Core Competence at NEC and GTE
Teaching Notes
Teaching Notes: Finntrack
Strategy: Analysis and Practice ©2005 McGraw-Hill Education Europe
Index
• Workshop
• Case Analysis
• Debate
• Case Questions
• How to Use Your Workshop
Resources
• Disclaimer
• Learning Objectives
• Introduction to NEC
• Introduction to Information
Technology
• Introduction to Verizon
• Introduction to
Telecommunications
• Communication and GTE
• Multinational Corporations
• Business Drivers
• Business Analysis
• Benchmarking
Click on Image
Larger Image
Source: NEC Corporation
Index
• Core Competence
• Corporate Capabilities
• Core Competency
• Strategic Intent
• Innovation
• New Paradigm: Resource-Based
Theory
• Theory of Constraints
• Value Chain
• Organisational Culture
• Organisational Structure
• Economic Value Added
• Six Sigma
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Competitive Advantage
Strategic Planning
Competition
What in the World is Competitive
Advantage?
• What in the World is Competitive
Advantage?
• Competitive Postion: Competitive
Advantage
• What is Sustainable Competitive
Advantage
• Sustainable Competitive
Advantage
• Creating Business Value
• Interest Alignment Rents and
Competitive Advantage
• Performance measures to support
competitive advantage
• Competitive Strategy: The Analysis of
Strategic Position
• Lecture
• Competitive Strategy: The Analysis of
Strategic Capability
• Lecture
Workshop
This workshop series is designed to compliment Teaching and Learning Strategies
for undergraduate, postgraduate and executive level Strategic Management and
related programmes and courses using the case studies featured in the ‘Strategy
Analysis and Practice’ text shown below.
The overall aim is to support the learning contents offered in the relevant
chapters of the book whilst expanding participants’ knowledge and skills base
required to understand, review and analyse the strategic management issues
involved in the case study of NEC and GTE.
Strategy Analysis and Practice
John McGee, Warwick Business School
Howard Thomas, Warwick Business School
David Wilson, Warwick Business School
Case Analysis
A case study is a particular method of
qualitative research.
Rather than using large samples and
following a rigid protocol to examine a
limited number of variables, case study
methods involve an in-depth, longitudinal
examination of a single instance or event:
a case.
They provide a systematic way of looking
at events, collecting data, analyzing
information, and reporting the results.
As a result the researcher may gain a
sharpened understanding of why the
instance happened as it did, and what
might become important to look at more
extensively in future research.
Case Analysis
Case studies lend themselves especially to generating (rather than
testing) hypotheses.
• The scope and relevance of case studies
• Types of case study
• Illustrative case studies
• Exploratory case studies
• Critical instance case studies
• Program implementation case studies
• Program effects case studies
• Cumulative case studies
• Business school case studies
• Medical case studies
• History of the case study
• Conclusions
• Notable case studies
• References
• See also
• External links
Debate
Workshop discussion topics have been divided into three parts according to
the relevant chapters of the book:
1.
Introduction
2.
Competitive Strategy: The Analysis of Strategic Position
3.
Competitive Strategy: The Analysis of Strategic Capability
You should ensure that you have understood the contents of chapters 6 and 7
prior to attending any of the above debates.
Also see:
How to Use Your Workshop Resources
Learning Objectives
Learning from Case Studies: A Short Guide for Students
Case Questions
Please Note:
At your instructor’s discretion the indicative questions below and elsewhere in this resource
may be varied or deemed unnecessary for teaching and learning purposes for some courses
or modules.
Also see Learning Using Case Studies for further information.
According to Hamel and Prahalad (1990) a company's core competency are things that a
firm can do well and that meet the following three conditions
1.
It provides customer benefits,
2.
It is hard for competitors to imitate, and
3.
It can be leveraged widely to many products and market.
Have NEC and GTE (the latter is now owned by Verizon Communications) met the
conditions? Using appropriate Benchmarking (Competitive/Collaborative)
processes, evaluate the companies current core competencies and recommend
improvements where necessary.
Also see A Model for Case Analysis and Problem Solving
How to Use Your Workshop Resources
Viewing
You will need either MS PowerPoint program or PowerPoint Viewer installed on your
computer. The latter may be downloaded free from Microsoft website here.
Navigation
The Learning Contents (Literature Reviews) are linked to a relevant public domain o
the Internet.
Most, if not all pictures/images are ‘clickable’, i.e. linked to its source which provides
further information on the topic or the copyright holder.
If your version of PowerPoint does not show the navigation buttons on the slide, righ
click on the screen and select your destination from the dialogue box. Alternatively
use the small arrowheads,
indicating ‘previous’ and ‘next’ respectively.
Disclaimer
This information is provided with the understanding that the authors and
publishers do not assume any legal responsibility for the completeness or
accuracy of the contents or any opinions or views expressed on these pages or
linked destination sources.
It is the nature of the media (Internet) that some of the pages may not always
be available due to broken or dead links, withdrawals, etc. Whilst the publishers
will be pleased to take any appropriate corrective action, for example, by
replacing or removing the sources when possible, they unable to assume any
legal responsibility for unavailability of any third party material for whatever
reason beyond their direct control.
Learning Objectives
The main objective of the workshop is to evaluate the competitive
strategy development and implementation proceses of NCE and
Participants will have an opportunity of developing and enhancing their
• strategic thinking skills
• appreciations of the complex decision making process involved in
economic strategies such as migration and outsourcing
• analytical and critical thinking skills by reviewing the factors that
influenced corporate centre's decisions on the businesses in their
portfolios
Introduction to NEC
NEC Corporation (Japanese 日本電気株式会社
Nippon Denki Kabushiki Gaisha; TYO: 6701 ,
NASDAQ: NIPNY, LSE: NEC) is a multi-national
information technologies company headquartered
in Minato-ku, Tokyo, Japan.
NEC, part of the Sumitomo Group, provides
information technology (IT) and network solutions
to business enterprises, communications services
providers and government.
Their business is divided into the three principal
segments:
• IT Solutions
• Network Solutions and
• Electron Devices.
Click on Image
Source: Wikipedia
Introduction to NEC
The IT Solutions business delivers
computing solutions to business
enterprises, government and individual
customers. The IT Solutions business
provides software, hardware and related
services. The Network Solutions
business designs and provides
broadband network systems, mobile and
wireless communications network
systems, mobile handsets, broadcast
and other systems.
Click on Image
Source: NEC Corporation
NEC's Electron Devices business includes semiconductors, displays and other
electronic components. NEC produces Versa notebooks for the international
market and the Lavie series for Japanese market.
Introduction to NEC
Proud achievements of NEC include the
discovery of carbon nanotube by Sumio
Iijima, and the creation of the Earth
Simulator, the fastest supercomputer in
the world at the time. Over the past five
years NEC has ranked consistently in the
top 4 companies for number of U.S.
patents issued, averaging 1764 granted
each year.
The company was formerly known as
Nippon Electric Company, Limited ,
before it was renamed in 1983. It still
goes by the old name in Japan.
Larger Image
Click on Image
Source: NEC Corporation
Introduction to NEC
• Products by Category
• Computers
• Networking
• Semiconductor & Component
• Other
• Consolidated Financial Results for the
Third Quarter of the Fiscal Year Ending
March 31, 2006
Click on Image
Source: NEC Corporation
Introduction to Information Technology
Information technology (IT) or Information
and communication(s) technology (ICT) (also
Infocomm, esp. in Asia) is a broad subject
concerned with technology and other aspects of
managing and processing information, especially in
large organizations.
In particular, IT deals with the use of electronic
computers and computer software to convert, store,
protect, process, transmit, and retrieve information.
For that reason, computer professionals are often
called IT specialists, and the division of a
company or university that deals with software
technology is often called the IT department.
Other names for the latter are information services
(IS) or management information services (MIS),
managed service providers (MSP).
Click on Image
Source: NEC Corporation
Introduction to Information Technology
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Information technology audit
IT audit resources
Computer security audit
Computing
Computer science
Information science
Information security
World Wide Web
Digital library
Pattern recognition
Data management
Data processing
RFID
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Data mining
Data drilling
Metadata
Data storage
Database
Data networking
Technology assessment
Cryptography
Information Technology
Infrastructure Library
• Information technology
governance
• Telematics
Introduction to Verizon Communications
Verizon Communications (NYSE:
VZ) is a major telecom company based
in New York City. It was formed when
Bell Atlantic, one of the Regional Bell
Operating Companies, bought GTE,
formerly the largest independent localexchange telephone company in the
United States in 2000.
Prior to its transformation into Verizon,
Bell Atlantic had merged with another
Regional Bell Operating Company,
NYNEX, in 1997. The name is a
portmanteau of vertical and horizon,
creating a paradoxical title which
sounds modern, optimistic, and
pleasing to the average consumer.
Click on Image
Source: Copyright 2006 Verizon
GTE corporate logo, 1971-2000
Introduction to Verizon Communications
• History
• Pre-Verizon Creation
• Bell Atlantic
• NYNEX
• GTE
• Creation of Verizon
• Merger Effects
• MCI Acquisition
• Sale of international units
• Verizon Services
• Voice
• Video
• Data
• Directory Operations
• See also
• Corporate Governance
• Verizon's Competitors
• Landline
• Wireless
• References
• External links
Click on Image
Source: Copyright 2006 Verizon
Introduction to Verizon Communications
• Company Profile
• Overview
• Products & Services
• Corporate History
• Industry Overview
• Technology
• Business Segments
• Overview
• Domestic Telecom
• Domestic Wireless
• International
• Information Services
Source: Copyright 2006 Verizon
Introduction to Verizon Communications
• Consolidated Statement of Income 2004 - 2005
• Presentation
• Webcast Presentations
Source: Copyright 2006 Verizon
Introduction to Telecommunications
Telecommunications is the communication of
information over a distance. More …
• Explanation
• Examples of human
(tele)communications
• History of Telecommunication
• Telegraphy
• Optical
• Electromagnetic and electrical
• Early wireless communication
• Wireless telegraphy
• Radio communication
• See also
• External links
Click on Image
Source: © 2006 Telenor ASA
Multinational Corporations
A multinational corporation (MNC) or multinational enterprise (MNE) or
transnational corporation (TNC) is a corporation/enterprise that manages
production establishments or delivers services in at least two countries.
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Critiques
Examples
In fiction
See also
• Fostering Growth and
Promoting a Responsible
Market Economy - A G8
Declaration
Annual Report on the
Guidelines for
Multinational
Enterprises The
2005 edition includes
a special focus on
corporate
responsibility in the
developing world
Multinational Corporations
Multinational corporations (MNC) are often divided
into three broad groups:
• Horizontally integrated multinational
corporations manage production
establishments located in different countries
to produce same or similar products.
• Vertically integrated multinational
corporations manage production
establishment in certain country/countries to
produce products that serve as input to its
production establishments in other
country/countries.
• Diversified multinational corporations
manage production establishments located
in different countries that are neither
horizontally or vertically integrated.
Multinational Corporations
Multinationals have played an important
role in globalization. Given their
international reach and mobility,
prospective countries, and sometimes
regions within countries, must compete
with each other to have MNCs locate their
facilities (and subsequent tax revenue,
employment, and economic activity) within.
To compete, countries and regional political
districts offer incentives to MNCs such as
tax breaks, pledges of governmental
assistance or improved infrastructure, or
lax environmental and labour standards.
This process of becoming more attractive
to foreign investment can be characterized
as a race to the bottom.
Lick on Image
Source: NEC Corporation
Business Drivers
Also see
• Business Prophet - C.K.
Prahalad
• Insights and Opportunities:
Transforming Procurement
Capabilities in Asia
• Economic Value Added
Larger Image
Source: Metapraxis
Business Analysis
1. Benefits of Business Analysis
2. Roles of Business Analysts
3. Business Process
Improvement
4. Goal of Business Analysts
5. External Links
Also see
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Quantitative Methods
Strategic Business Analysis
Financial Statements
Quantitative Method
From Wikipedia, the free
encyclopedia
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Click on Image
Source: BizEd
Quantitative Methods
Quants Handbook
Lecture
Lecture
Lecture
Lecture
Lecture
Lecture
Lecture
Lecture
Lecture
Click on Image
Source: Brian C. McCarthy
Ohio University
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Functions & Economic Relationships
Economic Models/Linear Models
Basic Differential Calculus
Optimisation
Functions of Several Variables
Unconstrained Optimisation
Constrained Optimisation
Growth & Dynamics
Introduction to Difference Equations
Source: Bob Beachill
Leeds Metropolitan University
beach@thenet.co.uk
Strategic Business Analysis
SWOT Analysis
• PEST market analysis tool
• Porter's Five Forces Model
• Value Chain
• Managing Your Value Chain
• Resources and Capabilities
• Organisational Capabilities
• Financial Analysis
Larger Image
Click on Image
Source: Wikipedia
Financial Statements: The System
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Click on Images
Source: Investopedia.com
Financial Statements: Analysis
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Financial
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Financial
Statements:
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Statements:
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Introduction
Who's In Charge?
The System
Cash Flow
Earnings
Revenue
Working Capital
Long-Lived Assets
Long-Term Liabilities
Pension Plans
Conclusion
Printer friendly version (PDF format)
Source: Investopedia.com
Financial Ratios
A financial ratio is a ratio of two numbers of reported levels or flows of a company. It
may be two financial flows categories divided by each other (profit margin,
profit/revenue). It may be a level divided by a financial flow (price/earnings). It may be a
flow divided by a level (return on equity or earnings/equity). The numerator or
denominator may itself be a ratio (PEG ratio).
• Ratios
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Flow-to-flow
Level-to-level
Ratio-to-ratio
To cash flow
To earnings
To market cap
• See also
• External links
Larger Image
Download Financial
Ratio Analysis (177K)
for Microsoft Excel.
Source: Baarns
Consulting Group
Benchmarking
Benchmarking (also "best practice benchmarking" or "process benchmarking")
is a process used in management and particularly strategic management, in
which organizations evaluate various aspects of their processes in relation to
best practice, usually within their own sector.
This then allows organizations to develop plans on how to adopt such best
practice, usually with the aim of increasing some aspect of performance.
Benchmarking may be a one-off event, but is often treated as a continuous
process in which organizations continually seek to challenge their practices.
• Advantages of
benchmarking
• Competitive benchmarking
• Collaborative benchmarking
• Procedure
• Cost of benchmarking
• Benchmarking in financial
markets
• External links
Click on Image.
Larger Image.
Source: OEP
Competitive Position: Competitive Advantage
Literature Review
• Strategic Planning
• Competition
• What in the World is Competitive
Advantage?
• Competitive Postion:
Competitive Advantage
• What is Sustainable
Competitive Advantage
• Sustainable Competitive
Advantage
• Creating Business Value
Click on Image
Source: BRS
• Interest Alignment Rents and
Competitive Advantage
• Performance measures to
support competitive advantage
Click on Image
Source: businessballs.com
Competitive Position: Competitive Advantage
Literature Review
• Competitive strategy
• Michael Porter: Generic
Strategies
• Risk-related Challenges
Larger Image
Click on Image
Source: Vadim Kotelnikov, GIVIS, Ten3 East-West
Also see Annotated Lecture Outline
Strategic Capability: Core Competence
• Corporate Capabilities
• Core Competency
• Strategic Intent
• Innovation
• New Paradigm: Resource-Based
Theory
• Theory of Constraints
• Value Chain
• Organisational Culture
• Organisational Structure
• Economic Value Added
• Six Sigma
Larger Image
Click on Image
Source: Sumitomo Corporation
Strategic Planning
Strategic planning consists of the
process of developing strategies to
reach a defined objective. As we label a
piece of planning "strategic" we expect
it to operate on the grand scale and to
take in "the big picture" (in
contradistinction to "tactical" planning,
which by definition has to focus more
on the tactics of individual detailed
activities).
Click on Image
Source: Long Range Planning - International
Journal of Strategic Management
"Long range" planning typically projects
current activities and programs into a
revised view of the external world,
thereby describing results that will most
likely occur (whether the planner wants
them or not!)
Also See Introduction to Strategic Management
Strategic Planning
"Strategic" planning tries to "create"
more desirable future results by
(a) influencing the outside world or
(b) adapting current programs and
actions so as to have more
favorable outcomes in the external
environment.
Click on Image
Source:
learningworks@telus.net
Strategic Planning
• Methodologies
• Situation Analysis
• Identifying cultures
• Perspectives
• Ethnographical versus Clinical
approach
• Functionalistic versus Interpretionistic
approach
• Artifacts
• Visible artifacts
• Invisible artifacts
• Culture types
• Changing cultures and strategy
• Approaches
• Resistance
• Measurements
• Goals, objectives and targets
• Mission statements and vision statements
• Why strategic plans fail
• External links
Click on Image. Larger Image
Source: University of Cambridge,
Department of Engineering
Competitive Position: Competitive Advantage
Competition is the act of striving against another force for the purpose of
achieving dominance or attaining a reward or goal, or out of a biological
imperative such as survival. Competition is a term widely used in several fields,
including economics, business, politics, and sports. Competition may be between
two or more forces, life forms, agents, systems, individuals, or groups, depending
on the context in which the term is used.
• Sizes and levels of competition
• Consequences of competition
• Competition in different fields
• Economics and business
competition
• Competition in biology and
ecology
• Competition in politics
• Sports competition
• Competition in education
• The Study of competition
• Competitiveness
• Econometrics
• See also
Click on Image
Source:Brecker
Associates
Sustainable Competitive Advantage
• Owning Competitive Advantage
• Competition
• Hypercompetition
Larger Image
Click on Image
Source: Vadim Kotelnikov, GIVIS, Ten3 East-West
Sustainable Competitive Advantage
In marketing and strategic
management, sustainable
competitive advantage is an
advantage that one firm has relative
to competing firms. The source of the
advantage can be something the
company does that is distinctive and
difficult to replicate, also know as a
core competency, for example P&G'
ability to derive superior consumer
insights and implement them in
managing its brand portfolio.
Larger Image
Click on Image
Source: Infosys Consulting
Creating Business Value
Information technology facilitates new and more
efficient way of creating business value in the
new economy. As a result, instead of the
traditional vertically integrated value chains,
organizations must adopt business models
based on independent layers of value-creating
activities.
• Meltdown of the Value Chain
Impact of rising strength of emerging economies
on market expansion Role of emerging market
conditions on first mover advantages Sources of
first mover advantages in emerging markets
Strategies to sustain these advantages
• Complementing for Complexity: Leading
Through Managing The first mover in an
emerging market
Source: General Management Review
Competitive Strategy: Michael Porter
• Michael Porter: Generic Strategies
Larger Image
Click on Image
Source: www.tutor2u.net
Image by benchmarkporter.com
Strategic Capability: Core Competence
• Internal capabilities
• Corporate capabilities
• Resource-based view
• Capabilities in the new economy
• Synergy
• Patents
• Effective leadership
• Teamwork
• Continuous learning
• Tacit knowledge
Larger Image
Click on Image
Source: Vadim Kotelnikov, GIVIS,
Ten3 East-West
Core Competency
• Core Competency
• The Work of Hamel and Prahalad
• Sustainable competitive advantage
• Synergy
• The Competence Problem
• Principles and Functions of
Management - Henri Fayol
• Qualities of a Successful Manager
• The Motivation and Performance
Obsession
• Leadership and Management
• Managerial Competency
Questionnaire
Larger Image
Click on Image
Source: Forio Corporation
Strategic Intent
• Corporate Vision, Mission, Goals and
Strategies
• Your Enterprise Strategy
• Dynamic Business Strategy
• Strategy Innovation
• Marketing and Selling
• Strategic Thinking
• New-to-the-World Product
Development
• Managing Your Value Chain
• Strategy Implementation
Larger Image
Click on Image
Source: Vadim Kotelnikov, GIVIS, Ten3 East-West
Innovation
• Efficiency Improvement
• New ways of doing business
• New rapidly globalizing economy
• Technological innovation
• Technology Transfer
• Fast Company
• Reaching and servicing customers
• The Entrepreneur
• Innovation project management
• Roadmaps
• Guiding principles
• Business processes
Click on Image
Source: Vadim Kotelnikov, GIVIS, Ten3 East-West
New Paradigm: Resource-Based Theory
• Strategic Marketing and the Resource
Based View of the Firm
• Business Strategy
• Setting Objectives & Planning
• Customer Satisfaction
• Performance Management
• Performance Measurement
System
• Balanced Scorecard (BSC)
• Service-Profit Chain
• Sustainable Growth Strategies
• Porter's Five Forces Model for
Industry Analysis
• Economic Value Added (EVA)
• Business Architect
Click on Images
Source: Vadim Kotelnikov, GIVIS, Ten3
East-West
Theory of Constraints
Theory of Constraints (TOC) is a body of knowledge on the effective
management of (mainly business) organizations, as systems. The author is
Eliyahu M. Goldratt, with many others contributing to the body of knowledge.
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The Thinking Process (TP)
Throughput Accounting
Application-specific TOC
solutions
Operations
Supply Chain / Logistics
Finance and Accounting
Project Management
Marketing and Sales
The Six Necessary and
Sufficient Questions relating to
Technology
Development and practice
Also See
References
Larger Image
Click on Image
Source: Osaka Gakuin University
A Guide to Implementing the Theory of
Constraints (TOC)
Value Chain
Click on Image
Source: Vickers
Organisational Culture
Organizational culture comprises the attitudes, values, beliefs, norms and customs of an
organization. Whereas organizational structure is relatively easy to draw and describe,
organizational culture is considered to be less tangible and more difficult to measure. It is
also called Company Culture.
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Influences on organizational culture
Strong/Weak cultures
Classifying organizational culture
Hofstede
Deal and Kennedy
Charles Handy
Edgar Schein
Elements of culture
Critical Views on Organizational
Culture
• Figures in organizational culture
• See also
• Sources
Click on Image. Larger Image
Source: University of N. Carolina
Organisational Structure
Organizational structure is the way in which the interrelated groups of an
organization are constructed. The main concerns are effective communication
and coordination.
• Pre-bureaucratic
• Bureaucratic
• Functional Structure
• Divisional Structure
• Post-Bureaucratic
• Matrix organization
• Multi-Unit Organization
• Adhocracy
• See also
Click on Image. Larger Image
Source: © 2004-2006 Visitask
Economic Value Added
What Does Economic Value
Added Really Mean?
Click on Images for further
information
Source: David Harper, (Contributing
Editor - Investopedia Advisor)
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Six Sigma
Six Sigma was pioneered by Bill Smith at Motorola
in 1986[1]. Originally, it was defined[2] as a metric
for measuring defects and improving quality; and a
methodology to reduce defect levels below 3.4
Defects Per (one) Million Opportunities (DPMO). Six
Sigma is a registered service mark and trademark
of Motorola, Inc[3]. Motorola has reported over
US$17 billion savings[4] from Six Sigma to date.
AlliedSignal and GE became early adopters of Six
Sigma and reported benefits of over US$300 million
during its first year of application[5]. Their CEO's,
Larry Bossidy and Jack Welch, played a vital role in
popularizing Six Sigma. Other major organizations
who claim to have benefited from Six Sigma
implementation are Ford, Caterpillar, Microsoft,
Raytheon, Quest Diagnostics, Seagate Technology,
Siemens, Merrill Lynch, Lear, 3M and many more.
Click on Image
Source: KETCH.ca
Six Sigma
• Definition
• Application & Success
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Healthcare
Banking
Insurance
Construction
Military
• Methodology
• DMAIC
• DMADV
• Roles Required for Implementation
• Examples of Some Key Tools Used
• Criticisms of Six Sigma
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Of its origin
Of the term: Six Sigma
Of statistics
Of methods
Of effects
• References
• See also
• External links
Click on Image
Source: QCI International. All rights reserved.
Competitive Position - Competitive
Advantage 1/4
Lecture
Opening Remarks
It is useful to start the session by recapping on
the previous lecture and emphasizing the notion
of ‘strategy as imperfection’ or the quest for
‘unfair’ advantage. This lecture explores the idea
of competitive advantage in more detail and puts
some flesh on the bare bones of generic
strategies introduced in the preceding session.
The lecture focuses on the idea that strategy is
about the position of an organisation with respect
to its markets and competitors (the so called
market-based or positioning school) and looks at
the relationships between market structure,
pricing and strategy.
The Market Positioning School
A recap on the ‘generic strategies’ framework
introduced briefly in the last chapter and
restatement of the stuck in the middle hypothesis.
Larger Image
Click on Image
Source: Wikipedia
Competitive Position - Competitive
Advantage 2/4
The Nature and Source of Cost Advantage
A more detailed look at the nature and sources of cost advantage focussing on the links
between economies of scale, scope and learning and the achievement of cost advantage.
The Nature and Source of Differentiation Advantage
A more detailed look at the nature and source of differentiation advantage and the risks
associated with this strategy emphasising the difference between differentiation and cost
based strategies. Identifying the potential for differentiation.
The Concept of Competitive Advantage
A definition of competitive advantage and a description of its constituent elements. An
explanation of firm-specific imperfections as the source of competitive advantage and the
interrelationship between industry structure and competitive advantage.. This latter point
may be omitted from undergraduate lectures and developed in a tutorial context.
Figure 6.7. An explanation of the concept of sustainability and its determinants (on
undergraduate programmes this may be included a little later in the course)
Competitive Position - Competitive
Advantage 3/4
Three Major Routes to Competitive Advantage: Is it possible for a firm to
pursue more than one generic strategy?
A re-statement of the ‘stuck in the middle’ hypothesis and a summary of the reasons for
arguing that, in order to be successful, a firm should commit to a single strategy. The
critique of this position and the implications of composite strategies. The relationship
between generic strategies and market structure (this may be omitted on undergraduate
programmes).
On undergraduate programmes the following sections may form the basis of a second
lecture
Market Segmentation Analysis
The rationale for market segmentation analysis. The concept of offer curves and
price/quality trade-offs (this element may be omitted on undergraduate programmes). The
identification of segmentation variables.
Value Creation and Value Analysis
The concept of value and consumer surplus. The link between value, competitive strategy
and competitive advantage. Value maps could be included if time permits but can be
omitted without losing the main thrust of the argument.
Competitive Position - Competitive
Advantage 4/4
Strategic Group Analysis
An explanation of the concept of strategic groups
and rationale for this kind of analysis. Mapping
strategic groups over time and strategic groups in
practice.
Industry Transformation
Using the 5 forces framework to gain insight into
industry transformation. On undergraduate
programmes this may be omitted from the main
lecture and developed in tutorial sessions.
Business Models
This is an optional part of this session and may
be considered in a later slot.
An explanation of the terminology. The key
elements of a business model. Business models in
practice. Achieving a sustainable and defensible
strategic position.
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Source: Vadim Kotelnikov, GIVIS, Ten3
East-West
Strategic Capability: Core Competence 1/3
Lecture – a recap of prior concepts and the logic of the market-based view of the firm. A
discussion of the way this lecture fits with the overall framework of the strategy course.
SLIDE: Figure 1.6 A systemic model of strategy
The Resource-based View of the Firm- an explanation of the main tenets of the
resource-based view and the ways in which it differs from the market-based view.
SLIDE: The market-based versus the resource-based view of the firm.
The Language of Resources and Capabilities – a discussion of key terminology, for
example ‘capabilities’, ‘competences’, ‘strategic assets’ highlighting the fact that different
authors use different terms to refer to similar concepts.
SLIDE: Some key definitions
SLIDE: Core Competences = Distinctive Capabilities = Strategic Assets
The Importance of Intangibles – an explanation of what is meant by intangibles and why
they are considered to be of particular importance
SLIDE: Identifying Intangibles p. 263
Strategic Capability: Core Competence 2/3
Determining the Value of Competences – an explanation of the concepts of imitability,
durability, substitutability and appropriability.
SLIDE: Figure 7.5
Linking the Market-based and Resource-based Views – discussion of the ways in
which these two perspectives complement each other which draws on the notion of key
success factors. For undergraduates this could be the concluding slide.
SLIDE 7.10
SLIDE: Figure7.6
Strategic Capability: Core Competence 3/3
Competence-based Competition – an
introduction to the notions of strategic intent and
strategic innovation, emphasizing the role of
learning.
SLIDE: Figure 7.7
Competitive strategy in practice – some
prescriptive advice about managing the business
for value and positioning the business for growth.
More suited to postgraduate students with
management experience.
SLIDE: Figure 7.2
SLIDE: Figure 7.15
Concluding comments – a brief summary of the
key ideas highlighting of the fact that every firm is
different and that managerial processes,
information and communication together with
intangible assets and core competences are
central to developing and sustaining competitive
advantage.
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Source: SUNY Cobleskill