek to improve existing systems and products to make them better,
cheaper or faster
2. RADICAL radical innovations are focused on developing revolutionary new
technologies, markets, and business models that change the world
LEVELS OF STRATEGY
Issues of Scope and Parenting Relationship
, BUSINESS STRATEGY (Lecture 9)
• How to Compete? & Cooperate?
• Generic strategies & Hybrid Approaches
DEFINITIONS OF STRATEGY-RECAP AND EXTENSIONS
There’s no such thing as one single definition of strategy.
PORTER’S THREE GENERIC STRATEGIES
• Porter (1980: 1985) argues competitive advantage
involves the choice of clear positioning based on
either low cost, differentiation or focus
• According to Porter (1985), each of these three generic
competitive strategies is a completely different way of
creating a sustainable competitive advantage
• Therefore, a firm must make a choice between low
LECTURE 11: MULTINATIONAL STRATEGY
TODAY’S TOPICS TODAY’S LEARNING OUTCOMES
• Strategic definitions and overview; levels, By the end of this session you will be able to:
processes, perspectives • Understand the subtleties in defining
• Business level strategy strategy
• Strategic formulation Tools of the trade • Understand the key dimensions of
(PESTLE, SWOT, 5 forces, value chain) strategy as a process, levels,
perspectives
• Understand business level strategy
through the application of generic
STRATEGY: the difference between firms that strategies
succeed and those that fail • framework and the extensions into
hybrid approaches
A good strategy can make a difference. Without it • Understand some of the key external
organizations will have problems in succeeding. and internal analysis tools
Find more insight information on https://strategicmanagementinsight.com
WHY DID WOOLWORTHS CLOSE WHILE PRIMARK BECAME MORE POPULAR?
Woolworths sold stuff nobody wanted while Primark understood what customers were looking
for. It also had superior strategy and awareness of business environment. strategy has
recognised changing business environment.
STRATEGY PROCESSES-RECAP AND EXTENSIONS
This shows the 2 different approaches to strategy:
1. INCREMENTALISM the most common, incrementalism innovation refers to innovation
processes that seek to improve existing systems and products to make them better,
cheaper or faster
2. RADICAL radical innovations are focused on developing revolutionary new
technologies, markets, and business models that change the world
LEVELS OF STRATEGY
Issues of Scope and Parenting Relationship
, BUSINESS STRATEGY (Lecture 9)
• How to Compete? & Cooperate?
• Generic strategies & Hybrid Approaches
DEFINITIONS OF STRATEGY-RECAP AND EXTENSIONS
There’s no such thing as one single definition of strategy.
PORTER’S THREE GENERIC STRATEGIES
• Porter (1980: 1985) argues competitive advantage
involves the choice of clear positioning based on
either low cost, differentiation or focus
• According to Porter (1985), each of these three generic
competitive strategies is a completely different way of
creating a sustainable competitive advantage
• Therefore, a firm must make a choice between low
