1. Strategy Dr Elif Bascavusoglu-Moreau
Ass. Professor of Innovation & Entrepreneurship
EXECUTIVE EDUCATION
© Imperial College Business School

2. Introductions Dr Elif Bascavusoglu-Moreau
Assistant Professor of Innovation and Entrepreneurship
Teach Business Economics, Innovation
Research
Technology Strategy and Innovation
Entrepreneurship
Markets for Technology
Servitization

3. What is strategy?
What business strategy is all about is, in a word, competitive advantage … the sole purpose of strategic planning is to enable a company to gain, as efficiently as possible, a sustainable edge over its competitors. Corporate strategy thus implies an attempt to alter a company’s strength relative to that of its competitors in the most efficient way. – Kenichi Ohmae

4. Purpose of the Course
The Strategy course is intended to give the MBA class a holistic view of the firm, to develop students’ ability to think beyond day-to-day business activities, and challenge them to ask the right questions about its future. These skills are essential to being an effective general manager.

5. Course Objectives
Upon successful completion of this course, students will be able to:
Assess industry attractiveness and recognise the drivers of firm profit
Design strategies that help firms achieve, sustain, and renew competitive advantage
Think outside of industry boundaries and create new market space
Be aware of the challenges to implement a strategy once it has been formulated 5

6. SLE Projects
This course is closely related to your SLE project. I will ask you to think about your SLE project at several points and there will also be an assignment related to your projects. 6

7. Class Participation
The quality of learning in this course will depend on how much you all put in. We are all in this together and the experience depends on your enthusiastic participation:
Participate in group discussion
Participate in small group breakouts
Engage with individual exercises
Personal reflection on class materials 7

8. Course Text
I will touch on various topic from the book but it is meant primarily to provide a foundation for the course and I will not go through it in detail.
Contemporary Strategy Analysis by Robert Grant (2010, 7th edition, Blackwell Business). 8

9. Course Assessment
The assessment is focused on you and your development. There will be no tests, quizzes, or class participation marks.
Assessment
Weight
Individual Case Analysis
40%
In-class Activity 1
10%
In-class Activity 2
Group Case-Study
Total
100% 9

10. Session 1 Introduction Introduction to the Course SWOT Analysis
 Introduction
Introduction to the Course
SWOT Analysis
Mission Statements 10

11. Session 2 What is Strategy? What is Strategy? Reading: Chapter 1
 What is Strategy?
What is Strategy?
Reading: Chapter 1
Case: AndFound 11

12. Session 3 Understanding Competitive Dynamics Industry Analysis PESTLE
Industry Analysis
PESTLE
Reading: Chapter 3 & 4
In-class Activity 1: Analyze the Industry Dynamics of Your SLE Venture 12

13. Session 4 Analyzing Competitive Advantage Resources and Capabilities
Resources and Capabilities
Developing Resources and Capabilities
Reading: Chapter 5 & 6 13

14. Session 5 Creating Cost Advantage Strategy and Cost Advantage
The Sources of Cost Advantage
Reading: Chapter 8 & 9
Case: Second Thoughts About a Strategy Shift 14

15. Session 6 Creating Differentiation
The Nature of Differentiation Advantage
The Value Chain in Differentiation Analysis
Reading: Chapter 10
Case: The Upstarts Assault 15

16. Session 7 Industry Evolution The Industry Life Cycle
Industry Evolution
The Industry Life Cycle
Competition over the Life Cycle
Reading: Chapter 11 16

17. Session 8 Corporate Strategy
Corporate Strategy
The Costs and Benefits of Vertical Integration
Transaction Cost Analysis
Readings: Chapter 14
Case: Bet on One Big Idea 17

18. Session 9 Creating New Market Space Blue Ocean Strategy
Blue Ocean Strategy
Drawing a Value Curve
Reading: Kim, W.C. & Mauborgne, R. (2004) “Value innovation” Harvard Business Review, 82(7/8):
In-class Activity 2: Draw a Value Curve for Your SLE Venture 18

19. Session 10 Global Strategy and the MNC
Competitive Advantage in an International Context
International Location of Production
Readings: Chapter 15
Case: Where to Launch in Africa   19

20. What is SWOT analysis?
A technique that enables a group or individual to move from everyday problems and traditional strategies to a fresh perspective. 20

21. S – Strengths W – Weaknesses O – Opportunities T – Threats
SWOT is an acronym for…
S – Strengths
W – Weaknesses
O – Opportunities
T – Threats
Internal Environment
External Environment 21

22. Strength
Any existing or potential resources or capability within the organisation that provides a competitive advantage in the market.
Examples:
Strong distribution network
Intense Staff commitment and loyalty
Strong support from funders 22

23. Weakness
Any existing or potential force which could serve as a barrier to maintaining or achieving a competitive advantage in the market.
Example:
Lack of a clear organizational strategy
Lack of training opportunities for using a new software 23

24. Opportunity
Any existing or potential force in the external environment that, if properly leveraged, could provide a competitive advantage.
Example:
Organisation’s geographic location
New technology 24

25. Threat
Any existing or potential force in the external environment that could erode a competitive advantage.
Example:
A new entrant
A recession, rising interest rates, or tight credit lines 25

26. Aim of SWOT Analysis? The aim of SWOT analysis is to:
Take advantage of strengths and opportunities.
Minimise weaknesses and eliminate threats 26

27. Analyse Internal & External Environment
How to do SWOT Analysis?
Step 1
Step 2
Step 3
Perform SWOT Analysis
Prepare Action Plans
Analyse Internal & External Environment
A SWOT analysis is useful only when action plans and strategies are developed from the results

28. Mission and Goals Mission Major goals Secondary goals
Sets out why the organization exists and what it should be doing.
Major goals
Specify what the organization hopes to fulfill in the medium to long term.
Secondary goals
Are objectives to be attained that lead to superior performance.

29. Vision or Mission
A statement of purpose (strategic intent) committing the organization to ambitious overarching (stretch) goals.
Provides a sense of direction and purpose.
Drives strategic decision making and resource allocations.
Forces the seeking of significant performance improvements to attain goals.

30. A New Mission for Robin Hood
Read the Robin Hood case. Answer the following questions in small groups.
What are the main strategic problems facing Robin Hood? Use SWOT.
Develop a new mission statement for Robin. What are the strategic implications of your new mission statement? 30