CORPORATE STRATEGY: THEORIES AND APPROACHES

CORPORATE STRATEGY: THEORIES AND APPROACHES Dr. WEI JIANG PROFESSOR OF MANAGEMENT ZHEJIANG UNIVERSITY

ATTENTION ALL SYLABUS, PPT SILDES, READINGS AND CASES CAN BE DOWNLOAD IN http://www.weijiang.info

WHO AM I ? ——魏江简介 简要经历：1998/04 博士毕业留校 1999/12 破格晋升副教授 2001-2002 留学英国曼彻斯特大学和UMIST 2002/12 破格晋升教授 2003/12 增列博士生导师研究方向：企业战略管理、技术创新与管理教学领域：战略管理、管理沟通、管理技能开发工作背景：浙江省“新世纪151人才工程”第一层次国家教育部霍英东优秀教师奖获得者曼彻斯特大学PREST研究所客座研究员台湾东吴大学客座教授国家教育部“创新管理与持续竞争力”研究基地副主任浙江大学人力资源与发展战略研究中心副主任浙江大学企业组织与战略研究所所长

PREFACE: COURSE CONSTRUCTION

首届浙江省精品课程(人文社科类浙江大学共2门)首届浙江省精品课程(人文社科类浙江大学共2门) 教材《企业战略管理》列入高等学校经济管理专业本科核心课程教材国家教育部985学科建设项目课程建设基础浙江大学本科精品课程建设项目

0.1 Introduction Strategy management answers the fundamental economics question: Why the firm can gain the profit? or How to gain the above-average rent? Three Core Questions What can do? What should do? How do it?

0.2 Teaching Goal of Course • Integrating the management knowledge • Integrating the functional strategies • Integrating the internal & External • Focusing on the long-term perspectives • Designing the core competency and SCA • Cognizing and experimenting strategies • by integrating with the employee’s behaviors

0.3 Grading • Participation 10% • Case analysis 30% • Literature review 30% • Assignment 30%

0.3 ATTENTIONS • Case analysis • ——Times: 3 per group (Chinese cases) • ——Preparation after class • ——PPT for presentation • ——Every member one time • ——Interviewees: Prof. and students • ——Presenter not allowed to answer questions • Assignment • CASE STUDY FOR ONE INSTITUTE OR FIRM

0.5 REFERENCES • 魏江主编企业战略管理：理念、方法和案例，浙江 • 大学出版社，2003年9月。 • WEI JIANG, EDS. COLLECTIONS OF CLASSICAL • LIERATURES IN STRATEGIC MANAGEMENT. 2006 • Arthur A. Thompson, Jr. A. J. Strickland III , 1998. Strategic • Management: Concepts and Cases. 10th Ed., McGraw-Hill. • Johnson G. and Scholes K. 1999. Exploring Corporate • Strategy: Text and Cases. 5th edition. Prentice Hall. • Johnson, G., K., Scholes, 金占明，贾秀梅译，1998. • 公司战略教程，华夏出版社。

PART 1 INTRODUCTION Charpter 1 Defining Strategic management

WHAT IS STRATEGY?

比较优势？ 竞争优势？国内一流？国际一流？国内比较对象国际比较对象什么是一流？学校使命组织活动学生培养科学研究社会服务什么学生？什么领域？什么服务？什么地方一流？稀缺人才开发体制机制改革战略环境匹配国际级教师队伍国际级科研人才高校社会相结合教学人才培养科研人才培养创业型人才培养如何实现一流？谁来评价一流？各方价值期望全方位评价机制学生企业社会国家学生需要什么企业需要什么社会需要什么国家需要什么到2017年把浙江大学建设成为世界一流的大学

Concept of Strategy Strategy is the direction and scope of an organization over the long term: which achieves advantage for the organization through its configuration of resources within a changing environment, to meet the needs of markets and to fulfill stakeholder expectations.

Direction Competitive advantage Expectation Characteristics of Strategy Resources Activity Scope Environment

战略管理，还是盲人摸象? 权力学派——“当心第一” 文化学派——“苹果掉下来的地方从不会离树太远” 设计学派——“三思而后行” 计划学派——“及时处理，事半功倍” 定位学派——“让事实说话” 企业家学派——“带我们见你的头” 认识学派——“一旦我相信了就会看到” 学习学派——“失败了，再来” 环境学派——“要看情况而定” 结构学派——“任何事情都有个季候……”

十大流派之间关系： PAST NOW FUTURE 学习学派认知学派创新学派设计学派计划学派文化学派、企业家学派、创业学派方法论：加强方法论训练、认知强化

战略管理基本命题： ——为什么成功？为什么失败？ ——成功的主要因素？ ——如何走向成功？跨国公司理论 ——海默、小岛清的动态能力 ——john dunnings OLI范式(ownership-location-internalization ——John Mathews LLL范式(linkage—leverage—Learning)

The overall purpose and scope of Organization to meet the expectations of Owners or major stakeholder Level 1 Corporate strategy Business unit strategy Level 2 How to compete successfully in a particular market How the component parts of the organization in terms of resources, processes, people, and their skills effectively deliver the corporate – and SBU strategy direction Operational strategy Level 3 Levels of Strategy

Mission Vision Goals Objectives Core competence Strategy Architecture controls The vocabulary of strategy A general expression of the overall purpose of the organization Strategic intent, the desired future state of the organization A general aim in line with the mission Aim that likely be quantified or more precise Skills and know-how which distinguish it from competitors Direction and scope Combination of processes, resources and competency To monitor the extent to which the action is achieving the objectives and goals

HOW THE STRATEGY COMES TO THE PRACTICES?

1.4 Some practical issues of SM • Strategy differences between MNCs, large and SMEs • Dynamic balance between firm’s resources and scope • Dynamics between diversification and risk-controlling • Restructuring of governance in family companies • Headquarters and subsidiaries controlling systems • Boundary: Localization, regionalization and internalization • …...

Discussion Design school: Strategy as a process of conception Planning school: Strategy formation as a formal process Whether the strategy can be designed and planned because of the uncertainty and bounded rational? Is it possible to format the five-year-plan or ten-year-plan?

What is the nature of strategic management?

1.5 Nature of strategic management Strategy is the balance between certainty and uncertainty ——What is/are certainty？ ——What is/are uncertainty？ Strategy is the art to grasp the changing environment ——Contingency “经”与“权”/ “以不变应万变” ——Learning and learning how to learn Strategy is an evolutionary process ——Short-term, middle-term and long-term strategy ——Dynamics and flexibility

1.5 Nature of strategic management Strategy management answers the fundamental economics question: Why the firm can gain the return? or How to gain the above-average rent? Three Core Questions What can do? What to do? How to do?

Chapter 2 Framing Strategic Management

outline • Objectives • Prerequisites of systemizing strategic management • Framework of building strategic management • Analysis of processing strategic management

Core competence • SCA Building • Coopetition How to do Why to gain the above-average rent Unique mission and businesses • Special mission • mission & vision • business portfolio What to do • Environment analysis • Internal • External What can do 2.1 Prerequisites of systemizing strategic management

Part 1Overview of strategic management Practice and development Nature and fundamental Framework and concept Part 2：Business portfolio & development Environment analysisMission and goal Business choice and development Part 3：Competitive advantage SourcesGeneral strategies Sustainable SACoompetition Part 4：Implementing strategy Evaluation, Optimization, Organization, Implementation 2.2 Framework of building strategic management

What is the process of strategic management?

2.3 Processing the strategic management Implementing Strategy Making Evaluating & Controlling —Distinguishing the current situation：符合实际、相互协同 —Acting the policies and activities: 上下同欲、积极投入 —Evaluating and controlling the results：动态调整、灵活适用

Blueprints Making strategy vision Business scope mission philosophy value performance Goal & objectives outlines Options and portfolio Implementing activities Implementation 2.3 Processing the strategic management

Chapter 3 Mission and vision

outline • Fundamentals of business choice • Philosophies of value-oriented • Description of strategic goal • Description of mission

Making strategy vision mission value Goal & objectives Options and portfolio Implementing Implementation Blueprints Business scope philosophy performance outlines activities

DESCRIPTION OF MISSION CASE: TELECOM. FACILITIES MANUFACTURER

愿景使命 价值观建立世界级通信产品研发和生产基地，致力于向中国移动通信运营商和消费者提供富有竞争力的产品和网络解决方案，并成为中国移动通信运营商优选业务合作伙伴提升在中国提供移动通信产品和网络解决方案领航地位 • 务实创新 • 团队合作 • 以人为本 • 追求卓越战略目标优化业务投资组合加强产品研发能力降低营运成本与费用健全销售网络加强市场渗透增强员工技能加强团队精神建立客户关系管理系统、知识管理和电子商务加强政府关系管理提升与 XX公司之间的关系投资收益率 • 产品上 • 市时间 • 研发投 • 入强度 • 新品 • 产值率 • 制造 • 成本 • 管理 • 费用占 • 总收入 • 比例 • 营运收入 • 利润 • 市场份额 • 品牌知晓率 • 销售费用 • 应收帐款 • 周转率 • 员工 • 流动率 • 员工 • 满意度 • 客户满 • 意度 • 内容贡 • 献 • 电子商 • 务收入组织及协办政府活动的次数 • 制造 • 成本 • 管理 • 费用占 • 总收入 • 的比例关键绩效指标

3.1 Fundamentals of business choice Discussion 1 What is/are the ultimate factors to determine the business? 2 What is/are the roots to gain the competitive advantage? 3 Why the users/customers need your products/services? 4 Why one is successful and another is failure though they produce the same goods?

3.1 Fundamentals of business choice • Customer-oriented philosophies — To give what I need (已所欲，施于人） — Not to give what I do not need (己所不欲，勿施于人） — To give what you need. (人所欲，施于人） — To give what I need (已所欲，施于人） • CHECKLISTS：（1）What do the customers need？ • （2）What can I do for the costumers？

Customer-oriented Philosophies • Value component analysis Quality, Service, Cost, Speed, Novelty • Servicing for customer Present and latent • Appraising of customer Recommendation and Re-purchase

Customer satisfaction Stockholder satisfaction Four satisfaction Employee’s satisfaction Society satisfaction Nature of Firm's Survival

3.2 Firm's Mission • Defining the organizational direction and scope • Coordinating the organizations’ purposes • Integrating internal & external resources (A general rationale for allocating organizational resources).

Goal Technology Concern for survival, growth and profitability Internal Philosophy Self-concept Public image Concern for employees Description External Linkage Customer Product/ service Market

Description of Mission: Huawei as a Case 第一条[追求]华为的追求是在电子信息领域实现顾客的梦想，并依靠点点滴滴、锲而不舍的艰苦追求，使我们成为世界级领先企业。为了使华为成为世界一流的设备供应商，我们将永不进入信息服务业。通过无依赖的市场压力传递，使内部机制永远处于激活状态。第二条[员工]认真负责和管理有效的员工是华为最大的财富。尊重知识、尊重个性和不迁就有功的员工，是我们事业可持续成长的内在要求。第三条[技术]广泛吸收世界电子信息领域的最新研究成果，虚心向国内外优秀企业学习，在独立自主的基础上，开放合作地发展领先的核心技术体系，用我们卓越的产品自立于世界通信列强之林。第四条[精神]爱祖国、爱人民、爱事业和爱生活的我们凝聚力的源泉。责任意识、创新精神和团结合作精神是我们企业文化的精髓。实事求是是我们的行为准则。

Description of Mission: Huawei as a Case 第五条[利益]华为主张在顾客、员工与合作者之间结成利益共同体。努力探索按生产要素分配的内部动力机制。我们决不让雷锋吃亏，奉献者定当得到合理回报。第六条[文化]资源是会枯竭的，唯文化生生不息。一切工业产品都是人类智慧创造的。华为没有可以依存的自然资源，唯有在人的头脑中挖掘出大油田、大森林、大煤矿……。精神是可以转化为物质的，物质文明有利于巩固精神文明。我们坚持以精神文明促进物质文明的方针。这里的文化，不仅仅包含知识、技术、管理、情操 ……，也包含了一切促进生产力发展的无形因素。第七条[社会责任]华为以产业报国和科教兴国为己任，为公司的发展为社区作出贡献。为伟大祖国的繁荣昌盛，为中华民族的振兴，为自己和家人的幸福而不懈努力。 ——摘自：华为公司“基本法”

Examples of Business Definition Polaroid Perfecting and marketing instant photography to satisfy the needs of more affluent U.S. and West European families for affection, friendship, fond memories, and humor MCDONALD’S Serving a limited menu of hot, tasty food quickly in a clean, friendly restaurant for a good value to a broad base of fast-food customers worldwide

3.3 Description of Goal Discussion Productivity improvement is the goal? Marketing share is the goal？ What the goal is?

Goal When? What? How much? 战略? What? How? and Who? Road

3.3 Description of Goal The goal is the Finance terms: such as the desired sales, profit, rate of growth, dividend levels or share valuations. • Three critical indicators: ----Net profit ----ROI ----Cash flow

CORPORATE STRATEGY: THEORIES AND APPROACHES