Strategy Classic and Contemporary Views 722A22, 15 sc 2013

1. StrategyClassic and Contemporary Views722A22, 15 sc2013 Fredrik Tell Per Åman

2. 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

3. The contemporary Globalization Scale, scope, reach, diversity, distance; costs, competition Dynamics Pace, change, time, process, Innovation; product and process, uncertainty Intangibles Knowledge, IPR, expressiveness, meaning, values Ethics and sustainability issues Reputation, social responsibility, green

4. Evolution of a canon Market perspective Resource perspective Fast Best Big Beautiful 1960 1970 1980 2010 1990 2000

5. 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

6. 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 courselanguage • Exams, reports, lectures, seminars etc. • Master’slevel • Previousknowledgediffers. • Different interests and expectations • Literature and reflection • Market and resource/ organizationalviews. • Inside and outside the organization(s).

7. SCCV Course structure and content- 2012 Beauty- structure slightly changed Compressed the first weeks- B, B & F - Test! Outro- paper assignment slightly revised. Forest industrycase week Prius case extended Business game- moved Value - concept- creation - capture Forestindustrycase Fast(continued) Beautiful Big, Best & Fast Businessgame Outro Test Ind.exam Intro Aesthetics Brands Management of meaning Identity CSR Dynamic capabilities Knowlegde creation Supply chains Replication Product/market matrix SWOTGrowth/share matrix Generic strategies Strategic groups Value chain/system Resource Based View Flows Innovation Exploration/ exploitation • Other changes • Literature. Article list revised. • Examination structure slightly changed. • Fewer assignments

8. 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.

9. Welcome!

10. Course structure and content- changes 2009 Beautiful- expanded Intro - revised in order to provide a better view of the course. Business game- minor changes Fast- compressed Outro- more time for individual paper. Businessgame Fast(continued) Beautiful Big & Best Fast Outro Intro Ind.exam Aesthetics Brands Management of meaning Identity CSR Supply chains Replication Resource Based View Knowlegde creation Dynamic capabilities Product/market matrix SWOTGrowth/share matrix Generic strategies Strategic groups Value chain/system Blue oceans Flows Innovation Exploration/ exploitation Value creation Value constellations Value capture Individualpaper intro-duction • Other changes • Fewer group assignments. • Literature. One book + articles. • Examination structure changed – more emphasis on individual performances (80/20)

11. BBFB A narrative: the evolution of strategic management Alternative sources of competitive advantage Bases for integrated strategic management

12. The course in its context Strategy- CCV Course Master Thesis • A strategy profile – a combination of • Our course, and • Your choices • within the course • of next course + master thesis (20p) subject

13. 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.

14. 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)

15. Aims and Objectives Requirements for ’Passed’! • 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.

16. 4 complemen-taryviews of CompetitiveAdvantage Course content 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 Big Beautiful 1970 1980 2010 1990 2000 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.

17. Classic and Contemporary • A-F-I • S-C-P • A Number of ”must-knows” (and understand) • Models (BCG, 5 forces etc.) • Concepts (synergy, conglomerate etc.) • Obs! Classic does not mean outdated. • The ’early’ models and concepts of strategy are still much in use. • The classic views in their contemporary context • Aspects as • Innovation and change • Resource-based view • Dynamic capabilities • ’Beauty’ • Significance and substance • Big, Best, Fast, and Beautiful • Our way of structuring the course. • Not to be conflated with theories, models etc.

18. 2009/2010/2011 courses • Changes 2009 • More ’beauty’, a little less ’fast’. • Examination structure changed (ind 80%, group 20%). • Literature list revised. • 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. • Changes 2011 • Minor structural changes • New assignments • Course outline in a new fashion

19. 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

20. Course structure and content- changes 2010 Fast- second part restructured - RBV moved to Best - A ’retrospective overview’ to sum up and introduce Intro - revised. Business game- minor changes Individual exammoved - On big, best, fast. Outro- paper assignment revised. Value - concept- creation - capture Businessgame Fast (continued) Beautiful Big & Best Fast Outro Ind.exam Intro Aesthetics Brands Management of meaning Identity CSR Dynamic capabilities Knowlegde creation Supply chains Replication Product/market matrix SWOTGrowth/share matrix Generic strategies Strategic groups Value chain/system Resource Based View Flows Innovation Exploration/ exploitation Value creation Value constellations Value capture • Other changes • Literature. New book, article list revised. • Examination structure slightly changed.

21. When, where ”big” groups Readings Brief description

22. 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! The course consists of ’loosely coupled’ Obs! These are not decoupled!

23. 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.

24. 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 Guests confirmed

25. 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!

26. Overview ”Time management” is up to you.

27. Welcome! • Questions? • Hans Andersson, 013- 282994, hans.andersson@liu.se • Fredrik Tell, 013- 282599, fredrik.tell@liu.se

29. 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.

30. 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

31. Tomorrow

32. BL32

33. Course survey

34. Strategy – Classic and Contemporary Views • Classic – the canon of strategy • ”Required” knowledge of concepts, models etc. • Contemporary – more complexity • Paradoxes • Processual • International

35. 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

36. 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

37. 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 .

38. Beautiful Outro Course structure Big & Best Fast Intro

39. 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

40. 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 Loosely coupled… – not decoupled!

41. 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.”

42. 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)

43. Prospects For students who want to act and work in, as well as understand, contemporary companies in their competitive contexts.

44. 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

45. 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.