Structure & Strategy
Strategy Concepts
Strategic Value Adding
Strategic Architecture Design
Strategy Concepts
VISION
in 10, 20….. Years’ time
STRATEGIES
How to Achieve
the VISION over time
– leveraging the PUSH
and mitigating the WEIGHTS
PUSH
(Supportive forces)
WEIGHTS
(Holding Back forces)
Who, where & when ACTIONS
Strategy Concepts
Strategy Plan
VISION
Desired
Environment
Outcomes
Mission is the scope
of actions
Goals Over Time & Place
Activity Scope
Achievement KPIs
Targeted Outputs
Strategies
Who, where & when ACTIONS
Results in
Within scope
Measured by
Value Add
Strategic Foci / Questions
How to Increase &
Sustain Market
Shares?
PROFIT =
How to reduce
operating costs &
increase productivity?
Market Share
$ Efficiency
The more
people buy
the better
The cheaper
we produce
the better
SALES
-
Why people buy?
• Essential
• Unique
• Feel Good
• Good cause
COSTS
Why people buy?
• Best Price
• Value for Money
• More$ must be good stuff
• Pay more to save the world
How to create Value Add?
Value Chain
Value Adding
Gives Value Adds to:
1. Customers
2. Firm
3. Employees
4. Shareholders
5. Business Partners
6. Community at large
(Architecture) Types of International Strategies
Global Strategies
Standardized products/services
Common culture
Common processes
Centralised control
Multi-Domestic Strategies
Varying local products/services
Local culture
Local processes
Decentralised control
Regional Strategies
Transnational strategies

Are about mixing global & MD strategies by:
• Country grouping (regional)
• Or other strategic benefits -eg low
cost supply advantage (transnational)
Cost reduction pressures
Strategic Change Choices
GLOBAL STRATEGY
TRANSATIONAL
STRATEGY
INTERNATIONAL
STRATEGY
MULTI-DOMESTIC
STRATEGY
Local Responsiveness Pressures
International
Strategy Planning
Framework
chooses
(MGX 5181 Model)
Implementation
requires
Strategic Choices
Global   multi-domestic
strategies
Configuration & Integration
Structures & Means
How HQ coordinates & control other
locations
Actor
MNC
influences
Corporate & SBU level
strategy planning
Integrated in
Core competency
Development
has
Corporate Social
Responsibility
Corporate & Country programs
Good Governance Frameworks
supports
influences
supports
Country Level
strategy planning
Environmental scanning
Scenario planning
Modes of Entry & Ongoing Bus
International Value Chain
Configuration
Integrated in
Integrated in
Implementation Planning
Deployment Structure & Control
Deployed via
Discussion Qs
MNC (2.58 m) - https://www.youtube.com/watch?v=szH2g1dQdCM
1. In a world of zero transportation costs, no trade barriers * non
trivial differences between nations with regard to factor conditions,
firm must expand internationally if they are to survive - discuss
2. What do you see as the main organisational problems that are likely
to be associated with implementing a transnational strategy?
3. Describe what org architecture a transnational firm might adopt to
reduce the costs of control.
4. What is the most appropriate organisational architecture for a firm
that is competing in an industry where global strategy is
appropriate?
Case Study Qs
IBM 100 years history (13.2 min) https://www.youtube.com/watch?v=39jtNUGgmd4
1.
In the 1970s – 1980s, Palmisano states that IBM
was organised as classic MNC? What does this
mean? Why do you think IBM was organised that
way? What were the advantages of its
internationalisation?
2. By the 1990s, the classic multinational strategic
orientation was no longer working well for IBM.
Why?
3. What are the strategic advantages to IBM of its
global integrated enterprise strategy? What kind of
organisational changes do you think had to be made
at IBM to make this strategy work?
4. In terms of the strategic choice framework, what
strategy do you think IBM is pursuing today?