BMA799 Strategic Management Semester 2, 2006 The lecturing team responsible for this unit will be: Mr Peter Dixon (Unit Coordinator) Room: A245 (Launceston) Phone: 6324 3329 Email: Peter. [email protected] edu. au Mr Wayne O’Donohue Room: 301 (Hobart) Phone: 6326 1713 Email: Wayne. [email protected] edu. au http://www. utas. edu. au/mgmt/student. htm Introduction to the Unit
The study of strategic management involves an analysis of the factors which govern the success or otherwise of an organisation operating in contemporary society. The analysis includes an examination of factors external to the organisation which may either threaten its operations, or provide opportunities for development, and internal factors which either strengthen or weaken its capacity to develop, and perhaps, ultimately, to survive.
An examination is made of an organisation’s core competencies and its ability to take advantage of opportunities in a highly competitive global environment. Management decision making at the strategic level, which determines the future direction of the organisation is examined with a view to judging whether implementation, control and evaluation is feasible.
The principles underlying the study of strategic management are applicable to both profit-making and nonprofit making organisations. Learning Outcomes
On completion of this unit, you should be able to: • • • • Have knowledge and understanding of the main theories, concepts and frameworks relating to strategy in organisations Be able to analyse factual situations presented in case studies and apply to that analysis those main theories, concepts and frameworks Be able to conceptualise and articulate strategy in terms of the complexity and uncertainty facing business organisations Be able to critically evaluate the usefulness and relevance of existing theories, oncepts and frameworks in dealing with issues in strategic management Generic Graduate Attributes The University has defined a set of generic graduate attributes (GGAs) that can be expected of all graduates (see http://www. utas. edu. au/tl/policies/index. htm).
By undertaking this unit you should make progress in attaining the following attributes: Knowledge • To enable you to understand and explain central theory in strategic management • To help you in applying strategic management principles to present of future work experiences • To enable you to integrate conceptual approaches to strategic management and write real world experiences Communication Skills • Demonstrate written communication • Present well reasoned arguments • Listen to and evaluate the views of others Problem Solving Skills • Conceptualise problems and formulate a range of solutions • Identify critical issues facing real world organisations • Find, acquire, evaluate and use relevant information using a range of resources Global Perspective • Demonstrate an awareness of the local and global context of strategic management issues 2 Social Responsibility • Acknowledge the social and ethical responsibilities of organisations and the link to strategy formation and implementation Texts Prescribed Text de Wit, B. & Mayer, R. 2004.
Strategy: Process, content, context. London: Thomson Learning. School Publications Students must obtain the following electronic publications which are available from the School of Management website: http://www. utas. edu. au/mgmt/student. htm Writing Assignments: A Guide School of Management Referencing Style Recommended Reading The publications listed below are highly recommended for further reading on the topics covered in the unit. Books Belanger, J. , Berggra, C. , Bjorkman, T. & Kohler K. 2000. Being local worldwide. Cornell University Press: USA. Chandler, A. , Hagstrom, P. & Solvell, O. 2000. The dynamic firm. O. U. P: USA. Clegg, S. , Hardy, C. Nord, W. 1996. Handbook of organisation studies. London: Sage. Costain, H. (Ed. ). 1998. Readings in strategic management. Sydney: Dryden. Francis, I. 1997. Future direction: The power of the competitive board. Melbourne: Pitman. Hanson, D. , Dowling, P. , Hitt, M. A. , Ireland, R. D. & Hoskisson, R. E. 2005. Strategic management: Competitiveness and globalization (2nd Pacific Rim ed. ). Melbourne: Nelson Thomson Learning. Harvey, D. 1989. The condition of post modernity. Blackwell: Oxford. Hendry, C. , Arthur, M. & Jones, A. 1995. Strategy through people: Adaptation and learning in the smallmedium enterprise. London: Routledge. Hubbard, G. 2004.
Strategic management: Thinking, analysis and action. Sydney: Prentice-Hall. Joyce, P. 2000. Effective strategic change in the public sector. Wiley, London. Klein, N. 200. No logo. Scribe: London. 3 Lewis, G. , Markel, A. , Hubbard, G. , Davenport, S. & Stockport, G. 1999. Australian and New Zealand strategic management. Sydney: Prentice Hall. McKiernan, P. (Ed. ). 1996. Historical evolution of strategic management–Volumes 1 & 2. Sydney: Dartmouth. Mintzberg, H. 1994. The rise and fall of strategic planning. New York: The Free Press. Mintzberg, H. & Quinn, B. (Eds. ). 1998. Readings in the strategy process (3rd ed. ). Sydney: Prentice-Hall. Porter, M. 1990.
Competitive advantage of nations. London: MacMillan. Porter, M. 1985. Competitive advantage. New York: The Free Press. Porter, M. , Taeuchi H. & Sakakibara, M. 2000. Can Japan compete? Hampshire: MacMillon. Segal-Horn, S. 1998. The strategy reader. Blackwell: Oxford. Stacey, R. D. 1996. Strategic management and organisational dynamics. Sydney: Pitman. Tapscott, D. 1996. The digital economy. New York: McGraw-Hill. Viljoen, J. & Dann, S. 2003. Strategic Management. Sydney: Prentice-Hall. Journals and Periodicals Apart from books, you will find it valuable to get into the practice of reading relevant articles from journals and periodicals (including newspapers and magazines).
Academy of Management Journal Academy of Management Review Asia Pacific Journal of Management Australian & New Zealand Academy of Management Journal Australian Journal of Management California Management Review Harvard Business Review Journal of General Management Long Range Planning Sloan Management Review Strategic Management Journal In addition to the journals, try to read The Australian Financial Review and magazines which treat management in a serious way. The Bulletin, Fortune International, Business Week International and Business Review Weekly are examples of relevant magazines. Unit Structure Saturday Workshops There will be seven three-hour workshops scheduled on Saturdays. These workshops are a compacted style of teaching the conventional weekly lecturer/tutorial, with face-to-face contact between students and lecturers 4 usually occurring every two weeks. It is essential that students complete the required reading and study tasks from the unit outline (and/or accompanying unit materials) before the workshop.
Coursework Paper Case Study Assignment Examination Total Marks 10 40 50 100 12 August 2006 7 October 2006 Exam Period 1500 words 4000 words 3 hours * Word Limit: The word count includes such items as headings, in-text references, quotes and executive summaries. It does not include the reference list at the end of the assignment. 5 Examination Format The final examination will be of three (3) hours duration, preceded by 15 minutes reading time. The examination is worth 50 percent of the total available marks. No materials are allowed into the examination room for this unit. You must bring your student identification card to the examination. The examination will consist of a case study and a series of questions to be answered about the case.
The case will be made available to students at the commencement of the study period. The best preparation for the exam is consistent work throughout the semester. Scheduled date and place Your final examination for this unit will be held during the scheduled examination period as indicated by Student Administration in correspondence to you. Examinations will normally be scheduled Monday to Saturday inclusive. Examinations may be held during he day or evening and students should consult the university information which will be made available towards the end of semester. You are advised to make any necessary arrangements with employers now for time off during examination period to sit this examination.
Your participation at the scheduled time is not negotiable unless there are exceptional circumstances. Note that you will be expected to sit the examination at your recorded study centre. Supplementary Examination Except in special circumstances and on the recommendation of the lecturer-in-charge or the Head of School, a student who fails will not be granted a supplementary examination. Submission of Coursework Lodging Coursework All Coursework must have the School of Management Assignment Cover Sheet and Title Page attached. Both of which are available as a blank template from the School of Management website: http://www. utas. edu. au/mgmt/student. tm Please remember that you are responsible for lodging your written Coursework on or before the due date. We suggest you keep a copy—photocopying is ideal. Even in the most ‘perfect’ of systems, items sometimes go astray. Hobart students: Lodge in assignment box at room 316, Commerce & Economics Building. Launceston students: Lodge in assignment box beside room A170. Alternatively, you may mail your assignments to the School of Management, University of Tasmania at the postal address: Locked Bag 1316, Launceston, Tas. 7250. All coursework must be handed in at 2. 00 p. m. on the due date. 6 Late Coursework Written Work Extensions will only be granted on medical or compassionate grounds and will not be granted because of work or other commitments.
Requests for extensions should be made in writing to the Unit Coordinator prior to the due date. Medical certificates or other evidence must be attached and must contain information which justifies the extension sought. Late assignments which have not been granted an extension will, at the lecturer’s discretion, be penalised by deducting ten per cent of total marks for each full day overdue. Assignments submitted more than six days late will normally not be accepted by the lecturer-in-charge. Return of Coursework Coursework will be returned during classes or it can be collected from the lecturer’s or tutor’s room at nominated times; it will not be available from the School’s offices. Plagiarism Plagiarism is a form of cheating.
It is taking and using someone else’s thoughts, writings or inventions and representing them as your own, for example: • • • using an author’s words without putting them in quotation marks and citing the source; using an author’s ideas without proper acknowledgment and citation; or copying another student’s work. If you have any doubts about how to refer to the work of others in your assignments, please consult your lecturer or tutor for relevant referencing guidelines, and the academic integrity resources on the web at http://www. utas. edu. au/tl/supporting/academicintegrity/index. html. The intentional copying of someone else’s work as one’s own is a serious office punishable by penalties that may range from a fine or deduction/cancellation of marks and, in the most serious of cases, to exclusion from a unit, a course or the University.
Details of penalties that can be imposed are available in the Ordinance of Student Discipline—Part 3 Academic Misconduct, see http://www. utas. edu. au/universitycouncil/legislation/ord9. pdf The University reserves the right to submit (or to require you to submit) assignments to online plagiarism detection software, and might then retain a copy of the assignment on its database for the purpose of future plagiarism checking. 7 Unit Presentation The Unit will be presented in seven workshops, in 3 hour blocks, by fortnightly seminars on the Hobart Campus. Launceston students may, at their option elect to travel to Hobart for Workshops 2, 4 and 6, or attend alternative Workshops at the Launceston Campus on days and at times to be agreed.
The first workshop will be taken by the Unit presenters and will consist of an overview of the Unit and specific discussion of case analysis. In the latter part of the first workshop we will introduce a discussion of the strategic management process by using an illustrative case and supporting readings. Each workshop thereafter will be case based and, in general, two cases will be analysed during each workshop with the discussion being led by the Unit presenter. During those discussions the Readings will be introduced by the Unit presenter. To make this process worthwhile it will be assumed that students will have, at least read the cases and readings set for each Workshop, and considered the case questions set in the Study Schedule.
Following recent New Zealand experience (see McQueen, 1995) the overall intention of this approach is to facilitate your discovery of strategic management theory and practice by the case study method, rather than by the more traditional lecture/tutorial mode. The case study method involves inductive learning, moving from the particular (the case) to the general (theory), involving analysis of real world examples (the cases) in the context of class discussion. The case study method will enable you to learn by discovery, probing, practice, discussion, and contrast and comparison. The Unit presenters will do all that they can to facilitate this learning process. 8 Assignment Topics Paper Due Date: Length: Value: 12 August 2006, 2. 00 p. m. 1500 words (maximum) 10 marks
Write a paper on the question contained in either of Option A or Option B. Please follow usual presentation guidelines and provide a sufficient number of academic references in support of your answer. Option A Should managers view strategic reasoning primarily as a rational and deductive activity or as a more imaginative and generative process? Option B Why are strategic problems usually ‘wicked’? Case Study Assignment Due Date: Length: Value: 7 October 2006, 2. 00 p. m. 4000 words (maximum) 40 marks Read the case study ‘Ducati’ (Case No 16 in de Wit & Meyer) and answer the following question: Question What strategies should Ducati plan in order to prosper? To answer this question you will need to perform a full analysis of the Case using relevant strategic management theory). Notes • • • • A marking guide that will identify the criteria by which this Assignment will be assessed will be made available early in the Semester. You may use sub-headings but the Assignment must follow a basic narrative form. Dot points may be used to assist in communicating your answer. You may use academic or other material extraneous to the Case to assist you in developing and justifying your recommended strategies. Marks may be deducted for a failure to comply with presentation standards (see above) and for failing to observe referencing conventions. 9 CASE ANALYSIS
Compiled by Peter Dixon (2004) There are many approaches to case analysis and most of the Strategic Management texts have a chapter dealing with it. Irrespective of what approach is adopted, and there is no one ‘right’ way to complete this process, you should address three major themes – the organisation in terms of its external environment, the organisation in terms of its internal environment, and recommendations as to how the organisation is to deal with its future (Hubbard, 2004). We examine each of these themes in turn. Environmental Analysis Macro (mega) Environment Much of this part of case analysis will be well known to you from courses previously studied, and, indeed, from your own knowledge.
From the case simply identify elements in the external environment that impact on the organisation under these headings: • • • • • • Political Legal Socio-cultural Technological Legal Demographic Summarise your findings. How might the factors you have identified impact upon the organisation, or, the industry it is in? Do they present opportunities, or threats? Is there anything in the macro environment that cannot be changed? Can the organisation alter its macro environment? Industry Environment The first step here is to identify the industry that the organisation is in. The importance of this cannot be overstated as much of your subsequent analysis will proceed from this.
For example, Amazon Books. Is it in the book industry? If so, what part of the book industry? If it is not in the book industry, is it in the on line selling industry (remember that it now sells more than books)? Having defined the industry you can now use Porter’s ‘five forces’ model to analysis the industry and the place of the organisation within it, either as an existing player, or, as a new entrant. The outcome of this analysis is to address the question: Is this industry an attractive one to enter, or, to remain in? The five forces are: • Threat of new entrants – a cautionary note: this has two dimensions – what barriers to entry are there (e. g. conomies of scale, product differentiation, capital needed, switching costs, access to distribution channels, government policy etc), and, what retaliation might be expected from existing players Power of suppliers Power of buyers Threat of substitutes Rivalry – this addresses the intensity of rivalry actual or anticipated by reason of entry to the industry. • • • • As mentioned from the Porter analysis you will have some data from the case which will enable to write an industry snapshot – its profitability, its trends, its opportunities, its threats, the behaviour of participants, the factors necessary to achieve success within it, and, most importantly, the attractiveness of the industry. 10 Organisation Analysis Again, you will have some familiarity with this process which is sometimes referred to as ‘internal’ analysis.
Whereas environmental (or external) analysis is concerned with what an organisation might do organisational (or internal) analysis is concerned with asking what an organisation can do in response to its external opportunities or threats. Existing Strategy What strategies is the organisation following? You need to consider this at a number of levels: • • • • • • Business level: how is it competing in its various businesses? Is it adopting one or more of the generic business level strategies (cost leadership, differentiation, integrated)? What product markets is it involved in? How do those markets link to the strategies? Corporate level: in what businesses has the organisation decided to compete? What is the extent of diversification? Is diversification impeding profitability?
International level: has the firm internationalised? How has it achieved this? What generic international strategies is it following? Cooperative strategy: has the organisation pursued cooperation with other firms? What forms of cooperation have been adopted (e. g. joint ventures, strategic alliances, franchises? ) Stakeholders: who are the organisation’s major stakeholders? What influences do they have on the strategies of the firm? Governance: what are the governance protocols in the organisation? Are they impeding or facilitating performance? Quantitative Performance Most strategy cases contain financial and other data in varying levels of detail.
For the purposes of this Unit you will not be expected to ‘manipulate’ this data in the sense of using financial or ratio analysis except to the extent of drawing from the data overall conclusions or observations on the following: • • • What is the financial performance of the organisation? Is it well resourced financially? Does it have the financial resources to fund new strategies? How efficient is the organisation? How cost effective is it? What is its market share? Resources, Skills and Capabilities – Core Competences This is the key part of organisational/internal analysis. There is a three stage process here. You first need to identify the resources of the organisation. These can be divided into tangible and intangible resources. Initially it is simply a matter of listing each class of resource from the case material.
It is useful to pay particular attention to the intangible resources of the organisation as it is likely that these resources will provide the basis of the competitive advantage of the organisation. The second step is to identify the unique skills or capabilities of the organisation. Another way of characterising this is to identify how the organisation uses its resources, or, put another way, what are the inherent skills that the organisation has in integrating the unique set of resources it has to produce goods or deliver services. Porter’s value chain is a tool that can be used in this process. Resources taken by themselves do not provide competitive advantage.
It is the capability of an organisation to integrate those resources and to facilitate linkages between those resources that does. Hence, the value chain allows a diagrammatic view of the resources of the organisation to be drawn and from that to isolate what its capabilities are. You will find the information necessary to perform this analysis in the case material. The third stage is to determine which of the organisation’s capabilities are rare, inimitable, valuable, or non substitutable. If a capability satisfies those four tests it is a strategic capability, or, core competence of the 11 organisation. Core competences provide the basis for strategic competitive advantage and will produce long term above average returns for an organisation in its industry.
An analysis of this sort will frequently provide the explanation as to why an organisation is a market leader and, more importantly, provides evidence of the success of the strategies being pursued by that organisation. Conversely, this analysis will provide the basis for a comparison of the organisation against its competitors and, further, a control device to test the effectiveness of current strategies. Recommendations The final step is to use the results of your analysis to make recommendations as to what the organisation might do about the issues confronting it. More often than not this ‘falls’ out of the analysis. Not infrequently several alternatives present themselves and it is then a matter of identifying the advantages and disadvantages of each alternative.
Conceptually, you may adopt one or other or a combination of two broad approaches. As mentioned, environmental analysis is concerned with what an organisation might do in terms of its external opportunities (adjusted to take account of external threats). This approach is described in the literature as the Industrial Organisation approach. If this approach is adopted an external opportunity may be selected – it is then a question of how that is to be resourced. Alternatively, what is known as the Resource Based view may be adopted. This focuses on the core competences of the organisation (what it can do). It is then a matter of selecting an external opportunity that ‘fits’.
Neither approach is mutually exclusive and there is obviously the need for a dialectic to established between each approach in the process of strategy formation and selection. We will be looking at some of the issues involved in strategy formation and selection during the course of this Unit. For the moment however your recommendations flowing from the case analysis must be appropriate, feasible, and acceptable to the organisation and need to cover the areas of: • • • • • • • • • Corporate strategy: in what businesses is the organisation to compete ? Is it to diversify? Is it merge with another firm? Is it to takeover another firm? Is it divest a business? What cooperative (or network, or alliance) strategies ought be considered?
Business level strategy: how shall the organisation compete in its businesses? What generic business level strategy will it adopt? Does its value chain need to be reconfigured to implement a changed strategy? Functional strategy: what functional resources are necessary to support the chosen strategies? How are the functional areas to be configured? What organisational structure is necessary to support the functional level strategy? International strategy: is the organisation to internationalise? How is that to be achieved? What generic international level strategy will it adopt? Organisational structure: are any changes necessary to the structure of the organisation?
What is the best structure to support the chosen strategy? Governance: are any changes necessary to how the organisation is governed? Are the existing governance processes and protocols inhibiting or facilitating the core competences of the organisation? Does innovation need to be ‘governed’? Implementation: how are the recommendations to be implemented? Who is to do it? If they involve major change how is the change process to be managed? What resistance to change is anticipated? Retaliation: how will the organisation’s competitors respond to the changed strategic stance of the organisation? What retaliation is expected? How is the organisation’s response to be managed?
Other issues: what are marketing, human resources, industrial/workplace relations issues? Do the strategies adopted in each of these areas need to be changed or realigned to the new strategies contained in your recommendations? 12 Presentation The final stage is the best! Your case analysis will be used for two purposes in this Unit. First, as the basis for understanding case discussions in the Workshop sessions. The second purpose is to provide the basis for your written work in this Unit which will require you to conduct a full case analysis and to draw some conclusions and recommendations regarding the case organisation in the light of the strategic management literature.
There is a third purpose and that is the use to which the skills learnt in case analysis can be put to practical use in your own activities. All organisations have a strategy and all need to continually review that strategy in the light of their external and internal environments. The process, context and content of strategy formation, selection and implementation will, we hope, have been exemplified in your case analysis activities in this Unit. References Hanson, D. , Dowling, P. , Hitt, M. A. , Ireland, R. D. & Hoskisson, R. E. 2002. Strategic management: Competitiveness and globalization (Pacific Rim ed. ). Melbourne: Nelson Thomson Learning. Hubbard, G. 2004.
Strategic management: Thinking, analysis and action. Sydney: Prentice-Hall. Hubbard, G. , Morkel, A. , Davenport, S. & Beamish, P. 2000. Cases in strategic management. Sydney: Prentice Hall. 13 Workshop Program Included below is a brief description of the topics to be covered in this Unit together with the required readings. Students must complete the required readings prior to each Workshop and, in particular they should conduct a brief analysis of the cases set for each Workshop with regard to the set case questions. Journal readings and additional texts will provide additional resources for the Workshops and for the written component of the Unit. Workshop 1 – 22 July 2006
Topic 1: Introduction and Unit Administration • • • • Course overview Course administration Case study method Assessment Topic 2: Strategy Dimensions The three dimensions of strategy will be examined – process (the manner by which strategies come about – how? when? and where? ), content (the product of the strategy process – what? ), and context (the set of circumstances under which both the process and content are determined – where? ). We will then look briefly at the question of strategic reasoning and the role of creativity. Cases: Fedex Virgin De Wit & Meyer (D&M) Chapters 1 & 2 Readings1. 2 & 2. 1 (D&M) FedEx • • What was the context and content of FedEx’s strategy between 1973 and 2000?
How did FedEx’s strategy come about? Which strategy perspective does FedEx have on the major challenges facing it in 2000? What is your perspective? Readings: Case Questions: Virgin • • How would you characterise Branson’s strategic thinking? Can Branson’s strategic thinking fit any one or more of the perspectives outlined in Chapter 2 of D&M? 14 Workshop 2 – 12 August 2006 Topic: Strategy formation and Strategic Change The first part of the Workshop will examine the strategy formation process and will introduce the first of the strategy paradoxes – that of deliberateness and emergence, and the related tension between planning and incrementalism.
The question of change will be considered in terms of the second paradox – that of revolution or evolution Cases: Kao Caterpillar D&M Chapters 3 & 4 Readings 3. 1, 3. 2, 4. 3 & 4. 4 (D&M) Kao • • How does Kao go about forming strategy? What are the advantages and disadvantages of the process adopted by Kao? What is the role of organisational learning in strategy formation? How has Kao utilised this? Reading: Case Questions: Caterpillar • • • What external and internal factors led Caterpillar to renew its strategy between 1985-2001? What was the dominant perspective at Caterpillar when it came to strategic change? How could Caterpillar seek to maintain a good fit with its environment by combining the strengths of evolution and revolution? 15 Workshop 3 – 26 August 2006
Topic: Business Level Strategy and Industry Context This Workshop examines how a firm relates to its environment in order to meet long term objectives. In particular we will consider the important issue ‘fit’ is achieved between the business environment (or industry context) and the individual firm. This is sometimes expressed in terms of the paradox of markets and resources. The industry context is a relevant input in this process and we will then examine the extent to which the industry dictates the terms of competition or the extent to which a firm can shape its industry context. Cases: Grupo Elektra Swatch D&M Chapters 5 & 8 Readings 5. 1, 5. 4,8. 1 & 8. (D&M) Grupo Elecktra • • • Apply the paradox of markets and resources to Grupo Elektra’s strategy. What competitive advantages could accrue from an inside out or an outside in perspective? What is Grupo Elektra’s most important source of competitive advantage? Analyse and describe Grupo Elektra’s business system in light of its competitive advantage? Is its advantage sustainable? Could it support internationalisation? Reading: Case Questions: Swatch • • • Using Porter’s five force model analyse Swatch’s industry structure. What is the dominant force? What are the rules of the game in this industry? What are the drivers of industry development?
How can Swatch alter the rules of the game? How might the industry dynamics and industry leadership perspectives affect this? Topic 2: Assignment Preparation 16 Workshop 4 – 9 September 2006 Topic: Corporate Level This Workshop examines the issue of the scope of a firm’s operations as it takes advantage of growth opportunities either in terms of products or markets. In terms of organsiational configuration, or in terms of selecting new business opportunities the paradox of responsiveness or synergy arises and the challenge is to realise more value creation by multi business synergies than value destruction through the loss of business responsiveness.
Cases: Lego Mindstorms Shell & Billiton D&M Chapter 6 Readings 6. 1 – 6. 4 (D&M) Lego • • • What is the potential synergy of integrating Mindstorms into the core business and what are the likely costs? What are the risks and costs involved in keeping Mindstorms as a separate business? Which of these options best fits Lego’s corporate strategy? Is there a parenting advantage? Reading: Case Questions: Shell & Billiton • • Do you think that Shell’ acquisition of Billiton is related diversification? Why? Relate the corporate strategy perspectives of Shell and Gencor to their approaches to the post merger integration of Billiton into their respective organisations? How do you account for the differences?
Are the parenting advantages for Shell and Gencor different? Is this an explanation for the differential success of the mergers? 17 Workshop 5 – 23 September 2006 Topic: Network Level Strategy The question to be considered in this Workshop is the extent to which network (or alliance, or cooperative) strategies produce more value for a firm than if that firm continued to compete with its proposed network partners. Should firms embed themselves in a web of cooperative relationships or should they remain as independent as possible? Which approach will produce the greatest long term value? Cases: LoJack Proteome D&M Chapter 7 Readings 7. 1, 7. 2, & 7. (D&M) LoJack • • Evaluate the first LoJack-MicroLogic alliance from a discrete organisational perspective and an embedded organisational perspective. Have the arrangements between LoJack-MicroLogic changed their competitive advantage over time? How? Reading: Case Questions: Proteome • • • • • • What were the stages of the conventional process of analysing proteins and what problems did that process have? What offerings did PSL have in mind to seize the opportunity presented by the problematic protein analysis process? Why did PSL not base its business model on maximising the discovery program from the outset? What other firms did PSL engage?
Why did PSL engage these other firms and what were the pros and cons of these inter-organisational arrangements? Should PSL move to the USA? What does each of the discrete and embedded organisation perspectives have to contribute in understanding PSL’s dilemmas? 18 Workshop 6 – 7 October 2006 Topic: International Context Internationalisation raises the paradox between globalisation and localisation and the extent to which a firm seeks to benefit from the synergies that arise from global convergence or to participate in the expected value to be derived from locally responsive competitive dynamics using an international diversity perspective. The implications of this paradox for strategy selection will be discussed.
Cases: Cap Gemini Sogeti (Case A) Kentucky Fried Chicken D&M Chapter 10 Readings 10. 1 – 10. 4 (D&M) Cap Gemini Sogeti • What are the pressures for global coordination and integration and the pressures for local responsiveness in the IT services industry? Are these pressures equally strong in all of the industry sectors in which CGS is active? Does CGS’s strategy to internationalise fit with these external developments? What are the advantages and disadvantages of CGS’s expansion through acquisition? How can the existing organisations be integrated? What should the organisational structure look like? Reading: Case Questions: • • • Kentucky Fried Chicken • • • • Describe KFC’s foreign market portfolio.
Describe KFC’s international strategy? What cross border synergies does it reap and how locally responsive is it? If KFC were to be globally convergent what strategy would it follow? Would the strategy be different if it reasoned from an international diversity perspective? What should KFC’s strategy be in Latin America? 19 Workshop 7 – 21 October 2006 Topic 1: Organizational Purpose The Unit concludes with a consideration of organisational purpose set in the context of the paradox between profitability and responsibility. Cases: Cirque du Soleil Nike D&M Chapters 6 & 9 Readings 6. 2, 9. 2, & 9. 3 (D&M) Cirque du Soleil • • • Who are the stakeholders of CdS?
How does the success of serving stakeholder interests reinforce financial performance? What were the operational innovations introduced by CdS and how did they contribute to its value proposition? What does CdS do best? Should it continue doing that or should it diversify? How would the latter course of action fit with stakeholder interests? Reading: Case Questions: Nike • • • Identify the four protagonists in the case. What are their respective interests? Are there any other stakeholder interests involved? Why do minor stakeholders behave as they do? What are the core problems facing Nike? What strategic options exist to deal with those problems?
Topic 2: Unit Review and Exam Preparation 20 Workshop Schedule Semester 2, 2006 Workshop Workshop Date 22 July Topic Text Campus 1 1. Introduction and unit administration 2. Strategy dimensions Strategy formation and strategic change Business level strategy and industry context Corporate level Hobart Chapters 1 & 2 Chapters 3 & 4 Chapters 5 & 8 Chapter 6 Chapter 7 Chapter 10 Chapters 6 & 9 Hobart & Launceston Hobart Hobart & Launceston Hobart Hobart & Launceston Hobart 2 3 4 5 6 7 12 August 26 August 9 September 23 September Network level strategy 7 October 21 October International context Organizational purpose Examination Period: 28 October—14 November 2006 21
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