CHAPTER 1
INTRODUCTION
University focuses on research or on education – focus on both, people need to be able to teach and strategy.
Video games
Google and Apple – they need to find new skills, a strategy, there is a need to grow
Just Eat and Take Away – a strategist needs to look at the merger. Is it a good idea? Is it better with another company?
WHAT IS STRATEGY?
- You need to adapt to the country/situations
- DEF: A long term direction of an organization
Long-term aspect of strategy
- Look at it in 3 horizons
1) extend and defend core business
2) build emerging businesses
3) create viable options
- Example Uber: problem for Uber in Europe. Europe is trying to block Uber. Uber needs to try defending and
extending their core business (transportation). They need to create viable options. Think of Uber Eat.
Educational concept: we actively help to create a society we dream of, where people are allowed to become the best
version of there selves…
- Three Goals
1) Professional Development
2) Personal Development
3) Development to be a global citizen
STRATEGY DIRECTION
- Short term = less then 1 year
- Long term = 3 years because things change very fast
Example Fluvius – they want to be THE Flemish multi-utility company. The merger took the strength of both companies
and made the new company a success. It knows who its target people are and also who are so – it’s a Flemish company
STRATEGY ORGANISATION
- Strategy is important for all types of organizations
- Not treated as discrete, unified entities. (Involve complex relationships, both internally and externally – many
internal and external stakeholders.)
THE PURPOSE OF STRATEGY: MISSION – VISION – VALUES – OBJECTIVES
What is strategy for?
- To define and express the purpose of an organization to stakeholders
- 4 ways to define an organization’s purpose:
o Mission statement = why do we exist
1
, o Vision statement = future image
o Statement of corporate values = guidance
o Statement of objectives = SMART (Specific – measurable – achievable – realistic – timely)
- Goals are part of every aspect of business/life and provide a sense of direction, motivation, a clear focus, and
clarity importance. By setting goals you are providing yourself with a target to aim for. A SMART goal is used to
help guide goal setting.
THE EXPLORING STRATEGY MODEL
STRATEGY FORMULATION
external internal
Vision and long term alternative strategy
opportunities strenghts and
mission objectivs objectives selection
and threats weaknesses
ISSUES IN STRATEGY FORMULATION
Avoidance of
Business to Business to Allocation of Expansion or International Mergers or
hostile
enter abandon resources diversification markets joint ventures
takeover
STRATEGY IMPLEMENTATION (MANDATORY FOR COMPANIES)
Annual Employee Resources
Policies
Objectives Motivation Allocation
HR is very important. It is mandatory for companies to understand people and employees.
Strategic position – impact of:
- The external environment
- The organization’s strategic capability/internal environment
(resources & competences)
- The organization’s stakeholders
- The organization’s culture – other courses
Strategic Choices
- Options for strategy (the directions in which strategy might
move – the methods by which strategy might be pursued)
- How should individual business units compete
- Which businesses to include in the portfolio
- Where should the organization compete internationally
- Is the organization innovating appropriately
- Should the organization buy other companies, for alliances or do it alone?
Strategy in action – How strategies are formed and how they are implemented. Emphasis on practicalities of managing.
2
, - Which strategies are suitable, acceptable, and feasible
- What kind of strategy-making process is needed
- What are the required organization structures and systems
- How should the organization manage necessary changes
- Who should do what in the strategy process? Which people and what activities?
Each industry has stakeholders > shareholders. Culture is the main subject of impact allocated = hard to achieve
something. Recognize the problem and practice the strategy. Business strategies are different than corporate ones.
KEY TERMS IN STRATEGIC MANAGEMENT
- Competitive advantage
- Strategists
- Vision and mission statements
- External opportunities and threats
- Internal strengths and weaknesses
- Long-term objectives
- Strategies
- Annual objectives
- policies
STRATEGIC BUSINESS UNITS & PRODUCT-MARKET MATRIX
Corporate level strategy – at overall business level
Business level strategy – at business unit level
Functional strategies
Definition: SBU (strategic business unit) = a part of a corporation grouped around a particular activity, product group or
technology.
Each SBU has responsibility for its own business strategy and profit performance.
Goals of SBU:
To decentralize initiative to smaller units within the corporation so SBUs can pursue their own distinct strategy
To allow large corporations to vary their business strategies according to the different needs of external markets
To encourage accountability – each SBU can be held responsible for the success or failure of its own strategy
How to identify SBUs in a company?
Market-based criteria (same customer types – same channels – similar competitors)
Capabilities-based criteria
3
, CHAPTER 2
DIFFERENT INTERNATIONAL STRATEGIES
4 MOST COMMON INTERNATIONAL BUSINESS STRATEGIES
(1) International strategy
- An international strategy is the basic business
strategy that any company willing to expand
overseas undertakes. It focuses on an
individual point of operation like exporting
products and services to different countries or
importing products and services from other
countries.
- Easiest and most accessible
Benefits
- It helps businesses test the global appeal of
their services and products without huge
investments or infrastructural/staffing costs
- The strategy enables companies to simplify
their product portfolios based on which product
does well globally and cut down on their SKUs
- It opens doors to new revenue potential and sales expansion
- It provides companies with easier access to talent across the globe
- Organizations get an opportunity to absorb new cultures and traditions worldwide, promoting
diversity and inclusion.
- It exposes companies to foreign direct investments and captures global market shares
- It also immediately helps the business to build a standardized, reputed, and recognizable brand
worldwide
(2) Multi-Domestic strategy
- A multi-domestic strategy is a dynamic strategy as it focuses on achieving the maximum local
responsiveness of customers towards the brand through local customization and personalization
of products.
- Businesses tweak their marketing strategies based on the region they are operating in to match
national conditions and sentiments.
Benefits
- It helps companies create a local product portfolio that can be scaled as per their performance
4
INTRODUCTION
University focuses on research or on education – focus on both, people need to be able to teach and strategy.
Video games
Google and Apple – they need to find new skills, a strategy, there is a need to grow
Just Eat and Take Away – a strategist needs to look at the merger. Is it a good idea? Is it better with another company?
WHAT IS STRATEGY?
- You need to adapt to the country/situations
- DEF: A long term direction of an organization
Long-term aspect of strategy
- Look at it in 3 horizons
1) extend and defend core business
2) build emerging businesses
3) create viable options
- Example Uber: problem for Uber in Europe. Europe is trying to block Uber. Uber needs to try defending and
extending their core business (transportation). They need to create viable options. Think of Uber Eat.
Educational concept: we actively help to create a society we dream of, where people are allowed to become the best
version of there selves…
- Three Goals
1) Professional Development
2) Personal Development
3) Development to be a global citizen
STRATEGY DIRECTION
- Short term = less then 1 year
- Long term = 3 years because things change very fast
Example Fluvius – they want to be THE Flemish multi-utility company. The merger took the strength of both companies
and made the new company a success. It knows who its target people are and also who are so – it’s a Flemish company
STRATEGY ORGANISATION
- Strategy is important for all types of organizations
- Not treated as discrete, unified entities. (Involve complex relationships, both internally and externally – many
internal and external stakeholders.)
THE PURPOSE OF STRATEGY: MISSION – VISION – VALUES – OBJECTIVES
What is strategy for?
- To define and express the purpose of an organization to stakeholders
- 4 ways to define an organization’s purpose:
o Mission statement = why do we exist
1
, o Vision statement = future image
o Statement of corporate values = guidance
o Statement of objectives = SMART (Specific – measurable – achievable – realistic – timely)
- Goals are part of every aspect of business/life and provide a sense of direction, motivation, a clear focus, and
clarity importance. By setting goals you are providing yourself with a target to aim for. A SMART goal is used to
help guide goal setting.
THE EXPLORING STRATEGY MODEL
STRATEGY FORMULATION
external internal
Vision and long term alternative strategy
opportunities strenghts and
mission objectivs objectives selection
and threats weaknesses
ISSUES IN STRATEGY FORMULATION
Avoidance of
Business to Business to Allocation of Expansion or International Mergers or
hostile
enter abandon resources diversification markets joint ventures
takeover
STRATEGY IMPLEMENTATION (MANDATORY FOR COMPANIES)
Annual Employee Resources
Policies
Objectives Motivation Allocation
HR is very important. It is mandatory for companies to understand people and employees.
Strategic position – impact of:
- The external environment
- The organization’s strategic capability/internal environment
(resources & competences)
- The organization’s stakeholders
- The organization’s culture – other courses
Strategic Choices
- Options for strategy (the directions in which strategy might
move – the methods by which strategy might be pursued)
- How should individual business units compete
- Which businesses to include in the portfolio
- Where should the organization compete internationally
- Is the organization innovating appropriately
- Should the organization buy other companies, for alliances or do it alone?
Strategy in action – How strategies are formed and how they are implemented. Emphasis on practicalities of managing.
2
, - Which strategies are suitable, acceptable, and feasible
- What kind of strategy-making process is needed
- What are the required organization structures and systems
- How should the organization manage necessary changes
- Who should do what in the strategy process? Which people and what activities?
Each industry has stakeholders > shareholders. Culture is the main subject of impact allocated = hard to achieve
something. Recognize the problem and practice the strategy. Business strategies are different than corporate ones.
KEY TERMS IN STRATEGIC MANAGEMENT
- Competitive advantage
- Strategists
- Vision and mission statements
- External opportunities and threats
- Internal strengths and weaknesses
- Long-term objectives
- Strategies
- Annual objectives
- policies
STRATEGIC BUSINESS UNITS & PRODUCT-MARKET MATRIX
Corporate level strategy – at overall business level
Business level strategy – at business unit level
Functional strategies
Definition: SBU (strategic business unit) = a part of a corporation grouped around a particular activity, product group or
technology.
Each SBU has responsibility for its own business strategy and profit performance.
Goals of SBU:
To decentralize initiative to smaller units within the corporation so SBUs can pursue their own distinct strategy
To allow large corporations to vary their business strategies according to the different needs of external markets
To encourage accountability – each SBU can be held responsible for the success or failure of its own strategy
How to identify SBUs in a company?
Market-based criteria (same customer types – same channels – similar competitors)
Capabilities-based criteria
3
, CHAPTER 2
DIFFERENT INTERNATIONAL STRATEGIES
4 MOST COMMON INTERNATIONAL BUSINESS STRATEGIES
(1) International strategy
- An international strategy is the basic business
strategy that any company willing to expand
overseas undertakes. It focuses on an
individual point of operation like exporting
products and services to different countries or
importing products and services from other
countries.
- Easiest and most accessible
Benefits
- It helps businesses test the global appeal of
their services and products without huge
investments or infrastructural/staffing costs
- The strategy enables companies to simplify
their product portfolios based on which product
does well globally and cut down on their SKUs
- It opens doors to new revenue potential and sales expansion
- It provides companies with easier access to talent across the globe
- Organizations get an opportunity to absorb new cultures and traditions worldwide, promoting
diversity and inclusion.
- It exposes companies to foreign direct investments and captures global market shares
- It also immediately helps the business to build a standardized, reputed, and recognizable brand
worldwide
(2) Multi-Domestic strategy
- A multi-domestic strategy is a dynamic strategy as it focuses on achieving the maximum local
responsiveness of customers towards the brand through local customization and personalization
of products.
- Businesses tweak their marketing strategies based on the region they are operating in to match
national conditions and sentiments.
Benefits
- It helps companies create a local product portfolio that can be scaled as per their performance
4
