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Strategy Classic and Contemporary Views

722A22, 15 sc2013

Fredrik Tell Per Åman

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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

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The contemporary

Globalization

Dynamics

Intangibles

Ethics and sustainability issues

Scale, scope, reach, diversity, distance; costs, competition

Pace, change, time, process, Innovation; product and process, uncertaintyKnowledge, IPR, expressiveness, meaning, values

Reputation, social responsibility, green

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Evolution of a canon

1970 1980 1990 2000 20101960

Big

BestFast

Beautiful

Market perspective

Resource perspective

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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

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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).

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SCCV Course structure and content- 2012

• Other changes– Literature. Article list revised. – Examination structure slightly changed.– Fewer assignments

Big, Best & Fast In

d.ex

am

OutroBusinessgame In

tro Fast

(continued) Beautiful Forest

industrycase

Product/market matrixSWOTGrowth/share matrixGeneric strategiesStrategic groupsValue chain/systemResource Based View

FlowsInnovationExploration/ exploitation

Dynamic capabilities Knowlegde creationSupply chainsReplication

AestheticsBrandsManagement of meaningIdentityCSR

Compressed the first weeks- B, B & F- Test! Business game

- moved

Outro- paper assignment slightly revised.Value

- concept- creation- capture

Test

Forest industrycase week Prius case

extended

Beauty- structure slightly changed

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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.

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Welcome!

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Course structure and content- changes 2009

• Other changes– Fewer group assignments.– Literature. One book + articles. – Examination structure changed – more emphasis on individual performances (80/20)

Big & Best

Ind.

exam

OutroFast

Intr

o

Fast(continued) Beautiful Businessgame

Product/market matrixSWOTGrowth/share matrixGeneric strategiesStrategic groupsValue chain/systemBlue oceans

FlowsInnovationExploration/ exploitationValue creationValue constellationsValue capture

Supply chainsReplicationResource Based ViewKnowlegde creationDynamic capabilities

AestheticsBrandsManagement of meaningIdentityCSR

Intro - revised in order to provide a better view of the course.

Fast- compressed

Business game- minor changes

Beautiful- expanded

Outro- more time for individual paper.

Individualpaper intro-duction

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BBFB

• A narrative: the evolution of strategic management• Alternative sources of competitive advantage• Bases for integrated strategic management

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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

MasterThesis

Course

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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.

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• 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)

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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.

Requirements for

’Passed’!

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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

4 complemen-tary views of CompetitiveAdvantage

Big

BestFast

1970 1980 1990 2000 2010Beautiful

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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.

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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

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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

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Course structure and content- changes 2010

• Other changes– Literature. New book, article list revised. – Examination structure slightly changed.

Big & Best

Ind.

exam

OutroFast

Intr

o Fast (continued) Beautiful Business

game

Product/market matrixSWOTGrowth/share matrixGeneric strategiesStrategic groupsValue chain/systemResource Based View

FlowsInnovationExploration/ exploitationValue creationValue constellationsValue capture

Dynamic capabilities Knowlegde creationSupply chainsReplication

AestheticsBrandsManagement of meaningIdentityCSR

Intro - revised.

Fast- second part restructured- RBV moved to Best- A ’retrospective overview’ to sum up and introduce

Business game- minor changes

Individual exammoved- On big, best, fast.

Outro- paper assignment revised.Value

- concept- creation- capture

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Brief description Readings

”big” groups

When, where

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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!

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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.

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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

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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!

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Overview

• ”Time management” is up to you.

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Welcome!

• Questions?– Hans Andersson, 013- 282994,

hans.andersson@liu.se– Fredrik Tell, 013- 282599, fredrik.tell@liu.se

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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.

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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

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Tomorrow

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BL32

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Course survey

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Strategy – Classic and Contemporary Views

• Classic – the canon of strategy– ”Required” knowledge of concepts, models etc.

• Contemporary – more complexity– Paradoxes– Processual– International

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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

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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

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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 .

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Course structure

Ou

tro

FastBig & Best

Bea

uti

ful

Intr

o

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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

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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!

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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.”

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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)

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Prospects

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

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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

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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.

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