ORGANIZATIONAL

ANALYSIS
Understanding the
Internal
Environment
© Maris G. Martinsons
 Situation Analysis

Stakeholders
needs/desires

Environmental Organizational
Strategic
analysis analysis
issues
(external) (internal)

Key
Performance
Indicators
 Organizational Analysis
compared to Environmental Analysis
• More important
“Being in the right industry matters, but
being good at what you do matters more” -
Richard Rumelt (1991 / SMJ), How much does industry matter?

• More difficult
– Requires critical self-analysis
– Difficult to be objective
– Benchmarking & Consultants are helpful
 Models/Frameworks for
Organizational Analysis
• McKinsey 7S
Tom Peters& Robert Waterman (1983)
based on best-run U.S. companies for Siemens
• Value Chain
Michael Porter (1985) Competitive Advantage
• Resource-Based View or “Theory”
Jay Barney (1991) Journal of Management & others
→ Competitive Advantage
→ Key Success Factors

To identify Strengths and Weaknesses

 Engages
1979: 700-slide presentation by
Peters over 2 days in Munich
1980: Waterman joins Peters;
‘framework’ to organize findings
 The McKinsey 7S Framework

Strategy

Structure Systems

Shared
Values
(culture)

Skills Style

Staff
 “Game plan” or a pattern of actions
A strategy is intended to
• realize a vision,
Strategy
• achieve long-term objectives,
• gain or sustain competitive
advantage.
Based on the choice and priority of long-term
objectives.
Objectives to improve competitiveness may relate to:
• Efficiency (to enable cost leadership)
• Uniqueness (real or perceived) in products or service
• Focus on the needs of specific types of customers
 Organization of people and work

• Authority and responsibility

Structure formalized?
(de)centralized?
standardized?
• Organizational units
by function?
by product?
by geographic market?
• Reporting relationships
between individuals & groups
Standardization supports efficiency
Centralization or delegation to support adaptability
What structure supports a focus on specific customers?
 Work processes and data flows that
integrate, coordinate or standardize

Activities be made ‘systematic’

Systems • planning and control - budgets
• core processes - production
• quality assurance / control
• communication / info systems
• knowledge management
• performance management
• compensation & benefits

Systems tend to increase efficiency

but they can inhibit flexibility
Explicit or implicit management philosophy
+ accompanying symbolic behaviour
• autocratic or democratic
Style • task or people orientation
• rules or relationships
• directive or participative
decision making
• internal competition or
collaboration
• individual or team work
etc.

What management does

is more important than
What management says
 Human resources
Staff
Employees in different
functional areas / process teams:
• numbers and demographics
• qualifications
• experience (turnover or wastage rates)
What is done to recruit, select, hire, motivate,
develop (train) and retain the right staff ?
How are employees rewarded?
• on seniority or on merit
• for conformity or for creativity
(are mistakes easily forgiven?)
• for effort or for outcome
Business-specific capabilities
These include:
• know-how Skills
• know-what
• know-where
• know-who

Core competences and

Distinctive competences
are a good foundation for
measuring & evaluating
this multi-dimensional
construct.
Values, beliefs and
attitudes that are widely Shared
shared by the members values
of the organization
also known as
superordinate goals
Corporate Culture
• processes or results
• parochial or professional
• people or tasks (Theory X or Theory Y)
• open (transparent /receptive)
or closed (secretive, in-group)
• pragmatic (follow the market)
or normative (follow the rules)
• tight control or loose control
 McKinsey 7-S Framework
Alignment of Strategy and Staff
is a Strength
Strategy Strategy
A B
“to be innovative” “to be reliable”

Staff Staff
A B
creative thinkers direction followers
 McKinsey 7S: Alignment is a Strength
Strategy Be very different Be very efficient
Flat and flexible Tall and rigid
Structure Delegated authority Centralized authority
Customized and loose Standardized and
Systems to encourage new tight for economies of
ideas scale
Style more Democratic more Autocratic
Accept uncertainty Avoid uncertainty
Staff Creative thinkers “Direction followers
reward ingenuity reward conformity
Flexible and able to Reliable and able to
Skills make changes quickly improve continuously
Shared Encourage many ideas, Scientific
values implement best ones management
Metaphor Brain full of ideas Finely-tuned machine
 Value Chain Analysis in Practice
McKinsey & Co., etc. in the early 1980s

Core
Technology Product
- R & D or Design Product
acquisition - function
- appearance Making
- quality - place & people
- materials
- process

Marketing
Service Distribution brand + 4Ps
- channels product, price,
- channel - cycle time
- warranty place, promotion
- inventory
- response - transport
- price
 Value Chain
Michael Porter (1985) Competitive Advantage Price
less Cost
Primary Activities 

Inbound Operations Outbound Marketing Customer Profit

Logistics (making, Logistics & Sales Service Margin
processing,
(materials) etc.) (distribution
of product)

Firm Infrastructure
Planning, Accounting & Finance, Legal, Safety & Security
Human Resource Management
Recruit, Select, Hire, Motivate, Appraise, Reward, Train, Retain, Lay off
Technology Development – Product & Process Innovation
R&D IS / KM TQM BPR
Procurement
Searching for, selecting and securing assorted inputs
Secondary Activities
Value Chains Fit Into Supply Chains
Upstream
Value Chains of
Value
Suppliers
Activities that
provide us
with key inputs
Inbound Logistics
Operations
of a Manufacturer
or Processor
Outbound Logistics
Marketing & Sales
Customer Service
Value Chains Downstream
of Distributors Value
and/or Retailers Activities that
add value to
our outputs
 Extended Generic Value Chain
developed by a team of my former students
Research, Development and Engineering
Product Process Facilities
design design design
Operations/Production
Quality Make the Manage Inbound
control product inventory logistics
Marketing & Sales
Market Generate Take Fill
research sales orders orders
Distribution & After-sales Service
Customer Distribute
service the product
Service Industry Value Chains

Adapting Porter’s Value Chain for a Retail Bank

 Benchmarking
• Measure and compare VC activities / processes
• Internal – easy access and no security/secrecy concerns
• Competitive – look at what industry rivals are doing
More brands & factories, higher IT & accounting costs

• World-class – look beyond your industry

– Xerox looks beyond Fuji & Canon to: Apple & Amazon
innovation, Google HR, Samsung KM, etc.

• How are activities performed?, but also …

how they are linked and evaluated
• Be humble enough to realize that others do some things better
• Be wise enough to learn from them
• Be flexible enough to adopt, adapt or discard as appropriate
 Boke Adapts
Lean Manufacturing
• Factory in Foshan, China since 2013
making office chairs, originally in batches of 1,000
• Started to lose customers; they want higher quality,
smaller orders (100-500) & faster delivery
• Learned from the best in “lean manufacturing”
• Now makes fewer office chairs at a time
• Assigned 20 people to one assembly line
• Shipped products within 8 hours, not 40
• Changeover for metal stamping machine
reduced from 4 hours to 45 minutes
• Robots can not make themselves better, only
people can improve quality & efficiency
• Essence of “lean” transferred throughout Boke, and
subsequently into its supply chain
 Value Chain

Primary Activities
Inbound Outbound
Logistics Operations Logistics Marketing Customer
(making
(leather, shoes) (from factory & Sales Service
rubber, glue, to store)
etc.)
Firm Infrastructure
Planning, Accounting & Finance, Legal, Safety & Security
Human Resource Management
Recruit, Select, Hire, Motivate, Appraise, Reward, Train, Retain, Lay off
Tech Development - Product Design, not Process Design
R&D
Procurement
Searching for, selecting and securing assorted inputs
Secondary Activities
MAKE OR BUY? 1. Design Annual sales =
Semiconductors 2. Produce US$ 630 billion
April 5, 2017

Top 10 Semiconductor
Chip Customers in 2022
(Millions of U.S. Dollars)
= #1
Universities MAKE OR BUY Knowledge
Knowledge
Discovery
Research
↓
Organization
Scholarship
↓
Present / Share
Teaching
↓
Application
Consulting, etc.
HALF TIME BREAK

Think about your business.

What should it MAKE?

What should it BUY?

 Resource-Based View (RBV)
Resources are what you have or can access.
are inputs to Value Chain activities.
2 Assumptions with this ‘theory’:
1. A business is a bundle of resources
2. Some resources are scarce or costly
Resources may be divided into:
Tangible see? sell? (count) Intangible
Financial Knowledge
Physical Culture
Technological Relations
Capabilities
 Tangible Resources
Financial
$$$ from owners, lenders or venture capitalists
Line of credit from bankers

Physical
Factory / offices / store, facilities / equipment, people

• University: Campus, buildings, classroom facilities,

library holdings, digital devices; professors
• Telecom provider: networking equipment, wires,
and satellites; license to operate
• Entertainment company: film library, production
facilities, broadcast network; contracts with stars
• Airline: planes; reservation system;
pilots, cabin crew & ground staff
 Intangible Resources
KNOWLEDGE CAPITAL (know how, know where)
• Intellectual Property (patents, designs, trade secrets)
• Technical skills; Creative/innovative workers
• Effective Big Data analytics; KM system

CULTURAL CAPITAL (know why)

• Charismatic leadership
• Strong corporate culture (Netflix PPT views)
• High-motivated and/or loyal employees

SOCIAL CAPITAL (know who)

• Well-known brand name
• Reputation for …
• Good credit rating
• Good relationships (guanxi in China)
 Capabilities … and Competencies
• Capabilities = what you can do with your resources
fast, efficient, flexible, creative, consistent in …
reliable or innovative products, convenient for customers
e.g. efficient SCM

• Competency = transferable capability

”something we are good at doing”
Amazon Leverages its Capabilities

LaaS
 Capabilities … and Competencies
• Capabilities = what you can do with your resources
fast, efficient, flexible, creative, consistent in …
reliable or innovative products, convenient for customers
e.g. efficient SCM

• Competency - transferable capability

”something we are good at doing”

• Distinctive competency – what you do much better

than (m)any of your rivals

• Core competency - critical to your business (success)

for a retail bank, convenience + attractive products + ???
 Retail Bank Example - Resources
Tangible Intangible
Numbers of • Retail location
• Retail locations – Quality (high traffic area)
– branches • Employees
– ATMs – Skills – % of requirement
– Experience (turnover rate)
• Employees – Morale (satisfaction level)
• Products – Relationships
– Saving • Products
– Lending – Distinctive Features
– Other – Flexibility
• Customers • Social Capital
– Account holders Brand name /Image
– Mortgage holders Customers
– etc. – Length of relationship
– Satisfaction / retention rate
IT investment ($) – Deposit amounts
Cash ($) • Information systems
– Reliability
– Easy to use
– Timely & accurate info
 Retail Bank Example - Capabilities
Convenience
Where?
Larger geographic reach - # of countries
Higher traffic locations
Higher density in a specific place
When? (and How?)
Longer-than-average branch opening hours
Shorter-than-average waiting time at teller wickets
24/7 service - online banking / phone banking
Attractive Products/Services
What?
• Wider range of financial services
• One-stop-service at teller wickets
• Common products, distinctive features
e.g. lower interest rates, fast(er) loan approvals
• Distinctive products
e.g. HKD/LVL exchange
 OEM, ODM, OBM Definitions
• Original Equipment Manufacturer (OEM)
makes items that are used as part of a product
that is made by another company. The items are
designed by that company and the OEM, usually,
has a license to produce the parts.
• Original Design Manufacturer (ODM) or private
labeller selects an existing design from an existing
producer and uses its brand to sell the product.
• Original Brand Manufacturer (OBM) takes care
of the entire value chain process, from design and
engineering to marketing and sales. OBM fully
owns the brand and the products.
Original Equipment Manufacturer
to Original Design Manager
• Started as an office chair maker
based on the designs of others

• Now, partners with hypermarkets

and companies to design and
produce custom-made products
•
What Resources & Capabilities
does Boke require?
From Original Equipment Manufacturer
to Original Brand Manager
Key Resources and Capabilities
PHYSICAL
Cost-efficient Manufacturing Facility
HUMAN
Productive Workforce
INTELLECTUAL
INTELLECTUAL
Process Innovation
Brand Name expertise
Management
SOCIAL
Process Innovation expertise
Relationship
Product R&D with Brand Name Firm
expertise
SOCIAL
Brand Name Relationship
 Core Technologies at Canon

Precision Fine Micro

Mechanics Optics Electronics
Basic camera
Compact camera
Autofocus camera
Video camera
Laser beam printer
Colour video printer
Facsimile machine
Plain paper copier
Colour copier
Laser copier
Colour laser copier
Laser imager
Excimer laser aligner
 RBV and I-KSFs
Industry Key Success Factors (I-KSFs) are the
most important factors that distinguish good performing
firms from bad performing ones in a given industry

FMCG (consumer goods)

Brand Modern Quality Reliable
I-KSFs
image products service delivery

Related Media Product Staff Transport

competences advertising innovation training + logistics
 
“connect and develop” Outsource
R&D strategy (X-teams) to experts

Make or buy?
 Strengths can become Weaknesses
How do your capabilities compare to “standards”?
Unfavourably – WEAKNESS; VULNERABILITY
Favourably – STRENGTH
STRENGTH can become a WEAKNESS over time
Success → Inertia & blindness → Hinders change
Icarus Paradox
narrow mindsets hinder
evolution of mobile strategy

Photos on film (replacing glass plates) since 1901

virtual monopoly until 1970s; Fuji began to compete on price
Digital cameras introduced by Sony, Canon in 1990s
Failed to pioneer, allowed new entrants to set standards
? Survival in the smart phone age ?
 Competitive Advantage
Valuable
Inimitable Jay Barney
Is the resource … Rare
(1991)

Organized
Valuable? to capitalize on opportunities or neutralize threats
Rare? Distinctive or even Unique? scarcity has value
Potential source of Competitive Advantage
Realized by the organization? Beneficial? Brand
awareness
Complementary to its other resources? Distribution
Actual source of Competitive Advantage channels

Durable? value changes/deteriorates over time

Difficult (or costly) to Duplicate or Imitate?
Nonsubstitutable?
Source of Sustainable Competitive Advantage
If not … only a Temporary Competitive Advantage
Distinctive Competencies = Sustained Success
Superior industrial design, integrated
hardware & software = unique ecosystem,
superior marketing

Secret formula, superior marketing, world’s

most extensive physical distribution network

Modern & functional design, low costs from

global standardization, superior retailing

Very bright & energetic people, ‘practical’

knowledge base, superior relationships
with corporate community
 Imitation & Substitution
Intangible resources (brands, reputations, relationships)
+ complex technologies are harder to imitate or
substitute than tangible ones (unless patent protected)

more generally, Imitation is hindered by:

Physical uniqueness – CityU has most convenient location.
Causal ambiguity – Apple relies on ambiguous innovation.
Path dependence – Bill Gates was in right place at the right time.
Social complexity – Jack Ma Yun had special talent + relationships.

Substitution - Example
Retailing online v physical stores

being 1st choice store for toys is

no longer a competitive advantage
 Potential Strengths and Weaknesses
Strengths Weaknesses/Vulnerabilities
Clear vision and strategy Unclear vision or strategy
Strong financial condition Weak finances; too much debt
Superior relationships Outdated facilities
Superior product quality Higher costs than rivals
Admired brand Production problems
Operating cost advantage Low employee morale
High-performance culture Weak R&D many SMEs

Strong R & D Missing some key skills

Proprietary tech (patents) Too narrow a product line
Superior customer service Poor brand image
Effective marketing Dependence on 1 or 2 customers
Flexible processes Slow response to change
 How to Succeed
With a Business?
Industrial Economics “Model”

Industry Business Business

Structure Positioning Success

Resource-based “Model”
Business Capabilities Business
Resources Valued By? Success
 Start Outside Or Inside?

Industrial Economics “Model” Resource-based “Model”

Study the external Identify your resources
environment (O/T) (S/W)
Select the most Determine what the firm
attractive industry can do (capabilities)
Formulate the Select “best” industry
“best” strategy to fit your capabilities
Acquire or develop Formulate the
resources/capabilities “best”strategy

Implement your strategy

 From SWOT to Strategic Issues
Strengths Weaknesses
Opportunities
mainland China market entry
S-O W-O
issues issues
Famous Poor
brand name facilities

W-T
Threats

S-T
issues issues
Foreign competition
(food/drinks, securities brokers)
 INTERNAL
ORGANIZATIONAL
ANALYSIS

THE END
© Maris G. Martinsons
COMPETITIVE /
BUSINESS
STRATEGY

FUNDAMENTALS
© Maris G. Martinsons
 OUR PROGRESS TO DATE
• We have considered:
– What do we want to do?
Mission, vision & values
– What do others expect us to do?
Stakeholders and KPIs
– What does the environment “tell” us to do?
Opportunities & threats
– What are we capable of doing?
Strengths & weaknesses
• Now, we need to consider:
– What are we really going to do? Strategy
is the “game plan” or path (deliberate / emergent)
which aims to achieve long-term business success.
 SWOT ANALYSIS LEADS TO
ISSUES AND STRATEGY MAKING
General Management (of the organisation)
Situational Management

ANALYZE Issue Management

DECIDE Action Management
ACT

implementation
Strategic
Historical

Situational
context

Strategy
Analysis issues• AN Strategy
agenda “making”
Issues Plans
Mission SWOTs
values
vision

ANALYZE FORMULATE IMPLEMENT

 FIVE ELEMENTS OF STRATEGY
Hambrick & Fredrickson (2001/2005) AME

ARENAS
Where will
we be active?
STAGING
VEHICLES
BUSINESS MODEL When will
How will we do
(ECONOMIC LOGIC)
we things?
How will we make
develop? money? or provide value? (sequence
and speed)
DIFFERENTIATORS
How will
we compete?
FIVE ELEMENTS OF STRATEGY
THE EXAMPLE OF IKEA
ARENAS
retail* affordable,
Scandinavian-style
modernist furniture &
VEHICLES furnishings to young,
organic STAGING
middle class
expansion rapid
through international
BUSINESS MODEL expansion,
self- (ECONOMIC LOGIC) but only one
ownership Value + Profits from standard region at a
or local designs (economies of scale) & time - to
agents efficiencies of replication enhance
(franchising) learning
DIFFERENTIATORS
reliable products at an
affordable price sold in
flatpacks at a visually
appealing store with * control product design,
prompt fulfillment but do NOT manufacture
 BUSINESS STRATEGY ELEMENTS

ARENAS
Where will
we be active? STAGING
VEHICLES
BUSINESS MODEL When will
How will we do
(ECONOMIC LOGIC)
we things?
How will we make
develop ? money? or provide value? (sequence
and speed)
DIFFERENTIATORS
How will
CORPORATE we compete? BUSINESS
STRATEGY STRATEGY
BUSINESS STRATEGY: DIFFERENTIATORS
Price
Functions &
Features
Quality/
Reliability
Availability
DIFFERENTIATORS Selection
How will Response
we compete? Service
Customization
(Brand) Image

HOW DOES YOUR BUSINESS

ATTRACT AND RETAIN CUSTOMERS ?
BE SPECIFIC ! ! !
 BUSINESS MODELS
Best price (lowest cost)
Economies of scale, scope and/or replication
Distinctive features and/or service
Premium price
Best value – everyone or segment?
Complete (1-stop) solution

? BUSINESS MODEL
(ECONOMIC LOGIC)
How do these
famous firms
make money?
How will we make
money? (provide value)

Some alternatives:
Subscription Pay-as-you-go Freemium Bundling
GENERIC COMPETITIVE STRATEGIES
Michael Porter (1980) Competitive Strategy

Source of Competitive Advantage

Efficiency Uniqueness

Broad
Target
(Mass
Market)

Narrow
Target
(Niche)
 COST LEADERSHIP STRATEGY
OPERATIONAL EFFICIENCY
Constant aim to REDUCE COSTS
Invest in “good” facilities with an efficient capacity
PROCESS INNOVATION - Streamline & automate
Control costs of overhead & contracted activities
Ensure value for $ in marketing, sales & service

Benefit from experience (learning curve)

Make changes to save $ - move operations,

alter materials / suppliers, backward integrate
COST LEADERSHIP EXAMPLES

Model T “any colour you want

as long as it is black”

make & sell generic

drugs after patents expire

simplifies hair cutting

from emotional to functional

lowest cost based on

economies of scale
 HOW ACHIEVES COST LEADERSHIP
PhD Admission Test from 5 years of financial statements

Resources & Cost Consequences

Industry average cost minus
Capabilities Wal-Mart’s cost (as a % of sales)

Tangible Store location 0.2 (store space – rent or buy)

Brand reputation 0.2 (advertising expense)

Intangible Employee loyalty 0.3 (payroll expense)
Inventory system 0.3 (inventory expense)

Capability Inbound logistics 0.1* (procurement expense)

Eco.
of
1.1% overall cost advantage
scale
 COST LEADERS &
VALUE CHAIN ACTIVITIES
Inbound Operations Outbound Marketing Service
Logistics Logistics & Sales
Efficient Efficient Schedule Standardized Efficient
links between scale and deliveries to sales training product Profit
suppliers and moving down maximize & marketing. installations Margin
the firm’s the learning efficiency. to reduce
operations. curve to Attractive product
minimise Select low- pricing to get
cost transport recalls and
costs. economies service calls.
providers. of scale.
Firm Infrastructure
Lean line management structure with few technocrats or supporting staff.
Human Resource Management
Policies to reduce turnover and training programs to improve efficiency.
Technology Development
Efficiency-oriented technologies. Process innovation to lower costs.
Procurement
Processes to enable the lowest-cost products with acceptable quality.
 MAJOR RISKS OF
COST LEADERSHIP STRATEGY

New technology may remove

your cost advantage

Competitors may be able to

replicate your processes
Focus on efficiency may overlook “tech”
changes in customer preferences
from Physical disks
to Downloading and then Streaming
GENERIC COMPETITIVE STRATEGIES
Michael Porter (1980) Competitive Strategy
Source of Competitive Advantage
Efficiency Uniqueness

Broad
Target
(Mass
Market)

Narrow
Target
(Niche)
 DIFFERENTIATION STRATEGY
PRODUCT LEADERSHIP
Constant effort to DISTINGUISH PRODUCTS
“one size does not fit all, and neither does one style”
PRODUCT INNOVATION & MARKETING
Strong R&D and engineering capability
Quality in product and service Ideal:
Need motivated and talented HR
Use advertising & word of mouth
to shape perceptions
 DIFFERENTATION EXAMPLES
Prestige brand
& high quality

Technological
innovation
Dinner in the Sky

Unique
experience

More fashionable products

(than other discount retailers)
vs. WAL*MART “mass class”
“fit in and stand out”
vs. Kmart (bankruptcy) “belong and yet be unique”
 DIFFERENTIATION &
VALUE CHAIN ACTIVITIES
Inbound Operations Outbound Marketing Service
Logistics Logistics & Sales
Superior Best-in-class Rapid and Create or Extensive
handling of or outsource accurate anticipate buyer training Profit
inputs to (e.g. Nike, IT) order fads / trends. to assure Margin
minimise processing. proper use.
damage and Intensive Selective or
delivery quality Timely status-based Superior
delays. assurance. deliveries. credit facilities. service
people.
Firm Infrastructure
Emphasis on quality and data mining to understand market/customer trends.
Human Resource Management
Superior training. Incentives to encourage innovation. Soft factor appraisals.
Technology Development
Strong R&D capabilities. Focus on unique products & distinctive processes.
Procurement
Search for the superior raw materials. Purchase highest quality spare parts.
 MAJOR RISKS OF A
DIFFERENTIATION STRATEGY

Customers may decide that the

cost of “uniqueness” is too great

Competitors may learn how to

imitate your product or process

Distinctive features that you offer may

no longer be valued by customers
All-in-1 desktop
computer
GENERIC COMPETITIVE STRATEGIES
Michael Porter (1980) Competitive Strategy

Source of Competitive Advantage

Efficiency Uniqueness

Mass
Market

Niche
Focus
Market
based on either
Segment
* Low cost * Distinctive
“product”
 FOCUS STRATEGY
CUSTOMER INTIMACY
Constant effort to SERVE A NICHE MARKET
• Target a narrow segment where needs,
preferences or desires differ greatly
from the rest of the market.
• Serve that segment or niche at a lower
cost or offer something special to suit
their needs.
• Keep serving the niche better than
anyone else.
FOCUS STRATEGY EXAMPLES
no frills, short haul,
point-to-point
(not hub & spoke)
airline service
long haul

“ethnic” services
in Hong Kong

“simple” retailers
serving segments
in America
MAJOR RISKS OF A FOCUS STRATEGY
Target segment becomes
unattractive due to eroding
boundaries or declining demand.
New entrants in attractive segment.
OTHERS?

Sub-segmentation.

café / instant / capsules & pods

GENERIC COMPETITIVE STRATEGY
MODEL (Michael Porter, 1980)
Cost Differentiation
Leadership
Focus
Low cost Distinctive

CAFÉS IN HONG KONG

 COMPETITIVE STRATEGIES
COFFEE SHOPS IN HONG KONG
Source of Competitive Advantage
Efficiency Uniqueness

Cost Differentiation
Leadership
Mass
Market

Focus
Niche Low cost Distinctive
Market
Segment
BUSINESS STRATEGY
FUNDAMENTALS

THE END
LET’S TAKE A BREAK,
THEN GO DEEPER

© Maris G. Martinsons
 COMPETITIVE/
BUSINESS
STRATEGY

BEYOND FUNDAMENTALS
© Maris G. Martinsons
 STRATEGY OF APPLE WHEN
STEVE JOBS RETURNED (1997)
• After Microsoft released Windows 95,
Apple Inc. went into a death spiral
• CEO Gil Amelio struggled to keep Apple
alive. He reorganized & cut staff
• When Steve Jobs returned to Apple in
July 1997, it was weeks from bankruptcy
• Jobs cut Apple to a core in order to
survive as a niche computer company
(15→1 desktop, 12→1 portable, no
printers, no peripherals), cut S/W R&D
(had O/S from NeXT), cut distributors & 5
of 6 retailers, offshored manufacturing to
Taiwan, got Microsoft to invest US$150m,
set up Web store, got closer to customers
• Jobs simplified Apple to “focus” on
what it could do best.
• Then he waited for the next big thing(s)
GENERIC COMPETITIVE STRATEGIES
Michael Porter (1980) Competitive Strategy

Source of Competitive Advantage

Efficiency Uniqueness

Mass
Market

Focus
Niche based on either
Market
* Low cost * Distinctive
“product”
 FROM GENERIC STRATEGY
TO STRATEGY CANVAS
(a.k.a. CUSTOMER VALUE PROPOSITION)

Cost Focus
Leader

Excellent Acceptable Acceptable

price price price
Product Adequate “Custom”
Something solution
and/or quality exceptional
Service Adequate (features/ Excellent
selection function)
Attributes relationship
Adequate Adequate Very good
service service service

Image For the Stand out in Trusted by

Cost-conscious your ‘class’ your ‘fans’
 STRATEGY MAP COMPONENTS
based on Kaplan & Norton (1990s)
Productivity Strategy Long-term Growth Strategy
Shareholder Value
Improve Cost Increase Asset Expand Customer Enhance
Structure Utilization Base Customer Value
Customer Intimacy
Operational Excellence
Differentiation

Price Functionality Quality Selection Availability

Service Partners Brand

Customer Mgmt Operations Innovation Society & Reg’s

Select Retain Supply Produce ID Opps Develop Environment Community
Acquire Grow Distribute Mg. Risk R&D Launch Health & Safety

Human Capital
Information Capital
Organization Capital Culture Leadership Alignment Teamwork
 HOW DO BUSINESSES
ATTRACT CUSTOMERS?
Generic Criteria for Selecting/Buying

Price Quality Availability

Functions Selection

Service
Partners Brand
+ Convenience
Place
Friendly Time
Fast ?
Reliable

retail
bank
 STRATEGY CANVAS OF
Excellent “Everyday low prices for a very wide
range of goods that are always in
stock at convenient locations”
Very
good
Performance

Good

Rival
Fair

Poor
Low Convenient Consistent Selection Staff Staff
prices Selection locations Product prices
across (suburbs) availability within amity knowledge
categories Store
categories appearance
Buying criteria
 HOW CAN A COFFEE SHOP
ATTRACT AND RETAIN CUSTOMERS?
CONSIDER THE QUESTION
FROM YOUR PERSPECTIVE

HOW DO YOU CHOOSE A CAFE?

WHAT CRITERIA DO YOU CONSIDER?

TUTORIAL DISCUSSION
Next week

Think ahead
Be prepared
 HOW CAN A BUSINESS (IN GENERAL)
ATTRACT AND RETAIN CUSTOMERS?
CONSIDER THE QUESTION
FROM CUSTOMER PERSPECTIVE

HOW DO PEOPLE CHOOSE ?

WHAT CRITERIA DO THEY CONSIDER?
My advice for business:
• Start with 1 of Porter’s generic strategies
COST LEADERSHIP
DIFFERENTIATION
FOCUS
• Develop a distinctive Strategy Canvas
 STRATEGY CANVAS → HIERARCHY OF
CUSTOMER VALUE PROPOSITIONS
Rintamäki, Kuusela & Mitronen (2007) Managing Service Quality
 BENCHMARKING RIVAL PRODUCTS
AS A RADAR CHART

GREAT

Company A GOOD
FAIR
POOR
Ease of Use
Price (… Upgrade)

Company B
 BLUE OCEAN STRATEGY
X W. Chan Kim & Renee Mauborgne (2005)

• Leave behind the red ocean of bloody competition

• Create uncontested market space
through value innovation
• As a category of one, competition is irrelevant

The following industries did not exist 60 years ago:

PCs, … health care → medical tourism

The following industries did not exist 30 years ago:

AR/VR, biotech drugs, cryptocurrency exchanges,
disease detectors (genomics), electric vehicles…
 BLUE OCEAN EXAMPLE
• Circus → declining industry
• Suppliers (star performers)
and buyers (many rivals &
substitutes for children’s
entertainment) have high BP

• Nevertheless, Cirque Du Soleil has been a big

success → 1 of Canada’s largest cultural exports
• Combined fun and thrill of circus (tent, clowns &
acrobats but not animals) with artistry, elegance
and thematic storylines of musical theatre
• Distinctive value proposition appeals to
“sophisticated” adults & corporate clients
 DISTINCTIVE VALUE PROPOSITION
OF CIRQUE DU SOLEIL
Traditional Musical Unprecedented
Circus Theatre entertainment
experience
Retain

Danger & thrill

Raise or Create
Imaginative theme
Humour & fun Artistic music &
dance
Diversity - “3 rings”$
Reduce / eliminate

Unique venue
Star performers $ Refined viewing
environment Compelling tagline:
Live animal acts $ “we reinvent
Food sold in aisles
High class image the circus”
Low class image Multiple
Higher prices –
Low prices sophisticated adults productions
to attract children & corporate clients
Extra sales $
 STRATEGY CANVAS
CIRQUE DU SOLEIL vs. TRADITIONAL CIRCUS
 BUSINESS IS DYNAMIC!
STAGING OF COMPETITIVE STRATEGY
Hambrick & Fredrickson (2001) AME

STAGING Sequence of activities

When will • Brand building
we do • New markets / products
things? • Change strategy
(sequence Speed of implementation
and speed) Web 2.0 “land grab”

• Timing & Know-How

First Mover(s)
Build ‘Base’ and/or Entry Barriers
Fast Follower(s)
Imitate or Improve, Innovate, Invent
 FIRST MOVER HAS ADVANTAGES
• Monopoly Profits (temporary) … due to lagged response
• Economies of Scale
due to Market Leadership + Experience Curve
• Reputation and Switching Costs
Establish Brand loyalty with uncluttered advertising
• Lock-up Unique / Scarce Assets
Materials, Human experts, Locations/channels, Patents
• Benefit from Network Effects
Build base (telephony) or set standard (software, VCRs)

… BUT DISADVANTAGE IF
• Pioneering has high cost and uncertainty
• Pioneering may be imitated / leapfrogged
• Early adopters are not loyal customers
• Latecomers? depends on market potential
barriers to entry
 FIRST MOVERS VERSUS FOLLOWERS

FIRST MOVER WINS FOLLOWER WINS

Google (not AltaVista, Infoseek,
Teflon (DuPont) Lycos, Yahoo or Webcrawler)
Wintel PCs (Microsoft + Intel) Intuit (“47th mover advantage”)
Facebook
(not MySpace or Friendster)

… but usually it is not that simple

FIRST MOVER vs. FAST FOLLOWER(S) vs. LATE MOVER(S)

“it depends” on: PRODUCT, MARKET, RIVALS, …

often … NO CLEAR WINNER, EVOLUTION OVER TIME

Examples: Coca-Cola vs. Pepsi-Cola, PC industry
PERSONAL COMPUTER HARDWARE:
COMPETITION OVER TIME
Company Competitive Position Time
Altair First mover (rapid demise) 1975
Apple Pioneer (2nd or 3rd mover) since
Differentiation with product innovation 1976
IBM Created a new “standard” 1982
(HP) Differentiation on service since then
IBM No frills product at low price since
clones Focus on cost-sensitive niches 1983
Compaq Moved down the line
(now part Differentiation “portable” PC; speed 1980s
of HP) Cost leadership based on #1 volume 1990s
Dell Differentiation and Cost leadership since
“Dell Direct” + Build to order 1984
Legend/ Domestic focus – Backward integration 1984
Lenovo 1. Distribution 2. Manufacturing 3. Design
Global rival – IBM’s PC business 2005
 Being Followed By a
Big Shakeout

WHO WILL WIN?

 STRATEGIC ALTERNATIVES
CHALLENGERS can ..
LEADERS can …
Attack weaknesses
Expand the market Discount price
(underserved segments) Advertising heavily
Target non-users Innovate / improve
Identify new uses
Specialize (nichers)
Increase usage rate
geographically
end user (certain type)
Protect current share quality/service
add new features
Expand share
Advertising Segment carefully
Extend distribution Use R&D cleverly
Price incentives “unconventional wisdom”
Merger or takeover
 COOPERATIVE STRATEGY
CAN ALSO BE IMPORTANT
Reasons for cooperating
• Specialization (in activities)
to benefit from complementary resources
• Cost-sharing for non-competitive activities
• Market access (to overcome entry barriers)
• Market consolidation (to reduce rivalry)
• Uncertainty reduction (especially for SMEs)
 COOPERATION STRATEGY
REQUIRES PARTNERSHIPS
• Similar product providers in different markets
airlines serving different regions

• Industry rivals mobile phones (common standards)

Hong Kong banks (ATMs)

• Firms offering complementary products

hardware + software
distribution + content Sport Kit

• Value Chain activity specialists (advertising agencies,

logistics/IT services, contract manufacturers)
Yue Yuen makes shoes for Nike
Foxconn makes iPx-s for Apple
have made printers
 COMPETITIVE/
BUSINESS
STRATEGY

THE END

© Maris G. Martinsons
CORPORATE
STRATEGY

© Maris G. Martinsons
INTENDED LEARNING OBJECTIVES TODAY
• What alternatives can we use to grow or expand a
company?
• What do we mean by vertical integration and
horizontal integration?
• What is the difference between related diversification
and unrelated diversification?
• What are differences between organic growth (self-
development), alliances & acquisitions?
• Under what conditions should we use each alternative?
• How do we evaluate the quality of our strategy?
2
 HIERARCHY OF STRATEGY
CORPORATE
STRATEGY
HEADQUARTERS
Where should we compete?
How we can get synergy?

Strategic Strategic Strategic COMPETITIVE or

Business Business Business BUSINESS STRATEGY
Unit A Unit C
How should we compete?
Unit B (in each business)

FUNCTIONAL
Engineering

Accounting
Finance &

STRATEGY:
Marketing

R
& Sales

I How can we be
&
S more competitive?
D
 5 ELEMENTS OF STRATEGY
Hambrick & Fredrickson (2001) AME

CORPORATE
ARENAS
STRATEGY
Where will
we be active ? STAGING
VEHICLES ECONOMIC LOGIC When will
4

How will (BUSINESS MODEL) we do things

we How will we make ?
develop ? money? provide value? (sequence
and speed)
DIFFERENTIATORS
How will
we compete? BUSINESS
STRATEGY
 1st ELEMENT OF STRATEGY: ARENAS
Hambrick & Fredrickson (2001) AME

Scope of ARENAS
corporate Where will 1945 1973
activity we be active?
Products - lines or categories late 1990s

Markets
• geographic areas Do you
• target segments want to Grow
(Develop, Expand)
Value-adding stages or Survive
create/design, make/process, (Subsist,
market, distribute, retail, service be Stable)
Core technologies ?
 DIRECTIONAL STRATEGIES
based on Hunger & Wheelen (202x)

GROWTH STABILITY
Pause or Proceed with Caution
PENETRATION
HARVEST (or Milk)
no new investment
INTEGRATION
- Horizontal
- Vertical RETRENCHMENT
TURNAROUND
DIVERSIFICATION - Contraction …“stop the bleeding”
- Concentric (Related)
- Consolidation … improve operations
- Conglomerate (Unrelated)
CAPTIVE COMPANY
exchange independence for security
- Geographic e.g. “investment angel”

SELL-OUT/DIVESTMENT
which vehicle?
BANKRUPTCY/LIQUIDATION
6
CORPORATE GROWTH ALTERNATIVES
CURRENT ARENAS
• Retain Base – hold on to existing customers
• Gain Share – take customers from your rivals
• Position for Growth – be active where market
is growing (Environmental analysis)
NEW ARENAS
• Extend Business – become active in adjacent
products or markets
• Diversify – invest in different businesses
7
 VERTICAL INTEGRATION
MORE VALUE-ADDING STAGES
Producer
materials &/or machines Research &
Development
Supplier
materials? machinery?
Supplier
Financing
Core Business
Process / Make Buyer
Financing
FORWARD

Distributor
Repair &
Service
Retailer
 VERTICAL INTEGRATION
A FAILURE FOR FORD
Raw Materials
metals mines, rubber plantations

Research &
Supplier Development
ships, blast furnaces, glassworks

DISECONOMIES OF SCALE
Core Business LACK OF
Auto Manufacturing SPECIALIZATION
 FORWARD

Distributor “Downstream”
Financing
Maintenance &
Retailer Repairs
 FULLY INTEGRATED WITH COFFEE

Is it better to be foreign or local?

 BENEFITS AND RISKS OF
VERTICAL INTEGRATION
BENEFITS
• More control over key resources, assets & inputs
(supports JIT, standardization, etc.)
• Reduced threats from powerful buyers / suppliers
• Cost savings due to economies of scale / scope
• Ability to leverage industry-specific competences
forward or backward along the supply chain
RISKS
• More complexity may raise costs of managing
all the corporate activities
• Need to finance 100% of capital investment
(can not be shared with supply chain partners)
• Must avoid unbalanced capacity in supply chain
 ENTERING NEW ARENAS
based on: Igor Ansoff (1965) & Chris Zook (c2000)

Existing Product v New Product

MARKET NEW PRODUCT
PENETRATION DEVELOPMENT
Existing
Scaling Granulation Φ
Market Is the market large? Leverage core
grow market or share resources or capabilities

v NEW MARKET
DEVELOPMENT UNRELATED
Duplication Φ DIVERSIFICATION
New Leverage products,
Market experience, ‘model’ further details
in a moment
McDs, IKEA
Φ HORIZONTAL INTEGRATION
 BEYOND THE CORE (Chris Zook, 2004)
MANY TYPES OF ADJACENCIES

Global Forward integration

Backward integration
New geographies
Adjacent Sell expertise

Internet New VC steps Substitutes

New channels New businesses New models

indirect The
Core New-to-world
needs
New segments
New products
Unpenetrated Complements

New to Next
Sub-segmentation New world generation
 RECENT EXAMPLE OF
HORIZONTAL INTEGRATION
Processed Foods
Cheese + Tomatoes

US$ 15.4 billion impairment charge (in 2019/20)

 DIVERSIFICATION:
RELATED OR UNRELATED?
RELATED Diversification: add a new business
(or product line) that is distinct from your existing
businesses (or product lines), but takes significant
advantage of existing resources and capabilities.

Fruit juices and bottled water benefit from the beverage packaging
expertise and the established distribution channels of Coca-Cola

SYNERGY
STRATEGIC FIT

UNRELATED Diversification: add a new business

that does not benefit from your existing resources
or capabilities. This creates a conglomerate.
General Electric is a classic example … 15
GENERAL ELECTRIC NOW
LESS CONGLOMERATION

• Appliances & Lighting • Healthcare

• Aviation (Life sciences, Medical systems)

Aircraft engines • Media/Entertainment

Leasing planes TV & radio (NBC)
• Digital (IoT) • Oil & Gas
• Financing - commercial • Plastics
(GE Capital) • Power & Water
• Financing - consumer • Real Estate
(GE Money) • Renewable Energy
• Genworth Insurance • Transport (Locomotives)
4 TESTS FOR DIVERSIFICATION
Andrew Campbell & Robert Park (2006)

• Attractive Industry – Must have a

large profit pool that promises consistently
good long-term ROI
• Cost of Entry – Must have an entry barrier that
allows us to get in and achieve good long-term ROI
• Competitive Advantage – We must have
superior resources or capabilities to succeed
in this industry
• Better Off – All of our businesses together must
perform better under 1 corporate umbrella
when compared to operating independently
 THE RELATIONSHIP BETWEEN
DIVERSIFICATION AND PERFORMANCE
based on 30+ years of research Expect more
dynamic strategy
in early stages of
industry life-cycle

Adapted from Palich, Cardinal & Miller (2000) SMJ 18

 TREND TOWARDS SPECIALIZATION
• CONGLOMERATES still exist
chaebol
but becoming unfashionable
• Useful in inefficient markets
– Efficiency in absence of professional intermediaries
(VC firms, auditors, b-schools, etc.)
– Channel $$$ from cash cows to new businesses
– Train managers in one industry for another
– Reputation & connections are useful if rule-based
system for commerce is weak (e.g. guanxi in China)
BUT cronyism can lead to ill-advised subsidies
investors can do their own diversification
global competition rewards specialization
 DIVESTMENT / SPIN-OFF
A diversified corporation may
narrow its business scope

PepsiCo decides to keep …

but divests Yum Brands (Tricon)…

sold to

regulated bank in 2018 private equity firm

 PORTFOLIO ANALYSIS (3x3)
Hunger, Flynn & Wheelen (1990) AoM meetings
McKINSEY/ GENERAL ELECTRIC BUSINESS SCREEN (1970s)
Business Strength / Competitive Position
Strong Average Weak
Invest to Defend Invest to Grow Reposition
High Protect Position Challenge the leader Specialize/Focus
Industry Attractiveness

Vertical integration? Horizontal integration? Sell to rival?

Selective Growth Reposition, Reposition,

Medium
Invest in most Proceed with care Harvest or
attractive segments or Harvest Divest

Low Transition Harvest EXIT !

or Rejuvenate or Divest Divest or
Liquidate
21
BARCLAYS STRATEGIC REVIEW 2013

5 filters
(later 6)
e

Peter Lee
 PORTFOLIO ANALYSIS (2x2)
Prospects for each businesses ?

GROWTH-SHARE MATRIX
How attractive is the industry? What is our competitive position?
Market Share
High Low

STAR QUESTION
High MARK -or-
WILD CAT
Industry
Sustain Invest
Growth
Rate $$$ DOG
Low Milk or Divest
Harvest
 PORTFOLIO OF 5 CORE BUSINESSES

Ports & related services

Retail

Infrastructure

Energy

Telecommunications
AsiaID,
countries?
sLK,VN
 STRATEGIC PROJECT
PORTFOLIO ANALYSIS
GROWTH-SHARE MATRIX
Market Share
High Low

High

Industry
Growth
Rate

Low
 QUESTIONS TO CONSIDER:
HOW DO THESE BUSINESSES
FIT INTO THE PORTFOLIO?

26
 RESTRUCTURING
LI KA SHING’S EMPIRE
Complex
Relations

Asset
Non- CK Property
Property (only)
Stock Code: Stock Code:
1 1113

What are the Advantages? Disadvantages? 27

2nd ELEMENT OF STRATEGY: VEHICLES
Hambrick & Fredrickson (2001/2005) AME
Mainland China
market entry

Self-development
(organic growth)
VEHICLES
Contracts
How will License / Franchise
we
Strategic alliances &
develop? Joint ventures

Merger or Acquisition
 NEW MARKET DEVELOPMENT
GEOGRAPHIC DIVERSIFICATION
Why? How? Success?
Entry
Economies of Governance MNC Goals
Scale
Increased Mode Management KPIs
Market Size of
Economies Exporting Global Market
Scope
Return on(cross- Position
biz synergy)
Investment Licensing
Multi-
Economies
Economies of Franchising domestic Financial
of Replication
Scale and Results
(transplant
Learning Strategic
proven ‘model’) Alliance
International
Location
Products/
Location/
Advantage New Processes
Cost Subsidiary
Advantages
(factory from
HKG to CN to x) Set up or
Acquire
 GOVERNANCE MODE
High ORGANIC (100% SUBSIDIARY)
Acquisition (fast) or new set-up (custom)
Full control, high profit potential but risky
except Hong Kong
May be restricted by laws or regulations
STRATEGIC ALLIANCE
Shared risks and rewards
JVs (foreign technology + local marketing)
Assets May have diverging goals, clash of cultures
at FRANCHISING
Similar to licensing but more control
Risk
LICENSING
Authority to make/sell your products
Licensee takes entry risk, pays royalty
BUT your control & profits are limited
EXPORTING
Do NOT leave home, BUT transport
costs & tariffs; Protectionist risk
NO marketing or distribution control
Low
Degree of Ownership and Control High
 HOW MUCH COMMITMENT?
Functional alliance (marketing): Assets are managed
separately. airline code sharing, bank cards & retailers
OUT ON A DATE

Contractual/operational alliance: Coordinated

management of complementary assets, but separate
ownership. license/franchise, Star Alliance/OneWorld
GOING STEADY

Relational alliance: Assets are pooled but a risk of

appropriation remains due to differing interests.
research consortia, Sino-foreign joint venture
ENGAGED

Integration: Assets are inseparably unified in one

organization & mission. merger or acquisition.
MARRIED
 MULTINATIONAL MANAGEMENT
Bartlett & Ghoshal (1989) Transnational Solution

High GLOBAL TRANSNATIONAL ?

Standardized Aim for ‘best of both’:
products and processes Global efficiency and
for a ‘single market’ Local responsiveness
Global Integration

INTERNATIONAL MULTI-DOMESTIC
Centralized Highly independent
Value added ‘at home’ ‘national’ subsidiaries
Products are exported respond to local needs

Low
Local Responsiveness High
32
 WHY M & A ?
Improve Competitiveness
Combine capabilities; Economies of …↑
products + channels; wider appeal

Overcome Entry Barrier(s)

special purpose
Avoid “start-up” costs or speed up entry acquisition company
back-door listing (reverse takeover on HKEx) (SPAC)

‘Safe’ Route to New Tech / Products

Buy a business to reduce ‘venture risk’
“Big tech” firm buys “small tech” firm
Diversify / Reshape Business Scope
Reduce / spread risk or leverage competencies
Philip Morris buys F&B firms, changes name
Hong Kong property developers
 EXPECTED BENEFITS OF A MERGER
= “IRRATIONAL EXUBERANCE” ?
McKinsey & Company … post-merger survey

Mergers reflect principal-agent problem:

personal prestige & empire building; not shareholder value creation
Conclusion: Investors (and others) should be skeptical when
management expects to achieve financial benefits from “synergy”34
M&As – POPULAR DESPITE PROBLEMS
Average M&A destroys shareholder value;
Cross-border deals are worse
Poor Knowledge of Target (Practices, Performance)
Acquirer overpays (bidding war premium = winner’s curse)
Advice: carefully select, evaluate and negotiate
Too Much Diversification or Too Much Debt
Lack resources to integrate/manage unrelated businesses
Advice: do not overreach on business scope or financing

100% 25% 9.9% 100%

Integration Challenges
Differing systems & cultures
Advice: evaluate compatibility as well as economic logic
 FINAL ELEMENT OF STRATEGY: STAGING
Hambrick & Fredrickson (2001/2005) AME
“We can do anything, but we can’t do everything … at least not at
the same time. We should set our priorities not in terms of what
we can do, but when we will do them. Timing is everything.“

Sequence of activities
• Brand building STAGING
• Product line extension
When
• New market entry will we do
vending machines
international expansion things?
photocopiers
(sequence
and speed)
Speed of implementation
 WHAT DO THESE WHAT DO THESE
3 GENTLEMEN 3 CORPORATIONS
HAVE IN COMMON? HAVE IN COMMON?

• Jack Ma & his partners privatized Alibaba.com by paying

US$2.5 billion. It was delisted from HKEx in July 2012.
• Michael Dell, investment firm Silver Lake & others
proposed to privatize Dell Inc. by paying US$24 billion.
Dell was delisted from the Nasdaq on 29 October 2013.
• Berkshire Hathaway & 3G are investment companies
controlled by Warren Buffett (U.S.) & Jorge Paulo
Lemann (Brazil), respectively. They have agreed to pay
US$23 billion in order to privatize H.J. Heinz Company.
Heinz Company was delisted from NYSE.
Why privatize a listed company? 37
 5 ELEMENTS TO DESCRIBE …
EARLIER,
NOW, 6 QUESTIONS TO EVALUATE STRATEGY

• Does your strategy fit your external environment?

– Attractive value proposition
– Alignment with Key Success Factors
• Is your strategy internally consistent?
– Do your arena(s), vehicles, differentiators, staging and
economic logic reinforce each other?
• Does your strategy exploit your key resources?
– Competitive advantage versus rivals
• Do you have sufficient resources for your strategy?
• Can your strategy be implemented successfully?
– Support from stakeholders? Ability to manage change?
• Is your strategy sustainable?
– Can rivals follow you? If yes, can you stay ahead?
CORPORATE
STRATEGY

THE END

© Maris G. Martinsons
 Quiz 2
On Canvas, ‘open-book’

Again, 10 MC questions in 10 minutes

that cover topics in Weeks 5 to 7

Accessible from 1800 to 2100 on Friday

40