Transportation/Logistic Strategy
Strategy and Culture
Overview of Corporate Strategy
Miles and Snow Typologies
Porter’s Generic Strategies
Barney’s Resource-Based Theory
Distinctive Capabilities
Matching Strategy and Capabilities
Corporate Culture
Country Culture
Transportation/Logistic Strategy
Strategy and Culture
Overview of Corporate Strategy
Strategy:
A course of action or plan designed to accomplish
a specific goal or objective.
Generic Strategies
Miles and Snow Strategic Typologies
Porter’s Generic Strategies
Barney’s Resource Based Theory
Transportation/Logistic Strategy
Strategy and Culture
Miles and Snow Strategic Typologies
Defenders
Reactors
Analyzers
Prospectors
Transportation/Logistic Strategy
Strategy and Culture
Miles and Snow Strategic Typologies
Defenders:
Highly expert at producing and marketing a few products in
a narrowly defined market.
Opportunities beyond the present may not be sought.
Few adjustments in technology, organization structure, and
methods of operation because of narrow focus.
Transportation/Logistic Strategy
Strategy and Culture
Miles and Snow Strategic Typologies
Reactors:
Frequently unable to respond quickly to perceived changes in
environment.
Make adjustments only when finally forced to do so by
environmental pressures.
Reactors wait for adversity (i.e., declining sales) before taking
corrective steps.
Transportation/Logistic Strategy
Strategy and Culture
Miles and Snow Strategic Typologies
Analyzers:
Simultaneous operations in stable and changing product market
domains.
In relatively stable product/market domain, emphasis on
formalized structures and processes to achieve routine and
efficient operations.
In changing product/market domain, emphasis on detecting and
copying competitors most promising ideas. Associated with
“Me Too” products.
Transportation/Logistic Strategy
Strategy and Culture
Miles and Snow Strategic Typologies
Prospectors:
Primary attention devoted to searching for new market
opportunities.
Frequent development and testing of new products and services.
Source of change and uncertainty for competitors.
Loss of efficiency because of continual product and market
innovation.
Transportation/Logistic Strategy
Strategy and Culture
Overview of Corporate Strategy
Miles and Snow Typologies
Porter’s Generic Strategies
Barney’s Resource-Based Theory
Distinctive Capabilities
Matching Strategy and Capabilities
Corporate Culture
Country Culture
Transportation/Logistic Strategy
Strategy and Culture
Porter’s Generic Strategies
Low Cost vs Differentiation
External Oriented
Threats and Opportunities
Barney’s Resource Based Theory
Distinctive Capabilities
Internal Oriented
Strengths and Weaknesses
Transportation/Logistic Strategy
Strategy and Culture
The Relationship Between Barney’s Resource-based
Theory & Porter’s Generic Strategy
(SWOT Analysis)
Barney’s Resource
Based-Theory
Porter’s Generic
Strategy
Strengths
Threats
Weaknesses
Opportunities
Internal Analysis
External Analysis
Transportation/Logistic Strategy
Strategy and Culture
Distinctive Capabilities
Distinctive Capabilities are “complex bundles of skills and
accumulated knowledge, exercised through organizational
processes, that enable firms to make use of their assets and
functions like a key success factor (Day 1994).”
Transportation/Logistic Strategy
Strategy and Culture
Process Capabilities
Capability
Low Logistics Cost
Operational Simplification
Operational Standardization
Problem Avoidance
Product Introduction
Product Phase Out
Product Recall
Responsiveness to Key Customers
Reverse Logistics Timing
Selective Distribution Coverage
Correlation with
Performance
0.179
0.053
0.151
0.155
0.337
0.076
0.107
0.214
0.129
0.120
Significance
Level
0.068 *
0.325 *
0.099 *
0.091 *
0.001 *
0.255
0.181
0.035 *
0.153
0.155
Transportation/Logistic Strategy
Strategy and Culture
Differentiation Capabilities
Capability
Value-Added Services
Advanced Shipment Notification
Customer Service Flexibility
Delivery Dependability
Delivery Speed
Delivery Time Flexibility
Disruption in Supply
Expedited Delivery
Innovativeness
Location Flexibility
Correlation with
Performance
0.289
0.099
0.247
0.268
0.122
0.013
0.178
0.144
0.080
0.106
Significance
Level
0.005 *
0.197
0.015 *
0.001 *
0.147
0.455
0.062 *
0.108
0.247
0.185
Transportation/Logistic Strategy
Strategy and Culture
Differentiation Capabilities
Capability
Problem & Complaint Resolution
Process Flexibility
Product Flexibility
Product Flexibility During Logistics
Product Innovation
Volume Flexibility
Order Fill Capacity
Order Flexibility
Widespread Distribution Coverage
Correlation with
Performance
0.140
0.218
0.394
0.193
0.200
0.106
0.218
0.397
0.127
Significance
Level
0.113
0.030 *
0.002 *
0.059 *
0.041 *
0.231
0.029 *
0.001
0.139
Transportation/Logistic Strategy
Strategy and Culture
Overview of Corporate Strategy
Miles and Snow Typologies
Corporate Culture
Porter’s Generic Strategies
Barney’s Resource-Based Theory
Distinctive Capabilities
Matching Strategy and Capabilities
Emerging Strategies
Transportation/Logistic Strategy
Strategy and Culture
Matching Capabilities to Strategies
Strategy
Cost Leadership Differentiation
Low Cost
Capabilities
(Processes)
Good
Performance
Poor
Performance
Poor
Performance
Good
Performance
Capabilities
Differentiation
Capabilities
(Value-Added
Services)
Transportation/Logistic Strategy
Strategy
and Culture
Logistics Strategy,
Capabilities,
and Performance
in the Retail Grocery Industry
Logistics
Capabilities
Strategy
Process
Capabilities
H1: = .74
(t = 3.96)
H3: = .25
(t = 1.82)
Firm
Performance
H9: = -.27
(t = -1.43)
Cost
Leadership
H5: = .54
(t = 3.05)
Performance
H4: = -.20
(t = -1.65)
Differentiation H6: = .33
(t = 2.61)
H2: = .30
(t = 2.33)
Value-added
Service
Capabilities
H10: = .21
(t =1.68)
H7 H5 > H6
H8 H1 > H2
H11 H1 & H2 > H3 & H4
Transportation/Logistic Strategy
Strategy and Culture
Matching Capabilities to Strategies
Strategy
Cost Leadership Differentiation
Low Cost
Capabilities
(Processes)
Capabilities
Differentiation
Capabilities
(Value-Added
Services)
Good
Performance
28%
Poor
Performance
32%
Poor
Performance
27%
Good
Performance
13%
Transportation/Logistic Strategy
Strategy and Culture
Overview of Corporate Strategy
Miles and Snow Typologies
Porter’s Generic Strategies
Barney’s Resource-Based Theory
Distinctive Capabilities
Matching Strategy and Capabilities
Corporate Culture
Country Culture
Transportation/Logistic Strategy
Strategy and Culture
Corporate Culture
Culture the sum total of the attainments and learned behavior
patterns of any specific period, race, or people, regarded as
expressing a traditional way of life subject to gradual but
continuous modification by succeeding generations.
Corporate culture is the collection of learned and shared
values and beliefs that create a common identity for members of
an organization.
Corporate Culture is an element of the firm composed of sets
of values which should be managed by the organization in its
efforts to achieve the goals of environmental adaptation and
constituency satisfaction.
Transportation/Logistic Strategy
Strategy and Culture
Dimensions of Corporate Cultural
Management Style: Organic vs Mechanistic
Organizational Form: Flexible vs Rigid
Managerial Focus: Internal vs External
Managerial Targets: Stable Markets vs Flexible Markets
Transportation/Logistic Strategy
Culture
Types
Strategy
and
Culture
Organic Management Style
Organizational Flexibility
Internal
Focus
Stable
Market
External
Focus
Flexible
Market
Mechanistic Management Style
Organizational Stability
Transportation/Logistic Strategy
Culture
Types
Strategy
and
Culture
Organic Management Style
Organizational Flexibility
Internal
Focus
Stable
Market
The Clan
Internal Orientation
Organic Management
Emphasizes Flexibility
Stable Market Position
Adhocracy
External Orientation
Organic Management
Emphasizes Flexibility
Flexible Market Position
Hierarchy
Internal Orientation
Mechanistic Management
Emphasizes Control
Stable Market Position
The Market Type
External Orientation
Mechanistic Management
Emphasizes Control
Flexible Market Position
Mechanistic Management Style
Organizational Stability
External
Focus
Flexible
Market
Transportation/Logistic Strategy
Strategy and Culture
Miles and Snow Strategic Typologies
Defenders
Analyzers
Reactors
Prospectors
Transportation/Logistic Strategy
Culture
Types
Strategy
and
Culture
Organic Management Style
Organizational Flexibility
Internal
Focus
Stable
Market
The Clan
Adhocracy
Strategy?
Strategy?
Hierarchy
The Market Type
Strategy?
Strategy?
Mechanistic Management Style
Organizational Stability
External
Focus
Flexible
Market
Transportation/Logistic Strategy
Culture
Types
Strategy
and
Culture
Organic Management Style
Organizational Flexibility
Internal
Focus
Stable
Market
The Clan
Adhocracy
Reactors?
Prospectors?
Hierarchy
The Market Type
Defenders?
Analyzers?
Mechanistic Management Style
Organizational Stability
External
Focus
Flexible
Market
Transportation/Logistic Strategy
Strategy and Culture
Model:
Standardized
Coefficients
Coefficients
(B)
Std. Error
(Beta)
T-Value P-Value
(Constant) 96.788
0.589
164.191
0.000
Prospect
-2.779
1.007
-0.238
-2.759
0.007
Analyze
-2.673
0.778
-0.300
-3.434
0.001
Revenue
0.000
0.000
-0.190
-2.277
0.025
Match M&S -2.068
0.827
-0.215
-2.501
0.014
FRH*
2.163
0.917
0.192
2.357
0.020
a Dependent Variable: Operating Ratio
* Dummy for Flatbed, Reefer, Household Goods; Normal state was TL;
Dummy for LTL was not significant.
Transportation/Logistic Strategy
Strategy and Culture
Motor Carrier Operating Ratios
STRATEGY
Clan
CULTURE Adhocracy
Hierarchy
Market
Mean Unmatched
Matched in Bold
Reactor
99.0
96.3
96.8
97.5
Prospector
95.8
90.9
93.0
94.0
Defender
95.7
98.1
94.7
95.3
Analyzer
93.0
94.5
93.4
92.1
96.9
99.0
94.3
90.9
96.4
94.7
93.6
92.1
Transportation/Logistic Strategy
Strategy and Culture
Motor Carrier Operating Ratios
% Matched
% Matched
% Not Matched N
N
2
31
Clan/Reactor
99.0
96.9
10
22
Hierarchy/Defender
17
23
73
94.7
96.4
% Not Matched
Adhocracy/Prospector Sums
90.9
12
94.3
53
Market/Analyzer
8
18
58
92.1
93.6
25
41
Total: 131 131
Transportation/Logistic Strategy
Strategy and Culture
Overview of Corporate Strategy
Miles and Snow Typologies
Porter’s Generic Strategies
Barney’s Resource-Based Theory
Distinctive Capabilities
Matching Strategy and Capabilities
Corporate Culture
Country Culture
Transportation/Logistic Strategy
Strategy and Culture
Key Sources of Cultural Difference
Power Distance
Uncertainty Avoidance
Individualism
Assertiveness
Level of Context
Polychronic/Monochronic Time
Face (in Asia)
Transportation/Logistic Strategy
Strategy and Culture
Power Distances by Country
Mexico
India
Singapore
Country
France
Thailand
S Korea
Taiwan
Japan
Italy
USA
Canada
Germany
Britain
Isreal
0
20
40
60
80
100
Power Scale
Transportation/Logistic Strategy
Strategy and Culture
Uncertainty Avoidance by Country
Japan
S Korea
France
Mexico
Italy
Taiwan
Germany
Thailand
Canada
USA
India
Britain
Singapore
0
20
40
60
80
100
Uncertainty Avoidance Scale
Transportation/Logistic Strategy
Strategy and Culture
Individualism by Country
USA
Britain
Canada
Italy
France
Germany
India
Japan
Mexico
Singapore
Thailand
S Korea
Taiwan
0
20
40
60
80
100
Individualism Scale
Transportation/Logistic Strategy
Strategy and Culture
Assertiveness by Country
Japan
Italy
Mexico
Britain
Germany
USA
India
Canada
Singapore
Taiwan
France
S Korea
Thailand
Sweeden
0
20
40
60
80
100
Assertiveness Scale
Transportation/Logistic Strategy
Strategy and Culture
Matching Corporate and Country Cultures
Low Power Distance
Monochronic
Polychronic
High Power Distance
Transportation/Logistic Strategy
Strategy and Culture
Matching Corporate and Country Cultures
Low Power Distance
Clan
Adhocracy
Monochronic
Polychronic
Hierarchy
Market Type
High Power Distance
Transportation/Logistic Strategy
Strategy and Culture
Matching Corporate and Country Cultures
Low Uncertainty Avoidance
Monochronic
Polychronic
High Uncertainty Avoidance
Transportation/Logistic Strategy
Strategy and Culture
Matching Corporate and Country Cultures
Low Uncertainty Avoidance
Clan
Adhocracy
Monochronic
Polychronic
Hierarchy
Market Type
High Uncertainty Avoidance