Session #9
Strategic
Management
Dr. Mark H. Mortensen
Sessions 001 and 270
Thursdays 6:00PM to 9:00PM
Fall 2008
(c) Copyright 2008 Mortensen Consulting Group LLC
1
Mortensen Consulting Group
You Will be Prepared for Today
If You:
Have read H&W Chapter 9
 Have read the Harley-Davidson case
study

Fall 2008
(c) Copyright 2008 Mortensen Consulting Group LLC
2
Mortensen Consulting Group
Today
6:00 Begin
Key Points from Last Week
Go over Midterm Exam
Lecture/Discussion on Chapter 9
7:30 BREAK
Harley-Davidson Case Study
Lecture/Discussion on Chapter 10
Introduction to Assignment #5
8:50 End
Fall 2008
(c) Copyright 2008 Mortensen Consulting Group LLC
3
Mortensen Consulting Group
Key Points from Last Week
Newbury Comics has a standard retail
business model, supplemented by a used
CD business
 Very targeted customer base
 They differentiate themselves through their
selection of merchandise, the people they
hire who are from the same group they
target, and their core competency of trying
out many, many experiments.

Fall 2008
(c) Copyright 2008 Mortensen Consulting Group LLC
4
Mortensen Consulting Group
Midterm Raw Test Results
It was planned to
be a 60 minute
test, but we gave
it 80 minutes.
Median Average
83%
84%
There were 25
questions, so each
counted for 4 points.
Number
Of
People
Receiving
Score
70
Midterm exam
counts for 15% of
the final grade.
80
90
100
Raw Score
Conclusion: Overall, a long, tough, but reasonably fair test
that should have had a full 90 minutes devoted to it.
Fall 2008
(c) Copyright 2008 Mortensen Consulting Group LLC
5
Mortensen Consulting Group
Midterm Raw Test Results
Midterm Grade Distribution by Question
Fraction in Error
60%
50%
40%
30%
20%
10%
0%
1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Question Number
Question #14 – Give two examples of Business Models. (Possible Answers:
Sell soft drinks, Rent advertising space on a web site, etc.)
Question #19 – Which strategy is most appropriate as a temporary strategy
to enable a corporation to consolidate its resources after prolonged rapid
growth in an industry now facing an uncertain future? (Answer:
Pause/Proceed with caution strategy.
Conclusion: A reasonable distribution for all of the questions except for #14
and #19, where over half of the class got them wrong.
Fall 2008
(c) Copyright 2008 Mortensen Consulting Group LLC
6
Mortensen Consulting Group
Midterm Test Grading Process
I believe that if over half the class gets a
question wrong, then the teaching was
inadequate
 The two questions account for 8 out of the
100 points
 I have added 4 points to each grade score
 Midterm to be counted as 15% of the
overall grade, as stated in the syllabus.

Fall 2008
(c) Copyright 2008 Mortensen Consulting Group LLC
7
Mortensen Consulting Group
H&W Chapter 9: Strategy
Implementation - Organizing for Action
What kind of programs? How to
implement?
 How does one decide on the budgets?
 What constitutes a good set of procedures
for doing the job? How do you implement
them?

The answers to these depend sensitively on where the company
is in its evolution, what the culture is in the company, and how it
is organized. Implementation of the strategy may also require
changes to these. THERE BE DRAGONS!
Fall 2008
(c) Copyright 2008 Mortensen Consulting Group LLC
8
Mortensen Consulting Group
Harley-Davidson Case Study
What was done to turn the company
around during the 1980s and 1990s?
 What were the major issues confronting
Harley Davidson in 2005?
 What are some options for them in the
future?

Fall 2008
(c) Copyright 2008 Mortensen Consulting Group LLC
9
Mortensen Consulting Group
H&W Chapter 10: Strategy
Implementation – Staffing & Directing
The kind of people a company hires,
invests in, and promotes depend on the
company’s strategy.
 Cultural differences matter in MNCs.
 There are some basic program types that
have proved themselves over the years.

You can benefit, personally, from change programs in your company.
Fall 2008
(c) Copyright 2008 Mortensen Consulting Group LLC
10
Mortensen Consulting Group
Assignment #5 (Toyota)
Due by:
6:00PM, Thursday, 6 November 2008
Prepare for group work in next class.
Fill out the Kiersey Temperament Sorter-II questionnaire found at
www.advisorteam.com (look at the upper right of the web page) and
print out your resulting personality type. The free report is sufficient.
Read the assigned Toyota Motors Case Study and prepare to work together
with your Group next week in class to answer the following questions
in 30 minutes. One member of the team will serve as spokesperson
and present to the class:




Fall 2008
What R&D strategy was Hiroshi Okuda following with the introduction of the
Prius?
Why did Toyota decide on the hybrid technology – was it a rational decision,
backed up by hard facts?
Given what has happened since, with the increased price of gasoline and the
increased sales of the Prius, but given it is 2008, was the strategy successful?
Describe the process that your group went through to make its decisions on the
above.
(c) Copyright 2008 Mortensen Consulting Group LLC
11
Mortensen Consulting Group
Reminder for Next Week
Read H&W Chapter 10
 Scan Chapter 11, if you have time
 Do Assignment #5 (Toyota Motors and
Temperament Sorter questionnaire)

Fall 2008
(c) Copyright 2008 Mortensen Consulting Group LLC
12