Strategy &
Organisation
LECTURE 1
Welcome
Tuesday – 17:15-19:00 – Lecture – Vincent Kunst
Wednesday – 11:00-12:45 – Tut. 01 – Rajani Bhaskarabhatla
Wednesday – 11:00-12:45 – Tut. 04 – Andreia Duque
Wednesday – 13:15-15:00 – Tut. 02 – Rajani Bhaskarabhatla
Wednesday – 13:15-15:00 – Tut. 05 – Andreia Duque
Wednesday – 15:15-17:00 – Tut. 03 – Rajani Bhaskarabhatla
Wednesday – 15:15-17:00 – Tut. 06 – Antonios Dragolias
Friday – 09:00-10:45 – Tut. 07 – Marko Kuzhman
Friday – 09:00-10:45 – Tut. 11 – Antonios Dragolias
Friday – 09:00-10:45 – Tut. 15 – Dara van Buiten
Friday – 11:00-12:45 – Tut. 08 – Andreia Duque
Friday – 11:00-12:45 – Tut. 12 – Antonios Dragolias
Friday – 11:00-12:45 – Tut. 16 – Marko Kuzhman
Friday – 13:15-15:00 – Tut. 09 – Akshita Chembolu
Friday – 13:15-15:00 – Tut. 13 – Egor Bronnikov
Friday – 13:15-15:00 – Tut. 17 – Marko Kuzhman
Friday – 15:15-17:00 – Tut. 10 – Akshita Chembolu
Friday – 15:15-17:00 – Tut. 14 – Egor Bronnikov
Friday – 15:15-17:00 – Tut. 18 – Vincent Kunst
Welcome
Tuesday – 17:15-19:00 – Lecture – Vincent Kunst
Friday – 09:00-10:45 – Tut. 01 – Rajani Bhaskarabhatla
Friday – 09:00-10:45 – Tut. 05 – Andreia Duque
Friday – 09:00-10:45 – Tut. 07 – Marko Kuzhman
Friday – 09:00-10:45 – Tut. 11 – Antonios Dragolias
Friday – 09:00-10:45 – Tut. 15 – Dara van Buiten
Friday – 11:00-12:45 – Tut. 02 – Rajani Bhaskarabhatla
Friday – 11:00-12:45 – Tut. 08 – Andreia Duque
Friday – 11:00-12:45 – Tut. 12 – Antonios Dragolias
Friday – 11:00-12:45 – Tut. 16 – Marko Kuzhman
Friday – 13:15-15:00 – Tut. 04 – Andreia Duque
Friday – 13:15-15:00 – Tut. 03 – Rajani Bhaskarabhatla
Friday – 13:15-15:00 – Tut. 09 – Akshita Chembolu
Friday – 13:15-15:00 – Tut. 13 – Egor Bronnikov
Friday – 13:15-15:00 – Tut. 17 – Marko Kuzhman
Friday – 13:15-15:00 – Tut. 06 – Antonios Dragolias
Friday – 15:15-17:00 – Tut. 10 – Akshita Chembolu
Friday – 15:15-17:00 – Tut. 14 – Egor Bronnikov
Friday – 15:15-17:00 – Tut. 18 – Vincent Kunst
Agenda for today

About the course

Questions

Introduction to Strategy
About the course
1.
Identify current theories of strategy, organizational economics and
organization theory, indicating their a priori assumptions, benefits,
and dangers;
2.
Understand the basics of firm-level behavior and large enterprises
in particular;
3.
Understand the basics of managerial and employee behavior
within organizations
4.
Develop practical recommendations on the ways in which
business performance can be enhanced through the application
of these theories.
About the course
WEEK
DATES
LECTURE
TUTORIAL
WEEK 01
25/04-29/04
Yes, introduction to the course & 1.
Introduction to strategy.
Yes, based on homework & lecture content
WEEK 02
02/05-06/05
Yes, 2. The environment & 3. Strategic
capabilities
Yes, based on homework & lecture content
WEEK 03
09/05-13/05
Yes, 4. Strategic purpose & 5. Business strategy
Yes, based on homework & lecture content
WEEK 04
16/05-20/05
Yes, 6. Corporate strategy & 7. M&As
Yes, based on homework & lecture content
WEEK 05
23/05-27/05
No
No
WEEK 06
30/05-03/06
Yes, 8. Behavioural theory & 9. Agency theory
Yes, feedback on draft group assignment
WEEK 07
06/06-10/06
Yes, 10. Transaction costs & 11. Motivation
concepts
Yes, based on homework & lecture content
WEEK 08
13/06-17/06
Yes, 12. Organizational structure & 13.
Organizational culture
Yes, based on lecture content
WEEK 09
20/06-24/06
No
Yes, exam revision
The deliverables

The exam (60%)

The group assignment (40%)

The homework (4/5 ability to participate in resit)
The deadlines
DELIVERY METHOD
DEADLINE DATE
CONTENT
PRINTED
TUTORIAL WEEK 1
HOMEWORK – W1
PRINTED
TUTORIAL WEEK 2
HOMEWORK – W2
VERBALLY
TUTORIAL WEEK 2
FIRM CHOICE
PRINTED
TUTORIAL WEEK 3
HOMEWORK – W3
PRINTED
TUTORIAL WEEK 4
HOMEWORK – W4
EMAILED
WEDNESDAY 25/05/2022
DRAFT GROUP ASSIGNMENT
PRINTED
TUTORIAL WEEK 7
HOMEWORK – W7
BLACKBOARD
MONDAY 20/06/2022
GROUP ASSIGNMENT
N/A
FRIDAY 01/07/2022
EXAM
The exam

60% of your grade

REMINDO in person

Mainly open questions/cases

1st of July
The group assignment

40% of your grade

Groups are made in the first tutorial (Friday)

DEADLINES

2nd tutorial: have firm and industry approved

Wednesday the 25th of May 2022: draft

Monday the 20st of June 2022: final submission
The group assignment

The goal of the assignment is to understand the position of a firm within a
particular industry, the current and future factors that might threaten the
position and profitability of the firm, the opportunities that the firm can exploit in
the near future, and the current strategy of the firm. On this basis, you will then
develop a set of alternative strategies that the firm can deploy.

Grading criteria


External analysis (25 points)

Internal analysis (25 points)

Current strategies (15 points)

Strategic alternatives and recommendations (25 points)

Overall quality of the report (10 points)
Plagiarism
The homework

Homework in weeks: 1,2,3,4, and 7

Questions based on cases in the book

Bring hardcopy of your answers to class and give to your tutor

4 out of 5 need to be acceptable for you to be allowed to do a resit

No excuses besides official ones, and even then…
The homework – week 1


the Glastonbury case (p. 25); please answer the following questions:

Sticking to the 35 word limit suggested by Collis and Rukstad in section 1.2.3, what strategy statement would
you propose for the Glastonbury Festival?

Using the headings of environment, strategic capability, strategic purpose and culture seen in section 1.3.1,
identify key positioning issues for the Glastonbury Festival and consider their relative importance.
The lego case (p. 29); please answer the following questions:

Look at the financial figures on page 29. What do you notice in terms of development?

What might be the effects of Lego being a family owned enterprise?

Why would Lego get an outside CEO?

Why is the transition to digital challenging for Lego?
The homework – week 2

the ‘global forces and the advertising industry’ case (p. 66). Please
answer the following questions:



Carry out a PESTEL analysis of the advertising industry in 2012, with
particular attention to megatrends, inflexion points and weak signals.
the ‘Vodafone’ case (p. 69). Please answer the following questions:

What are the competitive dynamics in emerging markets such as the
high-speed internet market?

Can models like the five-forces framework by Porter be applied to these
markets? Why so, or why not?

What are your recommendations to Vodafone in terms of strategy?
Please read the case study ‘Rocket Internet’ (p. 112).
The homework – week 3



The ‘drinking partners’ case (p.153); Please answer the following questions:

Consider the governance chain leading from the various shareholders of UBHL to the managers in
the main business, with particular reference to United Spirits. Why might there be breakdowns in
accountability and control in this chain?

Group the various key stakeholders discussed in this case (economic, social/political, community
and technological). What risks do key stakeholder groups face (including Diageo)?
The ‘Ikea approach’ case (p.186); Please answer the following questions:

Identify where (in its value network) and how IKEA has achieved cost leadership.

Identify how IKEA has achieved differentiation from its competitors.

Explain how IKEA tries to ensure that its ‘hybrid’ strategy remains sustainable and does not become
‘stuck-in-the-middle’.

What are the lessons from China about IKEA’s approach?
The ‘Ryanair’ case (p. 190); Please answer the following questions:

What are the VRIO resources of Ryanair?

Discuss why the Air Lingus deal might be a danger to Ryanair from a strategic perspective?

What might be the rationale behind the Air Lingus acquisition?
The homework – week 4


The ‘strategic development at Virgin 2013’ case (p.233); please answer
the following questions:

What directions of strategic development have been followed by Virgin
over the period of the case?

What is the corporate rationale for Virgin as a group of companies?

How does the Virgin Group as a corporate parent add value to its
businesses? To what extent are these parenting skills relevant to the various
business in the group?

What should the future corporate strategy be?
The ‘SABMiller’ case (p.238); please answer the following questions:

What is the main source of competitive advantage of SAB Miller?

What is the dominant logic used at SAB Miller?

Discuss the variety of strategic options available to SAB Miller and their
potential.
The homework – week 7



The ‘Netflix’ case (p.375); please answer the following questions:

What were the primary cost components driving Netflix’s strategy prior to 2010?

What are the dominant cost factors determining the success of Netflix today?

What are the key technological developments that caused the disruptive change in the firm’s business plan and strategy?

What are some of the primary barriers/hurdles that potential competitors are facing against Netflix?

Consider the chain of production and the delivery of downstream content? Which firms can exert pricing power along the
production and delivery process?
The ‘equity and executive pay’ case (p.408); please answer the following questions:

How does the executive compensation issue relate to equity theory? Who do you think should be the comparative others in these
equity judgements? How should we determine what is a “fair” level of pay for top executives?

If executive pay is related to the theory of extrinsic rewards, to what extend is it coercive? Define how stakeholders could measure
the worth of an executive.

Are there any positive motivational consequences of tying compensation pay closely to firm performance?
The ‘sleeping on the job’ case (p. 408); please answer the following questions:

If organizations introduced “nap rooms” or nap times, how would this factor into job satisfaction? Relate this to extrinsic factors of
job satisfaction and the motivation-hygiene theory.

How might reinforcement theory play a role in the extent to which employees are sleep-deprived?

How might sleep deprivation influence aspects of expectancy theory? How might the incorporation of “nap rooms” for sleepdeprived employees influence aspects of equity theory?

If you were a manager who noticed your employees were sleep-deprived, what steps might you take to help them? What theories
of motivation could you use to help them?
Glastonbury case
The lego case
Break
QUESTIONS VIA: POLLEV.COM/VINCENTKUNST412
Introduction to
strategy
CHAPTER 1
What is strategy
Word cloud
Pollev.com/vincentkunst412
What is strategy
στρατηγία = art of troop leader
‘the determination of the long-run goals and objectives of an
enterprise and the adoption of courses of action and the allocation of
resources necessary for carrying out these goals’(Chandler)
‘competitive strategy is about being different. It means deliberately
choosing a different set of activities to deliver a unique mix of value’
(Porter)
‘the long-term direction of an organisation’ (Exploring strategy)
Different streams of strategy
Strategy as war
Different streams of strategy
Strategy as planning

..the determination of the long-run goals and objectives of an
enterprise and the adoption of courses of action and the allocation
of resources necessary for carrying out these goals

Mainly relates to the strategic planning function of firms

Strategic plans should include different time horizons


Short term (Horizon 1), how do we defend and build our core business?

Medium term (Horizon 2), how do we build emerging businesses?

Long term (Horizon 3), how do we create new viable opportunities?
And different levels (corporate, business, operational)
Different streams of strategy

Strategy as differentiation

Strategy is about being different. It means deliberately choosing a
different set of activities to deliver a unique mix of value.

Copying industry leaders cannot lead to sustainable competitive
advantages…

Porter’s approach is rooted in industry analysis and requires that
firms make trade-offs
Strategy statements

What is it?

Contains the fundamental goals that the organisation seeks (mission,
vision, or objectives); the scope or domain of the organisations activities;
and the particular advantages or capabilities it has to deliver all of
these.

Mission (what business are we in?)

Vision (what do we want to achieve?)

Objectives (what do we have to achieve in the coming period?)

Scope (customers or clients; geographical location; extend of
internal activities)

Advantage (what is the competitive advantage of the firm)
Example: NS annual report 2016

“Our mission is to make sure passengers feel a connection with NS”
(MISSION)

“Our goal for 2019 is to pass the mid-term review by making
passengers, passengers and passengers our top priorities” (VISION &
advantage [?])

Objectives

Better performance on the main rail network, including HSL and the
associated international train services.

World-class stations.

Contributing to a better door-to-door journey.
CAN WE DO BETTER?