Strategy
Classic and Contemporary Views
722A22, 15 sc
2013
Fredrik TellPer Åman
1
Strategy
“Strategy is about achieving success….
- Goals that are consistent and long term
- Profound understanding of the competitive
environment
- Objective appraisal of resources
- Effective implementation”
Grant, 2013, p5
2
The contemporary
Globalization
Scale, scope, reach,
diversity, distance; costs,
competition
Dynamics
Pace, change, time,
process, Innovation;
product and process,
uncertainty
Knowledge, IPR,
expressiveness, meaning,
values
Intangibles
Ethics and sustainability
issues
Reputation, social
responsibility, green
3
Evolution of a canon
Market perspective
Resource perspective
Fast
Best
Big
1960
1970
1980
Beautiful
1990
2000
2010
4
The contemporary and the canon
The Big Wave – competing on volume
The Best Wave - competing on positions and
resources
The Fast wave – competing on speed
The Beauty wave – competing on aesthetic and symbolic value
5
The SCCV course
• The canon, the classics and the contemporary
• Group diversity
– Sprek, Ekonomprogrammet, One-year master, HRM&D Master,
and SMIO, Erasmus
– Mixed workgroups
• English as course language
– Exams, reports, lectures, seminars etc.
• Master’s level
• Previous knowledge differs.
• Different interests and expectations
• Literature and reflection
• Market and resource/ organizational views.
– Inside and outside the organization(s).
6
SCCV Course structure and content
- 2012
Big,
Forest
Fast
Business industry
Best
(continued)
game
case
& Fast
Test
Intro
Value
- concept
- creation
- capture
Product/market
Flows
matrix
Innovation
SWOT
Exploration/
Growth/share matrix exploitation
Generic strategies
Strategic groups
Value chain/system
Resource Based View
Ind.exam
Beauty
- structure slightly
Compressed the first weeks
Outro
changed
Forest industry
- B, B & F
Prius case
- paper assignment
Business game case week
- Test!
slightly revised.
- moved
extended
Dynamic capabilities
Knowlegde creation
Supply chains
Replication
Beautiful
Outro
Aesthetics
Brands
Management of meaning
Identity
CSR
• Other changes
– Literature. Article list revised.
– Examination structure slightly changed.
– Fewer assignments
7
SCCV Examination (preliminary)
• Written individual exam (40 %)
– ”Big, Best, and Fast”
• Paper (40 %) to be written in pairs
• Relating ”Beauty” to previous view(s) of competitive advantage.
• Seminar assignment in groups (20 %)
• Groups to be formed by the course management
• ”Test” (5 additional %)
– Not compulsory. Can not be retaken.
– You mast pass the ind.exam, Prius and paper in order to include it in your
total score.
– A ”bonus”.
• Other assignments – passed.
• Will be clearly indicated on the assignments.
• These will primarily be done in groups.
8
Welcome!
9
Course structure and content
- changes 2009
Individual
paper introduction
•
Fast
- compressed
Big & Best
Fast
Product/market
matrix
SWOT
Growth/share matrix
Generic strategies
Strategic groups
Value chain/system
Blue oceans
Business
Fast(continued)
game
Flows
Innovation
Exploration/
exploitation
Value creation
Value constellations
Value capture
Beautiful
- expanded
Business game
- minor changes
Beautiful
Supply chains
Replication
Resource Based View
Knowlegde creation
Dynamic capabilities
Outro
- more time for
individual paper.
Ind.exam
Intro
Intro
- revised in order
to provide a better
view of the course.
Outro
Aesthetics
Brands
Management of meaning
Identity
CSR
Other changes
– Fewer group assignments.
– Literature. One book + articles.
– Examination structure changed – more emphasis on individual performances (80/20)
10
BBFB
•
•
•
A narrative: the evolution of strategic management
Alternative sources of competitive advantage
Bases for integrated strategic management
11
The course in its context
•
A strategy profile – a combination of
–
–
Our course, and
Your choices
•
•
within the course
of next course + master thesis (20p) subject
Strategy
- CCV
Course
Master
Thesis
12
Strategy
- Classic and Contemporary Views
• Classic – the canon of strategy
–”Required” knowledge of concepts, models etc.
• Does not give any competitive advantage, more or less a standardised global
commodity.
• Contemporary
–Reflect contemporary practice.
• Resources, capabilities, processes and flows, projects, networks
• Aesthethics and identity as means of competitive advantage
–Reflexive regarding classic as well as contemporary.
• A possibility to achieve something beyond ’recieved/required’ knowledge.
• … and …
–It is not classic vs. contemporary views. It is classic and contemporary
views.
13
• 15 hp advanced course in English
• For students from:
• Sprek, Ekonomprogrammet, One-year-master,
Master in HRM&D (722A04), and
Strategy and Management in International Organizations
(SMIO), Exchange master students (722A22)
14
Aims and Objectives
• The aim of the course (,i.e. it’s learning outcomes) is to enhance
students’ capabilities to act and work in contemporary and future
organizations. A course ambition is to educate discerning consumers of
strategic thought, i.e. students able to reflect upon fads and fashions
and achievements of management research and writings.
• After the course the students will be expected to be able to:
– Reproduce central strategic concepts and ideas as well as the development
of the field of strategic management.
– Illustrate and explain differences and similarities between major ways of
strategic thinking.
– Be able to compare and relate thoughts and elements from different
schools of strategic thinking.
– Make use of models and concepts.
– Differentiate between and select appropriate theories and models for
different situations.
• In addition to this, the students will have gained experience of working
in culturally/ethnically/nationally diverse teams.
15
Course content
• The course is based on four complementary views of how
competitive advantage is created. These are based on
different ‘waves’ of strategic thinking since the late 60:ies.
Big - refers so size-related ´competitive advantages (ex. the BCG matrix).
Best - refers to positioning (ex. Porter’s 5 forces, strategic groups).
Fast - refers to speed of internal processes as well as speed regarding product/market
development and innovation. Resource Based Views are also handled here.
Beautiful - refers to aesthetic dimensions of value and competitive advantage
Fast
Best
4 complementary views of
Competitive
Advantage
Big
1970
1980
Beautiful
1990
2000
2010
16
Classic
and
• A-F-I
• S-C-P
• A Number of ”must-knows” (and
understand)
– Models (BCG, 5 forces etc.)
– Concepts (synergy, conglomerate
etc.)
Contemporary
• The classic views in their
contemporary context
• Aspects as
–
–
–
–
Innovation and change
Resource-based view
Dynamic capabilities
’Beauty’
• Significance and substance
• Obs! Classic does not mean
outdated.
– The ’early’ models and concepts
of strategy are still much in use.
• Big, Best, Fast, and Beautiful
– Our way of structuring the
course.
– Not to be conflated with
theories, models etc.
17
2009/2010/2011 courses
•
•
Changes 2009
– More ’beauty’, a little less ’fast’.
– Examination structure changed
(ind 80%, group 20%).
– Literature list revised.
•
Changes 2011
– Minor structural changes
– New assignments
– Course outline in a new fashion
Changes 2010
– Minor structural changes.
– New book (Grant).
• Literature list accordingly
revised.
– Paper written in pairs.
– Examination
• Individual exam on Big, Best,
and Fast sections after 6½
weeks.
• Paper assignment to examine
the beauty part.
18
The 2009/2010/2011 courses according to
course evalutations
• Content and structure – Good!
–
–
”Content was structured in a way that alllows a good analysis of today’s strategy scenario.” (722A22)
”The clear structure and the ”red line” through the whole course.” (722A04)
• Workload – Much, but not too much.
– A bit negative regarding parts of the literature.
• Much less ”small group” problems compared to earlier
years.
– Still some difficulties with different levels of ambition.
– Cf. Grants’ discussion on coordination and cooperation
• Too many ’small’ assignemnts
19
Course structure and content
- changes 2010
Intro
Value
- concept
- creation
- capture
Big & Best
Fast
Business
game
Product/market
Flows
matrix
Innovation
SWOT
Exploration/
Growth/share matrix exploitation
Generic strategies Value creation
Strategic groups
Value constellations
Value chain/system Value capture
Resource Based View
Business game Individual exam
- minor changes moved
Outro
- paper assignment
- On big, best, fast. revised.
Fast
(continued)
Ind.exam
Fast
- second part restructured
- RBV moved to Best
- A ’retrospective overview’
to sum up and introduce
Intro
- revised.
Dynamic capabilities
Knowlegde creation
Supply chains
Replication
Beautiful
Outro
Aesthetics
Brands
Management of meaning
Identity
CSR
• Other changes
– Literature. New book, article list revised.
– Examination structure slightly changed.
20
When, where
”big” groups
Brief description
Readings
21
The course consists of ’loosely coupled’
• Lectures
– L1-L13: To introduce topics and draw the thick lines.
– Guest lectures: To add other perspectives and views.
• Guest lectures are compulsory.
• Seminars
– For discussion and questioning
• Your presence is expected.
• Assignments and projects
– To practice and develop skills ..
– .. and for reflecting individually and in group
• You are expected to contribute and do your very best!
Obs! These are not decoupled!
22
Literature
• Book:
– Grant, Robert M. (2010)
Contemporary Strategy Analysis (7th.
ed.), Chichester: John Wiley & Sons Ltd.
Mainly for Big, Best and Fast.
• Articles and ’papers’
– According to the course’s
literature list.
– Articles will be available from
various library databases.
23
Guests confirmed
• Professor Robert M. Grant, Bocconi
– ”Resources, capabilities and knowledge
integration: applications to European
football."
• Håkan Dahllöf
– Former CEO of ”Toyota Material
Handling Europe” (previously known as
BT, Mjölby)
– Title: TBA
24
Examination ct.
• All attempts to cheat will be reported to the
disciplinary board.
– You are required to have knowledge about the rules!
• Link to ’Student examination guide’ on the course’s home page.
– Strict academic requirements for reference handling,
quoting etc are applied.
– You are jointly responsible for your groups’ works.
• Regarding groups,
– If youy run into problems, solve them!
25
Overview
• ”Time management” is up to you.
26
Welcome!
• Questions?
– Hans Andersson, 013- 282994,
hans.andersson@liu.se
– Fredrik Tell, 013- 282599, fredrik.tell@liu.se
27
28
Major changes last year (2009)
• Fewer group assignments, more individual focus
– Hopefuly without losing the benefits of groups.
• Individual paper introduced week 1
– Tool for learning and reflection
– May give a head start for thesis work (thesis proposal)
– A response to student comments
• More ’beauty’, a little less ’fast’.
• Examination structure changed (ind 80%, group 20%).
• Literature list revised (mostly regarding the
’contemporary’).
• Skipped the Barney book.
29
The 2011 course
• Some minor changes
– Some new seminar
assignments
– A few new articles
– Course outline
document and literature
list
• Dates/times/’wheres’
only in TimeEdit.
• Not changed
– The basic idea and
structure of the course.
– Course management
forms the small groups
• Maximum diversity
• Mixed groups required by
programme directors
– Examination structure
• 80/20
• Paper in pairs
30
Tomorrow
33
BL32
34
Course survey
35
Strategy – Classic and Contemporary
Views
• Classic – the canon of strategy
– ”Required” knowledge of concepts, models etc.
• Contemporary – more complexity
– Paradoxes
– Processual
– International
36
What is new, what is different?
• Based on experiences from former courses,
• International Business Strategy (10 points)
• Corporate strategy – structure and change (20
points)
• SCCV 2004, 2005, 2006
and some new ideas and changes,
we have designed a course
• that emhasises classic and contemporary views of
competitive advantage
37
Changes 2007
• New integrative group assignment on IKEA.
• More on the Resource Based View of strategy
• No business game (due to resource cutbacks)
• Worked well 2006
–
–
–
–
Introductory strategy process section
Two individual exams
No ‘big’ final case
Individual paper at the end
38
Aims and Objectives
• The aim of the course is to enhance students’ capabilities to act and work
in contemporary and future organizations. A course ambition is to
educate discerning consumers of strategic thought, i.e. students able to
reflect upon fads and fashions and achievements of management
research and writings.
• The students will be expected to:
– Reproduce central strategic concepts and thoughts as well as the
development of the field of strategic management.
– Illustrate and explain differences and similarities between major ways of
strategic thinking.
– Make use of models and concepts.
– Differentiate between and select appropriate theories and models for
different situations.
– Be able to compare, relate and synthesize thoughts and elements from
different schools of strategic thinking.
– Evaluate and make judgements about strategies and ideas on strategy .
39
Best
Fast
Outro
Big &
Beautiful
Intro
Course structure
40
Course content
• Main focus on one of three separate but
related dimensions of strategy - Content
– Process – an intense course start
– Context unavoidable – where it happens
• Loosely coupled series of
– Lectures
– Seminars
– Assignments and projects
41
Loosely coupled…
• Lectures
– To introduce topics and draw the thick lines
• Seminars
– For discussion and questioning
• Assignments and projects
– To practice and develop skills ..
– .. and for reflecting individually or in group
– not decoupled!
42
According to de Wit & Meyer ..
• “.. a learning situation must encourage students to
be critical, must challenge them to be analytical,
must force them to be mentally flexible and must
demand creativity and unconventional thinking.”
• “Students cannot be instructed to be strategists, but
must learn the art of strategy by thinking and acting
themselves – they must discuss, deliberate and do.”
43
Literature
• Course text book:
– de Wit, B. & Meyer, R. (2005) Strategy Syntehsis:
Resolving Strategy Paradoxess to Create Competitive
Advantage – Text and Readings (2:nd. ed)., London:
Thomson Learning [ISBN 1-86152-965-1]
• + Articles
– required
– recommended
– individual choice (for projects and assignments)
44
Prospects
• For students who want to act and work in, as
well as understand, contemporary companies
in their competitive contexts.
45
Prospects
• For students who want to act and work in, as well as
understand, contemporary companies, their contexts
and processes.
• Former student employers:
–
–
–
–
–
–
Accenture
Ericsson
Telecom NZ
Unilever
7-Eleven
SAS
46
The 2008 course according to course
evalutations
• Content and structure – Good!
– No major changes.
• Individual paper assignment introduced at the start.
• Workload – Much, but not too much.
– About the same
• Some group problems
– Hard to predict. We tried to handle it.
– Less focus on group assignments 2009.
47
48