, International Business Strategy – Summary
Week 1: JWS 1, 3 & 4 + Porter 1996 article
Lecture
Keywords strategy: change – competition – management – analysis – contingency plan –
future – policy – goals – institutions – planning – finance – profit – innovations
Strategy is…
Long-term direction
Scope of activities: what business are we in?
Positioning: who do(‘nt) we serve?
Resources and competences: what do we use? And how?
Fulfilling expectations: how good?
Advantage: what do we do better?
These questions can be answered using the mission statement of a company.
Strategy implements…
VRIO-framework – sustainable competitive advantage.
Valuable: market potential?
Rare: not same value perceived with other product?
Inimitable: costly to imitate.
Organizationally embedded: exploited non-substitutes.
To see whether the firm is competitive and to determine its current market position –
only focusing on resources and capabilities.
SWOT-analysis: Strengths, Weaknesses, Opportunities and Threats. Internal (SW) and
external (OT). SWOT is an extension of VRIO.
JWS
Chapter 1 – Introducing Strategy
Strategy – long-term direction of an organization. There
are different definitions of strategy:
Chandler: long-run goals and objectives and allocation of resources.
Porter: being different, different set of activities, unique mix of value.
Mintzberg: pattern in a stream of decisions.
Exploring Strategy: long-term direction of an organization. Long
term
Three horizons framework – comprising three types of business or activity:
1) Core activities
2) Emerging activities new source of profit
3) Possibilities: unsure (R&D)
, Essential: managers need to avoid focusing on the short-term issues. Strategic
direction
Trajectory, long-term objectives are set. Depends on the type of organization. I.e.: private
sector; maximizing profits for shareholders. However, profit not always strategy drive.
Organization
Not only organization, but also stakeholders: people working inside or outside the
organization: involved with different interests and views.
Strategic management – managing people, relationships and resources.
Levels of Strategy
Corporate-level strategy – overall scope of an organization and how value is
added.
Business-level strategy – how individual business should compete in their
particular markets.
Operational strategies – how the components deliver effectively to both corporate-
level and business-level strategies in terms of resources, processes and people –
integration.
Strategy Statements
Strategy statements – three main themes: fundamental goals: mission, vision and
objectives; scope or domain activities and advantages/capabilities.
Mission: what business are we in? – Mission statement.
Vision: what do we want to achieve? – Vision statement.
Objectives: what do we have to achieve in the coming period?
Scope: three dimensions: customers/clients, geographical location, extent of
internal activities.
Advantage: being better than others to achieve same goal.
Exploring strategy model – understanding strategic position assessing strategic choices for
the future and managing strategy in action – equally prior.
Strategic position – impact on strategy of external environment, strategic
capability, goals and culture:
× Environment – opportunities and threats (swOT). Regarding: political,
social, technological and economic.
× Strategic choices – resources and competences: strengths and
weaknesses (SWot). Competitive (dis)advantage? Adequate tools?
× Strategic purpose – vision, mission and objectives, influenced by
governance structure and culture. What does it seek to achieve?
Strategic choices – options for strategy: directions and methods.
Week 1: JWS 1, 3 & 4 + Porter 1996 article
Lecture
Keywords strategy: change – competition – management – analysis – contingency plan –
future – policy – goals – institutions – planning – finance – profit – innovations
Strategy is…
Long-term direction
Scope of activities: what business are we in?
Positioning: who do(‘nt) we serve?
Resources and competences: what do we use? And how?
Fulfilling expectations: how good?
Advantage: what do we do better?
These questions can be answered using the mission statement of a company.
Strategy implements…
VRIO-framework – sustainable competitive advantage.
Valuable: market potential?
Rare: not same value perceived with other product?
Inimitable: costly to imitate.
Organizationally embedded: exploited non-substitutes.
To see whether the firm is competitive and to determine its current market position –
only focusing on resources and capabilities.
SWOT-analysis: Strengths, Weaknesses, Opportunities and Threats. Internal (SW) and
external (OT). SWOT is an extension of VRIO.
JWS
Chapter 1 – Introducing Strategy
Strategy – long-term direction of an organization. There
are different definitions of strategy:
Chandler: long-run goals and objectives and allocation of resources.
Porter: being different, different set of activities, unique mix of value.
Mintzberg: pattern in a stream of decisions.
Exploring Strategy: long-term direction of an organization. Long
term
Three horizons framework – comprising three types of business or activity:
1) Core activities
2) Emerging activities new source of profit
3) Possibilities: unsure (R&D)
, Essential: managers need to avoid focusing on the short-term issues. Strategic
direction
Trajectory, long-term objectives are set. Depends on the type of organization. I.e.: private
sector; maximizing profits for shareholders. However, profit not always strategy drive.
Organization
Not only organization, but also stakeholders: people working inside or outside the
organization: involved with different interests and views.
Strategic management – managing people, relationships and resources.
Levels of Strategy
Corporate-level strategy – overall scope of an organization and how value is
added.
Business-level strategy – how individual business should compete in their
particular markets.
Operational strategies – how the components deliver effectively to both corporate-
level and business-level strategies in terms of resources, processes and people –
integration.
Strategy Statements
Strategy statements – three main themes: fundamental goals: mission, vision and
objectives; scope or domain activities and advantages/capabilities.
Mission: what business are we in? – Mission statement.
Vision: what do we want to achieve? – Vision statement.
Objectives: what do we have to achieve in the coming period?
Scope: three dimensions: customers/clients, geographical location, extent of
internal activities.
Advantage: being better than others to achieve same goal.
Exploring strategy model – understanding strategic position assessing strategic choices for
the future and managing strategy in action – equally prior.
Strategic position – impact on strategy of external environment, strategic
capability, goals and culture:
× Environment – opportunities and threats (swOT). Regarding: political,
social, technological and economic.
× Strategic choices – resources and competences: strengths and
weaknesses (SWot). Competitive (dis)advantage? Adequate tools?
× Strategic purpose – vision, mission and objectives, influenced by
governance structure and culture. What does it seek to achieve?
Strategic choices – options for strategy: directions and methods.
