Evi Bekooij – 2IBM
International strategy
Semester 2 2021/2022
Table of Contents
Chapter 1 – Introducing Strategy........................................................................................3
Chapter summary.........................................................................................................................3
What is strategy...........................................................................................................................3
The exploring strategy model.......................................................................................................4
Strategic business units & product-market matrix........................................................................4
Doing strategy differently.............................................................................................................5
Changing management paradigms...............................................................................................5
Chapter 2: the environment...............................................................................................6
Introduction.................................................................................................................................6
The macro-environment...............................................................................................................7
PESTEL & trends..............................................................................................................................................7
Industries and sectors...................................................................................................................7
Introduction....................................................................................................................................................7
Porter’s 5 forces..............................................................................................................................................8
Competitors and markets.............................................................................................................9
Introduction....................................................................................................................................................9
Strategic groups..............................................................................................................................................9
Strategy canvas & Blue oceans.....................................................................................................................10
Opportunities and threats..........................................................................................................10
Chapter 3: strategic capabilities.......................................................................................10
Introduction...............................................................................................................................11
Foundations of strategic capability.............................................................................................11
Definition and components..........................................................................................................................11
Threshold & distinctive capabilities..............................................................................................................11
Dynamic capabilities.....................................................................................................................................11
Diagnosing strategic capabilities.................................................................................................12
VRIO..............................................................................................................................................................12
SWOT.........................................................................................................................................13
Chapter 4: stakeholders & Governance.............................................................................13
Summary....................................................................................................................................13
Managing stakeholders..............................................................................................................13
Step 1: identify your stakeholders and their interests................................................................14
Step 2: Stakeholder mapping – the power/interest matrix........................................................15
Step 3: stakeholder strategy: how to behave in relation to them?.............................................15
Chapter 5 – Business strategy...........................................................................................16
,Evi Bekooij – 2IBM
Chapter summary.......................................................................................................................16
Introduction...............................................................................................................................16
Generic competitive strategies...................................................................................................16
Introduction..................................................................................................................................................16
Porter – generic competitive strategies.......................................................................................................17
Tracy & Wiersema......................................................................................................................18
Operational excellence.................................................................................................................................18
Product leadership........................................................................................................................................18
Customer intimacy........................................................................................................................................19
Chapter 6 – corporate strategy.........................................................................................19
Introduction...............................................................................................................................19
Strategy directions......................................................................................................................19
Growth: Ansoff’s matrix.............................................................................................................20
Ansoff – market penetration........................................................................................................................20
Ansoff – new products and services (product development)......................................................................20
Ansoff – market development......................................................................................................................20
Ansoff – conglomerate diversification..........................................................................................................21
Vertical integration.....................................................................................................................21
Vertical versus horizontal integration.........................................................................................22
Make or buy decision.................................................................................................................22
Chapter 8 – evaluating strategies.....................................................................................22
Chapter summary.......................................................................................................................22
Evaluate options (SAFe criteria)..................................................................................................23
Suitability......................................................................................................................................................23
Acceptability.................................................................................................................................................23
Feasibility......................................................................................................................................................24
SAFe summary............................................................................................................................25
Chapter 7 – mergers & acquisitions..................................................................................25
Chapter summary.......................................................................................................................25
3 strategy methods to realize a strategic option.........................................................................26
Organic development.................................................................................................................26
Mergers and acquisitions............................................................................................................26
Definition and types......................................................................................................................................26
Motives for M&A..........................................................................................................................................27
M&A process..............................................................................................................................28
Step 1 – target choice...................................................................................................................................28
Step 2 – negotiations....................................................................................................................................28
Step 3 – integration......................................................................................................................................28
Post-acquisition integration mix...................................................................................................................28
Strategic alliances.......................................................................................................................29
Motives for alliances.....................................................................................................................................29
Comparing acquisitions, alliances and organic development......................................................30
Buy, ally or DIY?............................................................................................................................................30
,Evi Bekooij – 2IBM
Chapter 8: e-strategy.......................................................................................................31
E- commerce revenue models – definition..................................................................................31
E-commerce revenue models – major models............................................................................31
Chapter 1 – Introducing Strategy
Chapter summary
• Strategy is the long-term direction of an organisation
• The work of strategy is to define and express the purpose of an organisation through its
mission, vision, values and objectives.
• The Exploring Strategy Model has three major elements: understanding the strategic
position, making strategic choices for the future and managing strategy in action
• Many corporations comprise several, sometimes many, strategic business units. Business
strategy needs to be considered and defined in terms of strategic business units (SBUs).
o Corporate strategy involves the decisions and activities above the level of business
units. It is concerned with the scope of the organisation.
o Business strategy is concerned with seeking competitive advantage in markets at the
business rather than corporate level.
• Although the fundamentals of strategy may be similar, strategy varies by organisational
context, for example small business, multinational or public sector
• Management paradigms are changing from the 20th to the 21st Century
What is strategy
Strategy is the long-term direction of an organization
3 horizon framework looking at abilities to grow as company always focus on al 3
Horizon 1 extend and defend core business (ex. uber: bring you from place A to B)
70% of your business
Horizon 2 build emerging business (ex uber: UberEATS) 20% of your business
Horizon 3 create viable options (ex. uber: flying cars in the future) 10% of your
business
- Strategy is to define and express the purpose of an organization to stakeholders
4 ways to define an organization’s purpose
- mission statement = why do we exist
- vision statement = future image
- statement of corporate values = guidance
- statement of objectives = SMART
, Evi Bekooij – 2IBM
The exploring strategy model
Strategic business units & product-market matrix
Strategic Business Units & product-market matrix part of strategic choices
Corporate level at overall business level
Business-level strategy at business unit level
Functional strategies
SBU = strategic business unit = a part of a corporation grouper around a particular activity,
product group or technology
A small company = 1 SBU
Big company = more SBU’s Mars = mars pet care (Whiskas, Pedigree, Sheba, etc.), mars
chocolate (mars, snickers, m&m’s, Twix, etc.), and mars food (Uncle Ben’s, Ebly, Suzi Wan,
etc.)
- each SBU has responsibility for its own business strategy and profit performance
goal of SBUs:
- To decentralize imitative to smaller units within so SBUs can pursue their own distinct
strategy
- to allow large corporations to vary their busines 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
International strategy
Semester 2 2021/2022
Table of Contents
Chapter 1 – Introducing Strategy........................................................................................3
Chapter summary.........................................................................................................................3
What is strategy...........................................................................................................................3
The exploring strategy model.......................................................................................................4
Strategic business units & product-market matrix........................................................................4
Doing strategy differently.............................................................................................................5
Changing management paradigms...............................................................................................5
Chapter 2: the environment...............................................................................................6
Introduction.................................................................................................................................6
The macro-environment...............................................................................................................7
PESTEL & trends..............................................................................................................................................7
Industries and sectors...................................................................................................................7
Introduction....................................................................................................................................................7
Porter’s 5 forces..............................................................................................................................................8
Competitors and markets.............................................................................................................9
Introduction....................................................................................................................................................9
Strategic groups..............................................................................................................................................9
Strategy canvas & Blue oceans.....................................................................................................................10
Opportunities and threats..........................................................................................................10
Chapter 3: strategic capabilities.......................................................................................10
Introduction...............................................................................................................................11
Foundations of strategic capability.............................................................................................11
Definition and components..........................................................................................................................11
Threshold & distinctive capabilities..............................................................................................................11
Dynamic capabilities.....................................................................................................................................11
Diagnosing strategic capabilities.................................................................................................12
VRIO..............................................................................................................................................................12
SWOT.........................................................................................................................................13
Chapter 4: stakeholders & Governance.............................................................................13
Summary....................................................................................................................................13
Managing stakeholders..............................................................................................................13
Step 1: identify your stakeholders and their interests................................................................14
Step 2: Stakeholder mapping – the power/interest matrix........................................................15
Step 3: stakeholder strategy: how to behave in relation to them?.............................................15
Chapter 5 – Business strategy...........................................................................................16
,Evi Bekooij – 2IBM
Chapter summary.......................................................................................................................16
Introduction...............................................................................................................................16
Generic competitive strategies...................................................................................................16
Introduction..................................................................................................................................................16
Porter – generic competitive strategies.......................................................................................................17
Tracy & Wiersema......................................................................................................................18
Operational excellence.................................................................................................................................18
Product leadership........................................................................................................................................18
Customer intimacy........................................................................................................................................19
Chapter 6 – corporate strategy.........................................................................................19
Introduction...............................................................................................................................19
Strategy directions......................................................................................................................19
Growth: Ansoff’s matrix.............................................................................................................20
Ansoff – market penetration........................................................................................................................20
Ansoff – new products and services (product development)......................................................................20
Ansoff – market development......................................................................................................................20
Ansoff – conglomerate diversification..........................................................................................................21
Vertical integration.....................................................................................................................21
Vertical versus horizontal integration.........................................................................................22
Make or buy decision.................................................................................................................22
Chapter 8 – evaluating strategies.....................................................................................22
Chapter summary.......................................................................................................................22
Evaluate options (SAFe criteria)..................................................................................................23
Suitability......................................................................................................................................................23
Acceptability.................................................................................................................................................23
Feasibility......................................................................................................................................................24
SAFe summary............................................................................................................................25
Chapter 7 – mergers & acquisitions..................................................................................25
Chapter summary.......................................................................................................................25
3 strategy methods to realize a strategic option.........................................................................26
Organic development.................................................................................................................26
Mergers and acquisitions............................................................................................................26
Definition and types......................................................................................................................................26
Motives for M&A..........................................................................................................................................27
M&A process..............................................................................................................................28
Step 1 – target choice...................................................................................................................................28
Step 2 – negotiations....................................................................................................................................28
Step 3 – integration......................................................................................................................................28
Post-acquisition integration mix...................................................................................................................28
Strategic alliances.......................................................................................................................29
Motives for alliances.....................................................................................................................................29
Comparing acquisitions, alliances and organic development......................................................30
Buy, ally or DIY?............................................................................................................................................30
,Evi Bekooij – 2IBM
Chapter 8: e-strategy.......................................................................................................31
E- commerce revenue models – definition..................................................................................31
E-commerce revenue models – major models............................................................................31
Chapter 1 – Introducing Strategy
Chapter summary
• Strategy is the long-term direction of an organisation
• The work of strategy is to define and express the purpose of an organisation through its
mission, vision, values and objectives.
• The Exploring Strategy Model has three major elements: understanding the strategic
position, making strategic choices for the future and managing strategy in action
• Many corporations comprise several, sometimes many, strategic business units. Business
strategy needs to be considered and defined in terms of strategic business units (SBUs).
o Corporate strategy involves the decisions and activities above the level of business
units. It is concerned with the scope of the organisation.
o Business strategy is concerned with seeking competitive advantage in markets at the
business rather than corporate level.
• Although the fundamentals of strategy may be similar, strategy varies by organisational
context, for example small business, multinational or public sector
• Management paradigms are changing from the 20th to the 21st Century
What is strategy
Strategy is the long-term direction of an organization
3 horizon framework looking at abilities to grow as company always focus on al 3
Horizon 1 extend and defend core business (ex. uber: bring you from place A to B)
70% of your business
Horizon 2 build emerging business (ex uber: UberEATS) 20% of your business
Horizon 3 create viable options (ex. uber: flying cars in the future) 10% of your
business
- Strategy is to define and express the purpose of an organization to stakeholders
4 ways to define an organization’s purpose
- mission statement = why do we exist
- vision statement = future image
- statement of corporate values = guidance
- statement of objectives = SMART
, Evi Bekooij – 2IBM
The exploring strategy model
Strategic business units & product-market matrix
Strategic Business Units & product-market matrix part of strategic choices
Corporate level at overall business level
Business-level strategy at business unit level
Functional strategies
SBU = strategic business unit = a part of a corporation grouper around a particular activity,
product group or technology
A small company = 1 SBU
Big company = more SBU’s Mars = mars pet care (Whiskas, Pedigree, Sheba, etc.), mars
chocolate (mars, snickers, m&m’s, Twix, etc.), and mars food (Uncle Ben’s, Ebly, Suzi Wan,
etc.)
- each SBU has responsibility for its own business strategy and profit performance
goal of SBUs:
- To decentralize imitative to smaller units within so SBUs can pursue their own distinct
strategy
- to allow large corporations to vary their busines 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
