1、Business Strategy董董 静静1Structure and ScheduleModule One:Lectures1.History,Concept,and Process2.External environment3.Capability and resources4.Business portfolio and choosing strategies 5.Corporate strategies6.Competitive strategy(and game theory)7.Balanced scorecard and emergency management8.Critic
2、al mass9.Competitive advantage of nations10.Case study11.Case study2Module Two:cases1.Team work:case report2.RequirementSelect one company or one industryClear description of its strategy or practice Data Questions3.Assessment of casesContentFormatEffect4.Deadline:the 8th week3Examples盛大网络Canon DELL
3、网络游戏产业Textile industryOthersShould be Typicalfailure or successAction of one company or relation among several companiesIn english4Course Grading Final exam 50 Presentation and report 40%Class participation 105References Arthur A.Thompson and A.J.Strickland.Strategic Management:Concepts and Cases.Mc
4、Graw-Hill companies,Inc.2001David Besanko,David Dranove,and Mark Shanley.Economics of Strategy.John Wiley&Sons,Inc.1996 戴维贝赞可（等）：公司战略经济学，北京大学出版社王玉：企业战略管理教程亨利明茨伯格：战略历程，机械工业出版社迈克尔波特：竞争战略，华夏出版社迈克尔波特：竞争优势，华夏出版社迈克尔波特：国家竞争优势，华夏出版社罗伯特伯格曼：技术与创新的战略管理，机械工业出版社加里哈默：战略柔性，机械工业出版社安德鲁坎贝尔：战略协同，机械工业出版社6 Harvard Busin
5、ess Review Strategic Management Journal Sloan Management Review California Management Review Management Science Journal of Management Academy of Management Journal RAND Journal of Economics McKinsey Quarterly7 中国期刊网 Proquest Ebscon 国研网 中经网 Google and others8Session OneHistory,Concept,and Process9 Af
6、ter your graduation,Suitable for individuals,family,company,government and other organizations 乾隆 Tacit or clear strategy(华硕与一江阴民企)Is strategy useful?10Emerge and development of business strategy Phase 1:the formation of modern enterprises 1820s to the beginning of 20th century No competitive concep
7、t?Car and carriage Electric light and gas light Phase 2:scientific management Before 1930s Sellers market,production-dominated Focusing on cost,efficiency,and product The theory of Taylor11 Phase 3：Marketing management 1930s to 1950s Diversified demand,buyers market,competition Market and customer o
8、riented Phase 4：strategic management After 1960s Post-industrial society(France)Value oriented,create market12Strategy：basic concept Plan（计划）Pattern（模式）position（定位）Point(观念)Policy（计谋）Design school Planning school Positioning school Entrepreneur school Resources schoolIn order to adapt to the externa
9、l environment,the current and future business activities are strategically decided,covering which kind of business to enter,how to compete and operate and so on.13Market structurestrategyactivityPerfor-manceprofit14Process of strategic managementmissionExternal environmentInternal environmentStrateg
10、ic analysisStrategic choice15Long-term objectiveGeneral strategyCompetitive strategyYearly objectiveCompetitive strategyFunctional strategypolicystructurecontrolreformStrategic choiceimplementationcontrol16Levels of business strategiesLevels of business strategies事 业 战 略B u s in e s s S tra te g y事
11、业 部/战 略 经 营 单 位#1生 产 与 开 发 战 略P O M/R&D财 务 战 略F in a n c ia l营 销 战 略M a rk e tin g人 力 资 源 开 发 战 略H u m a n R e s o u rc e事 业 战 略B u s in e s s S tra te g y事 业 部/战 略 经 营 单 位#2事 业 战 略B u s in e s s S tra te g y事 业 部/战 略 经 营 单 位#3事 业 战 略B u s in e s s S tra te g y事 业 部/战 略 经 营 单 位#4公 司 战 略C o rp o ra t
12、e S tra te g y（公 司 总 部）17First step:mission Main fields of business Objectives of these business Philosophy of management Public image Self-assessment 一个科技背景的企业家18Mission CompeteDevelop19Profit objectiveValue objectiveManagerial objectiveSocial objective矿区企业之差异矿区企业之差异20 An French engineer in a Frenc
13、h company 利家与阿松中的前田利家 IBM and Microsoft The dilemma of innovatorsWhat is the key of strategy21Choice and balanceValue Capture Power by your stageLow High Value Creationby supply chainHigh/increasingLow/decreasingBest 替他人做嫁衣替他人做嫁衣挣扎挣扎？22Principal:Manage business ecosystem to achieve optimal balance o
14、f value creation and capture23Session 2External EnvironmentThe external environment of companiescompanyGeneral environmentIndustrial environmentGeneral EnvironmentGeneral environmentPoliticaleconomictechnologicalNature/internationalSocial/culturalOut of influence of individual organizationEconomic e
15、nvironment Economic environment:development level,economic system,price,labor and etc.of certain country or area e.g.high growth rate of China and the 农民问题（创意大赛）USA,the petrol crisis of 1970s,and the competitiveness of JapanTechnological environment Usually slowly,but if critical change happens,the
16、influence is widespread and revolutionary.E.g.IBM与大型计算机 网上购物（DELL）电视机的未来Social and cultural environment Population,living style and value and so on Their influence on strategy is incremental and subtle E.g.西方文化，东方文化与家庭装潢 日韩影视、游戏产业对中国的影响 夫妻共同工作与婴幼儿照顾（一个创意）Political and legal environment 政权的稳定性 Intern
17、ational relationship 法律、法规的健全程度（WEF）人治与法治 中国的精英选拔机制 民选政府与超级女声 Industrial policyNatural environment Geographical position Resources status（Japan and USA）生态环境 巨大的环保市场 绿色经济学院？中国的能源危机与企业的发展战略 燃气轿车的研制International environment Globalization and 信息化 International competition Multinational companies in Chin
18、a Good points Bad points Chinese companies going abroadIndustrial environmentSession 2 continued If you will set up a business,which industry will you choose?Why the no-brand PC(组装电脑)only could get low profit?Why it is more expensive for you to use phone in China?(Newspaper)Industrial environment Fi
19、ve-forces model Bargaining power of buyersBargaining powerof suppliersSubstitute productsPotentialenteringCurrent competitionSeveral cases The diversification strategy of VV Group From the substitute The going-abroad of Bao Steel From the bargaining power of suppliers The expanding to retail of 999
20、Pharm.From the bargaining power of buyers 电信、有线电视的网络铺设战略 From the potential competitors(preemption)1.Current competition Quantity and power of current competitors A lot of competitors with equal power（组装电脑）Cost structure 投资周期长，固定成本高（航空业）The industrial development:slow-fierce(家电)Differences of produc
21、ts and services:low-fierce Barrier of exiting（专用性、互补性、情感）2.Potential entering Barriers of entering Scale economy（学习曲线）（SGM）Differences of products（有形/无形）Investment needed（电信网络）Sales channel（外资与中国的合作）Government policy（地下钱庄）Potential competitors 业务具有协同性的企业（上下游企业）（雷允上-国大药房，家乐福相关企业）其他克服进入障碍的能力（资金、技术、政策等
22、）3.Bargaining power of suppliersConcentration of the upper stage of production chain,上游产业集中度高、规模大The difference of products of different suppliers,switch cost 信息系统供应商及其策略：亏本的买卖No threat from substitute products（电力）The forward integration power of supplier（制药与药店）Low importance of the company to its s
23、upplier,产业本身并非供应商的重要客户4.Bargaining power of buyersThe purchase volume of buyers,客户采购量大（沃尔玛）Standard products or notThe cost position of the product for customer,产品在客户成本中的地位The profit level of buyers（关注车价行情的环保公司）The switch cost of buyersThe backward integration power of buyers,客户进行后向整合的能力Substitutes
24、The balance between substitutes,替代品间的制衡（太阳能/燃气/电热，有线通/电信宽带）The competitive substitute,（电视机/投影仪）Improve quality/price Produced by profitable companies,由获利较高的产业生产The entering and exiting barriers high risk,high profit high risk,low profitLow risk,high profit low risk,low profitEntering barriershighlow
25、highlowExiting barrier示例：美国不同产业的资产收益率示例：美国不同产业的资产收益率平均资产收益率（）平均资产收益率（）产业产业制药制药饮料饮料电信电信化妆品化妆品科学、照相、控制设备科学、照相、控制设备出版、印刷出版、印刷烟草烟草批发批发综合百货店综合百货店保险保险商业银行商业银行12.35.14.94.83.73.43.02.01.70.50.2Beyond the 5-forces Too much emphasis on adversarial “value capture”,not enough on“value creation”Coopetition:join
26、t focus on creation and capture of value Industry accounts for about 20%of total variance in ROA Evolution of industry structureSession 3Resources and Capability If you are the general manager of a pharmaceutical company,what do you think is the most important resource in your company?Case:Glaxo Pro
27、blem 19801985：Zantac,胃溃疡,accounted for 44%of the revenue and 50%of the profit;1997,patent expired,every company could produce this medicine;More competitive patent,Losec Actions Acquisition of 3 companies to get more patents More competent R&D department And so onCategories of resources Visible Phys
28、ical:设备、原材料、地理位置（walmart vs.carrefare）Intangible assets：patent,brand Invisible(tacit)Management R&D capability Coordination Ranks of resourcesCriticalcorebasicperiphery竞争优势竞争优势高高低低Critical resources for success Perspective from industry Certain industry emphasize the importance of certain resources
29、Pharmaceuticals,supermarket,automobile Identify the critical resources Customers:customer need,segments Competition:competitors resources and customers,comparative advantages Criticism Under current structure,not future-oriented Case:DellAcquirement of resources Purchasing Advantage:scale economy,ef
30、ficiency under competition Disadvantage:information leak-out,transaction cost,suitability Certain resources vs.a package of resources E.g.Nike,Toyota，克莱斯勒与奔驰，HP与Compaqu Producing The opposite E.g.SAIC（60 subsidiary companies）Case:an oil refiner Back ground Oil refiner A:access to crude oil at$10 per
31、 barrel Others:$20 per barrel Question:dose A have a cost advantage?Will A be more profitable?Implication Where value come from?Key resources,brand,certain capability and so on Recognize unique resources,protect unique resources,and maximize returns from unique resourcesValue creation from resources
32、InputFundsHRMaterialsAnd so onProcess ManufacturingR&DMarketingManagingoutputMarket shareCustomer satisf.Revenue Profit Output Input=value-addedCase:a region北京上海浦东平均水平电子信息汽车石化钢材成套设备生物医药比率26.425.424.818.739.615.711.320.831.5工业增加值率比较工业增加值率比较（2003）出口与倾销，国际市场与国内市场，利润的分配出口与倾销，国际市场与国内市场，利润的分配General value
33、 chaininfrastructure HRMTechnologyFinance,etc.Secondary activitypurchaseproductionstoragemarketingserviceMain activityProfitDevelp许多企业都是在价值链的某个或某几个环节获得竞争优势（沃尔玛与家乐福，麦当劳，HP）Value chain systemValue-chainof supplierValue chainValue chain of buyerValue chainof customerValue chain system还有一些企业从价值链体系中寻找获得竞
34、争优势的机会（举例，Clusters）Core Competence Praharad and Hamel：企业拥有的独特技能、智力资本和隐性知识，是创造顾客价值和企业创新的源泉，决定了企业的竞争优势和可持续发展能力Identify core competence Great contribution to final product,perceivable to customers（Dell的销售模式）Hard for competitors to copy（Honda的发动机）Hard to substitute Enter broad market by this competence（
35、canon的光学技术）Sources of core competence Combination of unique technologies（沃尔玛）Intelligence capital（风险投资中的智力股份）Tacit knowledge（3M参观者的遗憾）Session 4Business Portfolio AnalysisBusiness portfolioAssess the suitability of current business portfolio.Allocate resources according to the portfolio,finally reach
36、 the strategic goals1960s,BCG,McKinsey,and other consulting firmsBusiness selection for multi-business and cross-industry companiesFamily portfolio Comparison between China and JapanCases 鸡鸣狗盗 Institutional environment:for business(finance sector)and family(social security)BCG Matrix According to Th
37、e potential of the businesses The position of the company in these businesses Judge The suitability of current business portfolio The cash contribution of different businesses Decide the future portfolio and development strategy BCG MatrixCircle：revenueSector in circles：profitRelationship among diff
38、erent businesses Question mark DogCash Cow StarRelative market shareIndustrial growth 10average ratelowhighhighBasic principles for BCG analysisReasonable businesses combinationReasonable cash flow among different businesses(德德隆隆)The importance of STAR（GEs No.1,2）Avoid the lack of certain kind of bu
39、sinessdog业务是否一定不需要呢？业务是否一定不需要呢？Proper moving speed among boxesCase:上海焊接器材有限公司上海焊接器材有限公司Critiques to BCG MatrixThe difficulty of defining market,market share and growth rateScope of industry Focusing on past not future,leading to time lag.(百合的种植百合的种植)Too simple to label the status high or lowFocusing
40、 on the surface not the potential(innovation capability and so on)sizeRORscalecompetingspecializationscatteredThe market share and the rate of return(the change of GEs NO 1.2)Business status-industry attractiveness matrix Factors reflecting industry attractiveness Market growth rate,industry size an
41、d profitability.Such as market growth rate,industry size and profit,competition,technology,social environment and etc.Factors reflecting business competitive advantage Market share,profit rate,competitiveness,technology,managementleaderstrugglequestionleaderdeclinedeclinehopelesswatchCash supplierIn
42、dustrial attractivenessBusiness statusWeak (-100%)Strong(100%)Unattractive (-100%)Attractive(100%)Product-lifecycle analysisProduct-market phasesProduct-market phasesCompetitive statusmaturedevelopingexcludingenteringdeclinestrongnormalweak什么样的行业是衰退的行业？什么样的行业是衰退的行业？纺织业？钢铁？煤炭？纺织业？钢铁？煤炭？高科技与食品（洞察力）高科技
43、与食品（洞察力）startupdevelopmaturedecliningRate of returnFunds transferred-100%200%100%020%-10%80%The funds transfer among SBUsSession 5Corporate Strategies71Corporate Strategies Maintenance strategies（不选择也是一种选择）（不选择也是一种选择）Development strategies 一体化战略（integration strategies）加强型战略（intensive strategies）多元化战
44、略（diversification strategies）Defense Strategies：紧缩、撤资：紧缩、撤资 Withdrawal strategies：清算：清算 Generic strategies of Michael Porter72Integration Strategies Forward integration Control the sales channel by ownership or contract Case：“雷允上雷允上”开设连锁开设连锁药房药房 If A is a manufacturing company and sells its products
45、 through Bs network.When should A acquire B or set up its own sales network?Suitable when Current sales partner not efficient,or not reliable,or could not meet its need,or gets a large profit High growth rate of the industry Have the funds and HR for that action Know the customers needs,and expand i
46、ts business73 Backward integration Control the suppliers by ownership or contract 例：华能集团与中煤能源集团合作例：华能集团与中煤能源集团合作 If A is a manufacturing company and purchases materials from B.When should A acquire B or set up its own material business?Suitable when The current suppliers not very economical,or not r
47、eliable,or could not meet its need,or get a high profit Too few suppliers,but a lot of competitors High growth rate of the industry Have the funds,technology and HR to do this business Stable price is critical for the industry74 Horizontal integration Control the competitors by ownership or contract
48、 Case：惠普与康派，克莱斯勒和奔驰：惠普与康派，克莱斯勒和奔驰 If A and B are competitors,when do you think A should merge B?Suitable when Monopolize the market in certain area Great growth potential of the industry Scale economy Have the necessary funds and HR75Intensive StrategiesMarket penetration Increase the market share b
49、y more marketing efforts Case：广告、代理商、产品使用指南等：广告、代理商、产品使用指南等Market development Entering new market by current products and services Case：China as the most promising emerging marketProduct development Increase sales by modifying the current products or developing new products Case：上海通用的：上海通用的卡迪拉克卡迪拉克，
50、HP的掌上电脑的掌上电脑76Diversification Strategies Concentric diversification Add new but related products or services Case：Sony进入游戏行业进入游戏行业 Suitable when The new products will improve the sales of current products Balance seasonal fluctuation Current products at the declining stage77 Horizontal diversificati
