1. Strategy Concepts Strategic Value Adding Strategic Architecture Design
Structure & Strategy
Strategy Concepts
Strategic Value Adding
Strategic Architecture Design

2. and mitigating the WEIGHTS
Strategy Concepts
VISION
in 10, 20….. Years’ time
STRATEGIES
How to Achieve
the VISION over time
– leveraging the PUSH
and mitigating the WEIGHTS
Who, where & when ACTIONS
PUSH
(Supportive forces)
WEIGHTS
(Holding Back forces)

3. Strategy Concepts VISION Desired Environment Outcomes
Strategy Plan
VISION
Desired Environment
Outcomes
Results in
Mission is the scope of actions
Activity Scope
Goals Over Time & Place
Achievement KPIs
Within scope
Measured by
Targeted Outputs
Strategies
Who, where & when ACTIONS

4. PROFIT = SALES - COSTS Value Add
Strategic Foci / Questions
How to Increase & Sustain Market Shares?
How to reduce operating costs & increase productivity?
Market Share
$ Efficiency
The more people buy the better
The cheaper we produce the better
PROFIT = SALES COSTS
Why people buy?
Best Price
Value for Money
More$ must be good stuff
Pay more to save the world
Why people buy?
Essential
Unique
Feel Good
Good cause
How to create Value Add?

5. Value Chain Value Adding Gives Value Adds to: Customers Firm Employees
Shareholders
Business Partners
Community at large

6. (Architecture) Types of International Strategies
Global Strategies
Multi-Domestic Strategies
Standardized products/services
Common culture
Common processes
Centralised control
Varying local products/services
Local culture
Local processes
Decentralised control
Regional Strategies
Transnational strategies 
Are about mixing global & MD strategies by:
Country grouping (regional)
Or other strategic benefits -eg low cost supply advantage (transnational)

7. Strategic Change Choices
GLOBAL STRATEGY
TRANSATIONAL STRATEGY
Cost reduction pressures
INTERNATIONAL STRATEGY
MULTI-DOMESTIC STRATEGY
Local Responsiveness Pressures

8. MNC International Strategy Planning Framework Implementation requires
(MGX 5181 Model)
Implementation
requires
Strategic Choices
Global   multi-domestic strategies
chooses
Configuration & Integration Structures & Means
How HQ coordinates & control other locations
Actor
MNC
influences
Corporate & SBU level strategy planning
Integrated in
Core competency Development
International Value Chain Configuration
has
influences
Corporate Social Responsibility
Corporate & Country programs
Good Governance Frameworks
supports
Country Level strategy planning
Environmental scanning
Scenario planning
Modes of Entry & Ongoing Bus
Integrated in
Integrated in
Implementation Planning
Deployment Structure & Control
supports
Deployed via

9. MNC (2.58 m) - https://www.youtube.com/watch?v=szH2g1dQdCM
Discussion Qs
MNC (2.58 m) -
In a world of zero transportation costs, no trade barriers * non trivial differences between nations with regard to factor conditions, firm must expand internationally if they are to survive - discuss
What do you see as the main organisational problems that are likely to be associated with implementing a transnational strategy?
Describe what org architecture a transnational firm might adopt to reduce the costs of control.
What is the most appropriate organisational architecture for a firm that is competing in an industry where global strategy is appropriate?

10. Case Study Qs
IBM 100 years history (13.2 min) -
In the 1970s – 1980s, Palmisano states that IBM was organised as classic MNC? What does this mean? Why do you think IBM was organised that way? What were the advantages of its internationalisation?
By the 1990s, the classic multinational strategic orientation was no longer working well for IBM. Why?
What are the strategic advantages to IBM of its global integrated enterprise strategy? What kind of organisational changes do you think had to be made at IBM to make this strategy work?
In terms of the strategic choice framework, what strategy do you think IBM is pursuing today?