SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Welcome toBusiness Strategy and Policy

John A. Hengeveld

week 1

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Introduction and Logistics

• Class Syllabus and Schedule Review

• Case Writeup and Presentation Criteria

• Strategy and its Role in Companies

• Breaking into teams

• Some review of basic strategy concepts

• Any questions??

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Class Syllabus & Schedule Review

• See schedule attached to syllabus

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Course Goals – restated

• To create strategy to compete and win.• To successfully implement strategic change

through appropriate use of policy and process.• To be able to critically judge new management

insight as the next best thing rolls into town.• To be able to apply all of this to cases in distinct

industries and competitive situations.

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Management by Best Seller

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Case Writeup Criteria• Picture yourself a consultant:

– Written report with recommendation and backup detail and analysis.

– Except: Don’t be afraid to critique past actions which led to the current situation.

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Written Grading standard:

– Organization of report 15%– Writing “correctness” 10%– Goes Beyond the Obvious 10% “depth”– Recommendation:

• Aptness: 20%• Persuasion: 15%

– Analysis:• Business Situation Analysis: 10%• Identification/Justification Criteria for decision 10%• Analysis of Alternatives and

Rationale for recommendation: 10%

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Case Presentation Criteria

• Clearly demonstrate an understanding of the issues of the case and the business situation facing the key figures – 30%

• Make a clear prescription or recommendation which addresses the real problems. – 30%

• Defend your position against questions – 30%• Style (professional quality, well presented, keeps

the class awake) – 10%

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Breaking into Teams

• Introduce yourself very briefly– Name– Academic Focus and Skill areas– Specific interests

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Some very quick Review..

• If its not review for you… slow me down

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

The Porter Value Chain

Firm InfrastructureHuman Resource Management

Technology Development

Procurement

SupportActivities

Primary Activities

InboundLogistics

Operations OutboundLogistics

Marketing& Sales

Service

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Types of Resources• Tangible

– Financial– Physical

• Intangible– Technology– Reputation– Culture

• Human– Specialized Skills and Knowledge– Communication and Interactive abilities– Motivation

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Appraising Resources

1

1 10

10 Superfluous Strengths Key Strengths

Key WeaknessesZone of Irrelevance

Rel

ativ

e S

tren

gth

Strategic Importance

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Appraising the Capabilities of a Business School

Appraising the Capabilities of a Business School (illustrative only)

Re

lati

ve

Str

en

gth

Superior

Parity

Deficient

Not important

Critically important

5

6

9

3

2

4 8

10 7

1

C1 Alumni relationsC2 Student

placementC3 TeachingC4.AdministrationC5 Course devlpmntC6 Student

recruitmentC7 ResearchC8 Corporate

relationsC9 MarketingC10 ITC11 PRC12 HRM

Importance

Key weaknessesKey weaknesses

Key strengthsKey strengthsSuperfluousstrengths

Superfluousstrengths

Inconsequentialweaknesses

Inconsequentialweaknesses

11

12

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Essential Step: Get to Action

1

1 10

10 Superfluous Strengths Key Strengths

Key WeaknessesZone of Irrelevance

Rel

ativ

e S

tren

gth

Strategic Importance

Divestiture?? Plan Leverage

Most CRITICAL ZONE OF ACTION

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Essential Step: Get to Action

1

1 10

10 Superfluous Strengths Key Strengths

Key WeaknessesZone of Irrelevance

Rel

ativ

e S

tren

gth

Strategic Importance

MOVE LEFT

Move U

P

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Discussion #1: The nature of Profit

• What is profit? How do you think about and strategically manage profit?

• How does the way you think about profit impact how a firm grows?

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The Customer Value Model of Profit

• Words are important, they create action

• Suitable for Technology Firms

• Watch the White board.

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Profit Potential of Resources

From Grant: Contemporary Strategy Analysis, Blackwell, 1998

The ProfitEarning Potential

of a Resourceor Capability

Scarcity

Relevance

Durability

Mobility

Replicability

The Extent of theCompetitiveAdvantageEstablished

Sustainability ofCompetitiveAdvantage

Appropriability

Property Rights

Relative Bargaining Power

Embeddedness

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Class Goal

• Enable the student to analyze and implement suitable management strategies, processes and policies fit to the industry, technology and strategies required for competitive success

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

3 types of learning

• Conceptual – “I understand the theory”

• Situational – if this occurs, do that

• Developmental – understand the systemic issues in such a thorough way that one is able to generate NEW interventions under new experiences.

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For Thursday

• Get the Books (3!):– Competing on the Edge– The Innovators Solution– Good to Great

• Get the Course Packet:– Make sure it says “HENGEVELD” on it– Read articles as shown on timeline