Intended Vs. Emergent Strategy – Course Note – joo.hannaa
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Intended Vs. Emergent Strategy
joo.hannaa
Session 1Strategy as a “plan” – Intended vs. Emergent strategyIntended → plan as strategyEmergent → no clear plan (Honda) – a lot more important (flexibility, capacity), absorb all the changes coming from outside the companyStrategy as a “process” – Plan vs. ImplementationImplementation is a very important part of strategy (leadership of top management is important regardless the strategy)Good strategy would not be as successful without good implementationWhy Do Some Firms Perform Better than Others?Industry profitability and Firm profitability differs between industries and firmsExternal environment – demand, 18 salons within 850m street → competition is too much so there is oversupplyIndividual firm’s strategic choice → always ask why!Ikea → value added from shopping experience that Ikea providesSpecific industry structure (not individual firm skills) that results in higher profitabilityFor example: attractiveness of entering as CP and bottler are different, profitability in higher chain vs lower chainThreat to New Entry: LowSupplier Power: LowBuyer Power: LowThreat to Substitutes: Moderate Intra-industry Rivalry: Moderate b/w the top companies, low when compared to the whole industryHigh retaliation(Big market share dominates)Branding (Brand Equity) – Taste preference despite the similar tasteThe huge bargaining power incumbents have in the entire value chainCommodities ingredientsStable prices (not a lot of costs)A lot of suppliers in the market – low switching costNo substitutes for the main ingredient (secret mix that is imitable)Cumulative advertisingNational distribution systemEconomies of scaleNon CSD drinksHealth substitution vs. addiction/ availability/ lifestyleBetween Coke, Pepsi, and Dr. Pepper it’s highLow when they compete to innovate, introduce new market,Duopoly Session 2Internal Attribution → I am successful because of my resources and capabilities are higher than othersExternal Attribution → I am not successful on my exam not because my resources and capabilities are lower than others, but because of the outside factorsPorter’s Five ForcesSupplier and buyer power emphasizes on power dependency in the value chainThreat of entry and threat of substitutes emphasizes on competitionCola CaseCP are dumping all the price increase in materials to bottlers → exhibit 5Increase concentrate price while retail price decreaseWhat is the value chain? Who’s occupying the value chain? How are they making money (how’s their business model)? How is their power dependency relationship?
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By: joo.hannaa
Submitted: February 4, 2018
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