Theory Author Definition When to use Framework

Porter’s five forces Porter, 1979 To assess industry’s  New market entry
attractiveness,  Evaluate investment
competition rivalry,
profitability

Resource Based Barney, 1991 Resources & capabilities To develop sustainable VRIN framework: Value, Rare, Inimitable, Non-
Value (RBV) is about what we have competitive advantage Substitutable
and what we can do
Competitive Barney, 1991 Distinctive resources & To differentiate
advantage capabilities to
outperform competitors
Dynamic capabilities Teece et al., Abilities to renew RC to Sustaining competitive - Sensing (find opportunities)
1997 adapt changing advantage - Seizing (address the opportunity, NPD or new
environment process)
- Reconfiguring (change in organisation or invest in
tech)
Generic strategies Porter, 1980 The fundamental To gain a competitive Cost Leadership:
approach: cost advantage in the market - Low input cost
leadership, - Economies of scale
differentiation, focus - Efficient product/process design
Differentiation:
- Service orientation
- Product superiority
- Innovation orientation
Four box frameworks Johnson et al., Business model is four Assess situation and 1. Customer value proposition: target customer,
2008 interlocking elements to identify areas for job to be done, offering
create and deliver value. improvement 2. Profit formula: revenue model, cost structure,
margin model
3. Key processes & resources: processes &
metrics; people & tech
Business Model Types Baden-Fuller, Architecture of value Differentiate business 1. Product: create standardised products
2019 creation, deliver, and model 2. Solutions: create tailored services
capture 3. Matchmaker: facilitate change between two
groups
4. Multi-sided: serve multiple interdependent
customer
Theory Author Definition When to use Framework
Business Model Johnson et al., Process in which an Business model change  Addressing unmet needs
Innovation 2008 organisation adjusts its  Leveraging new technologies
business model  Job-to-be-done focus??
 Defending against disruptors
 Adapting to shifting competition
Digital Furr et al., 2022 - Transformation in digital 1. IT uplift
Transformation 2. Digitising operations
3. Digital marketing
4. New ventures
Digital Business Von Delf & Architecture of value Digital transformation
Model Zhao, 2023 creation, deliver, and
capture, enabled by
digital tech
BCG Matrix Henderson, portfolio management Allocating resources
1970 tool to help allocate
resources

Ansoff Matrix Ansoff, 1988 Product-market growth Identify growth

matrix opportunities

Vertical Integration - Control multiple stages  create efficiencies  Backward: upstream, production
of supply chain:  improve product  Forward: downstream, distribution
production to distribution quality
 secure competitive
advantages
Diversification Test Porter, 1987 To ensure company have to test whether 1. Attractiveness test
the right decision diversification add 2. The cost of entry test
entering new industry value? 3. The better of test
Theory Author Definition When to use Framework
4 Concepts of Porter, 1987 three main ways in which To assess when does 1. Portfolio management:
Corporate Strategy corporate strategy can corporate strategy add 2. Restructuring
add value value 3. Transferring skills
4. Sharing activities
Pattern of industry Grant & Jordan, Describe how industry Moving from local to
Internationalisation 2015 expand globally global

Drivers of Whittington et Key motives to expand To assess international

internationalisation al., 2020 internationally expansion

Integration- Whittington et determine the best To assess international

Responsiveness al., 2020 approach for managing strategy
Framework operations across the
globe

Reverse Innovation Govindarajan & Innovations trickle up  Emerging markets

Ramamurti, from developing to  Low-cost alternatives
2011 developed countries  Unlock new revenue
stream

Integration Strategy Haspeslagh & Integration strategy for  Managing M&A

Jemison, 2011 M&A
 What is business model?  Four-Box Framework (Johnson et al., 2008)
1. Customer value proposition: target customer, job to be done, offering
2. Profit formula: revenue model, cost structure, margin model
3. Key processes & resources: processes & metrics; people & tech
What is business model experimentation?  Observing how customers react to business assumptions
 Steps:
1. Identify riskiest assumption
2. Design experiment
Business 3. Run Experiment
Model 4. Analyse result
5. Take evidence-based decision
What is business model innovation  Process in which firm adjust their business model (Johnson et al., 2008)
Why is BM innovation difficult in established firms? Risk aversion  pilot project
How to design business model in digital eco?  Value capture, creation, and delivery enabled by digital technologies. (Von Delf &
Zhao, 2023)

What is outsourcing?  Delegating tasks to the third party

Why do firms outsource activities?  Cost saving
 Improve efficiency
 Focus on core competencies
Which functional areas do they outsource?  Business function: legal, tax, HR
Outsourcing  IT functions: cybersecurity, app development, IT infrastructure
To outsource or not?  Relative strategic capabilities:
Does the subcontractor have the potential to do the work significantly better?
 Risk of opportunism:
Is the subcontractor likely to take advantage of the relationship over time?
How has outsourcing evolved?  Increase in  operate services, managed services, and traditional outsourcing
Implementat What is the role of structure in strategy  Defined roles, responsibilities, and lines of reporting.
ion implementation?  Diversification = multidivisional (decentralised responsibilities but can become too
autonomous)
 Internationalisation = matrix (specialised expertise but can become slow in decision
making)
 Innovation = project-based (flexible but can be ineffective)
Why does strategy execution unravel, and what can  coordination, agility, strategic understanding, execution culture, distribution leaders
be done? (Sull et al., 2015)
What control systems can support implementation?  Hill et al. (2017)
 established goals & standards  measure performance  compare performance vs goals
& standards
What are agile organisations?  People-centred organisation
  North start metrics & OKRs

Corporate Strategy (Porter, 1987)

Diversification: 1. Attractiveness test
Must be taken to Rate of return forming in an industry
ensure good strategic
2. The cost of entry test
result
Cost compared to the expected returns
3. The better of test
Will it build competitive advantage?
Corporate Strategy: 1. Portfolio management
ensure shareholders - Managing business unit or investment
value
- Role: reviewer
- Ex: General Electric balancing investments across aviation, healthcare, and energy.
2. Restructuring
- Acquiring underperform business
- Role: active restructurer (cost cutting, reorganisation, repositioning)
- Ex: PepsiCo’s Divestment of Non-Core Businesses (pizza hut, taco bell, KFC)
3. Transferring skills
- Sharing capabilities to improve business unit performance
- Role: shared knowledge coordinator
- Ex: P&G using its marketing expertise across its consumer brands.
4. Sharing activities
- Sharing resources to improve business unit performance
- Role: shared resource coordinator
- Ex: Amazon logistic supports AWS and retail business

Strategic Alliances (share resources and activities) (Whittington et al., 2020)

Types  Equity alliances: new entity, owned by partners involved, ex: joint venture
 Non-equity alliances: contract based, ex: franchise
Approa Buy/ Ally/ DIY
ch