Strategy Formulation

W1
 Strategy formulation: How should we compete? , Where should we compete?
 Good strategy: simple, consistent & have long term goals
 SWOT framework
 Competitive advantage
o Cost advantage & differentiation advantage
o How to position yourself
 Strategy Plans
o http://www.managementstudyguide.com/strategy-formulation-process.htm
o https://www.forbes.com/sites/davelavinsky/2013/10/18/strategic-plan-
template-what-to-include/#400ed88647e1
o http://www.wikihow.com/Write-a-Strategic-Plan-for-an-Organization

W2
 Vestas & wind turbine industry
 Business Environment of a firm:
o Competitors, consumers & regulations
o Customers, suppliers and competitors
o http://www.strategyand.pwc.com/trends/2015-aviation-trends
 Industry attractiveness:
o Porter’s Five forces framework
 Competition from substitutes
  Buyers propensity to substitute current product/service
 Relative price & performance of current product/service
 Threat from new entry
 Capital cost
 Presence of product differentiation
 Created by laws and government
 Rivalry b/w established competitors
 Concentration of firms
 Diversity of competitors & products they sell
 Bargaining power of buyers
 Buyer’s price sensitivity
 Their relative bargaining power
 Bargaining power of suppliers

W3
 EECO and production of shoes
 Relationships b/w resources & competitive landscape
 Resources & capabilities
 Firms resources
o Tangible, Intangible & human
o https://www.wired.com/2011/05/microsoft-buys-skype-2/
 Organizational capabilities:
o Processes / routines
o http://www.mckinsey.com/business-functions/organization/our-
insights/building-organizational-capabilities-mckinsey-global-survey-
resultssustain competitive advantage based on the resources and capabilities

2
 Sustaining competitive advantage through resources and capabilities:
o VRIO Framework
o https://www.strategicmanagementinsight.com/tools/vrio.html
o https://www.strategicmanagementinsight.com/tools/value-chain-
analysis.html
W4

 http://www.brandquarterly.com/localized-global-marketing-strategy
 standardization vs localization marketing strategy

W5: Strategic decision making

 Elements of decision making

o Homo economicus & bounded rationality
o https://www.forbes.com/sites/erikaandersen/2013/10/04/it-
seemed-like-a-good-idea-at-the-time-7-of-the-worst-business-
decisions-ever-made/#4927b2093e80
o Cognitive limitations
 3 phases: Problem identification, development of strategic
alternatives & selection of most appropriate solution to deal
with the problem
 cognitive abilities and political formations
 http://www.iflscience.com/brain/20-cognitive-biases-which-
make-you-form-bad-decisions/

 Strategy as forecasting
o Benefits and costs of strategies

3
 o Typical strategic tools are budgets and schedules
o http://smallbusiness.chron.com/strategic-forecasting-42245.html
o Hidden Costs
o http://www.cio.com/article/2442089/offshoring/the-hidden-costs-of-
offshore-outsourcing.html
o