Advanced Strategic Management

1
Advanced Strategic Management

• Session 1

2
What is Strategy?

• Lost Boy Injuns! Lets go get em!
• John Darling Hold on a minute. First we
  must have a strategy.
• Lost Boy Uhh? Whats a strategy?
• John Darling Its, er Its a plan of
  attack.

Source Disney web site
3
Strategy Steps

• Formulation
• Goals Values
• Internal Analysis
• External Analysis
• Strategic Choices
• FIT

• Implementation
• Organization Structure
• Control Systems
• Organizational Change
• FIT

4
Strategic ManagementTheory ? Practice
Theory
Text Chapters, Cases- 2 exams
Hands-on Firm
Case Firms
Team Project Paper Presentation
Case Studies, Minicases Current Press
5
Competitive advantage

• WalMart Incs quarterly earnings rise 21
• Sams club price war with Costco industry
  environment
• Reducing wholesale costs by maintaining power
  over suppliers - 5 Forces
• Strong sales growth in international division
  global strategy

Source LA Times
6
Corporate governance

• Federal criminal investigation of Coca Cola
• Allegations of accounting irregularities
• Implementing effective corporate governance
  mechanisms

Source Atlanta Journal Constitution
7
Who will buy Vivendi Universal?

• Vivendi Universal Entertainment on the block
• Lack of expertise in running American
  entertainment properties
• Implications for unrelated diversification
• NBC, MGM, Comcast and Viacom interested buyers
• Valuation issues in acquisitions

Source NY Times
8
Source realmadrid.com
9
Real Madrid

• Worlds richest soccer club
• Strategy of signing on superstars Luis Figo,
  Zinedine Zidane and David Beckham
• Acquisitions as a route to acquire capabilities
  quickly
• Merchandising deals leveraging assets

Source NY Times
10
Brand equity pop quiz

• Name the big machine that lumbers around skating
  rinks resurfacing the ice
• In bike stores, customers looking for a
  super-strong lock ask for __________
• That freckle faced redhead from Riverdale
• Role of intangible assets in creating competitive
  advantage

Source Business Week, company web sites and
www.comicbooks.about.com
11
Intangible resources

• GMs Hummer H2 and Avanti Motors Studebaker SUV
• Trademark infringement lawsuit
• Avanti to redesign Studebaker
• Intangible resources protect competitive advantage

Source Atlanta Journal Constitution
12
NFL Realignment

• New organization 8 four team divisions
• Incorporating new division/ products/ businesses
• Organization structure
• Role in strategy implementation

Source NY Times, NFL web site
13
Madonna - Case
Why was Madonna so successful?