Leeds University Business School

LUBS5232M

International Strategy simulationDay 1

Pekka Vahtera

7th May 2014

What it is

• An on-line business simulation game that develops your understanding of the complexity of global business operations in a dynamic competitive environment

• It integrates a range of concepts from various modules – however, with a focus on strategic management

Your task

• to manage a global firm involved in advertising industry through technological evolution in the fast-paced 21st century operating environment

• to design, analyse and implement strategies for their simulated company operating on global scale

Learning objectives

• Development and analysis of competitive strategies• Management and organisation of teams• Creative thinking and problem solving• Risk assessment• Balancing financial and non-financial performance

indicators• Ability to reflect on experience and apply learning into

other contexts

The rational Strategy process

Practicalities

• During each session– At least one Wi-Fi-enabled iPad / laptop per group, the more the

better– Check if smartphone works– Use laptops if possible– iPads can be little awkward at times– In using iPads, download Google Chrome as Safari is not supported– Chrome, Internet Explorer, and Firefox should all work fine

• If you face a problem try to open the simulation with Internet Explorer

– Enable pop-ups

Simulation assessment summary

Strategy simulation

(15% of module mark for LUBS5213)

Individual self-evaluation MSQ

(20%)

+

Individual self-evaluation MSQ

(20%)

Group presentation (20%)

+

Group presentation (20%)

Group’s final performance in the

simulation in comparison to

other groups (20%)

Presentation evaluation criteria

• (1) Presentation Structure• (2) Quality of introduction• (3) Persuasiveness of arguments/choices/conclusions• (4) Division of labour, effectiveness of group work and flow• (5) Use of visual aids• (6) Timing and time keeping [5 minutes]• (7) Content, ideas, and relevance• (8) Selection and quality of information• (9) Question fielding [if there is time for questions]

• All evaluated from Excellent, Very Good, Good, Acceptable, Poor

MCQ on today’s session

Purpose• Test your knowledge on relevant issues on Phase 1• Tests that you have successfully collected key information on various documents

affecting WRSX• Factors internal to the company effecting strategy and potential future profitability• External factors to the company effecting strategy and potential future profitability

How to access the MCQ• “Set A: Self-assessment questions”• I will open the access to this MCQ after lunch

MCQ• 10 questions• No time limit for answering the questions• To be completed by end of today (24:00)

Important note about MCQs

• If you use your iPads to complete them, you will need to send the results to me by email!

• Results completed via iPads do not leave a trace in the simulation system – hence, you will need to email them to p.j.vahtera@leeds.ac.uk

How to register

• www.pearsoned.co.uk/TSE

How to register

• You will need an access code:• ISSTSE-CHILI-POIND-SPINA-ABBOT-WAXES

How to register

Logging into the simulation

Enrolling to a course

• Click “Enrol in a course” at the top right corner

• Input your course ID

Presentation Title runs here l 00/00/0022

ID: CRSKLT5-10002297

Now the LUBS5232M International Strategic Management should be available to you

Presentation Title runs here l 00/00/0023

When you are successfully registered and logged in, your screen should look something like this:

Presentation Title runs here l 00/00/0024

What if I forget my username/password?

What if I forget my username/password?

What if I have a technical question?

• http://247pearsoned.custhelp.com• What should I do first?

– Use the ‘Answer Wizard’ or search the Knowledge Base

• What if I can’t I still need help?– Ask Question via email

Timetable for today

Day 1 - 7th May - Simulation Phase 1• 09:00 Introduction to the simulation. Introduction to the task, expectations, criteria

for success and deadlines. Introduction to simulated company and its industry by working through the briefing page of the simulation (video, audio and text)

• 10:00 Understanding the Strategic Position – Part 1 Expectations & Purposes & the Environment Task: Teams are to develop a strategic analysis of the WRSX Group, its expectations, purposes and environment using relevant models and frameworks.

• 12:00 Lunch• 13:00 Understanding the Strategic Position - Part 2 Strategic Capability• Task: Teams are to develop a strategic analysis of the WRSX Group, its strategic

capabilities and competitive position using relevant models and frameworks.• 14:00 Presentation of findings to Instructor(s) in the role of Shareholders -

Presentation time: 5min/group• 14:00-15:30 Groups 1-13• 15:35-17:00 Groups 14-27• 17:00 End of day 1• [Remember to complete the MCQ on Phase 1 by the end of the day]

Mission for today

• Firstly, to understand the expectations and purposes of the business and its major stakeholders

• Secondly, you need to take a close look at the business environment in which WRSX operates

• and thirdly, you need to assess the strategic position of the WRSX Group so that you can evaluate the strategic choices open to the Group in phase two of the simulation.

What we will do today

1. Find your group members– Start thinking about a team/group name

2. We will listen together to Juliette Waldron, WRSX Group's Executive Chair, as she welcomes you to the WRSX Board

3. Next, we will watch the video briefing from your mentor who will explain how the simulation works and your tasks for this Briefing Phase of the simulation

What’s next

• TASK 1. Understanding the Strategic Position – Part 1 Expectations & Purposes & the Environment: Teams are to develop a strategic analysis of the WRSX Group, its expectations, purposes and environment using relevant models and frameworks

• After lunch• TASK 2. Understanding the Strategic Position - Part 2 Strategic

Capability: Teams are to develop a strategic analysis of the WRSX Group, its strategic capabilities and competitive position using relevant models and frameworks

• 14:00 Presentation of findings to Instructor(s) in the role of Shareholders

• Presentation time: 5min/group• 14:00-15:30 Groups 1-13• 15:35-17:00 Groups 14-27• 17:00 End of day 1

Remember to complete “Phase 1 – Assessment: Set A self-assessment questions” by the end of today!

First group presentation

Purpose

• Test your knowledge on relevant issues on Phase 1

• opportunity to justify your thinking on factors internal and external to the company effecting strategy and potential future profitability

• Improve your presentation skills in a situation which simulates real-life organizational meeting

Presentations

• 5 minutes/group

• One or more presenters – this is up to your group

• Use visuals

What to include

• Over view of what your group has done so far What are the expectations and purposes of the WRSX Group? What are the dynamics of the business environment in which the Group is competing? What are the strategic capabilities of the Group? What strategic frameworks, theories, ideas etc. have you applied for answering these questions? Justify your choice of frameworks, theories, ideas etc. Think about the implications: “what does this actually mean for the WRSX Group?'

Examples of useful frameworks

Organizational purpose

• Shareholder value vs stakeholder value• Porter (2011) creation of shared value

Organizational purpose

Levitt (1960) • What’s the customer need that we are trying to

satisfy?

Abell (1980)• Focus on customer needs• Who, what, how?

Montgomery (2008)• What makes a firm distinctive?

Hierarchy of Company Statements

• Organizational purpose Commonly communicated through different statements

Mission

Values

Vision

Strategy statement

Organizational purpose

Collins and Rukstad, 2008, “Can You Say What Your Strategy Is?” HBR

• Focus on employees• More practical and concrete

Statements of mission, vision, and value

What is the organization there to do that makes a difference, and to whom?

Mission statement• “Why we exist?” “How do we make a difference”• Information to stakeholders about overarching purpose of the firm• Often confused with strategic objective(s)

Value statement• “What we believe in”• Core principles underpinning operations

Vision statement• “What we want to be”• Desired future of the firm

Strategy statement

Could you summarize your firm’s strategy in less than 35 words?• If asked, would your colleagues articulate it in the same way?• Three critically important (seemingly simple!) parts

1. Objective(s)• specific• measurable• timeframe and end• single goal

2. Scope• Customer• Geography• Vertical integration

3. Advantage• Internal and external components

Strategy frameworks

• The Ashridge Mission Diamond – purpose, strategy, values, behaviour standards

Strategy frameworks

Strategy frameworks

Strategy frameworks

• Porter’s generic strategies– Cost leadership,

differentiation

(+cost focus & differentiation focus)

Strategy frameworks

Bowman’s strategy clock

Strategy frameworks

• Red ocean and blue ocean strategies

Strategy frameworks

Ansoff growth vector