September 2014

Dr. Pham Hoanh Son Nguyen

Department of Innovation and Development

Strategy and International Development

I. Course presentation

3 990

4 334

4 347

4 460

7 824

11 178

11 580

13 441

17 098

20 869

806

3 343

2 893

3 503

4 017

6 929

6 273

8 375

11 348

10 626

Aldi

CBA

Auchan

Ahold

Jerónimo Martins

Carrefour

Rewe Group

Tesco

Metro Group

Schwarz Group

Central Europe: Retail Banner Sales, 2009e-2014f (EUR mn)

2009

2014

Note: e - estimate; f - forecast. Source: Planet Retail Ltd – www.planetretail.net

Russia

Ukraine

Belarus

Moldova

Romania

Hungary

Poland

Bulgaria

Greece

Cyprus

FYRO Macedonia Albania

Serbia

Bosnia & Herzegovina

Croatia Slovenia

Italy

Slovakia

Czech Rep

Germany

Sweden

Lithuania

Latvia

Estonia

Finland

Norway

France

Austria Switzerland

Luxembourg

Belgium

Netherlands

Spain Portugal

United Kingdom

Ireland

Denmark

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Why these differences in terms of performance?

Why some enterprises experience success and others failure?

1. How to draw up an effective strategy?

2. How to ensure corporate growth beyond the evolution of home markets?

3. How can this growth be obtained?

4. How to realize an industry analysis?

5. How to realize a competition analysis?

6. How to formulate international strategies?

7. …..

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I. Course presentation

Objectives of the learning process Students should be able to

1. Structure problematics in terms of strategy and organization;

2. Provide strategic and operational recommendations for action.

A twin learning process

How?

Theoretical

Practical

Case studies/Strategy

formulation

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Interactive teaching Prior reading and case preparation is absolutely indispensable

Each session will result in:

1/ Application exercise, or

2/ A small application exercise and an oral PowerPoint presentations and written report on case treatment (prior preparation in small groups), or

3/Article analysis

I. Course presentation

Lecturer Students

Theoretical (e.g. competitive forces,

generic strategies)

Practical (e.g. Sectoral analysis,

methodologies of case/example studies)

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Assessment

I. Course presentation

6

• Fifty percent of the assessment is based on a group project on international development of a French company, twenty percent on group presentation, and thirty percent on individual work Individual work

Participation & mid-term state of progress of the group project (10 %)

Two written article analyses (20%)

Group presentation Oral PowerPoint presentation of case treatment during the session

and submission of written report at the end of the presentation (20 %)

Group project = Final exam Group project: oral defence and submission of written report (50%)

I. Course presentation Organization of the sessions (1/2)

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Session Date Theme Activities

1 Sept. 22 2014

Course introduction Introduction to Strategy

Application case IKEA

2 Sept. 29 2014

Business Definition Application exercise Presentation n° 1 on strategy of Apple

3 Sept. 29 2014

External Environment Analysis

Application exercise Industry of Automobile

4 Oct. 6 2014

Industry competition Article analysis n°1

5 Oct. 8 2014

Internal organization Application exercise Presentation n° 2 on PESTEL analysis of

Musical (producer) industry

6 Oct. 15 2014

Business-level strategy

Application exercise Presentation n° 3 on pressure in the

environment of Accounting industry (5 forces model of Porter)

7 Oct. 17 2014

Corporate level strategy

Application exercise Presentation n° 4 on business model of

McDonald’s

I. Course presentation Organization of the sessions (2/2)

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Session Date Theme Activities

8 Oct. 20 2014

Coaching (group project)

Mid-term evaluation of the group project that will be the

subject of the final examination

9 Oct. 20 2014

Dynamics of international competition

Application exercise Presentation n° 5 on

business-level strategy of PSA Peugeot Citroën

10 Oct. 22 2014

Cultural distance Article analysis

11 Dec. 8 2014

Internationalization: Degree versus Process

Application exercise Presentation n° 6 on

international strategies of Carrefour

12 Dec. 15 2014

Coaching: project defense preparation

Group project = Formulation of international strategies

I. Course presentation

1. Michelin 2. Sanofi 3. Auchan 4. Renault 5. Orange 6. LVMH

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An effective process of international strategy formulation I. Course presentation

Step 2: Macro Environment Analysis Suggested model : PESTEL

Step 3: Analysis of Long term trends of the industry S.m.: Life cycle of an industry

Step 4: Analysis of Competitive Environment S.m.: Five Forces of Porter

Step 5: Analysis of the strategies of the target company and its main competitors (Internal analysis, SWOT construction, Business Model, Corporate and Business

strategies, Strategic movements of these firms overtime)

Step 6: Formulating international strategies for the target company 10

Step 1: Business Definition

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What is Strategy?

12

Our company’s

strategy is

to integrate a

set of regional

acquisitions we’re

pursuing

a global

strategy

Our strategy is to provide unrivaled customer service

Putting strategy in its place II. Fundamentals

Mission Fundamental purpose Values

Objectives Specific targets

Strategy The central integrated, externally oriented

concept of how we will achieve our objectives

Supporting Organizational Arrangements Structure Process People Symbols Activities Rewards Functional policies

Strategic analysis Industry analysis Customers/marketplace trends Environmental forecast Competitor analysis Assessment of internal strengths, weaknesses, resources

Source: Hambrick & Fredrickson (2001) 13

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II. Fundamentals

Economic Logic

Arenas

Vehicles

Differentiators

Staging

How will we get there? Internal development. Joint ventures? Licensing/franchising? Acquisition?

Where will we be active? Which product categories? Which markets segments? Which geographic areas? Which core technologies? Which value-creation stages?

What will be our speed and sequence of moves? Speed of expansion? Sequence of initiatives?

How will we win? Image? Customization? Price? Styling? Product reliability?

How will we obtain our returns? Lowest costs through scale advantages? Lowest costs through scope and replication advantages? Premium prices due to unmatchable service? Premium price due to proprietary product features?

The Five Majors Elements of Strategy

Source: Hambrick & Fredrickson (2001)

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Vision and Business of IKEA

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http://www.ikea.com/ms/en_GB/about-the-ikea-group/company-information/

II. Fundamentals

Economic Logic

Arenas

Vehicles

Differentiators

Staging

Vehicles Organic expansion Wholly owned stores

Arenas Inexpensive contemporary furniture Young, white-collar customers Worldwide

Staging Rapid international expansion, by region Early footholds in each country, fill in later

Differentiators Very reliable quality Low price Fun, nonthreatening shopping experience Instant fulfillment

Economic logic Economies of scale (global, regional and individual stores scale) Efficiencies from replication

IKEA’s Strategy

Source: Hambrick & Fredrickson (2001)

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