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BUSINESS STRATEGY. Dev Joshi w/ Management Society. Disclaimer. Objectives. Tips Examples to use in essays Cover TWO Business Strategy extra readings. TIPS. Tips. Colin’s course is comprehensive and he does what he says not out to trick you
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BUSINESS STRATEGY Dev Joshi w/ Management Society
Objectives • Tips • Examples to use in essays • Cover TWO Business Strategy extra readings
Tips • Colin’s course is comprehensive and he does what he says not out to trick you • Listen for hints/tips/areas that may come up in the exam • Plan the essay CLEARLY, with examples • Intro, middle and conclusion • Prepare examples and cases, not just theory • Draw diagrams/models if it adds to your answer
READING 1:Porter, E. (1996) What is Strategy? Subtitles found in the article: • Operational Effectiveness is not Strategy • Strategy rests on Unique Activities • Sustainable Strategic Position requires trade-off • Fit drives both Competitive Advantage and Sustainability • Rediscovering Strategy Great examples, particularly Southwest Airlines and their business model
Where to Find them? In order of importance: • Colin’s lectures • any company he has mentioned in his lectures • any sector he has hinted at NOTE:Past paper qns have inc. Sectors e.g. tech or pharma, specific companies such as Apple and Google • Read the FT • Other modules such as OBHRM and ISIH
FT • See word documents for summaries/extracts from FT for examples of companies that highlight various parts of the course made by Group Project Group • Read the FT if you can
The New GM: A Report Card • http://money.cnn.com/2011/08/24/news/companies/gm_report_card.fortune/index.htm • New CEO – Dan Akerson return GM to largest automaker • ‘Frozen middle’ middle mgt layer. So removed the old matrix mgt. System to get closer to car model decisions (strategic change and corporate failure) • Fresh thinking Ikea kitted offices rather than designer • Greater autonomy to section heads • Change in strategy from old trucks
How Apple works: Inside the World’s Biggest Startup • http://tech.fortune.cnn.com/2011/08/25/how-apple-works-inside-the-worlds-biggest-startup/ • Top-down management style and leadership Top 100 (Apple elite) • Good vertical communication • Great team coordination ‘command-and-control structure’ where ideas are shared at the top. ‘Sony had too many divisions to create the iPod’ • Vision, mission, culture, etc • Sustainability focus on institutionalising his way of doing business
READING 2:Beer and Eisenstat (2000) The silent killers of strategy implementation and learning • Look at the diagram simplifies understanding • Links to both Apple and GM article
Why MCDonalD’s Wins in Any Economy • http://management.fortune.cnn.com/2011/08/23/why-mcdonalds-wins-in-any-economy/ • Satisfying customers, even at expense of self • Tight management team, backing them even if he didn’t always agree with them • Changed strategy to increasing sales at existing stores rather than opening new ones • Sustainability leadership institute (Hamburger U) and culture that ‘good no.2s don’t usurp bosses authority’ but each executive trains at least 2 successors
WHAT MAKES PEPSI GREAT? • http://money.cnn.com/2008/02/18/news/companies/morris_nooyi.fortune/index.htm • Leadership change direction of company • Strategy change • Five Forces competitors (Coke), suppliers, buying out substitutes (Naked Juice and Vitamin Water) • SWOT analysis potential
Wal-Mart’s Midlife Crisis • http://www.businessweek.com/stories/2007-04-29/wal-marts-midlife-crisis • Long article • Needs-based positioning gone wrong • Incorrectly stratified the market • Bad reputation of stores and treating staff (CSR?) • Compare with Tesco model
Thanks • Mahi Gill, Krishan Patel, Miraj Patel, Abbas Dewji and Namrata Gandhi for their contributions of cases • Namrata Malhotra, OB-HRM lecturer 2011/12 for a great course
Questions? • dj408@ic.ac.uk • Good luck for upcoming assignments/exams • See you next term for more :D