Foundations of Business Strategy

International College at Beijing

INSTRUCTOR: PAUL J. RAPANT

EMAIL - ICBPJRAPANT@YAHOO.COM
 Session Agenda

 What is Strategy?
 Strategic process
 Case 1 – Ben & Jerry’s Homemade Ice Cream Inc
 What is Strategy?

"Strategy is the direction and scope of an organization

over the long-term: which achieves advantage for the
organization through its configuration of resources within
a challenging environment, to meet the needs of
markets and to fulfill stakeholder expectations"
 What is Strategy?

 * Where is the business trying to get to in the long-term (direction)

 * Which markets should a business compete in and what types of
activities are involved in such markets? (markets; scope)
 * How can the business perform better than the competition in those
markets? (advantage)?
 * What resources (skills, assets, finance, relationships, technical
competence, and facilities) are required in order to be able to compete?
(resources)?
 * What external, environmental factors affect the businesses' ability to
compete? (environment)?
 * What are the values and expectations of those who have power in and
around the business? (stakeholders)
 Strategy defined

 Henry Mintzberg’s 5P’s

 Plan – Detailed from start to finish
 Ploy – Short-term in nature, to gain advantage over
competition
 Pattern Behavior - Sometimes unintentional that turn into
consistent behaviors
 Position – How companies relate to their competition and
markets
 Perspective – Changing culture to achieve success
 Strategy defined

 Deliberate and Emergent Strategies

 Deliberate
 Planned with a specific objective
 Monitored and controlled start to finish

 Emergent
 Not pre-conceived, but develops over time
Levels of strategic decision-making

Strategic Level
Long-term (years)

Tactical Level
Medium-term (months-one year

Operational Level
Day-to-day
 Stakeholders

 Any group or individual that can affect or be affected by the

achievement of an organization’s achievements
 Internal
 Directors
 Employees
 Employee representatives
 External
 Shareholders
 Customers
 Suppliers
 Competitors
 Communities and society
 Stakeholders

 Mendelow
 Stakeholder interest and power
 Interest– willingness to influence the organization and the extent
to which the stakeholders cares
 Power – the ability to influence the organization

 Formula:
 Stakeholder interest = power x interest
 Stakeholders

Low Stakeholder power High

Least influential
Low
Stakeholder interest

Inc
re asi
n gi
nfl
ue
n ce
High

Most influential
 Strategic Process

Internal Analysis External Analysis

Internal strengths External opportunities

and weaknesses and threats
Continual Feedback

Continual Feedback
Identification of
key strategic issues

Evaluation of options and

selection of strategy

Implementation and management of the

chosen strategy
 Strategic Process

 Never-ending process
 Adapt to the environment
 Three stages
 Two main stages
 Internalanalysis
 External analysis
 Third stage

• Implementation and management

 Feedback link
 Case 1 - Instructions

 Break out into teams of 6-8 people

 Read the case and discuss
 Case Analysis structure
 Situation overview (1-2 paragraphs outlining the case in your
teams own words)
 Problem statement (1-2 paragraphs outlining what is impacting
the company)
 Alternatives (3-4 ideas, 4-6 paragraphs)
 Critical Issues (1-2 paragraphs, clearly explain what is or can
prevent this company from being successful)
 Recommendation (1, clearly explain what your team thinks the
company should do – provide steps and timelines)
 Assignment #1

 Read Ben & Jerry’s Homemade Ice Cream Inc.

 “A new corporate concept of linked prosperity”
 Follow the case instructions and hand in completed case analysis
by September 26th (Assignment will only be accepted on or before
this date)
 Paper must be 11-12 font typed (no hand written papers will be
accepted)
 Paper can be emailed or printed (stapled)

 Paper must include

• Each member name in pinyin

• Each member student ID #