Capstone: Strategy

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STRATEGY CONCEPTS

MBA600 Week one

Strategy theories

Competitive advantage

Strategic complexity

Dynamic Capabilities

Industry Change

Sustainable Performance

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WHAT WE WILL DISCUSS IN THIS LECTURE

MBA600 subject learning outcomes What you can expect to do?

What are your study resources? Academic Success Centre, Library

What are your assignments?

Identifying strategy problems Focus on changing the performance of a firm

Brainstorm your recollection Recall the theories learned in the MBA that identify distinctive capabilities

1 Introductionto MBA600 2 Introduction to Strategy

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MBA600 SUBJECT LEARNING OUTCOMES

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WHAT YOU WILL LEARN

Critically assess a diverse range of theories accumulated throughout the Masters’ qualification and the connections that exist between each one.

Acquire advanced knowledge and apply it in real workplace contexts to improve performance and competitive advantage.

Undertake independent research to solve complex business problems.

Discuss and translate theory, skills and knowledge into effective management practice.

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LEARNING OUTCOME 1:

CRITICALLY ASSESS A DIVERSE RANGE OF

THEORIES

Sources of Competitive Advantage Low cost or differentiation

Competitive rivalry Porter’s 5 Forces

SWOT and PESTLE Market and industry risk

Resource-based View VRIN model of assets

Distinctive Capabilities Business Model Canvas

Performance of Strategy Balanced Scorecard

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LEARNING OUTCOME 2:

APPLY KNOWLEDGE IN WORKPLACE

CONTEXTS

Industry Research Opportunities to change industry profitability

Competitive Differentiation Sources of competitive advantage

Financial Performance Analysis Commercial feasibility of change

Leadership and Resource Endowments Distinctive Capabilities

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LEARNING OUTCOME 3: SOLVE COMPLEX

BUSINESS PROBLEMS

Apply MBA subjects and specialisations to research key strategy problems in a company of your choice

Australian and New Zealand Standard Industrial Classification codes Search Wikipedia for Australian and New Zealand Standard Industry Classification codes

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LEARNING OUTCOME 4:

PLAN TO IMPLEMENT STRATEGY IN

MANAGEMENT PRACTICE

Porter’s Five Forces Model

SWOT and PESTLE

Resource-based View

McKinsey 7S Model

Business Model Canvas

Balanced Scorecard

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YOUR STUDY RESOURCES

Resources for your independent study

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ACADEMIC SUCCESS CENTRE

RESOURCES FOR

INDEPENDENT STUDY

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ADDITIONAL RESOURCES

RESOURCES FOR

INDEPENDENT STUDY

Company financial statements

News releases (peer-reviewed)

White papers and research articles (peer-reviewed)

Government publications

Official company websites, marketing and blogs

Sources that are not peer-reviewed (check with your lecturer before citing)

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YOUR ASSIGNMENTS

Video, report, reflection

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ASSIGNMENTS

1. Recorded video and slides Due in Week 4 Assume the role of organisational consultant

2. Individual report Due in Week 9 Conduct desktop research regarding organisational strategy

3. Reflective essay Due in Week 13 Consider learnings from the MBA program

You need to begin your research now.

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RESEARCHING PROBLEMS IN CORPORATE STRATEGY

INTRODUCTION TO STRATEGY

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HOW DO FIRMS CREATE

COMPETITIVE ADVANTAGE?

DEFINITIONS

‘When two or more firms compete within the same market, on firm possesses a competitive advantage over its rivals with it earns (or has the potential to earn) a persistently higher rate of profit.’ (Grant, 2016, p. 169)

The key research question What mix of capabilities and resources does a firm possess that would create profits above the industry average?

Capability means a firm’s capacity to successfully perform a unique business activity

Resources mean the factors of production Land: natural resources

Labour: human resources, knowledge, automation

Capital: finance, access to funding

RESULTS ARE HIGHER RATES OF PROFIT

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STRATEGY PLANNING PROCESS

The strategy problem requires research about creating competitive advantage

Research the strategy problem

Appraise performance

Diagnose performance

Resource and capability analysis

Industry analysis

Formulate strategy

Implement structure

Internal to the firm External to the firm Operational within the firm

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Strategy as Direction • Vision: what do we want to become? • Mission: what do we want to achieve?

Plans • Development guidelines • Capital expenditure priorities • Growth (organic, M&A, alliances)

CREATING FUTURE ADVANTAGES

RESEARCH THE STRATEGY PROBLEM

STEP 1: STRATEGY PLANNING PROCESS

Strategy as Positioning • Where is the firm competing?

Geographical scope • Product market scope • Vertical (supply chain) scope • Horizonal scope (acquisition) • Virtual (online) scope

CREATING CURRENT ADVANTAGES

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Diagnosing performance

Using financial and strategy analyses to

identify the sources of performance,

satisfactory and unsatisfactory

Appraising performance

Measuring the effectiveness of

strategy in terms of financial analysis.

STRATEGY FIT STEPS 2-5: STRATEGY PLANNING PROCESS

Analysing the fit between strategy and

the firm’s industry environment

Industry analysis

Analysing the fit between strategy and

the firm’s performance, to envision strategy

options

Resources and capabilities analysis

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STRATEGY PLANNING PROCESS DETERMINE STRATEGY SOLUTION

Define competitive advantage

• based on strategic options from analyses of the external opportunities and threats; and internal resources and capabilities

FORMULATE STRATEGY

Establish organisation structure • Set reporting lines and

management systems for tracking intended strategy (plans) vs. realised strategy (actuals)

IMPLEMENT STRUCTURE

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SUMMARY OF THE

STRATEGY PLANNING PROCESS

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ANOTHER WAY TO THINK ABOUT THE STRATEGY PLANNING PROCESS

The strategy problem requires

research about creating

competitive advantage

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WORKSHOP TIME

Apply what you learned strategy, resources and capabilities in the MBA!

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5-MINUTE FORMAL

PRESENTATION

WORKSHOP Present why the resources and capabilities create differences among competing firms (60 minutes excluding presentations)

Refer to the next 2 slides as memory joggers

Form groups of 2-3 people who are interested in the same theories and practices (e.g. leadership; culture; HR, finance; any specialisation)

Summarise an overview, strengths and weaknesses of the selected theories and practices in a 5-minute formal presentation to the class

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RECALL WHAT YOU LEARNED IN THE MBA (excluding electives and specialisations)

CORE SUBJECT QUICK SUMMARY MBA401 People, Culture and Contemporary Leadership key concepts in managing the human resources

MBA402 Governance, Ethics and Sustainability the role of the board in the assessment of strategy and risk

MBA403 Financial and Economic Interpretation and Communication

assessing the liquidity, performance, and financial position of a company

MBA404 Consumer Behaviour and Marketing Psychology

how consumer behaviour is linked to business strategy for market share

MBA501 Dynamic Strategy and Disruptive Innovation developing corporate strategy; creating value through innovation; and applying dynamic capabilities

MBA502 Emotional Intelligence, Cultural Intelligence, and Diversity

appraising cultural differences are within the organisation

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MEMORY JOGGER Some of what you learned the MBA Course

Competitive advantage

Leadership styles (directing, consulting, participating, delegating)

Corporate social responsibility

SWOT and PESTLE

Finance and Economics

Employee engagement and culture

Governance and agency

Resource-based View

Leadership types (transformational, transactional, servant)

HR change management

Porter’s Five Forces

Balanced Scorecard

McKinsey 7S Framework

BCG Portfolio Matrix

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WHAT TO PREPARE FOR NEXT WEEK

Choose a company that you want to research Be prepared to evaluate internal capabilities with the Resource-based

View

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S e e k h e l p w h e n yo u n e e d i t !

Thank you