902 class 1

Global Strategy

Douglas Reid

[email protected]@douglasreidTwitter hashtag: #MBUS902

Does this matter?

Source: http://ccafs.cgiar.org/blog/crosshairs-hunger-and-climate-change

The impact of climate change is not just on hunger, but on stability and profitability

It’s about systems.

Economies.

Companies.

Opportunities.

And how you think about them.

And about coping with the unexpected.

www.census.gov/ipc/www/idb/country.php

www.census.gov/ipc/www/idb/country.php

www.census.gov/ipc/www/idb/country.php

Source: http://www.economist.com/blogs/dailychart/2011/06/oil-production-and-consumption?fsrc=scn/fb/wl/dc/runningdry

Example: What does a rising oil price do to a company?

Introduction

Global strategy in action

The strategy concept

Value chain

Industry analysis

Why does MNE exist?

Course overview

Administrivia

Breaks at 345, 515 PM (Kingston time)

Slides at slideshare.com, MBUS902and on portal – after class

Twitter hashtag #mbus902

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My expectations for you = high

Approach: engagement

Knowledge is distributed

1. What, if anything, is new or important about these stories? Why? 2. What is the impact of these stories on:

a) the global economy; b) your organization; and c) you, personally?

Describe your customers. List ALL the benefits that your camera creates for them.

What must your company be good at doing so that you are able to create these benefits?

What tasks must you do inside your company, and what tasks should you hire others to do?

Which competitor(s) do you worry about, and in each case, why? What will you do about them?

Segmentation

Generic strategy

Core competence

Value chain

Competitive advantage

Rivalry

Defining StrategyWhat Setting priorities about, and making choices for both the

present and the future

How Put into action through resource allocation and attraction

Constraints Under challenging conditions

* Imperfect information

* Environment of rapid technological advancement

* High chance of retaliation

Why To get competitive advantage

Customer willingness to pay

Cost of delivering

what the customer buys

Strategy

Implementation happen primarily by changing the allocation of resourcesconsistent with objectives

Any non-human assetof an organization thata manager can deploy

Brands, equipment, IP, licenses, machinery, information, etc.

Money

People Skills

Time Duration, sequence and project choices to which you apply the money and people that you have

If companies are justsystems of activities…

…where does the profit come from?

Made internally, or by others?

Made where?

Alignment with whose strategy?

Linked practically to implementation?

From choices

The Value Chain

Using the value chain

1. Understand what each category means

2. Decompose activities done by companies into categories

3. Do they raise WTP relative to cost?

4. If so, how to increase WTP?

5. If not, why? Can these activities be eliminated, or done by someone else,or done somewhere else?

Rivals

Buyers

Suppliers

New entrants

SubstitutesSource: Porter, 1980

Why?

How do industry forces affect profitability?

NB: NI/revenue margins range from -4.2% to 2.9%

Why do multinational corporations exist?

Let’s summarize Suggest you also tweet to hashtag #mbus902

Course Objectives

Practical proficiencyGenerate more questionsStimulate lifelong interestPut bigger questions into perspective

Strategy

Environment

Capabilities

Low cost

Differentiation

Locational advantage

Internationalization

Distances

Adaptation, aggregation, arbitrage

HQ – subsidiary

Cooperation

The global manager

How we’ll not learn

My expectations of you: High…and fair.

Arrive prepared; While here, engage;Once done, reflect.

The deliverables…

Strategy profile ofan MNE (individual)

Strategy profile of your GBP company(team)

Analytic tool-In class presentation-Write up

Reflective memo

Rubrics

Examples

Timely, useful feedback

Fair evaluation

Support, always

Everyone can be as excellent as they choose to be…

Strategy profile ofan MNE (individual)

Strategy profile of your GBP company(team)

Analytic tool-In class presentation-Write up

Reflective memo

Symtext.com

Slideshare.com (MBUS902)

Twitter (hashtag #mbus902)

Email

Virtual office hours

Go direct…

1998

You are here.

Where do you want to go next?