Strategy and Culture Transportation/Logistic Strategy Overview of Corporate Strategy Miles and Snow Typologies Porter’s Generic Strategies Barney’s Resource-Based Theory Distinctive Capabilities Matching Strategy and Capabilities Corporate Culture Country Culture

Strategy and Culture Transportation/Logistic Strategy Overview of Corporate Strategy Strategy: A course of action or plan designed to accomplish a specific goal or objective. Generic Strategies Miles and Snow Strategic Typologies Porter’s Generic Strategies Barney’s Resource Based Theory

Strategy and Culture Transportation/Logistic Strategy Defenders Reactors Analyzers Prospectors Miles and Snow Strategic Typologies

Strategy and Culture Transportation/Logistic Strategy Defenders: Highly expert at producing and marketing a few products in a narrowly defined market. Opportunities beyond the present may not be sought. Few adjustments in technology, organization structure, and methods of operation because of narrow focus. Miles and Snow Strategic Typologies

Strategy and Culture Transportation/Logistic Strategy Reactors: Frequently unable to respond quickly to perceived changes in environment. Make adjustments only when finally forced to do so by environmental pressures. Reactors wait for adversity (i.e., declining sales) before taking corrective steps. Miles and Snow Strategic Typologies

Strategy and Culture Transportation/Logistic Strategy Analyzers: Simultaneous operations in stable and changing product market domains. In relatively stable product/market domain, emphasis on formalized structures and processes to achieve routine and efficient operations. In changing product/market domain, emphasis on detecting and copying competitors most promising ideas. Associated with “Me Too” products. Miles and Snow Strategic Typologies

Strategy and Culture Transportation/Logistic Strategy Prospectors: Primary attention devoted to searching for new market opportunities. Frequent development and testing of new products and services. Source of change and uncertainty for competitors. Loss of efficiency because of continual product and market innovation. Miles and Snow Strategic Typologies

Strategy and Culture Transportation/Logistic Strategy Overview of Corporate Strategy Miles and Snow Typologies Porter’s Generic Strategies Barney’s Resource-Based Theory Distinctive Capabilities Matching Strategy and Capabilities Corporate Culture Country Culture

Strategy and Culture Transportation/Logistic Strategy Porter’s Generic Strategies Low Cost vs Differentiation External Oriented Threats and Opportunities Barney’s Resource Based Theory Distinctive Capabilities Internal Oriented Strengths and Weaknesses

Strategy and Culture Transportation/Logistic Strategy The Relationship Between Barney’s Resource-based Theory & Porter’s Generic Strategy (SWOT Analysis) Strengths Weaknesses External AnalysisInternal Analysis Barney’s Resource Based-Theory Porter’s Generic Strategy Threats Opportunities

Strategy and Culture Transportation/Logistic Strategy Distinctive Capabilities are “complex bundles of skills and accumulated knowledge, exercised through organizational processes, that enable firms to make use of their assets and functions like a key success factor (Day 1994).” Distinctive Capabilities

Strategy and Culture Transportation/Logistic Strategy Correlation withSignificance CapabilityPerformanceLevel Low Logistics Cost * Operational Simplification * Operational Standardization * Problem Avoidance * Product Introduction * Product Phase Out Product Recall Responsiveness to Key Customers * Reverse Logistics Timing Selective Distribution Coverage Process Capabilities

Strategy and Culture Transportation/Logistic Strategy Correlation withSignificance CapabilityPerformanceLevel Value-Added Services * Advanced Shipment Notification Customer Service Flexibility * Delivery Dependability * Delivery Speed Delivery Time Flexibility Disruption in Supply * Expedited Delivery Innovativeness Location Flexibility Differentiation Capabilities

Strategy and Culture Transportation/Logistic Strategy Correlation withSignificance CapabilityPerformanceLevel Problem & Complaint Resolution Process Flexibility * Product Flexibility * Product Flexibility During Logistics * Product Innovation * Volume Flexibility Order Fill Capacity * Order Flexibility Widespread Distribution Coverage Differentiation Capabilities

Strategy and Culture Transportation/Logistic Strategy Overview of Corporate Strategy Miles and Snow Typologies Corporate Culture Porter’s Generic Strategies Barney’s Resource-Based Theory Distinctive Capabilities Matching Strategy and Capabilities Emerging Strategies

Strategy and Culture Transportation/Logistic Strategy Strategy Capabilities Low Cost Capabilities (Processes) Differentiation Capabilities (Value-Added Services) Cost Leadership Differentiation Good Performance Good Performance Poor Performance Poor Performance Matching Capabilities to Strategies

Strategy and Culture Transportation/Logistic Strategy Logistics Strategy, Capabilities, and Performance in the Retail Grocery Industry Cost Leadership Differentiation Performance Logistics Capabilities Strategy Process Capabilities Value-added Service Capabilities H1: =.74 (t = 3.96) H2: =.30 (t = 2.33) H3: =.25 (t = 1.82) H4: = -.20 (t = -1.65) H6: =.33 (t = 2.61) H5: =.54 (t = 3.05) H7 H5 > H6 Firm Performance H8 H1 > H2 H9: = -.27 (t = -1.43) H10: =.21 (t =1.68) H11 H1 & H2 > H3 & H4

Strategy and Culture Transportation/Logistic Strategy Strategy Capabilities Low Cost Capabilities (Processes) Differentiation Capabilities (Value-Added Services) Cost Leadership Differentiation Good Performance Good Performance Poor Performance Poor Performance Matching Capabilities to Strategies 28% 32% 13%27%

Strategy and Culture Transportation/Logistic Strategy Overview of Corporate Strategy Miles and Snow Typologies Porter’s Generic Strategies Barney’s Resource-Based Theory Distinctive Capabilities Matching Strategy and Capabilities Corporate Culture Country Culture

Strategy and Culture Transportation/Logistic Strategy Culture the sum total of the attainments and learned behavior patterns of any specific period, race, or people, regarded as expressing a traditional way of life subject to gradual but continuous modification by succeeding generations. Corporate culture is the collection of learned and shared values and beliefs that create a common identity for members of an organization. Corporate Culture is an element of the firm composed of sets of values which should be managed by the organization in its efforts to achieve the goals of environmental adaptation and constituency satisfaction. Corporate Culture

Strategy and Culture Transportation/Logistic Strategy Dimensions of Corporate Cultural Management Style: Organic vs Mechanistic Organizational Form: Flexible vs Rigid Managerial Focus: Internal vs External Managerial Targets: Stable Markets vs Flexible Markets

Strategy and Culture Transportation/Logistic Strategy Culture Types Organic Management Style Organizational Flexibility Mechanistic Management Style Organizational Stability External Focus Flexible Market Internal Focus Stable Market

Strategy and Culture Transportation/Logistic Strategy Organic Management Style Organizational Flexibility Mechanistic Management Style Organizational Stability Adhocracy External Orientation Organic Management Emphasizes Flexibility Flexible Market Position The Clan Internal Orientation Organic Management Emphasizes Flexibility Stable Market Position External Focus Flexible Market Internal Focus Stable Market The Market Type External Orientation Mechanistic Management Emphasizes Control Flexible Market Position Hierarchy Internal Orientation Mechanistic Management Emphasizes Control Stable Market Position Culture Types

Strategy and Culture Transportation/Logistic Strategy Defenders Analyzers Reactors Prospectors Miles and Snow Strategic Typologies

Strategy and Culture Transportation/Logistic Strategy Organic Management Style Organizational Flexibility Mechanistic Management Style Organizational Stability Adhocracy Strategy? The Clan Strategy? External Focus Flexible Market Internal Focus Stable Market The Market Type Strategy? Hierarchy Strategy? Culture Types

Strategy and Culture Transportation/Logistic Strategy Organic Management Style Organizational Flexibility Mechanistic Management Style Organizational Stability Adhocracy Prospectors? The Clan Reactors? External Focus Flexible Market Internal Focus Stable Market The Market Type Analyzers? Hierarchy Defenders? Culture Types

Strategy and Culture Transportation/Logistic Strategy Model: StandardizedCoefficients (B)Std. Error(Beta)T-ValueP-Value (Constant) Prospect Analyze Revenue Match M&S FRH* aDependent Variable: Operating Ratio *Dummy for Flatbed, Reefer, Household Goods; Normal state was TL; Dummy for LTL was not significant.

Strategy and Culture Transportation/Logistic Strategy STRATEGY ReactorProspectorDefenderAnalyzer Clan CULTUREAdhocracy Hierarchy Market Mean Unmatched Matched in Bold Motor Carrier Operating Ratios

Strategy and Culture Transportation/Logistic Strategy Total: Clan/ReactorAdhocracy/ProspectorSums Hierarchy/DefenderMarket/Analyzer % Matched N% Not Matched Motor Carrier Operating Ratios % Matched N% Not Matched

Strategy and Culture Transportation/Logistic Strategy Overview of Corporate Strategy Miles and Snow Typologies Porter’s Generic Strategies Barney’s Resource-Based Theory Distinctive Capabilities Matching Strategy and Capabilities Corporate Culture Country Culture

Strategy and Culture Transportation/Logistic Strategy Key Sources of Cultural Difference Power Distance Uncertainty Avoidance Individualism Assertiveness Level of Context Polychronic/Monochronic Time Face (in Asia)

Strategy and Culture Transportation/Logistic Strategy Power Scale Country Power Distances by Country

Strategy and Culture Transportation/Logistic Strategy Uncertainty Avoidance by Country Uncertainty Avoidance Scale

Strategy and Culture Transportation/Logistic Strategy Individualism by Country Individualism Scale

Strategy and Culture Transportation/Logistic Strategy Assertiveness by Country Assertiveness Scale

Strategy and Culture Transportation/Logistic Strategy Low Power Distance High Power Distance Monochronic Polychronic Matching Corporate and Country Cultures

Strategy and Culture Transportation/Logistic Strategy Monochronic Polychronic ClanAdhocracy HierarchyMarket Type Low Power Distance High Power Distance Matching Corporate and Country Cultures

Strategy and Culture Transportation/Logistic Strategy Monochronic Polychronic Low Uncertainty Avoidance High Uncertainty Avoidance Matching Corporate and Country Cultures

Strategy and Culture Transportation/Logistic Strategy Monochronic Polychronic ClanAdhocracy HierarchyMarket Type Low Uncertainty Avoidance High Uncertainty Avoidance Matching Corporate and Country Cultures