[STRATEGY]

COURSE BOOK

STRATEGY

(EBC1017)

Course coordinator: Dr. Boris Lokshin

Course period 1.4 International Business

Academic year 2012/2013

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INTRODUCTION

The objective of this course is to introduce students to the core concepts, frameworks and techniques

of strategic management, allowing students to make better decisions in their professional lives.

Strategy is formulated based on the company’s mission and its assessment of the external and internal

environment. A systematic examination of the environment in which the firm operates enables

managers to recognize sources of possible competitive advantage by identifying unmet needs, broadly

defined, in the external environment and the firm’s abilities to meet those needs (internal analysis).

Strategic choice is the point in the process where managers choose how to organize and position the

resources of the firm. Strategic choices are made at two levels: the business level and the corporate

level. Managing a firm is somewhat like playing chess. The resources of the firm are like the pieces of

a chess set. This course will be about positioning the resources of a firm with a view toward gaining

competitive advantage and earning superior economic returns. The course will take students through

several models of analysis that will look at the positioning of competitors, suppliers, customers, etc.

Positioning of the focal firm’s own resources will be a central theme throughout the several models

presented during the course.

REQUIRED LITERATURE

Rothaermel, Frank T. 2013. Strategic Management: Concepts and Cases, 1st edition, McGraw-Hill.

COURSE REQUIREMENTS

Attendance and participation

Attendance and active participation are critical to students’ success in this course. Each tutorial

meeting will focus on one or more topics from the required readings and the corresponding tasks.

Students are required to prepare assignments before the meeting and be ready to discuss the tasks in

class. For the post-discussion students prepare answers to the learning objectives. During each meeting

each student’s individual participation will be evaluated by the tutor based on two aspects: (1)

preparation – the extent to which a student demonstrates that he/she studies and prepares for the

meetings and (2) contribution – the extent to which a student actively contributes during the tutorial

group discussions. Participation mark for each session depends on both aspects and will be either a

“plus”, or a “minus”. Lacking participation means missing more than three tutorial sessions or

obtaining fewer than eight ‘pluses’ and will entail a course assignment.

Individual Presentations

The skill training associated with this course is presentation skills. Each student must present once

during the course. This individual presentation is linked to the (post) discussion of a task and follows

the tutorial group discussion of the assigned chapter. Each student has a maximum of 15 minutes for a

presentation, followed by up to 5 minutes of discussion and feed-back. In the individual presentation

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students give their analysis of the task, which is related to one or more learning goals for the session,

and answer critical questions posted in the course book.

The evaluation of the presentation takes into account structure (25%), form (25%), and content

(50%). If a student has an insufficient grade for the presentation a resit is offered in the last tutorial of

the course. In case of a no show a student receives a zero mark. The final grade for the individual

presentation is an average of the marks received in the first sit and the resit presentation.

Students who failed are advised to improve their presentation on the basis of the feedback

received from the tutor and use the same topic as in the first presentation. MS Word documents

Presentation Evaluation and Basic Rules for Providing Feedback are posted on Eleum and contain

information on the grading of the presentations and suggestions on how to provide feedback. For more

information on how to prepare the presentation please consult the presentation guide, Steps in

Preparing and Giving a Presentation, available on Eleum under the course material. Scheduling of the

presentations will take place in the first tutorial of the course. Table 1 below summarizes available

slots and tasks associated with them.

Team Presentation

In addition to the individual presentations, there is a team case presentation. Students will form three

or four teams during the first session. Team diversity is promoted. Session 11 is reserved for the case

presentations. Each team has a maximum of 20 minutes for their presentation, followed by up to 5

minutes of discussion. Critical questions (details are given in the corresponding section of the block

book) have to be answered during the team presentation. The evaluation of the presentation takes into

account structure (25%), form (25%), and content (50%).

Strategy team project

The goal of this course-long project is to provide a tangible application of many of the concepts

discussed in this course. By the end of the project, students will not only have practice in using key

strategic management components and processes to increase understanding of the material, but also

will be able to conduct strategic management analysis of a company. Each assignment requires either

data collection or analysis relating the material discussed in the chapter to the firm students select. At

the end of each session, under the heading ‘Strategy Term Project’ you will find the tasks that you

need to do. In meeting 8 the teams will present their findings in class. Each team has a maximum of 20

minutes for their presentation. The project will be evaluated as a written piece of work as well as a

presentation. A total of 100 points can be earned for the strategy project, 70 for the written report and

30 for the oral presentation. It is specified per task how many points each of the 9 strategy project

tasks is worth. The evaluation of the report is based on: 1) How well are the questions answered? 2)

What is the quality of spelling and grammar? 3) What is the quality of referencing? The evaluation of

the presentation takes into account coherence (50%), and presentation style (50%). The total length of

the written report should not exceed 2100 words. In the description of the tasks a word limit per each

task is indicated. Reports longer than 2100 words will be penalized. The print-out of the project (Tasks

1 – 8) has to be submitted to your tutor during session 9 on March 14, and an electronic copy has to be

uploaded on Safe Assign. Individual report (Task 9) has to be submitted on March 26.

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International Classroom Skills

A new initiative by SBE board, Program Committee and Student Council has been launched aimed at

improving cooperation between Maastricht University students of different nationalities. Students are

required to spend 2 extra hours on developing skills that would ensure that student cooperation with

peers of different nationalities is more effective. The focus in EBC1017 is on improving the team

skills. During your university studies you will work repeatedly in small teams. Working in teams can

be both fun and challenging. Complexity of the team tasks tend to increase over time during your

studies and hence the challenges you will face. This is a good preparation for your career, where team

skills are an important asset. Similar to earlier International Classroom tasks, focus is on actually

practicing the skills involved. International Classroom Skills (ICS) training makes part of the strategy

team project. The detailed description of ICS Tasks 1 – 4 can be found under the sessions below.

Written Exam

The written exam is closed book and will consist of multiple-choice questions based on the required

readings. The use of dictionaries (except explanatory English-English) and a non-programmable

calculator is allowed. A total of 100 points can be earned for the exam and the exam grade is

determined by dividing the total number of points scored by 10.

GRADING

The final grade for the course is composed of the following parts:

15% Individual presentation

20% Strategy team project (report and presentation)

10% Team presentation (case analysis)

55% Exam

In order to receive full credits for the course a student must meet the following conditions:

1) receive a passing grade for the written exam of 5.5 or higher

2) receive ‘pass’ for the individual presentation

3) fulfill the participation requirement (see section Attendance and participation)

In case conditions 1) and/or 2) are not met a student can register for a re-sit of a written exam and the

individual presentation, which are both offered. In case condition 3) is not met, a student must

complete the block assignment. Further details on the course assignment will be posted on the course

page on Eleum.

THE SESSIONS

The first half of each tutorial is devoted to the (post) discussion of the assigned reading. The second

part of each tutorial session students will give individual presentations, which are based on a case. The

information on cases is given under each tutorial session heading below. The tutorial will end with a

pre-discussion of the follow up tasks. At the end of the pre-discussion students should be able to

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formulate learning goals for the following tutorial. The thirteen tutorial sessions are summarized in the

following table.

Table 1 Time schedule for the course

Session

number

Date Readings Problem Tasks (T)

Second (post) discussion/

individual presentation

First (pre) discussion

1 Feb 5 T0, T1, ICS1, ICS2

2 Feb 7 1 T1, ICS2 T2; SP1, SP2

3 Feb 19 2 T2 T3, T4; SP3

4 Feb 21 3 T3, T4 T5, T6; SP4

5 Feb 26 4 T5, T6 T7, T8; SP5

6 Feb 28 5 T7, T8 T9, T10; SP6, SP7

7 March 5 6 T9, T10 T11, T12; SP8

8 March 12 Strategy project presentation

9 March 14 8 T11, T12, Hand in Strategy

project report to the tutor and

upload in Safe Assign on

EleUM

T13, T14;

10 March 19 9 T13, T14 T15

11 March 21 Case presentation SP9

12 March 26 7 T15, Hand in ICS individual

report to the tutor and upload in

Safe Assign on EleUM

13 March 28 Recap

Note: each of the tasks T1 – T15 can be used for individual presentations.

In session 9 the teams have to indicate which of the cases they have chosen for the team presentation.

ELEUM

Course materials, such as presentation guide, description of the seven-jump method, and presentation

evaluation form, team report criteria mentioned in this course book, are posted on the course webpage

on Eleum (http://eleum.unimaas.nl). Minutes of the tutorial sessions, power-point slides of the

individual presentations and the lecture slides will also be posted on Eleum in due course. Students are

advised to check Eleum regularly to keep up to date and for announcements related to the course.

http://eleum.unimaas.nl/

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SESSION 1, February 5

The suggested plan for the first session is as follows:

Clarify the role of tutor, group members, person to take minutes, and discussion leader(s)

International Classroom Skills (ICS) Task 1 Getting to know each other

Assigning discussion leaders, secretaries (responsible for minutes) and presenters

Making up teams

International classroom skills (ICS) Task 2

Tutorial task 0 and Tutorial task 1

The role of the discussion leader(s), scheduled for each session, is to lead the discussion. Another

student is scheduled to keep minutes. The minutes should be posted on Eleum in order to be available

for other students the day after the meeting. The students have to choose a session when they are going

to make their individual presentation. There are slots for presentations during sessions 2 – 9. The

sessions are structured in such a way to give one or two students an opportunity to present. Each

individual presentation has to deal with a corresponding task indicated in Table 1. The students are

also to form teams consisting of three or four students. Sessions 8 and 12 are reserved for team

presentations which are separately graded.

A possible agenda for each of the following meetings could be:

opening round

agenda setting

o any remarks on the minutes

o any questions

post discussion of the chapter and the learning goals (first half of the session)

individual presentation, followed by the group discussion (second half of the session)

short evaluation of the presentations

pre discussion of the topic of the following tutorial, setting of the learning goals

closing round

International Classroom Skills (ICS) Task 1 Getting to know each other

Why this series of tasks? Students of earlier years have been in favor of more explicit attention to

international cooperation in and around the classroom. One of the problems noted by internationally

oriented students was the preference of quite a number of students to work in teams with fellow

nationals only, including a sometimes reluctance to work with students from other nationalities. One

of the reasons for this was that teamwork was perceived as pretty challenging by quite a number

groups of students. That’s why CICD has thought of series of ICS tasks to deal with these challenges

in teamwork. While it would be an illusion to think that problems can be prevented completely,

following some basic principles can certainly help to reduce problems in the first place. This task is

about getting to know each other. We begin with students breaking up in pairs. Students interview

each other for a couple of minutes. Please make notes because afterwards you will introduce each

other to the entire group:

a. What is your name? What country do you come from? In which countries did you live or

visited?

b. Are you regular or exchange student?

c. Do you have work experience (real job, holiday job etc.) and what is the most interesting thing

you’ve learned from this experience?

Group members introduce each other to the group by briefly summarizing the points listed above

After the break the teams will be formed

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International Classroom Skills, ICS Task 2 ‘Mapping the Ground’

In this course you will do a number of tasks as a team: a strategy project (presentation and report) and

a case (presentation). The strategy project consists of various tasks specified in the course book.

Team work starts with exploration or ‘Mapping the Ground’. In the course Management of

Organisations and Marketing in course period 1.1 you already became acquainted with the model of

‘Forming, Storming, Norming, Performing and Adjourning’, Gallagher (2010, p.204). While the

importance of mapping the ground may seem (all too) obvious, experience shows that in practice

many teams omit this stage or go through it too quickly, implying that they run into problems later on.

Get together as a team and discuss the following

1. Explore similarities and differences between the team members. As many as possible in a

short time, e.g. nationality, eye color, age, sports, music preferences hobbies etc. Make sure to

find a good balance between similarities and differences. Count similarities and differences.

Which team has most?

2. What are your aspirations for the team project, both intrinsic (what do you want to learn) and

extrinsic (grades you hope to achieve)? How important is this task to you, compared to other

obligations? What other obligations do you have during this period and how much time do

they require? Think of the other course you are following, job(s) you have, membership and

activities in student associations, sports training, other hobbies, weekend trips to parents /

boyfriend /girlfriend, etc. Also share specific time commitments during the week. Apart from

getting to know each other better, it is also practical to know this when making agreements.

3. In student teams (just like in business teams) there are sometimes big differences in (grade)

aspirations and willingness to spend time and energy on a team task. While this is challenging

in itself, things get even worse if team members don’t discuss these things with each other.

Gallagher (2010, p.207-8, figure 10.2 and 10.3) suggests to agree as a team on the following

things:

a. How do you communicate with each other?

b. When do you have meetings? E.g.

Fixed time every week (as in the example of Gallagher, 2010, p. 208)

Going with the flow, dependent on the tasks at hand

c. How do you make decisions? E.g.

One leader or coordinator for the entire project

Different coordinators for different sub-tasks

Joint decision making as in Gallagher’s example

d. How do you divide roles and responsibilities within the team?

Don’t divide tasks too early, make sure to explore them first (Gallagher 2010,

p.207, fig. 10.2. steps 1-5)

Reserve time to bring the various subtasks together before the final deadline

(Gallagher 2010, p.207, fig. 10.2. steps 5-8)

e. What do you do when agreements are not met?

As a first step, before making decisions on this, explore what preferences team members have. Don’t

enforce a decision too early, but first explore all the options and allow team members to propose

different solutions. Agree on a time (and place) when you continue.

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Tutorial Task 0: What makes a good presentation?

Some of you have already had the experience of giving a presentation. You have also attended a lot of

presentations or lectures. Some of them you will never forget some you will hardly remember. The

main question is ‘What makes a good presentation?’ Discuss the elements of a good presentation and

make together a checklist. Give also for each element an indication how to reach the criterion.

Tutorial Task 1. What is Strategy? (Chapter 1)

For this task read the opening case to Chapter one. In addition, it is fine if you surf the internet prior

when preparing the task, to further your understanding of the case. For instance, you can research

Google’s unfolding relationship with China or Google’s changing position on Net Neutrality or

Google’s entry into e-books. Does Google have a good strategy according to you (think of overall

strategy of a company, not just the attractiveness of its products or services)?

In your individual presentation address two, maximum three, learning goals formulated for this

session (the suggested ones are listed in brackets). Use Google as an example. In the course of your

presentation answer the following questions:

1. Google was not the first search engine on the Internet, but it has been the most successful.

What is Google’s competitive advantage? Hint: their theory of how to gain competitive

advantage can be broken down as follows: What is their business model (that is, what serves

as their profit engine) and how do they differentiate themselves? (LO 1-1)

2. What strategy and business model is Microsoft using today with Bing to try to succeed in the

Internet-search business? (LO 1-2)

Ray

Highlight

Ray

Highlight

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Tutorial Task 2. Strategic management process (Chapter 2)

Google founders started out with the idea of organizing the world’s information and making it

accessible and useful. However, since IPO in summer of 2004 Google launched a host of products that

expanded company’s operations beyond web search. Some of the most well-known ones are Gmail,

Google Maps, Google Docs, and Google Finance. In a rampant series of acquisitions Google acquired

among others YouTube and DoubleClick which allowed the company to establish presence in online

video and display advertising. Analysts speculate as to what objectives Google has in mind? Some of

Google’s initiatives moved it towards companies like Yaaho! and Microsoft MSN. With other

initiatives, like Maps, books Google engaged in competition with e-commerce incumbents such as

eBay and Amazon. With yet other offerings, like Google Docs the company challenges traditional

Office hegemony of Microsoft. In January 2010 Google even launched the Nexus One – a touch-

screen smartphone. This raises the question: are these developments the outcome of deliberate and

rational strategic plan by the company’s top management or these strategic initiatives popped up in

some unplanned way?

In your individual presentation address two (maximum three) learning goals formulated for this

session. Use Google as an example. In the course of your presentation answer the following questions:

1. What is Google’s mission? Is it customer- or product-oriented? What relationship do you see

between Google’s mission statement and its competitive advantage? (LO 2-1, LO 2-3)

2. Has Google’s strategy been intended versus emergent? Why do you think so? (LO 2-6)

3. Is pursuit of opportunities in the portal, e-commerce intermediary, and desktop operating system

businesses consistent with Google's mission and culture? (LO 2-6)

Strategy project Task 1: Initial firm selection

This first task is to identify a company to study. The easiest and most consistent method will be to

select a medium- or large-sized public company to study. One important requirement is that you have

the company most recent annual reports (2011 and 2012) . The secondary approach of selecting a local

firm can provide challenges regarding the appropriate collection of data. Even if a student works at the

firm, there are quite often proprietary limits on the data (especially financial and competitive data) that

these firms will allow to be used for such a project. Be sure to check with the local firm on data

availability. There is a lot of information available on the Internet. Unfortunately, a lot of it is heavily

flawed or biased. Students should use a variety of sources, because even sources like The Wall Street

Journal and Financial Times can be biased in choosing their reporting topics and tone. Once the firm is

selected, it’s time for the students to start gathering information on the history of the firm, its current

top management team, and the primary business model for the firm. The goal of this first assignment

is basic familiarization with the firm and a check to be sure data sources are forthcoming and

reputable. Your chosen company must be approved by your tutor.

Strategy project Task 2: Agreement on working procedures (ISC Task 3) (200 words, 5 points)

Have a meeting with your team to finalize the initial discussion of ISC Task 2. Put the agreement that

your ream has reached on paper. Answer the following questions in the report:

a. How and when do you communicate with each other?

b. How do you maintain a good atmosphere in the team (informal gatherings? other ideas?)

c. When do you have meetings?

d. How do you make decisions?

e. How have you divided roles and responsibilities within the team?

f. When will you start preparing the case presentation?

g. What do you do when agreements are not met?

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Task 3. External Analysis (Chapter 3)

For this task read the opening case to Chapter 3. You may also find useful to read the first part of Case

5 on p. c32 as a background reading.

In your individual presentation address two (maximum three) learning goals formulated for this

session. In the course of your presentation answer the following questions:

1. Think about the automotive industry in your home country. Is it structured more like an

oligopoly or monopolistic competition? (LO 3-2)

2. Do you think the structure would change for an electric vehicle strategic group within the

overall automotive industry? (LO 3-2)

3. Which PESTEL factors are the most salient for the electric automotive industry of the 21st

century? (LO 3-1)

Task 4. External Analysis (Chapter 3)

For this task read the opening case to Chapter 3. You may also find useful to read the first part of Case

5 on p. c32 as a background reading.

In the individual presentation answer the following questions:

1. Using the industry attractiveness framework (see Exhibit 3.5), explain the overall automotive

industry. (LO 3-3)

2. How would your analysis change for the electric automotive industry? (LO 3-3)

3. Identify any strategic groups that might exist in the auto industry. How does intensity of

competition differ across the strategic groups you have identified? (LO 3-6)

Strategy project task 3 Mission and Goals (300 words, 5 points)

Search for the firms’ mission statement. Often companies announce it on their websites. Remember

some firms use the term mission and vision interchangeably, so you may need to adapt a vision

statement as the mission if it is appropriate. Major company goals are quite often also available

through the annual reports that each public firm must file with the SEC

http://www.sec.gov/edgar.shtml or http://www.morningstar.com or https://company.info through UM

library database. Longer-term goals are usually in the annual reports. You may go back a few years in

the annual reports and compare what the firm said three or five years ago to what they said most

recently. Pulling a couple of older annual reports will also help in the formation of a timeline for

major changes in the organization. Also, check the firm’s website. Often, firms will include a history

or “timeline” section from their home page under “About Us” or the “Investors” tab. In the report

answer the following questions:

1. What is the mission statement of the firm?

2. What are the major goals of the company?

3. Has the mission statement and company’s goals changed in the last few years?

http://www.sec.gov/edgar.shtml

http://www.morningstar.com/

https://company.info/

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Task 5. Internal Analysis (Chapter 4)

For this task read the mini-case 4 “Starbucks: re-creating its uniqueness”, p. 371. In your presentation


1. What are Starbucks’ key tangible and intangible resources? How did Starbucks create its

uniqueness in the first place? (LO 4-1)

2. Was Starbucks’s uniqueness a VRIO resource? Did it help Starbucks gain and sustain a

competitive advantage? Why or why not? (LO 4-4)

3. Why and how did Starbucks lose its uniqueness?

4. How is Starbucks attempting to re-create its uniqueness? Do you think it will be successful?

Why or why not?

Task 6. Internal Analysis (Chapter 4)

For this task read the mini-case 4 “Starbucks: re-creating its uniqueness”, p. 371. In addition, it is fine

if you surf the internet prior when preparing the task, to further your understanding of the case. In your


1. Explain Starbucks’s ups and downs using (a) strategic activity systems and (b) the dynamic

capabilities perspective. What implications can you draw? (LO 4-6)

2. Conduct a SWOT analysis (internal Strengths and Weaknesses and external Opportunities and

Threats) for Starbucks. (LO 4-8)

3. What recommendations would you give Howard Schultz? Support your arguments.

Strategy Project Task 4 External analysis (300 words, 5 points)

In this section, you will study the external environment of the firm you have previously selected for

this project. Look over annual reports and press clippings (or websites) for insights on the industry for

the firm they have selected. It is important at this stage for the student to clearly define what industry

they are going to use for the analysis. In the report answer the following questions:

1. What is the standard industry classification (report the 4-digit SIC code) and the definition of

the industry in which your company operates?

2. Which PESTEL factors are most important in your industry?

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Task 7. Competitive advantage and firm performance (Chapter 5)

For this task read the opening case to Chapter 5. In your presentation answer the following questions

1. Analyze the data in the exhibits. To what degree has Google been able to capture the value

that they have created? (LO 5-1)

2. Assess Google’s performance. Look for evidence in the financial data in terms of how

Google’s strategy has contributed to performance—either in a positive way or in a negative

way. (LO 5-2)

3. In 2009, how is Google doing relative to its competitors? Chapter five discusses three

perspectives of competitive advantage. If Microsoft is successful in claiming a significant

share of the burgeoning smartphone market, will the economic, accounting, or stakeholder

perspective be impacted first? Which firm’s competitive advantage would be the most

impacted by this type of market shift? (LO 5-6)

Task 8. Competitive advantage and firm performance (Chapter 5)

For this task read the mini-case 5 “GE under jack Welsch vs. Jeffrey Immelt”, p. 372. In your

presentation answer the following questions

1. Do you agree with the claim that “GE experienced a sustained competitive advantage under

Jack Welch, while it experienced a sustained competitive disadvantage under Jeffrey Immelt”?

Why or why not?

2. Shareholder value creation is one of the metrics discussed in Chapter 5 to assess firm

performance. Do you consider this metric to be the most important one? Why or why not?

(LO 5-3)

3. As discussed in Chapter 5, what other ways could you use to assess firm performance and

competitive advantage? Would that answer change your assessment of the two different time

periods presented? (LO 5-1, 5-2)

Strategy Project Task 5 Internal analysis (400 words, 10 points)

In this task, you will study the internal resources, capabilities, core competencies, and value chain of

your selected firm. A good place to start with an internal firm analysis is to catalog the assets a firm

has. Answer the following questions:

1. Make a list of the firm’s tangible assets. Then, make a separate list of the intangible assets you

can identify.

2. Which, if any, of these resources are helpful in sustaining the firm’s competitive advantage?

Why?

3. Identify the core competencies that are at the heart of the firm’s competitive advantage.

(Remember, a firm will have only one, or at most a few, core competencies, by definition.)

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Task 9. Business strategy: Differentiation, cost leadership and integration (Chapter 6)

Cost leadership: Ryanair (see Strategy Highlight 6.2) is noted as a firm that can make a profit on an $8

ticket. For this task look up information on low-cost providers such as Ryanair and in your


1. On which cost drivers Ryanair business-level strategy is based? (LO 6-3)

2. Are these drivers valuable and rare? (Looking back at Exhibit 6.7 may be useful) (LO 6-3)

3. If you were a competitor in the European market, such as Aer Lingus or Lufthansa, how

would you compete against Ryanair, knowing your cost structure would not allow price

parity? (LO 6-6)

Task 10. Business strategy: Differentiation, cost leadership and integration (Chapter 6)

Differentiation: For this task read the opening case to Chapter 6. In your presentation answer the

following questions:

1. Which value drivers is Whole Foods using to remain differentiated in the face of Walmart and

other competitors that are now selling organic foods? (Looking back at Exhibit 6.9 may be

useful.) (LO 6-2)

2. Given the discussion in the Chapter Case about Whole Foods trimming its cost structure, does

the firm risk being “stuck in the middle”? Why or why not? (LO 6-5)

3. What other methods could Whole Foods use to successfully drive its business strategy?

Strategy Project Task 6 Competitive advantage (300 words, 10 points)

Based on information in the annual reports or that published on the firm’s website, do the following:

1. Summarize what the firm views as the reasons for its successes (either past or expected in the

future). Search for both quantitative and qualitative success factors. Has your company

become more/less profitable in the recent years? (Hint: calculate profitability ratios and

compare them in the last few years). How is your company doing in terms of liquidity? How

does the company compare to its competitors or the industry average? Provide answers in the

report.

2. Many firms are now including annual corporate social responsibility (CSR) reports on their

websites. See whether your firm does so. If not, are there other indications of a triple-bottom-

line approach, including social and ecological elements in the firm’s strategies?

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SESSION 7, March 5

Task 11. Corporate strategy: Vertical integration and diversification (Chapter 8)

Vertical integration. For this task read the opening case to Chapter 6. You may also find useful to read

parts of Case 19 on p. c261 as a background reading. In your individual presentation answer the


1. Take either the energy or health care industry in which GE is active and draw the industry

vertical value chain. Is GE highly vertically integrated? If yes, does it employ taper

integration? (LO 8-3)

2. Are any of the vertical value chain operations outsourced or off-shored? If so, list some of the

pros and cons of having this part of the value chain outsourced/off-shored (LO 8-4).

3. How do GE’s corporate-level strategic initiatives of energy, health care, and globalization

reinforce each other? How might they generate conflicts in the company? (LO 8-8)

Task 12. Corporate strategy: Vertical integration and diversification (Chapter 8)

Diversification. For this task read the opening case to Chapter 6. You may also find useful to read

parts of Case 19 on p. c261 as a background reading. In your individual presentation answer the


1. What is GE’s current level of diversification?

2. Historically, has GE become more or less diversified? Why has GE been moving in this

direction? (LO 8-6)

3. How well does the healthymagination initiative fit with GE’s resources, capabilities, and core

competencies? Where do ecomagination and healthymagination fit on the core competence–

market matrix for GE? (See Exhibit 8.8.) (LO 8-7)

Strategy Project Task 7 Business strategy (500 words, 20 points)

In this task, you will study the business strategy of the firm you have previously selected for this

project. Be sure to focus only on ONE business unit if your firm has several operations. Differentiation

or cost focus can often be determined from a close examination of the annual report. All firms will talk

about costs, but a differentiated firm will also highlight how it views its products (service) to be

different from the competition. The students can review the Value Drivers section of the text for some

thoughts on the basis of the differentiation. Financial analysis of the focal firm and key competitors is

the clearest way to determine if the firm has cost leadership. Market scope (q3) should be taken

relative to the competitors in the industry. For example, in the furniture industry IKEA is primarily

appealing to college-aged consumers and young families. In the report answer the following questions:

1. Does your firm have differentiated products/services? If so, what is the basis of differentiation?

2. Does your firm have a cost-leadership position? If so, which cost drivers it uses?

3. What is your firm’s approach to the market? If it segments the market, identify the scope of

competition it is using.

4. Using the answers to the preceding questions, identify which generic business strategies your

firm is employing. Explain.

5. As noted in chapter 6, each strategy is context-dependent. What do you see as positives and

negatives with the selected business strategy of your firm in its competitive situation?

Strategy Project Task 8 Corporate strategy (100 words, 5 points)

Report on recent merger or acquisition or announcement of alliance by your focal firm. What do you

think is the reason behind this strategic move?

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SESSION 8, March 12

STRATEGY PROJECT PRESENTATION

This session is devoted to the presentation of strategy projects you’ve been working on. Each of the

three or four teams will present answers to the strategy project tasks 1 – 8. The groups each get 20

minutes for presentation. Each of the group members needs to participate in the presentation of the

findings. Team presentations will be evaluated on the following elements: structure, appearance, and

delivery. A maximum of 30 points can be earned for the presentation.

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SESSION 9, March 14

Strategy project report covering strategy project task 1 – 8 is due. Reports have to be printed out

double spaced, font size 12 and should not exceed 7 pages excluding references and the title page (9

pages including references and the title page) and handed in to your tutor. Please simply staple the

report and do not use binders. It is not necessary to include the table of contents, but where the answer

to each task begins and ends has to be clearly indicated with an appropriate heading. The digital copy

of the report has to be uploaded on Safe Assign in EleUM.

Task 13. Corporate strategy: Acquisitions, Alliances, and Networks (Chapter 9)

Acquisitions. For this task read the case Case 19 on p. c261. In addition, it is fine if you surf the

internet prior when preparing the task, to further your understanding of the case. In your presentation


1. Describe the M&A strategy used by GE. (LO 9-1, 9-2)

2. Describe the divestiture strategy used by GE. (LO 9-1, 9-2)

3. Evaluate whether M&A/divestiture strategy of GE leads to competitive advantage (LO 9-3)

Task 14. Corporate strategy: Acquisitions, Alliances, and Networks (Chapter 9)

Alliances, and Networks. For this task read the opening case to Chapter 6. In your presentation discuss

the following:

1. Describe the strategic alliances strategy of Facebook. (LO 9-4)

2. How strategic alliances can lead Facebook to a competitive advantage? (LO 9-6)

3. Given Zynga’s recent activities in network building, what do you see as advantages and

disadvantages of Zynga’s network strategy? (LO 9-7)

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SESSION 10, March 19

Task 15. Innovation and Strategic Entrepreneurship (Chapter 7)

For this task read the mini-case 7 “Which automotive technology will win?”, p. 375. You may also

find useful to read the first part of Case 5 “Tesla Motors” on p. c32 as a background reading. In your

presentation discuss the following:

1. Evaluate different types of innovations and their role in the auto industry. (LO 7-4)

2. Do you believe that the internal combustion engine will lose its dominant position in the

future? Why or why not? What time horizon are you looking at? (LO 7-6)

3. What is the role of standard in the auto industry? Which factors do you think will be most

critical in setting the next industry standard for technology in car propulsion? (LO 7-6)

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Strategy Project Task 9 ISC individual report (400 words, 10 points)

In this course you worked together as a team. You did a strategy project together and you delivered a

case presentation. After the case presentation you meet as a team and discuss how the cooperation in

your team went throughout the course. Based on this discussion and your previous experiences in this

course each student writes an individual report. In this report you reflect on the team work and the

working procedure and you describe your own role in the team during this course. Answer the

following questions in this individual report:

a. Functioning of the team: decision making and communication

What went well and what was your contribution to this?

What was weak and what was your role in this?

b. Division of tasks and coordination

What were your roles and responsibilities? How did you perform these roles?

How effective was the coordination of the different subtasks?

c. Time management and planning

How was the time management and planning of the team and what was your role in

this?

To what extent was the initial working procedure effective and to what extent did the

team adapt the working procedure effectively? Your role in this?

d. Evaluation and look into the future

What would you do differently if you had the opportunity to do so again?

If you would have the opportunity to cooperate again in the same team would you opt

for this? If yes, give your arguments why. And if no, give your arguments why not.

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These sessions are devoted to the presentation of cases. Each of the teams will present one case. These

cases are given at the end of the textbook. The teams can choose from of the following cases listed

below. Each team has 20 minutes for presentation followed by ten minutes of questions and

discussion. Each of the group members needs to participate in the presentation of the case. Team

presentations will be evaluated on the following elements: structure, appearance, delivery, and content.

Besides these elements, it is crucial to interact with the group by posing questions/organizing

discussion. In the course of their presentations teams have to answer critical study questions. These

study questions are as follows:

Case 7 Roger’s Chocolates

1. Using Porter’s characteristics, describe the inter-firm rivalry in the chocolate industry. What are

the strengths/weaknesses of Rogers’ Chocolates’ major competitors?

2. Apply the VRIO framework to assess the competitive implications of Rogers’ Chocolates

resources and capabilities. What are the firm’s core competencies? How might Rogers’ Chocolates

convert some of its existing resources and capabilities into core competencies?

Case 9 GEOX: Breathing innovation into shoes

1. Which stage of the industry life cycle is the footwear industry in? How has that affected Geox’s

ability to enter the market and gain market share?

2. What type of innovation is Geox’s technology? What are its implications for the global footwear

industry?

3. Describe Geox’s innovation strategy. What is its current market position? How did it get here?

Case 17 Merck: Open for Innovation?

1. What does the structure of the pharmaceutical industry look like (the SCP model/Porter’s five

forces)? Is it an attractive industry?

2. Looking at Merck’s SWOT, can Merck gain and sustain a competitive advantage in the

pharmaceutical industry? Why or why not?

3. Analyze Merck’s innovation strategy Can open innovation help Merck meet the needs of its

customers in creative and cost-effective ways that also bring value to its shareholders?

Case 20 Siemens Energy: How to Engineer a Green Future?

1. The case identifies a number of renewable energy sources. Which ones do you think will be viable

future businesses? Why?

2. Apply the Structure-Conduct-Performance (SCP) Model to determine the (U.S.) industry structure

for each of the renewable energy sources identified in your response to Question 1.

3. What are some potential entry barriers for developing new energy-related products, services?

4. How aggressive should Siemens be in pursuing these new technologies? Is it better to be a first

mover and set the standard, or let other firms take the initial risk and then capitalize on their

discoveries?

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Post-discussion of task 15. Individual reports are due. Individual reports (ISC task 9) have to be

printed out on one page with 1.5 interval spacing, and font size 12 and handed in to your tutor. The

digital copy has to be uploaded on Safe Assign in EleUM.


Recap, resit of individual presentations and feedback on the reports.

[STRATEGY]

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