902 class 1
DESCRIPTION
June 10 classTRANSCRIPT
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)
Virtual office hours
Go direct…
1998
You are here.
Where do you want to go next?