1. B300B – Tutorial No. 3
25 March 2010
John C. Jackson

2. Hello and Welcome! Day School 1 - 3 November 2007 12 June 2018
John C Jackson
John C Jackson

3. Outline Welcome, Introductions, Concerns & Hopes Strategy – Section 5
TMA01 – a review
Review and Q & A

4. Learning Outcomes To meet fellow students and tutor face to face
Day School November 2007
12 June 2018
Learning Outcomes
A ‘learning outcome’ is what I want you to have achieved by the end of the tutorial – we will come back to check this at the end.
To meet fellow students and tutor face to face
Explain how the components of B300B fit together
Think about the significance of structure, learning and knowledge management and their links to strategy
TMA01 - preview
John C Jackson
John C Jackson

5. Relationships – tutor/students/group
Day School November 2007
12 June 2018
Relationships – tutor/students/group
Contacting your tutor – via
Contacting each other
Confidentiality
Student support groups
John C Jackson
John C Jackson

6. B300 Overview
Decision
Making
Strategy
Policy
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7. Strategy for Business B300 A 12 June 2018 John C Jackson

8. Overview of B300 Understanding Business Behaviour
B200 Workshop
12 June 2018
Overview of B300 Understanding Business Behaviour
Key Themes :
Strategy:
What is Strategy?
key authors = Mazzucato, Porter, Chandler, Grant
Industry-level approach
Resource-based Approach
Competition
Innovation
Firm size
Globalisation
John C Jackson
John C Jackson

9. What Reader No. 2 says about Strategy*
B300 - Tutorials
12 June 2018
What Reader No. 2 says about Strategy*
“Strategy is how firms differentiate from each other”
“Strategy is how managers create synergy between resources (tangible and intangible in an organisation”
“Strategy is about creating sustainable competitive advantage”
“Strategy is both thinking about new products and markets and doing things differently than you were doing before (especially different from others) and also about doing things better (innovating existing products, better targeting of existing customers; etc)”
“Strategy is thinking about how different parts of the organisation interact and how the organisation adapts to change”
“Strategy is about being able to decide when to change from focusing on exploration to focussing on exploitation – it is not just about one or the other”
“More than ever, strategy is about organisational change”
* Source: John Handley
John C Jackson
John C. Jackson

10. Strategy Reader Section Five
Organisational structure, learning and knowledge management
“knowledge is the ability to process information”
“Unlike information, it cannot simply be bought” (Mazzucato, Reader, page 261)
John C Jackson

11. Strategy Reader – Ch. 13 The Dynamics of Industrial Capitalism
Chapter 13 by Teece
Based on the works of Alfred Chandler
“Chandler highlights the important role of managerial strategy ...” (Mazzucato, Reader, page 261)
Chandler defined strategy as “the determination of the basic long-term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources for achieving these goals”
John C Jackson

12. Strategy Reader
Chandler argued that markets do not shape business organisations
Rather “business organisations shape markets”
This links to the resource based view outlined in Section 3
Firms and markets develop together to determine ‘industrial outcomes’
For the achievement of their long-term goals, firms must invest in:
Large scale production
Product specific marketing, distribution and purchasing networks
Recruitment and organising of the appropriate managers
These three investments will enable firms to achieve:
Economies of Scale and Scope
Sustainable advantages
Chandler compares the relative success of Germany, the UK & the USA
John C Jackson

13. Strategy Reader – Ch. 13 The Dynamics of Industrial Capitalism
Do Chandler’s views only apply to ‘traditional’ industries?
What about the ‘new’ high tech industries?
What differences does the rise of IT make?
Please review Teece’s summarising remarks of Chapter 13
John C Jackson

14. Strategy Reader – Ch. 14 Absorptive capacity
Chapter 14 by Cohen & Levinthal
“Memory is developed via associations and linkages with pre-existing concepts” (Mazzucato, Reader, page 64)
Firms that have “developed a body of ... knowledge will be better learners”
Leading to more knowledge in the future
A firm’s absorptive capacity depends on its prior related knowledge
John C Jackson

15. Strategy Reader – Ch. 14 Absorptive capacity
“The ability of organisations to recognise the value of new information and to absorb it into their structures”
What is important is:
“the organisation’s ‘ability to learn’ and
its ability to adapt to new information”
learning is ‘path dependent’
John C Jackson

16. Strategy Reader – Ch. 14 Absorptive capacity
For effective absorptive capacity, a firm needs a diversity of background to enable the development of new things
John C Jackson

17. Strategy Reader – Ch. 14 Absorptive capacity
Cohen & Levinthal argue
that firms must invest truly in research in order to acquire the rewards of innovation
That absorptive capacity is cumulative
Prior knowledge permits the assimilation and exploitation of new knowledge
John C Jackson

18. INNOVATION Definitions on Page 48 of the Study Guide:
Technological and organisational change
Product vs. process innovation
Radical vs. incremental innovation
Innovation = ‘transformation of an invention into a commercial success’
John C Jackson

19. Strategy Reader – Ch. 15 Strategic thinking and knowledge management
Carlisle argues that the ‘knowledge based approach’ builds on the concepts of the ‘resource based approach’
Knowledge is dynamic; information is static
Information can be bought; knowledge needs to be developed over time
Knowledge development may be associated with firm size
Large firms’ bureaucratic structures, cultures, etc. may prevent the processing of information into knowledge
Small firms “may be better able to process ... information in innovative ways”
John C Jackson

20. Strategy Reader – Ch. 15 Strategic thinking and knowledge management
Small firms may be able to use knowledge to be more innovative (product and radical innovation) to enable them “to challenge established leaders in an industry”
See links to Markides
John C Jackson

21. An Introduction to Global Strategy
Chapter 16: Ghoshal
To become international, firms must make decisions to pursue appropriate strategies
Ghoshal claims theories on global strategies put too much stress on economic factors
more attention needs to be paid to social and political factors
John C Jackson

22. An Introduction to Global Strategy: an organising framework
Ghoshal claims that firms that wish to operate internationally need to pay attention to three key objectives :
Achieving efficiency
Managing risks
Improving their ability to innovate, learn and adapt
They do this by taking advantage of:
National differences
Scale economies
Scope economies
See Table 16.1 on page 327
John C Jackson

23. Ghoshal’s ‘organising framework’
Sources of competitive advantage
Strategic objectives
NATIONAL DIFFERENCES
SCALE ECONOMIES
SCOPE ECONOMIES
Achieving efficiency in current operations
Benefiting from differences in factor costs (e.g. wages and cost of capital)
Expanding and exploiting potential scale economies in each activity
Sharing of investments and costs across products, markets and businesses
Managing
risks
Managing different kinds of risk arising from market or policy-induced changes in comparative advantages of different countries
Balancing scale with strategic and operational flexibility
Portfolio diversification of risks and creation of options and side-bets
Innovation, learning and adaptation
Learning from societal differences in organisational and managerial processes and systems
Benefiting from experience (cost reduction and innovation)
Shared learning across organisational components in different products, markets or businesses
(Ghoshal, 1987)

24. TMA Dates Quizzes: 10% each of total assessment
Assignment Cut-off Date Word-length Weighting
TMA April %
TMA May %
Quizzes:
10% each of total assessment
Quiz minutes: Chapters 7 to 12 (Strategy)
Quiz minutes: Chapters 1 to 6 (Policy)
John C Jackson

25. TMA01
This tutor-marked assignment draws on the assigned materials of Sections 3 and 4 of the Strategy module, particularly Chapters 7 through 12. This assignment will be graded out of a 100 and is worth 15% of the total grade assigned to the course. Out of the 100 marks, 20% will be distributed equally to assess the following criteria: presentation of ideas and organization of the answer, adherence to specified word count, proper referencing and use of the E-library.
In this TMA, you are expected to demonstrate your knowledge and understanding of the theories of strategy and how resources and capabilities affect a firm's competence and innovation. In your answer, you are expected to show your critical and analytical skills of the subject matter and to use material from outside the textbook. Your answer should be within the specified range of words, and you must follow the Harvard Style of Referencing. You are expected to present a well structured and organized piece of work that is of your own. Plagiarism will be penalized by deduction of marks.
Question
 Use an essay format in a maximum of 2000 words to discuss and critically analyze the following statement:
 Dynamic capabilities and innovation have major impact on the sustainability of a firm’s strategy.   
(Show whether capabilities and innovation are related to industry specific factors or firm specific factors. Use relevant real-life examples and the literature to support your arguments and analysis).
John C Jackson

26. TMA01 Group Work: How would you approach this TMA?
What do you need to do first? 10 minutes to discuss the key issues
John C Jackson

27. TMA01 Definitions: Dynamic Capabilities Innovation Sustainability
Firm’s strategy What do we mean by “major impact”?
John C Jackson

28. What chapters are necessary
TMA01
Group Exercise:
What chapters are necessary
for this TMA?
John C Jackson

29. TMA Marks Each TMA and Quiz is marked out of 100
Day School November 2007
12 June 2018
TMA Marks
Each TMA and Quiz is marked out of 100
TMA01 = 15% of total marks
TMA02 = 15% of total marks
Quiz 1 = 10% of total marks
Quiz 2 = 10% of total marks
Examination = marked out of 100
Examination = 50% of total marks
Total assessment
= TMA + Quiz marks + Examination Marks = 100%
John C Jackson
John C Jackson

30. Quiz 1 7 April 2010 – 7.0 pm Short essay-type questions
Choose 2 out of 4
Chapters 7 to 12
John C Jackson

31. B300B Assessment Tutor Marked Assessments (continued)
Day School November 2007
12 June 2018
B300B Assessment
Tutor Marked Assessments (continued)
If you think you might miss the deadline - please do contact me
Under certain circumstances - an extension can be agreed
You do need to have a valid, plausible reason
Any extension must be agreed before the due date
Late TMAs – without authorisation - will not count towards your final mark
John C Jackson
John C Jackson

32. Questions
John C Jackson

33. Review of Tutorial What went well? What did not work so well?
What needs to changed?
What have you gained from this tutorial?
What would you have liked to cover, but did not?
Any other points
John C Jackson

34. Review of Today – Your thoughts please….
Day School November 2007
12 June 2018
Review of Today – Your thoughts please….
How far did the tutorial meet my expectations or needs?
What have I learned? How has the tutorial improved my
understanding?
Has it highlighted any issues or skills that I need to explore or
develop? If so, give further details.
It is really important that these tutorials meet your needs so please do think about these questions and me some feedback.
I would also welcome any suggestions for tutorial content.
John C Jackson
John C Jackson

35. Important Dates
Next Tutorial:
two weeks from today
John C Jackson

36. Key Tasks Complete TMA01 Focus on studying for Quiz 1
Read Study Guide (pages 59 – 74)
Read Chapters 13 – 16
John C Jackson