Introducing
strategy
Weiping. Agnes Law
Weiping. Agnes Law
u Over25 years in retail industry and over 15
years in senior management position;
u Senior business consultant;
u SeniorOn-line community management
consultant;
u Used to work for Swire resources / Sunshine
co.,Ltd / Liantai group
u Published book <Recipes for retailers> as the
translator
u DBA Business School of Netherlands
u MBA University of Kent UK
2020-9-10 Fundamentals of Strategy
Contribution in the class 8%
• Arrive to class on time 3%
• Group discussion in the class 5%
Case study 32%
• There are 8 case studies
presentation
Final exam 60%
• Close book final exam
Class style
Ø PPT teaching Fundamentals of Strategy
Ø Group discussion in the class 4th edition
Ø Case study within small groups within 5 or 7 students
I will do the
attendance time
Contribution in the class 8% by time
• Arrive to class on time 3%
• Group discussion in the class 5%
We will have small group
Case study 32% discussion within the class,
expecting all of you at least
• There are 8 case studies contribute 3 times.
presentation
Final exam 60%
We will have 8 case studies within the
• Close book final exam semester, every one should
participate in one fix group which you
form in the beginning of the
semester.
1% joining the group discussion
1% the quality of the PPT &
Presentation
2% result for the studies
Fundamentals of Strategy
Chapter1.1.mp4
What is strategy?
Fundamentals of Strategy
Larger
Smaller
Sooner
Later
“a firm’s theory about how to gain competitive advantages”
Peter Drucker
Definitions of strategy
Sources: A.D. Chandler, Strategy and Structure: Chapters in the History of American Enterprise, MIT Press, 1963, p. 13; M.E. Porter, ‘What is strategy?’,
Harvard Business Review, 1996, November–December, p. 60; H. Mintzberg, Tracking Strategies: Towards a General Theory, Oxford University Press, 2007, p. 3;
P.F. Drucker, ‘The theory of the Business’, Harvard Business Review, 1994, September–October.
Fundamentals of Strategy
Long term direction of an organization
uIncluding both deliberate & logical strategy;
Also include incremental & emergent patterns of strategy;
uIncluding both strategies that emphasize difference and
competition and recognize the roles of cooperation and
even imitation.
Two
advantages
Long term direction of an organization
Fundamentals of Strategy
Long term
Life cycle
an
organization
Three horizons for strategy
Long term
Comprise three
types of business
Note: ‘profit’ on the vertical axis can be replaced by non-profit objectives; ‘business’ can refer to any set of activities; ‘time’
can refer to a varying number of years.
Source: M. Baghai, S. Coley and D. White, The Alchemy of Growth, Texere Publishers, 2000. Figure 1.1, p. 5.
Fundamentals of Strategy
Three horizons for strategy
Start – up ventures
Emerging activities/New sources
profit
Current core business
Note: ‘profit’ on the vertical axis can be replaced by non-profit objectives; ‘business’ can refer to any set of activities; ‘time’
can refer to a varying number of years.
Source: M. Baghai, S. Coley and D. White, The Alchemy of Growth, Texere Publishers, 2000. Figure 1.1, p. 5.
Fundamentals of Strategy
The third place
Over 30,000 shops
International
Market
Brand
Marketing
Innovation
The third place
Smart
Partnerships
Coffee Creating a
2002~
Starbucks
expert Customer Community
Satisfaction
1992~
Third Place
Perfect Cup of
1987~ Horizon 3
Coffee
1971 Horizon 2 When it went public，in 1992, Starbucks
had 165 total locations. In 1996, with
Horizon 1 1,015 total stores, Starbucks opened its
first international location in Japan in 1996.
Fundamentals of Strategy
Strategic
direction
Objectives?
an
organization
Profits don’t always set strategic direction!
The objective behind strategic direction
always need close scrutiny.
Fundamentals of Strategy
International
Market
Brand
Marketing
Innovation
The third place
Smart
Partnerships
Coffee Creating a
2002~
Starbucks
expert Customer Community
Satisfaction
1992~
Third Place
Perfect Cup of
1987~ Horizon 3
Coffee
1971 Horizon 2
Horizon 1
2017 - Starbucks acquired remaining shares from its East China joint venture partner to become the sole
operator of all Starbucks stores in mainland China.
“Full ownership will give us the opportunity to fully leverage our robust business infrastructure to deliver an
elevated coffee, in-store third place experience and digital innovation to our customers, and further
strengthen the career development opportunities for our people,” said Belinda Wong, CEO, Starbucks
China.
Important relationships of an
organization
internal external
etc.
etc.
Investors
Manage Balance
People
suppliers
Groups
customers
Fundamentals of Strategy
uIncluding both deliberate & logical strategy;
Also include incremental & emergent patterns of strategy;
uIncluding both strategies that emphasize difference and
competition and recognize the roles of cooperation and
even imitation.
Two
advantages
Long term direction of an organization
Fundamentals of Strategy
The purpose of strategy
Fundamentals of Strategy
What is strategy for?
u To define and express the purpose of an
organization.
ü Long-term prosperity + Profit
ü Employee motivation + Profit
uAsking two questions
ØHow does the organization make a difference?
ØWhom does the organization make that
difference?
Fundamentals of Strategy
What is strategy for?
uFour ways to define an organization's
purpose:
I. Mission Statement
II. Vision Statement
III. Statement of Corporate Values
IV. Statement of Objectives
Fundamentals of Strategy
Mission statements
A mission statement aims to provide
employees and stakeholders with clarity
about what the organisation is
fundamentally there to do and why.
I. ‘What business are we in?’
II. ‘What would be lost if the organisation did
not exist?’
III. ‘How do we make a difference?’
Fundamentals of Strategy
Mission statements
uWe aim to be a bright for linking the
international brands and Chinese retail market.
Fundamentals of Strategy
Vision statements
A vision statement is concerned with the
future the organisation seeks to create.
I. What do we want to achieve?
II. If we sitting here in twenty years what do
we want to have created or achieved?
Henry Ford’s original vision in the beginning:
“The ownership of a car should be within the reach of every one.”
Fundamentals of Strategy
Vision statements
uWe aim to be one of the best distributor for
internal fashion brands in Chinese market.
An Ju Le Ye
安 居 乐 业
Fundamentals of Strategy
Statement of values
Statements of corporate values communicate
the underlying and enduring core ‘principles’ that
guide an organisation’s strategy and define the
way that the organisation should operate.
I. Would these values change with
circumstances?
~If the answer is “Yes” then they are not “core”
and not “enduring”.
NB: These values do NOT change with
circumstances.
Fundamentals of Strategy
Statement of values
u Honest
uResponsible
uInnovative
uKind
Fundamentals of Strategy
ALIBABA GROUP’S MISSION IS TO MAKE IT EASY TO DO BUSINESS ANYWHERE.
OUR VISION
We do not pursue size or power; we aspire to be a good company that will last for
102 years. We aim to build the future infrastructure of commerce. We envision that
our customers will meet, work and live at Alibaba.
OUR VALUES
I. Customers first, employees second, shareholders third
II. Trust makes everything simple
III. Change is the only constant
IV. Today’s best performance is tomorrow’s baseline
V. If not now, when? If not me, who?
VI. Live seriously, work happily
Statement of objectives
Objectives are statements of specific
outcomes that are to be achieved.
• Often stated in financial terms (e.g. Profit).
• May also be market-based objectives (e.g.
Market Share).
• May emphasise basis of competitive
advantage.
• ‘Triple Bottom Line’ – economic, social and
environmental objectives.
Fundamentals of Strategy
Social
Responsibility
Economic
People
Success
Profit
Environmental
Protection
Planet
Triple Bottom Line
Sustainability principles
Fundamentals of Strategy
Strategy statements
Strategy statements should have three main
themes:
I. Fundamental goals that the organisation seeks,
which reflect the stated mission, vision and
objectives.
II. The scope or domain of the organisation’s
activities.
III. The particular advantages or capabilities it has
to deliver all of these.
IV. All in less than 35 words!
Fundamentals of Strategy
Scope
• Who are your target customers?
Extent of
• Where are you going to Customer
Activities
develop your business?
• What kind of business model
patterns are suitable for the Geographical
long-term direction? location
Besides the “Goals” of Strategy statements
Fundamentals of Strategy
Advantages / Capabilities
• What resources does your
organization have?
• How do you allocate your Software
resources to carry out the
objectives?
Hardware
Besides the “Goals” of Strategy statements
Fundamentals of Strategy
Thanks